Part of the Comprehensive Incoterms Guide
CIP In Plain English
CIP (Carriage And Insurance Paid To) is a tricky incoterm. Read the details carefully. Only recommended if using a Letter of Credit.
Where Is The Named Place For Handing Over Responsibility From The Seller To The Buyer?
This incoterm works exactly like CPT, excepting the seller is also responsible for arranging main carriage insurance.
What Does The ICC Say?
Recommended for containerized freight.
Is This A Good Choice?
Refer to CPT.
CIP Tips And Tricks
- Refer to CPT, obviously excepting the tip on the buyer arranging insurance.
- The seller need only arrange minimum insurance cover, to the invoice value of the goods. If the buyer considers that this level of cover is not sufficient, an agreed level of cover can be included elsewhere in the contract of sale.
- Although the seller is responsible for insurance, the risk transfers to the buyer before the main carriage.
- The seller is not obliged to arrange insurance for pre-carriage in the export country, or carriage in the import country, unless this is specified elsewhere in the sales contract.