CIP (Carriage and Insurance Paid to)
Incoterms, also known as international commercial terms, are set to eliminate or decrease confusions and conflicts between buyers and sellers in international trade and to facilitate the trade and commerce process globally. Incoterms were created by the International Chamber of Commerce (ICC) in 1936 and since then, they are updated on a regular basis to suit changing trade trends.
|Free Carrier||Carriage Paid To||Carriage Insurance Paid To||Delivered at Place||Delivered at Place Unloaded||Delivered Duty Paid||Free Alongside Ship||Free On Board||Cost & Freight||Cost, Insurance & Freight|
|At a named place, the seller transfers the goods to the buyer; the buyer is responsible for all risks.||1.) when seller loads goods to buyer’s carrier or 2.) when goods are at the buyer’s disposal & ready for unloading at a named placed||when the goods are handed over to the seller’s nominated carrier at a named place||when the goods are handed over to the seller’s nominated carrier at a named place||when the goods are placed at the buyer’s disposal at a named place or agreed point within that place||when the goods are delivered and unloaded at a named place or agreed point within that place||when the goods are placed at the buyer’s disposal at a named place or agreed point within that place||when goods are alongside the vessel nominated by the buyer at named port||when goods are on board the vessel nominated by the buyer at named port||when the goods are on board the vessel nominated by the seller at origin||when the goods are on board the vessel nominated by the seller at origin|
|Packaging & QC||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller|
|Loading & Delivery||Buyer||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller|
|Export Duty & Taxes||Buyer||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller|
|Origin Terminal Handling||Buyer||Buyer||Seller||Seller||Seller||Seller||Seller||Buyer||Seller||Seller||Seller|
|Destination Terminal Handling||Buyer||Buyer||Seller||Seller||Seller||Seller||Seller||Buyer||Buyer||Buyer||Buyer|
|Delivery to Destination||Buyer||Buyer||Seller||Seller||Seller||Seller||Seller||Buyer||Buyer||Buyer||Buyer|
|Unloading at Destination||Buyer||Buyer||Buyer||Buyer||Buyer||Seller||Buyer||Buyer||Buyer||Buyer||Buyer|
|Import Duty & Taxes||Buyer||Buyer||Buyer||Buyer||Buyer||Buyer||Seller||Buyer||Buyer||Buyer||Buyer|
Seller’s Responsibility Under CIP
Buyer’s Responsibility Under CIP
Cargo Insurance in CIP
What does CIP refer to?
CIP refers to Carriage and Insurance Paid To. According to CIP incoterm, the seller takes all risks until the goods are delivered to the first carrier.
What shipping mode is CIP used for?
CIP incoterm is a versatile term since it can also be used for intermodal transportation.
Who is responsible for the payment of duties and taxes under CIP?
The buyer is in charge of paying duties and taxes during the shipping process.
ow is CIP different from CPT?
Under CPT, the seller is not contractually obligated to provide cargo insurance, and you, as the buyer, can choose your desired insurance, while in CIP, it’s vice versa.