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                                                What Is CIP CIP is acronym for "Carriage and Insurance Paid to". It is not an exclusive incoterm and can be used where more than one mode of transport is involved for transportation of goods. It can be used for any transport mode. The seller under CIP have to arrange for the transportation to the place mentioned in the contract and also pay for the freight cost and insurance cost. Hence the name carriage and insurance paid to. Like CIF, the point of transfer of risk is when the goods have been loaded on the board of the means of transport. As the seller is under obligation to arrange for the insurance of the goods the level of the cover might be commercially unrealistic. So the level of the insurance must be mentioned somewhere in the contract. The seller is under obligations to deliver the goods, its packag...

                                      WHAT INCOTERMS DO NOT INSURE An important aspect while negotiating incoterms traders should keep in mind is that incoterms do not cover for the insurance of the goods being transported. Incoterms also does not guarantee property rights or breach of contract. So these terms must be included within the contract of sale. Also as incoterms do not cover insurance so the seller or the buyer has to bear the cost of it. This has to be done according to the incoterms. So these are brief terms that incoterms do not cover and must be kept in mind. KNOW MORE ABOUT- What Incoterms Do Not Insure READ MORE- Freight Forwarding Online, Buy & Sell Ocean Freight | Tronslog.com

                          WHEN SHOULD INCOTERMS COME IN PLAY Now as we have discussed and learnt about the incoterms we should now try to learn their usage, so that we can use them at the right time. Buyers and sellers must negotiate the incoterms before the contract is being made. Also the parties involved in international trade must understand that incoterms vary in different countries. They must look specifically for any such changes that might disrupt the flow of goods and cause loss to their deal. However incoterms do not guarantee the ownership of the goods it merely tends to cater to the shipping practices followed in different countries. Buyers and traders must be aware of any such foul play who use incoterms to claim illegitimate ownership of goods. KNOW MORE ABOUT- When Should Incoterms Come In Play READ MORE- Freight Forwarding Online, Buy & Sell Ocean Freight | Tronslog.com

                                        WHAT IS CIF CIF is short form of “Cost, Insurance and Freight”. Like the CFR this incoterm is also exclusively used for shipping. Also like the CFR CIF is used for bulk goods and non containerised shipments. This indicates that the seller is responsible for the cost as well as the freight of the goods to the destination port which is decided by the buyer. In addition to all of this the seller must also provide insurance for the goods being transported. In CIF the risk transfer point is also different from other incoterms. The risk transfer point is not the same cost transfer point as is the case with other incoterms. Under CIF the risk is transferred when the goods get loaded on the ship at the origin of the shipment. The seller is obliged to give insurance to the goods and deliver the shipment and the documents required. He or she must...

                                              WHAT IS DAT DAT stands for “Delivered at Terminal” and like Dap it is also a new incoterm that has been incorporated or rather it has replaced two old incoterms in the latest version of incoterms i.e incoterm 2000. It has replaced the now outdated DES (Delivery at Ship) and DEQ (Delivery at Quay) incoterms. DAT incoterm is used where there is more than one transport mode. In this incoterm the seller is obliged to arrange for carriage and for delivering the goods, unloaded from the arriving conveyance, at the named place. It is to note that the difference between DAT and DAP is that in DAT the seller is responsible for unloading the goods at the named place and in DAP the seller is not under any such obligation. Once the goods have been unloaded the risk transfers from the seller to the buyer. The seller’s oblig...

                                       WHEN DO YOU CHALLENGE ADVICE Frequently some traders use regular kind of incoterms while shipping. So you must be very clear to pitch them your set of incoterms before the deal goes through or the contract is negotiated. Also be prepared to be surprised if they do not agree with your set of incoterms. However if you feel that the incoterm is the most appropriate for the shipment then you can make them see the pros and cons and let them decide the incoterms. The bottom line is certain dealers prefer only a set of incoterms that they are really comfortable with. So it is the best to not argue with them and if you do not agree then just look for some other buyers. KNOW MORE ABOUT- When do you challenge advice READ MORE- Freight Forwarding Online, Buy & Sell Ocean Freight | Tronslog.com

                                           WHAT IS DAT DAT stands for “Delivered at Terminal” and like Dap it is also a new incoterm that has been incorporated or rather it has replaced two old incoterms in the latest version of incoterms i.e incoterm 2000. It has replaced the now outdated DES (Delivery at Ship) and DEQ (Delivery at Quay) incoterms. DAT incoterm is used where there is more than one transport mode. In this incoterm the seller is obliged to arrange for carriage and for delivering the goods, unloaded from the arriving conveyance, at the named place. It is to note that the difference between DAT and DAP is that in DAT the seller is responsible for unloading the goods at the named place and in DAP the seller is not under any such obligation. Once the goods have been unloaded the risk transfers from the seller to the buyer. The seller’s obligations are...

          When The Choice Of Incoterms Is Limited There are scenarios in shipping where the buyer and seller have the limited choice of incoterms. It happens when the sale is completed alongside a letter of credit or documentary credit. This initiates a sequence that involves the seller providing copies of several documents to the bank including the landing bill or the airway bill. This happens in a scenario where there is limited or no trust between the seller and the buyer. This means that only C terms can be used as EXW is not applicable because it demands the supplier to be paid before pickup. Also the F terms are not applicable as if the buyer cancels the international transit the seller will not have the required documents to present to the bank. D terms is also not applicable as the seller bears all costs of transportation and if buyer cancels out at the last minute then that will be a huge loss for the seller. KNOW MORE ABOUT-...