More Incoterms & Transport Documents
CIP
Also known as: Carriage and Insurance Paid To
Carriage and Insurance Paid To is a multimodal Incoterm under which the seller contracts and pays for carriage to the named destination and also procures transport insurance for the buyer's benefit, while risk transfers to the buyer much earlier, when the goods are handed to the first carrier. It is the insured counterpart of CPT and the all-modes equivalent of CIF, and under the current rules the seller must obtain a high level of cargo insurance cover unless the parties agree otherwise. CIP suits containerized and mixed-mode shipments where the seller arranges both freight and insurance to destination.
CIF for any mode, with one difference that matters: the seller must buy Institute Cargo Clauses (A), not (C). For containerized cargo where you want the seller to insure, CIP is the term that does what buyers wrongly assume CIF does.
Where it matters for compliance
- Insurance in the price is not dutiable, but must be identified to be deducted.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.