CIP: Carriage and Insurance Paid To
By Mohamed Omer, Chairman & Chief Executive Officer, Mooventory Global · Any mode
As CPT, but the seller must also buy cargo insurance, at the higher Institute Cargo Clauses (A) 'all risks' level.
Where risk transfers
At handover to the first carrier.
Seller pays
- Export clearance
- Main carriage
- All-risks insurance at 110% of value
Buyer pays
- Import duties and clearance
- Unloading if not in the freight contract
When to use CIP
Higher-value manufactured goods moving by air or multimodal routes.
Watch out for
Check the policy names you as beneficiary and is claimable in your country.
CIP for Africa trade
Useful for electronics and spare parts heading inland, for example via Djibouti to Addis Ababa.
Other Incoterms
Sources
International Chamber of Commerce (ICC), Incoterms® 2020 rules. Incoterms® 2020 remain the current ICC edition in force.