CPT vs CIP
Key Difference
CPT and CIP both work for any transport mode and transfer risk when goods reach the first carrier. CIP requires the seller to buy broad (ICC A-level) insurance; CPT does not.
When to use CPT?
CPT works well for containerized/multimodal shipments where the buyer wants to manage their own insurance.
When to use CIP?
CIP is preferred for valuable or sensitive goods where broad insurance coverage is wanted from the outset.
Full Comparison
CPT – Carriage Paid To
Any Transport Mode- Seller's Responsibility
- Export-clears the goods and pays freight to the named destination.
- Buyer's Responsibility
- Handles insurance (optional), import clearance, and costs beyond the destination point.
- Risk Transfer Point
- When the goods are handed to the first carrier — before arrival, even though the seller pays freight.
PackagingSeller
Export ClearanceSeller
Origin Inland TransportSeller
Main Carriage (Freight)Seller
Insurance—
Import ClearanceBuyer
Destination Inland TransportBuyer
Duties & TaxesBuyer
CIP – Carriage and Insurance Paid To
Any Transport Mode- Seller's Responsibility
- Like CPT, plus the seller must also arrange broad (ICC A-level) cargo insurance.
- Buyer's Responsibility
- Handles import clearance and costs beyond the destination point.
- Risk Transfer Point
- When the goods are handed to the first carrier.
PackagingSeller
Export ClearanceSeller
Origin Inland TransportSeller
Main Carriage (Freight)Seller
InsuranceSeller
Import ClearanceBuyer
Destination Inland TransportBuyer
Duties & TaxesBuyer
Frequently Asked Questions
CPT and CIP both work for any transport mode and transfer risk when goods reach the first carrier. CIP requires the seller to buy broad (ICC A-level) insurance; CPT does not.