【正文】 e same manner as under CIF terms, ie. at the time when the goods have effectively passed the ship’s rail.CFR…Port of DestinationThe only difference between CIF and CFR lies in the fact that under CFR terms the buyer is responsible for the payment of insurance premium and of course, for arranging the necessary coverage with an insurance pany in the buyer’s country whereas under CIF terms, the buyer is not. It does not concern the seller, however, the seller must see to it that shipping advice shall be sent in time so as to enable the buyer to proceed with insurance arrangement. In case the seller fails to send the shipping advice due to oversight, he will be held responsible for any loss of or damage to the goods as a result of his negligence.Air and Rail TransportationThe three trade terms are primarily applicable to ocean transportation. In practice, they are inappropriate for air and rail transportation. For instance, when goods are exported to Hongkong by rail, we may now quote CIP Hongkong。 at some other ports, the entire loading expense is to be divided equally between buyer and seller. In view of these variants, as a foreign trade worker he ought to be careful about the application of the FOB terms and may do well to choose one of the following FOB variants to suit his need.(1) FOB Liner TermsIt means that all the loading and unloading expenses are to be borne by the party who pays the freight, ie. the charterer of the carrying vessel. Under FOB terms, the sellers shall not pay loading expenses, the charterer being the buyer.(2) FOB StowedIt denotes that the seller pays the loading expenses including stowing expenses.(3) FOB TrimmedThis term signifies that the seller pays all the loading expenses including trimming expense (which actually also including stowing expense).(4) FOB Under TackleThis term only requires the seller to send and place the goods on the wharf within the reach of the ship’s tackle.RemarksWhen dealing with customers from Canada, the United States and Latin American countries, we must use caution, inasmuch as they are used to adopting “Revised American Foreign Trade Definition 1941”, which provides for six kinds of FOB terms, only one of which is identical with FOB terms as under Incoterms 2000. For instance, if you use FOB New York for your imports, it will be a serious mistake because in such a case the sellers will deliver the goods to the city of New York only. You must specify FOB vessel New York, in which case the sellers shall load the cargo on board a ship.Another point which concerns the interests of both seller and buyer is the timing of the arrival of the carrying ship which the buyer charters, at the port of shipment. If the arrival is well in advance of the stipulated date of shipment, the buyer may well be placed in an awkward position as the goods may not be ready for shipment, then who is going to pay the shipowner for the idle time, ie. the demurrage. Conversely if it is far behind the stipulated time, the warehousing expenses thus incurred should be borne by the buyer who is responsible for chartering the ship. Occasionally, the buyer may entrust the seller with chartering business, however in case he fails to charter a ship as required owing to some unforeseen circumstances, the seller is not liable for any expenses arising therefrom.In a nutshell, a foreign trade worker must bear in mind whose responsibility it is, the buyer’s or the seller’s, to make various arrangements under different delivery terms, and what is the correct content of the responsibility. In the end he will not be puzzled when confronted with any difficulties in his export and import business.CIF…Port of DestinationA. The Seller must:(1) Supply the goods in conformity with the contract of sale, together with such evidence of conformity as may be required by the contract.(2) Contract on usual terms at his own expenses for the carriage of the goods to the agreed port of destination by the usual route, in a seagoing vessel (not being a sailing vessel) of the type normally used for the transport of goods of the contract description, and pay freight charges and any charges for unloading at the port of discharge which may be levied by regular shipping lines at the time and port of shipment.(3) At his own risk and expense obtain any export license or other governmental authorization necessary for the export of the goods.(4) Load the goods at his own expense on board the vessel at the port of shipment and at the date or within the period fixed or, if neither date nor time has been stipulated, within a reasonable time, and notify the buyer, without delay, that the goods have been loaded on board the vessel.(5) Procure, at his own cost and in a transferable form, a policy of marine insurance against the risks of carriage involved in the contract. The insurance shall be contracted with underwriters or insurance panies of goods repute on FPA terms, and shall cover the CIF price plus ten percent. The insurance shall be provided in the currency of the contract, if procurable.Unless otherwise agreed, the risks of carriage shall not include special risks that are covered in specific trades or against which the buyer may wish individual protection. Among the special risks that should be considered and agreed upon between seller and buyer are theft, pilferage, leakage, breakage, chipping, sweat, contact with other cargoes and others peculiar to any particular trade.When required by the buyer, the seller shall provide, at the buyers expense, war risk insurance in the currency of the contract, if procurable.(6) Subject to the provisions of article below, bear all risks of the goods until such time as they shall have effectively passed the ship’s rail at the port of shipment.(7) At his own expense furnish to the buyer without delay a clean negotiable bill of lading for the agreed port of destination, as well as the invoice of