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
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THE
BUYER'S OBLIGATIONS
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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.
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B1
Payment of the price
The
buyer must pay the price as provided in the contract
of sale
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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, all customs formalities necessary
for the export of the goods.
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B2
Licenses, authorizations 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.
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B3
Contracts of carriage and insurance
a)
Contract of carriage No obligation.
b) Contract of insurance No obligation.
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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.
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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.
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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 beeh delivered in accordance with A4.
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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, 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.
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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 sellers 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.
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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.
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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.
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A8
Proof of delivery, transport document or equivalent
electronic message
The
seller must provide the buyer at the sellers 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.
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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
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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.
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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 tor 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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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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