Trade glossary · measurement

CIF

Also known as: Cost, Insurance and Freight

Cost, Insurance and Freight — a valuation rule for imports that includes the cost of goods plus international shipping and insurance.

CIF is the standard for import valuation in most national statistics. The CIF/FOB gap explains part of why exports and mirror imports never match exactly: the importing country's reported value is FOB plus freight, while the exporting country's is FOB only. The gap typically runs 3–10% depending on distance and product weight-to-value.

Examples

  • A consignment of crude oil exported FOB at $80M might be reported CIF at $84M by the importer.
  • Heavy commodities (ores, steel) have larger CIF/FOB gaps than light high-value goods (electronics).

Related terms

FOB
Free On Board — a valuation rule for exports. Includes the cost of goods up to the point of loading at the exporter's port; excludes international freight and insurance.
Mirror trade statistics
Comparing one country's reported exports to a partner against the partner's reported imports from the same country. CEPII BACI reconciles the two using a weighted estimator.