| CIP, Carriage
and insurance paid to "Carriage and insurance
paid to…" means that the seller delivers the goods to the carrier nominated by
him, but the seller must in addition pay the cost of carriage necessary to bring the goods
to the named destination. This means that the buyer bears all risks and any additional
costs occurring after the goods have been so delivered. However, in CIP the seller also
has to procure insurance against the buyer’s risk of loss of or damage to the goods
during the carriage.
Consequently,
the seller contracts for insurance and pays the insurance premium. The buyer should note
that under the CIP term the seller is required to obtain insurance only on minimum cover.
Should the buyer wish to have the protection of greater cover, he would either need to
agree as much expressly with the seller or to make his own extra insurance arrangements.
"Carrier"
means any person who, in a contract of carriage, undertakes to perform or to procure the
performance of transport, by rail, road, air, sea, 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 CIP term requires the seller
to clear the goods for export.
This term
may be used irrespective of the mode of transport, including multimodal transport. |
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| A |
The seller’s obligations |
B |
The buyer’s obligations |
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| A1 |
Provision of goods in
conformity with the contract |
B1 |
Payment of the price |
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| |
The seller must provide the
goods and the commercial invoice, or its equivalent electronic message, in conformity with
the contract of sale and any other evidence of conformity which may be require by the
contract. |
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The buyer must pay the price as
provided in the contract of sale. |
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| A2 |
Licences, authorisations and
formalities |
B2 |
Licences, authorisations and
formalities |
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The seller must obtain at his
own risk and expense any export licence or other official authorisation and carry out,
where applicable, all customs formalities necessary for the export of the goods. |
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The buyer must obtain at his
own risk and expense any import licence or other official authorisation and carry out,
where applicable, all customs formalities for the import of the goods and for their
transit through any country. |
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| A3 |
Contracts of carriage and
insurance |
B3 |
Contracts of carriage and
insurance |
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- contract of
carriage
The
seller must contract unusual terms at his own expense for the carriage of the goods to the
agreed point at the named place of destination by a usual route and in a customary matter.
If a point is not agreed or is not determined by practice, the seller may select the point
at the named place of destination which best suits his purpose.
- contract of
insurance
The
seller must obtain at his own expense cargo insurance as agreed in the contract, such that
the buyer, or any other person having an insurable interest in the goods, shall be
entitled to claim directly from the insurer and provide the buyer with the insurance
policy or other evidence of insurance cover.
The
insurance shall be contracted with underwriters or an insurance company of good repute
and, failing express agreement to the contrary, be in accordance with minimum cover of the
Institute Cargo Clausues (Institute of London Underwriters) or any similar set of
clausules. The duration of insurance cover shall be in accordance with B4 and B5. When
required by the riots and civil commotion risk insurances if procurable. The minimum
insurance shall cover the price provided in the contract plus ten per cent (i.e. 110%) and
shall be provided in the currency of the contract. |
|
- contract of
carriage
No
obligation.
- contract of
insurance
no
obligation |
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| A4 |
Delivery |
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Taking delivery |
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The seller must deliver the
goods to the carrier contracted in accordance with A3 or, if there are subsequent carriers
to the first carrier, for transport to the agreed point at the named place on the date or
within the agreed period. |
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The buyer must accept delivery
of the goods when they have been delivered in accordance with A4 and receive them from the
carrier at the named place. |
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| A5 |
Transfer of risks |
B5 |
Transfer of risks |
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| |
The seller must, subject to the
provisions of B5, bear all risks of loss of or damage to the goods until such time as they
have been delivered in accordance with A4. |
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The buyer must bear all risks
of loss of or damage to the goods from the time they have been delivered in accordance
with A4. The buyer must, should he fail
to give notice in accordance with B7, bear all risks of the goods from the agreed date or
the expiry date of the period fixed for delivery provided, however, that the goods have
been duly appropriated to the contract, that is to say, clearly set aside or otherwise
identified as the contract goods. |
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| A6 |
Division of costs |
B6 |
Division of costs |
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The seller must, subject to the
provisions of B6, pay All costs relating to the goods
until such time as they have been delivered in accordance with A4 as well as the freight
and all other costs resulting from A3 a), including the costs of loading the goods and any
charges for unloading at the place of destination which were for the seller’s account
under the contract of carriage; and
The costs
of insurance resulting form A3 b); and
Where
applicable, the costs of customs formalities necessary for export as well as all duties,
taxes or other charges payable upon export, an for their transit through any country if
they were for the seller’s account under the contract of carriage. |
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The buyer must, subject to the
provisions of A3 a), pay All costs relating to the goods
form the time they have been delivered in accordance with A4; and
All costs
and charges relating to the goods whilst in transit until their arrival at the agreed
place of destination, unless such costs and charges were for the seller’s account
under the contract of carriage; and
Unloading
costs unless such costs and charges are for the seller’s account under the contract
of carriage; and
All
additional costs incurred if he fails to give notice in accordance with B7, for the goods
form the agreed date or the expiry date of the period fixed for dispatch, provided
however, that the goods have been duly appropriated to the contract, that is to say,
clearly set aside or otherwise identified as the contract goods; and
Where
applicable, all duties, taxes and other charges as well as the costs of carrying out
customs formalities payable upon import of the goods and for their transit through any
country unless included within the cost of the contract of carriage. |
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| A7 |
Notice to the buyer |
B7 |
Notice to the seller |
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The seller must give the buyer
sufficient notice that the goods have been delivered in accordance with A4, as well as any
other notice required in order to allow the buyer to take measures which are normally
necessary to enable him to take the goods. |
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The buyer must, whenever he is
entitled to determine the time for dispatching the goods and/or the destination, give the
seller sufficient notice thereof. |
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| A8 |
Proof of delivery, transport
document or equivalent electronic message |
B8 |
Proof of delivery, transport
document or equivalent electronic message |
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| |
The seller must provide the
buyer at the seller’s expense, if customary, with the usual transport document or
document (for example a negotiable bill of lading, an on-negotiable sea way bill, an
inland waterway document, an air waybill, a railway consignment note, a road consignment
note, or a multimodal transport document) for the transport contracted in accordance with
A3. |
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The buyer must accept the
transport document in accordance with A8 if it is in conformity with the contract. |
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| A9 |
Checking – packaging
– marking |
B9 |
Inspection of goods |
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The seller must pay the costs
of those checking operations (such as checking quality, measuring, weighing, counting)
which are necessary for the purpose of delivering the goods in accordance with A4. The seller must
provide at his own expense packaging (unless it is usual for the particular trade to send
the goods of the contract description unpacked) which is required for the transport of the
goods arranged by him. Packaging is to be marked appropriately. |
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The buyer must pay the costs of
any pre-shipment inspection except when such inspection is mandated by the authorities of
the country of export. |
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| A10 |
Other obligations |
B10 |
Other obligations |
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The seller must render the
buyer a the latter’s request, risk and expense, every assistance in obtaining any
documents or equivalent electronic messages (other than those mentioned in A8) issued or
transmitted in the country of dispatch and/or of origin which the buyer may require for
the import of the goods and for their transit through any country. The seller must
provide the buyer, upon request, with the necessary information for procuring any
additional insurance. |
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The buyer must pay all costs
and charges incurred in obtaining the documents or equivalent electronic messages
mentioned in A10 and reimburse those incurred by the seller in rendering the assistance in
accordance therewith. The buyer must provide the
seller, upon request, with the necessary information for procuring any additional
insurance. |
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