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What are CIP (Carriage and Insurance Paid To) Incoterms?

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  • What are CIP (Carriage and Insurance Paid To) Incoterms?
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What are CPT (Carriage Paid To) Incoterms?
25 January 2023
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CIP (Carriage and Insurance Paid To) is an Incoterm that defines the responsibilities of the buyer and the seller in a contract for the sale of goods. Under CIP, the seller is responsible for arranging and paying for the transportation of the goods to the agreed destination and also for arranging and paying for the insurance of the goods during transport. The seller also bears the risk of loss or damage to the goods until they are delivered to the carrier at the named place of destination. The buyer is responsible for any costs and risks associated with the transportation of the goods from the point of delivery to the final destination.

When using CIP, the seller is responsible for arranging and paying for the transportation of the goods to the agreed destination, including the cost of freight, insurance, and any other charges up to the named place of destination. The seller is also responsible for obtaining any export clearance required and arranging for transport to the named place. The buyer is responsible for unloading the goods and any import clearance required.

CIP is similar to CPT, but it also includes the cost of insurance, so the seller is taking on more responsibilities, such as the risk of loss or damage to the goods during transport. This term can be used for any mode of transport, including sea, air, rail and road. This term is used when the buyer wants the seller to take care of the transportation and insurance of the goods up to the named place of destination, but wants to take care of the import formalities and the risk of loss or damage once the goods are delivered to the named place.

 

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FLEX Logistik Deutschland GmbH
Am Knühl 2
39326 Hermsdorf, Germany
Steuernummer 114/5817/5187 | VAT DE346264068 | EORI DE884155763601273
FLEX. Logistik is a part of FLEX. - e-commerce 3PL for B2C & B2B Online Retailers in the European Union
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