CIF

- Oct 04, 2019-

The Chinese translation of CIF terminology is called cost plus insurance plus freight. (Designated port of destination, the original text is Cost, Insurance and Freight (insert named port of destination). The terms of the price include the port of shipment to the agreement. The usual freight and agreed insurance premiums at the destination port, so the seller has the same obligations as the CFR terminology, but also handles the cargo insurance for the buyer and pays the insurance premium. According to the general international trade practice, the insurance amount of the seller’s insurance shall be The CIF price is increased by 10%.


It should be emphasized that, in accordance with the CIF terminology, although the seller arranges the transportation of goods and handles the cargo insurance, the seller does not undertake the obligation to guarantee the delivery of the goods to the agreed port of destination, because CIF is a term for shipment delivery, not The term of destination port delivery, that is to say CIF is not “CIF”.


CIF CIF is “cost, insurance and freight” means delivery is completed when the port of shipment is loaded onto the carrier's ship.


CIF usually refers to FOB + shipping + insurance.


C&F (CFR) is different from CIF. C&F: cost and freight means cost + freight, followed by the name of the destination port, which means that the freight is calculated at the port of destination, and the responsibility is stopped at the port of loading.


C&F (CFR) usually refers to FOB+ shipping costs. The seller must pay the freight and fees required to ship the goods to the designated port of destination, but the risk of loss or damage to the goods after delivery and any additional costs due to various events are transferred from the seller to the buyer. However, under CIF conditions, the seller must also handle the marine insurance for the risk of loss or damage to the buyer’s goods during transit.


Therefore, the seller enters into an insurance contract and pays the insurance premium. The buyer should note that the CIF term only requires the seller to insure a minimum insurance coverage. If the buyer needs a higher insurance coverage, it is necessary to expressly agree with the seller or make additional insurance arrangements.


The CIF term requires the seller to handle the customs clearance of the goods, and the buyer handles the customs clearance of the goods. This term applies only to sea and river transport. CIP terminology should be used if the party does not assume the obligation to ship.


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