What is CIP?
CIP, or Carriage and Insurance Paid to, refers to an agreement between the seller and buyer where the seller is responsible for the freight and insurance costs of goods up to an agreed upon location. At the location the goods, as well as responsibility for them, are transferred to a buyer appointed party.
CIP is generally used with a location to indicate specifically where the goods will change hands.
According to the CIP Incoterms, what is each party responsible for?
CIP indicates that the seller is responsible for freight to the predetermined destination as well as insuring the goods to at least 110% of the sale value. The buyer is responsible for carriage and insurance once the goods are transferred to them at the agreed upon location. Additionally, if the buyer desires better coverage, they need to provide it themselves.
When is CIP used?
CIP can be used for all modes of transport. For non-containerized ocean shipments, the Incoterm CIF can be applied for similar conditions. If the buyer doesn’t require the seller to purchase insurance for goods during transit, CPT can be applied instead of CIP.
Need more support? If you did not find what you were looking for, contact us for further help!CONTACT US