Glossary

Carriage and Insurance Paid To (... named port of destination). In CIP, the seller/exporter/manufacturer clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage and insurance to the named port of destination. However, once the goods are delivered to the carrier, the buyer is responsible for all additional costs.
In Incoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of carriage such as in skmall package courier delivery.
The seller is responsible for procuring and paying for insurance cover.
The CIP term is valid for any form of transport including multimodal.
The "named port of desination" in CIP and all "C" terms is domestic to the buyer, but is not necessarily the final delivery point.
The CIP term is often used in sales where the shipment is by air freight, cotainerized ocean freight, courier shipments of small parcels, and in "ro-ro" (roll-on, roll-off) shipments of motor vehicles.
A "carrier" can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a "carrier" under this term.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.