International-Business-Dr-R-Chandran-E-book

100
International Business- Dr. R. Chandran
Parcel Post Receipt
Check that:
• The receipt shows evidence of dispatch to the party named
in the credit.
• The Post Office stamp shows a dispatch date on or before
the last stipulated date for shipment.
• The credit does not call for postal dispatch on a FOB basis;
these are not acceptable as postal charges to destinations have
to be prepaid.
Forwarding Agent’s Receipt
It is very important to establish at the outset whether there’s a
requirement for:
• A forwarding agent’s receipt showing goods received for
shipment or;
• A forwarding agent’s receipt showing goods received and
dispatched, as in the case of the CMR note. Normally, one set
of documents accompanies the goods on this type of journey.
INCOTERMS- A GENERAL GUIDE
A set of common and understandable terms with commitment
amongst the business community is to be implemented by every entity
in trading such as, shipper, receiver, shipping company, banker
clearing houses and insurance company.
Incoterms are a set of rules for the interpretation of the most
commonly used trade terms in international trade- International
Commercial Terms. They were first published by the International
Chamber of Commerce (ICC) in 1936 and since then have been
updated I 1953, 1967, 1976, 1980, 1990 and the current revision 2000.
Parties to a contract are often unaware that there are different
trading practices in their respective countries, for example, FOB for
an American company may have a different meaning than FOB for a
UK trader. This can lead to misunderstanding and, in the worst
scenario, costly litigation. Incoterms set out to avoid this problem by
giving a set of standard rules that are recognized throughout the
world.
The basic purpose of each Incoterm is to clarify how functions,
costs and risks are split between the buyer and seller in connection
Only for Private Circulation