International Contracts for Import of Fertilisers - The Fertiliser ...

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2/3/2012 Difficulties in Contracting • Standardization of the terms becoming difficult • Suppliers have their own standard terms • With movement of cargo increasing, shipping terms have become highly cost sensitive Difficulties in Contracting (Contd..) • Minute details deserve major attention • Despatch/Demurrage rates becoming highly important • Pre-berthing delays are common now (delays before vessels are berthed) • Knowledge of shipping terms a must USUAL TERMS OF FERTILIZER CONTRACTS • Buyer and Seller • Commodity • Detailed specifications • Quantity (Tolerance) • Price (based on INCO terms) • Shipment Schedule • Packing wherever required • Delivery Terms • Shipping Terms • Payment Terms • Documents • Arbitration • Force Majeure • General Terms INCO Terms • Developed, maintained and promoted by ICC (International Chamber of Commerce) • To make international trade easier • First introduced in 1936 by ICC • Latest edition in 2010 • 11 Inco Terms in all 4
2/3/2012 INCO Terms (contd) INCO Terms usually used • The 13 Terms – EXW (Ex-works) – FAC (Free Carrier) – FAS (Free Along Side) – FOB (Free On Board) – CFR (Cost and Freight) – CIF (Cost, Insurance and Freight) – CPT (Carriage Paid to) – CIP (Carriage and Insurance Paid to) – DDP (Delivered duty paid) – DAT (Delivered at Terminal) – DAP (Delivered at Place) FOB – Carriage to be arranged by buyer – Risk pass from seller to buyer once goods cross ship’s rail – Costs transfer from seller to buyer once goods cross ship’s rail C&F – Carriage to be arranged by seller – Risk pass from seller to buyer once goods cross ship’s rail – Costs transfer from seller to buyer at the port of destination buyer paying such costs as are not for the seller’s account under contract of carriage CIF – Carriage to be arranged by seller – Risk pass from seller to buyer once goods cross ship’s rail – Costs transfer from seller to buyer at the port of destination buyer paying such costs as are not for the seller’s account under contract of carriage OTHER INCO Terms • Delivery Ex Ship (DES) : Goods are placed at the disposal of the buyers on board the ship but “not cleared for import at the named port of destination” • Delivered Ex-quay (DEQ) : Seller makes good available to the buyer at the quay (Wharf) at destination nor cleared for imports • Ex Works (EXW) – Goods placed at the disposal of the buyer at the seller’s premises INCO Terms (Contd) • Free Carrier (FCA) – Seller delivers goods, cleared for export, to the carrier nominated by the buyer at named place • Carriage Paid To (CPT) – Seller delivers goods to the carrier to named port of destination • Carriage and Insurance Paid to (CIP) – additional insurance 5
Page 1 and 2: 2/3/2012 IMPORTANCE OF FERTILIZERS
Page 3: 2/3/2012 Key Legal Elements • Off
Page 7 and 8: 2/3/2012 LC (Contd.) • Transferra
Page 9 and 10: 2/3/2012 Shipping (Contd.) Shipping
Page 11 and 12: 2/3/2012 SHIPPING (Contd.) • Voya
Page 13 and 14: 2/3/2012 Marine Insurance (Contd)

International Contracts for Import of Fertilisers - The Fertiliser ...

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