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CIF, explained.
Incoterms
We sell on CIF terms under Incoterms® 2020: Cost, Insurance and Freight to your named discharge port.
Under CIF, the seller pays for the cargo, the freight and the marine insurance to the discharge port. Risk passes to the buyer when the goods are loaded on board the vessel at the load port, while the seller remains responsible for arranging carriage and insurance.
For buyers, CIF means a delivered price, one counterparty for the voyage, and an insurance policy in their favour.
Who pays
Responsibilities under CIF.
| Item | Seller | Buyer |
|---|---|---|
| Product at load port | ✓ | |
| Export clearance | ✓ | |
| Loading | ✓ | |
| Freight to discharge port | ✓ | |
| Marine insurance (min. 110%) | ✓ | |
| Risk after loading on board | ✓ | |
| Import clearance and duties | ✓ | |
| Discharge costs | As agreed | As agreed |
Summary for guidance only. The contract and Incoterms® 2020 rules govern.
Questions
About CIF.
Can you sell FOB?
Where a buyer has its own chartering capability, we can discuss FOB terms at the load port.
Can you deliver DAP to Burkina Faso?
Inland delivery is arranged case by case with licensed road hauliers from Lomé.
Who chooses the insurer?
We place cover with reputable marine underwriters. The policy is assigned to the buyer through the documents.
