What is CIF (CIF Colombo) ?

Post by **Neo** » Wed Sep 12, 2012 5:12 am

Again another shipping term CIF. If you are interested in import/export industry, you must be familiar with these terms.
CIF means Cost Insurance Freight. If your items are going to a knows destination such as Rotterdam, The Netherlands, then if you mark your price as CIF US$1000, that means it includes the cost of the items, insurance fee and friend charges of the item until it reaches Rotterdam harbour.

From there the customer has to clear it by paying clearing charges and custom duty.

If you are buying a vehicle from Japan for example, the price of a vehicle is usually given in CIF value. When you pay that, then your vehicle will reach Colombo harbour and from there you need to clear it by paying taxes, etc...

Hope this little guide will help someone!

Have a look at FOB here.
https://robot.lk/viewtopic.php?f=13&t=3516