It’s an Incoterm established by the International Chamber of Commerce (ICC) to provide a clear roadmap for international transactions, ensuring both seller and buyer understand their roles when delivering goods to any designated location.
Under CIP, the seller takes on a more comprehensive role than CIF. Here’s what CIP entails for the seller:
- The seller is responsible for arranging and paying for the transportation of the goods to the named destination. This can encompass various modes of transport, including ocean freight, inland waterways, or even multimodal journeys involving a combination of methods.
- Similar to CIF, the seller must obtain insurance coverage for the goods during their entire journey. This minimum insurance typically protects against loss or damage caused by unforeseen events like fire, theft, or adverse weather conditions.