c.i.f.

Way to value a commodity. Many countries value their imports on this basis, whereas exports are usually valued f.o.b. (free-on-board). For balance of payments purposes, figures are usually adjusted to include the freight and insurance costs.

The terms of c.i.f. stipulate that goods are transported at the seller's risk until they reach their destination. The documents that give title to the goods are sent to the purchaser, who pays the purchase price on receipt of the documents. The purchaser may claim on the insurance if the goods do not subsequently arrive or are damaged upon arrival.