When I started importing goods from China, I often came across suppliers offering CIF (Cost, Insurance, and Freight) terms. At first, it seemed convenient since the seller handled most of the shipping arrangements, but I quickly learned there’s more to managing CIF shipping to Malaysia than just waiting for my cargo to arrive.
My Experience with CIF Shipping
1. Understanding What CIF Covers
Under CIF, my Chinese supplier arranged the freight and insurance until the goods reached a Malaysian port (e.g., Port Klang). However, the risk transferred to me as soon as the cargo was loaded onto the ship. So, even though Malaysia port delivery from China warehouse sounded like a hands-off approach, I still needed to stay alert.
2. Confirming Delivery Responsibility
CIF does not include inland logistics. Once the goods arrived, I had to organize Malaysia commercial delivery from China, either through my own forwarder or a local agent to get the shipment to my warehouse or client.
3. Verifying Shipping Insurance Coverage
Suppliers often used minimum coverage. I requested the insurance policy details upfront to ensure my goods were fully protected.
4. Managing Customs Clearance in Malaysia
I was responsible for import documentation and clearance. Having a customs broker helped me avoid delays and get the cargo out of the port faster.
5. Avoiding Demurrage Fees
Because CIF didn’t include post-port handling, I arranged prompt Malaysia port delivery from China warehouse with a local logistics company to avoid extra storage costs.
People Also Ask (PAA)
1. What does CIF shipping include for Malaysia?
CIF includes cost, insurance, and freight to the Malaysian port, but it does not cover customs clearance or inland delivery.
2. Who pays import duties in CIF shipping?
The buyer is responsible for all duties, taxes, and import clearance once the goods arrive in Malaysia.
3. Is CIF better than FOB when shipping to Malaysia?
CIF may be easier for beginners, but FOB gives you more control over freight, insurance, and often leads to better inland delivery options.
4. How do I arrange delivery after goods arrive in Malaysia?
You’ll need to work with a local freight forwarder to handle Malaysia commercial delivery from China, especially for large or urgent orders.
5. Can I upgrade insurance on a CIF shipment?
Yes, although basic insurance is included, you can negotiate with your supplier or purchase extra coverage directly.