Incoterms CIP: Carriage and Insurance Paid To

Named Place Requirement: Place of Destination

Applies to: plane icon truck icon icon Ship icon

Carriage and Insurance Paid ToClick to enlarge

In Carriage and Insurance Paid To (CIP), the seller assumes all risk until the goods are delivered to the first carrier at the place of shipment—not the place of destination. Once the goods are delivered to the first carrier, the buyer is responsible for all risks.

However, the seller is responsible for the cost of carriage as well as all-risk insurance coverage until the freight reaches the named place of destination.

A carrier is any person or company who undertakes the carriage of goods, such as a shipping line, airline, trucking company, railway or freight forwarder.

In multimodal shipments, the place of shipment is the first carrier used.

Bulp Same as CPT, but the seller is obligated to secure all-risk insurance coverage.

CIP Incoterm Obligations

Seller’s Obligations

  • Goods, commercial invoice and documentation
  • Export packaging and marking
  • Export licenses and customs formalities
  • Pre-carriage and delivery
  • Loading charges
  • Cost of delivery at named place of destination
  • Proof of delivery
  • Cost of pre-shipment inspection
  • All-risk insurance coverage

Buyer’s Obligations

  • Payment for goods as specified in sales contract
  • Import formalities and duties
  • Cost of import clearance pre-shipment inspection

Get expert help with Carriage and Insurance Paid To

AIT’s global team of experienced transportation management is well-versed in all the Incoterms rules and all shipping terms. Have a question about CIP Incoterms? Contact a representative today.

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Incoterms 2020 Overview of Risk and Cost Transfer


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