CIP Incoterms – Business guide from postnord

CIP Incoterms is one of several standardised delivery terms for international trade and transport. For companies transporting goods - especially for import and export - the condition is important to know. Here you will find information about what CIP means, what the conditions mean for buyers and sellers and how you can use PostNord as a transport partner for CIP deliveries.

What does CIP mean?

CIP is an acronym for "Carriage and Insurance Paid to". The delivery term is one of several in the collection of international trade terms known as Incoterms.

For goods shipped under CIP, the seller is responsible for all costs - including insurance - until the goods are loaded by the first carrier in the freight chain. The location shall be specified as a named place in the terms of the contract. The seller also bears the risk, but after loading by the first carrier, the risk is transferred to the buyer.

Good to consider for CIP as delivery terms

The purpose of the CIP delivery terms - as with all other terms in Incoterms - is to clarify who is responsible for the risks and costs associated with the transport of goods, and at what stage of the transport. Depending on whether you are using CIP as a selling or buying party, there are different things to take into account.

For companies sending goods shipments with CIP as the shipping condition - i.e. the selling party - the following applies:

  • Responsibility for all freight costs (to final destination) and risk up to loading by first carrier
  • Liability for transport insurance - this should at least meet the requirements of the Institute Cargo Clauses (A)

For the recipient - i.e., the buyer - CIP means:

  • Free delivery to final destination
  • Bears all risks for the goods from the moment of loading at the first carrier

In terms of cost, CIP delivery terms are more advantageous for the buyer. However, it is important to remember that the buyer assumes the risk from the first link in the shipping chain. Here CIP differs from several other Incoterms, where the seller bears all the risks associated with transport up to the final destination.

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Use PostNord’s solutions for CIP deliveries

As the leading transport provider in the Nordics, PostNord can offer several smart solutions when your company needs to send parcels - both with CIP and delivery terms such as CPT, DDP, DAP or other Incoterms.

Among our business services you will find for example:

If you use PostNord for CIP deliveries, your shipments are always insured through us. We offer fast, safe and cost-effective domestic and international transport.

Want to know more about our services for businesses? Visit PostNord Portal Business and get a business account today. Completely free of charge of course.

Frequently asked questions about CIP incoterms

What is the difference between CIP and CPT?

In CIP, the seller is responsible for insuring the goods during transport. In CPT, it is the buyer who must take out insurance.

When does CIP apply?

When there are agreed terms of delivery between seller and buyer.

Who can use CIP?

CIP can be used by companies when transporting goods to other companies or distributors.