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.
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).
- 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 the (first) carrier at its premises, or at another agreed loading point, as in FCA-A.
Points of attention:
- The transfer of costs (agreed destination location) and risk (e.g. after loading vehicle at seller) takes place at different times.
- Agree upon the exact place at the agreed destination location.