Any mode of transport
CIP
Carriage and Insurance Paid To
As CPT, plus the seller must insure the goods — at Institute Cargo Clauses (A) level under Incoterms® 2020.
WHO DOES WHAT — 8 STAGES
SELLER
Contract and pay for carriage to the named place of destination
Buy cargo insurance at ICC (A) level, usually for 110% of the contract value
Deliver the goods to the first carrier
Complete export clearance
BUYER
Bear risk from handover to the first carrier
Complete import clearance and pay duties
Claim under the insurance policy if loss occurs
KEY FACTS
Risk, cost and paperwork at a glance.
RISK TRANSFERS
When the goods are handed to the first carrier.
COST TRANSFERS
The seller pays carriage and insurance to the named place of destination.
INSURANCE
Seller — minimum Institute Cargo Clauses (A).
EXPORT CLEARANCE
Seller
IMPORT CLEARANCE
Buyer
IN PRACTICE
When to use it, and when not to
Incoterms® 2020 raised CIP’s minimum insurance from ICC (C) to ICC (A). Parties can still agree a different level in the sales contract.
Educational summary of the Incoterms® 2020 rules, not legal advice. Incoterms® is a trademark of the International Chamber of Commerce; check the official ICC text and take professional advice for contracts.
GUIDE
Incoterms® 2020, explained in full
ALL RULES
The other ten rules
AGREED THE TERMS?