A pricing idiom that shows the price of products, insurance, and cargo is added in the pricing quote.

The seller needs to pay the costs, and freight plus insurance to bring the merchandise to the port of destination. However, the risk is transferred to the customer once the products are loaded on the ship.

Importers usually buy CIF whenever they’re new in global trade, or they have very modest freight. It is a more comfortable method of shipping as sellers don’t have to take care of cargo or other shipping details, but the customer has to realize that he/she is most likely paying a higher price to get the product than it should. The supplier is responsible for organizing the cargo and insurance details. Managing freight might be too detailed or complicated for a newbie importer. Therefore they just let their supplier deliver the merchandise to them. It is an easy way of bringing the freight from point A to point B without even coping with particulars but with a higher price. Why could CIF cost you more? The seller will often work with his very own forwarder and indicate the price supplied from his forwarder as an added way of making a profit.

The term CIF is used for ocean cargo only. However, in practice, many importers and exporters still use the term CIF from the air freight.

Cost, Insurance, and Freight (CIF) is an Incoterm (International Commercial Terms) used in international trade to define the terms of a sale between a buyer and a seller. It is used to specify the responsibilities of the buyer and the seller in relation to the transportation of goods from the seller’s location to the buyer’s location.

In the context of Amazon, CIF may be used in the sale of goods on the Amazon marketplace or for transactions conducted directly with Amazon. It is typically used when the seller is responsible for arranging and paying for the transportation of goods from their location to the buyer’s location.

Under the CIF Incoterm, the seller is responsible for the following:

• Cost: The seller is responsible for paying the cost of the goods, including any taxes or duties that may be due.
• Insurance: The seller is responsible for purchasing and maintaining insurance on the goods until they are delivered to the buyer’s location. This is meant to protect against any loss or damage to the goods while they are in transit.
• Freight: The seller is responsible for arranging and paying for the transportation of the goods from their location to the buyer’s location. This includes any associated costs, such as shipping fees and port charges.

The buyer is responsible for the following:

• Unloading: The buyer is responsible for unloading the goods from the transport vehicle when they arrive at their location.
• Clearance: The buyer is responsible for clearing the goods through customs at their location.
• Payment: The buyer is responsible for paying the agreed-upon price for the goods, as well as any additional costs incurred under the CIF Incoterm (such as insurance and freight charges).

There are a few key advantages to using CIF as an Incoterm. One of the main advantages is that it shifts the responsibility for the transportation of goods from the buyer to the seller. This can be especially useful in situations where the buyer does not have the resources or expertise to handle the transportation of goods themselves.

Another advantage of CIF is that it provides a high level of protection for the goods while they are in transit. The seller is responsible for purchasing and maintaining insurance on the goods, which can provide a level of protection against loss or damage.

There are also a few potential drawbacks to using CIF as an Incoterm. One of the main drawbacks is that it may increase the overall cost of the transaction for the buyer. The seller is responsible for paying for the transportation of the goods and for purchasing and maintaining insurance on the goods, which can add to the overall cost of the sale. Additionally, the buyer is responsible for unloading the goods and clearing them through customs at their location, which can also incur additional costs.

In summary, Cost, Insurance, and Freight (CIF) is an Incoterm used in international trade to define the terms of a sale between a buyer and a seller. In the context of Amazon, CIF may be used in the sale of goods on the Amazon marketplace or for transactions conducted directly with Amazon. Under the CIF Incoterm, the seller is responsible for the cost, insurance, and freight of the goods, while the buyer is responsible for unloading the goods and clearing them through customs at their location. There are a few key advantages to using CIF, such as shifting the responsibility for the transportation of goods from the buyer to the seller and providing a high level of protection for the goods while they are in transit. However, there are also a few potential drawbacks, such as the possibility of increased costs for the buyer and the potential for additional responsibilities for the buyer in terms of unloading and customs clearance.