What is CIF Incoterms 2020?
CIF - Cost insurance and Freight. Incoterms explained. Incoterms 2020 dictates that the CIF Incoterm, or “Cost, Insurance and Freight”, is exclusive to maritime shipping. Under CIF, the seller is responsible for the cost and freight of bringing the goods to the port of destination specified by the buyer.
How does Incoterms 2020 work?
Incoterms 2020 allows for own means of transport by the buyer in the FCA rules and by the seller in the D rules. 6. FCA and Bills of lading According to FCA, part B4, ‘The buyer must contract or arrange at its own cost for the carriage of the goods’. There is a gap in delivery between FCA and FOB.
Is CFR Incoterm better than CIF?
In common practice, the CFR Incoterm is often preferred by buyers if they are able to secure better cargo insurance coverages. This is because unlike CIF, insurance isn’t a seller’s obligation under CFR and can also be acquired by the buyer.
What is a CIF shipping term?
The CIF shipping term stands for ‘Cost, Insurance, and Freight’. CIF is the type of Incoterms (International Commercial Terms) used for sea freight and inland waterway transport of bulk cargo that’s not in containers.