The acronym CIF (Cost, Insurance and Freight) corresponds to another of the Incoterms used for transport by ship, either by sea or inland waterway. They refer to the seller’s obligations (cost, insurance and freight) to the named port in the country of destination, where the responsibility and costs of the goods are transferred to the buyer until their final destination.
Although this term is very similar to the CFR Incoterm, they differ in that in this case the seller is also responsible for the insurance during international transport, which means that the moment in which the buyer begins to take responsibility for the goods coincides with the moment in which he is responsible for the expenses generated up to his facilities.
When we purchase a product from a supplier in China under CIF Barcelona conditions, for example, the seller is responsible for inland transport in China, international transport, customs export formalities and insurance of the goods to the port of Barcelona. Once there, the buyer is responsible for the costs of handling the goods at the port, inland transport to the buyer’s own facilities, insurance of the goods and import customs formalities.
Do not hesitate to ask any questions you may have.
Below is a list of the entries:
– EXW
– FCA
– FAS
– FOB
– CFR
– CIF
– CPT
– IPC
– DAT
– DAP
– DDP
If you want to import from China, do not hesitate to contact us without obligation.
