CPT

Carriage paid to (. . . named place of destination)

"Carriage paid to . . ." means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage, by rail, road, sea, air, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
The CPT term requires the seller to clear the goods for export. This term may be used by any mode of transport including multimodal transport.

CIP

Carriage and insurance paid to (. . . named place of destination)

"Carriage and insurance paid to . . ." means that the seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIP term the seller is only required to obtain insurance on minimum coverage.
The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport.