Yiwu Lucky International Forwarding Co., Ltd.

Read FOB, CIF and CFR

Read FOB, CIF and CFR

Release time：

1 day ago

Abstract:

NowtheinternationalgeneraltrademethodsaregenerallydividedintoFOB(FOB),CIF(CIF)andbondedareaprice(CIP).Freeonboard(FOB)meansthatthesellerhasthecontractualrighttodemandpaymentforthegoodsaftertheyhavecrossedtheship'srail.Thatis,inthecaseofFOB,assoonasyourgoodsleavethedock,you'reallright(areyou?Seethecaseattheendofthearticle).OnaCIFbasis,youhavetodeliverthegoodssafelytoadesignatedportbeforeyoucanenjoytheserights.Thesellershallbeartheintermediatecharges. ForgoodsdeclaredonCIFbasis,taxexemptionandtaxcreditshallbecalculatedaccordingtothefollowingformula:taxexemptionandtaxcredit=(transactionvalue-seafreight-insurancepremium-foreignBanksandotherdeductions)×rebaterate ThetermsFOB,CIFandCFRfirstappearedintheWarsaw-OxfordRulesof1932.Theruleshavebeenamendedseveraltimes,andfinallyincoterms1990asthemostgeneralandauthoritativepublication.Inthedomesticthreetermsarenowstandardizedcalledpriceterms.Ondeckdelivery,thesellershallbearthecostsandrisksbeforethegoodscrosstheship'srail,andthenthecostsandrisksshallbetransferredtothebuyer.Ofcourse,ifthegoodsaretobeallowedtocrosstheship'srail,thesellershallberesponsibleforthecompletionofexportclearanceprocedures.Thesellershallberesponsibleforthecostoftransportingthegoodstothedesignatedportofdestination.Theriskshallbethatthegoodscrosstheship'srailattheportofloading.Thepreviousriskshallbelongtothesellerandthesubsequentrisktothebuyer.TheSellershallbearthecostsandrisksduringtheperiodwhenthegoodsareshippedtotheportofdestination,inwhichtheriskscoveredbythesellershallbeaslittleastheminimum. Threetermsincaseofcontainertransportationorroll-onroll-offtransportation,railhasnoactualmeaning,FOBtermscanbechangedtoFCA(freecarrier),CFRtermscanbechangedtoCPT(cost&freightpaidtodestinationpoint),CIFtermscanbechangedtoCIP(costinsurencefreightpaidtodestinationpoint).Theexportclearanceofthethreeclausesshallbebornebytheseller,whiletheimportclearanceshallbebornebythebuyer. Accordingtothecustomarypracticeofinternationalinsurancemarket,theinsuredamountofexportgoodsiscalculatedbyCIFpriceplus10%,andthis10%increaseiscalledinsurancepremiumrateorinsurancepremiumrate,whichisthecostandexpectedprofitthatthebuyerpaysforthistransaction.Theformulathatinsuranceamountcalculatesis:insuranceamount=CIFprice*(1+castaninsurancetoaddrate)takeCIFasthecomputationbaseofinsuranceamount,shownotonlygoodsitself,andincludefreightandinsurancepremiumtobecastasthemarkofinsuranceandcastaninsurance,producealossistoobtaincompensation.Therefore,toinsurethegoodsundertheCFR/FOBcontract,itisnecessarytofirstquotetheCFR/FOBpriceathometocalculatetheinsuranceamount.Thecalculationformulais:convertCFRpricetoCIFprice:CIF=CFR/[1-(1+plusrate)*sumofthepremiumrate],andconvertFOBpricetoCIFprice:CIF=(FOB+F)/[1-(1+plusrate)*sumofthepremiumrate]. I.CommissioncalculationFormula: 1withcommissionprice=netprice+unitcommission Theunitcommission=priceincludingcommission×commissionrate (3)Priceincludingcommission=netprice+(priceincludingcommission×commissionrate)=netprice/(1-commissionrate) Ii.DiscountcalculationFormula: (1)reducedprice=originalprice×(1-discountrate) Theamountofdiscount=originalprice×discountrate Threetradetermsandtheirconversionformulasbetweenthecommissionprices 1.ConvertFOBpricesintootherprices (1)theCFR="+F (2)CFRC=FOB+F/(1-Commissionrate) (3)CIF=FOB+F/(1-premiumrate×insurancepremium)(Insurancepremium=1+insurancepremiumrate) (4)CIFC=FOB+F/(1-insurancerate×insurancepremium-commissionrate) 2.ConvertCFRtootherprices (1)FOB=CFR-f (2)CFRC=CFR/(1-commissionrate) (3)CIF=CFR/(1-premiumrate×insurancepremium) (4)CIFC=CFR/(1-insurancerate×insurancepremium-commissionrate) 3.ConverttheCFRCpriceintootherprices (1)FOB=[CFRC×(1-commissionrate)]-f (2)CFR=CFRC×(1-commissionrate) (3)CIF=[CFRC×(1-commissionrate)]/(1-premiumrate×Insurancepremium) (4)CIFC=[CFRC×(1-commissionrate)]/(1-Insurancerate×Insurancepremium-Commissionrate) ConvertthepricesonCIFbasisintootherprices (1)FOB=CIF×(1-insurancerate×insurancepremium)-f (2)CFR=CIF×(1-insurancerate×insurancepremium) (3)CFRC=[CIF×(1-premiumrate×InsurancePremium)]/(1-Commissionrate) 5.ConvertCIFCpriceintootherprices (1)FOB=CIFC×(1-insurancerate×insurancepremium-commissionrate)-f (2)CFR=CIFC×(1-insurancerate×insurancepremium-commissionrate) (3)CFRC=[CIFC×(1-premiumrate×Insurancepremium-Commissionrate)]/(1-Commissionrate) Iv.PricecalculationFormula: 1.Costaccountingformula (1)Actualpurchasecost=tax-inclusivecost(purchasecost)-amountofexporttaxrebate (2)Amountofexporttaxrebate=tax-inclusivecost×exporttaxrebaterate÷(1+VALUE-ADDEDtaxrate) 2.Freightcalculationformula 1bulkfreight;Basicfreight+surcharge (2)Containerfreight;ThesameasthefreightforLCLandgroceries,theFREIGHTforFCL=boxrate+surcharge 3.Insurancepremiumaccountingformula (1)Insurancepremium=amountofinsurance×premiumrate (2)Amountofinsurance=CIFprice×(1+insurancepremiumrate) Thepremiumrateisusually10%andtheinsuranceamountiscalculatedonthebasisofCIF(CIP)priceorinvoicevalue

