Carriage and Insurance Paid To
CIPCPT plus seller-arranged cargo insurance to the named destination at the higher Incoterms® 2020 cover level.
Last reviewed: 30 September 2026
Professional definition
CPT plus seller-arranged cargo insurance to the named destination at the higher Incoterms® 2020 cover level. The named place must be stated precisely and the parties should identify the Incoterms® 2020 version.
Example
A London medical supplier insures and pays road freight to Paris; risk passes when the first haulier takes the goods.
Where it is used
Any mode. Name the insured freight destination and clarify the first-carrier delivery point.
CIP responsibilities
Seller
- Perform all CPT seller duties
- Obtain cargo insurance for the buyer's risk
- Provide the insurance policy/certificate
Buyer
- Bear risk after first-carrier delivery
- Handle import clearance
- Claim directly under the seller-provided insurance when necessary
- Delivery point
- Name the insured freight destination and clarify the first-carrier delivery point.
- Risk transfer
- Transfers on delivery to the first carrier, even though seller-paid freight and insurance continue to destination.
- Cost responsibilities
- Seller pays export, carriage and insurance to the named destination. Buyer pays import and later costs.
- Insurance
- Seller must obtain cover broadly equivalent to Institute Cargo Clauses (A), normally for at least 110% of the contract price, from delivery to destination.
- Customs
- Export: Seller. Import: Buyer. Seller pays export duties/taxes; buyer pays import duty, import VAT and clearance charges.
Common mistakes and things to remember
Incoterms® allocate delivery, risk, cost and customs tasks; they do not determine title, payment, product compliance or every contract obligation.
Source
Use the linked authority and applicable national guidance for current requirements.