1.What are the obligations of the seller under the following terms:FAS,FOB and CIF?FAS means that the seller fulfils his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment.FOB means that the seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment.CIF means that the seller has the same obligations as under CFR but with the addition that that he has to procedure marine insurance against the buyer's risk of loss or damage to the goods during the carriage.The seller contract for insurance and pays the insurance premium.2.Advantages and disadvantages of ocean transport:Advantages:The first advantage is the easy passage since about 70﹪of the earth is covered by water.Secondly,ocean transport has a large capacity.Thirdly,because of such large capacity,the unit distribution cost is reduced.Finally,ocean transport has good capacity to cargoes of different size,weight,shape,etc.Disadvantages:The first disadvantage is the slow passage of ocean transport.In addition,ocean transport is vulnerable to bad weather and less punctual.3.General procedures of ocean transport by liners:1）Find out freight rate.2）Select a shipping line and a particular vessel for reliable service and reasonable cost.3）Book shipping space.4）Register cargo on a shipping note,which describes the details of cargo,and send the shipping note to the shipping line.5）Register details on the customs forms.6）Arrange adequate packing,including shipping marks.7）Receive calling forward notice from shipping line.8）Send cargo to the port of shipment with consignment note,which has the details of the shipment.9）Pay freight bill.10）Receive from the shipping line a bill of lading.11）Send B/L via shipping line or directly to consignee or to a bank actting as intermediary.4.Work before and after offers1)Carry on promotional communication to make the business and commodities known to proential customers so that there will be actual sales.2)Receive inquires to get potential customers and acknowledge inquires without delay to show your efficiency and sincerity.3)Check on inquirer's credit standing,his country's political/economic situation,and import/exchange barriers to decide if a transaction should be pursued on the basis of the findings.4)Work out an offer in which price is by far the most important item.5)Send the offer which should be carefully typed and nicely presented as it presents the image of the exporter.6)Follow up with the offer to show that you are serious about the transaction by contacting the inquirer again .7)Receive order.After you have received an order,check the customer's credit standing again if necessary.5.General procedures of using documentary collection:1）The seller ships the merchandise and obtains B/L from the shipping line,then draws a draft on the buyer demanding payment for the documents.2）The seller forwards the draft and documents to his bank,along with a collection order containing the terms and conditions for the release of documents to the buyer.3）The remitting bank completes its own collection order addressed to the buyer's bank.This collection order will contain the same instructions as the seller's collection order.The remitting bank's collection order is then sent to the buyer's bank,along with other documents.4）When the draft is paid,the collecting bank sends the funds to the remitting bank for credit to the principal's account.6.Factors that influence insurance underwriter to consider:1）The first factor is the nature of packing used.2）The second is the type and the value of the merchandise to be insured.3）Thirdly,the nature of transit and the related warehouse accommodation will be considered.4）Then,the past experience of the insurance company is also important in fixing premium rate. 5）All Risks will definitely cost more than WA and FRA.6）Lastly,the volume of cargo also influences the premium.7.Two types of risks covered by ocean marine insurance:1）The first type is the perils of the sea that include both natural calamities and fortuitous accidents.Natural calamities refer to earthquake,heavy weather such as hurricane.Fortuitous accidents include fire,smoking,stranding,etc.2）The second type of risks covered is extraneous risks.These risks include ordinary risks such as theft,pilferage,shortage,etc and special risks such as strike,war,failure to deliver,etc.8.Import procedures:1）Import license.In order to import,an importer must obtain an import license from the government.2）Sales contract.It will determine the rights and obligations of both the importer and the exporter.3）L/C.①The importer should open the L/C in time in favor of the exporter who would usually arrange production or shipment after receiving this important document. ②The exporter should check L/C terms after receiving it.4）Shipment and insurance.The importer should should arrange the insurance and ask the exporter to advise the shipment in time.5）Document examination and payment.The importer should examine the documents presented by the exporter to confirm if they meet the requirement of the sales contract and payment should be made if no problems exsit.6）Customs clearance.The imported goods must be cleared through the custom.7）Taking delivery and reinspection.The importer can now take delivery of the goods from the carrier.8）Settlement of disputes.The disputes should be submitted to arbitration.9.Export procedures1)Export license.Exporters must obtain export licenses from the government if necessary.2)Sales contract.It determines the rights and obligations of both the importer and the exporter.3)Getting goods ready for shipment.The goods to be exported must be ready for shipment in time。
