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Cost, Insurance and Freight
Group C · Main carriage paid · Sea & inland waterway only
The seller delivers on board at the port of shipment, pays ocean freight to the named destination port, and buys marine insurance for the buyer's benefit. Under Incoterms 2020 the required minimum remains Institute Cargo Clauses (C) at 110% of contract value.
Where risk transfers
On board the vessel at the port of shipment.
Seller's cost & riskBuyer's cost & risk
Seller pays
- ▪Packaging
- ▪Export clearance
- ▪Loading
- ▪Ocean freight
- ▪ICC (C) insurance at 110%
Buyer pays
- ▪Discharge (unless in freight contract)
- ▪Import clearance and duties
- ▪Any top-up insurance
Insurance
Mandatory minimum cover: Institute Cargo Clauses (C), 110% of contract value, in the contract currency.
Customs
Export clearance: Seller
Import clearance: Buyer
Use it when
Traditional letter-of-credit commodity trades on sea freight.
Watch out
ICC (C) is a named-perils policy and is thin cover. If the cargo is valuable, negotiate ICC (A) explicitly or use CIP.