Did you know…..Part Six

71-The difference between an FOB and a CIF agreement is the point at which responsibility and liability transfer from seller to buyer. With an FOB shipment, this occurs when the shipment reaches the port of loading or other facility designated as the point of origin. With a CIF agreement, the seller pays costs and assumes liability until the goods reach the port of destination chosen by the buyer.

72- CIQ stand for China Inspection and Quarantine.

73- LOI/ BCL/ ICPO/ POP/ MPA/ NCND/ PB/ASAP/Swift MT 103- MT 760- MT799/FFDLC/ and RWA are ineffective, unworkable flawed acronym terms, and an intermediary cannot accept or use in documents as they are not genuine offers. Even if it turned out to be a genuine, an intermediary would be unable to use the procedures as requested to close such a deal.

74- The supplier does not always bear the cost of the SGS certificate.

75- The leading or primary document required for presentation for collection on the DLC is a clean on board ship mate’s receipt, signed by the ship’s master or ship’s owner. An ocean waybill provides evidence that the goods are on board ship. Bill of lading also provides the same evidence but is the title of goods.

76-There are two types of Bank Guarantees. The ISP 98 Stand by Letter of Credit where the credit can be transferred more than once.  The UCP600 SBL the credit can only be transferred once.

77- While a ‘Performance Guarantee’ and a ‘Performance Bond’ both are based on performance, they still differ from each other. A Performance Guarantee follows the goods to the rail of the ship and no further.  The ‘Performance Bond’ follows the goods to the destination port of unloading.

78-The COO (Certificate of Origin) is secured by the supplier if it is asked for by the buyer and the cost remains with the buyer.

79- The Certificate of Origin is an import document not an export document.

80- A PIA /BROKER could face litigation for breach of contract with an end buyer for accepting payment for goods that was never secured.

81- If a PIA /BROKER fails to observe the rules pertaining to securing a genuine supplier before accepting payment there is a considerable risk that the deal will collapse and it is fraud.

82- Only a few items needed in order to start trading: An office in your home, a telephone, a computer with internet, an email address and the knowledge and skills to trade.

83-You do not need to registered a business name, or form a company to trade. Create a name, obtain a registered email address, create a website and then you are globally identifiable by that name. You now look professional and can start trading.

84- The intermediary should not accept international telephone calls, fax messages, from principals until they reach the contracting stage. The intermediary must spend time thinking about the response and provide all answers in writing.

85- Once the PIA /BROKER has secure the end buyer or the supplier does not mean the PIA /BROKER has permanent clients. The end buyer will probably dump you on the next contract and deal direct with the supplier, saving him a great deal of money in commission money made the  PIA /BROKER

86- The terms ‘UCP600’, ‘Bank’, ‘Transferable’ and ‘Irrevocable’ must be applied at all times to the type of financial instrument you request from an end buyer.

87- All fees for the transfer of the Documentary Letter of Credit must be part of the costs of the goods for the account of the end buyer and all contracts, and offers, should state this from the beginning.
88- It is important to memorize the important parts of trading so that you can quickly recognize a bad deal from a good deal. Like the Documentary Letter of Credit comes first and the bank guarantee comes second.
89- The PIA /BROKER needs to have everything confirmed in writing, and must not promise anything that cannot be delivered. If the PIA /BROKER is uncertain of any proposal, he must not reply until 100% what he is saying is correct.

90- The  PIA /BROKER usually will secure an end buyer but cannot secure a supplier or vice versa. The PIA /BROKER   must be patient it will come. This is called being in it for the long haul.