CIP (Carriage and Insurance Paid To)
Published by:
Netherlands Chamber of Commerce, KVK
1 min read
CIP is an Incoterms® rule advised for transport of goods in containers. The seller pays for the transport to the agreed place mentioned after the Incoterms® rule. For example, a port or airport in the destination country. The transfer of costs and risk takes place at different times. The seller must take out transport insurance.
With CIP, the agreed location may vary. In this example, it is immediately upon arrival in the destination country. Would you like to agree on a location further away in the destination country? If so, please view the other version of CIP.
Seller arranges and pays for:
- Transport to the agreed destination location. For example, land border, seaport, inland port, or airport 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 country location.
Buyer arranges and pays for:
- Transport from the agreed destination location to 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).
Not or less suitable for:
- -
Transfer of risk from seller to buyer:
- Once seller hands over the goods to the (first) carrier at its premises, or at another agreed loading point, as inIncoterm® rule FCA-A.
Points of attention:
- The transfer of costs (agreed destination location) and risk (for example, after loading vehicle at seller) takes place at different times.
- Agree upon the exact place at the agreed destination location.