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Information International rules and organization Incoterms 2000 [iNKOTERMS 2000] The term C Freight / Carriage and Insurance Paid - CIP

CIP (Carriage and Insurance Paid verily (... named place of destination))
Freight / carriage and insurance paid to (... named place of destination)

The term "freight / transportation and insurance paid to" means that the seller delivers the goods to the carrier named by him. In addition, the seller is obliged to pay the costs associated with the transport of goods to the named destination. This means that the buyer assumes all risks and any additional costs until the goods are delivered in this way. However, under the terms of the CIP, the seller also has an obligation to provide insurance against the risks of loss and damage to the goods during transport in favor of the buyer. Consequently, the seller enters into an insurance contract and pays insurance premiums. The buyer must take into account that, under the terms of the CIP term, the seller is required to provide insurance with the minimum coverage.
If the buyer wish to have the protection of greater cover, he would either need to agree with the seller or to make his own extra insurance.
"Carrier" means any person who, in a contract of carriage, undertakes to provide your own, or of transport by rail, road, air, sea, inland waterway or by a combination of such modes.
In the case of transport to the destination by several carriers, the risk will occur at the time of transfer of the goods to the first carrier.
According to 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

OBLIGATIONS OF THE BUYER

A.1. DELIVERY OF THE GOODS IN ACCORDANCE WITH THE TREATY

B.1. Payment of the price

The seller must, in accordance with the contract of sale provide the goods and the commercial invoice, or its equivalent electronic message, and any other evidence of conformity which may be required by the contract of sale.

The buyer must pay provided in the contract of purchase and sale price of the goods.

A.2. Licences, authorizations and formalities

B.2. Licences, authorizations and formalities

The seller must at his own expense and risk any export license or other official authorization and carry out, where applicable, all customs formalities for the export of the goods.

The buyer shall at his own expense and risk any import license or other official authorization and carry out, where applicable, all customs formalities for the import of the goods and for their transit through any country.

A.3. Contracts of carriage and insurance

B.3. Contracts of carriage and insurance

a) Contract of carriage.
The seller must contract 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 most appropriate for him point at the named place of destination.
b) Contract of insurance.
The seller must provide at his own expense - as agreed in the contract of sale and purchase - insurance of the goods under conditions allowing the buyer or another person possessing insurance interest to apply directly to the insurer, and also provide the buyer with an insurance policy or other proof of insurance coverage. The insurance must be made from the insurer or the reputable insurance company, and if there are no special agreements on the opposite, then the insurance must be made in accordance with the minimum coverage in accordance with the Cargo Clauses Terms and Conditions / Association of London Insurers / Institute of London Underwriters /) or any similar collection of contract articles. The duration of the insurance coverage must correspond to articles B.4. And B.5. At the request of the buyer and at his expense the seller is obliged to make insurance against military risks, strikes, riots and other civil unrest, if possible. Insurance should cover, as a minimum, the price specified in the purchase and sale agreement plus 10% (ie 110%) and must be concluded in the currency of the contract of sale.

a) Contract of carriage.
No obligation.
b) Contract of insurance.
No obligation.

A.4. SUPPLY

B.4. Taking delivery

The seller must deliver the goods to the carrier with whom a contract of carriage in accordance with Article A.3., And if the first few carriers, for transport to the agreed point at the named place on the date or within the agreed period.

The buyer must take delivery of the goods when they have been delivered in accordance with Article A.4. and receive them from the carrier at the named place of destination.

A.5. Transfer of risks

B.5. Transfer of risks

The seller must, subject to the provisions B.5. bear all risks of loss or damage to the goods until they have been delivered in accordance with Article A.4.

The buyer must bear all risks of loss or damage to the goods from the moment of delivery in accordance with A.4. The buyer is obliged to - if he does not fulfill the obligation to give notice in accordance with Article B.7. - bear all risks of loss or damage to the goods from the expiration of the agreed date or the end date of the fixed delivery date. The condition, however, is the proper conformity of the goods to the contract. This means that the goods must be properly identified, that is, definitely detached or otherwise identified as the commodity that is the subject of this contract.

A.6. Division of costs

B.6. Division of costs

The seller must, subject to the provisions of Article B.6 .: - bear all costs associated with the goods until the time of delivery in accordance with Article A.4., And also pay freight and all costs arising from the article A.3a) costs, including expenses For the loading of goods and unloading them at the place of destination, which are assigned to the seller under the contract of carriage, and - to pay insurance costs resulting from their articles A.3a), and - to pay, if necessary, the costs associated with customs formalities for export , Like other duties, taxes, etc. Clear the charges payable upon export of goods and the costs associated with its transit transportation through third countries, in cases when they are assigned to the seller under the contract of carriage.

The buyer must, subject to the provisions of A.3's clauses): - bear all costs associated with the goods from the time they are delivered in accordance with A.4., And - bear all costs and charges associated with the goods during their transit in The place of destination, except when they are assigned to the seller under the contract of carriage and - to pay the costs of unloading the goods, except when they are vested in the seller under the contract of carriage, and - incur all additional costs due to the failure to fulfill the obligation of dates appropriate notice in accordance with Article B.7. From the moment of calculation of the agreed date or from the end of the agreed period for shipment. The condition, however, is the proper conformity of the goods to the contract. This means that the goods must be properly identified, that is, definitely detached or otherwise identified as the goods that are the subject of this contract, and - pay, if required, all duties, taxes and other charges, as well as the costs of customs formalities , Payable upon import of the goods, and, if necessary, for its transit through third countries - if they are not included in the costs of the contract of carriage.

A.7. Notice to the buyer

B.7. Notice to the seller

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with Article A.4., As well as the buyer to any other notice required for the discharge is usually necessary measures for the goods.

In the event that the buyer has the right to determine the time for dispatching the goods and / or the destination, it must properly notify the seller.

A.8. Proof of delivery, transport document or equivalent electronic message

B.8. Proof of delivery, transport document or equivalent electronic message

The seller must provide the buyer at the expense of 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, invoice railway or road transport or a multimodal transport document), in accordance with Article A.3 . In the case of the seller and the buyer have agreed to communicate electronically, the document referred to above may be replaced by an equivalent electronic data (EDI).

The buyer must accept the article A.8. the transport document if it meets the conditions of the contract of sale.

A.9. Checking - packaging - marking

B.9. Inspection of goods

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with Article A.4. The seller must at his own expense packaging (unless in the particular trade to ship the usual contract goods unpacked) which is required for the transport of goods. Packaging is to be marked appropriately.

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.

A.10. OTHER OBLIGATIONS

B.10. OTHER OBLIGATIONS

The seller must render the buyer at the request of the latter's expense, risk and every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8.) Issued or transmitted in the country of dispatch and / or country of origin, which the buyer may require for the import of the goods and, where necessary, for their transit through any country. The seller must provide the buyer with the necessary information for procuring any additional insurance.

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages, as provided in Article A.10., And reimburse the seller incurred by the latter as a result of assistance to the buyer. The buyer must provide the seller with the necessary information for procuring insurance.