CIF

Cost, Insurance, and Freight — an Incoterms rule (ICC Incoterms 2020) specifying that the seller is responsible for the cost of goods, ocean freight to the named destination port, and marine insurance covering minimum coverage (110% of invoice value per Institute Cargo Clauses C). Risk transfers from seller to buyer when goods are loaded aboard the vessel at the port of origin — despite the seller paying freight and insurance to destination. The buyer is responsible for: import customs clearance, import duties and taxes, inland transport from destination port, and any additional insurance desired. CIF is one of the most commonly used Incoterms for ocean shipments of industrial goods from Asia and Europe to Mexico and LATAM. CIF price enables the buyer to easily compare landed cost between suppliers (since freight and basic insurance are included). Key caveat: CIF risk transfers at the port of origin, not destination — if goods are damaged during ocean transit, the buyer must file the insurance claim (though the seller paid for the policy). For rubber imports to Mexico: typical CIF Manzanillo, CIF Veracruz, or CIF Lazaro Cardenas. Per ICC Incoterms 2020 — CIF applies only to sea and inland waterway transport.