A CIF contract of sale includes the cost of the goods, insurance, and freight to the destination in the contract price. The seller’s obligation is fulfilled once the merchandise is delivered to the shipper, and relevant documents including the bill of lading, invoice, insurance policy, and payment receipt for freight are forwarded to the buyer.
Cost, Insurance, and Freight (CIF) is a trade term used in international shipping to indicate that the seller covers the cost, insurance, and freight charges up to the destination port.
