Incoterms® 2020 · C: main carriage paid

CIF Cost, Insurance and Freight

As CFR, plus the seller insures the cargo for the buyer, with minimum cover ICC (C).

Delivery point: On board the vessel at the port of shipment
Risk passes: When the goods are on board the vessel, in the origin port
Transport mode: Sea and inland waterway only
Export clearance: Seller
Import clearance: Buyer
Insurance: Seller, minimum cover ICC (C)

Responsibility matrix

Costs and risk, stage by stage

CIF is CFR with insurance. The seller pays ocean freight to the destination port and buys cargo insurance in the buyer's favour, at least Institute Cargo Clauses (C) for 110% of the contract value. Risk still passes when the goods are loaded on board at origin; the insurance is what protects the buyer during the voyage.

Seller pays
Buyer pays
Depends on the contract of carriage or the named place
Risk passes to the buyer

01 Loading at seller's premises Seller pays
02 Pre-carriage to export terminal Seller pays
03 Export clearance Seller pays
04 Origin terminal and loading on board Seller pays
05 Main carriage Seller pays
06 Destination terminal charges Depends on the contract of carriage or the named place
07 Import clearance, duties and taxes Buyer pays
08 Carriage to named destination Buyer pays
09 Unloading at destination Buyer pays

Who does what

The seller must

Contract and pay for carriage to the named port of destination
Insure the goods with at least ICC (C) cover for 110% of the value
Give the buyer the insurance policy or certificate and the bill of lading
Load the goods on board and clear them for export
Notify the buyer once the goods are on board

The buyer must

Bear the risk once the goods are on board, claiming under the insurance if needed
Pay for wider cover, such as ICC (A), if it wants it
Pay destination costs not included in the freight
Clear the goods for import and pay duties and taxes
Receive the goods at the destination port

When to use it

Bulk and break-bulk sea cargo
Letters of credit requiring an insurance document with the bill of lading
Buyers without an annual cargo policy

Be careful when

Container cargo: use CIP, which also gives all-risks cover
You assume the minimum cover protects against all damage: ICC (C) covers major casualties only

Tip for buying from Vietnam

For goods sensitive to moisture or handling damage, such as steel coils, ask the supplier for ICC (A) cover in the contract, at an agreed extra cost.

How to write it

CIF Port of Antwerp-Bruges, Belgium, Incoterms® 2020

Compare with

This guide summarises the Incoterms® 2020 rules in plain language for planning. It is not the official text. Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce. For the full rules, see ICC publication No. 723E.

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