CARRIAGE AND
INSURANCE PAID TO
(... named place of destination)
«Carriage and Insurance paid to...» means
that the seller delivers the goods to the carrier nominated by him but the
seller must in addition pay the cost of carriage necessary to bring the
goods to the named destination. This means that the buyer bears all risks
and any additional costs occurring after the goods have been so delivered.
However, in CIP the seller also has to procure insurance against the
buyer's risk of loss of or damage to the goods during the carriage.
Consequently, the seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements. «Carrier» means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.
Consequently, the seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements. «Carrier» means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.
THE SELLER'S OBLIGATIONS
THE BUYER'S OBLIGATIONS
A1 Provision of goods in conformity with the
contract
The seller must provide the goods and the commercial invoice, or its
equivalent electronic message, in conformity with the contract of sale and
any other evidence of conformity which may be required by the contract.
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
A2 Licences, authorisations and formalities
The seller must obtain at his own risk and expense any export licence
or other official authorisation and carry out, where applicable (54, all
customs formalities necessary for the export of the goods.
B2 Licences, authorisations and formalities
The buyer must obtain at his own risk and expense any import licence
or other official authorisation and carry out, where applicable, all customs formalities for the import of the goods
and for their transit through any country.
A3 Contracts of carriage and insurance
a) Contract of carriage
The seller must contract on usual terms at his own expense for the
carriage of the goods to the agreed point at the named place of
destination by a usual route and in a customary manner. If a point is not
agreed or is not determined by practice, the seller may select the point
at the named place of destination which best suits his purpose.
b) Contract of insurance
The seller must obtain at his own expense cargo insurance as agreed
in the contract, such that the buyer, or any other person having an
insurable interest in the goods, shall be entitled to claim directly from
the insurer and provide the buyer with the insurance policy or other
evidence of insurance cover.
The insurance shall be contracted with underwriters or an insurance
company of good repute and, failing express agreement to the contrary, be
in accordance with minimum cover of the Institute Cargo Clauses (Institute
of London Underwriters) or any similar set of clauses. The duration of
insurance cover shall be in accordance with B5 and B4.
When required by the buyer, the seller shall provide at the buyer's
expense war, strikes, riots and civil commotion risk insurances if
procurable. The minimum insurance shall cover the price provided in the
contract plus ten per cent (i.e. 110 %) and shall be provided in the
currency of the contract.
B3 Contracts of carriage and insurance
a) Contract of carriage
No obligation.
b) Contract of insurance
No obligation.
A4 Delivery
The seller must deliver the goods to the carrier contracted in
accordance with A3 or, if there are subsequent carriers to the first
carrier, for transport to the agreed point at the named place on the date
or within the agreed period.
B4 Taking delivery
The buyer must accept delivery of the goods when they have been
delivered in accordance with A4 and receive them from the carrier at the
named place.
A5 Transfer of risks
The seller must, subject to the provisions of B5, bear all risks of
loss of or damage to the goods until such time as they have been delivered
in accordance with A4.
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods from
the time they have been delivered in accordance with A4.
The buyer must, should he fail to give notice in accordance
with B7, bear all risks of the goods from the agreed date or the expiry
date of the period fixed for delivery provided, however, that the goods
have been duly appropriated to the contract, that is to say, clearly set
aside or otherwise identified as the contract goods.
A6 Division of costs
The seller must, subject to the provisions of B6, pay
• all costs relating to the goods until such time as they have
been delivered in accordance with A4 as well as the freight and all other
costs resulting from A3 a), including the costs of loading the goods and
any charges for unloading at the place of destination which were for the
seller's account under the contract of carriage; and
• the costs of insurance resulting from A3 b); and
• where applicable (58, the costs of customs formalities
necessary for export as well as all duties, taxes or other charges payable
upon export, and for their transit through any country if they were for
the seller's account under the contract of carriage.
B6 Division of costs
The buyer must, subject to the provisions of A3 a), pay
• all costs relating to the goods from the time they have been
delivered in accordance with A4; and
• all costs and charges relating to the goods whilst in transit
until their arrival at the agreed place of destination, unless such costs
and charges were for the seller's account under the contract of carriage;
and
• unloading costs unless such costs and charges were for the
seller's account under the contract of carriage; and
• all additional costs incurred if he fails to give notice in
accordance with B7, for the goods from the agreed date or the expiry date
of the period fixed for dispatch, provided, however, that the goods have
been duly appropriated to the contract, that is to say, clearly set aside
or otherwise identified as the contract goods; and
• where applicable all duties, taxes and other charges as well as the
costs of carrying out customs formalities payable upon import of the goods
and for their transit through any country unless included within the cost
of the contract of carriage.
A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have
been delivered in accordance with A4 as well as any other notice required
in order to allow the buyer to take measures which are normally necessary
to enable him to take the goods.
B7 Notice to the seller
The buyer must, whenever he is entitled to determine the time for
dispatching the goods and/or the destination, give the seller sufficient
notice thereof.
A8 Proof of delivery, transport document or equivalent
electronic message
The seller must provide the buyer at the seller's expense, if
customary, with the usual transport document or documents (for example a
negotiable bill of lading, a non-negotiable sea waybill, an inland
waterway document, an air waybill, a railway consignment note, a road
consignment note, or a multimodal transport document) for the transport
contracted in accordance with A3.
Where the seller and the buyer have agreed to communicate
electronically, the document referred to in the preceding paragraph may be
replaced by an equivalent electronic data interchange (EDI) message.
B8 Proof of delivery, transport document or equivalent
electronic message
The buyer must accept the transport document in accordance with A8 if
it is in conformity with the contract.
A9 Checking - packaging - marking
The seller must pay the costs of those checking operations (such as
checking quality, measuring, weighing, counting) which are necessary for
the purpose of delivering the goods in accordance with A4.
The seller must provide at his own expense packaging (unless it is
usual for the particular trade to send the goods of the contract
description unpacked) which is required for the transport of the goods
arranged by him. Packaging is to be marked appropriately.
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection except
when such inspection is mandated by the authorities of the country of
export.
A10 Other obligations
The seller must render the buyer at the latter's request, risk and
expense, every assistance in obtaining any documents or equivalent
electronic messages (other than those mentioned in A8) issued or
transmitted in the country of dispatch and/or of origin which the buyer
may require for the import of the goods and for their transit through any
country.
The seller must provide the buyer, upon request, with the
necessary information for procuring any additional insurance.
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the
documents or equivalent electronic messages mentioned in A10 and reimburse
those incurred by the seller in rendering his assistance in accordance
therewith.
The buyer must provide the seller, upon request, with the
necessary information for procuring any additional insurance.
