CIFInsuranceNegotiable
Cost, Insurance and Freight (CIF) Value Calculation Note
CIF (Cost, Insurance and Freight) is an Incoterm where the seller pays costs, insurance, and freight to deliver goods to the destination port. The insurance element is mandatory and typically 110% of the CIF value at a rate of 0.3-1.0%.
Ad Valorem
Category:Basic Shipping FeeChina Export Local ChargesDestination Import Charges
Applies to:
FCLLCLAirRailCourierRoadFBAAs Request
Typical Cost Range
0.1%–1%
of customs value (CIF)
CIF insurance rate: 0.3-1.0% of cargo value. High-value or fragile cargo: 0.5-2.0%. Minimum premium: $50-$100.
Who Pays?
Shipper (When CIF, DAP)
Consignee (When EXW, FOB)
Negotiability
Negotiable — discuss with your freight forwarder.
CIF insurance rates are competitive. Large shippers can negotiate 0.1-0.3% rates. CIF is most commonly used with letters of credit.
Adjustment Frequency
MonthlyWeeklyFixed
Current rate reviewed: Per shipment
Chargeable Unit
% of CIF
Formula / Calculation
CIF = Cost of Goods + Freight + Insurance Premium (110% of CIF × Rate)CIFIncotermsinsurancemarine insurancecost insurance freight
Frequently Asked Questions
What is the difference between CIF and FOB?
Under FOB, the buyer pays freight and insurance. Under CIF, the seller pays cost, insurance, and freight to the destination port.
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