1. Scope of …Originally,a freight forward was a commission agent performing on behalf of the export/import route tasks such as loading/unloading of goods,storage of goods,arranging local transport,obtaining payment for his customer,etc..However,the expansion of international trade and the development of different modes of transport over the years that followed enlarged the scope of his services.Today,a freight forwarder plays an import role in international trade and transport.The services that a freight forwarder renders may often range from routine and basic tasks such as the booking of space or customs clearance to a comprehensive package of servicies covering the total transportation and distribution process.(Export) Unless the consignor,the person sending goods,or the consignee,the person receiving goods,wants to attend to any of the procedural（程序上的）and documentary formalities(正式的) himself,it is usually the freight forwarder who undertakes on his behalf to process the movement of goods through the various stages involved.The freight forwarder may provide these services directly or through sub-contractors（转包商）or otheragencies employed by him.He is also expected to utilize,in his connection,the services of his overseas agents.Briefly,these services are：Study the provisions of the letter of credit and all Government regulations applicable to the shipment of goods in the country of export,the country of import,as well as any transit country,he would also prepare all the necessary documents.Pack the goods,taking into account the route,the mode of transport,the nature of the goods and applicable regulations,if any , in the country of export,transit contries and country of destination.Arrange warehousing of the goods,if necessaryWeigh and measure the goodsDraw the consignorˊs attention to the need for insurance and arrange for the insurance of goods,if required by the consignorTransport the goods to the port,arrange for customs clearance,related documentation formalities and deliver the goods to the carrier.Attend to foreigh exchange transactions,if anyPay fees and other charges including freightObtain the signed bills of lading from the carrier and arrange delivery to the consignor Arrange for transshipment en route of necessaryMonitor the movement of goods all the way to the consignee through contacts with the carrier and the forwarderˊs agents abroad.Note damages or losses,if any,to the goodsAssist the consignor in pursuing claims,of any,against the carrier for loss of the goods or for damage to themOn behalf of the consigeeMonitor the movement of good on behalf of the consignee when the consignee controls freight,that is,the cargoReceive and check all relevant documents relating to the movement of the goodsTake delivery of the goods from the carrier and if necessary ,pay the freight costArrange customs clearance and pay duties fees and charges to the customs and other public authoritiesArrange transit warehousing,if necessaryDeliver the cleared goods to the consigneeAssist the consignee,if necessary,in pursuing claims,if any against the carrier for the loss of the goods or any damage to themAssist the consignee ,if necessary,In warehousing and distribution2. Incoterms 2000---major trade termsInternational rules for interpretation of trade termsICC:International Chamber Of CommerceLater amendments and additions were made to it to bring the rules in line with current international trade practices（贸易惯例）,Eeach term specifies whether the buyer or the seller is responsible for arranging such necessary as export license,customs clearance,inspections,and other obligations.They specify at which point the risk of loss and /or damage passes from seller to buyer as well as which party pays for specific activities .A buyer and a seller who conduct their purchase and sale under one of the Incoterms,therefore,will have a mutual understanding of their rights,cost,and obligations1. FOB---Free on board―Free on board‖ means that the seller delivers when the goods pass the shipˊs rail at the named port of shipment .This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point.The FOB term requires the seller to clear the goods for export .This term can be used for sea or inland waterway transport.2. CFR---Cost and freight―Cost and freight‖ means that the seller delivers when the goods pass the shipˊs rail in the port of shipment.The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods,as well as any additional costs due to events occurring after the time of delivery,are transferred from the seller to the buyer. The CFR term requires the seller to clear the goods for export.This term can be used only for sea and inland waterway transport..3. CIF---Cost,Insurance and freight―Cost Insurance and freight‖ means that the seller delivers when the goods psss the shipsˊs rail in the port of shipment.The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risks of loss of or damage to the goods,as well as any additional costs due to events occurring after the tine of delivery ,are transferred from the seller to the buyer.However ,In CIFthe seller also has to procuer insurance against the buyerˊs risk of loss of or damage to the goods during the carriage.Consequently,the seller contracts for insurance and pays the insurancepremium.The CIF term requires the seller to clear the goods for export.3. Terms of shipment in the Contracts for the International Sale of goods When buyer and seller discuss the terms of the contract, terms of shipment are compulsory.Terms of shipment inculde methods of trasport , time of shipment,partial shipment and transshipment,port or place of loading and unloading ,shipping documents,etc,Here only time of shipment will be discussed.Time of shipment refers to the time limit for loading the goods on board the vessel at port of shipment ( If shipment is made by sea ).There are several ways of stipulating time of shipment :●Shipment on or about June 20,2002●Shipment not later than July 31st 2002.or latest shipment date:July 31st,2002●Shipment to be made during June/July ,2002●Shipment with 15 days after receipt of remittance.