Cost, Insurance and Freight (CIF)

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Description of Cost, Insurance and Freight (CIF). Explanation.

 

Definition Cost, Insurance and Freight (CIF). Description.


Cost, Insurance and Freight (CIF) is an international sales term used in the transportation industry, especially ocean transport. When a price is quoted CIF, it means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance.


The seller's responsibility for the goods ends when the goods have been delivered to the marine carrier or have been delivered on board the shipping vessel, depending upon the terms of the contract.


Note that because this is a legal term, its exact definition is much more complicated and can differ by country.


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