CIF Terms, or Cost, Insurance, and Freight, is a shipping agreement commonly used in international trade. Under CIF, the seller is responsible for the costs of transporting goods, including insurance and freight charges, until the goods reach the buyer's designated port. This means the seller takes on the risk and expense of shipping until the goods are delivered. In a CIF agreement, the seller must provide insurance coverage for the goods during transit. This ensures that if any damage or loss occurs while shipping, the buyer is protected. CIF is often favored for its clarity in defining responsibilities between the seller and buyer.