Have you done a few times CIF trade, are you clear about these obligations?
- Author:Alvin
- Source:HKSG-GRUP
- Release Date:2017-09-21
Have you done a few times CIF trade, are you clear about these obligations?
What is CIF Terms of Trade?
CIF full name COST, INSURANCE, AND FREIGHT, that is, the cost plus insurance plus freight. (Designated port of destination) means that the seller completes the delivery when the goods cross the ship's side at the port of shipment (in the case of a ship). Goods from the port of shipment to the port of destination freight premiums paid by the seller, but the goods shipped after the damage and loss of risk borne by the buyer.
Where are the boundaries of dividing risk and expense?
The division of the risk of goods at the port of loading container, that is, the goods into the cabin to complete the delivery of the seller, the risk transferred to the hands of buyers.
The cost of the goods shipped in the port of destination, that is, from the goods shipped to the arrival of goods between any costs borne by the domestic seller.
What responsibilities and obligations does the seller need to perform under the CIF clause?
A, within the time limit stipulated in the contract, at the port of shipment will be in accordance with the contract to the goods shipped to the designated port of the ship, and give the buyer shipping notice.
B, responsible for the export of goods procedures, obtain an export license or other approval certificate (origin, commodity inspection certificate, etc.)
C, responsible for chartering or booking and payment to the port of destination sea freight.
D, responsible for handling the goods transport insurance, pay insurance premiums.
E, responsible for the goods in the port of shipment across the ship so far all the costs and risks.
F, responsible for the provision of commercial invoices, insurance policies and goods have been shipped bill of lading.
What responsibilities and obligations do the buyer need to perform?
A, according to the contract to pay the price.
B, responsible for the import procedures to obtain import licenses or other approval.
C, the risk of cargo at the port of shipment after crossing the ship's post.
D, the seller to receive the goods in accordance with the provisions of the contract, to accept documents consistent with the contract.
What are the precautions in the actual operation of the CIF clause?
1, confuse CIF and FOB
Because both the delivery point and the risk point are in the port of shipment on the ship, so prone to confusion. The seller at the port of shipment to the goods safely installed on board the ship to complete the seller's obligations, after shipment of goods may occur risk, the seller no longer bear the responsibility. The seller will insurance bills, bills of lading, etc. by the buyer, the risk claims by the buyer to handle.
2, generally do not accept the buyer specified freight forwarding
CIF under the conditions of the seller to set up their own boat, select the shipping company freight forwarding, pays the freight, the terminal fee, etc., in the actual business customers will choose a better foreign service company well-known shipping company, the seller and the buyer to confirm good freight, Can also be accepted, but generally can not be shipped by the buyer specified freight forwarding.
3, the seller for insurance business
The seller in the shipping port for insurance, generally in the contract when the specific provisions of the amount of insurance, insurance and insurance coverage and applicable insurance terms, as well as the insurance liability of the deadline, choose the association or China insurance terms, insurance bank orders to endorsement transfer to the buyer The
4, the port of destination costs borne by the buyer
CIF generally used PORT TO PORT that the port to Hong Kong terms, the cost of the port of departure by the seller, and the port of destination to the discharge costs, terminal operating costs by the buyer at their own expense.
Shipment notice and cargo transit, arrival date to pay attention to what?
1, the seller in the port of shipment after the shipment of goods, obtain the bill of lading and the main shipping documents to the bank or by the buyer, insurance insurance to obtain insurance bills to pay sea freight and shipping charges after the completion of all delivery obligations.
2, the seller after shipment to the buyer has been fully shipped notice.
3, the seller does not guarantee the arrival of the goods must be sure and to ensure that when the responsibility to reach the port of destination.
4, the seller has no goods after shipment damage, moisture, loss and other responsibility.
5, if the seller to submit the documents, the goods have been damaged or lost, the buyer still need to pay a single payment, the buyer can by bill of lading to the shipping company / ship, with insurance policy, to the insurance company to claim damages and can not claim to the seller.
6, the actual business of the buyer to the goods in the transit port, not on time transit, out of the box, the goods on the way twice or three times the delay in transit date of the arrival of its clothing / finished product claims loss of working costs, air freight is unreasonable , How to avoid the conclusion of the contract when the seller does not specify the seller to ensure that when the goods arrived at the port of destination and can not guarantee the date of transit obligations.
