The information provided here is part of Import Export online Training
Difference between CIP and CIF.
What are CIP terms? What are CIF terms? How to differentiate CIP with CIF? Are CIP and CIF same in Inco terms? Can we use CIP in air shipment? Is insurance premium for CIP and CIF is same?
The above questions on CIP and CIF are common in trade especially in export and import. Let us look in to CIF Vs.CIP.
Let us have a quick reference on what is CIF and what is CIP?
CIF means Cost Insurance and Freight (followed by a destination) which means, the value of goods sold includes cost of goods, insurance and freight up to destination mentioned.
CIP means, Carriage and Insurance paid (up to named destination).
I have written about CIP and CIF separately in this website. If you can go through them, you can easily grasp about CIP and CIF terms of delivery. For your quick reference on CIP and CIF, I give below the link on the subject:
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.
Based on the above links, let me sum up with the following difference in CIP and CIF terms of delivery in Inco Terms.
CIF terms of delivery is in force for many decades where as CIP has been introduced in Inco Terms 2010.
Under CIF terms, freight is paid up to the depot of ship owner or his agent up to the destination mentioned in contract. Where as under CIP terms, freight is paid up the destination mentioned which can be either up to any inland destination or up the depot of ship owner or his agent.
While arranging insurance under CIP terms, seller may have to cover insurance for goods up to destination contracted by means of one or more mode of transport. However, under CIF terms, the seller needs to cover Insurance only by sea as per marine policy norms. So in most of the cases, the insurance premium under CIP terms could be more than CIF terms.
Under CIF terms, the risk of seller passes to buyer when goods gone onboard the vessel. But under CIP terms, the liability on risk fulfills by buyer immediately up on delivery of goods to first carrier of goods.
Click here to read latest Inco terms rules for delivery of goods
Learn practical problems and solutions in Exports and Imports
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.
CPT delivery terms, buyer or seller to unload goods at destination?
A comparative study between CIP terms and FOB terms
Less risk for an Exporter, Which Inco terms is better?
CIF terms, Importer or Exporter responsible to unload the goods?
CFR Terms of delivery, Exporter or Importer to unload goods at destination?
Who unloads goods under DAP terms of delivery at named place?
CIP terms of movement, Unloading goods by Buyer or Seller?
FCA terms, who is responsible to unload cargo at named place?
I hope, I could differentiate CIF and CIP terms of delivery. Do you have different thoughts on CIP vs.CIF?
Have you satisfied with the above explanation about CIF and CIP?
Write below your comments on CIF and CIP.
The above information is a part of Export Import Training course online
Posts about international trade cauching
Compare between FCA and DDP DAP and FCA, a comparative study Distinguish between FCA and DPU under Inco terms CIP Vs. FCA, A comparison under Inco terms 2020 Difference between FCA and CPT under Inco terms CIP and DAP under Inco terms, a comparison DDP and CIP under Inco terms Free Along Side Vs. Carriage and Insurance Paid A comparative study between CIP terms and FOB terms CIP and CFR under Inco terms Compare CIP and EXW under Inco terms Ex Works Vs. Carriage Paid To Difference between EXW and FCA, Inco terms 2020 DAP delivery terms, who does import customs clearance? Compare between DPU and DAP under Inco terms 2020
Difference between types of goods and services and types of GST
4 types of Goods and Services in India for GST rate
Difference between IGST on International goods and IGST on domestic goods.
Navigation controls to enroll with GST in India for existing VAT payers in IndiaHow is IGST calculated under Imports?
How is IGST rate on imports treated?
How to register a Digital Signature Certificate under GST in India.GST and e-Commerce Business, FAQ
Does Interest attract on GST Tax payment delay?
Step by step procedure to login with GST common portal in India
Mechanism of Payment of GST tax in India
Levy of late fee for GST Tax returns filing in India
I pay Service Tax on my services. But I am not sure how do I pay the new GST?
Notice to GST return filing defaulters
When to file Annual Return of GST online?
Procedures to claim reduction in output tax liability of GST in India
Process to issue GST Provisional ID to existing VAT payers in India
Procedures to claim Input Tax Credit under GST in India
When to file first Return of GST tax in India?
GST Tax returns filing – Who, How and When?
Step by step procedures to create username and password in GST common portal
Revised GST rate on Organic surface-active agents
Revised GST rate on Lubricating preparations
Revised GST rate on Polishes and creams, for footwear, furniture, floors, glass or metal etc
Reduced GST rate on Plastic raincoats
Minimized GST rates on Rubber bands
Reduced GST rate on Rice rubber rolls for paddy de-husking machine
Changes of operation of SEZ
Does CVD exists under project imports?
Baggage clearance after GST implementation
Refund of SAD paid on imports
Integrated Tax (Rate) Notification No. 48 of 2017 DT 14th November, 2017, GST
Central Tax Notification No 43 of 2017 dt 13th October, 2017 under GST
CUSTOMS Notification No. 78 of 2017 dt 13th October, 2017
Integrated Tax Notification No. 9 of 2017 DT 13th October, 2017, GST
Section 74 Determination of tax not paid, CGST Act, 2017
Officers to assist proper officers, Sec 72 of CGST Act, 2017
Inspection of goods in movement, Sec 68 of CGST Act, 2017
Section 67 of CGST Act, 2017 Power of inspection, search and seizure