Definition
CIF (Cost, Insurance and Freight) under Incoterms 2020 is for sea/inland waterway. The seller pays cost and freight to the named destination port and provides minimum insurance. Risk still transfers when goods are on board at origin — not when they arrive. Buyer handles import clearance and onward haulage unless otherwise agreed.
Worked example
CIF Felixstowe: seller books ocean and minimum cover; you still clear UK import, pay duty/VAT as applicable, and truck to your 3PL. Lead time includes port dwell and drayage you control.
Why it matters for replenishment
CIF can hide that risk passed at origin and that destination charges still hit your landed cost.
Guides & calculators
Educational overview of common shipping terms including Incoterms® 2020 concepts. Not legal, customs or tax advice. Incoterms® is a trademark of the International Chamber of Commerce (ICC). Confirm the exact rule and named place in your contract, and speak to your freight forwarder or adviser for live shipments.