Using the CIP Incoterm
The CIP Incoterm or “Carriage and Insurance Paid to” states that the seller is responsible for bringing the goods to destination and the payment of the cost of international freight as well as insurance costs. Unlike other Incoterms, the transfer of risk is made when the goods have are loaded on board the means of transport.
The CIP Incoterm is versatile as it can be used irrespective of the mode of transport.
Seller’s obligations under the CIP Incoterm
- Delivery of goods and documents required
- Packaging and wrapping
- Inland transport in the country of origin
- Customs at origin
- Exit charge
- International freight
Buyer’s obligations under the CIP Incoterm
- Payment of the goods
- Arrival expenditures
- Customs on arrival
- Inland transport at the destination country
- Payment of fees