Sea only — seller pays freight and insurance; risk transfers on board at origin
What is CIF?
CIF (Cost, Insurance and Freight) is a sea-only Incoterm. The seller pays the ocean freight to the named destination port and arranges cargo insurance for the buyer’s benefit. Risk transfers to the buyer when the goods are on board the vessel at the port of shipment.
Risk and responsibility
| Task | Party | Notes |
|---|---|---|
| Export packing & documentation | Seller | Invoice, packing list, export docs |
| Export clearance | Seller | Seller files export declaration |
| Origin handling & loading on board | Seller | Risk transfers when on board |
| Ocean freight to named port | Seller | Freight paid to destination port |
| Insurance for buyer | Seller | Minimum cover by default; buyer can request higher cover |
| Destination charges, import & delivery | Buyer | THC/port fees (where applicable), import, duties/taxes, onward delivery |
When to use CIF
- Non-containerised sea freight where the seller is paying freight and providing insurance.
- Transactions where the buyer wants basic insurance arranged by the seller.
Notes & alternatives
- For higher insurance cover and any mode, use CIP.
- If the seller should pay freight but not insure, see CFR.
- For containers/multimodal with earlier handover, consider CIP or CPT.
How Clintopia helps
We arrange export formalities, compliant insurance certificates and ocean bookings under CIF. For routing and sailings, see Sea Freight. For tariff codes and customs entries, see Customs Clearance. For UK port to site delivery, see Container Haulage. For end-to-end moves, see Freight Forwarding.
Related terms
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