Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Certified Supply Chain Professional exam. Explore multiple-choice questions with detailed explanations. Perfect your skills and ensure success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.


What is the primary responsibility of the seller under CIP terms?

  1. Seller delivers goods to the buyer

  2. Seller pays for carriage and insurance

  3. Seller pays for costs and freight of the goods

  4. Seller takes all costs

The correct answer is: Seller pays for carriage and insurance

Under CIP (Carriage and Insurance Paid to) terms, the primary responsibility of the seller is to pay for carriage and insurance for the goods being transported to a specified destination. This means that the seller must arrange and cover the costs associated with shipping the goods and obtaining necessary insurance to protect against loss or damage during transit. CIP terms place a significant burden on the seller, as they are not only responsible for delivering the goods but must also ensure that the goods are insured for the journey. This insurance is critical because it mitigates risk for both the seller and the buyer, ensuring that financial protections are in place should unforeseen circumstances affect the shipment. While the seller also has obligations to deliver the goods and handle certain costs, the defining characteristic of CIP is the provision that the seller bears the responsibility for both freight and insurance, highlighting the importance of risk management in international shipping contracts.