CIP — Carriage and Insurance Paid To
Like CPT, plus the seller buys all-risks insurance to the destination.
CIPCarriage and Insurance Paid ToAny mode
Where risk transfers
When the goods are handed to the first carrier.
Mode: any mode of transport
Who pays what
| Export customs | Seller |
| Origin carriage | Seller |
| Main freight | Seller |
| Insurance | Seller |
| Import customs | Buyer |
| Duties & taxes | Buyer |
| Delivery to place | Buyer |
Obligations
Seller
- •Pay carriage to the named destination
- •Buy all-risks cover (Institute Cargo Clauses A) for the buyer
Buyer
- •Carry the risk from the first carrier
- •Clear for import and pay duties
Watch out
Incoterms 2020 raised CIP's required cover to all-risks ICC (A) — a key change from 2010 and from CIF, which stayed at ICC (C).
More terms
Frequently asked questions
What does CIP mean in Incoterms 2020?
CIP stands for Carriage and Insurance Paid To. Like CPT, plus the seller buys all-risks insurance to the destination. Risk transfers when the goods are handed to the first carrier.
Who pays for the main freight under CIP?
The seller pays the main carriage under CIP.