A more thorough explanation:

Definition: CIF destination is a term used in mercantile contracts that outlines the responsibilities of the buyer and seller regarding the delivery, payment, and risk of loss of goods. It means that the seller must clear the goods for export, arrange for transportation by water, procure insurance against the buyer's risk of damage during carriage, and pay the costs of shipping to the port of destination. The seller's delivery is complete when the goods are loaded on the receiving ship while docked in the port of shipment. This term is used only when goods are transported by sea or inland waterway.

Example: A company in China sells 1000 units of a product to a company in the United States for $10,000 CIF destination. This means that the price includes the cost of the goods, insurance, and freight to the named destination in the United States. The seller is responsible for clearing the goods for export, arranging for transportation by water, and paying the costs of shipping to the port of destination. The buyer is responsible for paying any additional costs, such as customs duties and taxes, once the goods arrive at the port of destination.

Explanation: In this example, the seller is responsible for all the costs associated with shipping the goods to the United States, including insurance against damage during carriage. The buyer only needs to pay the agreed-upon price of $10,000, and the seller takes care of the rest. Once the goods arrive at the port of destination, the buyer is responsible for any additional costs, such as customs duties and taxes, before they can take possession of the goods.