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CIPAny transport mode

Carriage and Insurance Paid To

Like CPT, plus the seller must buy cargo insurance at an all-risk level for the buyer. Any transport mode.

When to use it

CIP is CIF's equivalent for any transport mode, and the 2020 revision specifically raised its insurance requirement to all-risk cover (Institute Cargo Clauses A), a real change from CIF's minimum cover, reflecting that CIP is more often used for higher-value, multimodal cargo.

The common mistake

Assuming CIP and CIF carry the same insurance obligation because they sound similar. Since 2020 they do not: CIP requires all-risk cover by default, a materially better standard than CIF's minimum cover, so treat them as different insurance commitments, not interchangeable rules.

Risk transfers

after Loading onto main carriage, from seller to buyer.

See the full responsibility matrix

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Incoterms is a registered trademark of the International Chamber of Commerce (ICC). This is an educational summary, not the official rules. For the binding text, see the ICC Incoterms 2020 publication.

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CIP (Carriage and Insurance Paid To) Incoterms 2020 Explained, Fernable