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Carriage and Insurance Paid To (. . . named place of destination) (CIP)

(Incoterms© 2010, enter into force January 1, 2011)
One of the 11 Incoterms© 2010.
In Carriage and Insurance Paid To, the seller/exporter/manufacturer clears the goods for export and is responsible for delivering the goods to the carrier at an agreed-upon place of shipment (not the destination). This is where risk passes from seller to buyer.
The seller, however, is responsible for contracting for and paying the costs associated with transport of the goods and minimum cover insurance to the “named place of destination.” This is where costs transfer from seller to buyer.
It is important to note that the transfer of risk from seller to buyer occurs at a different point than the transfer of costs.
When using the CIP term, it is advisable to clearly specify in the contract of sale and in contracts of carriage, not only the named place of destination, but also the precise point at or within the named place of destination.
The CIP term may be used for any mode of transport including multimodal. In CIP, the named place of destination is domestic to the buyer.
The CIP 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.
If more than one carrier is used for carriage to the named place of destination, such as in multimodal shipments, the risk passes when the goods have been delivered to the first carrier.
See World Trade Press Illustrated Guide to Incoterms© 2010 Appendix for details.

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