This is a term used in the international sale of goods. CIF specifies delivery terms and sets out the obligations of the seller and buyer respectively. CIF is, thus, only a part of the sale contract that pertains to delivery terms.
The norm is for the buyer and seller to rely on the International Commercial Terms also known as Incoterms prepared by the International Chamber of Commerce, ICC. Incoterms reflect current trade custom and practice and, it applies only to seaborne transportation of goods.
The CIF seller must arrange and bear cost of carriage of goods, marine insurance, customs clearance. All these costs will form part of cost of goods to the buyer.
Read more at the Logistics and Trade Blog here.
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