B-6-21- Incoterms © 2010 cip


CIP, Carriage and Insurance Paid, is one of the 11 Incoterms © 2010



Incoterms 2010 ©
 CFR   CIF   CIP   CPT   DAP   DAT   DDP   EXW   FAS   FCA   FOB  

The Incoterms © CIP 2010 is an Incoterms © where the main carriage is paid by the exporter.

The Incoterms © CIP 2010 is a "main carriage unpaid" Incoterm ©

The Incoterms © CIP 2010 is used for multimodal transport

6-21-1- Summary

The Incoterms © CIP is similar to the Incoterms © CPT, with the exception that the exporter must additionally provide transport insurance. The exporter contracts for the carriage and insurance, while the importer pays the remaining costs.

Under this Incoterm ©, the exporter is only obligate to acquire minimal insurance. For better coverage, the importer must obtain more insurance.

6-21-2- From the viewpoint of the importer

Les risques et frais additionnels postérieurs à la livraison de la marchandise doivent être supportés par l'importateur. The importer is responsible for the risks and additional costs, post-delivery. The import Customs duties must be paid by the importer, who is responsible for the choice of transport. The importer is responsible for the risks of loss from the point at which the goods have been delivery. The importer is responsible for unloading and associated costs.
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6-21-3-  Advantages for the importer

Extensive knowledge of local, home-country operations leads to higher-quality services and beneficial price-points. In this case, insurance is assured and additional insurance coverage can be obtained depending on additional risks.

6-21-4-  From the viewpoint of the exporter

The exporter has delivered the goods and has made them available to the appointed carrier. The exporter must still pay transportation costs for the delivery of the goods to the named destination. The exporter must provide all the necessary documents to ensure that the delivery of the goods is carried out satisfactorily by the importer.

6-21-5- Advantages for the exporter

This Incoterm © is of interest to the exporter with good knowledge of the logistical capabilities in its own country. With control of the operation, the importer is fittingly left responsible for unloading and associated costs. The importer also pays the import Customs duties. It can be beneficial, especially for the importer that is already in possession of the proper skill set, or a competent freight forwarder. The importer pays for relatively inexpensive insurance, providing coverage against damage.

6-21-6- The point of ownership transfer: when goods are loaded for initial transport


Note the delivery


6-21-7- Incoterms © CIF 2010: Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Loading at the factory  Exporter  Exporter
 Pre-transport  Exporter  Exporter
 Export customs  Exporter  Exporter
 Handling on departure  Exporter  Importer
 Main transport  Exporter  Importer
 Transportation insurance  Exporter  
 Handling on arrival  Importer  Importer
 Import customs  Importer  Importer
 Post-transport  Importer  Importer
 Unloading at the factory  Importer  Importer