To create or assign a clipping path, choose Item > Clipping, and then choose an option from the Type drop-down menu:

• Choose Item to crop an image to the box boundaries. Choosing Item does not create a clipping path; it simply crops the picture to its box.
• Choose Embedded Path to clip a picture around a path already embedded in the picture file. Choose a path from the Path drop-down menu if the picture file contains more than one embedded path.
• Choose Alpha Channel to clip a picture around an alpha channel already embedded in a picture file. Choose an alpha channel from the Alpha drop-down menu if the picture file contains more than one embedded alpha channel. Note that using a clipping path around an alpha channel will create a hard edge rather than a blended effect. If you want a semi-opaque blend, use an alpha mask. (See “Working with alpha masks.”)
• Choose Non-White Areas to create a clipping path based on the picture’s subject. Depending on the image and the value in the Threshold field, the clipping path will outline a non-white figure within a larger white or near-white image (or vice versa). The Non-White Areas option works best when the unwanted parts of the image are much lighter than the subject itself (or vice versa).
• Choose Picture Bounds to clip a picture around the rectangular “canvas area” of the imported picture file. This includes any white background areas saved with the original picture file. Enter values in the Top, Left, Bottom, and Right fields to determine the outset of the clipping path from the picture’s boundaries. Positive values increase the outset, and negative values decrease the outset.

Clipping tab of the Modify dialog box