CIF stands for "Cost, Insurance, and Freight" and is an international shipping agreement used when freight is shipped via sea or waterway
. Under CIF, the seller is responsible for covering the costs, insurance, and freight of the buyer's shipment while in transit. The buyer is responsible for any costs once the freight has reached the buyer's destination port
. CIF is similar to carriage and insurance paid to (CIP), but CIF is used for only sea and waterway shipments, while CIP can be used for any mode of transport, such as by truck
. The seller is responsible for loading the shipment onto the vessel, obtaining necessary documentation, licenses, and inspections, and paying for shipping and insurance
. The buyer assumes all risk once the goods are on board the vessel for the main carriage
