Carriage and Insurance Paid (CIP)
Carriage and Insurance Paid, or CIP, is an Incoterm that says the seller is in charge of getting the goods to the named location and paying for their transportation and insurance.
Carriage and Insurance Paid, or CIP, is an Incoterm that says the seller is in charge of getting the goods to the named location and paying for their transportation and insurance.
The Incoterm “CIP” means that the seller has arranged and paid for the products’ transportation and insurance to the agreed-upon destination. This implies the seller must arrange for shipping and delivery of the products to the customer and must also secure insurance for the goods during transit. The risk of loss or damage to the products passes from the seller to the buyer upon delivery and acceptance of the items. CIP is widely used in cross-border commerce since it defines the roles of the buyer and the supplier in relation to transportation and insurance.
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