CIF: Cost, Insurance and Freight

By Mohamed Omer, Chairman & Chief Executive Officer, Mooventory Global · Sea & inland waterway

As CFR, but the seller also buys minimum-cover marine insurance, Institute Cargo Clauses (C).

Where risk transfers

When goods are on board the vessel at the port of loading.

When to use CIF

Bulk and commodity trades, and letter-of-credit deals that require insurance documents.

Watch out for

Clause (C) cover is basic. Many buyers negotiate Clause (A) cover or top up the insurance.

CIF for Africa trade

Many African customs authorities value goods on a CIF basis, so know your CIF value even if you buy FOB.