Insurance
Under the terms of the 2000 instrument, under cip trade terms, the seller is responsible for the insurance of the goods, the conclusion of an insurance contract with the insurer and the payment of insurance premiums. Under the cip conditions, the nature of the seller's insurance is, like the cif condition, that the seller is insured for the buyer's interests, that the seller is insured for the buyer in lieu of the buyer, as can be fully explained in terms of the choice of insurance, the determination of the amount of insurance, the duration of insurance and the transfer of insurance rights。
An alternative option for insuring is for the seller and the buyer to specify in the contract the risk to which the seller is insured on the basis of the use of different modes of transport, or in the letter of credit. If the buyer fails to provide any insurance coverage, the seller must also cover the minimum coverage under the terms of the goods insurance in the different modes of transport, but does not include special additional insurance such as war, strike, riot and civil war insurance, which the seller can cover at the buyer's request and at its expense。
The amount of the insurance is determined by a certain addition made by the seller and the buyer under the cip contract, and the addition rate is determined at the buyer's request. If the buyer does not make any additional claim, the seller must add 110 per cent to the cip price and be insured in the currency of the contract。
The insurance period is specified in cip trade terms. Although the insurance clause provides for the insurer to be held liable in the form of a “suspend-to-take clause”, there are two stages in the “suspend-to-take clause” in which the interest is secured, i. E., the seller's interest is not secured until the goods are taken over by the carrier or others; and the period from the moment the goods are taken over by the carrier or others until the destination designates the place of receipt as the buyer's interest. Thus, the practice provides that under cip conditions, the seller's period of insurance is the period between the buyer's exposure to risks under the term and the period from the time the buyer accepts delivery, i. E. The stage of the buyer's s security interest。
The assignment of insurance rights is the fundamental purpose for which the seller is insured. According to cip, the seller must entitle the buyer or any other person with an insurable interest in the goods to claim directly against the insurer. In order to achieve the above objective, the seller, after being insured, must give an endorsement of the insurance policy or other insurance policy to effect the transfer of insurance rights. After the buyer legally obtained the insurance documents, the buyer or any other person with an insurable interest in the goods is entitled to claim from the insurance company against the risk that the goods would be subject to insurance coverage during the course of their carriage, causing loss of or damage to the goods. Customs examination network
Import contracts under cip trade terms are insured by foreign sellers. Although the practice provides that the seller must enter into an insurance contract with a reputable insurer or insurance company. In the actual import business, however, foreign sellers choose to insure against less creditable insurance companies in order to save premiums, which may not be able to compensate if the goods are in material loss。
Conclusion of the contract of carriage
Cip trade terms are appropriate for various modes of transport, including air transport, land transport, rail transport and multimodal transport. The seller is conditional on entering into a contract of carriage “in the usual manner and by the usual route” and under the usual conditions. The customary route referred to here “should be that which is often required by the regular or general practice of persons engaged in such trade”. That is to say, if the seller is prevented from entering into the contract of carriage by force majeure on the usual route, the seller is exempt from liability for entering into the contract of carriage, resulting in late or non-delivery of the goods and the seller is not liable。
Iii. Handling and transit charges
Under cip conditions, the seller should hand over the goods to the carrier or other person or the first carrier on the date or time specified in the contract. If the place of delivery is where the seller is located, the seller should bear the cost of loading; if delivery is made at another place, the seller will not bear the cost of loading. As for the cost of unloading at the destination (port), it was borne by the buyer. In accordance with established practice, under the contract of carriage, the seller shall bear the cost of loading and any discharge at the destination means that the cip trade term is used for liner transportation, and the cost of handling is covered by the freight, i. E. The shipper, the seller。
Under the usual practice, if the contract of carriage is entered into by the seller under cip conditions and is trans-shipped by a third country, the costs incurred by the buyer or seller through national customs must be specified in the contract of sale or sale, otherwise the dispute arises. In the 2000 instrument, it was proposed that the buyer should in principle bear the burden of such taxes and duties, in coordination with the buyer's responsibility for clearing imports through third countries. Sometimes, however, under the contract of carriage, the seller may have to bear the relevant customs costs incurred by the goods in transit through a third country, which must be brought to the seller's attention。
