Documentary trade terms

Documentary trade refers to trade based on face-to-face documents. This is a traditional transaction method, and most transactions still use this method. The following are the terms of document trade that I have compiled. Welcome to read and browse.

I. CFR

CFR is the abbreviation of cost plus freight, which means cost plus freight. Compared with CIF, the CFR term seller is not responsible for handling insurance procedures, paying insurance premiums and providing insurance documents. The insurance of the goods shall be handled by the buyer himself. In addition, the obligations and risk division of CFR and CIF terms are basically the same, so I will not repeat them here.

What needs special attention is the issue of shipping notice. Since the seller is responsible for shipment and the buyer is responsible for insurance, the buyer should arrange insurance with the insurance company in time before the goods are shipped, that is, before the risk is transferred to the buyer. The buyer can only apply for insurance after receiving the shipping notice, and the seller must send the shipping notice to the buyer in time. Otherwise, the buyer can't apply for insurance, and may even miss the insurance. In this way, the seller will bear the risks on the way before issuing the shipping notice.

The above three trade terms are only applicable to waterway transportation.

Two. Cost Insurance and Freight

CIF is the abbreviation of cost insurance and freight, which is called cost insurance and freight. When used, the term should indicate the port of destination, such as CIF new york.

(A) the division of basic obligations of both parties

According to the interpretation of "2000 General Rules", the main obligations of the buyer and the seller in the CIF contract are as follows:

1. Main obligations of the seller

1) is responsible for chartering and booking shipping space, loading the goods required by the contract at the time and port stipulated in the contract, paying the freight to the destination port, and notifying the buyer in time after loading.

2) bear all expenses and risks before the goods cross the ship's rail at the port of shipment.

3) Handle cargo transportation insurance and pay the insurance premium according to the contract.

4) Be responsible for handling export procedures and obtaining export licenses or other official approval documents.

5) Be responsible for providing commercial invoices, insurance policies, cargo transport documents or electronic information with the same effect.

2. The main obligations of the buyer

1) is responsible for the extra expenses incurred by the goods in the sea except freight and insurance.

2) bear all expenses and risks after the goods have crossed the ship's rail at the port of shipment.

3) Accept the relevant documents provided by the seller and pay the money according to the contract.

4) Go through the customs formalities required for the import of goods and obtain import licenses or other official approval documents.

(B) the use of CIF terminology should be noted.

1. About the insurance problem

If the transaction is concluded on CIF basis, the insurance shall be handled by the seller. When handling insurance, the insured's insurance risks are different, the insurer's coverage is different, and the insurance rates charged are also different. Generally, when signing a contract, the insurance clauses should clearly stipulate the insurance risk and the insurance amount. In this way, the seller can go through the insurance formalities as stipulated in the contract to avoid insurance disputes in the future.

2. The problem of chartering and booking space

One of the basic obligations of the seller is to charter a ship to book the shipping space and pay the freight. If there is no special agreement, the seller is only responsible for renting a suitable ship to transport the goods to the destination port according to the usual conditions and customary routes. If the buyer requests to restrict the nationality, type, age, class and liner company of the ship, it can be negotiated when signing the contract. After signing the contract, the buyer puts forward these requirements, and the seller has the right to refuse.

3. Symbolic sexual intercourse.

The so-called symbolic delivery refers to the actual delivery, that is, as long as the seller completes the shipment at the agreed place on time and submits the relevant documents stipulated in the contract to the buyer, even if the delivery obligation is completed, there is no need to guarantee the arrival of the goods. CIF is a typical symbolic commodity.

In the symbolic delivery mode, the seller delivers the goods against documents, and the buyer pays cash against documents. As long as the seller submits a complete set of qualified documents stipulated in the contract to the buyer as scheduled, the buyer must fulfill the payment obligation even if the goods are damaged or lost in transit. On the other hand, if the documents submitted by the seller do not meet the requirements, even if the goods arrive at the destination intact, the buyer still has the right to refuse payment. The seller should attach great importance to the production of documents that fully meet the requirements.

Changes in CIF terms, according to the different burden of unloading costs, CIF has the following different changes:

According to normal liner practice, the unloading fee should be borne by the seller, not by the buyer, which has been included in liner transportation.

CIF Landed, the seller shall bear all relevant expenses for unloading the goods to the dock, including barge fees and dock fees.

CIF FOB? After the goods arrive at the port of destination, the unloading expenses from the bilge to the dock shall be borne by the buyer.

Third, CPT.

CPT is the abbreviation of freight collect, which means freight collect? . Under CPT, the delivery place and risk division boundary are the same as CIP, but the difference is that when CPT is adopted, the insurance liability and expenses are transferred from the seller to the buyer, and other obligations remain unchanged.

It should be noted that under CPT, the seller is responsible for transportation and the buyer is responsible for transportation insurance. In order to avoid the disconnection between the two, the seller should send the shipping notice to the buyer in time.

Four. Cataloging in publication

The English full name of CIP is Carriage and Insurance Paid To, which means freight and insurance are paid? . The destination name should be added after CIP, which can be the border between the two countries, the port of the importing country or the inland location of the importing country. It is also suitable for various modes of transportation. Compared with FCA, CIP also completes the delivery when the seller hands over the goods to the carrier, but the seller must also pay the freight and insurance fees required to transport the goods to the designated destination.

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