This document provides an overview of international trade law. It discusses key concepts like INCOTERMS, which are trade terms used in international transactions. It specifically examines the trade terms FOB (free on board) and CIF (cost, insurance, freight). For FOB, the seller is responsible for delivery of the goods to the ship. For CIF, the seller is responsible for delivery, insurance, and freight costs to the named port of destination. The document also outlines the duties and remedies of buyers and sellers under FOB and CIF contracts. It briefly discusses international trade organizations and laws that govern international trade transactions.
This document provides an overview of international trade law. It discusses key concepts like INCOTERMS, which are trade terms used in international transactions. It specifically examines the trade terms FOB (free on board) and CIF (cost, insurance, freight). For FOB, the seller is responsible for delivery of the goods to the ship. For CIF, the seller is responsible for delivery, insurance, and freight costs to the named port of destination. The document also outlines the duties and remedies of buyers and sellers under FOB and CIF contracts. It briefly discusses international trade organizations and laws that govern international trade transactions.
This document provides an overview of international trade law. It discusses key concepts like INCOTERMS, which are trade terms used in international transactions. It specifically examines the trade terms FOB (free on board) and CIF (cost, insurance, freight). For FOB, the seller is responsible for delivery of the goods to the ship. For CIF, the seller is responsible for delivery, insurance, and freight costs to the named port of destination. The document also outlines the duties and remedies of buyers and sellers under FOB and CIF contracts. It briefly discusses international trade organizations and laws that govern international trade transactions.
International Trade law is dealing with International sale of goods, the exchange of goods and services between countries.
Key stages in a typical transaction of the international sale of goods
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Negotiations between seller and buyer Making the sales contract between parties Shipment of the goods and carriage of the goods Problems associated in the international trade transaction An international sale will usually involve a sea transit Customs need to be cleared Import and export licenses need to be obtained. International sales raise conflict of laws problems Financial problems Fluctuations in currency 4 4 I nternational Trade Law
I NCOTERMS or international commerce terms International Chamber of Commerce (ICC) has introduced quite a number of special trade terms in use for international trade. These terms have simplified the sale of goods abroad. They are in universal use in trade transactions Two extremely useful trade terms, namely:
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FOB CIF FOB ( free on board)
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In a FOB contract, the seller has to put the goods on board a ship.
The price under an FOB contract includes the cost of the goods and all expenses up to the board the ship.
Once The delivery is completed then the property and the risk pass to the buyer.
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FOB ( free on board) Duties of the F.O.B buyer 8 8 I nternational Trade Law Nomination of a ship To secure shipping space To obtain the necessary import license Pay any cost incidental to the shipment
Pay the seller for the goods in accordance with the contract
Duties of the FOB seller
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To ship the goods of contract description at the named port of shipment To ship goods on time To obtain Export licenses To deliver the necessary documents CI F contracts
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CI F contracts CIF stands for
The letter CIF represents the three contracts involved The cost the sale contract Insurance-the contract of insurance Freight- the contract of carriage.
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cost, Insurance freight Shipping documents involved in CIF contract
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The commercial invoice A shipped bill of lading policy of insurance during the sea voyage Certificate of quality Certificate of inspection Certificate of origin
Duties of the seller under a CI F contract
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To ship the goods according to the contract description To enter into a contract of carriage in order to deliver the goods. To ensure that the goods are properly insured under a contract of insurance
To procure and prepare proper shipment documents.
Duties of the buyer in a CI F contract
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Payment against documents The buyer must bear the loss according to contract Buyer must take delivery Import licenses
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Buyers remedies under CIF contract Rejection of the goods on arrival if not according to contract. Damages for non-delivery of the goods. Damages could also be claimed for late delivery. the buyer can reject the documents if the seller has not tendered the right documents
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REMEDI ES I N I NTERNATI ONAL SALES Sellers remedies under CIF contract Action for the price Damages for non-acceptance
Damages for breach of warranty
Other conditions affecting trade law 17e I nternational Trade Law
THE VIENNA CONVENTION ON THE INTERNATIONAL SALE OF GOODS 1980 World trade organization INTERNATIONAL CARRIAGE OF GOODS BY AIR INTERNATIONAL CARRIAGE OF GOODS BY RAIL
INTERNATIONAL CARRIAGE OF GOODS BY ROAD
18 I nternational Trade Law in Pakistan In Pakistan international trading is done under: International trade law. THE VIENNA CONVENTION ON THE INTERNATIONAL SALE OF GOODS 1980. Import Export control Act 1950 (Last Updated : Apr 19, 1950) Export control Act 2004 (Last Updated : Sep 27, 2004) Bodies implementing trade laws in Pakistan 19 I nternational Trade Law
Export Promotion Bureau of Pakistan TDAP (Trade development authority of Pakistan)
(International Series in Operations Research & - Management Science 230) Jack P.C. Kleijnen (Auth.) - Design and Analysis of Simulation Experiments-Springer International Publishing (2015)