Incoterms® 2020Modes: Any
CIP - Carriage and Insurance Paid To
CIP (Carriage and Insurance Paid To) is one of the 11 rules published by the ICC in Incoterms® 2020. Risk passes when goods handed to first carrier at origin. Insurance is mandatory under CIP: the seller must arrange Institute Cargo Clauses (A) - all-risks (upgraded in Incoterms 2020).
Best fit for LC
Risk transfer point
When goods handed to first carrier at origin
Who does what under CIP
| Obligation | Party |
|---|---|
| Export Packaging | Seller |
| Inland Transport (Origin) | Seller |
| Export Clearance | Seller |
| Loading on Vessel | Seller |
| Main Carriage (Freight) | Seller |
| Insurance | Seller (min ICC-A, all-risks) |
| Destination Charges | Buyer |
| Import Clearance | Buyer |
| Import Duty | Buyer |
Insurance obligation
Under CIP, the seller must procure marine cargo insurance covering at least 110% of the invoice value in the currency of the contract, per UCP 600 Article 28(f). Minimum clause: Institute Cargo Clauses (A) - all-risks (upgraded in Incoterms 2020).
Watch outs
- Incoterms 2020: CIP minimum insurance upgraded to ICC (A) all-risks. Previously ICC (C) - a critical change.
- Best choice for high-value manufactured goods, pharma, electronics.
Under a letter of credit
Best for multimodal/air LC with all-risks insurance. Seller provides multimodal transport doc + ICC(A) cert + invoice.