What is CIF terms of delivery in Exports and Imports?

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CIF Terms of Delivery - Easily expained


What is CIF terms of delivery? How does CIF terms work in international business? Who covers risk of goods under CIF terms?  Who covers insurance under CIF terms - Buyer or Seller?


Under CIF terms of delivery in export business, Cost Insurance and Freight included in the selling cost of goods.

What is ECGC and how does ECGC protect exporters_2 (1) I will explain CIF terms of delivery with a simple example. You are a Machinery seller situated in Mumbai, India. The buyer is situated in New York. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on CIF New York price of USD 5750. Here the selling cost of goods is USD 5750 CIF New York. You (the seller) arrange to carry the goods to Mumbai port and meet all expenses including customs clearance in Mumbai and pays the ocean freight or airfreight up to New York, by appointing a shipping line or airlines. In other words, all delivery expenses up to New York is borne by the seller.


Apart from the same, under CIF terms of delivery, Insurance of goods also must be arranged by you as a seller. Once reached the cargo in New York, the buyer takes delivery of cargo after customs clearance at his own cost after paying duties or tax if any.  Read also about CIP under Inco terms.

Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.


Under this article, CIF terms of delivery were explained.  Have you satisfied with this article about CIF terms of deilvery? Would you like to add more information about CIF terms of delivery?  Share your experience in handling export import shipments under CIF terms of delivery.


Comment below about this article - CIF terms of delivery in exports and improts. 




The above information is a part of Online international business guide course

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sudhakar: sir, please explain completely by drawing flowchart so it will be clearly understand as i am new to this topics thanking you sir sudhakar

Asish Kumar Saha: Dear sir, i would like to import only 20pcs. of LED lamp from Chaina, how can i get this and when will i pay for those Lamps if you clear the matter i will be obliged. Thanking you, Yours, Asish Kumar Saha

Tarun: Dear Sir, I wish to start Import of cookware and need your help with costing. Say I am importing cookware from Newyork on EXW terms, then how do I calculate the cost of bringing the goods to my warehouse in Mumbai? What percentage should I assign to the following costs? For example Cost: 100 Freight from sellers place to port: Insurance: Export custom charges: Sea freight: Import customs charges: CHA charges: Loading/Unloading charges: Port to my warehouse freight charges: Loading/unloading charges: Also, please add if I have missed any other costs. Your help will be highly appreciated. Thanks. Tarun

Tarun: Dear Sir, I wish to start Import of cookware and need your help with costing. Say I am importing cookware from Newyork on EXW terms, then how do I calculate the cost of bringing the goods to my warehouse in Mumbai? What percentage should I assign to the following costs? For example Cost: 100 Freight from sellers place to port: Insurance: Export custom charges: Sea freight: Import customs charges: CHA charges: Loading/Unloading charges: Port to my warehouse freight charges: Loading/unloading charges: Also, please add if I have missed any other costs. Your help will be highly appreciated. Thanks. Tarun

safiullah: It was extremely clear and help full illustration Would like to thank you sir who ever you are

Mouna Guru: Its really good article.I can get all the in formations that I need about export.

deepak agarwal: sir i want to import coated paper from china and indonesia i want to know cost other than cif price quoted by supplier thanx and regards deepak

Obaid Ahmad Khan: Hi My self Obaid Ahmad Khan Sir I will start our business just in import & export field so I wants to know more about imports & exports terms & condition under our Indian Government. also I wants to know whats the latest Formats of "Import Order Sheet" with payment term & condition for Import any Goods from any country to Our country India.

shahbaj ahmad: sir I want start our business export in fruit & vegetable. I want to know more about import & export terms & condition.also i want to know the latest format of condition for payments & safe mode. You also tell us what is the safe & easy way to follow the business.

SRI KALUVAMMA TRANSPORT: Cost, Insurance and Freight word formart is we have need

sharad gaikwad: Dear sir I want to Import Used Offset printing machine Make: AB Dick/Presstek Model: 4995A-ICS Onwner is John Wargo, Ph.D., MBA Graphtek Services, Inc. 300 Cedar Blvd., Suite B2 Pittsburgh, PA 15228 what is import excise duty of second hand machine

Jayprakash Yadav : . I have been following your website for past few days only and I can surely say that the topics are well explained. Can you suggest me some good books so that I can know a lot of things related to export credit insurance. I want to learn a number of things but for a want of not having suitable guidance, as the concepts are very complex and never ending, I have not been able to do justice with the time spent here in ECGC. If you can suggest me some ways to get better at my job and knowledge related to my job which I think will require a thorough understanding of a number of things related to import and export. I find reading from a printed version a lot more comfortable and easier to grasp. Kindly suggest me the approach to get a better perspective and knowledge of things happening in around in terms of Export Import. I will be so very grateful to you for your advice.

