Home » Ocean Freight » Incoterms - CIP - Carriage and Insurance Paid
CIP - Carriage and Insurance Paid
Explore the importance of Incoterms in international trade and their impact on the European logistics market. Incoterms is an international standard on the rights and obligations of the buyer and seller in the international transportation of goods.
Incoterms, or International Commercial Terms, play a crucial role in defining the responsibilities and liabilities of buyers and sellers in global trade. In the European logistics market, understanding and correctly applying Incoterms is essential for seamless and cost-effective international transactions. These terms, including EXW, FOB, CIF and DAP, govern everything from the point of origin to the final destination of the goods. For example, EXW and FOB give buyers more control over the transportation process, while other terms imply that sellers take charge. Interestingly, CIF prices are often quoted initially, but there is flexibility to offer prices based on different terms. Neele-Vat, with its extensive experience in international logistics, recommends choosing EXW or FOB, allowing maximum control while using our expertise to manage transportation to your specified destination. We will elaborate on each Incoterm and offer valuable insights for navigating the European logistics landscape.
Get your quote immediately
Have a question or need a price quote? We will respond within 60 minutes.
CIP - Freight and insurance paid to (agreed place of destination)
Under the ICC Incoterms® rule Carriage and Insurance Paid to (CIP), the seller pays for both carriage and transport insurance to the agreed destination. The place of delivery (and passing of risk) is a different location than that specified for transportation costs behind the Incoterms® rule.
CIP is a non-maritime delivery condition suitable for all forms of transportation.
Characteristics:
Delivery: the seller has delivered as soon as he hands over the goods to his contracted carrier.
Transport risk: the risk of damage to or loss of the goods in transit shall be borne by the buyer from the time of handover to the carrier. Until delivery, the seller shall bear the risk.
Transportation costs: the cost of transportation to the agreed destination shall be borne by the seller. Any subsequent transport is at the buyer's expense. Please note that the transfer of transport costs does not take place at the same time as the transfer of risk for transport damage.
Customs formalities: the seller must take care of the customs formalities arising from the export. For his account are also the related costs, duties and taxes. Customs formalities and costs related to transit are usually for the seller's account. At the buyer's expense and risk are all customs formalities and related costs, duties and taxes arising from importation into the country of destination.
Transportation Insurance: the seller shall enter into an insurance contract for the benefit of the buyer. This insurance shall comply with the comprehensive coverage of the Institute Cargo Clauses (A).
Addition place of delivery: the place of destination must always be added to the delivery condition. In CIP, this is indicated by: ... agreed place of destination (... named place of destination). Please note that with C-terms, delivery (and passing of risk) already takes place at departure. Transport costs are for the seller up to the agreed place of destination.
At Neele-Vat, we provide efficient and reliable handling of your ocean freight. We offer secure shipping, smart cargo management and customized logistics solutions. Whether you have a one-time shipment or regular shipments, we have the right expertise. Request a quote today and discover the benefits of our ocean freight services!
At Neele-Vat, we take your right to privacy seriously. That's why we give you control over how we handle your data.
FunctionalAlwaysactive
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.Technical storage or access used solely for anonymous statistical purposes. Without subpoena, voluntary compliance by your Internet Service Provider, or additional data from a third party, information stored or retrieved solely for this purpose typically cannot be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
