You are here： >> FOB, CFR and CIF terms risk and prevention >> The body ofFOB, CFR and CIF terms risk and prevention
Sources of information：未知Release time:2017-02-27 13:23 Reading times：次I would like to comment
In the business of foreign trade for the trade term is mainly used to determine thedelivery conditions of shipment delivery FOB, CIF and CFR this three. According to the International Chamber of Commerce to more than 40 countries in the late 90 'ssurvey, according to the intensity of use, FOB in the first place. Thanks to FOB conditions upon completion, at the port of shipment by the seller after delivery, not responsible for arranging transport and insurance, are worried about rates of problems. But there is a misconception in many people, which uses three kinds of commonly used terms, the risk is exactly the same, it is bounded by boat transfer risk, burden is on "wool grows on the sheep's back", and finally under the buyer just hasdifferent responsibilities. This misconception led some people to do business with foreign firms ignore the careful choice of trade terms, which causes unexpected loss. In fact, the trade terms of international practice in the General principles of the2000 says "bounded by the ship's rail" risk is merely used to identify goods in thetransition process of damage or consequences of the loss by the seller or the buyer's problem, and does not refer to all of the risks, in particular issues relating to foreign exchange risk.
Turns out, my export business, as the seller according to the details of the deal, carefully select the appropriate terms of trade against foreign exchange risks, enhance economic efficiency is very essential. Next, I talk about should pay attention to several issues in selecting trade terms.
First, in General, used in the export CIF or CFR terms to than FOB favorable. Because, in the CIF condition, three involved in the international sale of goods contracts (sales contracts, contracts of carriage and insurance contracts) by the seller, as his client, he can arrange stock according to the circumstances, shipping, insurance and other matters, and guarantee that the process connection. In addition, conducive to the development of the country's shipping industry and the insurance industry, increased trade in services revenue. Of course, this is not absolute, it first traded under specific circumstances should be taken into account with own transportation without difficulty and that are economically viable, and other factors.
Second, as a last resort use FOB conditions upon completion, buyer sent the ship to the port of loading time should be clearly stipulated in the contract, so as to avoid seller's goods have been prepared, shipping delays, delaying shipment happens.
Third, the FOB conditions, buyer's designated foreign freight forwarders should seriously consider whether to accept the case. More recently repeated collusion between the buyer and the freight, requires delivery of cargo ship free, causing the seller money order two things. In addition, forwarding set up a small office in the port of shipment, no actual shipment capacity back through our related agencies, increases the link reduces efficiency and increases the cost. As a seller to buyer's designated freight forwarder qualification has some understanding of the situation, considers unacceptable and should be rejected.
Four, selecting trade terms should be considered in conjunction with payment. Such as payment on delivery or collection when payment of commercial credit, try toavoid using FOB or CFR terms. Because these two terms, in accordance with the provisions of the contract, the seller is not obligated to provide insurance, accordingto deal with by the buyer. If unfavorable when performing well for the buyer, the buyer refuses to receive the goods, it is possible without insurance, so that once thegoods are on the way of danger may result in money order two empty. As a last resort the use of these two terms, the seller shall insure the buyers ' interest in the local risks.
When he was five, even if the letter of credit payment, attention should also be imposed on the shipper, particularly under FOB conditions, some foreign buyers often asked in the letter of credit submitted by Bill of lading to the buyer by the selleras shipper (Shipper), this will also bring foreign exchange risk to the seller. Such things have occurred in international trade: buyers and sellers deal on FOB terms, stipulated in the contract by letter of credit. Stated in the credit of the buyer from theseller's bills of lading to indicate the shipper for the buyer. Seller's trial evidence and found the problem. However, that concluded the contract of carriage with the carrier is the buyer, buyer as shippers are also logical, and then modify the letter of credit will increase costs and delay of shipment, so the seller did. Bill of lading submitted by buyer after delivery to the shipper. But settlement documents with discrepancies, the Bank bounced back.
During the transportation of the goods, the buyer indicated by a bill of lading on behalf of the shipper, the carrier of the goods to his designated consignee. This iscontrolled by the seller as a bill of lading real right certificate, however, has beendesignated by the buyer of the goods to the consignee. Seller to court without Billof lading by the carrier, was dismissed by the Court have no right to sue on the grounds. Therefore, under a FOB contract, or the buyer to the seller as shipper is not a trivial thing. According to the explanation of the Hamburg Rules, the shipper has two, one of them is the carrier signed a contract of carriage by sea, and anotheris to have the goods delivered to the carrier people relating to the carriage of goods by sea. According to this explanation, under a FOB contract, the buyer or the seller to comply with as a condition of the shipper. If the buyer's credit is good, and has resold the goods in transit requirements, as a shipper has demonstrated itsamenability to the buyer. But if not, from security reasons, or to the seller as shipper as well.
section navigation
Site recommended
About us | Contact us | Online submission | Using help | Site map | Set as homepage | Add to Favorites
Copyright 2012-2018. ALL RIGHTS RESERVED (International Trade Law)
Telephone：0086-13315171023 QQ:1215545143
Email：tradelawchina@hotmail.com Technical support：ZW0311
Copyright 2012-2018. ALL RIGHTS RESERVED (International Trade Law)
Telephone：0086-13315171023 QQ:1215545143
Email：tradelawchina@hotmail.com Technical support：ZW0311