CIF (Cost, Insurance and Freight)

CIF stands for Cost, Insurance and Freight. It is a pricing arrangement used in the transportation of goods, in which the seller bears all costs and assumes all risks up to the arrival of the goods at the destination port. Under this arrangement, the buyer pays only the cost (the price of the goods, freight charges and insurance premium) for the shipment of goods from the seller’s port of origin to their own destination port. The agreement between buyer and seller is set out in terms of a mutual understanding that each party will adhere to certain responsibilities such as payment of goods and services, shipping documents and delivery times.