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 CE, UKCA, FCC and the US Children's Product Certificate mean, which products need them, who is responsible, and how to check a supplier's certificate.
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QC
Defective Goods from China: What to Do When Your Order Arrives Wrong
Defective goods from a Chinese supplier? How to document evidence, use your PO terms, negotiate a fix, file Trade Assurance or insurance claims, and prevent repeats.
Updated 2026-09-21 · 5 min read
Part of Incoterms & Payment.