CIF at a glance
Under CIF, the seller delivers goods on board, pays carriage to the named destination port, and must obtain cargo insurance for the buyer. Risk still transfers when goods are on board at origin.
Shipment
- Named location
- Named port of destination
- Delivery point
- When goods are on board the vessel at the port of shipment
- Risk transfer
- When goods are on board the vessel at the port of shipment
Responsibilities
- Main carriage
- Seller arranges and pays
- Export clearance
- Seller
- Import clearance
- Buyer
- Insurance
- The seller must obtain insurance complying with the CIF rule’s coverage standard for the buyer’s benefit.
Contract
- Common comparison
- Compare with CFRCFR is similar but without a seller insurance obligation.
Illustrative notation: CIF Port of Singapore, Incoterms® 2020. Customize and copy below ->
Responsibility journey
- Delivery point
- When goods are on board the vessel at the port of shipment
- Risk transfer
- When goods are on board the vessel at the port of shipment
Seller / exporter
- Cost
- Seller
Origin pickup
- Cost
- Seller
Export clearance
- Cost
- Seller
- Export
- Seller
Origin terminal
- Cost
- Seller
On board vessel
- Cost
- Seller
- Handoff
- Delivery + risk transfer
Ocean / waterway
- Cost
- Seller
Destination terminal
- Cost
- Buyer
Import clearance
- Cost
- Buyer
- Import
- Buyer
Final delivery
- Cost
- Buyer
Buyer / importer
- Cost
- Buyer
Who pays what under CIF?
CIF is sea/inland-waterway only. Like CFR, risk moves at origin on-board delivery; unlike CFR, the seller must procure insurance for the buyer’s benefit.
Seller does
- Deliver goods on board at origin
- Pay carriage to the named port of destination
- Obtain the required cargo insurance
- Complete export clearance
Buyer does
- Bear risk after goods are on board at origin
- Handle import clearance
- Assess whether additional insurance is needed
Not determined by the CIF rule alone
- Risk transfer at destination
- Seller import clearance
When to use CIF
When CIF fits
- Sea shipments where the seller should provide both freight and baseline insurance
When to use CIF with caution
- Multimodal cargo—compare CIP
- Buyers needing higher insurance cover than the CIF baseline
CIF shipment example
A seller ships goods CIF Port of Singapore, Incoterms® 2020. Goods go on board at origin, the seller pays ocean freight to Singapore, and buys the required insurance. Risk transfers on board at origin; the buyer handles import clearance in Singapore.
Common mistakes
- Assuming CIF risk transfers at the destination port
- Using CIF for air or multimodal moves better covered by CIP
How do you write CIF in a contract?
Include the acronym, the exact named location, and the edition.
Contract notation builder
Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.
CIF Port of Singapore, Incoterms® 2020Edition is fixed to Incoterms® 2020. Catalog example: CIF Port of Singapore, Incoterms® 2020
Does CIF include insurance?
The seller must obtain insurance complying with the CIF rule’s coverage standard for the buyer’s benefit.
CIF compared with related terms
Use these comparisons when the shipment mode, handoff point, or insurance need does not match CIF.
CIF vs. CFR
CFR is similar but without a seller insurance obligation.
CFR is similar but without a seller insurance obligation.
Open CFR details ->CIF vs. CIP
CIP works for any mode and a named place, not only a destination port.
CIP works for any mode and a named place, not only a destination port.
Open CIP details ->CIF vs. FOB
FOB leaves main carriage with the buyer.
FOB leaves main carriage with the buyer.
Open FOB details ->
Frequently asked questions
Does CIF insurance mean the seller keeps the risk to destination?
No. Under CIF Incoterms® 2020, risk transfers when goods are on board at the port of shipment. Insurance is a separate seller obligation.
Related Crane services
When research turns into an operational shipment, connect the term to the teams that execute freight, clearance, insurance, and trade advice.
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Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.
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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).