RMB short - term substantial appreciation! Should exchange be settled now? Then the exchange rate moves...

Release time：

1 day ago

Abstract:

OnAugust11,theonshoreyuanjumpedmorethan100pointsagainsttheUSdollarandregainedthe6.95mark,whiletheoffshoreyuanbrieflyroseagainsttheUSdollar,risingashighas6.9443by2pm. ThecentralparityrateoftheRENMINBIagainsttheUSdollarhitafive-monthhighof6.9438onAugust6,threetradingdaysafteritroseinarowsinceAugust,risingnearly1,900pointsfromitslowof7.1316onMay29. Infact,thetrendofRMBappreciationwasevidentinJuly.InJuly,theexchangerateoftheyuanagainsttheDOLLARrosefirstandthenfluctuated.InJuly,theyuanrose1.34%from7.07attheendofJunetocloseat6.98againsttheDOLLAR. SincetheendofMay,theonshoreandoffshoreRMBhaveappreciatedinshock. Itisnowbacktothehighsoffivemonthsago Notably,thedollarfell4.4percentagainstthepound,6percentagainsttheeuro,5percentagainsttheEuroand4percentagainsttheSwissfrancandAustraliandollarinJuly,thebiggestdeclinesofthepastdecade. Withthedollaraccountingforabout62percentoftheworld'scentralbankreserves,theworldhashadtoabsorbthefloodofmoneythattheFederalReservehasbeenprintingtosavetheUSeconomysincetheoutbreak. Exchangeratetrendforecastinthesecondhalfoftheyear FortheexchangeratetrendofRMBagainstUSdollarinthesecondhalfoftheyear,thepredictionofvariousinstitutionsisasfollows: LiChao,chiefeconomistofZheshangSecurities,believesthatastheDOLLARindexdeclines,theRMBexchangerateappreciateswithit.However,frictionsbetweenChinaandtheUnitedStatesrise,andtheappreciationrateoftheRMBexchangerateisweakerthanthedeclinerateoftheDOLLARindex.IntoAugust,theRMBexchangeratecontinuestorise,isexpectedtofollow-upisstillvolatile,coreinfluencevariableistheuncertaintyofthefrictionbetweenChinaandAmerica,astheU.S.electionnears,trumpexistthepossibilityoftransferringcontradictionsamongforeignrelationsmayappearintrade,technology,financeandotherfields,andthedisturbanceofRMBexchangerate.Maintaintheexchangeratewithintherangeof6.85-7.2thisyear. DingAnhua,chiefeconomistofChinaMerchantsBank,believesthatfromtheperspectiveofthetrendofexchangerate,Chinaisthefirsttorecover,theinterestrategapbetweenChinaandtheUnitedStatesremainshigh,andtheexpansionofopening-upisexpectedtofurtherattractcapitalintoChina'scapitalmarket.ThecombinationofUSdollarsgraduallyweakens,andtheadvantageofRMBexchangerateisemerging.Inaddition,Chinapracticesamanagedfloatingexchangeratesystem.Afteryearsofpractice,themonetaryauthoritieshavesufficientreservesoftoolstokeeptheRMBexchangeratebasicallystableatanappropriateandbalancedlevel.Therefore,judgingthattheRMBexchangeratewillnotappeardrasticfluctuations,thefuturewillshowastableandrisingtrendpattern. LianPing,chiefeconomistandPresidentofTheResearchinstituteofUeschInvestment,believesthattwoimportantfactorsdeterminethechangeoftheRMBexchangerateinthesecondhalfoftheyear:Chinaisbasicallyorientedwell,whiletheUSeconomyandemploymentrecessionissevere,formingaweakDOLLAR;Atthesametime,theUSmayperiodicallypushupthedollarinthefaceofaweakeconomicrecovery,increasinggeopoliticalfrictionwiththeoutsideworld.Inthiscase,itisexpectedthatthesecondhalfofthedollarindexislikelytofall,RMBwillappreciateslightly,aroundthecentralfluctuationsof6.8-7.2. Thesecurrenciesaregoingdownanddown UndertheexpectationthattheRMBwillrisesteadily,someofChina'sexportmarketsarefacingdevaluationcrisis. TheTurkishliraisthemostdangerousofthefallingcurrencies.Thelirahasfallennearly19percentagainstthedollarsofarthisyear,itsbiggestannualdeclinesince2018,whenitlostmorethanaquarterofitsvalue.Thelirahasfallenbyafifthagainsttheeurothisyear. MosteconomistsbelievethatthecoVID-19hascausedTurkey'stourismindustrytocollapse,leavingahugeholeinthecountry'sfinances.Foreigninvestorshavefled,andoverthepast12months,foreigninvestorshavepulledmoneyoutofthecountry'slocalcurrencybondsandstockmarkets.Facedwiththeseoutflows,Turkeyburnedthroughtensofbillionsofdollarsinforeignexchangereservesthisyeartomaintainanunofficialpeg,markingtheendoftwodecadesoffree-floatingexchangerates.Thelirahasfallentorecordlowsagainstthedollardespitebillionsofdollarsspenttryingtodefendit. Now,itseems,Turkeydoesnothaveenoughreservestosellto"control"thelira.Afterfallingtoarecordlowlastweek,theliracontinuedtobottomonMonday,plunging1.7percentto7.408againstthedollar. TheIndianrupeehasbeenoneofAsia'sworstperformersthisyear.Therupeefellbynearly6%in2020.India'seconomyhascontractedannuallyforthefirsttimeinmorethan40years,hitbythecoVID-19pandemic,whichwillweighonfurtherweaknessintherupee.Therupeenowtradesat74.85tothedollar,havinghitarecordlowof76.9088inApril. ThePakistanirupeehasdonenoworsethanitsIndiancounterpartthisyear,falling8.68%since2020.OnAugust11ththePakistanirupeefelltoarecordlowof168.87againstthedollar.Fitch,aratingsagency,predictstherupeewillremainonadownwardtrendinthemediumtolongtermduetorisingexternaldebtandexpectedinflationarypressures.Butothersarguethattherupee'sdeclineisunsustainable,giventherecentriseinremittancesandforeigninvestment,thesteadyincreaseinforeignexchangereservesoverthepasttwoweeksandtheapparentimprovementinthecurr

27/5000 B/L lost was awarded compensation of 3.16 million, how to lose: how to solve and deal with?

Release time：

1 day ago

Abstract:

