CIP CARRIAGE AND INSURANCE PAID TO (... named
place of destination)
«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.
THE SELLER'S OBLIGATIONS |
THE BUYER'S OBLIGATIONS |
A1 Provision of goods in conformity with the contract
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 required by the contract. |
B1 Payment of the price
The buyer must pay the price as provided in the contract
of sale. |
A2 Licences, authorisations and formalities
The seller must obtain at his own risk and expense any
export licence or other official authorisation and carry out,
where applicable (54, all customs formalities necessary for
the export of the goods. |
B2 Licences, authorisations and formalities
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
a) Contract of carriage
The seller must contract on usual 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 manner. 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.
b) 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 Clauses (Institute of London
Underwriters) or any similar set of clauses. The duration of
insurance cover shall be in accordance with B5 and B4.
When required by the buyer, the seller shall provide at
the buyer's expense war, strikes, 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. |
B3 Contracts of carriage and insurance
a) Contract of carriage
No obligation.
b) Contract of insurance
No obligation. |
A4 Delivery
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. |
B4 Taking delivery
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. |
A5 Transfer of risks
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. |
B5 Transfer of risks
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
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 from A3 b); and
• where applicable (58, the costs of customs
formalities necessary for export as well as all duties, taxes
or other charges payable upon export, and for their transit
through any country if they were for the seller's account
under the contract of carriage. |
B6 Division of costs
The buyer must, subject to the provisions of A3 a), pay
• all costs relating to the goods from 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
were 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 from 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. |
A7 Notice to the buyer
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. |
B7 Notice to the seller
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. |
A8 Proof of delivery, transport document or equivalent
electronic message
The seller must provide the buyer at the seller's
expense, if customary, with the usual transport document or
documents (for example a negotiable bill of lading, a
non-negotiable sea waybill, 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.
Where the seller and the buyer have agreed to communicate
electronically, the document referred to in the preceding
paragraph may be replaced by an equivalent electronic data
interchange (EDI) message. |
B8 Proof of delivery, transport document or equivalent
electronic message
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
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. |
B9 Inspection of goods
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. |
A10 Other obligations
The seller must render the buyer at 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. |
B10 Other obligations
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 his 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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