When doing CIF, be sure to clear the obligations and duties of the contract in the contract, the risk and the cost of a clear division.
Wonderful guide:
CIF full name COST, INSURANCE, AND FREIGHT, that is, the cost plus insurance plus freight. (Designated port of destination) means that the seller completes the delivery when the goods cross the ship's side at the port of shipment (in the case of a ship). Goods from the port of shipment to the port of destination freight premiums paid by the seller, but the goods shipped after the damage and loss of risk borne by the buyer.
Where are the boundaries of dividing risk and expense?
The division of the risk of goods at the port of loading container, that is, the goods into the cabin to complete the delivery of the seller, the risk transferred to the hands of buyers.
The cost of the goods shipped in the port of destination, that is, from the goods shipped to the arrival of goods between any costs borne by the domestic seller.
What responsibilities and obligations does the seller need to perform under the CIF clause?
A, within the time limit stipulated in the contract, at the port of shipment will be in accordance with the contract to the goods shipped to the designated port of the ship, and give the buyer shipping notice.
B, responsible for the export of goods procedures, obtain an export license or other approval certificate (origin, commodity inspection certificate, etc.)
C, responsible for chartering or booking and payment to the port of destination sea freight.
D, responsible for handling the goods transport insurance, pay insurance premiums.
E, responsible for the goods in the port of shipment across the ship so far all the costs and risks.
F, responsible for the provision of commercial invoices, insurance policies and goods have been shipped bill of lading.
What responsibilities and obligations do the buyer need to perform?
A, according to the contract to pay the price.
B, responsible for the import procedures to obtain import licenses or other approval.
C, the risk of cargo at the port of shipment after crossing the ship's post.
D, the seller to receive the goods in accordance with the provisions of the contract, to accept documents consistent with the contract.
What are the precautions in the actual operation of the CIF clause?
1, confuse CIF and FOB
Because both the delivery point and the risk point are in the port of shipment on the ship, so prone to confusion. The seller at the port of shipment to the goods safely installed on board the ship to complete the seller's obligations, after shipment of goods may occur risk, the seller no longer bear the responsibility. The seller will insurance bills, bills of lading, etc. by the buyer, the risk claims by the buyer to handle.
2, generally do not accept the buyer specified freight forwarding
CIF under the conditions of the seller to set up their own boat, select the shipping company freight forwarding, pays the freight, the terminal fee, etc., in the actual business customers will choose a better foreign service company well-known shipping company, the seller and the buyer to confirm good freight, Can also be accepted, but generally can not be shipped by the buyer specified freight forwarding.
3, the seller for insurance business
The seller in the shipping port for insurance, generally in the contract when the specific provisions of the amount of insurance, insurance and insurance coverage and applicable insurance terms, as well as the insurance liability of the deadline, choose the association or China insurance terms, insurance bank orders to endorsement transfer to the buyer The
4, the port of destination costs borne by the buyer
CIF generally used PORT TO PORT that the port to Hong Kong terms, the cost of the port of departure by the seller, and the port of destination to the discharge costs, terminal operating costs by the buyer at their own expense.
Shipment notice and cargo transit, arrival date to pay attention to what?
1, the seller in the port of shipment after the shipment of goods, obtain the bill of lading and the main shipping documents to the bank or by the buyer, insurance insurance to obtain insurance bills to pay sea freight and shipping charges after the completion of all delivery obligations.
2, the seller after shipment to the buyer has been fully shipped notice.
3, the seller does not guarantee the arrival of the goods must be sure and to ensure that when the responsibility to reach the port of destination.
4, the seller has no goods after shipment damage, moisture, loss and other responsibility.
5, if the seller to submit the documents, the goods have been damaged or lost, the buyer still need to pay a single payment, the buyer can by bill of lading to the shipping company / ship, with insurance policy, to the insurance company to claim damages and can not claim to the seller.
6, the actual business of the buyer to the goods in the transit port, not on time transit, out of the box, the goods on the way twice or three times the delay in transit date of the arrival of its clothing / finished product claims loss of working costs, air freight is unreasonable , How to avoid the conclusion of the contract when the seller does not specify the seller to ensure that when the goods arrived at the port of destination and can not guarantee the date of transit obligations.
When doing CIF, be sure to clear the obligations and duties of the contract in the contract, the risk and the cost of a clear division.
Wonderful guide: