Understanding Carriage and Insurance Paid To (CIP) in International Trade, Cheat Sheet of Knowledge Management

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el ouni eya

EL OUNI EYA

the risk of damage or loss to the goods being transported tranfers from the seller to the buyer as soon as the goods are delivered to the carrier or an appointed person. CIP is comparable to but different from cost, insurance, and freight CIFan agreement that is used in maritime trade and commodity trading , under CIP. the seller is obligated to insure goods in transit for 110% of the contract value. if the buyer desires additional insurrance, they must arrange for it on their own. CIP is on of 11 incoterms, a series od globally accepted commercial trade terms most recently published in 2020 by the international chamber of commerce(ICC).

if uyers want better insurance covarage than 110% of the contract value,they must pay for it themselves. what kind of transport is eligible for CIP the term "carriage and insurance paid to(CIP)" signifies that the seller will pay freight and insurance in sending goods to someone chosen by the seller at a mutually agreeable location. Key takeways important Any form of recognized transport can be used, icluding road,rail,sea,inland,wat er way, air, and any combination thereof.

Gomputers to best buy in the united states. under CIP, LG is responsible for all freight costs and minimum insurance coverage to deliver the tablet computers to the carrier or appointed person for best buy at an agreed_upon destination.once the shipment is delivered to the carrier or appointed person for best buy, LG's obligation is complete, and best buy assumes full risk and responsibility for the shipment.