Chapter 1: negotiation delivery - Business English | Trường Đại học Hùng Vương

CHAPTER 1: NEGOTIATING DELIVERY
Five steps in negotiating delivery:
(1) Timing: Date of delivery, delay and results of delay
(2) Location: Place of delivery and alternatives
(3) Transport: Model(s) of transport to be used
(4) Risk, Title and Insurance: transfer of risk, transfer of ownership and insurance.
(5) Terms of trade: Incoterm to be used. Step 1: Timing
- When must delivery take place? o
The date of dispatch from the factory o
The date of loading onto a ship o
The date when the goods should arrive in destination.
- What if there is a delay in the delivery of the goods? o
Excusable delay (sự chậm trễ được miễn trách nhiệm): Epidemics (dịch bệnh), floods,
fire, strike, Quarantine restrictions (kiểm dịch), usually severe weather (hiện tượng thời
tiết bất thường) (các TH bất khả kháng) (the kind of delay which involves grace period and due to force majeure) o
Non-excusable delay (sự chậm trễ không được miễn trách nhiệm) -
How many kinds of delay are there in delivery? 2 kinds o Excusable delay o Non-excusable delay
Step 2: Place of delivery
- What is the Place of Delivery? o
A: when the goods are handed over to the carrier (Free Carrier: giao hàng cho người chuyên chở) o
B: when the goods are shipped on boarding the exporter’s country (Free on board: Giao lên tàu) o
C: when the goods are oll-loaded in the buyer’s country o
D: when the goods arrive at the buyer’s warehouse
- Why is Place of Delivery important? o
Control and Responsibility go together o
Place of delivery is important because date of payment depends on the place and time delivery. o
Risk and ownership often pass at the place of delivery. 1 Step 3: Transport -
What mode of transport is most appropriate? (mode of transport: phương thức vận chuyển ≠
means of transport: phương tiện vận chuyển)
The choice of transport is subject to the nature of goods, customer’s wishes, costs, safety, terms of export sales contract... o
Inland transport (vận chuyển nội địa): by road, by rail, by barge, by mail, or by mixture
(vận chuyển liên hợp)... o
Overseas transport: by air, by sea... o
Transportation of goods requires proper packaging, shipping marks (mã hiệu), and documentation.
Step 4: Transfer of Risk, Ownership and Insurance
- What risk is passed on the delivery of goods? o The risk of loss and damage o
The risk of goods doing harm to a third party
- Where do risks often pass from exporter to importer? o
At the point of delivery (tại điểm giao hàng) o
Risk and insurance go hand in hand (đi cùng), the party facing a risk shall arrange insurance.
- When is risk transferred from exporter to importer? (When does the transfer of ownership take place?) o
Transfer of ownership/title can take place at any point btw. signature of contract and final payment for the goods. 1. Timing
1.1. What factor do exporters consider in choosing the right date of delivery?
Exporters must know how long it takes to: - Obtain supplies - Manufacture the goods - Packaging the goods -
Arrange pre-shipment inspection -
Transport goods to the agreed point of delivery
1.2. What might be the consequences of miscalculating the date of delivery? -
An exporter would pay a heavy penalty if he sets a too early date of delivery. -
A buyer would have his money tied up in unused goods in case of too early delivery while too
late delivery also results in big financial losses especially if goods are to be resold. 2
1.3. How important is the date of delivery?
The delivery date triggers many contract events. (What events does the delivery trigger?) -
The exporter must complete primary duties under the contract. - Payment becomes due. -
Risk and Title pass the the Buyer. -
Exporters must pay compensaton to the Buyer in case of late delivery.
1.4. How to fix the date of delivery? -
Date of delivery is fixed for a number of days after the date of contract coming into force. -
Date of delivery can be any calendar date.
