CIP – CARRIAGE AND INSURANCE PAID TO (NAMED PLACE OF DESTINATION) | INCOTERMS 2010
CIP – Carriage and Insurance Paid to (named place of destination)
The seller is responsible for arranging carriage to the named place, and also for insuring the goods. As with CPT, delivery of the goods takes place, and risk transfers from seller to buyer, before the main carriage, at the point where the goods are taken in charge by the first carrier.
Things to watch for. Terminal Handling Charges (THC) are charges made by the terminal operator at either the beginning or the end of the transport operation, or at both ends. These charges may or may not be included by the carrier in their freight rates – the buyer should enquire whether the CPT price includes THC, so as to avoid surprises.
Although the seller is obliged to arrange for insurance for the journey, the rule only requires a minimum level of cover, which may be commercially unrealistic. Therefore the level of cover may need to be addressed elsewhere in the commercial agreemen.
Transportation – Can be used for any transport mode, or where there is more than one transport mode.