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CIP Carriage and Insurance Paid To.

As CPT, plus the seller buys cargo insurance. Since 2020 the minimum cover is Institute Cargo Clauses (A), 110% of contract value.

Where risk passes

CIP named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded
Risk passesWhen handed to the first carrier in the export country
Transport modeAny mode of transport
Main carriage booked bySeller
Cargo insuranceSeller, Institute Cargo Clauses (A), at least 110% of contract value
Export clearanceSeller
Import clearance and dutiesBuyer
Seller pays7 of 13 cost steps

Who pays what under CIP

CostPaid by
Loading at originSeller
Export customs declarationSeller
Carriage to port of exportSeller
Unloading of truck in port of exportSeller
Loading on vessel/airplane in port of exportSeller
Carriage (sea/air) to port of importSeller
InsuranceSeller
Unloading in port of importAgreed
Loading on truck in port of importAgreed
Carriage to place of destinationBuyer
Import customs clearanceBuyer
Import duties and taxesBuyer
Unloading at destinationBuyer

Sources: ICC, Incoterms® 2020; cost split as given inWikipedia, Incoterms (section "Allocations of costs"). Duties, fit and pitfalls below are Navo's own summary, not ICC text. Incoterms® is a trademark of the ICC.

When CIP fits

Container and multimodal sales where the buyer wants the seller to provide full cargo insurance.

What to watch

  • Risk passes at the first carrier; the insurance covers the buyer for the rest of the trip.
  • Since 2020 CIP requires all-risks cover (ICC A). Under CIF it is still only minimum cover (ICC C).
  • Agree the insurance currency and who claims under the policy.
  • Shipping under CIP? Compare freight rates and check sailings.