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In the world of international trade, CIF is a term that is often used in goods delivery contracts. CIF refers to a term that includes the cost of goods, insurance, and shipping (freight) from the seller to the buyer.


In this article, we will discuss the meaning and advantages of the CIF concept. By understanding these concepts, you will have a better understanding of international trade and the benefits offered by CIF.


If you have never carried out the process of importing and exporting goods, then you may be unfamiliar with the term CIF. CIF is the method used to process payments by exporters.


In other words, the exporter has an obligation to bear the costs of sending the goods to the destination country. Apart from that, the exporter is also fully responsible for the procurement of goods to be sent to the destination country.


If you send goods using CIF, then all risks that occur to the goods during the shipping process are the responsibility of the exporter. Please note that this process can be carried out if the importer is willing to pay more.


Make sure that the fees paid by the importer include the costs of loading and unloading the cargo. Also pay attention to the administration costs required for shipping goods. So that the payment process is in accordance with the price of the goods and other costs.


If you as an exporter already have an agreement to use the CIF goods delivery method. So, you can make payments for each goods delivery process that will be carried out.


The CIF method is one of the right choices to facilitate the export process. So the importer only needs to pick up the goods without having to take care of shipping costs. As long as the importer has paid shipping costs to the exporter.