Incoterms 2020
CPT vs CIP
Compare Carriage Paid To and Carriage and Insurance Paid To side by side: who pays freight, where risk transfers, and who clears customs.
| Field | CPT | CIP |
|---|---|---|
| Applies to | Any mode, including multimodal | Any mode, including multimodal |
| Risk transfers to buyer | When the goods are handed to the first carrier. Risk passes early even though the seller pays carriage to destination. | When the goods are handed to the first carrier. Risk passes early even though the seller pays carriage and insurance to destination. |
| Main carriage paid by | Seller | Seller |
| Insurance | No party is obliged to insure. The buyer bears the in-transit risk and should insure. | Seller, all-risks cover (Institute Cargo Clauses A) under Incoterms 2020. |
| Export clearance | Seller | Seller |
| Import clearance and duties | Buyer | Buyer |
| Seller handles | Arrange and pay carriage to the named destination, by any mode or multimodal. | Arrange and pay carriage plus all-risks insurance to the named destination. |
| Buyer handles | Insurance in transit, import clearance, unloading, and delivery. | Import clearance, unloading, and final delivery. |
| Best for | Air, road, rail, or multimodal shipments where the seller books freight but the buyer insures. | Air or multimodal shipments where the seller handles both freight and insurance. |
Fields that differ are highlighted in teal. General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
CPT vs CIP questions
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