What is cip?

CIP, which stands for Carriage and Insurance Paid To, is an Incoterm used in international trade to define the responsibilities and obligations of the seller and buyer.

Under CIP terms, the seller is responsible for delivering the goods to a named place, typically a destination port or airport, and for arranging and paying for transportation and insurance of the goods to that location.

Once the goods have been delivered to the named destination, the risk and responsibility transfer from the seller to the buyer. The buyer is then responsible for unloading the goods, clearing them through customs, paying any import duties or taxes, and taking on any further risks or costs associated with the goods.

CIP terms can be used for any mode of transportation, including sea, air, road, or rail. It is important to clearly define the named place of delivery in the sales contract to avoid any misunderstandings or disputes.