INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS

CIP – Carriage and Insurance Paid Тo (named place of destination)

This term is broadly similar to the CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of the contract value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (which would be Institute Cargo Clauses (C)), or any similar set of clauses. The policy should be in the same currency as the contract, and should allow the buyer, the seller, and anyone else with an insurable interest in the goods to be able to make a claim.

CIP can be used for all modes of transport, whereas the Incoterm CIF should only be used for sea-freight.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller

Incoterms 2010

CFR — Cost and Freight
CIF — Cost, Insurance and Freight
CIP — Carriage and Insurance Paid Тo
CPT — Carriage Paid To
DAP — Delivered at Place
DDP — Delivered Duty Paid
DAT — Delivered at Terminal
EXW — EX Works
FAS — Free Alongside Ship
FCA — Free Carrier
FOB — Free On Board

Incoterms 2000

DDU — Delivered Duty Unpaid
DES — Delivered Ex Ship
DEQ — Delivered Ex Quay
DAF — Delivered At Frontier

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How many types of sea freight?

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