Carriage and Insurance Paid To (CIP) is when a seller pays freight and insurance to deliver goods to a seller-appointed party at an agreed-upon location. The risk of damage or loss to the goods being transported transfers from the seller to the buyer as soon as the goods are delivered to the carrier or appointed person.It is comparable, but different from Cost, Insurance, and Freight (CIF). Whereas CIF means that only freight costs are paid by the seller, CIP means that both freight costs and insurance costs are paid by the seller.The buyer may choose to take delivery of the goods in several parts or stages. In this case, each part will be covered by its own insurance policy. The final delivery can also be delivered separately from other parts of delivery. This means that each part of the delivery will be covered by its own insurance policy. The final delivery can also be delivered separately from other parts of delivery.The major difference between CIP and CIF is that in CIP, the risk of damage or loss transfers from the seller (or shipper) immediately upon delivery of the goods to the carrier or appointed person. In CIF, this transfer takes place only when all costs have been paid by the buyer.The term ‘CIP’ is widely used in international trade and shipping, especially when referring to the way that freight forwarders deliver goods. A freight forwarder is a company that specialises in arranging the transportation of cargo from one place to another. Their services include assisting with customs clearance, finding suitable carriers and making sure they have adequate insurance coverage.
