CIP – Carriage and Insurance Paid To
Incoterms® 2020 rule: transfer of risk, cost sharing and customs responsibilities.
The CIP rule in brief
CIP (Carriage and Insurance Paid To) is a rule in Incoterms® 2020 that can be used for any mode of transport: "Carriage and insurance paid to". It sets, in the sales contract, how delivery of the goods and costs and risks are shared between seller and buyer.
When does risk transfer?
When the goods are handed over to the first carrier
Export clearance
The seller
Import clearance
The buyer
Insurance: Seller · ICC (A)
Seller's obligations
In addition to CPT obligations, takes out minimum insurance under ICC (A) "all risks" cover.
Buyer's obligations
Handles import clearance; bears costs after arrival and risk after delivery to the carrier.
When is it used?
Suitable for valuable cargo when the buyer wants the seller to arrange insurance.
This page is for general information; for the full scope of rights and obligations, see the ICC's official Incoterms® 2020 text and your contract terms.
Frequently asked questions
What is CIP?
CIP (Carriage and Insurance Paid To) is a rule in Incoterms® 2020 that can be used for any mode of transport: "Carriage and insurance paid to". It sets, in the sales contract, how delivery of the goods and costs and risks are shared between seller and buyer.
What is the difference between CIP and CPT?
CIP: In addition to CPT obligations, takes out minimum insurance under ICC (A) "all risks" cover. CPT: Contracts and pays for carriage to the named destination; risk passes to the buyer when the goods are handed to the first carrier.