●Shipment with 30 days after receipt of L/C .In order to prevent the buyer from openingthe L/C later ,the export should stipulate at the same time ―The relevant L/C must reach the seller not later than August 20,2002.‖●According to UCP 500, if the experssion ―on or about‖or similar experssions areused,banks will interpert them as a stiulation that shipment is to be made during the period ,from five days before to five days after the specified date,both end days included.For example , if the L/C stipulates that shipment date is ―on or about July 20 ,2002‖. Then the goods can be shipper from July 15 to July 25.The word‖to‖, ―until‖, ―till‖,‖from‖and words of similar expressions applying to any date or period in the credit referring to shipment will be understood to include the date mentioned.The word ―after‖ will be understood to exclude the date mentioned.The terms‖first half‖, ―second half ― of a month shall be construed respectively as the 1st to the 15th , and the 16th to the last day of such month, all dates inclusive.The terms ―beginning‖ ,‖middle‖,or ―end‖ of a month shall be construed respectively as the 1st to the 10th , the 11th to the 20th ,and the 21st to the last day of such month ,all dates inclusive.When the traders discuss the time of shipment in the contract.1. The export should consider whether he can get the goods ready before the shipmentdate and whether the ship is available if the goods are ready.2. The time of shipment should be stipulated in a clear and flexible way.Stipulation like ―shipment on July 20‖ is clear,but not flexible, if the seller can not get the goods ready befort that, he will break the contract.Expressions such as ―prompt‖, ―innediately‖, ―as soon as possible‖, and the like should not be used .If they are used bankes will disregard them ,If these terms are used,disputes may occur because there is no uniform explanation of these terms.3. Sometimes ,the L/C simply stipulates an expiry date without a shipment date ,which means these two dates are the same ,For example, if the L/C stipulates that the expiry date is July 31st without a shipment date, then the latest shipment date is also july 31st .In this case,the exporter should ship the goods much earlier than july 31st so that he can leave enough time fou himself to get all the documents ready and present the documents to his bank within the validity of the L/C .If the exporter ships the goods on july 31,it is very difficult for him to present the documents to the bank on the same day.3. The Expiry Datea. If the expiry date of the credit and/or the last day of the period of time forpresentation of documents stipulated by the credit falls on a day on which the band to which presentation has to be made is closed,the stipulated expiry date and/or the last day of the period of tine after the date of shipment for presenation of documents, as the case may be ,shall be extended to the first following day on which such bank is open.b. The lastest date for shipment shall not be extended by reason of the extension ofthe expiry date and /or the period of time after the date of shipment for presentation of documents. If no such lastest date for shipment is stipulated in the credit or amendments,banks will not accept transport documents indicating a date of shipment later than the expiry date stipulated in the credit or amendments.4. Marine Cargo Insurance1. Principles of marine cargo insuranceThe marine cargo insurance is based on the principles of insurable interest ,utmost good faith ,and indemnity .No contract of marine insurance is valid unless the assured has an insurable interest in the subject matter insured at the time of loss. Cargo insurance is a contract of indemnity ,that is, to compensate for the loss or damage in terms of the value of the insured goods , The amount insured as agreed between the insurer and the assured forms the basic of indemnity .The principle of utmost good faith is indispensable in any insurance contract .A contract of marine insurance is a contract based upon the utmost good faith ,and ,if the utmost good faith be not observed by either party, the contract may be avoided by the other party .2. Insurance PremiumThe premium is the consideration which the insurers receive from the assured inexchange for their undertaking to pay the sum insured in the event insured against .The general guiding rate of the insurance premium is 1% of the amount insured .The premium rates may vary ,for example , from 0.5% to 2.5% or less depending on factors such as :type of goods ,the contry and distance of destination ,value of the goods ,mode of transportation, the type of risks covered ,container or bulk shipment and type of packing . The minimum amount insured should be the CIF or the CIP value of the goods plus 10%.3. Insurance PolicyInsurance policy is an evidence of insurance contract issued by the insurer or underwrite to the assured .It stipulates each party ˊs rights and responsibilities .The format of insurance policy forms varies from insurer to insurer. Insurance policy or certificate ,and endorsement are the main ones used in daily business. The policy must be issued and signed by an insurance company or its agent . If more than one original is issued and is so indicated in the policy , all the originals must be presented to the bank, unless otherwise anthorized in the letter of credit .4. Types of basic coverageThe basic coverage in PICC Ocean Marine Cargo Clauses is FPA , WA/WPA and All Risks Coverage .