Sourcing glossary
CIF
Also known as: Cost, Insurance and Freight
An Incoterm for sea shipments under which the seller pays freight and minimum insurance to the named destination port, while risk passes to the buyer once the goods are on board in the origin port.
CIF is followed by a destination port, for example CIF Rotterdam. The supplier clears export, books the ocean freight and buys cargo insurance, which under Incoterms 2020 only has to meet the minimum Institute Cargo Clauses (C) level for 110% of the contract value. The buyer bears the risk during the voyage and pays destination charges, customs clearance and import duty.
Because the supplier's forwarder controls the shipment, CIF can lead to high destination charges. Compare it with FOB in CIF vs FOB.
Related terms
Guides that use this term
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What a China sourcing agent actually does, the four types you will meet, typical fees, when an agent beats buying direct, and a checklist to vet one before you pay.
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How a Peruvian importer clears goods from China: the US$200 and US$2,000 thresholds, ad valorem 0/6/11%, IGV and IPM, IGV perception, customs agents and the China FTA.
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Import Taxes from China to Mexico: Duty, IVA, DTA and the 33.5% Courier Rate
What a Mexican importer pays on goods from China in 2026: IGI by tariff line (5–50% since January), 16% IVA, DTA, antidumping quotas, the 33.5% courier rate, an example.
Updated 2026-10-14 · 7 min read
Part of Incoterms & Payment.