07 Benefits for exporters when delivery terms are on CIP basis

CIP terms of delivery, Here are those advantages to Seller

Now we can chew over CIP terms of delivery and its advantages to an exporter in international business.  Advantages for an exporter under CIP contract of carriage is explained one by one:


01. Under CIP rules in export import trade, the exporter is liable to undertake the risks of movement of goods only till the goods are loaded in to the main carrier.  So the exporter holds minimum risk under CIF delivery rules. However, minimum insurance cover is arranged till named destination by exporter for movement of goods.

02. The seller undertakes main carriage freight arrangements (main carriage) under CIP terms, in turn the seller control over main carriage by nominating a shipping carrier as per his own decision and choice.

03.Under CIP delivery rules, in an import export business, the exporter arranges minimum insurance up to the named place contracted with the buyer.   So, the exporter can make sure on safety of goods by contracting with a marine insurance company.

04. In an import export trade, exporter under CIP terms need not worry about government rules and regulations for import process, import duties, and other import regulations in buyer’s country.

05.Under CIP delivery rules, the seller is not responsible to undertake the risks and costs of moving goods from destination named port to final destination of buyer.

06. Since exporter decides shipping carrier of main carriage under CIP, the exporter holds rights with shipping carrier for getting Export General Manifest (EGM) details and other shipping tracking information.

07. The unloading risk and cost under CIP terms of delivery is with the importer and the seller of goods is free from any loss or damage of goods when unloading at final destination of buyer.


Hope the details given about merits of CIP to a seller help you to strengthen your knowledge about international commercial terms. 

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