CIP
Carriage and Insurance Paid To
Seller pays carriage AND all-risks insurance (ICC A) to destination. The most protective C-term for buyers.
Visual Guide - Cost & Risk Transfer
Obligations & Cost Breakdown
Seller Obligations
- Arrange carriage to destination
- Procure ALL-RISKS insurance (ICC A - 110% value)
- Clear for export
Cost Responsibility:
Buyer Obligations
- Accept delivery at destination
- Import clearance and duties
Cost Responsibility:
Risk Transfer Point
When goods handed to first carrier
Insurance Requirement
Seller provides ALL-RISKS (ICC A) - comprehensive coverage including theft, breakage, water damage
Real African Trade Examples
Gold: Ghana → Switzerland
CIP AccraRefined gold bars for Swiss refineries
High-value cargo demands all-risks insurance. CIP ensures comprehensive ICC A coverage from origin to destination. Security carriers handle transport.
FCA Accra with separate specialist insurance
Pharmaceuticals: South Africa → Nigeria
CIP JohannesburgAnti-retroviral medications
Temperature-sensitive pharmaceutical products need comprehensive insurance for the entire multimodal journey (road + air/sea).
DAP Lagos if seller wants to control delivery
Common African Trade Usage
Increasingly recommended by ICC for intra-African trade under AfCFTA where multimodal transport is common. Used for high-value goods (gold, electronics, pharmaceuticals) where comprehensive insurance is essential. Growing in popularity as African exporters become more sophisticated.
Common Mistakes with CIP
Confusing CIP with CPT
The Mistake: Thinking CPT and CIP are the same because both involve seller paying for carriage.
The Problem: CIP includes all-risks insurance (ICC A); CPT includes NO insurance. The cost difference can be 0.5-2% of cargo value.
The Solution: Choose CIP when insurance is important (high-value goods). Use CPT only when buyer explicitly arranges their own insurance.
When to Use CIP
Best For
- High-value cargo
- Multimodal transport
- When buyer wants comprehensive protection
- Container shipments
- Intra-African trade
Avoid When
- When lowest cost is priority (insurance adds 0.5-2% to cost)