What Is CIF (Cost, Insurance, and Freight)?
Quick Definition: CIF (Cost, Insurance, and Freight) means the seller covers the product cost, ocean freight to the destination port, and marine insurance. The buyer handles import customs, duties, and inland delivery.
CIF in China Sourcing
When a factory quotes "CIF New York" or "CIF Rotterdam," the price includes:
- Product manufacturing cost
- Inland transport to origin port in China
- Export customs clearance
- Ocean freight to your destination port
- Basic marine cargo insurance (typically 110% of invoice value)
When to Use CIF
- First-time importers: CIF simplifies logistics — the factory arranges shipping and insurance.
- Small orders (LCL): Factories often get better LCL rates than individual buyers.
- You don't have a freight forwarder: CIF eliminates the need to arrange ocean freight yourself.
CIF Risks to Watch
- Opaque freight costs: Factories may mark up freight charges. Compare CIF quotes against FOB + your own freight estimate.
- Minimum insurance: CIF insurance is basic — it may not cover all damage scenarios. Consider supplemental insurance.
- Less control: You can't choose your carrier or routing, which can affect transit time and service quality.
Need Help with China Sourcing?
Our team handles the complexity of international trade terms, logistics, and factory negotiations so you don't have to.
Send Inquiry