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Friday, 12 November 2010

Cost , Insurance and Freight contract

Cost , Insurance and Freight contract
(CIF contract under Incoterm 2000)

The duties of the seller in a CIF contract [1]:
1.) Compose an invoice for the goods  :
2.) Ship the goods that respond accurately to the explanation of those ordered;
3.) Produce a contract of affreightment ;
4.) Assure the goods ; and
5.) Forward the needed shipping documents.

The profits and risks of CIF contract
               Their profits are obtained from the difference at which the booked freight and marine insurance and the final price were paid[2].
               Risk below a CIF contract usually passs ‘on shipment or as from shipment’. Implied here is the fact that ,where the goods are sold and consequently shipped ,the risk will pass on shipment[3].

               Likewise, where the goods are already afloat at the time the contract was closed, it does show that it would be more suitable to observe the risk as having passed as from shipment and not on shipment. This is because , the goods having been primary shipped and then sold ,the risk began running as from shipment and not on shipment ;it is obvious that the sale was headed by shipment  .It has been recommended that it will be more precise to say that the risk passes on sale’[4].

               Moreover[5] , the risk passes only after the goods are not in “on board” or “pass the ship’s rail”  ; in contrast , since we have just been , recent trade meaning occur risk pass as the goods are transported into the protection or transform of the carrier . Moreover, current practice in given that that risk passes after the goods are “handed over” to the carrier. After the
carriers is in a place to allow custody prior to loading it is complex to decide whether destroy noticed at destination occurred before , during or after loading. In some cases  , as when the seller has conveniences for pier loading such as granules or other size commodities .Then , the seller will not “ hand over” the goods to the carrier until they go through the ship’s hold ; when the seller transports the goods to an go-between at the port or a port power it will be particularly significant for the contract to identify the aim at which risk passes.

[1] Sweet and Maxwell , C.I.F. and F.O.B. contracts ,(1995) 41
[2] A.A. Precede , Exporting to the World ; A Manual of Practical Export for All Who Are Interested or Engaged in Foreign Trade, 104
[3] I Carr , International Trade law , (3rd edn , Great Britain  , London , 2005 ), (n9) 35-38
[4] J Honnold and H.M. Flechtner , Uniform law for international sales under the 1980 United Nations convention , Kluwer Law International , Bedfordshire , 2009 )312-316
[5] J Honnold and H.M. Flechtner  , (n13) 519

The vocabulary which can involve with the carriage of goods by sea

The vocabulary which can involve with
the carriage of goods by sea

Charter party:
 A charter party is a contract by an whole ship or main part thereof is let to a merchant forthe goods‘s transportation by the ship owner in consideration of the payment of a sum of money. It is frequently, but not essentially a action, and is carry out by the ship owner or the master or some other owner‘s representative[1]. The charter party is not only a contract of carriage of goods by sea because a charter party is regards as a combination of a contract of affreightment and a contract of carriage by sea in the first place a contract of future carriage (affreightment)[2].
Freight[3] :
 The total paid for the ship’s hire is estimated per ton or per month , and is called the freight .However , some  term is also refer to the cargo for donation[4].
The bill of lading[5] :
It regularly is for delivery to a specific person or his assigns. Nonetheless, sometime it is made out for delivery ‘to_order or_assigns.” The bill of lading has three of functions[6]:
1.)   Proof which a contract has be conclude
2.)   A receipt which the goods have been shipped
3.)   A document which presents the consignee a title which makes him the legitimate receiver of the carrier’s goods .

Total Losses[7] :
Loss means that is a total or partial .That called also average loss . A total loss is on account of the insured is entitled to recover the whole amount insured. It is the whole amount indicated. It is either completlyor productive.

It is a relinquishment  to  insurer by the insures which is of the subject of insurance or whatever part thereof may be saved , where the insured calls upon the insurer to settle with him for a total loss , in consequence of the destruction , or the improbability  of recovery.

[1] J.W smith ,A manual of common law : comprising the principles and the points,( 2nd edn,Lincoln’s Inn,London,1864)268
[2] W.A. Timmermans,Carriage of goods by sea in the practice of Ussr Maritime Arbitration Commission,(Kluwer Academic Publishers,Norwell,1999)54-58
[3] H.C Barnes,Freight rates and charges:laws,rules and regulations governing the construction,operation and development of railroad freight rates and charges in their application to interstate and foreign commerce,(London,1922)379
[4] J.W smith,(n1)268-269
[5] J.W smith,(n1)270-271
[6] W.A. Timmermans,(n2)107
[7]J.W smith,(n1) 278-282
[8] J.W smith,(n1)282

Saturday, 6 November 2010

FOB >>Free On Board


Briefly definition[1]
FOB: Free on board
Seller: have to deliver goods cleared for export
Risk: overtakes to buyer at delivery
Buyer: set up and pays for further transport costs and desired insurance.

The ‘free on board’ (FOB) contract ,as a ‘flexible instrument’ ,has reliably defied an suitable definition .This apart, the key propel of an FOB contract is the of  seller’s  acceptance to place ,at his own expenditure , goods ‘free on board’ the ship for shipment to the buyer[2].

