CIF Full Form is Cost Insurance and Freight. This refers to the trade term where the seller, manufacturer, or sender of goods bears the cost, freight, and insurance expenses. In shipment, CIF is a part of the contract of sale of goods among several other contracts.
CIF is applicable to all shipments on water and on land. Whenever goods are bought and transported through ships, buyers have to make sure that the goods are shipped under CIF terms. This indicates that the insurance and freight charges are added to the actual cost of the goods to be shipped. Due to the insurance factor, CIF is very apt for International shipments.