Analysis Of Trade Terms

Named port of shipment) - free on board port of shipment (...

The named port of shipment means that the seller must designate the port of shipment within the time of shipment stipulated in the contract to deliver the goods to the ship nominated by the buyer and bear all the expenses until the goods pass the ship's side and the risk of loss or damage to the goods.

1. to be responsible for delivering the goods conforming to the contract to the ship designated by the buyer in accordance with the customary port of shipment within the specified date or period of the contract and giving the buyer sufficient notice.

2. responsible for handling export procedures and obtaining export licenses or other approvals;

3. to bear all costs and risks of the goods passing the ship's port at the port of shipment;

4. responsible for providing commercial invoices and certifying the general documents that have been delivered to the ship.

If the buyer and the seller agree to use electronic communication, all documents can be replaced by EDI message with the same effect.

1. to pay the price according to the contract stipulations.

2. responsible for chartering or booking, paying freight, and giving sufficient notice to the seller about the name of the vessel, the place of shipment and the time of delivery.

3. all the customs formalities for obtaining import licenses or other approvals and handling the importation of goods and pit through another country if necessary.

4. to bear all costs and risks of the goods passing the ship's side at the port of shipment;

5. collect the goods delivered by the seller according to the contract, and accept the documents that are in conformity with the contract.

To adopt FOB terminology, we should pay attention to the following points:

1. the buyer shall charter the ship in time, and notify the seller in time of the name, place and time of shipment, so that the seller can make timely shipment and arrange shipment.

Otherwise, it will constitute a breach of contract by the buyer.

This may lead to the seller's request for rescission of the contract and / or claim for damages.

2. the shipping cost burden. A ship is represented by FOB terminology.

Common are:

FOB FOB Liner terms means that the shipping cost is borne by the buyer (i.e. the buyer) who pays the shipping fee as a liner.

FOB FOB under tackle (hereinafter referred to as "delivery") shall be borne by the buyer at the place where the seller will place the goods at the point where the ship's hooks are available.

FOB includes FOB stowed (FOBS), which means that the seller is responsible for loading the cargo into the cabin and paying the shipping costs including the shipping charge.

FOB includes FOB trimmed (FOBT), which means that the seller is responsible for loading the cargo into the cabin and paying the shipping charges including trimming charges.

3. the United States interpretations of FOB terms are different from those of the 1990 Incoterms. The United States divides the FOB terminology into six categories. Among them, only the "designated port of shipment" (FOB port of shipment) is similar to the 1990 INCOFERMS interpretation. Therefore, when our foreign trade enterprises are negotiating import business with the US and other American exporters in accordance with the terminology, they should clearly indicate that the other party (seller) is responsible for obtaining the export license and paying all export taxes and fees in addition to the "words" after the terminology of the accelerator.

Named port of destination) - cost plus insurance and freight (...

The named port of destination) means that the seller must deliver the goods to the ship at the port of destination at the port of shipment within the time of shipment stipulated in the contract, and bear all the expenses until the goods pass the ship's side and the risk of loss or damage to the goods, and shall be responsible for handling the cargo insurance, paying the premium, and chartering the shipping or booking the shipping space, and paying the freight from the port of loading to the port of destination.

1. to be responsible for the delivery of the goods conforming to the contract at the port of shipment to the port of destination specified at the port of shipment, and to give the buyer sufficient notice.

2. responsible for handling export procedures and obtaining export licenses or other approvals;

3. responsible for chartering or booking and paying the freight to the port of destination;

4. responsible for handling cargo pportation insurance and paying insurance premium;

5. to bear all costs and risks of the goods passing the ship's port at the port of shipment;

6. responsible for the provision of commercial invoices, insurance policies and goods to the agreed port of destination.

If the buyer and the seller agree to use electronic communication, all documents can be replaced by electronic data interchange with equal effect.

1. to pay the price according to the contract stipulations.

2. responsible for handling import procedures and obtaining import licenses or other approvals.

