What Is CIP

                                     





                                                       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 packaging and wrapping, customs clearance at the country of origin, pay for the international freight, produce the documents required for the buyer and get customs clearance at the origin of the shipment. These rules are more or less same like the other incoterms.

The buyer's obligations is also the same as that of other incoterms like payment of the goods, payment of arrival expenditures, customs clearance at the destination country and payment of fees. Also, the buyer needs to pay for the inland transportation at the destination country.
READ MORE...Freight Forwarding Online, Buy & Sell Ocean Freight,Tronslog

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