With this ICC Incoterms® condition, the seller pays for transport and insurance to the said destination point, but the risk passes when the goods are transferred to the first transport. Terminal Handling Charges (THC) are fees charged by the terminal operator. These costs may or may not be included by the carrier in their freight rates - the buyer should inquire if the CIP price includes THC, to avoid surprises. The seller is obliged to inform the customer that the goods are on their way. CIP is a condition that can be used for all modes of transport.
The seller must deliver the goods to the contracted carrier.
The risk of damage during transport is from the transfer of the goods to the transporter on behalf of the buyer. Before delivery, the seller is at risk.
The cost of transport to the agreed place of destination is borne by the seller. Further transport is at the expense of the buyer. Please note that the transfer of costs does not take place at the same time as the transition from risk to transport damage.
The seller must provide the customs formalities resulting from the export. His account is also the associated costs, duties and charges. Customs formalities and transit costs are, as a rule, at the seller's expense. For the account and risk of the purchaser, all customs formalities and the associated costs, duties and charges resulting from imports into the country of destination shall be accounted for.
The seller concludes an insurance contract for the benefit of the buyer from the point of delivery to at least the point of destination. This insurance must comply with the comprehensive coverage Institute Cargo Clauses (A).
Addition place of delivery
The delivery condition should always be added where the transfer of the goods takes place. At CIP, this is indicated with: ... place of destination (... agreed destination).