Comments on: Incoterms: CIP – Carriage and Insurance Paid To

By: Syed Sarwar Hussain

Syed Sarwar Hussain — Thu, 22 Sep 2011 14:35:27 +0000

According to World Bank Standard Bidding Document , there are three different types of Price schedule. prospective bidders are required to fill in any one of these three as appropriate. At the time of financial evaluation custom duties are deducted from the total EXW price for goods which have already been imported. on the other hand in the case of Goods manufactured outside the Purchaser’s Country, already imported or to be imported, the Purchaser’s evaluation of a bid will exclude and not take into account customs duties and other import taxes levied on the imported Good, sales and other similar taxes, which will be payable on the Goods if the contract is awarded to the Bidder. If the purchaser is an UN agency, it will not required to pay custom duties and some other taxes.

In this case , do you think this sort of comparison justified?

By: Bhavin

Bhavin — Sat, 17 Sep 2011 11:15:12 +0000

When the ship’s rail serves no practical purposes such as in the case of roll-on/ roll-off or container traffic, the CIP term is more appropriate to use.

Why not CIF ??

By: wihib

wihib — Fri, 16 Sep 2011 10:01:37 +0000

Dear sir
I often get confused when we use the term CIP for grain procurements. we useully use it for deliveries where the point of discharge is domestic. But the cargo has to pass through sea ports. If the buyer is responsible for the import customs duty and taxes then who is responsible for the charges to be paid to the clearing and forwading companies?

By: Clara

Clara — Mon, 06 Jun 2011 11:10:34 +0000

Hello! Thank you of for the answers. I have a question regarding CIP incoterm.I have the following situation:
- The seller brings goods from some place in Russia to Port x in Ukraina by train than the goods will be loaded and sent to the port of destination Y port in Albania. The existing incoterm in the Letter of Credit was FOB Port X, Ukraina but now the seller has required to change it at replace it with CIP Port X, Ukraine which I refused as it does not asure us that the goods enter at some point in Albania.Could you please suggest which is the best incoterm to use in this situation?

By: Ogwang

Ogwang — Wed, 11 May 2011 09:33:41 +0000

hay great info u provide. i do hv a qtn, in cases of Cip incoterms, who is supposed to pay a freight company that does some additional transportation of goods to the place of destination ? is it the buyer or the supplier ?

By: Margarita

Margarita — Mon, 14 Mar 2011 03:23:16 +0000

Favor explicar un poco más el término CIP, cuando habla de transporte, lugar de entrega y seguro: El vendedor paga el transporte interno hasta el lugar convenido pero en otros documentos habla que incluye el transporte hasta el destino. También indica que el seguro se pago hasta el destino??, no debería ser hasta el momento en que se entrega la mercancía al transportador… Y por último algunos artículos sobre este tema confunden, algunos indican que contrata y paga el transporte principal. Favor aclara bien. El transporte hasta dónde y quién lo paga, lo mismo que el seguro para este caso del término CIP. Gracias

By: vincent

vincent — Wed, 03 Nov 2010 09:26:05 +0000

Hello,

in the term CIP, who pays the destination charges (charged by the shipping line) at the POD

Vincent

By: Vince

Vince — Mon, 05 Apr 2010 03:38:57 +0000

“With CIP terms being used at what point does the buyer take ownership of goods”

As discussed, to the named place or port. Both parties need to discuss where this “place” or “point” is. Having said, that’s also where the seller’s responsibility ends.

By: James McCabe

James McCabe — Tue, 16 Mar 2010 04:22:01 +0000

question

With CIP terms being used at what point does the buyer take ownership of goods, it is my understanding that even if the seller is paying for the freight and insurance that the buyer takes ownership at point of freight being loading on the truck from seller site. Or is this a moot point and it is the wording of the contract that overrides CIP term, my concern is revenue recognition

By: Ray

Ray — Thu, 14 Jan 2010 08:16:26 +0000

Hello, I would like to clarify the responsiblility of the destination charges (maybe the arrival charges)? if the incoterm used is CIP named seaport. I know the carrier will have some arrival charges need to pay before releasing the cargo to the buyer (consignee)