CIP — Carriage and Insurance Paid To
As CPT, plus the seller insures the goods to the named destination — under Incoterms® 2020 with all-risks cover.
- Transport
- Any mode
- Main carriage
- The seller books and pays carriage and insurance to the named destination.
- Risk passes
- When the goods are handed over to the first carrier in the seller's country.
- Insurance
- Seller — all risks
Who pays and who carries the risk
- Export clearanceSeller
- Loading at sellerSeller
- Risk passes to buyerTransport to terminalSeller
- Origin terminal & loadingSeller
- Main carriageSeller
- Destination terminal & unloadingBuyer
- Import clearance & dutiesBuyer
- Delivery to buyerBuyer
- Unloading at buyerBuyer
Destination terminal charges are the buyer's unless they are included in the seller's carriage contract.
Seller
- Clear the goods for export
- Contract and pay carriage to the named destination
- Insure the cargo with all-risks cover (Institute Cargo Clauses A), at least 110% of the invoice value
- Give the buyer the insurance document
Buyer
- Bear risk from handover to the first carrier (claims go through the insurance)
- Clear the goods for import and pay duties
- Pay any extra cover it wants beyond the minimum
When to use it
Higher-value goods shipped by container, air or multimodal, when the buyer wants insurance arranged by the seller.
Watch out
CIP requires much broader cover than CIF. If you agree a lower level of cover, write it into the contract.
Not sure which term to agree?
Tell us the route and the cargo — we'll suggest the term that fits and quote the freight for it.
Get a quoteOther Incoterms® rules
Incoterms® is a registered trademark of the International Chamber of Commerce. This guide is Cargo 4S's own summary for everyday use; for the complete rules see the official ICC Incoterms® 2020 publication.
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