What Is CIF (Cost, Insurance & Freight)?

The seller books and pays freight and insurance to the destination port.

CIF (Cost, Insurance & Freight) is an Incoterm under which the seller books and pays for ocean freight and marine insurance to the buyer's named destination port. The buyer takes over responsibility — including import customs clearance — once the goods arrive. CIF is useful for buyers who don't yet have an origin-side freight relationship but do have an import customs broker at destination, since it removes the freight-booking burden while keeping import formalities in the buyer's hands.