The term “Cost, Insurance and Freight” means that title to the goods changes from seller to buyer when the goods pass the ship’s rail at the port from where the goods are being shipped. In the case of CIF the seller bears the cost of shipping the goods to the named destination port, however the risk of loss or damages are borne by the buyer at transfer of title. The only exception to this is that the seller must insure the goods (by procuring marine insurance) against loss or damage while they are being carried by the ship.
The CIF term requires the seller to clear the goods for export from the country of origination – This trade term is proudly brought to you courtesy of trade leads from the Arts, Crafts and Hobbies section of the Fuzing.com business to business marketplace.
