All Incoterms 2020 rules

CIP Carriage and Insurance Paid To

CPT plus all-risks cover: the seller pays the carriage and insures the whole journey.

Any mode of transport

CIP works exactly like CPT — risk passes at the first carrier, cost runs to the named destination — with one addition that Incoterms 2020 made much stronger. The seller must insure the goods on Institute Cargo Clauses (A), an all-risks cover, for 110% of the contract value, all the way to the named place of destination.

Track a shipment
Risk passes at
Handover to the first carrier
Export clearance
Seller
Import duty & taxes
Buyer
Cargo insurance
Seller — Clauses (A)

The journey, stage by stage

Every stage of the shipment in order, and who pays for it.

  1. 1 Packing the goods for export Seller pays
  2. 2 Loading onto the collecting vehicle Seller pays
  3. Risk passes to the buyer The moment the goods are handed to the first carrier — the seller’s policy is what protects the buyer over the long journey that follows. The seller still pays for 5 more stages below this line.
  4. 3 Inland carriage to the port or terminal Seller pays
  5. 4 Export customs formalities Seller pays
  6. 5 Terminal handling at origin Seller pays
  7. 6 Loading onto the main carrier Seller pays
  8. 7 The international freight Seller pays
  9. 8 Terminal handling at destination Whether discharge and terminal handling at destination are already inside the freight the seller booked depends on that contract of carriage. It is the most common double-billing dispute on the four C-rules, and the reason this cell is not a flat yes or no. Per contract
  10. 9 Import customs, duty and taxes Buyer pays
  11. 10 Inland carriage to the final destination Buyer pays
  12. 11 Unloading at the final destination Buyer pays

What the seller does

  • Pack the goods and clear them for export.
  • Contract and pay the carriage to the named place of destination.
  • Insure on Clauses (A) for 110% of the value and give the buyer the policy.
  • Deliver to the first carrier — risk passes there.

What the buyer does

  • Carry the risk from the first carrier onward, with the seller’s all-risks policy behind it.
  • Pay terminal handling at destination unless the seller’s carriage contract already covers it.
  • Clear the goods for import and pay duty and taxes.
  • Take delivery at the named place.

Use it when

  • High-value containerised, air or courier cargo that needs real cover.
  • Manufactured goods, electronics and machinery, where handling damage — not perils of the sea — is the actual risk.

Watch out for

  • CIP now insures far more widely than CIF. Do not assume the two are the same rule in different clothes.
  • The policy runs to the named place of destination, so name it precisely — a terminal and the buyer’s warehouse are not the same cover.

CIP is the rule to reach for when the cargo is valuable and moves in a container: all-risks cover, and freight paid through.

Compare with

CPT Carriage Paid To CIF Cost, Insurance and Freight DAP Delivered at Place

Sources for this page

Every payer cell on these pages was checked against several published references, and the two cells those references disagree on are drawn as “per contract” rather than resolved by picking a side. This is a summary for orientation, not legal advice — the contract and the ICC text govern.

  1. Incoterms® 2020 International Chamber of Commerce

    The rules themselves. The authoritative text is ICC publication no. 723E, which is not free — this page is a summary of it, not a copy.

  2. Incoterms Wikipedia

    Risk transfer point, export and import clearance and the insurance clauses for each of the eleven rules; the 2010 to 2020 changes; what the rules do not cover.

Selling or buying on CIP terms? Follow the shipment from handover to arrival — whoever holds the number can track it.

Track a shipment

CIP FAQ

CIP works exactly like CPT — risk passes at the first carrier, cost runs to the named destination — with one addition that Incoterms 2020 made much stronger. The seller must insure the goods on Institute Cargo Clauses (A), an all-risks cover, for 110% of the contract value, all the way to the named place of destination.

Risk passes to the buyer the moment the goods are handed to the first carrier — the seller’s policy is what protects the buyer over the long journey that follows. The seller then goes on paying for the journey well past that point, which is what makes CIP easy to misread: paying for a leg and carrying the risk on it are two different things here.

The seller pays the carriage to the named place of destination, plus the insurance premium. Whether the carriage already covers terminal handling there depends on that contract. Export clearance is the seller’s and import duty and taxes are the buyer’s. Cargo insurance is compulsory and the seller buys it.

Whoever contracted the carriage holds the transport document, and its number is what a lookup needs. Enter a bill of lading, booking or container number in the container tracking app, an air waybill in the air cargo tracker, or make the same lookup one REST call with the API reference.

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