Cost Insurance and Freight (CIF)
Seller is responsible for the payment of freight to carry goods to a named destination, as agreed with the buyer. The seller is also responsible for providing cargo insurance at minimum coverage against the buyer's risk of loss or damage to the goods during transport. This term should be used with ocean shipments only, as the point where risk and responsibility pass from seller to buyer is the rail of the carrying vessel.
Nearby TermsCost center Cost company arrangement Cost Insurance and Freight (CIF) Cost of capital Cost of carry
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University