Cost, Insurance and Freight
Incoterms® 2020 · Morocco Guide
CIF is the most used Incoterm for imports into Morocco, especially from Asia. The seller pays sea freight and takes out minimum marine insurance to the port of destination. Important: risk transfers to the buyer upon shipment at the origin port, despite the seller paying freight.
Risk transfer
Risk transfers to the buyer once goods are on board the vessel at the port of shipment — even though the seller pays freight.
Seller's obligations
- Deliver goods on board the vessel at port of shipment
- Handle export customs clearance
- Pay sea freight to destination port
- Take out minimum marine insurance (Institute Cargo Clauses C)
- Provide bill of lading and insurance policy to buyer
Buyer's obligations
- Pay the agreed purchase price
- Handle import customs clearance in Morocco
- Pay customs duties and VAT on import
- Organize transport from destination port
- Take out additional insurance if needed
When to use CIF?
CIF is preferred by buyers who want an all-inclusive price covering freight to the Moroccan port, without managing sea logistics. Widely used for imports of raw materials (steel, plastics, chemicals) and capital goods from China, India and Europe.
🇲🇦 CIF in Morocco
Moroccan customs (ADII) values goods on a CIF basis for calculating import duties. CIF value serves as the taxable base — customs duties, VAT and other taxes are calculated on CIF value. It is therefore essential to properly document the CIF value in the commercial invoice.
FAQ
What is the difference between CIF and CIP?+
CIF is reserved for sea transport and includes minimum insurance (Clauses C). CIP applies to all transport modes and requires maximum insurance coverage (Clauses A). CIP is preferred for multimodal and containerized transport.
Can the CIF seller choose any shipping company?+
Yes, under CIF the seller freely chooses the shipping company. The buyer should verify that the vessel and company are accepted by their insurer and bank (in case of letter of credit).