Carriage and Insurance Paid ToCIP
When the goods are handed to the first carrier (as CPT); the seller also provides insurance.
CIP (Carriage and Insurance Paid To) is an Incoterms® 2020 rule for any mode of transport, in group C. As with CPT, the seller contracts and pays for carriage to the named destination, and risk transfers to the buyer earlier, when the goods are handed to the first carrier. CIP adds a further seller obligation: cargo insurance.
Under CIP 2020 the seller must obtain insurance with a high level of cover — by default compliant with Institute Cargo Clauses (A) or equivalent all-risks cover — for the buyer's benefit, to the named destination. The seller also clears the goods for export; the buyer handles import clearance and duties and bears risk during the main carriage despite the seller having arranged it.
The level of cover is the main difference from CIF: CIP requires the higher Clause (A) cover, whereas CIF requires only the minimum Clause (C).
Cost & risk along the journey
Who is responsible
Turkey delivery code
Same group
Frequently asked questions
- QWhat does CIP mean in Incoterms 2020?
- ACIP stands for Carriage and Insurance Paid To. The seller pays for carriage and cargo insurance to the named destination, but risk transfers to the buyer when the goods are handed to the first carrier.
- QWhen does risk transfer under CIP?
- ARisk transfers when the goods are handed to the first carrier, even though the seller pays carriage and insurance to the named destination.
- QWhat level of insurance must the seller provide under CIP?
- AUnder Incoterms 2020, CIP requires a high level of cover — by default Institute Cargo Clauses (A) or similar all-risks cover — for the buyer's benefit to the named destination.
- QWho pays for the main carriage under CIP?
- AThe seller contracts and pays for carriage to the named place of destination.
- QWho clears the goods for import under CIP?
- AThe buyer is responsible for import clearance and duties; the seller clears the goods for export.
- QWhich transport modes can CIP be used for?
- ACIP can be used for any mode of transport, including multimodal shipments.
- QWhat is the difference between CIP and CIF?
- ABoth add seller-provided insurance, but CIP covers any mode and requires the higher Clause (A) cover, while CIF is sea-only and requires only the minimum Clause (C) cover.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC) and the official rules are copyright ICC. This is a factual reference in logibook's own words — not the ICC rules; always rely on the official ICC Incoterms® 2020 text for the binding rules.