GlossaryEN1 min readUpdated: Jun 13, 2026

CIF practice error

CIF practice errors arise from misinterpretation or incorrect application of CIF (Cost, Insurance and Freight) obligations.

Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/incoterms/

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CIF practice errors arise from misinterpretation or incorrect application of CIF (Cost, Insurance and Freight) obligations. Common mistakes include: confusing cost transfer with risk transfer (many parties mistakenly believe risk passes only when costs do), inadequate insurance (insufficient coverage or wrong policyholder), failure to document the cost transfer point in invoices, and ambiguity about whether the seller procured insurance as contractually required. These errors frequently result in disputes and non-payment claims.

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CIF practice error

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order picking error rate

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