What is CIF cost？
CIF Incoterm definition – CIF Shipping for sea freight
The CIF shipping term means that the seller is obligated to cover the cost, insurance and freight transport of goods to the named port of destination. The seller is responsible for clearing the goods for export, providing any type of documents or export licenses required for transport and packing the goods for transport. The buyer is responsible for unloading the goods at the port of destination, as well as for clearing the goods for import.
The CIF Incoterm is one of the 2020 Incoterms that is applicable only to sea freight.
Seller’s and buyer’s responsibilities under CIF shipping terms
The CIF Incoterms of 2020 determines the responsibilities of the seller and the buyer in an international sea cargo contract.
Seller’s responsibilities in Cost, Insurance, and Freight
- Export licenses, taxes, permits and customs clearance in the country of origin.
- Packaging the cargo for shipping.
- Transport and loading fees until the port of destination.
- Insurance coverage until the buyer’s port of destination.
- Cover destruction or damage until the goods are loaded on the ship.
- Provide proof of loading and delivery.
Buyer’s responsibilities in Cost, Insurance, and Freight
- Unloading the goods at the terminal.
- Transporting the goods from the terminal to the delivery site.
- Import taxes and clearance.
- Import clearance procedures.
- Charges for transport from the delivery site to the final hub, warehouse or buyer’s address.
