CIP - Carriage and Insurance Paid Тo (named place of destination)

The meaning of it is that the delivery is completed for the supplier when customs procedures for export were completed, paid insurance policy and the goods were transferred to the forwarder for transportation to a specific destination provided for in the agreement. Sum insured must be 110% of the value of the agreement and in the currency of the international agreement. All risks associated with the transportation of goods pass from supplier to recipient after delivery of the goods to the forwarder. CIP is concluded on the basis of an international contract of sale, which indicates all the responsibilities and what expenses each party bears. As a rule, the supplier bears all responsibilities with the delivery, insurance policy and clearance of goods to a specific destination.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.

CIP

Same as CPT, but the seller is obligated to secure all-risk insurance coverage.

Seller’s Obligations

Goods, commercial invoice and documentation
Export packaging and marking
Export licenses and customs formalities
Pre-carriage and delivery
Loading charges
Cost of delivery at named place of destination
Proof of delivery
Cost of pre-shipment inspection
All-risk insurance coverage

Buyer’s Obligations

Payment for goods as specified in sales contract
Import formalities and duties
Cost of import clearance pre-shipment inspection