III. Explain the followi ng terms1. shipme nt con tractShipme nt con tract is a con tract using an In coterm which in dicates that the delivery happe ns at the time or before the time of shipme nt.2. symbolic deliverySymbolic delivery is a delivery situation in which when the seller delivers the buyer does not physically receive the goods. This kind of delivery is proved by the submissi on of tran sport docume nt by the seller to the buyer.3. arrival con tractArrival con tract means a con tract using an In coterm which in dicates that the delivery happe ns whe n the goods arrive at the desti natio n.4. actual deliveryActual delivery refers to a delivery situation in which when the seller delivers the buyer does physically receive the goods.IV. Short questi ons1. Who pays for loadi ng for shipme nt un der FOB ?The seller.2. Who pays for un loadi ng un der CIF?The buyer.3. Compare and con trast FOB, CFR and CIF?Similarities: a. The seller's risk will be transferred to the buyer when the goods are loaded on board, b. The seller is responsible for export customs formalities while the buyer is responsible for import customs formalities, c. The buyer is resp on sible for uni oadi ng the goods at the port of desti nati on, d. All three terms can only be used for waterway tran sportatio n.Differen ces: a. FOB requires the buyer to arrange and pay for the ocea n tran sportatio n; CFR requires the seller to arrange and pay for the ocean transportation; CIF requires the seller to arrange and pay for the ocean transportati on and in sura nce aga inst the buyer's risk.4. What are the two types of trade terms concerning the tran sfer of risks?Shipme nt con tract terms vs. arrival con tract terms. Un der shipme nt con tract terms the seller's risk will be tran sferred to the buyer before the goods depart from the place/port of shipme nt. Un der arrival con tract terms the seller will bear the risk of the goods un til the goods arrive at the desti nati on.5. What are the differe nces and similarities betwee n CPT and CFR?Major similarities: a. The seller should con tract and pay for the major carriage. b. The seller is not tak ing the risk of loss of or damage to the goods during the transportation.Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for waterway tran sport,b. Un der CPT the seller's risk will be tran sferred to the buyer whe n the goods are han ded over to the first carriernominated by the seller. Under CFR the seller's risk will be transferred when the goods are loaded on board the vessel.6. What are the differences and similarities between CIP and CIF?Major similarities: a. The seller should con tract and pay for the major carriage. b. The seller is not tak ing the risk of loss of or damage to the goods duri ng the tran sportati on, c. The seller must obta in in sura nce aga inst the buyer's risk.Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for seaway or inland waterway transport, b. Under CPT the seller's risk will be transferred to the buyer when the goods are handed overto the first carrier nominated by the seller. Under CFR the seller's risk will be transferred when the goods areloaded on board the vessel.7. If you trade with an American, is the sales contract subject to Incoterms without any doubt? What should you do?No. The Revised American Foreign Trade Definitions 1941 is still in use, especially in the North American area. It has different interpretation about some trade terms. The traders should clarify the choice of rules before any further discussion.8. What are the most commonly used trade terms?FOB, CFR & CIF.9. Who is responsible for carrying out customs formalities for exports under an FOB contract?The seller. According to Incoterms 2010, except EXW and DDP these two terms, all the other eleven terms require the seller to handle the export customs formalities, while the buyer the import customs formalities.10. If a Chinese trader signs an FOB Hamburg contract, is he exporting or importing? Importing. FOB should beused with a "named port of shipment", if Hamburg is the port of shipment, from the Chinese trader's perspective, he is importing.V. Case studies1. An FOB contract stipulated "The shipment will be effected in March 2011." When the goods were ready on 10March 201 l, the seller contacted the buyer for shipment details. The buyer faxed "Please send the goods to the port for loading on 21 March. The vessel will depart on 22 March." The seller sent the goods to the port accordingly.However the nominated vessel did not turn up and the goods had to be stored in the warehouse at the port. On the night of 21 March a fire happened in the warehouse area and part of the goods was damaged. When the vessel arrived two days later the seller and the buyer had an argument about the settlement of the loss. The sellerrequired the buyer to bear the loss caused by the fire, but the buyer believed that the vessel arrived within theshipment period and the loss occurred before the seller delivered the goods therefore the seller should bear the loss. Please provide your solution.析：1）首先案例中提到货物发生了损失是由于货物存放在码头仓库期间发生火灾造成的。
