CIF is the Incoterm requiring the seller to pay for insurance and freight to a named port.
CIF stands for Cost, Insurance and Freight and is one of the maritime Incoterms used for sea or inland-waterway transport. The seller arranges export formalities, loads the goods, pays carriage to the named destination port, and obtains cargo insurance for the buyer's benefit.
The important technical distinction is that cost and risk do not transfer at the same place. Under CIF, risk generally passes to the buyer when the goods are loaded on board the vessel at the port of shipment, even though the seller pays freight to the destination port. The seller must also provide documents such as the invoice, bill of lading, and insurance policy.
CIF is often confused with FOB, under which the buyer normally arranges the main freight and insurance. It is also confused with CFR: CFR includes freight but not the seller's obligation to obtain insurance. CIF is intended for maritime shipments, not ordinary containerized multimodal transport, for which CIP is usually more suitable.