We sell goods to the United Kingdom exclusively under CIP – “Carriage and Insurance Paid To” – Incoterms® 2020.
Under CIP:
| Item | Responsible party |
|---|---|
| Goods | The Buyer pays the Seller |
| Door-to-door transport | The Seller arranges and pays for carriage; the transport cost may be added to the invoice |
| Export customs clearance | The Seller |
| Import customs clearance | The Buyer |
| Import duties and other charges | The Buyer |
| Import VAT tax | The Buyer |
| Risk of loss or damage | The Buyer – from the moment the goods are handed over to the first carrier |
| Cargo insurance | The Seller – however, the Seller provides the Buyer with an insurance policy or certificate enabling the Buyer to claim compensation |
The most important feature of CIP is that the point at which risk transfers is different from the destination to which the Seller pays for carriage.
The Seller may pay for transport all the way to the Buyer’s premises, but the risk transfers earlier—when the goods are handed over to the first carrier.
This is how CIP is defined by the International Chamber of Commerce under Incoterms® 2020.
Please note
The courier can send a link to pay tax and duty before the parcel is delivered.
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