What is CIF terms of delivery in Exports and Imports? Posted on 06 April 2023 Category : Inco Terms The Exporter and Importers may use latest version of Inco Terms 2020 for movement of their goods. Click here to read the content of Incoterms 2020, easily explained The information provided here is part of Export import business Course online 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. 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. The Exporter and Importers may use latest version of Inco Terms 2020 for movement of their goods. Click here to read the content of Incoterms 2020, easily explained Explaining DDP in simple language under Incoterms 2020 DAP, Simply explained under Incoterms 2020 Describe DPU under Incoterms 2020 How to define CIP under Inco Terms 2020 What does CPT mean under Inco Terms 2020? Meaning of FCA under Incoterms 2020 EXW,Ex Works under Inco terms 2020 Inco Terms, Different stage where risks and costs transfer from Seller to Buyer Parties involved to use Incoterms directly and indirectly Is it necessary to use trade mark of Incoterms under Sale contract Mention year of Inco Terms under Sale contract Inco Terms and Sale Contract between buyer and seller Inco Terms 2020 Rules for Delivery of Goods Buyer or Seller? Who pays Insurance under DAP Inco terms? Under FCA Inco terms, Insurance is paid by buyer or seller? Under EXW Ex works, who arranges Insurance? 04 Categories of Inco Terms 2020 D Category of Delivery terms under Incoterms 2020 CIP terms of movement, Unloading goods by Buyer or 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 Other information about Export import tutorial Easy tips while deciding terms of delivery in export business: What is DDP terms in an export Import Business? 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Click here to know India Trade Classification(ITC) Pre shipment bank finance to suppliers for exports through other agencies Types of export containers Measurement of export containers Export Import Policy of India 2015-2020 MEIS, Merchandise Exports from India Scheme SEIS, Service Exports from India Scheme Merge your Commercial Invoice and Packing List for all your future exports Export procedures and documentation Refund of Input Tax Credit (ITC) of GST, FAQ Migration procedures for existing VAT payers to GST online in India Refund of GST paid in India, FAQ 4 Conditions when applying for refund of Input Tax Credit (ITC) under GST Enrolling an existing VAT taxpayers at the GST Common Portal Difference between types of goods and services and types of GST 4 types of Goods and Services in India for GST rate Difference between IGST on International go Comments sudhakar: On 07 February 2014 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: On 17 May 2014 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: On 09 June 2014 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: On 09 June 2014 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: On 01 October 2014 It was extremely clear and help full illustration Would like to thank you sir who ever you are Mouna Guru: On 19 March 2015 Its really good article.I can get all the in formations that I need about export. deepak agarwal: On 10 April 2015 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: On 30 May 2015 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: On 26 June 2015 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: On 29 June 2015 Cost, Insurance and Freight word formart is we have need sharad gaikwad: On 05 July 2015 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 : On 08 July 2015 . 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 : On 14 October 2015 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: On 30 October 2015 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 : On 18 April 2016 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: On 11 May 2016 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: On 05 August 2016 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: On 06 August 2016 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 : On 10 August 2016 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 : On 10 August 2016 I have few question regarding importing a digital printing machine to India (Mumbai) from Japan or South Korea. Abram Geneapril : On 10 August 2016 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: On 08 September 2016 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: On 19 October 2016 Dear Sir CIF - Please advise seller or buyer to clear custom at import port/airport? Your urgent reply would be appreciated ravikaroriya: On 25 December 2016 What is aexim Manchuvaru R Reddy: On 01 February 2017 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 : On 07 February 2017 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: On 21 February 2017 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: On 02 May 2017 @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: On 30 November 2017 who shall bear the following charges - 1. Imbalance charges 2. surcharges 3 Container cleaning charges 4. DO Charges 5. special request charge ganesh: On 24 January 2018 what is full form of CIF Pralin Prasad: On 30 December 2021 Hello Sir, in CIF export when can we enter sales in our accounts ? Right after ship leaves the port (BL issued) or ship reaches destination and goods delivered to customer in the port ? Please advise.