CIP and DAP under Inco terms, a comparison

Explain the difference between DAP and CIP

Delivered at Place Vs. Carriage and Insurance Paid to are two of Inco terms  among 11 delivery rules designed by ICC. 

Under CIP, the Seller is liable to arrange minimum insurance against movement of goods whereas under DAP,  neither buyer nor seller is responsible to arrange Insurance, which may separately discuss out of Inco terms rules 2020. 

CIP is widely used to move goods from Warehouse to Warehouse, movement of LCL cargo, shipments under break bulk etc. especially to Dry ports and intermediary ports. CIP modes are used widely used for the shipments by air also.     

Under DAP delivery rules, the seller transfers risks and costs to buyer when goods reached for unloading at the destination at buyer’s side.  Under CIP deliver terms, the cost of movement of goods  transfers from seller to buyer when goods reached at the named place at the disposal of buyer to unload and the risks of movement of goods transfers from seller to buyer immediately after loading the goods  in to carrier at Seller’s side. So under DAP, the named place is the ‘delivered place’ where as under CIP, the named place is not the ‘delivered place’.

You may read about CIP and DAP written individually  by easily explaining below to click:

DAP  Delivered at Place

CIP  Carriage and Insurance Paid To

The above information explains about the difference between CIP and DAP.  You may share below your thoughts to add up this post about the comparison between DAP and CIP under Incoterms 2020.

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