CIP— Carriage and Insurance Paid To(Cước và bảo hiểm trả tới)
CIP (Carriage and Insurance Paid To) — CPT plus an insurance duty, for any mode of transport. Its most important difference from CIF: since Incoterms 2020 the seller must buy the HIGHEST cover (Clauses A), not minimum cover.
Cost, risk and clearance at a glance
Delivery & risk transfer
As CPT: risk passes to the buyer on handover to the FIRST carrier; freight and insurance are paid by the seller through to the named destination.
Cost split
Seller: export clearance, through freight to the named destination, Clauses-A premium. Buyer: import clearance, duties and anything beyond the destination.
Insurance
The seller must provide Clauses A (all-risks) cover or equivalent, for at least 110% of the contract value, over the whole carriage. The parties may agree to LOWER it in the contract — the mirror image of CIF (low default, negotiate up).
Watch out for
- Does the import country require locally-bought insurance? Then consider CPT with the buyer arranging domestic cover instead.
- Same C-group trap: the seller pays to destination but the buyer's risk starts at the first carrier — loss claims go through the insurance policy.
CIP price → Vietnamese customs value
Importing into Vietnam
The invoice price already sits at the valuation point — customs value = invoice price.
Compute duty with this term →Exporting from Vietnam
- − International freight included in the price
- − International insurance included in the price
Legal basis: Circular 39/2015/TT-BTC, amended by 60/2019/TT-BTC.
"Incoterms" is a registered trademark of ICC. This page is the site's own plain-language summary for reference; the authoritative rules are ICC's Incoterms® 2020 publication.