CIF
IncotermsCost, Insurance and Freight
The seller pays the freight and minimum insurance to the named destination port, but risk passes to the buyer once goods are on board at origin.
In practice
Only the seller's cost obligation goes to destination; risk still passes at origin. The minimum cover is Institute Cargo Clauses (C), which many buyers find too thin. Customs in many countries assess duty on the CIF value.
Seen in the wild
CIF Rotterdam. Seller to provide ICC(A) cover at 110% of invoice.
Watch out
Buyers often think CIF means the seller carries risk until arrival. It does not; risk passed when the container was loaded at origin.