“Carriage and Insurance Paid to” (CIP) is an international trade term (Incoterms) that specifies the responsibilities and costs associated with the transportation and insurance of goods in the process of a commercial transaction. CIP is one of the terms published by the International Chamber of Commerce (ICC) and is used in international contracts to define the obligations of the buyer and the seller.

Key features of Carriage and Insurance Paid to (CIP) include:

1. **Definition:**
– CIP indicates that the seller is responsible for delivering the goods to a named destination, covering the cost of transportation and obtaining insurance against the risk of loss or damage during transit.

2. **Delivery Point:**
– The seller is responsible for delivering the goods to a specific destination agreed upon by the buyer and the seller. The named place or location is mentioned in the contract, and it is typically a location within the buyer’s country.

3. **Transportation Costs:**
– The seller is responsible for the cost of carriage (transportation) of the goods to the named destination. This includes the cost of loading, transporting, and unloading the goods.

4. **Insurance Costs:**
– In addition to transportation costs, the seller is also responsible for obtaining and paying for insurance coverage for the goods during transit. The insurance should cover the risk of loss or damage to the goods until they are delivered to the named destination.

5. **Risk Transfer:**
– The risk of loss or damage to the goods transfers from the seller to the buyer at the point of delivery to the carrier. This means that the seller is responsible for any loss or damage that may occur during transportation, up to the named destination.

6. **Customs Formalities:**
– The seller is responsible for export and import customs formalities, including obtaining any necessary licenses or permits. However, the buyer is responsible for any customs duties or taxes.

7. **Delivery Documents:**
– The seller must provide the buyer with the necessary documents, such as the transport document, insurance certificate, and any other documents required for the buyer to take delivery of the goods.

8. **Arrival at Destination:**
– Upon arrival at the named destination, the seller must bear the costs and risks associated with unloading the goods and making them available for the buyer to pick up or take delivery.

9. **Incoterms 2020:**
– CIP is part of the Incoterms 2020 rules, which are a set of international trade terms published by the ICC. These terms are widely used in international contracts to define the rights and obligations of buyers and sellers in the context of international shipments.

10. **Flexibility:**
– CIP allows for flexibility in determining the destination, and the named place can be a specific location such as a port, airport, or a specific location within a city.

It’s important for parties involved in international trade transactions to clearly define the specific terms and conditions of the sale, including the named destination, transportation mode, insurance coverage, and other relevant details. This helps prevent misunderstandings and ensures a smooth and efficient international trade process.