CIP vs DPU – who pays for what?
CIP is Carriage and Insurance Paid To and DPU is Delivered at Place Unloaded. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
CIP and DPU allocate two costs differently. Under CIP, the seller covers insurance; under DPU, unloading at destination. The two rules also differ in the point at which risk passes to the buyer.
- Insurance
- CIPSellerDPUNo obligation
- Unloading at destination
- CIPBuyerDPUSeller
- Risk passes
- CIPOn handover to the carrier in the country of dispatchDPUAt the place of destination, after unloading
Full cost breakdown
| Cost | CIP | DPU |
|---|---|---|
| Export clearance | Seller | Seller |
| Transport to the port or terminal | Seller | Seller |
| Loading for main carriage | Seller | Seller |
| Main carriage (freight) | Seller | Seller |
| Insurance | Seller | No obligation |
| Unloading at destination | Buyer | Seller |
| Import clearance | Buyer | Buyer |
| Import duty and VAT | Buyer | Buyer |
| Risk passes | When the seller hands the goods over to the first carrier – even though the seller pays for transport and insurance. | At the place of destination, after unloading. |
| Mode of transport | Any mode of transport (sea, rail, air, road) | Any mode of transport (sea, rail, air, road) |
Notes
- Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.
- Insurance: only the seller is obliged to insure, and only under CIF (at least Institute Cargo Clauses (C), 110% of the value) and CIP (Institute Cargo Clauses (A), 110% of the value). Under the other rules, nobody has to insure the goods – but once risk has passed, any loss is borne by the buyer.
What to watch for when importing from China
CIP Carriage and Insurance Paid To
In Incoterms 2020, CIP requires broader insurance than CIF: Institute Cargo Clauses (A) – “all risks” – at 110% of the value of the goods. Even so, the risk passes to you in China, when the goods are handed over to the carrier. The policy protects you, but the supplier takes it out – ask for a copy before shipment.
More about CIP →DPU Delivered at Place Unloaded
This is the only rule under which the supplier unloads the goods at your premises. The supplier therefore needs someone on site to arrange this, and the place must allow unloading. It is rarely used for imports from China. Import clearance, duty and VAT are your responsibility.
When to use CIP and when to use DPU?
- CIP – for any mode of transport, when the supplier arranges carriage and broad insurance cover (Clauses (A)), while you handle customs clearance in Poland.
- DPU – when the supplier is to deliver and unload the goods (e.g. at a terminal or warehouse), and you handle import clearance.
Has your supplier quoted a price including transport?
Compare it with our offer for transport from China – by rail, sea or air – with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.
Request a quoteFAQ
What is the main difference between CIP and DPU?
CIP and DPU allocate two costs differently. Under CIP, the seller covers insurance; under DPU, unloading at destination. The two rules also differ in the point at which risk passes to the buyer.
Where does risk pass to the buyer under CIP?
When the seller hands the goods over to the first carrier – even though the seller pays for transport and insurance.
Where does risk pass to the buyer under DPU?
At the place of destination, after unloading.
Can CIP and DPU be used for rail freight from China?
Yes. CIP and DPU can be used with any mode of transport: sea (including containers), rail, air and road.
Compare other pairs
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.