CIF

Cost, Insurance and Freight — seller pays freight and minimum insurance to the destination port.

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.

Related terms

Common questions

Does CIF mean the seller owns the risk until delivery?

No. Under CIF, risk passes on board at shipment, even though the seller pays freight.

Is CIF insurance enough?

It is minimum cover under the rule — many buyers arrange higher cover themselves.

CIF vs DAP?

DAP delivers to a named place ready for unloading (any mode) with risk transferring on delivery; import clearance stays with the buyer under DAP.

Is CIF the same everywhere?

The idea is shared, but formulas and marketplace rules differ. Use the definition on this page for ecommerce replenishment.

Do I need software to track CIF?

A spreadsheet works for a few SKUs. Once you have many suppliers or channels, a replenishment tool keeps the numbers current.

Does OmniRestock change my live stock?

Not unless you switch Stock write or Purchase orders on for a connection. Drafts stay drafts until you confirm.