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Carriage and Insurance paid to CIP


 Any type of transport mode, including Multimodal Transport

Carriage and insurance paid to

With the Carriage and Insurance paid to (CIP) Incoterms rule, the Seller must pay for pre-carriage, main carriage and post-carriage costs, up to the agreed destination (or named place) as well as for terminal handling charges.


Loading and unloading up to the named destination (or named place) are under seller’s responsibility.


However as soon as the goods have been handed over to the carrier, risks are transferred to the buyer. Note that in case of multimodal transport, where multiple carriers are involved in the delivery process, the risks are transferred from the Seller to the Buyer as soon as goods are in the custody of the first carrier (unless specified otherwise in sale contract).


The Seller is required to purchase cargo insurance with a minimum cover (Clause C of the Institute Cargo Clauses LMA/ IUA), with an insurance company of good reputation. Note that the buyer should be entitled to make a claim directly.

Any additional coverage requested by the buyer (riots, strikes, war etc.) is at his own expense.

The selected insurance must cover 110% of the value declared within the sales contract and must be denominated in the same currency.

Furthermore, the seller has the obligation to provide the transport documents needed by the buyer for claiming the goods from the carrier in the port of destination, as well as for selling the goods while in transit.

Any pre-shipment inspection that might be required by law in the seller’s country is at the seller’s expense.

Furthermore, the seller is liable for export custom clearance formalities (such as export licences).

In much the same way, the buyer must comply with import custom clearance formalities (taxes, duties, VAT).

Overall, the Seller must assist the Buyer for obtaining documents that might be required for the importation.

Note that the related costs engendered by such assistance are at the Buyer’s expense.

Usual Documents required:

  • Commercial Invoice
  • Documents as agreed in the contract
  • Proof of insurance
  • Transport documents:
  1. Dated in line with agreed period for shipment
  2. Clean Bill of lading with the mention “freight prepaid” and full set of originals when issued in negotiable form



If the buyer fails to collect the goods within the agreed period and from the agreed place, he will be held accountable for potential risks (damage and loss).


It is then of paramount importance to determine the place where the goods will be passed to the carrier (transfer of risk to the buyer) as well as the exact point of delivery in the buyer’s country (costs borne by Seller up to this point)

When should I use the Cost and Insurance paid to Incoterms rule?


Carriage and Insurance paid to Incoterms rule, is recommended when goods are containerised.