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Information International rules and organization Incoterms 2010 [iNKOTERMS 2010] CIP - Carriage and Insurance Paid To - Perevzka and Insurance Paid

CIP

Incoterms 2010

CARRIAGE AND INSURANCE PAID TO [... named place of destination]
COST AND INSURANCE PAID TO [... named place of destination]

This term may be used irrespective of the chosen mode of transport and by using more than one mode of transport.
"Carriage and Insurance Paid to" ( "Cost and Insurance Paid") means that the seller sends the goods to the carrier or another person nominated by the seller, at the agreed place (if such a place agreed by the parties), and that the seller is obliged to conclude a contract of carriage and incur expenses on transportation required to deliver the goods at the agreed destination.
The seller also contracts for insurance covering the risk of loss or damage to the goods during transport. Buyer should note that under the CIP the seller is obliged to provide insurance with minimum coverage only. If desired, the buyer have more protection through insurance, he must either clearly align it with the seller or to carry out at its own expense additional insurance.
When using the term CPT, CIP, CFR or CIF the seller fulfills his obligation to deliver when it hands the goods over to the carrier, and not when the goods reached their destination.
This term has two critical points, as the risk and expense go into two different places. Parties are encouraged to most accurately as possible to determine in the contract the place of delivery of goods, in which the risk passes to the buyer, as well as a named place of destination to which the seller is obliged to conclude a contract of carriage.
When using multiple carriers for the transport of goods according to the agreed direction, and if the parties have not agreed on a particular point of delivery, drawback is that risk passes when sending goods to the first carrier in the village, the choice of which depends entirely on the seller and which is outside the control of the buyer. If the intention of the parties to transfer of risk was carried out at a later stage (ie in the ocean port or airport), it is necessary to define it in their contract of purchase - sale.
Parties are also encouraged by the possibility of more accurately determine the point at the agreed place of destination, as the costs to this point is the seller. Seller recommended that contracts of carriage, which accurately reflect this choice. If the seller is in his contract of carriage bears the costs of discharge at the agreed place of destination, the seller is not entitled to claim compensation from the purchaser of such costs, unless otherwise agreed by the parties.
CIP requires the seller to perform customs formalities for export, if applicable. However, the seller is not obliged to carry out customs formalities for import, pay import duties or perform other customs formalities for import.

THE SELLER

OBLIGATIONS OF THE BUYER

A.1. General obligations of the seller

B.1. General obligations of the buyer

The seller must, in accordance with the contract of purchase and sale provide the goods and the commercial invoice, the invoice, as well as any other evidence of conformity conditions of the contract of sale, which may be required by the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.

The buyer must pay the price of the goods, as provided for in the contract of sale.
Any document referred to in paragraphs B1-B10 may be an equivalent electronic record or other procedure, if agreed by the parties or is common.

A.2. Licenses, permits, security checks and formalities

B.2. Licenses, permits, security checks and formalities

If required, the seller must, at his own expense and risk, to obtain an export license or other official authorization and carry out all customs formalities necessary for the export of goods and their transport through any country.

If required, the buyer must obtain at his own expense and risk import license or other official authorization and carry out all customs formalities for the import of goods and its transportation through any country.

A.3. carriage and insurance

B.3. carriage and insurance

a) Contract of carriage
The seller must contract or procure the conclusion of the contract of carriage of goods from a named point of delivery, if it is defined, or by delivery to the named place of destination or, if agreed, to any point in such a place.
The contract of carriage must be made on usual terms at the seller's expense and provide for carriage by generally accepted direction and the normal way. If a specific point is not agreed or can not be determined on the basis of practice, the seller may select the point of delivery or at the agreed point of destination which best suits his purpose.
b) Contract of insurance
The seller must at his own expense carry cargo insurance, corresponding to at least the minimum coverage, as required by paragraph "C" Institutskaya terms of cargo insurance (Cargo Clause) (LMA / IUA) or other similar conditions. The insurance contract must be concluded with an insurer or an insurance company having a good reputation, and provide the purchaser or any person having an insurable interest in the goods, the right to claim directly against the insurer.
At the request of the buyer the seller is obliged, provided that the buyer the necessary information required by the seller to carry the buyer's expense such additional insurance, which may be obtained for example as provided by paragraph "A" or "B" Institutskaya terms of cargo insurance (LMA / IUA) or other similar conditions, and / or coating the corresponding Institutsky terms of military action, and / or university conditions (LMA / IUA) strikes or other similar conditions.
Insurance should cover a minimum stipulated in the sales contract price plus 10% (ie 110%) and carried out in the currency of the contract of purchase - sale.
Insurance must provide the goods, starting from the point of delivery, as provided in paragraphs A4 and A5 and, at least to a named destination.
The seller must provide the buyer with the insurance policy or other evidence of insurance cover.
In addition, the seller must provide the buyer at the buyer's request, at his risk and expense information that may be required to the buyer to provide additional security.

a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to conclude a contract of insurance. However, the buyer must provide the seller, at his request, the necessary information for the additional insurance required by the buyer, as provided for in paragraph A3 b).