1.5. When does the contract come into force?
The date of contract coming into force is not usually calendar date but the date on which the last
precondition (điều kiện tiên quyết cuối cùng) is met. -
Pre-conditions for the sale include: o
Receipt of import and/or export approval (Ngày nhận được cấp phép XNK) o
Receipt of foreign exchange approval from a central bank (Ngày được NHTW cấp phép ngoại hối) o
Issurance of a letter of credit or bank guarantee (Ngày phát hành thư tín dụng hoặc bảo
lãnh thanh toán của ngân hàng) o
Making a down-payment (thanh toán theo đợt) by the buyer (Người mua thanh toán đợt 1) o
Issurance of an insurance policy (Phát hành hợp đồng bảo hiểm) o
Issurance of a certificate of origin (Phát hành giấy chứng nhận xuất xứ hàng hóa) o
Delivery by the buyer of plans, drawings or other documentation. (Người mua chuyển giao bản vẽ kỹ thuật) -
After Signature date (thường dùng Date of Execution: ngày ký HĐ)  The contract is binding (HĐ có tính ràng buộc) -
After Date of Coming into force (thường dùng Effective Date – ngày HĐ có hiệu lực)  The
contract is binding and effective (HĐ có ràng buộc và có hiệu lực)  Delivery Date (ngày giao hàng) -
If the contract has not come into force within a certain time, then it becomes null and void (nếu
HĐ không có hiệu lực trong thời gian quy định thì sẽ bị tuyên bố vô hiệu)  Cut-off date -
What is a cut-off date? In what kind of contract is a cut-off date set? Why? o
Cut-off date is the date by which if the contract has not come into force after a certain
day within the signature day, then it becomes null and void. 3 o
It is commonly in fixed-price contracts because a long delay can make the price unrealistic. -
Coming into force = become effective: có hiệu lực o
This agreement shall come into force after execution by both parties on the date of the
last necessary approval by the competent authorities in the country of the Seller and the
Buyer (Sau khi 2 bên kí kết, HĐ phải có hiệu lực vào ngày các cơ quan có thẩm quyền ở
quốc gia của người mua và người bán đưa ra phê duyệt cuối cùng). o
If the contract has not come into force within ninety days of (kể từ khi) execution, it shall become null and void. o
The date of delivery shall be twenty-eight days after the date of coming into force of the contract. o
How does the date of coming into force of the contract affect the delivery date? The
delivery date is normally fixed for a certain number of days after the contract has come into force. -
“Time is of the Essence” clauses: o
If punctual delivery is essential, the contract will include the following clause: “Time is
and shall be of essence of this contract” o
If the time is not kept, the buyer has the right to send back the goods and refuse payment.
1.6. Delivery with and without Grace Period (ân hạn: khoảng thời gian cho thêm để đáp
ứng yêu cầu của hợp đồng nếu người bán gaio hàng muộn và người mua thanh toán muộn)
- What is Grace Period? o
Grace period is extra time allowed for meeting with a requirement, satisfaction of an
obligation, or implementation of an agreement. o
Grace Period is the period between Delivery Date and Penalty Period. -
Delivery without grace period: For each week of late delivery (trong mỗi tuần giao hàng muộn)
the Seller shall pay the Buyer 0.1% of the contract price. -
Delivery with grace period: If delivery is not effected (nếu hàng không được giao) within one
month of the agreed delivery date, then the Seller shall pay the Buyer 0.1% of the contract price. -
What is the grace period used for? The buyer gets the goods and the seller receives payment
earlier than planned without additional risks. -
Which type of delivery would you choose if you were the Seller? o
Delivery with grace period is chosen because of advantages to both sides if early delivery is possible. 4 o
Buyer gets the goods and exporter receives payment up to a month earlier than planned. o
These advantages are achieved without additional risks.
1.7. Excused Delay and Force Majeure: -
Force Majeure (a French expression) meanss a superior power (bất khả kháng)
Other synonyms of Force Majeure: o
Act of God (law) – an event caused by natural forces beyond human control. o
Contigency – a future event or circumstance that is possible but cannot be predicted with
certainty or an event that may or may not happen. -
What is Force Majeure?: Unexpected and unavoidable events such as a war, crime, or an
earthquake which prevent people from doing something that is required in a legal agreement. -
A Force Majeure Clause:
If either party is prevented from, or delayed in performing any duty under this Contract by an
event beyond his reasonable control, then this event shall be deemed force majeure, and this
party shall not be considered in default and no remedy, be it under this contract or otherwise,
shall be available to the other party.
