Glossary

Cost, Insurance and Freight (... named port of destination). A trading term used in the sale of goods to denote that the price includes the main freight and marine insurance costs to port of destination.
The seller/exporter/manufacturer clears the goods for export and is responsible for delivering the goods past the ship's rail at the port of shipment (not destination). The seller is responsible for paying for the costs associated with transport of the goods to the named port of destination. However, once the goods pass the ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.
The seller is also responsible for procuring and paying for marine insurance in the buyer's name for the shipment.
The Cost and Freight term is used only for ocean or inland waterway transport.
The "named port of destination" in Cost and Freight and all "C" terms is domestic to the buyer.
Normal payment terms for Cost and Freight transactions include cash in advance, open account, and letters of credit.