Cost Insurance and Freight (CIF) is a term used in international trade that specifies the seller's responsibility for delivering goods to a port of destination, including the costs of:
Cost: Price of the goods.
Insurance: Coverage for the goods during transport.
Freight: Shipping costs to the destination port.
Key Features:
The seller arranges and pays for transport and insurance up to the destination port.
The buyer assumes risk and costs once the goods are at the destination port.
Example:
A supplier in China ships machinery to Germany under CIF terms. The supplier covers costs and insurance until the German port, but the buyer manages customs and transport from the port onward.