Cost, Insurance and Freight (CIF) is an Incoterm used only for sea and inland waterway transport. The seller pays the cost of the goods, the freight to bring them to the named destination port, and a minimum level of marine insurance. Even though the seller arranges and pays for these, risk transfers to the buyer at the moment the goods are loaded onto the vessel at the origin port, not when they arrive.
How it works
Under CIF, the seller handles export clearance, delivers the goods onto the ship, and covers freight and insurance to the agreed destination port. Once the goods cross the ship’s rail at origin, the buyer bears the risk of loss or damage in transit, even though the seller’s insurance is still in force. The buyer then takes over at the destination port: import customs clearance, duties, taxes, and onward transport to the final address.
Why it matters
CIF matters because it splits cost responsibility and risk responsibility at different points. A buyer can see a landed-to-port price without arranging ocean freight themselves, which is convenient. But if a container is damaged at sea, the buyer files the insurance claim, not the seller. The insurance CIF requires is only minimum cover (Institute Cargo Clauses C), so many buyers negotiate broader coverage.
Example on a B2B quote
Suppose a US Shopify merchant supplies a distributor in Rotterdam. A CIF Rotterdam quote bundles goods, ocean freight, and basic insurance into one figure, but excludes EU import duty, VAT, and delivery from the port. Stating the Incoterm and named port on the quote prevents disputes later. When you build these quotes in a tool like ShopQuotes, you can spell out the CIF term as a line item or note so the buyer sees exactly what is and is not covered before they accept. See related terms in the B2B quoting glossary.