CIP — Carriage and Insurance Paid To
CPT plus all-risks insurance. The 2020 revision raised its cover to ICC (A), and left CIF's alone.
- Group
- C — Main carriage paid
- Transport mode
- Any mode, including multimodal.
- Named place
- The place of destination the seller has paid carriage and insurance to.
- Main carriage paid by
- Seller
- Risk passes
- Delivery to the first carrier
- Export clearance
- Seller
- Import clearance and duties
- Buyer
- Seller must insure
- Institute Cargo Clauses (A), all risks
- Unloading at destination
- Buyer.
CIP is CPT with an insurance obligation on the seller, for the buyer's benefit, covering the carriage to the named destination. Risk still passes to the first carrier at origin.
The 2020 change is the one worth knowing. CIP's minimum cover rose from Institute Cargo Clauses (C) to Institute Cargo Clauses (A) — an all-risks wording that picks up theft, handling damage and non-delivery. CIF's minimum stayed at (C). The reasoning was that CIP is used for manufactured goods, where all-risks is the norm, and CIF for bulk commodities, where it is not.
For a buyer of containerised manufactured goods, CIP is now materially better protected than CIF, and the two are often quoted as though interchangeable.
The parties can agree a lower level than ICC (A) under CIP, and some sellers do. If the contract is silent it is (A); if it names something else, read it.
Always write the rule with its named place and the version — CIP [named place], Incoterms 2020. The rule says nothing about when ownership transfers; that is for your sales contract.