（1）Free From Particular AverageThe risks coverd in FPA coverage basically means that only total or constructive total loss of the whole consignment of cargo but no partial loss or damage is recoverable from the insurer resulting from natural calamities , such as heavy weather , lightning , tsunami ,earthquake and flood .Total loss or partial loss is recoverable from the insurer incurred as a result of specific casualties ,e ,g.,collision ,standing siking of the vessel .It also covers general average and salvaing the goods or averting or minimizing a loss recoverable under the policy .（2）With Particular Average (WA / WPA)WA / WPA provides larger cover than FPA since partial loss and damage is recoverable from the insurer resulting from natural calamities ,That is the only difference between WA / WPA and FPA in PICC Ocean Marine Cargo Clauses . （3）All RisksThis type of coverage is the most widely used in the transport of general cargo because it provides better coverage the WA / WPA type .Aside from the risks covered under WA / WPA type , it also provides insurance against all risks of less of or damage to the cargo insured arising from external causes in the course of transit . The All Risks does not cover risks of war , strike and other special additional risks such as failure to delivery , import duty , on deck , rejection ,aflatoxin etc .The general additional risks such as theft , pilferage & non—delivery risks , fresh water and /or rain damage risks shortage risks , intermixture and contamination risks , leakage risks ,clask and breakage risks , taint of odour risks , sweat and heating risks , hook damage risks , breakage ofpacking risks and rust risks are covered in All Risks coverage .5. The Practice Of International Ocean Cargo Transportation1. Transport GeographyAn internationanl freight forwarder should be familiar with international trade routes . He or she should have knowledge of main traffic routes location of ports ,trans—shipment points and inland centres . A freight forwarder shoule also have a general idea of the pattern of international trade and its changing trends .2.1) Conference linesA shipping conference is a group of shiping lines operating in any particular routeunder agreement to provide a scheduled service with a common tariff and a fixed itinerary of ports of call .The purpose of a shipping conference is to eliminate price competition among member lines and reduce outside competition by trying to capture most of the traffic for member lines through loyalty arrangements with shippers .The main advantages of the conference system to shippers are stability of freight rates and regularity of srevices . However , the disadvantages are obvious . Rates are usually high . Rates do not fluctuate accoding to supply and demand as in a tramp service Rules and procedures are inflexible .2) None—conference linesIn recent years , along most international routes , none—conference lines have posed a challenge to the conference system . This is attributable to the development of containerization and emergence of many independent carriers .As a result ,along some routes ,the conference lines have been forced to come to terms with the non—conference lines in regard to rates , and terms and condition of service .3) Non—vessel operating common carrier (NVOCC)An NVOCC is a carrier when operates a regular scheduled service . He does not own or operate the vessels by which sea transportation is provided . Although the NVOCC is a carrier in his relationship with the actual carrier . He is a shipper in his relationship with the actual shipper . He assumes the role of a principal and performs several functions . He assumes responsibility for ocean carriers , both conference and non—conference lines .He renders a useful service by providing grouppage or consolidation services , particularly to small shipper who do not have much bargaining power in nagotiating rates .4) Tramp serviceTramp service has on fixed itinerary or schedule and is operated on any route according to supply and demand Tramp vesseles are usually chartered at negotiated rates , particularly when the quantity of cargo is large .2. Shipping documentsThe documents commonly used in carriage of goods by sea are bills of lading , sea waybills, manifests , shipping notes , delivery orders and mat e′s receipt .The bill of lading by itself is not a contract of carriage as it is signed only by the carrier . Howerever , it provides evidence of contract of carriage . It serves as a receipt for goods delivered to the carrier . Besides , the bill of lading serves as a document of title enabling the goods to be transferred from the shipper to the consignee or any other party by endorsment .A sea waybill is the replacement of the traditional ocean bill of lading . The way billis a non—negotiable document and made out to a named consignee who is allowed , upon production of proper identification , to claim the goods without presenting the waybill .A cargo manifest provides information regarding cargo on board . A freightmanifest