Carriage and Insurance Paid to (CIP) :
Carriage and Insurance Paid to (CIP) :
What does this term stand for?
Carriage and Insurance Paid to (CIP) is an International Commercial Term (Incoterm) published by the International Chamber of Commerce (ICC) that defines the responsibilities and obligations of sellers and buyers in international trade transactions. Under CIP terms, the seller is responsible for arranging and paying for both the transportation (carriage) and insurance coverage of goods to a named place of destination specified in the sales contract. This Incoterm is applicable to all modes of transport—including air, sea, road, rail, and multimodal shipments—making it one of the most versatile delivery terms in international commerce. A critical feature of CIP is that while the seller pays for carriage and insurance to the destination, the risk of loss or damage to the goods transfers from seller to buyer much earlier in the shipping process, specifically when the goods are handed over to the first carrier.
Key Responsibilities
- Seller’s Obligations
- Buyer’s Obligations
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