GlossaryEN1 min readUpdated: Sep 6, 2026

CIF risk transfer

Under CIF (Cost, Insurance and Freight), the risk of loss or damage passes from the seller to the buyer at a precise moment: when the goods cross the ship's rail at the port of shipment and are loaded on board the named vessel.

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Last updated: 6 September 2026Published: 27 January 2026

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

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Definition & Explanation

Under CIF (Cost, Insurance and Freight), the risk of loss or damage passes from the seller to the buyer at a precise moment: when the goods cross the ship's rail at the port of shipment and are loaded on board the named vessel. From that point forward, the buyer assumes all risk of loss or damage during the ocean voyage, even though the seller remains obligated to pay for freight and insurance. This transfer is critical for insurance claims and liability determination.

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