For carriage and insurance paid to; the Incoterm (delivery term) under which the seller is responsible for arranging and paying for both the transportation of the goods and shipping insurance through to a named destination point, typically in the destination country.
BREAKING DOWN 'Carriage And Insurance Paid To (CIP)'. The term CIP is typically used in conjunction with a destination. So for example, CIP New York would mean that the seller will pay freight and insurance charges to New York. CIP is one of the 11 international commercial terms (Incoterms) specified by the International Chamber of Commerce in the latest revision (Incoterms 2010) of these globally accepted trade terms. As is the case with “Carriage Paid To” (CPT), carriage or freight charges with CIP refer to transportation charges for any accepted transport mode such as road, rail, sea, inland waterway or air, or multimodal transport that involves a combination thereof. CIP is one of the 11 international commercial terms (Incoterms) specified by the International Chamber of Commerce in the latest revision (Incoterms 2010) of these globally accepted trade terms. CIF. (Incoterms) Abbreviation for cost, insurance and freight; the Incoterm (trade terms) under which the seller is responsible for arranging and paying for transportation of the goods and shipping insurance through to a named ocean or inland waterway destination port. FAS. (Incoterms) Abbreviation for free alongside. The Incoterm (delivery term) under which the seller is responsible for arranging transportation of the goods to a named ocean or inland waterway port and placing them “alongside” the vessel which the buyer has arranged to transport the goods. CIP is very similar to CIF in that it includes insurance as well as cost and freight. In CIP, the seller/exporter arranges for the goods to be delivered to the named port of destination. Unlike it’s more common sibling CIF, I rarely see CIP used, with too many companies using CIF for air shipments and other modes of transport when what they really should be using is CIP. Best Answer: there you go sort that out CIP (Carriage and Insurance Paid To) A Term of Sale which means the seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export. CIP. (Incoterms) Abbreviation for carriage and insurance paid to; the Incoterm (delivery term) under which the seller is responsible for arranging and paying for both the transportation of the goods and shipping insurance through to a named destination point, typically in the destination country. FAS. (Incoterms) Abbreviation for free alongside. The Incoterm (delivery term) under which the seller is responsible for arranging transportation of the goods to a named ocean or inland waterway port and placing them “alongside” the vessel which the buyer has arranged to transport the goods. · just now. Report Abuse. The term CIP in shipping is an acronym for Carriage and Insurance Paid. Here is a description of what it means in the shipping industry: CARRIAGE AND INSURANCE PAID TO(... The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export. “ again with the cherries example?) you would use the term “CIP, Carriage and Insurance Paid to Laem Chabang Port, Thailand” however Laem Chabang might or might not be the final delivery point at the port of destination. Unlike it’s more common sibling CIF, I rarely see CIP used, with too many companies using CIF for air shipments and other modes of transport when what they really should be using is CIP. “With CIP terms being used at what point does the buyer take ownership of goods”. As discussed, to the named place or port. Both parties need to discuss where this “place” or “point” is. Having said, that’s also where the seller’s responsibility ends. Unlike it’s more common sibling CIF, I rarely see CIP used, with too many companies using CIF for air shipments and other modes of transport when what they really should be using is CIP.
http://www.investopedia.com/terms/c/carriage-and-insurance-paid-cip.asp http://www.investopedia.com/terms/c/carriage-and-insurance-paid-cip.asp http://actlogisticsinc.com/incoterms/ http://www.3plwire.com/2006/08/04/incoterms-cip-carriage-and-insurance-paid-to/ https://answers.yahoo.com/question/index?qid=20070107232338AADZnqo http://actlogisticsinc.com/incoterms/ https://answers.yahoo.com/question/index?qid=20070107232338AADZnqo http://www.3plwire.com/2006/08/04/incoterms-cip-carriage-and-insurance-paid-to/ http://www.3plwire.com/2006/08/04/incoterms-cip-carriage-and-insurance-paid-to/
what is CIP abbreviation