Carriage and insurance paid (CIP): Meaning and definition

Carriage and insurance paid (CIP) is an incoterm that applies to any form of transportation, including ocean freight and air freight where the seller or exporter organizes transportation for the main carriage, which is usually through a carrier. The exporter also secures necessary export permissions and documentation. Once the goods have been loaded onto the carrier hired, the risk has been passed to the importer. The exporter bears the risk throughout the major transit stage as it travels towards the agreed-upon destination.