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Incoterms 2020 > CIP - Carriage and Insurance Paid To > Flashcards

CIP - Carriage and Insurance Paid To Flashcards

1
Q

When does the delivery and risk transfer happen in CIP?

A

When the goods are handed over to the carrier contracted by the seller.

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2
Q

Can the seller guarantee that the goods will reach the place of destination in sound condition, in the stated quantity or indeed at all in CIP?

A

No

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3
Q

For which mode of transport is CIP used?

A

For all modes of transport

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4
Q

What is the difference between places (or points) of delivery and destination?

A

The place (or point) of delivery is a place where risk transfer and delivery happens. Place (or point) of destination is a point to which the seller promises to contract for carriage.

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5
Q

In CIP who is obligated to contract for insurance cover against the buyer’s risk of loss of or damage to the goods?

A

The seller

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6
Q

From which point to which point must the seller provide insurance in a CIP contract?

A

From the point of delivery to at least the point of destination.

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7
Q

In CIP which type of insurance cover must the seller obtain?

A

insurance complying with Institute Cargo Clauses (A) or similar clause, rather than the more limited cover under Institute Cargo Clauses (c).

It is, however, still open to the parties to agree on a lower level of cover. Also, lover level cover can be chosen if it is customary in the particular trade.

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8
Q
A
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9
Q

What are buyer’s obligations in regards with delivery in CIP?

A

The seller must take the delivery of the goods when they have been delivered at the place (or point) of delivery accordingly and receive them from the carrier at the named place (or point) of destination.

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10
Q

In what circumstance can the seller contract for insurance which complies with more limited cover than Institute Cargo Clauses (A) or similar clause?

A

If the parties agree so or it is customary in the particular trade

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11
Q

Until when does the seller bear the risk of loss of or damage to the goods in CIP?

A

Until the goods have been delivered (handed to the carrier) accordingly

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12
Q

After when does the buyer bear the risk of loss of or damage to the goods in CIP?

A

After the goods have been handed over to the carrier.

If the buyer fails to give notice in accordance with B10, then the buyer bears all risks of loss of or damage to the goods from the agreed date or the end of the agreed period for delivery, provided that the goods have been clearly identified as the contract goods.

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13
Q

On what kind of terms must the contract of carriage needs to be made in CIP?

A

On usual terms at the seller’s cost

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14
Q

What kind of route must be chosen for carriage in CIP by the seller?

A

the usual route in a customary manner of the type normally used for carriage for the type of goods sold

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15
Q

What happens in the point of delivery or point of destination is not agreed or is not determined by practice in CIP?

A

The seller can choose the point of delivery or destination that best suits its purpose.

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16
Q

With what kind of security requirements must the seller comply in CIP?

A

The seller must comply with any transport-related security requirements for transport to the destination

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17
Q

The seller must comply with any transport-related security requirements for transport to the (where?)

A

Destination

18
Q

What kind of carriage-related obligations does the buyer have in CIP?

A

None

19
Q

What kind of insurance company must the seller choose in CIP?

A

Company with good repute

20
Q

Is the seller obligated to entitle the buyer, or any other person having an insurable interest in the goods, to claim directly from insurer in CIP?

A

Yes

21
Q

Who must the seller entitle as a person who can claim directly from the insurer in CIP?

A

The buyer or any other person having insurable interest in the goods.

22
Q

Is the seller obligated to provide any additional insurance coverage other than the one necessary in CIP?

A

Yes, when required by the buyer at the buyers cost.

23
Q

How much must the insurance cover in CIP?

A

minimum the price provided in the contract plus 10% (i.e. 110%)

24
Q

In which currency must the insurance coverage be in CIP?

A

in the currency of the contract.

25
Q

With what kind of insurance-related documentations must the seller provide the buyer in CIP?

A

With the insurance policy or certificate or any other evidence of insurance cover

26
Q

With what kind of insurance-related information must the seller provide the buyer in CIP?

A

The seller must provide the buyer, at the buyer’s request, risk and cost, with the information that the buyer needs to obtain any additional insurance.

27
Q

What kind of insurance-related obligations does the buyer have in CIP?

A

none. however, the buyer must provide the seller, upon request, with any information necessary for the seller to obtain any additional insurance requested by the buyer.

28
Q

when is it advised to sell under CPT instead of CIP?

A

if the destination country requires insurance cover to be purchased locally and this causes difficulty for the seller.

29
Q

When must the seller provide the usual transport document(s) for the transport contracted for carriage in CIP?

A

If customary or at the buyer’s request, at the seller’s cost.

30
Q

What are the seller’s export/import related obligations in CIP?

A

The seller must clear the goods for export and deal with export formalities.

He does not have to deal with transit stuff.

The seller must, at the buyer’s request and at the buyer’s cost, assist the buyer in import related stuff.

31
Q

What are the buyer’s export/import related obligations in CIP?

A

The buyer must clear the goods for import and dial with import formalities.

The buyer must, at the seller’s request and cost, assist the seller in export stuff.

32
Q

Who must pay for the Checking operations (such as checking quality, measuring, weighing and counting) that are necessary for the purposes of delivering the goods accordingly in CIP?

A

The seller

33
Q

Who must pay for the packaging and marking in CIP?

A

The seller

34
Q

Who must pay for the costs of transport and costs of loading the goods and transport-related security costs in CIP?

A

Seller

35
Q

Who pays for the unloading at the agreed place of destination in CIP?

A

The seller only if those charges were for the seller’s account under the contract of carriage. if not - then buyer

36
Q

Who pays for the transit costs in CIP?

A

Seller only if the costs were for the seller’s account under the contract of carriage. if not - then buyer.

37
Q

Who pays for the costs of providing the usual proof to the buyer that the goods have been delivered in CIP?

A

The seller

38
Q

Who pays for the insurance in CIP?

A

The seller

39
Q

Who pays for the costs of any additional insurance procedure at the buyer’s request in CIP?

A

The buyer

40
Q

What happens if the buyer fails to give notice in accordance with B10 in CIP?

A

Buyer pays for any additional costs incurred from the agreed date or the end of the agreed period for shipment, provided that the goods have been clearly identified as the contract goods.

41
Q

What are the sellers obligations with regards to notices in CIP?

A

The seller must notify the buyer that the goods have been delivered accordingly.

the seller must give the buyer any notice required to enable the buyer to receive the goods.

42
Q

What are the buyer’s obligations with regards to notices in CIP?

A

The buyer must, whenever it is agreed that the buyer is entitled to determine the time for dispatching the goods and/or the point of receiving the goods within the named place of destination, give the seller sufficient notice.

Incoterms 2020 (6 decks)

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