cost, insurance and freight

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Cost, Insurance and Freight

A CPT involving ocean freight. In a CIF, the seller is responsible for paying for shipping and providing a minimum amount of insurance coverage up to the named port of destination, while the buyer is responsible for the transportation risk beyond the minimum coverage as soon as the good or product is loaded onto the ship. Legally, risk transfers when the good or product crosses the outer rail of the ship. A CIF is similar to a CFR, but also requires the seller to provide minimal insurance. See also: Incoterm.

cost, insurance and freight (c.i.f)

a term used to denote the respective contractual obligations of sellers and buyers of a good which is exported. Under a ci.f. contract, the seller pays the cost of transporting the good to the port of shipment, the loading charges, and the freight charges to the port of destination, plus all insurance cover up to this point. From then on the buyer bears the cost of unloading, transporting, and insuring the good to its final destination. See COST AND FREIGHT, FREE ON BOARD, EXPORTING.