3. to bear all costs and risks of the goods passing the ship's side at the port of shipment;

4. collect the goods delivered by the seller according to the contract, and accept the documents that are in conformity with the contract.

1. the CIF contract is a "shipping contract". Although we usually call it "CIF", it means the composition of the price is the cost plus insurance.

It does not mean that the seller is also responsible for the risk before the goods arrive.

The Seller shall no longer be liable for any possible risks of the goods after the goods are delivered to the seller at the place of shipment as stipulated in the contract.

2. the Seller shall charter the ship in time for booking.

3. the Seller shall make insurance according to the contract requirements. The starting and ending date of the insurance liability shall be in conformity with the goods pportation and shall be effective from the buyer's protection no later than the time when the buyer is required to bear the risk of loss or damage of the goods (i.e., when the goods pass over the ship's side at the port of shipment).

The time limit for this insurance liability must be extended until the port of destination agreed on arrival of the goods.

4. the burden of unloading charges is often expressed in terms of CIF terminology, such as:

2 CIF CIF (Liner terms), which means that the unloading cost is handled according to the conditions of the liner, and is borne by the party paying the freight (i.e. the seller).

2 CIF CIF ex ship "s hold" means the buyer's burden of unloading the cargo from the bottom of the bilge to the dock.

2 CIF ex tackle (CIF) refers to the expenses borne by the seller to lift the cargo from the bottom to the side of the ship and unload the hook.

2 CIF discharging to CIF (landed) means the cost of unloading the goods to the port of destination by the seller.

The 5.CIF contract is a symbolic delivery contract.

The seller submits only the documents that meet the requirements of the contract, that is, the delivery of the goods. Even if the goods have been damaged or damaged even when the seller submits the documents, the buyer still has to pay the documents by documents, but he can claim compensation from the one-way ship or the one-way insurance company.

Named port of destination) -- cost plus freight (...

The named port of destination) means that the seller must deliver the goods to the port of destination at the port of shipment within the time of shipment stipulated in the contract, and bear all the expenses until the goods pass the ship's side and the risk of loss or damage to the goods, and shall be responsible for chartering or booking the cargo and paying the normal freight charges at the port of destination.

In accordance with the general provisions of 1990, the main obligations of CFR buyers and sellers are as follows:

1. to be responsible for the delivery of the goods conforming to the contract at the port of shipment to the port of destination specified at the port of shipment, and to give the buyer sufficient notice.

2. responsible for handling export procedures and obtaining export licenses or other approvals;

3. responsible for chartering or booking and paying the freight to the port of destination;

4. to bear all costs and risks of the goods passing the ship's port at the port of shipment;

5. responsible for providing commercial invoices and common shipping documents for goods destined for the agreed port of destination.

If the buyer and the seller agree to use electronic communication, all documents can be replaced by electronic data interchange with equal effect.

1. to pay the price according to the contract stipulations.

2. responsible for handling import procedures and obtaining import licenses or other approvals.

3. to bear all costs and risks of the goods passing the ship's side at the port of shipment;

4. is responsible for the handling of insurance procedures and the payment of insurance fees;

5. collect the goods delivered by the seller according to the contract, and accept the documents that are in conformity with the contract.

Because in the CFR terminology, the seller is responsible for arranging the pportation, and the buyer is responsible for the insurance. Therefore, before the goods are loaded onto the ship, that is, before the risk is pferred to the buyer, the buyer will timely complete the insurance to the insurance company, which is a crucial issue in the CFR contract.

Therefore, IVCOTERMS emphasizes that the seller must inform the buyer without delay that the goods have been loaded on board.

Otherwise, the seller is liable for breach of contract.

2. in terms of unloading cost, the term of CFR CFR is usually used in terms of unloading cost, for example:

2 CFR CFR (Liner terms), which means that the unloading cost is handled according to the conditions of the liner, and is borne by the party paying the freight (i.e. the seller).

2 CFR CFR Ex Ship (s hold) means that the seller is responsible for lifting the cargo from the bottom to the side of the ship.