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Trade practices in the FOB price CIF price of the specific meaning of CFR prices 0 replies,3044 views

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China is now the most commonly used should be the FOB and CFR in two ways. CIF FOB is, that all the costs of goods before the board by the seller. CFR is the Hong Kong price, that is, before the goods arrive at the consignee's sea freight port land freight costs borne by the seller include insurance premiums to the CIF Hong Kong price, the seller has to bear not only to reach the consignee before the port land freight and sea freight , but also bear the insurance premium. First, the interpretation of the terms of FOB FREEONBOARD (... namedportofshipment), the FOB (... ... named port of shipment). This term means that the seller at the agreed port of shipment specified by the buyer the goods on board. Accordance with the "2000 General" provisions, the term only for sea and inland shipping. However, if the parties do not contract with delivery over the ship's rail, the FCA term is more appropriate to use. (A) the basic obligations of both parties by the ICC on the FOB by the interpretation of the basic obligations of their commitment to buyers and sellers. To sum up, can be divided as follows: 1. Seller obligations (1) the time specified in the contract or within the period the port of shipment, in accordance with the customary way to deliver the goods the buyer assigned to the ship, and promptly notify the buyer. (2) own risk and expense, obtain an export license or other official approval documents. The need for customs clearance, the goods for export all the necessary customs formalities. (3) the burden of goods across the ship's rail in the port of shipment until all costs and risks; (4) pay costs that the goods have been delivered on board the usual documents. If agreed by both buyers and sellers of electronic communication, all documents have the same effect can be electronic data interchange (EDI) messages replaced. 2. Buyer obligations (1) own risk and expense to obtain the import license or other official approval of the documents. The need for customs clearance, the goods for import and transit countries by all customs formalities and pay the relevant fees and transit fees; (2) is responsible for charter or booking, pay the freight, and to give the seller on the vessel name, loading place and required delivery time sufficient notice; (3) the burden of goods across the ship's rail in the port of shipment after all the costs and risks; (4) to accept the seller to provide the relevant documents, to take delivery of the goods in accordance with the contract payment. (B) "American Foreign Trade Definitions 1941 amendments to the" interpretation of the FOB, "American Foreign Trade Definitions 1941 amendments to the" interpretation of the FOB into the six, only: Specifies the FOB (FOBVessel, namedportofshipment) and "General Rules of 2000" is similar to the interpretation of the term FOB. Therefore, "American Foreign Trade Definitions 1941 amendments to the" interpretation and application of the FOB, with the international interpretation and application of generally significantly different, which is mainly manifested in the following areas: 1. U.S. practice generally interpreted as the FOB a conveyance somewhere delivery, its scope is broad, so in the United States, Canada and other countries FOB contract by the merchants, in addition to the name must be marked outside the port of shipment, must also be added after the FOB Shipping (Vessel) message. If only the drain is set at FOBSanFrancisco Vessel written words, the seller is only responsible for the goods to any premises in the city of San Francisco, is not responsible for the goods to the port of San Francisco and submitted to the ship. 2. Division of the risk, not to the port of shipment ship for the sector, but in the cabin for the sector, the burden of the seller until the goods are loaded into the cabin of the loss and damage happened. 3. The burden of the costs, and require the purchaser to pay the seller assist with the costs of export documents for exports and export taxes and other costs arising. (C) FOB deformation conditions in the transaction by FOB, the seller should be responsible to pay before the goods are loaded on all charges. However, the concept of countries is not uniform for the board's explanation of the costs related to who pays shipping, national practice or practices are not entirely consistent. If the use of liner shipping, ship unloading pipe tubing, loading and unloading freight liner included among the natural by the buyer is responsible for chartering; and by way charter transportation, the vessel generally do not pay handling costs. This board must be clear who should bear the costs. To illustrate the burden of shipping costs, the two sides often after FOB, add additional conditions, which formed a FOB of the deformation. Include the following: 1. FOBLinerTenns (FOB Liner conditions) this deformation is the shipping cost of treatment in accordance with the practice of the liner, from the ship or the buyer. Therefore, the use of this deformation, the seller does not pay for shipment of the related costs. 2. FOBUnderTackle (FOB hook deliveries) means the seller should bear the cost of the goods to the vessel named by the buyer hook reach of the Department, and the lifting Rucang and other fees will be borne by buyer. 3. FOBStowed (FOB stowed, including costs) means that the seller is responsible for the goods into the cabin, including stowage and bear the shipping costs, including costs. Cost of the goods stowed after one **** placement and finishing costs. 