CIF AND CIP

CIF "Cost, Insurance & Freight" means the seller deliver when the goods pass the ship rail in the port of shipment. The seller pay the cost & freight to named port of destination. Additional cost due to event occurring after the time of delivery, are transfer to buyer. (for sea shipment only)

CIP "Carriage, Insurance paid to" means the seller deliver the goods to carrier. The seller must in additon pay the cost of carriage necessary to bring the goods to the named destination.(for air, road, railway & sea shipment)

Different :
1. Mode of transport : CIF (Sea shipment) CIP (Air, Road, Railway, Sea shipment)
2. Risk :
CIF (Risk transferred from seller to buyer after the goods pass to the ship rail)
CIP (Risk transferred from seller to buyer after goods delivery to carrier)

CIF = CIP

If we say a shipment includes COST, INSURANCE, FREIGHT:

We call it CIP for AIR shipment.
We call it CIF for SEA Shipment.

Therefore the only difference is the model of transportation.