CIP (Carriage and Insurance Paid To)

CIP is an Incoterm® that applies to all modes of transport, including multimodal shipments. Under CIP terms, the seller is responsible for arranging and paying for carriage to the named place of destination, as well as providing insurance coverage for the goods during transit. Unlike CIF, CIP requires higher insurance coverage by default, unless otherwise agreed by the parties. The transfer of risk occurs when the goods are handed over to the first carrier, not upon arrival at destination. CIP is widely used in air freight, road transport, and combined transport scenarios. The buyer is responsible for import customs clearance, duties, and local charges, while the seller ensures the cargo is protected during the main transport leg.