Carriage and Insurance Paid - Explained
What is CIP?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is Carriage and Insurance Paid (CIP)?
According to a Carriage and Insurance Paid agreement, a seller must buy insurance for the risk which the buyer bears for losing or damaging the goods during foreign transport. CIP refers to an Incoterm wherein a seller delivers goods situated in his country to be transported to a buyer in a different country. The seller covers customs clearance costs, while the buyer pays import clearance.