Cost, Insurance and Freight: the seller pays freight and insurance to the destination port.
Under CIF the risk still passes to the buyer when goods are loaded on the ship at origin. The seller must buy only minimum insurance cover.
Related terms
- FOB — Free On Board: the seller loads the goods on the ship; the buyer pays freight and insurance.
- Incoterms — Eleven standard trade terms (2020 edition) that say who pays for what and when risk passes.
- Assessable value — The value on which Indian customs calculates import duty — usually the CIF value in rupees.