CIP - CARRIAGE & INSURANCE PAID


In Carriage and Insurance Paid To (CIP), the vendor assumes all risk until the products square measure delivered to the primary carrier at the place of shipment—not the place of destination. Once the products square measure delivered to the primary carrier, the customer is to blame for all risks.

However, the vendor is to blame for the value of carriage further as all-risk coverage until the freight reaches the named place of destination.

A carrier is a person or company World Health Organization undertakes the carriage of products, like a shipping line, airline, shipping company, railway or freight forwarder.

In multimodal shipments, the place of cargo is that of the initial carrier used.

Same as CPT, however, the vendor is obliged to secure all-risk coverage.


CIP Incoterm Obligations

Seller Obligations
  • Goods, business invoice and documentation
  • Export packaging and marking
  • Export licenses and customs formalities
  • Pre-carriage and delivery
  • Loading charges
  • Cost of delivery at the named place of destination
  • Proof of delivery
  • Cost of pre-shipment review
  • All-risk coverage

Buyer’s Obligations
  • Payment for merchandise as laid out in the sales contract
  • Import formalities and duties
  • Cost key clearance pre-shipment review