Cost, Insurance and Freight - CIF

AAA

DEFINITION of 'Cost, Insurance and Freight - CIF'

A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

INVESTOPEDIA EXPLAINS 'Cost, Insurance and Freight - CIF'

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery, payment, when the risk of loss shifts from the seller to the buyer and who pays the costs of freight and insurance. The most commonly known trade terms are Incoterms, published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms (such as the American Uniform Commercial Code), but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.

It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. Contact an international trade lawyer before using any trade term.

RELATED TERMS
  1. Assembly Service

    Combining a number of small shipments from multiple parties into ...
  2. HARPEX Shipping Index

    The container ship index of ship brokers Harper Petersen & ...
  3. Cass Freight Index

    A measurement of the monthly aggregate shipment of freight that ...
  4. Truck Tonnage Index

    An index that measures the gross tonnage of freight that is transported ...
  5. Intermodal Freight

    Products and raw materials that are placed in a container that ...
  6. Deposit In Transit

    A deposit in transit is money that has been received by a company ...
Related Articles
  1. Personal Finance

    What Is International Trade?

  2. Budgeting

    7 Tips For Avoiding Shipping Costs When ...

  3. Economics

    What is the difference between loan ...

  4. With the second-largest economy in the world, China has significant (and growing) influence on the global economy. But how is that impact figured?
    Economics

    A Look At China's Growing Influence ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center