Dear all,
Our customer are requested by their buyer to quote the contract price as FOB plus Insurance premium ,they are requested to provide Insurance Policy/Cert. and add insurance premium in the FOB price. Formerly there was a trade term like "C and I", but now it disappears
Which of Trade terms or Incoterms should be used in the Sale Contract?
Rgds,
Ajcha
Trade term "C&I
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ORUNMILA
- Posts: 32
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- First Name: HEDGAR
- Last Name: AJAKAIYE
- Organization: ZENITHBANK PLC
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RE: C& I
Hi
under the ''C group' of the thirteen incoterms we have:
1. CIP( cariagge and insurance paid)- name port of destination
2. CFR( cost and freight)- name prt of destination
3 CPT ( carriage paid to) - name port of destination
4 CIF( cost insurance and freight) name port of destination
since incoterm essentially explains the duties responsibilities of parties in the delivery of goods sold under the sales contract, the above delineation simply expalians depending upon the sale contract the additional responsibilities and duties of the seller in the delivery of the goods to the buyer because aside having had them(the goods) FREE ON BOARD- FOB also has to see to it that the goods are insured betweenn the port of loading or shipment to the port or place of destination.
the premium paid by the seller could be deemed to be cost which could be shown separatley from the FOB Value which will then be followed by the insurance element- CIF(SEA), CIP(SEA), ( under here the premium paid by the seller to insure the goods and the freight cost comes in)
illustration:
cost: units price x quantity= y
FOB: Y( QUINGDAO PORT)
I: B
F: C
CIF: YBC( FELIXSTOWE PORT LONDON)
i hope you find this useful
Orunmila
under the ''C group' of the thirteen incoterms we have:
1. CIP( cariagge and insurance paid)- name port of destination
2. CFR( cost and freight)- name prt of destination
3 CPT ( carriage paid to) - name port of destination
4 CIF( cost insurance and freight) name port of destination
since incoterm essentially explains the duties responsibilities of parties in the delivery of goods sold under the sales contract, the above delineation simply expalians depending upon the sale contract the additional responsibilities and duties of the seller in the delivery of the goods to the buyer because aside having had them(the goods) FREE ON BOARD- FOB also has to see to it that the goods are insured betweenn the port of loading or shipment to the port or place of destination.
the premium paid by the seller could be deemed to be cost which could be shown separatley from the FOB Value which will then be followed by the insurance element- CIF(SEA), CIP(SEA), ( under here the premium paid by the seller to insure the goods and the freight cost comes in)
illustration:
cost: units price x quantity= y
FOB: Y( QUINGDAO PORT)
I: B
F: C
CIF: YBC( FELIXSTOWE PORT LONDON)
i hope you find this useful
Orunmila
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narisa
- Posts: 63
- Joined: Tue Feb 03, 2009 9:23 pm
trade terms
Dear Orunmila
I would be corrected for your indicated incoterms
terms CIP and CPT use for mode of transport other than by sea (ship to place i/o to port) so
CIP and CPT - name place of destination
but CIF and CFR use for sea shipment so
CIF and CFR - name port of destination
If I have wrong way other comment appreciated.
I would be corrected for your indicated incoterms
terms CIP and CPT use for mode of transport other than by sea (ship to place i/o to port) so
CIP and CPT - name place of destination
but CIF and CFR use for sea shipment so
CIF and CFR - name port of destination
If I have wrong way other comment appreciated.