Cost Insurance and Freight

From Open Risk Manual

Definition

Cost Insurance and Freight. It is a shipping term included in a contract of sale (abbreviated as CIF) meaning that the vendor agrees to take full responsibility for delivering the products to the port of loading, clear the products for export, and arrange and pay for transportation and marine insurance over the products to the named port of discharge, such costs being included in the price of the products.

All risks of loss or damage to the products, as well as any additional costs due to events occurring after the time the products have been delivered on board the vessel, are transferred from the vendor to the buyer when the products pass the vessel's rail at the port of loading. It is up to the buyer to arrange transportation from the port of discharge.

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