Define the shipping term CIP.

Posted on 11 June 2022 Category : For Beginners

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

Under this term, the Seller pays transportation and insurance to destination. The seller assumes all risk includes clears the goods for export and until the goods are delivered to the carrier at the place of shipment. The seller must pay the cost of carriage and procure the minimum insurance until the freight reaches named place of destination.

This term can be used for any mode of transportation.

Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees, Ocean/Air Freight.

The risk passes to the buyer from the seller after the goods have been delivered to the custody of the carrier in accordance with contract.

Obligation and expenses of Buyer:-

All responsibilities and charges must incurs by Buyer includes Destination Port Charges, Import Customs clearance, Import Duties and Taxes, Delivery cartage to Final Destination.

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