CIF
Acronym for: Cost, Insurance, Freight
Incoterm where the seller pays cost, insurance and freight to the destination port; buyer handles customs clearance.
Detailed Explanation
CIF (Cost, Insurance, Freight) is the recommended Incoterm for new importers. The seller delivers cargo to the destination port with ocean freight and cargo insurance included. The buyer handles only customs clearance, duty/VAT payment, and local delivery from port. CIF simplifies the supply chain but adds 3-5% to the FOB price. Common routes: CIF Hamburg, CIF Rotterdam, CIF Long Beach, CIF Santos. See also FOB, DDP.
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Related Terms
Incoterm where the seller delivers goods on board the vessel at the port of origin; buyer pays freight and insurance.
Incoterm where the seller handles all costs including duty, VAT, and final delivery; buyer does nothing.
Minimum quantity required to place an order; typically one 40HQ container (~430-460 kW) for Tier-1 factories.
OEM = factory makes your branded product; ODM = factory designs and builds based on your spec.
Bank-issued payment guarantee commonly used in international trade to protect both buyer and seller.