Incoterms® 2020 · C: main carriage paid

CIP Carriage and Insurance Paid To

As CPT, plus the seller insures the goods for the buyer, with all-risks cover under Incoterms® 2020.

Delivery point: Handed over to the first carrier contracted by the seller
Risk passes: When the goods are handed to the first carrier, in the seller's country
Transport mode: Any mode, including multimodal
Export clearance: Seller
Import clearance: Buyer
Insurance: Seller, all-risks cover ICC (A)

Responsibility matrix

Costs and risk, stage by stage

CIP works like CPT: the seller pays carriage to the destination and risk passes at handover to the first carrier. In addition, the seller must buy cargo insurance in favour of the buyer. Since 2020, the minimum cover is Institute Cargo Clauses (A), all risks, for at least 110% of the contract value.

Seller pays
Buyer pays
Depends on the contract of carriage or the named place
Risk passes to the buyer

01 Loading at seller's premises Seller pays
02 Pre-carriage to export terminal Seller pays
03 Export clearance Seller pays
04 Origin terminal and loading on board Seller pays
05 Main carriage Seller pays
06 Destination terminal charges Depends on the contract of carriage or the named place
07 Import clearance, duties and taxes Buyer pays
08 Carriage to named destination Depends on the contract of carriage or the named place
09 Unloading at destination Buyer pays

Who does what

The seller must

Contract and pay for carriage to the named place of destination
Insure the goods with ICC (A) cover for at least 110% of the value, in the contract currency
Give the buyer the insurance policy or certificate
Deliver the goods to the first carrier and clear them for export
Provide the usual transport document

The buyer must

Bear the risk from handover to the first carrier, claiming under the insurance if needed
Pay for any extra cover it requests, such as war or strikes
Pay destination costs not included in the carriage contract
Clear the goods for import and pay duties and taxes
Receive the goods from the carrier

When to use it

Container, air or multimodal shipments where you want the seller to arrange freight and insurance
Higher-value goods, where all-risks cover matters
Letters of credit that require an insurance document

Be careful when

You already have an annual cargo policy: CPT avoids paying for insurance twice
You assume CIP cover is the old minimum: under 2020 it is all risks, which costs more

Tip for buying from Vietnam

Check that the insurance certificate names you as the party who can claim and that claims can be settled in your country.

How to write it

CIP Chicago, IL, USA, Incoterms® 2020

Compare with

This guide summarises the Incoterms® 2020 rules in plain language for planning. It is not the official text. Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce. For the full rules, see ICC publication No. 723E.

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