CIP — Carriage and Insurance Paid To
CPT plus all-risks insurance. The 2020 revision raised its cover to ICC (A), but did not change CIF's.
- 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 important one. CIP's minimum cover rose from Institute Cargo Clauses (C) to Institute Cargo Clauses (A). That is an all-risks wording, and it covers theft, handling damage and non-delivery. CIF's minimum stayed at (C). The reason is that CIP is used for manufactured goods, where all-risks cover is normal, and CIF for bulk commodities, where it is not.
For a buyer of manufactured goods in containers, CIP now gives much better protection than CIF. Even so, the two are often quoted as if they were the same.
The parties can agree a lower level of cover than ICC (A) under CIP, and some sellers do. If the contract says nothing, the cover is (A). If it names something else, read it carefully.
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.