4. FOBTrimmed (FOB trimmed, including costs) means that the seller is responsible for the goods into the cabin and shoulder, including trimming costs, including shipping costs. Fee is trimming bulk cargo loaded into the cabin to finish the required fee. In many of the standard contract, as that borne by the seller, including stowage and trimming costs, including costs of the shipping costs, often by FOBST (FOBStowedandTrimmed) way. FOB of the deformation, only to show who pays all shipping costs incurred, does not change the FOB point of delivery and allocation of risk limits. "General Rules of 2000," pointed out that "General" to add these words after the term does not provide any guidance to the provisions of the proposed buyers and sellers should be clarified in the contract. Second, interpretation of the terms of CFR COSTANDFREIGHT (... Namedportofdestination), the Cost and Freight (... ... named port of destination). This term means that the seller must pay the goods to the agreed port costs and freight. Referred to here cost the equivalent FOB price, so the CFR term on the basis of the FOB price of the port of shipment to the port with the usual freight. "General Rules of 2000," pointed out, CFR is the world's widely accepted cost and freight terms only standard code should not use the C & F (or CandF, C + F) this traditional terminology. In the "2000 General", the CFR term can only be defined for sea and inland shipping. If the parties do not contract with delivery over the ship's rail, CPT term should be used. (A) the basic obligations of buyers and sellers by International Chamber of Commerce of the CFR according to the interpretation of the basic obligations of their commitment to buyers and sellers, summed up, can be divided as follows: 1. Seller obligations (1) own risk and expense, obtain an export license or other official approval of the documents needed for customs clearance, the goods for export all the necessary customs formalities. (2) entered into a carriage of goods from the named port of shipment destined for the port of destination specified in the contract of carriage; the time specified in the contract for the sale and port, the goods loaded on board and freight paid to destination; promptly notify the buyer after shipment. (3) to take the goods across the ship's rail in the port of shipment until all the risk. (4) to the buyer the usual transport document, as agreed by the seller and the buyer of electronic communication, all documents can be the same effect as electronic data interchange (EDI) messages replaced. 2. Buyer obligations (1) own risk and expense, to obtain the import license or other official approval of the documents needed for customs clearance, the goods for import and transit of another country if necessary, through all the customs formalities and pay the relevant fees and transit fee. (2) to take the goods across the ship's rail in the port of shipment after all the risk. (3) accept the seller to provide the relevant documents, to take delivery of the goods in accordance with the contract payment. (4) to pay other than the addition to the usual freight of the goods in transit as well as the fees incurred, including lighterage and wharfage charges, including discharge fee. (B) Notes with CFR 1. Seller shall promptly send notice of shipment transactions concluded by CFR, the transportation arranged by the seller, the buyer for shipping insurance. If the seller does not give timely notice of shipment, the buyer can not be in time for cargo insurance, there may even be the case of leakage insurance cargo insurance. Therefore, the seller to the buyer after shipment, be sure to promptly give a shipping notice, otherwise, the seller should bear the risk of the goods in transit and loss. 2. Imports by CFR should be cautious in the import business, according to CF, R condition completion, the view of the shipment by foreign investors, from our side is responsible for insurance, it should choose a good credit transactions of foreign customers, and to make appropriate requirements of the ship to prevent Foreign collaboration with the ship, issue a false bill of lading, hire unseaworthy vessels, or forged quality certificate and certificate of origin. If such situations arise, we will suffer undue losses. (C) CFR CFR terms by the deformation of the transaction, such as the use of liner shipping cargo, freight paid by the Seller CFR contract, the charges for unloading at the port is actually borne by the Seller. Usually charter transport commodities, such as ship loading and unloading charges by not pay conditions of the leasing of vessels, where it is unloaded from the burden of what costs, buyers and sellers should be stipulated in the contract. In order to clarify responsibilities, can be added terms in the CFR list out who pays for discharge costs specific conditions: (1) CFRLinerTerms (CFR liner conditions) This refers to the unloading costs by liner approach, that the buyer does not pay discharge fees. (2) CFRLanded (CFR unloading to the shore) which is borne by the Seller unloading costs including lighterage included. (3) CFREXTackle (CFR hook deliveries) This means that the seller is responsible for unloading goods from ship to ship lifting hook reach of the Department (on the dock or barge) of the cost. In the case of the ship can not dock, the cost of renting the barge and cargo unloaded from the barge to the shore of the cost borne by buyer. (4) CFRExShipsHold (CFR bilge delivery) This refers to the goods to the port of destination, the buyer start their own cabin, and the burden of unloading the goods from the bilge to the wharf costs. Should be noted that the additional conditions in the CFR term, just to clear where the burden of unloading costs from its delivery location and boundaries of the allocation of risk, there is no change. "2000 General" after the term of the additional