Sea and inland waterway
CIF
Cost, Insurance and Freight
As CFR, plus the seller insures the goods for the voyage — at minimum Institute Cargo Clauses (C).
WHO DOES WHAT — 8 STAGES
SELLER
Contract and pay for sea freight to the named port of destination
Buy cargo insurance, minimum ICC (C), usually for 110% of the contract value
Load the goods on board
Complete export clearance
BUYER
Bear risk from loading on board
Pay destination charges not included in the freight
Complete import clearance and pay duties
KEY FACTS
Risk, cost and paperwork at a glance.
RISK TRANSFERS
When the goods are on board the vessel at the port of shipment.
COST TRANSFERS
The seller pays freight and insurance to the named port of destination.
INSURANCE
Seller — minimum Institute Cargo Clauses (C).
EXPORT CLEARANCE
Seller
IMPORT CLEARANCE
Buyer
IN PRACTICE
When to use it, and when not to
ICC (C) covers a limited list of major risks. Buyers of valuable or sensitive goods often ask for wider cover in the sales contract.
Educational summary of the Incoterms® 2020 rules, not legal advice. Incoterms® is a trademark of the International Chamber of Commerce; check the official ICC text and take professional advice for contracts.
GUIDE
Incoterms® 2020, explained in full
ALL RULES
The other ten rules
AGREED THE TERMS?