The seller covers the transport costs up to the destination point, but they no longer bear the responsibility for the goods, which now travel at the buyer’s risk. The transfer of risk occurs as soon as the goods are handed over to the carrier, while the responsibility for costs is transferred to the buyer when the goods arrive at the destination.
The seller assumes the transport costs up to the destination point specified by the Incoterms®. Frequently used, especially for containerized transport, CIP allows the seller to control the movement of the goods to a designated point.
As with CPT, the unloading costs at the destination are the seller’s responsibility only if the transport contract stipulates it. However, unlike CPT, the seller is required to take out insurance covering the risks associated with the transport of the goods to the destination point.
The DPU replaces the DAT from 2010 and is a new rule in the Incoterms® 2020. Under this rule, the goods are considered delivered once they are unloaded from the transport vehicle and made available to the buyer at the agreed destination, whether it is a terminal or any other location. In this rule, delivery and arrival at the destination happen at the same place.
The seller assumes all risks and costs associated with the transport and unloading of the goods to the designated location. DPU is the only Incoterms® rule that requires the seller to unload the goods at the destination.
This Incoterms® stipulates that the goods are considered delivered when made available to the buyer at destination on the arriving transport vehicle, without the need to be unloaded. Under this rule, the seller is responsible for transporting the goods to the agreed delivery point in the destination country.
Therefore, unless otherwise stated in the transport contract, the buyer is responsible for the customs formalities, payment of import duties and taxes, as well as unloading the goods at the destination.
This Incoterms® rule imposes the highest level of obligations on the seller, covering all risks and costs, including customs clearance fees, until the agreed location. Under this Incoterms®, the goods are delivered already cleared through customs and ready to be unloaded at the destination. Only the insurance and unloading costs at the destination are the responsibility of the buyer.
The costs and risks are transferred to the buyer when the goods are made available alongside the ship, for example, on a quay, at the designated port of shipment. From this point onward, the buyer assumes all costs related to the goods, including loading, sea transport, and unloading from the ship.
The costs and risks are transferred as soon as the goods are loaded onto the ship designated by the buyer, at the agreed port of shipment. Unlike FAS, where the seller is not responsible for loading, here the seller is required to take care of this operation.
As with the C multimodal rules, the risks and costs are transferred separately. The risks are transferred to the buyer when the goods are delivered on board the ship at the port of departure, while the costs are the responsibility of the seller, according to the transport contract, until the goods arrive at the port of destination, excluding unloading.
Thus, in principle, the unloading costs from the ship as well as the associated handling charges are the responsibility of the buyer, unless otherwise stated in the transport contract.
Similar to the CIP multimodal, the CIF maritime is mainly distinguished by the level of insurance coverage, which is less extensive than the all-risk coverage required for CIP. However, the insurance must cover at least the value of the goods plus 10%.
