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International Trade vocabulary · Incoterms

CIP

Meaning in international trade, with examples

abbreviationCommon term

In international trade, CIP means: Carriage and Insurance Paid To: an Incoterms rule like CPT, except that the seller also buys cargo insurance for the buyer up to the named destination.

In Turkish: taşıma ücreti ve sigorta ödenmiş olarak teslim, CIP teslim

How it is used

Used for all transport modes, especially air freight and container shipments. Since Incoterms 2020, CIP requires a high level of insurance cover (Institute Cargo Clauses A, all risks), while CIF still requires only minimum cover.

Example sentences

  1. The L/C asks for CIP Nairobi Airport and insurance for 110 percent of the invoice value.

  2. Our insurer confirmed that the CIP policy covers all risks.

Common collocations

  • CIP price
  • CIP destination
  • quote CIP
  • CIP insurance
  • IncotermsA set of standard three-letter trade terms published by the International Chamber of Commerce that show which costs, risks and tasks belong to the seller and which to the buyer.
  • CPTCarriage Paid To: an Incoterms rule in which the seller pays transport to the named destination, but the risk passes to the buyer when the goods are handed to the first carrier.
  • CIFCost, Insurance and Freight: an Incoterms rule in which the seller pays sea freight and minimum insurance to the destination port, but the risk passes to the buyer once the goods are on board at the port of loading.
  • cargo insuranceInsurance that covers goods against loss or damage while they are being transported by sea, air, road or rail.

More terms: Incoterms

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