CIP Incoterms 2020 — Carriage and Insurance Paid To
The seller pays carriage plus broad insurance to destination; risk is yours from the first carrier.
Carriage and Insurance Paid To
Any mode of transportThe seller pays carriage plus broad insurance to destination; risk is yours from the first carrier.
Insurance under CIP is broad cover (Institute Cargo Clauses A).
Supply chain & cost split
- 1Export packagingS
- 2Loading at originS
- 3Pre-carriageS
- 4Export clearanceS
- 5Origin terminal (THC)S
- 6Main carriageS
- 7InsuranceS
- 8Destination terminal (THC)B
- 9Import clearanceB
- 10Delivery & unloadingB
Where the risk transfers
When the goods are handed to the first carrier — risk passes here, even though the seller pays carriage and insurance to destination.
CIP is a C-term: the seller books and pays the main carriage all the way to destination, but the risk of loss or damage transfers to the buyer much earlier — at origin. If the cargo is damaged in transit, it is the buyer's loss even though the seller arranged the freight. Insure the journey accordingly.
Who pays for what
| Supply-chain stage | Who pays |
|---|---|
| Export packagingPacking and marking the goods for international transport. | Seller |
| Loading at originLoading the goods onto the first vehicle at the seller's premises. | Seller |
| Pre-carriageInland transport to the terminal or port of departure. | Seller |
| Export clearanceExport customs formalities and duties in the origin country. | Seller |
| Origin terminal (THC)Terminal handling charges at the port or terminal of departure. | Seller |
| Main carriageThe main international leg — ocean freight or air / road carriage. | Seller |
| InsuranceCargo insurance covering the main carriage. | Seller |
| Destination terminal (THC)Terminal handling charges at the arrival port or terminal. | Buyer |
| Import clearanceImport customs clearance, duties and taxes at destination. | Buyer |
| Delivery & unloadingOnward delivery to the final point and unloading. | Buyer |
Frequently asked questions
- Who pays for the main freight under CIP?
- Under CIP (Carriage and Insurance Paid To) the seller books and pays the main carriage to the agreed destination.
- When does risk transfer under CIP?
- When the goods are handed to the first carrier — risk passes here, even though the seller pays carriage and insurance to destination.
- Is CIP suitable for air or container shipments?
- Yes. CIP works for any mode of transport — air, road, rail and containerised sea freight.
Find prep-centers and 3PL warehouses that handle inbound, customs and Amazon FBA prep for this kind of shipment.