CIF (Cost, Insurance and Freight)

Dictionary

The international trade term CIP (Carriage and Insurance Paid to) is part of the Incoterms and describes the case where the seller assumes the costs and minimum insurance of the freight up to the destination, but not the risk of loss or damage once it has been handed over to the first carrier. Overall, CIP is very similar to CPT, with the difference of additional insurance coverage. CIP can be applied to all types of transportation.

Dictionary

CPT (Carriage Paid To) is an international trade term and states that the seller assumes all freight costs up to the previously named destination. However, the risk of loss or damage is no longer covered from the first carrier, so the buyer must take out appropriate insurance himself. CPT is part of the Incoterms and can be used for any type of transportation.

Dictionary

DAP (Delivered at Place) is a trade term of the international Incoterms. DAP states that the seller assumes all costs and insurance of the freight until delivery to the destination. Risk of loss or damage passes to the buyer only after the goods have been placed at the destination for unloading. Unloading and import duties are usually borne by the buyer. The advantage of this clause is that the seller assumes full responsibility for logistics. It can also be applied to all types of transportation.

Dictionary

DDP (Delivered Duty Paid) is one of the best known international trade clauses as it is the one-stop solution for buyers. This clause states that the seller assumes all costs and risks of the complete delivery and logistics up to the delivery to the final destination. This includes any customs duties and taxes as well as insurance and transportation. The buyer therefore simply has to take delivery of the goods, and thus has the most convenient variant of the trade term. This clause is particularly often used when the buyer has no experience of the legal and logistical requirements of international transportation.