gives information regarding freight rates , surcharge ,rebates , etc . The manifest is prepared by the carrie r′s agent , but freight forwarder has to handle it while dealing with the customs and port authorities .A shipping note is issued by the shipper to the carrier requesting allocation ofshipping space . It is a commitment on the part of the shipper to ship the goods and serves as the basis for the preparation of the bill of lading .A delivery order is issued by the carrier or his agent to enable the consignee or hisforwarding agent to take delivery of the cargo (import cargo) from the vessel .A mat e′s receipt is the receipt issued by the carrier in the acknowledgement to thegoods received on board (export cargo)which is subsequently exchanged for the bill of lading .6. Documentary CreditIn international sales transactions different methods of payment are adopted depending mainly upon the relationship between the seller and the buyer . For example , if the seller and buyer know each other and have a long—standing business relationship , they may transact business on trust and the seller may periodically send invoices to the buyer for settlement . Payment may also be made by other methods such as ―cash with order‖ when the buyer sends a cheque or a bank draft with his order , or by ―documentary collection‖ , when the seller sends the buyer in the buye r′s country on the buyers′acceptance or payments , as may be specified in the documents .But in many cases , the seller and the buyer do not know each other and located in countries thousands of miles apart . They are not in a position to conduct their commercial transactions on trust . The seller is reluctant to part with his goods unless he is assured of possession of the goods . In order to reconcile the conflicting interests of both the parties and to provide a mechanism for payment in such situations , the International Chamber of Commerce has evolved what is knowm as ―Documentary Credit‖ . In simple terms , documentary credit means payment against documents instead of against goods . The documents transfer title to the goods .The ―Uniform Customs and Practive for Documentary Credit‖(UCP) Published by the International Chamber of Commerce contains detailed provisions dealing with the operation of documentary credit . It has been accepted and adopted by banks and banking associations throughout the world . It has brought the UCP into line with established and foreseeable practices regarding containerized transport and trade facilitation, the use of electronic data processing and the development of new types of credit like deferred payments and stand—by credits .As the documentary credit is operated through banks , therefore , it has certain advantages to both the seller and buyer : for the seller , it is a bank undertaking to which he can look for payment ; for the buyer , it is a conditional undertaking where payment can be made on his behalf only against the documents which will transfer to him the title to the goods .For practical purpose , assume that a local buyer agrees to buy goods from an overseas seller and under the sales contract , payment is to be made by banker′s letter of credit . To fulfill the contract , the buyer arranges with his bank to open a letter of cerdit for his account in favour of the overseas seller . The buyer is not required to pay for the goods until the arrival of the relevant shipping document . The seller , on receipt of a letter of credit , will have to prepare shipment of the contract goods within the delivery date . Once shipment of the goods is completed , the seller will be able to present all the documents to the negotiating bank for payment under the terms of the credit . The negotiating bank should ensure that the seller′s documents are drawn up in accordance with the credit terms before such documents are paid for and forwarded to the issuing the negotiated documents it will make up a debit note showing the total cost due and request payment from the buyer . Once the buyer accepts that the documents are in compliance with the terms of the letter of credit he must settle the bill in order to obtain the shipping documents so that he will be able to take delivery of the goods from the carrier or its agent . On settlement of the bill , the whole operation of documentary credit will be regarded as completed .8. Marine Bill of Lading---General Introduction1. General Concept of Marine Bills of LadingMarine Bills of lading are used primarily international sales of goods where the carriage of goods is by sea . Definitions of the bill of lading vary from country to country . Broadly , the bill of lading has been defined as receipt for goods shipped of board a ships , signed by the person ( or his agent ) contracts to carry them , and stating the terms on which the goods were delivered to and received by the ship . It is not the actual contract , but forms excellent evidence of the terms of the contract .2. Functions of Marine Bills of LadingMarine bills of lading perform a number of functions . Generally , it is receipt for thegoods shipped , a document of title to the goods and evidence of the terms of the contract of affreightment .A bill of lading is a receipt issued , by a carrier that an identifiable consignment ofgoods has been received by him for shipment , or actually loaded on board his ship .The bill of lading as a receipt willl show the quantity and condition of the cargo loaded ,ship′s name , port of loading , the destination , details of date and so on .A bill of lading is