# Incoterms CIF — Cost, Insurance and Freight

CIF under Incoterms 2020: on-board delivery and risk transfer, seller-paid freight and insurance, documentary scope and contractual limits.

Reviewed: 2026-10-30

Tags: commercial, freight, incoterms

## Meaning and version

**CIF (Cost, Insurance and Freight)** under Incoterms® 2020 applies to sea or inland waterway transport. The seller delivers on board the vessel at the shipment port and pays freight to the destination port. The buyer bears loss or damage risk after on-board delivery, despite the seller paying for the voyage. CIF adds seller-procured insurance against the buyer’s transit risk; **CFR**, Cost and Freight, does not impose that insurance obligation. These are separate responsibilities: paying freight and insurance does not make delivery conditional on safe arrival. [ICC Academy, Peng Xianwei, 21 August 2024](https://academy.iccwbo.org/incoterms/article/incoterms-2020-cfr-or-cif/)

The rule allocates obligations, costs and risk between seller and buyer when incorporated into a sale contract. ICC’s notation includes the rule, named destination port and edition: `CIF [named port of destination] Incoterms® 2020`. The year identifies the agreed rules; the destination port identifies the extent of seller-arranged carriage, rather than the place of risk transfer. [ICC, Incoterms® and Commercial Contracts](https://library.iccwbo.org/clp/clp-incoterms-qa-2020.htm?AGENT=ICC_UK)

## Delivery, risk and freight

The same explanation assigns export clearance to the seller and import clearance, including import duties and taxes, to the buyer, where applicable. This allocation does not establish a tariff rate or tax exemption. [ICC Academy, CFR and CIF comparison](https://academy.iccwbo.org/incoterms/article/incoterms-2020-cfr-or-cif/)

## Insurance, documents and conditional costs

CIF’s default cover is Institute Cargo Clauses **(C)** or similar, unless otherwise agreed or customary in the trade. The seller pays; the buyer or another party with an insurable interest can claim directly. Minimum insured value is **110% of the contract price**, in the contract currency, covering delivery to at least the destination port. Additional buyer-requested cover depends on procurability, necessary information and buyer payment. [ICC, CIF A5](https://library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_05_RulesSea.htm)

| Subject | Qualification under CIF 2020 |
| --- | --- |
| Documents | Seller supplies insurance evidence and the usual transport document enabling collection at destination. |
| Destination unloading | Buyer pays unless the carriage contract places the charge on the seller; seller-paid unloading is not separately recoverable unless agreed. |
| Delivery variants | Procuring goods already delivered accommodates string sales. Multiple sea carriers make the agreed delivery point consequential. |
| Notices | Buyer failure to give required notice can move risk earlier for clearly identified contract goods. |

These are selected provisions, not the complete rule. [ICC, CIF explanatory notes and A5–A6/B3/A9–B10](https://library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_05_RulesSea.htm)

## Applicability and adjacent rules

ICC distinguishes CIF’s limited default insurance from **CIP**, Carriage and Insurance Paid To, which uses Institute Cargo Clauses **(A)** or similar. CIF parties may agree higher cover. Neither the name CIF nor an insured-value percentage establishes that every loss is covered. [ICC, Incoterms® 2020 insurance guidance](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/)

Container-terminal handover before vessel loading is a different delivery arrangement: ICC identifies **CIP** for multimodal carriage rather than CIF. CIF does not itself extend delivery to an inland warehouse. [ICC, CIF explanatory notes](https://library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_05_RulesSea.htm)

## Contractual and source limits

Incoterms® rules do not determine ownership transfer, payment timing or method, contract formation, remedies or governing law. Incorporation into the sale contract does not bind the carrier, insurer or bank to that contract’s requirements. Their separate contracts govern transport documents, policy terms and documentary-credit requirements. [ICC, Incoterms® and Commercial Contracts](https://library.iccwbo.org/clp/clp-incoterms-qa-2020.htm?AGENT=ICC_UK)

**Synthesis:** a CIF designation alone cannot establish the actual policy coverage, port charges, inland carriage, shipment dates or contractual amendments. Those remain transaction-specific. This reference summarizes inspected public ICC material, including selected CIF provisions and an ICC Academy guest explanation; it is not an exhaustive clause commentary or a conclusion about a particular contract or claim.

[Commercial terms](index.md)