Cost, Insurance & Freight (CIF)

Definition: Cost, Insurance & Freight (indicating the agreed port of destination).

Type of Transport: maritime

Obligations of the Seller:

• Contract the ship; pay the freight and the loading operations until the port of destination
• Make the export formalities for the goods.
• Contract a protective insurance policy for the goods during the transport for a minimum amount of 110 % of its value.

Obligations of the Buyer:

• Although the Seller contracts and pays the assurance, the goods travel at the Buyer’s risk, who is the insurance policy beneficiary by direct nomination or by the transferable characteristic of the policy.