CIF (Cost, Insurance and Freight)
CIF means the seller pays cost, insurance and freight to the destination port; the buyer then covers import duty, VAT, clearance and onward delivery.
Last reviewed 16 July 2026.
CIF (Cost, Insurance and Freight) is a sea-freight Incoterm under which the seller arranges and pays for ocean freight and a minimum level of marine insurance to the named destination port. The buyer takes over once the goods arrive, handling import clearance, duty, VAT and inland transport.
Under CIF the supplier's price already bundles the main freight and insurance, so the headline number is higher than an equivalent FOB quote — but it is closer to a delivered-to-port cost. Note that risk still passes to the buyer when the goods are loaded at origin, even though the seller pays the freight; the insurance the seller buys is the mechanism that covers you in between.
CIF is convenient for buyers who would rather not arrange ocean freight themselves, but it gives you less control over routing, carrier choice and the level of insurance cover.
How it affects your landed cost
With CIF, freight and insurance to the UK port are already in the supplier's price, so your remaining landed-cost additions are UK duty, import VAT, clearance and inland delivery. Importantly, UK customs value is normally based on the CIF value, so import duty is charged on that goods-plus-freight-plus-insurance figure — and import VAT is then charged on a wider base still: the customs value plus that duty plus any UK-side incidental costs. Our calculator accounts for both when it works out your per-unit cost.
Calculate your landed costCIF (Cost, Insurance and Freight) — FAQ
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