CIP (Carriage and Insurance Paid To)

CIP (Carriage and Insurance Paid To) is a term in the International Commercial Terms (Incoterms), referring to the seller delivering the goods to a carrier designated by the buyer and paying the freight and insurance costs required to transport the goods to the specified destination. This term applies to any mode of transport, including multimodal transport. Usage scenario: CIP is a suitable choice when the seller wishes to assume responsibility for transport and insurance up to the destination, but the risk transfers to the buyer when the goods are handed over to the carrier. Precautions: The seller must arrange cargo insurance and pay the insurance premium, with the insured amount typically 110% of the contract price; the risk transfer point is when the goods are delivered to the carrier, not at the destination; the seller must provide the usual transport documents and insurance policy. Differences from other terms: Unlike CIF, which applies only to sea and inland waterway transport, CIP applies to various modes of transport; compared with CPT, CIP includes the seller's obligation to arrange insurance; compared with DAP, under CIP the seller does not bear responsibility for unloading at the destination and import customs clearance.