Jasmine Gladstone

To make sure goods are correctly insured, they use the formula of CIF value x 110%. CIF value is the commercial invoice value + insurance costs + freight. The 10% covers any unforeseen costs. The insurance can cover the repair or replacement of goods at a location other than the consignee’s facility. An insurance claim may be prorated if part of the shipment is lost or damaged.

CIF requires Clause C (Institute of Cargo Clauses) which is a basic level of insurance suitable for bulk commodity cargoes but not manufactured goods. Incoterms 2020 requires CIP use a higher quality insurance (Clause A) as it’s often used for manufactured goods.

If a shipment is underinsured, the insurer may only pay a percentage of the shipment.

If goods arrive damaged, someone on the dock should make a note on the bill of lading at the time of arrival to help with the insurance claim.

Carriage Paid To requires the seller to deliver the goods to the carrier chosen and also pay for transport charges. The buyer is responsible for any costs incurred after delivery of the goods. The seller obtains the export licence and the buyer organises the import licence. Transfer of risk and responsibility of goods transfers from the seller to the buyer as soon as the goods are delivered to the first carrier.

CPT is often used in conjunction with a destination, so both parties are clear which terminal the goods will arrive at.

For the first consignment, enter 1 as the number of packages + the package type as well as the markings and numbers of the packages. For the other consignments, enter 0 as the number of packages + the package type as well as the markings and numbers of the packages.

You must enter exactly the same package types and the same package markings and numbers for each consignment and write these data in exactly the same way.

A unique identification number used in customs declarations across the European Union to identify the trader (exporter or importer). EORI is generally based on a company’s VAT number. Any business wishing to engage in export or import in the UK should apply to HM Revenue & Customs for an EORI number.

This is the computerised operating system and interface used in the UK by H.M. Revenue & Customs which is responsible for controlling and recording all of the UK’s international trade movements. It links UK Customs offices to thousands of sea-and airports, inland facilities, freight Customs agents, UK businesses and European Customs authorities.