Difference between CIP and CIF

 The information provided here is part of Import Export online Training

Difference between CIP and CIF.

Difference between CIP and CIFWhat 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:



CIP terms in simple language

Seller’s obligations under CIP terms, a quick reference


15 Obligations of buyer under CIP terms of Delivery


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

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sudhir sharma: consingnment is despatched from belgium by ship to mumbai port and the incoterm is CIP Kanpur, Items are to be trasported by seller to kanpur. In view of this my querry is that who will clear the consinment in mumbai port and who will pay the unloading, terminal transfer and cusyum clearance charges at mumbai port !

Alex: great articule, thanks - it's easy to get more knowledge with this website! :)

kahina: who said that the CIF is under sea shipment only? i used to ship goods under CIF terms by plane.

Admin: Hi Kahina, Thanks for pointing our this error and we, the team of howtoexportimport.com deeply regret for this misguidance. The details have been modified now. Thanks once again for your support.

Mohanad: So thats mean cif can use for sea and air ? And same for cip ?

Abhay Jadhav: Dear Admin, Please refer the International Chamber of Commerce (ICC) website for the difference between CIF and CIP. It clearly states that the "CIF" incoterms uses for Sea and Inland waterway transport.

darren: Help - I have purchased around 10 items from china recently and 8 were sent air freight without any difficulty. 1 is cif arriving in Folkestone and I have been hit with invoices for lots of additional charges and will start to incur warehouse fees if I don't pay these. The items are worth £400 and cif costs are around £700 - 800 so far. Can I abandon the goods, refuse delivery and lose my initial costs or am liable for the cif costs. The items are not essential and I would rather lose £400 than pay a further £800

hrdik: I have a query about CIP terms (https://howtoexportimport.com/Difference-between-CIP-and-CIF-507.aspx). A customer is asking me to export goods under CIP terms, but according to my logistics carrier Malca-Amit, CIP terms is not recognised by Indian Customs, and that the invoice must state either C&F or CIF. Please note that the goods in consideration are VALUABLE CARGO. Please advise.

Manwinder: Cif and cip difference query - cif is for sea or air and cip is for by road ? -insu to be covered by seller upto .......for cif and cip

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