CIF

shipping

In Cost, Insurance, and Freight, the seller/exporter/manufacturer clears the goods for export and delivers them on board the ship at the port of shipment (not destination). This is where risk passes from seller to buyer.

The seller, however, is responsible for contracting for and paying the costs associated with transport of the goods and minimum cover insurance to the “named port of destination.” This is where costs transfer from seller to buyer.

It is important to note that the transfer of risk from seller to buyer occurs at a different point than the transfer of costs.

See Cost, Insurance, Freight; Incoterms.

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