CIF
Cost, Insurance and Freight — the seller pays freight and insurance to the named destination port; risk transfers to the buyer once loaded at origin.
Trade termTL;DR: This term is one of 37 definitions in the freight glossary, so the signal is the number it changes — not the acronym. It sits in the Trade term category and links to 3 related terms for adjacent freight math. Use the example below to turn the definition into a before/after calculation before you quote or clear cargo.
What it means
CIF (Cost, Insurance and Freight) means the seller pays the ocean freight and a minimum level of marine insurance to the named destination port, while the buyer takes on risk once the goods are loaded at origin. It sounds like the seller does everything, but it is not door-to-door: the buyer still handles import clearance, duties and VAT at the destination. CIF is common on the China-to-GCC lane because it bundles freight into the purchase price, which suits buyers who want a single price and no involvement in arranging ocean transport. The hidden caveat is the insurance — under CIF the seller is only obliged to insure at the minimum ICC(C) level, which covers total loss but little else. If you want real cover, buy supplementary insurance yourself.
Who pays / who bears risk
Who pays
Seller pays freight and insurance to the destination port.
Who bears risk
Risk still transfers to the buyer at loading — insurance covers loss, not the buyer's obligation.
Common misunderstanding
CIF does not mean the seller unloads or clears the goods at destination.
Why it matters
CIF bundles freight and basic insurance into one price, but covers only minimum-risk loss — add your own insurance if the cargo is valuable or fragile.
Example
A UAE importer buys CIF Jebel Ali: the seller pays freight and minimum insurance to Jebel Ali; the buyer clears import and pays 5% duty plus 5% VAT on arrival.
Related terms
FOB
Free on Board — the seller delivers goods on board the vessel at the named origin port; the buyer pays freight and insurance from there.
Learn more →DDP
Delivered Duty Paid — the seller delivers goods cleared for import and pays all duties and taxes up to the destination.
Learn more →Incoterms
International Commercial Terms — a standardized set of trade terms defining buyer and seller responsibilities, published by the ICC.
Learn more →