Cost, Insurance and Freight
CIFCFR plus seller-arranged minimum cargo insurance to the named destination port.
Last reviewed: 30 September 2026
Professional definition
CFR plus seller-arranged minimum cargo insurance to the named destination port. The named place must be stated precisely and the parties should identify the Incoterms® 2020 version.
Example
A Vietnamese coffee seller pays freight and minimum insurance to Felixstowe; risk passes when the coffee is loaded in Hải Phòng.
Where it is used
Sea / inland waterway only. Name the destination port and clarify the origin port where on-board risk transfers.
CIF responsibilities
Seller
- Perform all CFR seller duties
- Obtain minimum cargo insurance for the buyer's risk
- Provide the insurance policy/certificate
Buyer
- Bear risk from on-board delivery
- Clear goods for import
- Arrange extra insurance if broader protection is needed
- Delivery point
- Name the destination port and clarify the origin port where on-board risk transfers.
- Risk transfer
- Transfers when goods are on board at the shipment port, although seller-paid freight and insurance continue to destination.
- Cost responsibilities
- Seller pays export, loading, freight and minimum insurance to destination port. Buyer pays import and later costs.
- Insurance
- Seller must obtain cover broadly equivalent to Institute Cargo Clauses (C), normally for at least 110% of contract price, from shipment to destination port.
- Customs
- Export: Seller. Import: Buyer. Seller pays export duties/taxes; buyer pays import duty, import VAT and clearance charges.
Common mistakes and things to remember
Incoterms® allocate delivery, risk, cost and customs tasks; they do not determine title, payment, product compliance or every contract obligation.
Source
Use the linked authority and applicable national guidance for current requirements.