An Incoterms rule under which the seller pays freight and minimum insurance to the destination port, while risk passes to the buyer at the port of shipment.
[01]
Under CIF, the seller handles export clearance, loads the goods on board and pays freight and insurance to the named destination port. Risk passes to the buyer when the goods are loaded on board at the port of shipment, so the buyer carries the risk during transit even though the seller arranges the insurance.
The seller only needs to obtain minimum insurance cover; buyers wanting broader cover must agree this separately. CIF is used only for sea and inland waterway transport.