B-6-8- Incoterms © 2000 cip


CIP, Carriage and Insurance Paid, is one of the 11 Incoterms © 2000



Incoterms 2000 ©
 CFR   CIF   CIP   CPT   DAF   DDP   DDU   DEQ   DES   EXW   FAS   FCA   FOB  

The Incoterms © CIP 2000 is an Incoterms © where the main carriage is paid by the exporter.

The Incoterms © CIP 2000 is a "main carriage unpaid" Incoterm ©

The Incoterms © CIP 2000 is used for all modes of transport

6-8-1- 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.

Like Incoterms © CPT, this Incoterms © is recommended for air and/or container transport.

6-8-2- 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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6-8-3-  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.

6-8-4-  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.

6-8-5- Advantages for the exporter

This Incoterms © 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. Goods are insured at a low cost, as opposed to Incoterms © CPT, where the insurance is paid for by the importer.

6-8-6- The point of ownership transfer: when goods are loaded for initial transport


Note the delivery


6-8-7- Incoterms © CIF 2000: Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Choice of carrier  Importer  Exporter
 Pre-transport  Exporter  Exporter
 Loading  Exporter  Exporter
 Costs of loading  Exporter  Exporter
 Unloading  Importer  Importer
 Costs of unloading  Importer  Importer
 Transport payment  Exporter  Importer
 Insurance payment  Exporter FPA (CIF + 10%)  
 Import customs fees  Importer  Importer
 Export customs fees  Exporter  Exporter
 Post-transport  Importer  Importer