Carriage and Insurance Paid to or CIP Law and Legal Definition

'Carriage and Insurance Paid to' or CIP is a term used in international sales contracts. A seller usually has to deliver the goods to the named destination. Seller chooses the transport method and pays the cost of carriage for the goods to the named destination. Seller also clears the goods for export. Seller must also procure insurance against the risk of loss of or damage to the goods during carriage. The risks transfer from seller to buyer at the point where goods are delivered to the first carrier.