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CARRIAGE AND INSURANCE PAID TO (...named Place of Destination)
"Carraige and Insurance paid
to..."means that the seller deliveres the goods to the carrier naminated
by him, but the seller must in addition pay the cost of carriage
necessary to bring the goods to the named destination. This means that
the buyer bears all risks and any additional costs occurring after the
goods have been so delivered. However, in CIP the seller also has to
procure insurance against the buyer's risk of loss of or damage to the
goods during the carriage.
Consequently, the seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIP term the seller is required to
obtain insurance only on minimum cover. Should the buyer wish to have
the protection of greater cover, he would either need to agree as much
expressly with the seller or to make his own extra insurance
arrangements.
"Carrier" means any person who, in a contract of carriage, undertakes to
perform or to procure the performance of transport, by rail, road, air,
sea, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed
destination, the risk passes when the goods have been delivered to the
first carrier.
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.
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S |
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THE SELLER'S OBLIGATIONS |
S1 |
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Provision of goods in conformity with the contract
The seller must provide the gods and the commercial invoice, or its
equivalent electronic message, in conformity with the contract of sale
and any other evidence of conformity which may be required by the
contract.
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S2 |
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Licences, authorizations and formalities
The seller must obtain at his own risk and expense any export licence or
other official authorization and carry out, where applicable, all
customs formalities necessary for the export of the goods.
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S3 |
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Contracts of carriage and insurance
a) Contract of carriage
The seller must contract on usual terms 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
point at the named place of destination which best suits his purpose.
b) Contract of insurance
The seller must obtain at his own expense cargo insurance as agreed in
the contract, such that the buyer, or any other person having a
insurable interest in the goods, shall be entitled to claim directly
from the insurer and provide the buyer with the insurance policy or
other evidence of insurance cover.
The insurance shall be contracted with underwriters or an insurance
company of good repute and, failing express agreement to the contrary,
be in accordance with minimum cover of the Institute Cargo Clauses (
Institute of London Underwriters ) or any similar set of clauses. The
duration of insurance cover shall be in accordance with B5 and B4. When
required by the buyer, the seller shall provide at the buyer's expense
war, strikes, riots and civil commotion risk insurances if procurable.
The minimum insurance shall cover the price provided in the contract
plus ten percent (i.e. 110%) and shall be provided in the currency of
the contract.
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S4 |
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Delivery
The seller must deliver the goods to the carrier contracted in
accordance with S3 or, if there are subsequent carriers to the first
carrier, for transport to the agreed point at the named place on the
date or within the agreed period.
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S5 |
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Transfer of risks
The seller must, subject to the provisions of B5, bear all risks of loss
of or damage to the goods until such time as they have been delivered
in accordance with S4.
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S6 |
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Division of costs
The seller must, subject to the provisions of B6, pay
? all costs relating to the goods until such time as they have been
delivered in accordance with S4 as well as the freight and all other
costs resulting from S3 a), including the costs of loading the goods and
any charges for unloading at the place of destination which were for
the seller's account under the contract of carriage; and
? the costs of insurance resulting from S3 b); and
? where applicable, the costs of customs formalities necessary for
export as well as all duties, taxes or other charges payable upon
export, and for their transit through any country if they were for the
seller's account under the contract of carriage.
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S7 |
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Notice to the buyer
The seller must give the buyer sufficient notice that the goods have
been delivered in accordance with S4, as well as any other notice
required in order to allow the buyer to take measures which are normally
necessary to enable him to take the goods.
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S8 |
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Proof of delivery, transport document or equivalent electronic message
The seller must provide the buyer at the seller's expense, if customary,
with 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, a railway consignment note, a road
consignment note, or a multimodal transport document) for the transport
contracted in accordance with S3.
Where the seller and the buyer have agreed to communicate
electronically, the document referred to in the preceding paragraph may
be replaced by an equivalent electronic data interchange (EDI) message.
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S9 |
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Checking - packaging - marking
The seller must pay the costs of those checking operations (such as
checking quality, measuring, weighing, counting) which are necessary for
the purpose of delivering the goods in accordance with S4.
The seller must provide at his own expense packaging (unless it is usual
for the particular trade to send the goods of the contract description
unpacked) which is required for the transport of the goods arranged by
him. Packaging is to be marked appropriately.
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S10 |
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Other obligations
The seller must render the buyer at the latter's request, risk and
expense, every assistance in obtaining any documents or equivalent
electronic messages (other than those mentioned in S8) issued or
transmitted in the country of dispatch and/or of origin which the buyer
may require for the import of the goods and for their transit through
any country.
The seller must provide the buyer, upon request, with the necessary information for procuring any additional insurance.
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B |
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THE BUYER'S OBLIGATIONS |
B1 |
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Payment of the price
The buyer must pay the price as provided in the contract of sale.
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B2 |
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Licences, authorizations and formalities
The buyer must obtain at his own risk and expense any import licence 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.
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B3 |
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Contracts of carriage and insurance
a) Contract of carriage
No obligation
b) Contract of insurance
No obligation
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B4 |
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Taking delivery
The buyer must accept delivery of the goods when they have been
delivered in accordance with A4 and receive them from the carrier at the
named place.
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B5 |
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Transfer of risks
The buyer must bear all risks of loss of or damage to the goods from the time they have been delivered in accordance with S4.
The buyer must, should he fail to give notice in accordance with B7,
bear all risks of the goods from the agreed date or the expiry date of
the period fixed for delivery provided, however, that the goods have
been duly appropriated to the contract, that is to say, clearly set
aside or otherwise identified as the contract goods.
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B6 |
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Division of costs
The buyer must, subject to the provisions of S3 a), pay
? all costs relating to the goods from the time they have been delivered in accordance with S4; and
? all costs and charges relating to the goods whilst in transit until
their arrival at the agreed place of destination, unless such costs and
charges were for the seller's account under the contract of carriage;
and
? unloading costs unless such costs and charges were for the seller's account under the contract of carriage; and
? all additional costs incurred if he fails to give notice in accordance
with B7, for the goods from the agreed date or the expiry date of the
period fixed for dispatch, provided, however, that the goods have been
duly appropriated to the contract, that is to say, clearly set aside or
otherwise identified as the contract goods; and where applicable, all
duties, taxes and other charges as well as the costs of carrying out
customs formalities payable upon import of thee goods and for their
transit through any country unless inculded within the cost of the
contract of carriage.
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B7 |
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Notice to the seller
The buyer must, whenever, he is entitled to determine the time for
dispatching the goods and/or the destination, give the seller sufficient
notice thereof.
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B8 |
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Proof of delivery, transport document or equivalent electronic message
The buyer must accept the transport document in accordance with S8 if it is in conformity with the contract.
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B9 |
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Inspection of goods
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.
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B10 |
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Other obligations
The buyer must pay all costs and charges incurred in obtaining the
documents or equivalent electronic message mentioned in S10 and
reimburse those incurred by the seller in rendering his assistance in
accordance therewith.
The buyer must provide the seller, upon request, with the necessary information for procuring any additional insurance. |
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