A.4. Supply

B.4. Taking delivery

The seller must deliver the goods by transferring it to the carrier with whom a contract in accordance with paragraph A3 on the date or within the agreed period.

The buyer must take delivery of the goods as soon as they have been delivered in accordance with paragraph A4, and receive them from the carrier at the named place of destination.

A.5. Transfer of risks

B.5. Transfer of risks

Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.

The buyer bears all risks of loss or damage to the goods from the moment of delivery in accordance with paragraph A4.
At default by the buyer obligations to provide notification in accordance with paragraph B7, he shall bear all risks of loss or damage to the goods from the agreed date or the date on which expired the agreed delivery period, provided that the goods were explicitly individualized as a commodity, which is the subject agreement.

A.6. Division of costs

B.6. Division of costs

The seller must pay:
a) all costs relating to the goods until they have been delivered in accordance with paragraph A4, except for expenses payable by the purchaser as provided in paragraph B6; and
b) Freight and other specified in paragraph A3 a), including the costs of loading the goods and any charges in connection with the unloading of the goods at the place of destination, that the contract of carriage charged to the seller; and
c) insurance costs referred to in paragraph A3 b);
d) if necessary, the costs of customs formalities necessary for export of goods, as well as all duties, taxes and charges payable on export, as well as the cost of its transportation through third countries, if they are under the terms of the contract of carriage charged to the seller.

The buyer must, subject to the provisions A3 a) point
pay:
a) all related product costs since it was delivered in accordance with paragraph A4, except, if applicable, the costs of customs formalities necessary for export of goods, as well as taxes, duties and other charges payable for export as provided for in A6 d) clause;
b) all related product costs and fees in transit until their arrival at the agreed place of destination, unless such costs and charges do not apply under the contract of carriage for the seller;
c) the discharge, unless such expenses are not related to the seller under the contract of carriage;
d) any additional costs incurred as a result of failure to give notice to the seller in accordance with paragraph B7, from the agreed date or the expiry of the agreed period for shipment, provided that the goods were explicitly individualized as a commodity, which is the subject of the contract;
e) if necessary, the cost of the payment of taxes, duties and other official charges as well as for the implementation of customs formalities payable upon import of the goods and the cost to transport it through any country unless such costs and charges do not apply under the contract of carriage on Seller.
f) cost of additional insurance provided at the request of the buyer, as provided for in paragraphs A3 and BZ.

A.7. Notice to the buyer

B.7. Notice to the seller

The seller must give the buyer notice that the goods have been delivered in accordance with paragraph A4.
The seller must give the buyer a notice to provide the customer the possibility of adopting such measures, which are usually needed to get the goods by the buyer.

If the buyer is entitled to determine the time for shipment and / or a named destination or point of receipt of goods in this place, he must account to the seller due notice thereof.

A.8. Document delivery

B.8. Proof of delivery

If it is customary or requested by the buyer, the seller, at his own expense, must provide the buyer with the usual transport document (-s) in accordance with the contract of carriage in accordance with paragraph A3.
The transport document shall include the goods under the contract and be dated within the agreed period of shipment. If it is agreed or is customary, the document should also provide the buyer to claim the goods from the carrier at the named place of destination and allow the buyer to sell the goods in transit time by sending the document to a subsequent buyer or by notification to the carrier.
If the transport document is negotiable and issued in several originals, a buyer must be a full set of originals.

The buyer must accept the transport document issued in accordance with paragraph A8 if it complies with the conditions of the contract.

A.9. Checking, packaging, labeling

B.9. Inspection of goods

The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the exporting country.
The seller must at his own expense packaging of goods, except in cases when the particular trade is usually taken to ship specified in the contract goods unpacked. The seller can pack the goods in such a way as is necessary for its transportation, unless the buyer before the contract does not notify the seller of specific packaging requirements. Marking packaged goods must be carried out properly.

The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.

A.10. Assistance in obtaining information and relating to this expenditure

B.10. Assistance in obtaining information and relating to this expenditure

If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including important safety information, which may require the buyer to the goods import and / or transport it to the final destination.
The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or assisting in obtaining documents and information as provided for in paragraph B10.

The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10.
The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.
If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.