CIF (Cost, Insurance & Freight)

CIF (Cost, Insurance, and Freight) offers textile buyers a convenient all-in price that covers the goods, ocean freight, and marine insurance to the destination port. When a supplier quotes "CIF Los Angeles USD 3.20/meter," that single figure includes everything needed to get the fabric to LA port—simplifying budgeting and supplier comparison.

The convenience comes with an important caveat that catches some buyers off guard: despite the seller paying for freight and insurance, risk transfers to the buyer when goods load onto the vessel at the origin port, not when they arrive at destination. This means if cargo is damaged mid-ocean, the buyer—not the seller—must file the insurance claim. The seller has fulfilled their obligation by arranging the insurance; using it becomes the buyer's responsibility.

Under CIF terms, the seller handles export clearance, books ocean freight, and procures marine insurance meeting minimum standards (typically Institute Cargo Clauses C covering 110% of CIF value). The seller provides the bill of lading, insurance certificate, and standard shipping documents.

The buyer's role begins at the destination port: paying for unloading, handling import clearance, arranging inland transportation, and filing any insurance claims if problems arise. Many buyers request upgraded insurance coverage (ICC A instead of ICC C) for broader protection, which the seller can arrange at additional cost.

CIF works well for buyers who prefer delivered pricing without managing shipping logistics, particularly those new to importing or placing smaller orders where negotiating freight rates offers little advantage. It also simplifies cost comparison between suppliers since all quotes include delivery to the same destination.

The key consideration is understanding where responsibility truly lies. CIF means the seller arranges shipping and insurance, but the buyer bears the risk from the moment goods leave the origin port.