One of the leading cement manufacturers has ordered for a ship load of coal from Australia.

The
arrangement will be for discharging the consignment at their private port. Seller will be loading Insurance
and freight charges up to the discharge port (private port). Identify the appropriate terms of delivery.
INCO term followed is CIF

term 2010
Export customs declaration
Carriage to port of export
Unloading of truck in port of export
Loading on vessel in port of export
Carriage (Sea/Air) to port of import
Insurance
Unloading in port of import
Loading on truck in port of import
Carriage to place of destination
Import customs clearance
Import taxes

CIF
Seller
Seller
Seller
Seller
Seller
Seller
Buyer
Buyer
Buyer
Buyer
Buyer

You as a manufacturer of heavy equipment have agreed to deliver the consignment at a named place in
Europe. Insurance and freight charges will be loaded on the base price. Which will be the most
appropriate terms of delivery?
Most appropriate terms of delivery shall be CIF

term 2010
Export customs declaration
Carriage to port of export
Unloading of truck in port of export
Loading on vessel in port of export
Carriage (Sea/Air) to port of import
Insurance
Unloading in port of import
Loading on truck in port of import
Carriage to place of destination
Import customs clearance
Import taxes

CIF
Seller
Seller
Seller
Seller
Seller
Seller
Buyer
Buyer
Buyer
Buyer
Buyer

What is the difference between CIF and CIP?

term 2010
Export customs declaration
Carriage to port of export
Unloading of truck in port of export
Loading on vessel in port of export
Carriage (Sea/Air) to port of import
Insurance
Unloading in port of import
Loading on truck in port of import
Carriage to place of destination
Import customs clearance
Import taxes

CIF
Seller
Seller
Seller
Seller
Seller
Seller
Buyer
Buyer
Buyer
Buyer
Buyer

CIP
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Buyer/Seller
Buyer
Buyer
Buyer

As an importer which of the two INCOTERMS you will opt in case you import certain materials from
Zurich. Overseas seller will be quoting the price inclusive of freight and insurance.
Option 1 CIP
Option 2 DAP

term 2010
Export customs declaration
Carriage to port of export
Unloading of truck in port of export
Loading on vessel in port of export
Carriage (Sea/Air) to port of import
Insurance
Unloading in port of import
Loading on truck in port of import
Carriage to place of destination
Import customs clearance
Import taxes

DAP
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Buyer
Buyer

CIP
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Buyer/Seller
Buyer
Buyer
Buyer

The most preferred option of incoterms is DAP as the transportation and loading unloading risk can also
be transferred to the seller.