CIF (Cost, Insurance, Freight)

Incoterm where the exporter pays cost of goods, insurance, and ocean freight to the destination port. Common for door-to-warehouse FBA shipments.

Definition

CIF — Cost, Insurance, Freight — is an International Chamber of Commerce Incoterm where the exporter is responsible for the cost of goods, marine insurance, and ocean freight all the way to the destination port. Risk transfers to the buyer once goods are loaded, but the exporter has already paid for their journey.

CIF value composition

CIF value = FOB value + marine insurance premium + ocean freight

For a shipment declared at FOB USD 10,000 with USD 500 insurance and USD 1,200 freight, CIF is USD 11,700.

When Indian exporters use CIF

Customs treatment

Even if you invoice a buyer on CIF terms, the Indian shipping bill can still declare the FOB-equivalent value for RoDTEP calculation. Discuss with your customs broker — the shipping bill declaration and the commercial invoice can differ for legitimate reasons, provided documentation defends the difference.

For Indian FBA exporters

Amazon FBA shipments often use door-to-warehouse consolidators that quote CIF or DDP (Delivered Duty Paid). Understand what your commercial invoice terms are vs what your shipping bill declares — a mismatch surfaces during EDPMS reconciliation as a value discrepancy that has to be explained.

For a broader look at reconciliation mechanics, see how to reconcile Amazon settlements with your bank credits.

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