Advantages for importer under CIP delivery terms
Hope you are reading our other posts about inco terms 2020 digging deeply in to each terms of delivery and pointing out the pros and cons for both exporters and importers under each delivery term.
Here let us talk over the merits from a buyer point of view under CIP terms.
Here are those advantages for importer under CIP terms:
01.Under CIP terms, the seller pays the cost till the named destination port. So, the importer is free from paying costs till the named place contracted with the exporter in international business.
02. The pre carriage process is undertaken by the exporter under CIP delivery rules and importer does not want to experience either the cost or risk of pre carriage in international business.
03. The importer does not want to know and experience the rules and regulations of exporting country on export customs clearance, documentation, customs clearance and export taxes if any as the exporter takes care of them under CIP delivery rules in export import trade.
04. Under CIP delivery terms in export import business, once the goods arrived at importer’s country at the named place contracted, the further movement of goods to his premises is undertaken by him. So he can monitor the shipping tracking till arrival of goods to him.
05.Under CIP deliver terms, since the seller is responsible to undertake export customs clearance and taxes if any, the buyer (importer in export import trade) is free from facing port congestion, vessel shortage, vessel cancellation etc. in exporter’s country.
06. Since the exporter takes care of minimum insurance on movement of goods under CIP terms of delivery, the importer is free from covering insurance. However, if all risks cover is required, the importer and exporter may mutually agree under their sale contract.
Hope the above information about CIP delivery terms and its strengths from importers point of view.
Would you like to add more about this topic on advantages for buyers under CIP terms of delivery? Share your thoughts below: