Advantages of CIF terms for Buyer

07 benefits for importer when contracting CIF delivery terms


Okay, now we can discuss about the merits under CIF terms of delivery for an importer in export import trade.  How do CIF terms help the buyer and what are the advantages?

Let us discuss the advantages one by one:

01. One of the advantages under CIF for buyer is that the seller pays the cost till the named destination port.  So, the importer is free from paying costs till the named place contracted with the exporter in international business.



02. The pre carriage process is undertaken by the exporter under CIF delivery rules and importer does not want to experience either the cost or risk of pre carriage in international business. This is a merit for buyer under CIF terms of delivery.


03. Another advantage under CIF for importer is that he does not want to know and experience the rules and regulations of exporting country on export customs clearance, documentation, customs clearance and export taxes if any as the exporter takes care of them under CIF delivery rules in export import trade.


04. Under CIF delivery terms in export import business, once the goods arrived at importer’s country at the named place contracted, the further movement of goods to his premises is undertaken by him.  So he can monitor the shipping tracking till arrival of goods to him. This is another advantage for importer when moving goods on CIF basis.


05. One of the other advantage under CIF terms for importer is that  the seller is responsible to undertake export customs clearance and taxes if any. The buyer (importer in export import trade) is free from facing port congestion, vessel shortage, vessel cancellation etc. in exporter’s country.


06. Since the exporter takes care of minimum insurance on movement of goods under CIF terms of delivery, the importer is free from covering insurance. This is an advantage for buyer under CIF terms.   However,  if all risks cover is required, the importer and exporter may mutually agree under their sale contract.

Hope, the above information about the upper hands to importer under CIF terms helps you to strengthen your knowledge in Inco Terms 2020.

Share below your comments in handling CIF terms of delivery and its positives for buyer.

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