CIP— Carriage and Insurance Paid To(Cước và bảo hiểm trả tới)
CIP (Carriage and Insurance Paid To) is CPT plus an insurance duty, for any mode of transport. Its most important difference from CIF is that, 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 under CPT, risk passes to the buyer on handover to the first carrier, while the seller pays freight and insurance through to the named destination.
Cost split
Seller: export clearance, through freight to the named destination and the 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, which is the reverse of CIF, where the default is low and the parties negotiate it upwards.
Watch out for
- If the importing country requires insurance to be bought locally, consider CPT and let the buyer arrange domestic cover instead.
- The usual C-group trap: the seller pays to destination, but the buyer's risk starts at the handover to the first carrier. Claims for loss go through the insurance policy.
Converting a CIP price to Vietnamese customs value
Importing into Vietnam
The invoice price is already at the valuation point, so the customs value equals the 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 HSCodeVN's own plain-language summary, for reference only; the authoritative rules are ICC's Incoterms® 2020 publication.