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Logistics guide

CFR and CIF Organic Product Supply from India

How CFR and CIF supply work for organic products from India, covering the insurance difference between them, when risk transfers, and why neither is a delivered-duty term.

Organic ingredient cargo prepared for international shipment
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Growsian Agro coordinates CFR and CIF supply for importers, manufacturers, distributors, wholesalers and private-label brands buying certified organic products from India. The objective is not just to move a packed product. It is to protect product integrity, align contractual responsibility and prevent avoidable delays or damage.

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CFR and CIF explained

CFR (Cost and Freight) and CIF (Cost, Insurance and Freight) are sea-transport Incoterms rules in which the seller arranges and pays the main-carriage freight to the named destination port. The difference between them is insurance: under CIF the seller also takes out cargo insurance for the buyer; under CFR it does not.

The key difference: insurance

Under CFR, the seller pays the freight to the destination port but does not insure the goods in transit — the buyer bears the transit risk. Under CIF, the seller additionally provides cargo insurance for the buyer’s benefit. In both rules, risk still passes to the buyer when the goods are on board at origin, even though the seller pays the freight.

Not a delivered-duty term

CFR and CIF are not “delivered” terms. The seller’s freight obligation ends at the destination port; import clearance, duties, taxes and onward delivery remain the buyer’s responsibility. Do not treat CIF as delivery to the buyer’s door.

Naming and version

A CFR or CIF quotation must state the named destination port and the Incoterms version, for example “CIF [named port], Incoterms 2020”. Where insurance matters, see cargo insurance and transit risk, and compare with FOB supply.

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