Definition
Cost, Insurance and Freight is an Incoterm for sea transport where the seller pays the cost and freight to bring the goods to the destination port and also procures minimum marine insurance. Risk transfers to the buyer once the goods are on board at origin, even though the seller pays the freight.
Why it matters
CIF splits cost and risk at different points, which often confuses cost reconciliation and insurance claims. Forwarders need to track that the seller's freight prepaid status is reflected correctly on the documents.
How TIO handles it
TIO records the Incoterm and prepaid/collect status from the documents so charge reconciliation matches reality.
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