CIF (Cost, Insurance and Freight)

CIF is an Incoterm (ocean/inland-waterway) under which the seller pays the cost of the goods, marine insurance, and freight to the named destination port; risk passes to the buyer once the goods are loaded at origin. For US imports, the dutiable customs value is generally the transaction value (typically the FOB-equivalent price), while the added freight and insurance in a CIF price feed landed cost and the Harbor Maintenance Fee base. Example: on a CIF $10,000 ocean shipment, duty is assessed on the goods value, but your true landed cost includes the freight and insurance baked into the CIF price. It matters because confusing CIF with the dutiable value can over- or under-state your duty.