What is CIP?
Insurance is an established trading practice, and ‘Carriage and Insurance Paid to’ (CIP) is when a seller pays freight and insurance to deliver products to a party appointed by the seller at a predetermined location. The buyer bears the risk of loss or damage to the transported goods as soon as the vendor delivers them to the carrier or designated person.” Carriage and Insurance Paid To” (CIP) is an international business term, also known as an Incoterm. It is used in international trade to describe who pays for what when goods are sent from a seller to a buyer. CIP is usually followed by a place or location name that shows where the obligation of the seller ends and the buyer’s starts.
This is what CIP stands for:
1. Carriage: The buyer takes responsibility for setting up and paying for how the goods will get to the destination mentioned in the contract. This includes the cost of putting the things on a vehicle, driving them to the mutually agreed-up place, and taking them off the vehicle.
2. Insurance: The buyer is also in charge of getting insurance for the items while they are in transit and paying for them. This insurance should cover the chance that the goods will be lost or damaged until they are delivered to the destination designated.
3. Paid To: This means that the seller of the product is liable for all costs related to shipping and insuring the products up to the destination or location that is mentioned. Once things get to the right place, the buyer is responsible for the costs and risks.
Contact Us