The FOB contract has assured oddness. For instance, keep that there is an agreement to be consequence, a seller under an FOB contract is beneath no responsibility to protected a shipping space for the goods or for assuring the goods.  In the occurrence of his placing the cost of carriage and insurance , this regularly is passed to the account of the buyer[3].


In some case , the classification of FOB contracts frequently is based on the sort of duties undertaken by the parties in known cases. The importance in this text will be on so-called ‘classic’ FOB contracts. A’classic’FOB contract has three main features such as

1.) The seller is certain to create some progress arrangements for the shipment of the goods and the expense to be acquired by him that does not go away from the goods being raised over the ship’s rail;
2.) The FOB seller becomes a party to the contract of carriage either at the moment of lifting the goods on board or before; and
3.) The seller is required to protect a bill of lading on the common or regular terms in the trade; it is not yet resolved if the bill of lading essentially will be in the  name of buyer  on contract, thus, might include a condition for performance assurance. This basically signifies that aside from given that for the tendering of the usual shipping documents, the contract might specify that, in the occurrence some of the documents are gone, the buyer is required to pay the cost if in place of such documents the seller offers a performance guarantee.

[1] J.F. Morrossey and J.M> Graves , International sales law and arbitration , ( Kluwer Law International , Frederick , 2008 ) 150-151
[2]D Campbell ,Remedies for International Sellers of Goods 2006 , ( Yorkhill Law Publishing , 2006)  2158 -2159
[3] D Campbell (n1) 2099-2010

[4]C Malta , ‘Wholesale Suppliers. What is 'FOB'? 'Wholesale Tips' series’ [2009]
accessed 6 November 2010

Thursday, 4 November 2010

Child Labour

Child Labor

The progress headed for a prioritization come close  to child labor occurs in part because of the vagueness of the perception. The meaning of child labor can be unspoken merely in a legal common sense in that child labor can be supposed to comprise those appearances of labor that are prohibited by law , whether national or international. Nonetheless, those legal definitions are the invention of political settlements, mainly in the context of international law, which are themselves the effect of community, civilizing, political and economic places taken by states and other performers in meetings that draft and apply international legal provisions. Exploration these social and other suppositions about child labor , there is a puzzling for being short of  surely in the definition of child labor[1].
ILO : International Labour Organization

Progressively more, observers and international legal administrations effort to limit the conception of child labor to actions that are unfair or unsafe. In ILO (International Labor Organization) documents in the mid -1990s, a difference was completed among child labor (harmful) and child work (harmless). In recent times, the ILO has applied more definite terms and meanings, even though with an inopportune lack of consistency[2] .
For example :

In Washington in 1919 , where the primary International Labor Conference was detained , a draft convention was takn on concerning to the permission of children in industrial responsibilitys  :  Children below the age of fourteen years shall not be employed or work  in any public or private industrial enterprise , or in any branch, other than an undertaking in which only members of the similar family are employed [3].

[1] H Cullen , The Role of International Law in the Elimination of Child Labor , ( Leiden ,2007) 6

[2] H Cullen (n1) 7
[3] R.G. Fuller , Child Labor and the Constitution , ( North Stratford , 2000) 323

Wednesday, 3 November 2010

Human Right with International Trade

Human right with international trade
Trade can involve in international trade such as Intellectual Property Rights under human rights. The purpose is for protecting a amount of human rights , for example, the human right to health, the human rights of native peoples and the human right to food. Above all is under WTO panel by restrictive interpretation[1].Because of social and economic development ,the human right have also to be development[2] .The legality of human rights, which is the chapter in GATT1947 and the WTO Agreement , involved in trade measures imposed upon or used by developing States[3] .
The General Comment recognizes that trade restrictions such as on individual access to necessary food, drug and health services can be incoherent with the human right to heath, and that collaboration ought to be required also in the WTO for the accomplishment of right to health[4].
Trade remedies under usual international law that nothing in customary international law forbids states from using trade measures to encourage human rights fulfillment by a foreign state. Although international law customarily has defended the right of states to be free from interference by other states in conduct of their sovereign domestic affairs,this principle of non-intervention doesn’t clearly apply to the use of non-forcible,economic measures do violate the non-intervention norm. In addition ,they may comprise an acceptable use of non-forcible countermeasures to react against violations of international human rights[5].

[1]A.E. Cassimatis , Human Rights Related Trade Measures under International Law : The Legality of trade Measures imposed in Response to Violations of Human Rights Obligations under General International Law ,( Leiden ,2007 ) 143
[2] A.E. Cassimatis , (n1)403-404
[3] A.E. Cassimatis , (n1)405
[4]F.M. Abbott,C Breining-Kaufmann, and T Cottier , International Trade and Human Rights :Foundations and Conceptual Issues ,( the University of Michigan , 2006) 55
[5] F Francioni , Environment , Human Rights & International Trade ,(Oregon,2001) 208

Fairtrade Slide Show

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