CIF Cost, Insurance and Freight
In this Incoterms, the seller has the same obligations as under CFR but with the addition hat he has to procure marine insurance against the buyer´s risk or loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage. The CIF term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport. See Incoterms for a list of the eleven Incoterms. Practical Guide to Incoterms.