Force majeure events include, but are not limited to: war (whether war is declared or not), riots,
insurrections, acts of sabotage, or similar occurrences; strikes, or other labor unrest; newly
introduced laws or government regulations; delay due to government action or inaction; fire,
explosion, or other unavoidable accident; flood, storm, earthquake, or other abnormal natural event.
- Should the parties wait for the force majeure event to last forever?(What can party do if the
force majeure continue too long?)
A party might choose to terminate the contract if a force majeure continues for months with the following clause:
"If either party is prevented from, or delayed in performing any duty under this Contract, then
this party shall immediately notify the other party of the event, of the duty affected, and of the
expected duration of the event. If any force majeure event prevents or delays performance of
any duty under this Contract for more than sixty days, then either party may on due notification
to the other party terminate this contract."
- What are outcomes of FM? o Resumption of delivery o Termination of the contract
o Unclear, dangerous situation: when 2 parties do not regulate force majeure in advance
1.8. Unexcused Delay and Buyer’s Remedies: 5 -
When unexcused delay occurs, there are TWO remedies for Buyer (What are the two remedies
given to the Buyer for any unexcused delay?): o
The court issues a decree of specific performance (Sắc lệnh yêu cầu thi hành nghĩa vụ
hợp đồng) requiring the exporter to make delivery as agreed. (Civil - law countries/ Các
nước áp dụng Dân luật/ luật châu Âu) (enforce performance) o
The court requires the exporter to pay the buyer compensatory damages (tiền bồi
thường). (Common-law countries Các nước áp dụng Thông luật/ luật Anh – Mỹ) (award damages)
- What are damages? (what questions do the courts ask in setting a figure for compensatory
damages for late delivery?)
Sums of money paid to compensate the injured party. The amount of damages is decided after three questions are answered. o
Did the loss provably follow from the breach? o
Was the loss reasonably close to the breach in the chain of events? o
Was the loss mitigated or Did the buyer take reasonable steps to keep the loss as small as possible?
- What might be a better solution to late delivery?
o Liquidated Damages( Tiền bồi thường định trước)
 The lump sum (1 khoản tiền) to be paid per day (week or month) of late delivery
 The court might increase or decrease the figure for damages, depending on the country's law.
o Penalties (Tiền phạt vi phạm)
 A type of punishment given to a party for not performing its duty
 The amount of penalty is usually very high
o Quasi (kweizai) - indemnity (Tiền tương đương bồi thường)
 An amount of compensation fixed by exporter to relieve his responsibility for late delivery.
 The compensation is usually very low.
o Explain the differences between liquidated damages, penalties and quasi – indemnity: Liquidated damage Penalty Quasi – Indemnity
Motive: to compensate the Motive: to terrorize the exporter Motive: to relieve the exporter
buyer fairly for any delay in into punctual delivery
of liability for delay in delivery delivery
Enforceable everywhere but Not enforceable in English law Enforceable everywhere but
subject to increase or decrease or other common law systems open to challenge as 6 in some legal systems “unconscionable”  Translate: Liquidated Damages:
"If the Seller fails to supply any of the goods within the time period specified in the Contract, the
Buyer shall notify the Seller that a breach of contract has occurred and shall deduct from the contract
price per week of delay, as liquidated damages, a sum equivalent to one half percent of the delivered
price of the delayed goods until actual delivery up to a maximum deduction of 10% of the delivered price of the delayed goods."
(Nếu người bán không giao bất cứ phần hàng hóa nào trong khoảng thời gian quy định của hợp đồng,
người mua sẽ thông báo với người bán rằng đã có sự vi phạm hợp đồng và sẽ khấu trừ vào giá trị của
hợp đồng theo từng tuần trì hoãn, khoản này sẽ được xem là khoản bồi thường định trước, cứ mỗi tuần
giao hàng chậm thì người bán phải trả 0.5% giá trị của hàng hóa chậm giao cho đến khi giao hàng
xong, nhưng khoản này không vượt quá 10% giá trị của hàng hóa bị chậm giao.) Fine Payable:
If the Seller fails to deliver the Goods at the fixed date, a fine shall be imposed upon him for the period
of delay until delivery is completed. The fine shall be as follows:
2% for the first week, or any part of it.
