CIP (Carriage and Insurance Paid To)
Also called: Carriage and Insurance Paid To
An Incoterms rule for any mode of transport under which the seller pays carriage and insurance to the named place of destination, while risk passes to the buyer when the goods are handed to the first carrier. Under Incoterms 2020 the seller must obtain broader insurance cover for CIP than for CIF unless agreed otherwise.
In practice
Insurance costs included in a CIP price are part of customs value in the EU and Türkiye, but excluded in the US.
EU
Türkiye
UK
USARelated terms
- Incoterms
- A set of standard three-letter trade terms published by the International Chamber of Commerce that allocate delivery point, risk, costs and customs…
- CPT (Carriage Paid To)
- An Incoterms rule for any mode of transport under which the seller pays carriage to the named place of destination, but risk passes to the buyer when…
- CIF (valuation basis)
- As a valuation basis, CIF means the price of the goods plus the cost of insurance and transport up to the place where goods enter the customs…
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…