Cost, Insurance and Freight
What is Cost, Insurance, and Freight (CIF)?
Cost, Insurance, and Freight (CIF) is a pricing term used in international trade that refers to the cost of goods, insurance, and freight charges associated with transporting goods from a supplier to a buyer. CIF pricing includes the cost of the goods, as well as the cost of insuring the goods against loss or damage during transportation, and the cost of transporting the goods to the port of destination. The buyer is responsible for paying the CIF price and is also responsible for any duties or taxes that may be imposed on the goods when they arrive at their destination.
CIF is often used in international trade when the buyer does not have the capability or desire to arrange for their own insurance or transportation. In this case, the supplier takes on the responsibility of arranging for insurance and transportation, and the costs of these services are included in the CIF price.
CIF pricing is typically used in situations where the buyer is located in a different country from the supplier, and the goods are being shipped by sea. It is similar to the Cost and Freight (CFR) pricing term, which includes the cost of the goods and the freight charges but does not include insurance.