4% for the second week, or any part of it
6% for the third week, or any part of it.
8% per week for the fourth week, or part of it, and for all the succeeding weeks.
The fine shall be calculated on the total contract value.
(Nếu người bán không giao hàng trong thời gian cố định, anh ta sẽ bị ấn định một khoản tiền phạt cho
đến khi việc giao hàng hoàn thành. Khoản tiền phạt có thể như dưới đây:
2% cho tuần đầu tiên, hoặc bất cứ ngày nào trong tuần đầu tiên.
4% cho tuần thứ hai, hoặc bất cứ ngày nào trong tuần.
6% cho tuần thứ ba, hoặc bất cứ ngày nào trong tuần.
8% cho tuần thứ tư, hoặc bất cứ ngày nào trong tuần, và cho tất cả những tuần tiếp theo.
Khoản tiền phạt sẽ được tính dựa trên tổng giá trị hợp đồng.) 2. Place of Delivery -
Delivery is normally supposed to be the arrival of goods at destination but this is not accepted in contract language. -
The parties have to clarify what they mean by place of delivery. -
Place of delivery is the point at which exporter passes responsibility for the goods to buyer. -
Place of delivery may vary depending on the terms of trade chosen by both parties. 7
Example: FOB (Free On Board): Delivery takes place when goods cross the rail of ship nominated by buyer o EXW: Giao hàng tại xưởng o FOB: Giao hàng trên tàu o
CIF: Tiền hàng, phí bảo hiểm và cước phí
2.1. Which of the following clauses would you use to regulate the place of delivery for your contract? -
"Delivery of the Goods shall be made FOB (Haiphong)." -
"Delivery of the Goods shall be made CIF (Hamburg)." -
"Delivery of the Goods shall be made CIF (Haiphong). The scheduled date of delivery shall be
1st December 2018. Risk and title to the Goods shall pass from the Seller to the Buyer on
delivery. The place of delivery under this Contract is (Osaka)."
2.2. In case the term of trade of contract is FOB (Haiphong) for example, the seller shall
prefer to add one more clause relating to the place of delivery as follows:
"If the vessel named by the Buyer fails to arrive on or before the agreed delivery date, then the Seller
may at his discretion deliver the goods to a bonded warehouse (kho ngoại quan) in the port of
Haiphong, and shall be deemed to have fulfilled his delivery obligations under this Contract."
(Nếu tàu chỉ định bởi người bán không đến đúng hoặc trước ngày giao hàng đã được thỏa thuận, người
bán có toàn quyền quyết định vận chuyển hàng hóa tới một kho ngoại quan ở cảng Hải Phòng, và được
coi là đã thực hiện xong nghĩa vụ giao hàng theo hợp đồng.) 3. Transport
3.1. Three aspects of transportation:
Physical safety of the goods which means: - Appropriate packaging - Correct marking. - Correct documentation. - PACKAGING - A typical clause:
"Goods are to be packed in new, strong, wooden cases suitable for long-distance ocean transport and
are to be well protected against dampness, shock, rust or rough handling. The Seller shall be liable for
any damage to or loss of the goods attributable to improper or defective packaging."
(Hàng hóa phải được đóng gói trong thùng gỗ mới và chắc chắc, phù hợp với vận chuyển đường dài và
phải được bảo vệ cẩn thận bởi ẩm, va đập, gỉ sét hoặc bốc dỡ mạnh tay. Người bán phải có trách nhiệ
với bất kỳ hư hỏng nào của hàng hóa do đóng gói lỗi và không đúng quy cách.) o
THREE COMMON PACKAGING PROBLEMS
 Packaging of dangerous goods is subject to special regulations in all countries. 8
 Some national laws require fumigation (khử trùng) all containers
 Some packaging materials are strictly forbidden in agriculture-based countries
such as hay (cỏ khô), straw (rơm), and rice husks (trấu). -
SHIPPING MARK (ký mã hiệu) CLAUSE
"On the surface of each package delivered under this Contract shall be marked: the package number,
the measurements of the package, gross weight, net weight, the lifting position, the letter of credit
number, the words right side up, handle with care, keep dry, and the mark: DNP/36/0."
