Legal Dictionary of Pakistan

cost, insurance, and freight

A term in a quoted sales price indicating that the price includes the cost of the goods as well as freight and insurance charges to the named destination. 0 During shipment, the risk of loss is on the buyer. But the seller must provide insurance at a specified amount (usu. at a minimum of 110'0). - Abbr. C.I.F. Cf. FREE ALONGSIDE SHIP; FREE ON BOARD.'-C.i.f' is a mercantile symbol that is commonly used in international sales contracts. It is defined by section 2-320 of the UCC and by the Incoterms - 1953 and the Revised American Foreign Trade Definitions - 1941. Under all of these definitions the letters 'c.i.£' 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 § 2-320:01 (1984).