a document of title to the goods . The possession of a bill of lading isequivalent in law to possesion of the goods . The holder of the bill of lading is able to obtain delivery of the goods at the port of destination and during transit the goods can be sold merely by endorsing the bill of lading .Additionally , the terms of the bill of lading provide evidence of the contract of carriage between the carrier and the shipper . The terms of the bill of lading contain the terms of the contract .3. Types of Marine Bills of LadingThere are several forms of bills of lading and these include the following :1) Order of ladingOrder bills are issued by carriers to the order of shipper or conginee . This means that the carrier , shippower , charterer or master will deliver the goods at the port of destination not solely to the named consignee , but so any person designated by him .An order bill of lading is a negotiable document . Order bills made out to consignee ―or order ― can be transferred by them by endorsment .2) Straight Bills of LadingIn contract with the order bills of lading , straight bills are those made out to named consigness without the addition of the word ―or order ― . They are not negotiable and cannot be transferred to third parties . Delivery of goods , thereore , can only be taken by the named consignee .3) Shipped Bills of LadingShipped bills state definitely that the goods have been loaded . It confirms that goods are actually on board the vessel . Most bills of lading forms are printed as shipped bills and commence with the wording :‖shipped in apparent good order and condition .‖4) Received for Shipment Bills of LadingReceived for shipment bills state that the goods have been received for shipment , and do not indicate the actual date of loading . The received for shipment bill of lading grew up because with the development of the liner services it became the custom for the shipowner to receive the cargo some hours or even days before it was actually loaded .5) Direct Bills of LadingDirect bills of lading are those covering shipment between direct ports of lading or discharge .6) Through Bills of LadingThrough bills of Lading cover shipment from or to ports involving transport by two or more shipping or railways companies . The shipping company , for additional freight ,undertakes to make all arrangement to get the goods to their destination .7) Clean Versus Foul Bills of LadingThe clean bill of lading bears an indication that the goods were received without damages , irregularities or short shipment ,usually the words ―apparent good order and condition ―. ―clean on board ― or the like are indicated on the B/LThe foul bill of lading—unclean bill of lading , dirty bill of lading or claused bill of lading –is the opposite of the chean bill of lading . It bears an indication that the goods were received with damages , irregularities or short shipment , usually the words ― unclean on board ―or the like are indicated on the B/L , for example , ― insufficient padking ―,‖missing safety seal ― and ―one carton short ―.9.Marine Bills of Lading ( 2 )--Making and signing ofA marine bill of lading can be drawn up in a variey of ways , but it is nearly always prepared on a pre—printed form .whatever its form , a bill of lading may contain some main elements ,such as quantity of cargo ,accurate cargo description and condition ,date of the bill of lading ,names of shipper and consignee , ports of lading and discharging , ship′s name,terms and conditions of carriage and payment of freight.The shipp′s port agent , in fact , may be given the task of drawing up bills of lading .If there are subsequently required for letter of credit transactions , it is useful that the agent be supplied with appropriate details of that letter of credit so that all relevant material can be included in the wording .The main parties on a bill of lading are shipper,Conssignee. Notify Party and Carrier . The shipper is the person , usually the exporter , who sends the goods .Consignee refers to the person entitled to take delivery of the goods . Carrier is the person or company who has concluded a contract with the shipper for carriage of goods . Notify party is the party that the carrier must notify when the goods arrive at the port of destination . The carrier issues an Arrival Notice informing the Notify Party about the cargo discharge point , number of packages and other information.It is important to the date bills of loding correctly ,and as per the date on which the cargo is actually loaded . Cargo quantity and condition should also be adequately and correctly described in the bills of lading . Relevant comments should be entered in either tally or mate′s receipts , and thereafter in bills of lading .2. Issuing Marine Bills Of LadingAll bills should be signed by either shipping company or by a duly authorised agent .If time does not permit the ship′s master to sign the bills , a letter is usually dra wn up giving the port agent appropriate authority to sign bills of lading . The bill of lading must show how many signed originals were issued .The oringinals are marked as ―original ―on their face and all have equal value , that is , all have the same validity .The purpose of issuing more than one original is to ensure that the port of destination will receive the original when dispatched separately . The original B/ ;L are proof of ownership of goods , one of which must be surrendered to the carrier at destination , duly endorsed by the title holder in the goods in exchange for the goods or。
