These terms are used in international trading in relation to shipping, where goods have to be delivered from one destination to another through maritime shipping. The abbreviation CIF stands for "cost, insurance, and freight," and FOB means "free on board." The major difference between FOB and CIF is in the transference of liability and ownership. With FOB, title possession and liability usually shift when the shipment leaves the point of origin. With CIF, responsibility moves to the buyer once the goods reach the point of destination.
