Uncategorized INCOTERMS 2010 By Mr Old Man Posted on April 5, 2012 2 min read 11 0 3,928 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION FROM JASMINE LEW (Singapore) Dear Mr. Old Man Thanks for your good explanation in regards to “Partial Shipment”. I actually still couldn’t fully understand how Incoterm works. Are there any simple rules to remember who to bear the charges etc? This question needs your explicit explanation. Your customer has approached a manufacturer to buy 1000 pairs of shoes; the various prices quoted by the manufacturer are as follows EXW – 10000 FOB – 10500 CIF – 11500 DDP – 13000 Your customer has checked independently and received the following quotes for the same shipment they are All licensing and loading costs (in exporting country) – USD 500 Main Carriage cost – USD 1000 Minimum insurance cover – USD 500 Unloading costs, inland transport (in importer’s country) and import duties – USD 1500 What quote of the exporter your customer should accept? a) EXW b) FOB c) CIF d) DDP Ans: Awaiting your reply. Many thanks!Jas ————————————- ANSWER Dear Jas, As being a practitioner at the bank, I would help colleagues solve their problems arising from their daily work rather than help them solve CDCS exercises. So, just send me those arising from your work. Thank you for your understanding. Back to your question. According to the importer’s independent checking, CIF = C+ I + F = 10,000 + 500 + 1,000 = USD12,000. However, the manufacturer offers only USD11,500 for CIF. So, the importer should accept CIF price quoted by the manufacturer.The correct answer is c. Best regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?