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Inco 3
Inco 3
Risks *Insurance
KEY TO THE TERMS USED Exposure to an event which may cause loss Under the CIP and CIF clauses, the seller must,
of or damage to goods is referred to as a risk. on behalf of the buyer, take out insurance at his
EXW, FCA etc.
Insurance can be taken out against most own expense against transport risks. The clauses
The official abbreviations for the trade terms.
risks. provide that the insurance shall be taken on at
Trade term applicable to transport by ship least the minimum terms and conditions – such
as the Institute Cargo Clauses (C) – unless the
Trade term applicable to land transport seller and the buyer agree otherwise. These clauses
The seller is liable for loss The buyer is liable for loss
All other trade terms are applicable to any mode cover, however, only part of the cargo risks.
of or damage to goods. of or damage to goods.
of transport.
Documents
Documents refers to the seller’s and the buyer’s Costs Cargo insurance taken out by the seller
obligation to acquire documents to be produced All expenses for goods and transport of goods up to the named port of destination or the
named place of destination.
at certain stages of transit. The validity of the are referred to as costs.
documents are, however, not indicated. Such
documents include, for instance, export licences,
certificates of origin, transport documents and The seller is liable for costs. The buyer is liable for costs.
insurance certificates.
The seller acquires the documents, The trade terms do not define the critical point.
where requested by the buyer, at the buyer’s expense Therefore, the critical point, i.e. the place where all Lapinmäentie 1, Helsinki
101 231 1 4.05 2.000
and risk. The buyer is responsible for the documents contractual obligations are transferred from the seller Postal address: FIN-00013 Pohjola, Finland
being valid for a specific purpose. to the buyer, must be precisely defined in the contract. Tel. +358 10 559 11 Fax +358 10 559 3276 www.pohjola.fi