CIP (Carriage and Insurance Paid To)

CIP (Carriage and Insurance Paid To)

CIP (Carriage and Insurance Paid To) is a term that is commonly used in international trade when the seller delivers the goods to a specified location and is responsible for paying the costs associated with transportation to the final destination, as well as providing insurance coverage for the goods during transportation. The seller may use any mode of transportation, and the buyer is responsible for arranging and paying for any additional transportation or handling costs beyond the point of destination.

Here is an example of how CIP (Carriage and Insurance Paid To) might be used in a contract:

Seller: ABC Company

Buyer: XYZ Corporation

Goods: 100 units of widget A

Price: $10 per unit

Terms: CIP (Carriage and Insurance Paid To)

Under these terms, the seller will deliver the goods to a designated location in Country X and will pay the costs associated with transporting the goods to the port of destination in Country Y, as well as providing insurance coverage for the goods during transportation. The seller may use any mode of transportation, and the buyer is responsible for arranging and paying for any additional transportation or handling costs beyond the port of destination in Country Y. The seller is not responsible for any delays or damages that may occur during transportation.

In this example, the seller's responsibility is limited to delivering the goods to a designated location in Country X, paying the costs associated with transporting the goods to the port of destination in Country Y, and providing insurance coverage for the goods during transportation. The buyer is responsible for everything else, including arranging and paying for any additional transportation or handling costs beyond the port of destination, customs clearance, and any other costs associated with getting the goods to their final destination.