CIP (Carriage and Insurance Paid to): means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer s risk of loss of or damage to the goods during the carriage. The following CIP price calculation is based on the following formula:
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