Carriage and Insurance Paid To (…named place of destination) (CIP)
(obsolete-Incoterms 2000) An international trade term of sale in which, for the quoted price, the seller/exporter clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage and insurance to the named place of destination. However, once the goods are delivered to the carrier, the buyer is responsible for all additional costs.
In Incoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of carriage such as in small package courier delivery.
The seller is responsible for procuring and paying for insurance cover.
The Carriage and Insurance Paid To term is often used in sales where the shipment is by air freight, containerized ocean freight, courier shipments of small parcels, and in “ro-ro” (roll-on, roll-off) shipments of motor vehicles.
A “carrier” can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a “carrier” under this term.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
See Carriage and Insurance Paid To, Incoterms© 2010 below.