Carriage and Insurance Paid To (CIP) is an incoterm that means a seller pays freight and insurance to deliver goods to a seller-appointed party at an agreed-upon location. The risk of damage or loss to the goods being transported transfers from the seller to the buyer as soon as the goods are delivered to the carrier or appointed person. CIP is comparable, but different to Cost, Insurance, and Freight (CIF).The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP, the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, they will need either to agree to that expressly with the seller or make other extra insurance arrangements.
Related Posts
Preferential Duties
Glossary / August 14, 2022 August 14, 2022
A preferential duty is a duty with a lower than normal tariff rate levied on imports originating from countries within a Free Trade Agreement (FTA)…
Customs Tariffs
Glossary / August 14, 2022 August 14, 2022
A customs tariff is a tax levied on imports and is typically imposed by the government of the importing country.
Customs Exam
Glossary / August 11, 2022 August 11, 2022
Customs exam may be applied to any import cargo based on a targeting system of the U.S. Customs and Border Protection (CBP) that marks which…
Delivered at Place Unloaded (DPU)
Glossary / July 21, 2022 July 26, 2022
Delivered at Place Unloaded (DPU) is an incoterm that requires the seller to deliver the goods to a specific location after they have been unloaded.