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Cost, Insurance, and Freight - CIF
What does it mean?
A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.
In Other Words...
ontracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery, payment, when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.
The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms (such as the American Uniform Commercial Code), but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.
It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.
Related Links
International Chamber of Commerce: Incoterms - The homepage for Incoterms on the ICC website.
Related Terms
CFR | DES | EXW | FAS | FCA | FOB | Incoterms
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C | D |
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M | N |
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Y | Z
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