CIP stands for Carriage and Insurance Paid to… (named place of destination), which means freight and insurance paid to (… designated place of destination). It means that the seller delivers the goods to the carrier designated by it, and must pay the freight for transporting the goods to the destination, arrange for insurance of the goods during transportation and pay the insurance premium, while the buyer bears all risks and additional costs after the seller delivers the goods.
CIP terminology applies to all modes of transport, including multimodal transport.
Basic obligations of buyers and sellers
(1) Seller’s obligations
① Responsible for arranging transportation, arranging transportation and insurance of goods, and paying freight and insurance premiums. ② Deliver the goods to the carrier at the time and place specified in the contract, and notify the buyer in time.
③ Bear all risks and expenses before the goods are handed over to the carrier, and handle the cargo transportation insurance procedures in accordance with the provisions of the sales contract.
④ Obtain official export certificates at their own risk and expense, and handle all customs procedures required for export, and pay export tariffs and related fees.
⑤ Submit the relevant documents stipulated in the contract, such as commercial invoices, insurance documents and delivery documents, or electronic records or program certificates with equivalent functions. (2) Buyer’s obligations
① Accept the relevant documents provided by the seller, receive the goods, and pay the purchase price in accordance with the contract.
② Bear all risks after the goods are handed over to the carrier at the agreed place.
③ At its own risk and expense, obtain official import certificates, handle the import of goods and all necessary customs formalities, and pay import taxes and fees.