CIF means cost, insurance and freight, an international trade term in which the seller pays those costs to the named destination port.
Under CIF, the seller arranges and pays for transport to the destination port and obtains marine insurance covering the buyer’s risk during the voyage. However, the risk of loss generally transfers to the buyer when the goods are loaded on board the vessel at the shipment port, not when they arrive at the destination.
CIF is one of the Incoterms rules issued by the International Chamber of Commerce. It is intended for sea and inland-waterway transport. The term specifies important cost and risk responsibilities, but it does not by itself determine ownership, payment timing or every customs obligation.
CIF is often confused with FOB. Under FOB, the seller generally pays to load the goods on the buyer’s vessel, while the buyer arranges the main carriage. Under CIF, the seller arranges freight and insurance, even though transit risk still usually belongs to the buyer after loading.