CIF terms of delivery explained under Incoterms 2020

CIF – Cost Insurance and Freight (named place)

CIF means Cost Insurance and Freight

CIF under Incoterms 2020 is one of the delivery terms under Marine restricted terms. So it is used for the movement of goods by Sea and Inland water way.

Under CIF term, the seller delivers the goods to the buyer at the named destination port in Buyer’s country.  In international trade, the Exporter bears the cost of movement of goods till the Vessel carrying the said goods berths at the named destination port.  The exporter is also responsible for minimum Insurance cover against the movement of goods up to the named port of destination mentioned.  However, the risk of movement of goods transfers from seller to buyer immediately upon the goods gone on board the vessel at load port in Buyer’s Country.   In other words, the costs and risks under don’t transfer equally from Seller to Buyer, under CIF terms.

Under CIF terms, the seller meets all expenses and risks for packaging the goods and pre carriage till the goods reaches on board the vessel.  The seller undertakes the risks and costs of export documentation, Terminal handling charges at port of loading and export clearance process.  The seller also makes the payment of freight towards main carriage till the named destination port contracted. The seller is also responsible for arranging insurance up to the named destination port contracted under CIF terms of delivery.

Under CIF terms, the buyer bears the cost of import customs clearance, port handling charges, import documentation, statutory import duty and taxes if applicable, on carriage charges from named destination port to the final destination where he requires goods.  The buyer is responsible to undertake the risks of goods from the point where the goods gone on board the vessel at the first load port in Seller’s country.

Under CIF terms of delivery, the seller holds  the control over the main carriage and in charge of Carrier.

A CIF term of delivery under Inco Terms is ideal for the movement of goods by Sea and Bulk Cargo movement. It is widely used for the movement of Full Container Load (FCL).Click here to read about Ex-works, FOB,FCA,CPT,CIP,DAP,DPU,DDP,FAS,CFR and CIF  under INCO TERMMS 2020

Inco Terms for movement of goods is revised as Incoterms 2020.  The importers and exporters are suggested to use the latest version.  Click here to read the contents of Inco Terms 2020.

CIF- Cost Insurance Freight (named Place)

Click here to read other delivery rules under Inco terms  

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Inco Terms for movement of goods is revised as Incoterms 2020.  The importers and exporters are suggested to use the latest version.  Click here to read the contents of Inco Terms 2020.

The aboove detail explains about CIF delivery rules for movement of goods from seller to buyer. Please add your thoughts below about this subject - CIF Cost Insurance and Freight.

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