Carriage and Insurance Paid To (CIP) Definition
Carriage and Insurance Paid To (CIP) is a type of trade term used in the coffee industry. It means that the seller is responsible for arranging and paying for transportation of the coffee to a specified location, which is not the buyer's address. This is different from other terms such as Cost and Freight or Free Carrier, which have different responsibilities for transportation.
Carriage and Insurance Paid To (CIP) explained in simple terms:
CIP is when the person selling the coffee pays for it to be taken to a special place by truck or car, but not to the person buying it's house. It's like giving a present to a friend but not taking it to their house, but to a different spot.
Carriage and Insurance Paid To (CIP) points to remember
- "Carriage and Insurance Paid To" (CIP) is a term used in international trade that refers to the seller arranging and paying for overland transportation of goods.
- It is similar to other terms like "Cost and Freight" (CFR) and "Cost Insurance and Freight" (CIF)
- The seller is responsible for getting the goods to a specified location other than the buyer's address.