conditions added to the explanation does not provide generally accepted the proposed terms of the contract to be provided by buyers and sellers. Third, the interpretation of the terms of CIF COST, INSURANCEANDFREIGHT (... Namedportofdestination), the cost, insurance and freight (... ... named port of destination). Click "General 2000" requirement, CIF terms only for sea and inland shipping. If the parties do not use delivery across the ship's rail, the CIP term is more appropriate to use. (A) the basic obligations of buyers and sellers by turnover at CIF terms, means that the seller must be the date specified in the contract or the period of the port of shipment will be shipped the goods to the named port of destination of the ship, the goods pass the ship's side until the burden of all costs and loss of the goods or risk of damage, is responsible for booking a charter, to pay the port of destination from the port of shipment to the normal freight, and is responsible for cargo insurance and pay premiums. It can be seen, CIF term except the obligation to the same terms with the CFR, the seller should be responsible for cargo insurance and pay premiums. (B) use the term CIF precautions 1. CIF contract, contract-shipment CIF terms, the seller of goods in the port of shipment will be loaded on board, which completed the delivery obligation. Therefore, using a contract term is CIF shipment contract. However, after the term specified in the CIF is the port of destination (for example, CIF London), in our terminology has been translated to CIF CIF, CIF contract so often misunderstood as the arrival of the legal nature of the contract. This must be clearly pointed out, CIF and other C-terms (CFR, CFr, CIP) and the F-terms (FCA, FAS, FOB), as the seller to complete delivery obligation in the shipment, the use of these terms are entered into the contract for the sale nature of shipment contracts. Contracts traded by these terms, the seller in the shipment (Hong Kong) to deliver the goods after shipment of the goods is no longer any risk of possible liability. 2. The seller to liability insurance contract in CIF the seller to the buyer's interests for cargo insurance, because this insurance is mainly to protect goods in transit after shipment risk. "2000 General" provisions of the insurance liability of the seller: In the absence of express agreement, the seller simply click "Institute Cargo Clauses" or other similar terms in the minimum insurance cover of responsibility. If the buyer is required, by the buyer's expense, Seller shall, where possible, covering war, strikes, **** and civil commotion. The minimum insurance shall be stipulated in the contract price plus 10%, and currency of the contract insured. In the real business in order to clarify responsibilities, and I trade with foreign customers to negotiate business transactions in the use of CIF terms, the general should be specified in the contract amount of insurance, insurance coverage and the applicable insurance policy. 3. Symbolic delivery issues from the perspective mode of delivery, CIF is a typical symbolic delivery (SymbolicDelivery). The so-called symbolic delivery is for the actual delivery (PhysicalDelivery) concerned. The former means that the seller complete the shipment at the agreed place on time, submit to the buyer under the contract, including relevant documents, including documents of title, even if the obligation to complete the delivery without having to guarantee arrival. The latter means that the seller should be in the time and place, the goods will meet the contract to the Buyer or its designee, not to pay in lieu of delivery. In the symbolic mode of delivery, the seller is a voucher, the Buyer is a voucher payment, as long as the seller to the buyer submitted on time and meet the full set of documents stipulated in the contract, even if the goods damaged or lost in transit, the buyer must also meet its payment obligations. Conversely, if the seller does not meet the requirements of the documents submitted, even if the goods intact arrival at the destination, the buyer is still entitled to refuse to pay the purchase price. Thus, CIF transaction is actually a sale and purchase documents. Therefore, the shipping documents in the CIF transactions of particular significance. It must be pointed out that the transaction by CIF term the seller to fulfill its obligation to pay a single, but a prerequisite for payment by the buyer, in addition, he must fulfill delivery obligations. If the seller does not meet the requirements of the consignment, the buyer even if the payment has been made, the provisions of the contract can still claim to the seller. (C) CIF distortion in international trade, commodity trading process usually charter transport, in most cases, shipping companies generally do not pay handling fees. Therefore, in the CIF conditions, buyers and sellers to easily discharge the burden of fees from the issue of where the controversy. In order to clarify responsibilities, buyers and sellers should discharge fees in the contract on the issue of who should bear clear and specific provisions. If the buyer do not want the burden of unloading fees, negotiate the contract may be asked to be added after the CIF term LinerTerms (liner condition) or Landed (unloading to the shore) or ExTackle (hook deliveries) words. If the seller do not want the burden of unloading fees, negotiate the contract may be asked to be added after the CIF term ExShipsHold (bilge delivery) words. After the CIF terms to add various additional conditions, as CfR a variety of terms to add additional conditions after the same, just to clear who will discharge the burden of fees does not affect the delivery location and the boundaries of risk transfer.
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