chintan jasani : Your site is very helpful. I have one question hope that you would answer it The cif cost is 4000 usd If I present smaller invoice at customs(3000usd). than I should pay duty for 3000USD only?

vikas: I would like to import some machinery from china of worth USD 760/piece CIF to chennai so what will be the further amount/ expenses that i have to bare to take delivery from custom department. Rgds; Vikas

Neha Soni : I would greatly appreciate if could help me with a few question about importing into India.The thing is, I wish to import SAMPLES of products that I wish to sell later worth USD 20 ( total price including shipping =USD 110) from Aliexpress into India. I am not sure how much customs/import would I have to pay. Please help me ! I have the following quick questions: 1.The CIF value of the 7 wallpaper rolls that I am ordering is $110 which comes out to be approx 7700 !!! Does this mean I will have to pay customs even though the value of product is only $20? 2. Since these rolls are SAMPLES , do the custom officers actually confirm some way whether or not a shipment is a SAMPLE? 3. Is there any paperwork required on my side to be shown to the custom if need arises when importing SAMPLES (letter of authorization etc.... I don't have an IEC) 4.Since the products have a value of $20, do I ask the seller to print this value in the invoice when importing as a "SAMPLE" or should they just mark the shipment as SAMPLE with no invoice/ free sample ( since per definition a SAMPLE is one that is provided free of cost) 5. what are commercial documents? would my seller on Aliexpress know it? I might be bothering you with my questions, but I have been trying to find these answers for quite sometime now.

Asif Qureshi: Dear Sir, Can you please explain term CIF India, my understanding is all expenses till Indian port includes indian custom clearance will be born by seller. rest freight and insurance of air or ship will be born by sellers. please help me to understand this..

Naeem: Firstly, I would like to say, your article seems to be very helpful to me. I truly appreciate the job you have done. Our company has planned to import Chinese 2 wheeler to trade ( resell ) in India, seller has agreed on FOB. I would like to know , how much import duty would be charged on the imported vehicle. Also, do I need to pay import duty if the vehicle imports to India on CIF?

Rajesh: Search anything relating to Import or Export and we reach to your site. A wonderful site. A treasure! Simple language and clear conceptual expression adds confidence. Can you find time and explain the words "the information provided here is part of Who conducts this training? Is any certificate issued?

mohamed ali : I Mohamed ali starting self employment bussiness, importing A4 paper from Thailand around cost is 1,50,000 Rs/- what could be customes charges i have to pay to receiving in Airport hyderabad.

Sam Sohil : I have few question regarding importing a digital printing machine to India (Mumbai) from Japan or South Korea.

Abram Geneapril : We are kdji from Kimberley IN SOUTH AFRICA apparently we in connections with two companies from Idian since we want to purchase machinery from. Could you please help me with information and criteria to follow toward the importing of machinery?

Mohd Rahimuddin: Dear Sir. Thanks for your explanation about CIF terms. my question is in an export invoice when terms is CIF . freight and insurance value to be mention in the same or separate . for example actual invoice value is 500 USD , freight is 50 USD and insurance is 10 USD . at time of filling Shipping bill what is the invoice value 560 USD or 500 only ? My another query is some time invoice include freight and insurance example 500 USD is the invoice value. at the time of filling shipping bill what is the value and what freight and insurance to be take ? Please reply Your help will be highly appreciated. Thanks. Mohd Rahimuddin

May: Dear Sir CIF - Please advise seller or buyer to clear custom at import port/airport? Your urgent reply would be appreciated

ravikaroriya: What is aexim

Manchuvaru R Reddy: Please explain what is the procedure in exporting dry fruits, nuts, spices, masala, seeds, exotic fruits, sauces, spreads, paste, vinegar, organic beverages, honey & other Agro foods.

Sonne Gowda M : Hello sir I'm looking to export frozen chicken and packed eggs to all over world. I'm getting some enquiries for the same. I'm not understand some words like CIF, FCL etc. They tell payment way by LC. Is letter of credit will really works, is there any fraud in this way of payment. Please specify. Thank you

Sheikh Hamid: Sir, I am having IEC Code . Very soon I am getting order from UAE for Vehicle Spare Parts. I Intend to despatch it from Navi Mumbai Port through Sea Cargo. in 20 Feet Container. I would like to know the procedure And would like to have contact no. of reliable C&F Agents who can advice / guide me for the procedures of preparing documents & Exporting.

Saleem: @Manchuvaru you need to get 1st seperate license from agro department to export spices and IEC number..once you get this your 80% of your export issues solved

KETAN: who shall bear the following charges - 1. Imbalance charges 2. surcharges 3 Container cleaning charges 4. DO Charges 5. special request charge

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