(Trên bề mặt của mỗi kiện hàng phải được ký hiệu: số kiện hàng, kích cỡ, khối lượng tổng, khối lượng
tịnh, vị trí nhấc cẩu, số thư tín dụng, dòng chữ ĐẶT THẲNG ĐỨNG, BỐC XẾP NHẸ TAY, GIỮ
KHÔ, và ký hiệu: DNP/36/0) -
SHIPPING DOCUMENT (Chứng từ) o
The most important shipping document is the Bill of Lading.
 A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper
that details the type, quantity, and destination of the goods being carried. o
Three functions of Bill of Lading
 B/L is the Contract of Carriage (HĐ chuyên chở) entered into between the
"Carrier" and the "Shipper or Cargo Owner" in order to carry out the transportation of the cargo.
 B/L is the Receipt of Goods (biên lai nhận hàng) issued by the carrier or their
agent to the shipper or their agent as proof of RECEIPT of the cargo.
 B/L is the Document of Title to the Goods (chứng từ sở hữu hàng hóa) o
There are different types of Bill of Lading:
 A marine bill of Lading (Vận đơn đường biển)
 An air waybill (Vận đơn hàng không)
 A rail consignment note (Chứng từ vận tải đường sắt)
 A road consignment note (Chứng từ vận tải đường bộ)
 A combined transport bill of Lading (Vận đơn vận tải liên hợp) o Marine Bill of Lading
 Marine Bill of Lading must indicate that goods have been loaded on a named vessel.
 Marine Bill of Lading is negotiable (chuyển nhượng).
 To transfer the negotiable Bill of Lading, the consignor (the person or business
shipping the goods) must stamp and sign the bill.
 A negotiable bill of lading must be written to the order of the consignee. It must be
a clean bill of lading (vận đơn hoàn hảo) 9
 What notation must a Marine Bill of Lading bear? Notation indicating that the
goods have been shipped/loaded on board a named vessel.
 How can a marine bill of lading be made into a negotiation document? Putting the
word "TO ORDER" into the Consignee box. o
UNCLEAN/CLEAN SHIPPING DOCUMENTS
 What are clean shipping documents? The documents free of notes about defects.
The Goods, packaging and general appearance are inspected by a carrier. Common notes
(phê chú) include (List the cases when a marine bill of lading is considered claused):  Contents leaking
 Packaging soiled (bẩn) by contents.
 Packaging broken/holed torn/damaged.  Packaging contaminated.  Goods damaged/scratched.
 Goods Chaled (trầy xước)/torn/deformed.
 Packaging badly dented (lõm)
 Packaging damaged-contents exposed  Insufficient packaging
Not all notes are considered to be
(không hoàn hảo = unclean). 'claused' Examples:
 Second-hand/reconditioned packaging materials used.
 Packaging repaired/mended/resewn/coopered (được đóng lại vào thùng)  Unprotected  Unboxed. 4.
Risk, Title and Insurance -
Insurer/Underwriter/Insurance company (Người/Công ty bảo hiểm). -
Insured/Assured (Người được bảo hiểm) -
Subject matter insured ( Đối tượng bảo hiểm) -
Risk insured against ( Rủi ro được bảo hiểm) -
Insurance premium (Phí bảo hiểm) -
Insured value (Giá trị bảo hiểm). -
Insured amount (Số tiền bảo hiểm) 4.1. Risk
- Two risks are involved in the sale of goods: o
Risk of the goods injuring a third party. o
Risk of loss or damage (more significant). 10 4.2. Title - Transfer of Title o
National laws do not agree on the point of passing ownership of goods.  Passing
ownership of goods is disposive (tùy định đoạt) o
Many exporters expect to keep legal ownership until the full payment is made but this
ownership is of little value. WHY?  It's too complicated and costly to bring the goods home. 4.3. Insurance
- Who is responsible for arranging insurance cover? Exporter or Buyer?
