Incoterms CIF and cases_International trade law

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Incoterms CIF and cases

Sources of information：未知Release time:2017-02-27 13:30　Reading times：次I would like to comment

Full text of the CIF is CostInsuranceandFreight(...namedportofdestination), on cost, insurance and freight (... ... Named port of destination). When the CIF terms are used, the seller's obligation is, is responsible for the normal Charter booking, pay fordelivery to the port of destination, and the port of shipment and the goods have been loaded within the specified period, notify the buyer after shipment. The seller is also responsible for handling from the loading port to

The buyer

⑴ assumed all risks after the goods across the ship's rail

⑵ usually is responsible for the shipment after shipment at destination freight, insurance premiums, and other costs

C import

D payment

The seller

⑴ the shipment, payment to the port freight, inform the buyer

⑵ all risks before the goods pass the ship's rail

C the insurance, pay a premium

D for export

⑸ provides documents of freight insurance and pays the insurance premium.

1, the use of CIF terms, buyers and sellers to their basic obligations are outlined below.

2, insurance coverage questions

CIF in terms of "I" indicates that Insurance. the insurance policy. Price formation, this refers to the insurance, that is included in the price of insurance; from the seller'sresponsibility to speak, he is responsible for freight insurance. Insurance shall be aclear risk, different kinds of risks, the scope of the insurer, insurance rates chargedby different. CIF terms, the signing of the sale contract, specified in the clauses of the contract coverage, insurance amount and so on, so that the seller shall be insured in accordance with the provisions of the contract. But if the contract fails to make specific provisions on issues such as coverage, then in accordance with the relevant conventions. In accordance with the General principles of the 2000 explanationof CIF, sellers only need to insure the lowest risk, but at the buyer's request, and under buyer's expense, plus coverage of war, strike, riot and civil commotion risk.

3, symbolic delivery problems

From the mode of delivery, CIF is a type of symbolic delivery. So-called symbolic delivery is according to actual delivery. Means the seller as long as scheduled at theagreed place of shipment, and contract to the buyer of the relevant documents, including the documents, even completed the delivery obligation without guaranteed delivery. Obviously, under the symbolic mode of delivery, the seller is delivery vouchers, buyer is responsible for payment. As long as the seller to the buyer underthe contract as scheduled a full set of conforming documents (name, content, andconsistent copies of documents), even if the goods are damaged or lost in transit,the buyer must also comply with payment obligations. Conversely, if the seller does not meet the requirements of the document, even if the goods arrived at their destination in good condition and still has the right to refuse to pay. However, it must be pointed out that, according to CIF terms, the seller to fulfil its tasks, only under payment of the buyer, other than that, he must also fulfil the obligation of delivery. If the goods do not meet the requirements of the seller, the buyer even if payment still can claim under the contract to the seller.

Case study:

Export CIF trade terms, in accordance with the stipulations of the contract a full setof shipping documents, including completion of shipment Bill of lading. However, the cargo ship foundered on the second day, proposed after buyers rushed to reject the document, refused payment. Ask the seller how to handle? Why?

4, shipment contracts, not to contract, if a specific arrival time is not the true meaning of CIF terms the nature of the contract. Separation of risk limits and cost boundaries.

Case study:

? A CIF contract, the seller must deliver goods to x x x months prior to the date ofservice of the port of destination, is it reasonable?

? If FOB, CFR?

5, the cost of discharge

Former CFR terms to resolve the cost burden of discharge produced by the deformation, fully applicable in the CIF. Deformation of the CIF, mainly in the following ways:

① CIF Liner Terms (CIF berth terms) this deformation means unloading costs by shipping practice, expenses that the buyer does not burden discharge, or ship shallbe borne by the seller.

② CIF Landed (CIF to unloading Pier) this deformation is defined by the seller to discharge the goods on the quay of the relevant costs including Lighterage and wharfage charges.

③ CIF Ex Tackle (CIF under the hook transition) this deformation means the seller is responsible for the ship unloaded the cargo from the ship lifted to hook and place (on the quay or boat) costs. In the case of ships cannot be * Bank, cost of renting the barge and cargo from barges unloading to shore costs, shall be borne by the buyer.

④ CIF Ex Ship's Hold (CIF transfer bilge) according to the conditions of this transaction, the goods arrive in the port of destination on board after handing over, sincecabin lift until unloaded at terminals by the end of the landing charges, shall be borne by the buyer.

Example:

1.CIF Liner Terms CIF and Landed both of these terms are deformations of the CIF,are borne by the seller delivery charge, which is when you use the terms CIF Landed, lighterage and wharfage charges that may occur are: seller

2. the matters needing attention in using CIF terms is: CIF contract is "shipment contracts", the seller responsibility to provide insurance,

Symbolic delivery problems.

Case study:

A company on the basis of CIF ROTERDAM exports to the Netherlands a number of air conditioning, the parties in the contract provisions: the buyer shall before the end of September to leave your credit, Seller warrants that the vessels not later than December 1, arrived at the port of destination. Such as cargo vessels arrivedon December 1, the buyer is entitled to cancel the contract. where payment has been received, the seller shall reimburse the purchaser. this clause in a contract is reasonable? Why?

Analysis: the unreasonable

Based on CIF terms of contracts in the port of shipment delivery. While CIF belongs to the symbolic delivery when the goods at the port of shipment specified in theship's rail, completed the delivery by the seller, seller is not bound to guarantee delivery, provides that the goods have arrived on December 1 is hence unreasonable.

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