What does CIF mean on a commercial invoice?

Cost, Insurance, and Freight
Cost, Insurance, and Freight (CIF) and Free on Board (FOB) are international shipping agreements used in the transportation of goods between a buyer and a seller. They are among the most common of the 12 international commerce terms (Incoterms) established by the International Chamber of Commerce (ICC) in 1936.

What does Incoterms CIF mean?

Cost, insurance, and freight
Cost, insurance, and freight (CIF) is an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer’s order while the cargo is in transit. Cost, insurance, and freight only applies to goods transported via a waterway, sea, or ocean.

What is CIF in commercial law?

C.I.F., or “cost, insurance and freight”, is a term of the contract of sale of goods being shipped where the seller pays the cost of the insurance and transport of the goods to the destination; legal delivery occurs when the goods cross the ship’s rail in the port of shipment. …

When should I use CIF?

The terms are also used for inland and air shipments. CIF is considered a better way to buy goods for those who are new to international trade. It might also be a better option for new traders who have small cargos.

What is FOB CIF and CNF?

Several parties are involved in international shipment. There are two major terms of shipment widely used round the globe. These are freight on board (FOB) and cost net freight (CNF). Other terms such as cost net insured (CIF) and cash against document/delivery (CAD) are also used.

Which is better CIF or CIP?

So in most of the cases, the insurance premium under CIP terms could be more than CIF terms. Under CIF terms, the risk of seller passes to buyer when goods gone onboard the vessel. But under CIP terms, the liability on risk fulfills by buyer immediately up on delivery of goods to first carrier of goods.

Which is better FOB or CIF?

It is advised to go with the FOB option for shipping as the buyer gets control over the shipping process and the costs are comparatively cheaper. Whereas in CIF shipping, since the seller has the authority over shipping charges and arranging a ship with the help of a freight forwarder, the cost is higher.

Does CIF price include duty?

CIF includes duty and charges, where the seller assumes responsibility for export customs proceeding and the buyer for import customs.

What is the CIF value?

CIF (Cost, Insurance, Freight) A pricing term indicating that the cost of goods, insurance, and freight are included in the quoted price. Duty is calculated by adding all costs together.

Is CFR and CIF same?

Insurance However, while the two share the similarity of freight cost and risk transfer point, CFR differs from CIF in terms of the insurance. Under CFR, marine insurance is not among the seller’s obligations.

What are CIF shipping terms?

Cost, insurance and freight (CIF) is 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.

What does CIF stand for in shipping?

Cost, insurance, and freight (CIF) is a common method of import and export shipping. CIF determines when the responsibility for goods transfers from the seller to the buyer. CIF is one of the international commerce terms known as Incoterms. The contract terms of CIF define when the liability of the seller ends and the liability of the buyer begins.

What is CIP Incoterms?

CIP (or Carriage and Insurance Paid To) is an Incoterm where the seller is responsible for the delivery of goods to an agreed destination in the buyers country, and must pay for the cost of this carriage. The sellers risk however, ends once they have placed the goods on the ship, at the origin destination.

What is CIF cost?

Updated Apr 25, 2019. Cost, Insurance, and Freight (CIF) is an expense paid by a seller to cover the costs, insurance, and freight against the possibility of loss or damage to a buyer’s order while it is in transit to an export port named in the sales contract.