CIP INCOTERMS (Carriage and Insurance Paid to)
CIP incoterms or “Carriage and Insurance Paid to” states that the seller is responsible for bringing the goods to destination and payment of the cost of international freight as well as insurance costs. Unlike other Incoterms the transfer of risk is made at the time that the goods have been loaded on board the means of transport.
The FCA Incoterm is versatile as in can be used irrespective of the mode of transport.
BUYER’S OBLIGATIONS UNDER CIP
- Delivery of goods and documents required
- Packaging and wrapping
- Inland transport in the country of origin
- Customs at origin
- Exit charge
- International freight
SELLER’S OBLIGATIONS UNDER CIP
- Payment of the goods
- Arrival expenditures
- Customs on arrival
- Inland transport at the destination country
- Payment of fees