There are two schools of thoughts on this matter. o
Point of delivery is decisive  Up to the delivery, the exporter insures; after the delivery the buyer insures. o
Exporter should insure  They have standing arrangement with an insurance company.
They can declare the details of their products. - Important Notes: o
It's up to the two sides to reach an agreement on the terms that best meets their needs. o
Insurance cover under CIF and CIP contracts is for the value of the goods plus 10% ( the expected profit of the buyer). o
Cover is in the currency of the contract o
By endorsing (ký hậu) the certificate of insurance, the exporter can assign/ transfer the
full right to the buyer. This can be done after goods are lost.
- Policy, Certificate or Letter of Insurance ? o Insurance Policy
It is time-consuming to prepare an insurance policy, especially when a number of
underwriters are involved.  Uncommon and impracticable to take out an Insurance Policy. o Certificate of Insurance
Many exporters have an agreement with an insurance company covering all their
shipments over a period of time.
Each individual shipment is covered by a Certificate of Insurance, not by a full policy. A certificate of insurance:
 States in outline the cover offered
 Gives the details of the individual shipment. o Letter of Insurance 11
 This is simply a letter from exporter to buyer stating that the goods are insured.
 It has no legal force except as evidence in a law suit against the exporter
- Types of Insurance Policy (Name types of insurance policy) o
Based on the description of insured ship, goods or insured subject matter (Marine Insurance)
 Floating Policy (Hợp đồng bảo hiểm thả nổi)
 Open Cover (Hợp đồng bảo hiểm bao nhiều chuyến) o
Based on the value of the insured subject matter
 Valued Policy (Hợp đồng bảo hiểm định giá)
 Unvalued Policy (Hợp đồng bảo hiểm không định giá) o Based on time period
 Voyage Policy (Hợp đồng bảo hiểm chuyển).
 Time Policy (Hợp đồng bảo hiểm thời hạn)
o What do Floating Policy and Open Cover have in common?
 Both offer exporter insurance cover on all shipment over time period.
 A ceiling is set on the overall figure – for example, $1 million
 As each individual shipment is made, exporter declares the value of the shipment
and the ceiling is automatically reduced by that amount and that shipment is
covered by a Certificate of insurance. Exporter has a pad of these certificates and
simply fills out a new one for each shipment o
Floating Policy and Open Cover are different in the following aspects (What does a
Marine Insurance plicy cover?)
 Floating Policy is set up for a particular time and automatically expires unless
being renewed (gia hạn). Open cover is open-ended. It does not expire although
there are provisions for cancellation on due notice  Open cover is more convenient.
 Open Cover is not an insurance policy at all. It is an agreement by an insurance
company to issue an insurance policy if the insured asks for one. Normally he only
creates a Certificate of Insurance with the knowledge that if he wants a policy, he
can get one at any time, even after a loss  Open Cover is less formal, less time-
consuming but extremely reliable. o
Insurers have various ways of limiting claims under such cumulative agreements.
Generally claims are kept down by:
 A limit per bottom (a 'bottom' is a ship); 12
 A limit per locality (the exporter's warehouse is a 'locality. A warehouse may
contain several consignments awaiting shipment. If they are all destroyed, the
locality limit will probably bite.)
Insurance companies also generally add the Institute Maintenance of Class Clause (Điều
kiện bảo hiểm); this requires that all ships used by the exporter are in a certain class in the shipping register. o
Valued Policy vs. Unvalued Policy
 Valued policy is the policy in which the exporter states the value of the goods on the insurance document.
 Unvalued policy is the case where the exporter did not state the value of the
goods being insured with the insurer. Then the value of the goods can be
established after a loss. The exporter must prove his figures precisely. As long as
the figure is less than the total cover under the policy, the insurer shall pay.
