Foreign Trade
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Airfreight International | Seafreight International | International Road European Area | ||||
Terms of application
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WarsavTreaty of 1929 modified by 4 subsequent protocols.
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a) Brussels Treaty of 1924 modified in 1968 and 1979 (Haya-Visby Rules) |
CMR Geneva Treaty 1956
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Document
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Airway bill of lading (AWB)
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Bill of lading
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Consignment note CMR
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Transp. Coordinator
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Freight Forwarder IATA agent
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Freight Forwarder.Shipping Agent
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Freight Forwarder.Trucking Company ,Carrier.
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Issue of document
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Air Company or IATA agent
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Ship Owner, Captain, Shipping Agent ,Freigth Forwarder.
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Freight Forwarder.Trucking Company ,Carrier.
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Type of document
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No securities. Non negotiable.
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Securities,negotiable
Susceptible to be non negotiable |
No securities.Non negotiable (except agreed)
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Period of contractual execution
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Airport designated in AWB to Airport designated in AWB
(Period "under care of" carrier) |
a) From laden on board until discharged on pier.
b) R. Hamburg: From acceptance until delivery (under carriers custody) |
From the place of loading until the place of unloading which figures in the CMR or other equivalent document.
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System of responsability for loss or fault
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Presumed guilt.Exoneration if there is proof of:
Due diligence,force majeure |
C. Br.: Responsible for commercial faults.Not responsible for nautical faults and other 16 cases. R Hamburg:
Presumed guilt almost objective . Exoneration for due diligence and other exceptional cases. |
Presumed guilt.Exonaration if there is proof of: Sender blame, force majeure, fortuitous cases ,opened vehicles, deficient packing,sender stowage.
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Delay
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Fixed date:next day
Non fixed date; reasonable time |
C. Br.Maritime Transportation Law: ot contemplated R.Hamburg: fixed date: next day non fixed date:reasonable time.
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Fixed date:next day: if more than 30 days, lost goods. |
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Contingency Reserves
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Throught damage
a) Evident faults: at delivery b)Concealed damages:14 natural days (action required) Though delay:21 days from delivery at destination. |
Throught damage : Evident faults: C. Br.: at delivery; R. Hamb.: 1 working day . Concealed Damages: C. Br.: 3 natural days; R. Hamb.: 15 working days.Through delay (only R.Hamburg):60 days from delivery
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Throught damage
a) Evident faults: at delivery b)Concealed damages:7 working days Though delay:21 days from delivery (action required) |
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Prescription
Period |
2 years,expiry
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C.Br.: 1year since delivery. R. Hamb.: 2 years.
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1 year ;if unfair, 3 years
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Compensation
Limits |
17 DEG/Kg (±22 US$/Kg)
Without emission of AWB or no mention of weight:nolimits |
C.Br.:Biggest between:
*666,67 DEG/bulk or unit *2 DEG/kg gross (does not regulate delay) R. Hamb.: Biggest between *835 DEG/bulk *2,5 DEG/Kg Delay: 2,5 times the freight. |
a) Per loss or damage: 8,33 DEG/Kg
b) Delay: transportation rate. |
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Freight claim
period |
6 months
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6 months
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15 months from conclusion of transportation contract.
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Method | Usual time of payment | Goods available to buyer | Risk to seller | Risk to buyer | Comments | |
Cash in advance
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Before shipment
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After shipment
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None
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Complete.
Relies on seller to ship exactly the goods expected, as quoted and ordered. |
Seller's goods must be special in one way or another, or special circumstances prevail over normal trade practices (e.g., goods manufactured to buyer-only specification).
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Letter of credit (L/C) (See next two items)
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None
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None
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Commercial Invoice must match the L/C exactly. Dates must be carefully headed. "Stale" documents are unacceptable for collection.
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None
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Letters of credit require total accuracy in conforming to terms, conditions, and documentation. Consult your TransUnion office, member for determining feasibility of terms and conditions.
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Confired irrevocable credit
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After shipment is made, documents presented to the bank.
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After payment
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Gives the seller a double assurance of payments. Depends on the terms of the letter of credit.
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Assures shipment is made but relies on exporter to ship goods as described in documents. Terms may be negotiated prior to L/C agreement, alleviating buyer's degree of risk.
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The inclusion of a second assurance of payment (usually a U.S. Bank) prevents surprises, and adds assurance that issuing bank has been deemed acceptable by confirming bank. Adds cost and an additional requirement to seller.
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Unconfirmed irrevocable credit
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Same as above
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Same as above
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Seller has single bank assurance of payment and seller remains dependent on foreign bank. Seller should contact his banker to determine whether the issuing bank has sufficient assets to cover the amount.
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Same as above
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Credit can be changed only by mutual agreement, as stipulated in a sales agree- ment. Becomes open account with buyer's bank as collection agent. Foreign bank may have problems making payment in sum or timeliness.
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Drafts (See next two items)
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Remittance time from buyer's bank to seller's bank may still take one week to one month.
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None
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Drafts, by design, shoul contain terms and conditions mutually agreed upon.
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None
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A draft may be written with vitually any term or condition agreeable to both parties. When determining draft tenor (terms and conditions) consult with your banker and freight forwarder to determine the most desirable means of doing business in a given country.
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Sight Draft (with documents against acceptance)
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On presentation of draft to buyer.
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After payment to buyer's bank.
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If draft not honored, goods must be returned or resold. Storage, handling, and return freight expenses may be incurred
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None
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A draft may be written with vitually any term or condition agreeable to both parties. When determining draft tenor (terms and conditions) consult with your banker and freight forwarder to determine the most desirable means of doing business in a given country.
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Time Drafts (with documents against acceptance)
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On maturity of the draft
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Before payment, after acceptance
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Relies on buyer to honor draft upon presentation.
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None
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Payable based upon the acceptance of an obligation to pay the seller at a specified time. Although a time draft has more collection leverage than an invoice, it remains only a promissory note, with conditions.
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Open Account
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As agreed usually by invoice
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Before payment
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Relies completely on buyer to pay account as agreed
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None
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All terms of payment, including extra charges and terms should be mutually understood and agreed upon prior to open account initiation. Companies conducting ongoing business are candidates for open account terms of payment. Seller must measure not only buyer's credit reliability but the country's as well
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