Abillofladingisadocumentcertifyingthatthecontractofcarriageofgoodsbyseaandthatthegoodshavebeenreceivedorloadedbythecarrier,andthatthecarrierwarrantsthatthegoodsaredeliveredthereagainst.Onlybybillofladingcangoodsbeextracted,soininternationaltrade,especiallyundertheFOB,CFRconditions,billofladingisofgreatsignificance,isconsideredastherepresentativeandsymbolofgoods. However,onebillofladingcanonlybeissuedforonesetofgoods,andthebillofladingisalsotransferabledocument,sooncethebillofladingislost,itwillhaveagreatimpactonthedevelopmentofforeigntradebusiness,whichmayleadtotheseller'sinabilitytosettleforeignexchangeandthebuyer'sinabilitytopickupthegoods.WiththecontinuousgrowthofChina'simportandexporttrade,thiskindoflosshasbeenoccurringfrequentlyinforeigntradecompaniesrecently. Sohowtodealwiththelossofb/L? Generally,thebillofladingislostinthefollowingcases: 1.Lostunderthecontroloftheexporter. 2.Theexporterlosesthedocumentstotheissuingbankaftersendingthemtothebank. 3.TheissuingbanklosesthedocumentsafterhandingthemovertotheCouriercompany. 4.LostafterdeliverytonegotiatingbankbyCouriercompany. 5.Thenegotiatingbanklosesitafterdeliverytotheconsignee. Inthecaseofarticles1and5,theexporterandimportershallbeliablerespectively; Incases2and4,theissuingornegotiatingbankshallbeheldresponsible; Theproblemisthatlossesoftenoccurinathirdcategory,andpostalauthoritieshaveonlyaverylimitedliabilityundercurrentpostalregulations. Accordingtoincoterms2000,thesellermustpresenttheshippingdocumentstothebuyeronCIF,CFRandFOBtermswithoutdelayandatitsownexpense.Itfollowsfromthisthattheriskofdocumentlossshouldgenerallybebornebytheseller. Tosecuretheirrights,thecarrierrequirestheconsigneetoguaranteethedeliveryofthegoodsintheabsenceoftheoriginalbillofladingandthebanktoprovidetheguarantee. Billofladingindifferentcircumstancesoftheloss,theresponsibilityforeachaspectisalsodifferent,butthisislater,afterthelossofthebilloflading,firstortosolvethefollowingmeasurestoreducethepossibilityofrisk. 1.Timelynotifyrelevantshippingcompaniesandtheiragents.Insuchcases,theshippingcompanyanditsfreightforwardingagentareundertheobligationofprudence,andshouldnolongerreleasethegoodssimplybecausetheholderofthebillofladinghastheoriginalbilloflading,butshouldrequirethedrawerstoprovidesufficientevidencethattheyobtainedthebillofladingingoodfaith.Forexample,istheendorsementcontinuous?Doesitmeettherequirements?Hasreasonableconsiderationbeenpaid?Thecarriermayalsodischargetheliabilityforthegoodsunderthebillofladingbyplacingtheminescrowthroughlegalprocedures. 2.Applyforpublicnoticetothecourtintime.Onecanensurethattherightsunderthebillofladingisnotinfringed;Twocansolvetheproblemofmarginlong-termhysteresispressure.Becauseoncethecourtdecidestoacceptthepublicnotice,thetransferofbillrightswithintheperiodisinvalid.Thelegalcostoftheprocedureofpublicizingtheclaimislower,thelawyer'sfeeisalsolower,theexpirationoftheclaimperiod(generally60days)canapplyforthecourttomakeanexterminationjudgment. 3.Generallyspeaking,thelossofdocumentsshouldnotaffecttheportofdischarge,becausetheconsigneeisobligedtoreceivethegoodsandcannotrefusetounloadaccordingly;Likewise,thecarriershallnotrefusetodischargethegoodsonthegroundthattheconsigneedoesnothavetheoriginalbilloflading,althoughhehastherighttorefusetoreleasethegoods. 4.Whatresponsibilitiesshouldthepostalexpresscompanybear?Thecurrentregulationsgiveitalmostexemptionfromliability;Whethercanpassinsuringpostalexpressriskinsurancetopassonloss,currentinsurancecompanyseemsifdidnotcarryoutthisinsurance. 5,thebankissuedaletterofguaranteeaslongasthewordingoftheletterofguaranteeisspecificandcomprehensive,thereisgenerallynorisk.Ifitinvolvesalargeamountofguaranteeletter,itisbettertoaskthelegaladvisertocheckit,becausethereareindeedmanyprecedentsofinvalidbankguaranteeletterinpractice. Ifthebillofladingislostaftertheshipper'ssettlementofexchange,theownershipofthegoodshasbeentransferredtotheholderofthegoodfaithBilloflading,sogenerallythereisnoneedtoissueanewbilloflading,thecarrier'sobligationistodeliverthegoodstothegoodfaithbillofladingholders.Treatmentshouldalsovaryaccordingtodifferentcircumstances: Underastraightbilloflading:thecarriermaydeliverthegoodstotheconsigneeonthestraightbillofladinguponreceiptoftheconsignee'sletterofguaranteeandtheconsignor'swrittenguaranteetodeliverthegoodstotheconsignee. Underthedirectionofbilloflading:iftheagentattheportofdischargehasreceivedtheconsignee'srequestthattheconsigneebeunabletotakedeliveryofthisbillofladingduetothelossoftheBilloflading,theconsigneeshallberequiredtoproducetheoriginal/photocopyofthebillofladingissuedbytheoriginalcarrier,commercialinvoice,commercialcontract,packinglistandotherdocumentstoverifywhethertheconsigneeistheconsignee.Theagentattheportofdischargeshallatthesametimerequiretheconsigneetoprovidealetterofguaranteeinastandardformissuedbyafirst-classbankandshallatthesametimeasktheagentattheloadingporttocontactthesh