- Cargo Clause (Điều kiện hợp đồng) A, B, or C o
Developed by the International Chamber of Commerce as a means of insurance for cargo
in transit from original location to its final destination. o
Institute Cargo Clause A is considered the widest insurance coverage => The insured
pays the highest premium for total coverage o
Institute Cargo Clause B is considered a more restrictive coverage  The insured expects
to pay a moderate premium because only the more valuable items in the cargo is covered
or only partial cargo coverage. o
Institute Cargo Clause Cis considered the most restrictive coverage  The insured pays the lowest premium.
- Cargo Clauses (B) Versus Cargo Clauses (C)
Only difference between Institute Cargo Clauses (B) and Institute Cargo Clauses (C) is the
additional risks covered under ICC (B) cargo insurance policies o
Loss of or damage to the subject matter insured reasonably attributable to earthquake volcanic eruption or lightning o
Loss of or damage to the subject matter insured caused by entry of sea lake or river water
into vessel craft hold conveyance container or place of storage. o
Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft
- Cargo Clauses (A) Versus Cargo Clauses (C) 13 o
Institute Cargo Clauses (C) covers very limited risks as a result it is called as a minimum cover cargo insurance policy. o
Institute Cargo Clauses (A) covers wide range of risks as a result it is called as a "All Risks" cargo insurance policy. o
Insurance premium, would be substantially different between these two policy types. o
Institute Cargo Clauses (C) is the cargo insurance policy type which is requested by the Incoterms 2010 rules o
Institute Cargo Clauses (A) is the cargo insurance policy type which is requested by the
issuing banks under letter of credit transactions
- Which risks are generally excluded from Cargo Clause A? o
Willful misconduct of the insured o
Ordinary leakage; loss of weight; normal wear and tear o Poor packaging o Inherent vice in the goods o Delay o Insolvency of carrier o Use of nuclear weapon o War risk o Strike risk
- Compare Insured Value vs. Insured Amount? o
Insured value is the maximum amount that an insurance policy can cover. Sometimes the
insured value is so big that premium is unaffordable for the insured. So the insured may
ask the underwriter to insure part of the value. 5. Terms of Trade
- The Incoterms (abbreviation of International commercial terms) rules developed by the
International Chamber of Commerce was created as an industry standard to facilitate
international trade! and for the interpretation of the trade terms that the parties to a contract of sale could agree to apply.
- There have been 8 revisions to the set of Incoterms rules first introduced in 1936. As global
trade developed and evolved, the Incoterms® rules were revised in 1957, 1967, 1976, 1980,
1999, 2000 and 2010 to accommodate changes in global trade.
- The ICC publication, INCOTERMS 1990, gives full and clear information about the rights and
duties of buyer and exporter in Incoterms contract.
- Incoterms 1990 of ICC includes 13 terms on the basis of 3 variables: 14 o
Where along the transportation route delivery takes place; o
What means of transport is used; o
What costs the exporter might pay after the point of delivery.
- 13 terms are grouped in 4 categories: o E-term o F-term o C-term o D-term - Incoterms 2010 o
The number of Incoterms has been reduced from 13 to 11 o
Two new rules (DAT- Delivered at Terminal, and DAP Delivered at Place) replaced the DAF, DES, DEO, DDU. o
Rules for any mode of transport include
 EXW (EX WORKS): giao hàng tại xưởng
 FCA (FREE CARRIER): giao hàng cho người chuyên chở
 CPT (CARRIAGE PAID TO): cước phí trả tới
 CIP (CARRIAGE AND INSURANCE PAID TO): cước phí và bảo hiểm trả tới
 DAT (DELIVERED AT TERMINAL): giao hàng tại bến
 DAP (DELIVERED AT PLACE): giao hàng tại nơi đến
 DDP (DELIVERED DUTY PAID): giao hàng đã nộp thuế o
Rules for sea and inland waterway transport
 FAS (FREE ALONGSIDE SHIP): giao hàng dọc mạn tàu
 FOB (FREE ON BOARD): giao hàng trên tàu
 CFR (COST AND FREIGHT): tiền hàng và cước phí
 CIF (COST INSURANCE AND FREIGHT): tiền hàng, bảo hiểm và cước phí
o Name THREE new features of Incoterm 2010?
