In international trade, what does the Incoterm CIF mean?

In international trade, the Incoterm CIF means Cost, Insurance and Freight.

Under CIF, the seller arranges and pays for transport and insurance to the named destination port. The seller also completes export formalities. However, the risk generally transfers to the buyer when the goods are loaded onto the vessel at the shipment port, not when they arrive.

CIF is used only for sea or inland-waterway transport under the Incoterms rules. A common mix-up is confusing the point where the seller pays costs with the point where risk transfers. CIF is different from CIP, which can be used for any mode of transport and requires a higher level of insurance coverage under current Incoterms rules.

The International Chamber of Commerce publishes Incoterms, which define important delivery responsibilities but do not by themselves set ownership or payment terms.