# CIF (Cost, Insurance and Freight)

*Last updated: 2026-06-26*

> CIF (Cost, Insurance and Freight) is an ICC Incoterm for sea and inland waterway transport under which the seller pays ocean freight and arranges cargo insurance to the named destination port, while risk transfers to the buyer once the goods are on board at the loading port.

CIF (Cost, Insurance and Freight) is an ICC Incoterm for sea and inland waterway transport under which the seller pays ocean freight and arranges cargo insurance to the named destination port, while risk transfers to the buyer once the goods are on board at the loading port. Under Incoterms 2020, the seller's insurance obligation is fulfilled by minimum cover under Institute Cargo Clauses (C); broader protection requires explicit contractual agreement. The key distinction from CFR is this mandatory insurance: the buyer receives a baseline policy without having to arrange one, but has no say in the choice of insurer or the scope of cover. CIF is common in commodity trading and consumer goods exports, and is also frequently used as the basis for customs valuation in many importing countries.

**Source:** [https://iccwbo.org/business-solutions/incoterms-rules/](https://iccwbo.org/business-solutions/incoterms-rules/)

## Quick Facts

| Property | Value |
|---|---|
| Term | CIF (Cost, Insurance and Freight) |
| Language | EN |
| Word count | 129 |
| Last updated | 2026-06-26 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/ |

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