CPT or CIP for air freight from China?
Choose CPT if you will arrange and check your own cargo cover; choose CIP if you want the supplier to arrange insurance for your transit risk. Separate carrier handover from the destination they pay to reach, and check the policy before dispatch. Ask Cambridge China Bridge to review the supplier’s transport and insurance documents.
Choose who will arrange the insurance
HMRC describes CPT as delivery to the seller’s nominated carrier or another nominated person, with the seller paying carriage to the named destination. CIP adds seller-arranged insurance against the buyer’s loss or damage during carriage. The practical choice is whether you want to control the cargo policy yourself or accept cover arranged by the supplier after checking it.
Use CPT when your broker has confirmed suitable cover for this shipment. Consider CIP when the supplier can provide insurance documents you and your broker can review before dispatch. For the broader allocation of costs and responsibilities, read Incoterms explained.
Record handover separately from destination
HMRC’s description separates delivery to the carrier from payment for carriage to the destination. Its CIP wording also describes the insured transit exposure as the buyer’s risk. The practical reading is to plan protection from carrier handover, rather than assume the supplier carries your risk until arrival. Have the supplier confirm the precise risk-transfer point in the agreed contract.
Ask where the goods enter the carrier’s custody, who accepts them and what receipt records acceptance. Separately name the destination paid for: an airport cargo terminal, a forwarder’s depot or your delivery address. If collection from the factory precedes the flight, ask whether that collection is the relevant handover. Keep the acceptance record alongside the air waybill.
Check the policy behind the CIP label
Ask your broker to confirm the insurance requirements under the agreed CIP rule edition and whether extra protection is needed. Treat general guidance as a prompt to investigate, not as proof that the offered policy suits your goods. Ask your broker to check the agreed rule edition and insurance clauses against the actual policy; do not accept a generic statement that the shipment is insured.
Request the policy or certificate, insurer’s details, insured goods, insured value and currency, excess, exclusions and coverage start and end points. Ask specifically about collection, transfers, temporary storage and onward delivery. Confirm who can claim, which documents they need and whom to contact. Our cargo insurance guide covers the wider policy review.
Separate cargo cover from forwarder cover
Official UK freight-forwarding guidance says liability insurance does not insure the goods themselves. A supplier’s statement that its forwarder is insured therefore does not establish cargo cover for your shipment. Ask for evidence of the cargo policy rather than relying on the forwarder’s business insurance.
For CPT, ask your broker to confirm cover begins at the agreed handover and continues through the route you need. For CIP, ask the supplier’s insurer to confirm the same route in writing. If the supplier-arranged policy ends before your warehouse, resolve the remaining leg before dispatch. Avoid arranging overlapping policies without discussing them with your broker.
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Approve a complete shipment instruction
Before authorising dispatch, collect a written agreement showing the term and rule edition, carrier handover, paid destination, transport route and insurance arrangements. Ask the supplier to itemise destination handling, storage, clearance, unloading and onward delivery, stating who pays each charge. Supplier-booked air freight should still give you a clear record of what you are buying.
Compare CPT with your own insurance against CIP with the proposed supplier policy, using the same destination and included services. Keep the quotation, booking, acceptance record and insurance documents together. Use sea versus air freight for the transport-mode decision; this check concerns the responsibilities within your chosen air shipment. Cambridge China Bridge’s staff in China can help obtain and reconcile the supplier’s documents.
Frequently asked questions
Should I choose CPT or CIP for air freight from China?
Choose CPT when your broker confirms your own cargo cover. Consider CIP when you want supplier-arranged insurance and can review its documents before dispatch. Compare the same destination and services.
Does the named CPT destination mean risk passes there?
HMRC separates carrier delivery from the destination paid for. Plan insurance around carrier handover and confirm the precise risk-transfer point in your contract.
Does CIP mean my goods are fully insured?
The label alone does not establish suitable cover. Check the rule edition, policy clauses, insured value, exclusions, excess, route and claim arrangements with your broker.
Is the forwarder’s insurance enough for my shipment?
Ask what policy it is. Official UK guidance says liability insurance does not insure the goods themselves. Request evidence of cargo cover identifying your shipment and route.