This page is designed to provide a basic level of understanding of Incoterms ® 2020 Rules published by the International Chamber of Commerce (ICC)
The meaning of it is that the delivery is completed for the supplier when customs procedures for export were completed, paid insurance policy and the goods were transferred to the forwarder for transportation to a specific destination provided for in the agreement. Sum insured must be 110% of the value of the agreement and in the currency of the international agreement. All risks associated with the transportation of goods pass from supplier to recipient after delivery of the goods to the forwarder. CIP is concluded on the basis of an international contract of sale, which indicates all the responsibilities and what expenses each party bears. As a rule, the supplier bears all responsibilities with the delivery, insurance policy and clearance of goods to a specific destination.
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.