 11 terms instead of 13 terms
 2 groups instead of 4 groups
 On board instead of ship’s rail
 Used for both domestic and international trade
 Officially recognize e-commerce.
6. Thuật ngữ trong Incoterm 2010:
- agreed destination: nơi đến thỏa thuận
- agreed place: nơi thỏa thuận 15
- at its own risk and expense: phải tự chịu rủi ro và phí tổn
- at the buyer’s request, risk and expense: khi người mua yêu cầu, chịu chi phí và rủi ro
- at the buyer’s risk and expense: với rủi ro và chi phí do người mua chịu
- at the disposal of the buyer: đặt dưới sự định đoạt của người mua
- before the contract of sale is concluded: trước khi hợp đồng được ký kết
- carry out all customs formalities for the export of the goods: làm thủ tục hải quan để xuất khẩu hàng hóa
- clear the goods for export: làm thủ tục thông quan xuất khẩu
- commodities: Hàng nguyên liệu đồng nhất
- container terminal: bến container
- cost of handling and moving the goods: chi phí xếp dỡ và di chuyển hàng hóa
- critical points: điểm tới hạn, điểm phân chia trách nhiệm và chi phí giữa hai bên
- delivery document: chứng từ giao hàng
- electronic records or procedure: Chứng từ hoặc quy trình điện tử
- for the account of the seller: do người bán chịu
- fulfils its obligation: hoàn thành nghĩa vụ
- guidance note: Hướng dẫn sử dụng
- import clearance: thủ tục thông quan nhập khẩu
- incurred by the seller: mà người bán đã chi
- information that the buyer needs for obtaining insurance: những thông tin mà người mua cần để mua bảo hiểm
- latter stage: thời điểm muộn hơn
- load the goods from any collecting vehicle: bốc hàng lên phương tiện vận tải
- make arrangement for the carriage of the goods: tổ chức việc vận chuyển hàng hóa
- manufactured goods: hàng hóa sản xuất công nghiệp
- match this choice precisely: phù hợp với địa điểm này
- named place of destination: nơi đến chỉ định
- on board the vessel: xếp lên tàu
- otherwise agreed between the parties: trừ khi có thỏa thuận khác giữa hai bên
- over which the buyer has no control: qua địa điểm đó người mua không có quyền kiểm soát
- physical inspection obligation: nghĩa vụ kiểm tra thực tế
- place of destination: nơi đến
- point within the named place of delivery: địa điểm tại nơi giao hàng chỉ định
- precise point in the place of destination: một điểm cụ thể tại nơi đến
- procure goods shipped: mua hàng đã gửi 16
- provided that the goods have been clearly identified as the contract goods: với điều kiện là
hàng đã được phân biệt rõ là hàng của hợp đồng/hàng đã được xác định đúng như hàng trong hợp đồng
- ready for unloading: sẵn sàng để dỡ khỏi phương tiện vận tải - receipt: biên lai
- risks of loss of or damage to the goods: rủi ro bị mất mát hoặc hư hỏng của hàng hóa
- specific points/named place of delivery: địa điểm cụ thể tại nơi giao hàng chỉ định
- stowage of packaged goods: sắp xếp hàng hóa có bao bì
- string sales: Bán hàng theo chuỗi
- terminal handling charges: phí xếp dỡ tại bến bãi (THC)
- terminal operator: người điều hành bến bãi
- the named place of destination: nơi đến được chỉ định
- the named place: nơi được chỉ định
- the named terminal: bến được chỉ định
- the parties are well advised to specify as clearly as possible: Các bên nên quy định càng rõ càng tốt
- the point of delivery: địa điểm giao hàng
- unloaded from the arriving vehicle: đã dỡ khỏi phương tiện vận tải
- when a ship is used as a part of the carriage: khi một phần chặng đường được vận chuyển bằng tàu biển
- whether one or more mode of transportation: sử dụng một hay nhiều phương thức vận tải.
- within the named place of delivery destination/ several points: tại nơi giao hàng chỉ định có
nhiều địa điểm có thể giao hàng 17