Difference between CFR terms and CIP terms


The information provided here is part of Online Training Course on howtoexportimport


Difference between CIP terms and CFR terms.

Can I use CFR terms in air shipments? Can I use CIP terms in sea shipment?

What are the differences between CIP and CFR?   Let us discuss on CFR vs.CIP below:

Difference between CFR terms and CIP termsAccording to shipping terms, CFR means Cost and Freight paid (to named destination), CIP means Carriage and Insurance paid (up to named destination.)
The term CFR is used for sea and inland water transports, where as CIP is used for movements of goods under any mode of transport.


The major difference between  CIP and CFR is that under CIP terms, the seller pays insurance cost and under CFR terms, the buyer insures the goods at his own cost.
I have easily explained the terms CFR and CIP in same web blog.  Please find below link on CIP and CFR terms of shipping for your quick reference:


What is CFR and how does it work in International Trade?

What is CIP terms in Inco terms?Buyer’s responsibilities under CIP terms?Seller’s duties under CIP terms of shipping?

I hope, you have satisfied with the above terms easy to understand.  If you would like to write more on difference between CIP and CFR, please do not hesitate to express your thought below.



Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.


The above information is a part of Export import business Course online

Posts about international trade cauching

CIP terms in simple language
15 Obligations of buyer under CIP terms of
12 tips to Seller on CIP terms of Delivery  
Difference between CIP and CIF
Difference between CFR and DAP in shipping terms
Difference between DDP and CFR in shipping
Difference between CFR and CPT in shipping terms
How to start Export Business?
How to get Export Orders?
What are the risks and solutions in Export Business?
Click here to know India Trade Classification(ITC)
Service Tax - Click here to read complete notification under Budget 2014
What is Bank post shipment credit to exporters?
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation


Difference between CIP and CFR in shipping terms
Write below your comments on CFR vs CIP.







What is Nom Is DP terms of payment safe in export business?

Is Letter of Credit LC safe for an Importer?

 Is ON BOARD CERTIFICATE required for LC negotiation

 How to make DA mode of payment safe

How to make delay in delivery of Shipment?

 How to minimize import cargo clearance time? An open logic proposal to WTO

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?

How to obtain Phyto sanitary certificate. What is phytosanitary certification

 How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

What is Manifest Hold by US customs on import

What is MET exam in US import customs clearanceinated cargo or Routing order shipment

What is NVOCC? How NVOCC can provide better rate than the main shipping carriers

What is packing credit in export business?

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

 Triangular shipment

Types of Insurance Documents.

What is Provisional Assessment in Import formalities in India?

What is said to contain in Bill of Lading.

What is Said to weigh in Bill of Lading

What is second appraisement of import clearance procedures

What is self assessment in import customs clearance in India?

 What is SGS Inspection in Exports and Imports?

 What is shipment Advice and what are the contents of shipping advice

What is Shipper Load, stow and count in Bill of Lading

What is Test Report in Import clearance
What is Shut out in export trade



Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers