Carriage and Insurance Paid

From Open Risk Manual

Definition

Carriage and Insurance Paid. It is a shipping term included in a contract of sale (abbreviated as CIP). Its meaning is that the vendor agrees to arrange and pay for the transportation and cargo insurance over the products to the named destination.

Such costs are included in the price of the products. All risks of loss of or damage to the products, as well as any additional costs due to events occurring after the time the products have been delivered to the carrier, are transferred from the vendor to the buyer when the products have been delivered into the custody of the carrier.

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