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Logistics & Trade · Definition

Cost, Insurance and Freight

The seller pays freight and insurance to the destination port; the buyer clears customs.

Under CIF the seller arranges and pays sea freight and marine insurance to the named destination port. The buyer handles import duty, clearance, inland transport and any local charges.

CIF value is also the base most customs authorities assess duty on, which makes it the figure that matters for landed cost even when you bought on other terms.

Related terms

Incoterms

Standard trade terms defining who pays for and risks each leg of a shipment.

Free on Board

FOB

The seller delivers goods onto the vessel; the buyer carries cost and risk from there.

Import Duty

Tax charged on goods entering a country, based on their classified value.

Customs Clearance

The process of getting goods legally released across a border.

More in Logistics & Trade

Air Waybill (AWB) Bill of Lading (BoL) Bonded Warehouse Certificate of Conformity (CoC) Clearing Agent Container Freight Station (CFS) Delivered Duty Paid (DDP) Demurrage

Cost, Insurance and Freight is not just a definition here

Logistics & Trade runs on this vocabulary every day in AWRA OpsHub — 23 of our 257 glossary terms describe things the platform actually does.

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