CIF Incoterms 2020: Meaning & Explanation

CIF - Cost, Insurance and Freight (named port of destination)

The meaning of it is that the delivery is completed for the supplier when the product came on board the vessel, products have been insured by the supplier, and the vessel was hired by him to transport the goods to the destination port, which is established in the agreement. CIF is intended only for transporting goods by sea or inland waterway. Supplier pays export duty, packaging the goods and transportation of the cargo to the port, loads the goods on board, hires and pays the ship, insures the goods and provides the relevant documentation. Recipient unloads the vessel, pays import duty, relevant certificates, licenses, etc., delivers the goods to the point set in the agreement. CIF is designed to transport goods in bulk or in containers, and also for transportation of heavy equipment.