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CIP (Carriage and Insurance Paid To)

This information is provided by:Netherlands Chamber of Commerce, KVKNetherlands Chamber of Commerce, KVK
Incoterms CIP

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.

Read more about CIP.

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