CIF (Cost, Insurance and Freight)
An Incoterm under which the seller's quoted price includes shipping and insurance to the destination port.
Definition
Cost, Insurance and Freight is an Incoterm under which the seller's price covers the cost of goods, marine insurance and freight to the named destination port. Risk transfers to the buyer once goods are loaded, but the seller arranges and pays for transport and insurance.
Why It Matters
Buyers should confirm which Incoterm a quotation uses, since FOB and CIF pricing on the same product are not directly comparable without adjusting for freight and insurance.
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