CIF vs FOB
Where CIF and FOB differ in who pays, where risk passes and who insures — two Incoterms® 2020 rules compared from the same data as the cost matrix.
Key differences
- Seller must insure — CIF: yes; FOB: no.
- Main carriage — CIF: seller; FOB: buyer.
- Insurance — CIF: seller; FOB: depends.
- Unloading at destination — CIF: depends; FOB: buyer.
Side by side
| Item | CIF | FOB |
|---|---|---|
| Transport mode | Sea and inland waterway only | Sea and inland waterway only |
| Risk passes | On board the ship at the port of shipment | On board the ship at the port of shipment |
| Packaging | Seller | Seller |
| Loading at origin | Seller | Seller |
| Export clearance | Seller | Seller |
| Pre-carriage | Seller | Seller |
| Main carriage (differs) | Seller | Buyer |
| Insurance (differs) | Seller | Depends |
| Unloading at destination (differs) | Depends | Buyer |
| Import clearance | Buyer | Buyer |
| Import duties | Buyer | Buyer |
| On-carriage | Buyer | Buyer |
3 of 10 cost items differ (rows in bold).
Which one fits your shipment?
Open the rule pages for the full cost table and notes: CIF and FOB. Or answer five questions in the rule chooser, which explains why each rule fits or does not.
Sources
Checked on .
- Export Development Canada — edc.ca
- Netherlands Chamber of Commerce (KVK) — kvk.nl
- UK Department for Business and Trade (business.gov.uk) — business.gov.uk
- International Chamber of Commerce — iccwbo.org
- US International Trade Administration — trade.gov
- Maersk (chart by Pilot Freight Services) — delivers.maersk.comsecondary
- Export Development Canada — edc.ca
- ICC Academy (International Chamber of Commerce) — academy.iccwbo.org