CIP (Carriage and Insurance Paid To)
Published by:
Netherlands Chamber of Commerce, KVK
< 1 min read
CIP is an Incoterms® rule advised when goods are transported in containers. The seller pays for the transport to the agreed location mentioned after the Incoterms® rule. For example, the buyer’s premises or another inland location. The transfer of costs and risk takes place at different times. Seller must take out transport insurance.
Seller arranges and pays for:
- Transport to the agreed destination location. For example, buyer’s business address, a distribution centre, or another inland location in the destination country.
- Export formalities and documents.
- Transport insurance with maximum cover for transport between loading point with first carrier and the agreed destination.
Buyer arranges and pays for:
- Transport from the agreed destination location to any other final destination.
- Unloading at the agreed location.
- Import formalities and local import documents.
Suitable for:
- Trade within and outside the EU.
- All forms of transport (rail, air, road, water).
- Payment by Letter of Credit or documentary collection.
Not or less suitable for:
- -
Transfer of risk from seller to buyer:
- Once seller hands over the goods to its (first) carrier at its premises, or at another agreed loading point, as in FCA-A.
Points of attention:
- The transfer of costs (agreed destination) and risk (e.g. after loading the vehicle at seller) takes place at different times.
- Agree upon the exact place at the destination location.