COST, INSURANCE, AND FREIGHTcost, insurance, and freight. A mercantile-contract term allocating the rights and duties of the buyer and the seller of goods with respect to delivery, payment, and risk of loss, whereby the seller must (1) clear the goods for export, (2) arrange for transportation by water, (3) procure insurance against the buyer’s risk of damage during carriage, and (4) pay the costs of shipping to the port of destination. ? The seller’s delivery is complete (and the risk of loss passes to the buyer) when the goods are loaded on the receiving ship while docked in the port of shipment. This term is used only when goods are transported by sea or inland waterway. ¡ª Abbr. CIF; C.I.F. Cf. COST AND FREIGHT; FREE ON BOARD. [Cases: Sales 77(2). C.J.S. Sales ¡ì¡ì 96¨C98.]
¡° ¡®C.i.f.¡¯ is a mercantile symbol that is commonly used in international sales contracts. It is defined by section 2¨C320 of the UCC and by the Incoterms ¡ª 1953 and the Revised American Foreign Trade Definitions ¡ª 1941. Under all of these definitions the letters ¡®c.i.f.¡¯ mean that the price covers the cost of the goods, the cost of insuring them for the benefit of the order of the buyer, and the cost of carrying them to the named point, almost always the destination. Like the other mercantile symbols, the meaning of ¡®C.I.F.¡¯ may be varied by agreement.¡± William D. Hawkland, Uniform Commercial Code Series ¡ì 2-320:01 (1984).
CIF destination. A contractual term denoting that the price includes in a lump sum the cost of the goods and the insurance and freight to the named destination.
¡ª Also termed C.I.F. place of destination. [Cases: Sales 77(2). C.J.S. Sales ¡ì¡ì 96¨C98.]