AboutDavide Andrew Papa Expertise All matters pertaining to assisting Private import export INTERMEDIARIES, AGENTS and BROKERS Regarding International trade Laws and procedures,Letters of credits, as per UCP 600,Presentation, Commissions,International Rules of agency, and Incoterms 2000. All matters pertaining to shipping documents relating to the Import and export of products from one country to another.All matter for buyers and sellers of commodity products relating to the import and export industry.FTN with the introduction of UCP 600 will release the publication "The world is yours"(2004) made specifically for Intermediaries.Current inhouse tra ining manual is "Follow the Yellow Brick Road"(2008) Our advice website is www.ftnexporting.com
Experience FTN exporting founder Davide Papa has been trading for over 20 years- and has dealt with a huge variety of corporate entities including Gold and crude oil suppliers. FTN appeared in a major controversial Newspaper editorial in 1994. FTN Exporting official publication "International Trade and the Successful Intermediary"(ITSI) is about to be released world wide (December 2009) by the prestigious U.K publishing firm Gower's (U.K) and is listed on Amazon.com (Keyword: International Trade Intermediary) ITSI is ostensibly the first uniform intermediary trading doctrine of its kind, and will become the standard intermediary practice world wide in years to come. FTN exporting has created the said doctrine and supporting rules of trade defined as "URPIB" (Uniform Rules and Practice for Intermediaries and Brokers), which will (has?) become the most successful set of private intermediary rules ever created.
Publications The World is Yours and "Follow the Yellow Brick Road" www.ftnexporting.com . Author of "International Trade and the Successful Intermediary " (ITSI) 2009 excepts on http://www.gowerpub.com/default.aspx?page=637&calcTitle=1&title_id=11177&edition_id=12138
Education/Credentials Let school early. Became a master chef . Took up business management and later studied "international Trade at Stott's college Melbourne, Australia.
Question QUESTION: if the first consignment arrives at the port of Hong kong(buyer)if the goods where damaged or ship’s refrigeration failed where should buyer stand legally.Buyer is from Queesland Australia.
ANSWER:
Dear Nisha
Your question is too far broad-I can only give insight-
You did not explain yourself fully - ((I.e: are we talking FOB, CIF, FCA,CIP delivery - Are we talking shipowners vessel or charter party ?- You have buyer in Queensland and Buyer in hank Kong- What are you saying?))
As for matter of marine Insurance - I will not go there-Since you've asked the question then I assume buyer did not take out insurance specific to goods value-because if he did you would not be asking this question-
The END Buyer has legal remedy based on contract stipulation- In most cases but not all - Normal internal state consumer laws in country of import can be used to seek remedy- If the supplier or shipowners fails to act in matters of compensation- So the immediate answer is- "As it applies to Consumer laws as it pertains in the country of unloading"
A "Buyer" it has been found in past court ruling- does not "Pay" for "Defective goods" A buyer pays for and expects goods in good order and state as per contract regardless of any omissions implied-
You need to FIRST ascertain with whom the fault lays and make approaches to such for remedy(compensation) -usually with 90 days of delivery- If i.e; as stated the freezer FCL failed - then that's an issued of the shipowner or charter-It has nothing to do with the supplier- The supplier obligation as to quality and fit for purpose ends at port of loading when the goods pass the ships rails-etc..etc..
An intermediary can't be held responsible- because he does not have possession of goods only Title-
The Shipowner or charters has possession of good and Lien over such goods- The supplier does no longer own the goods once such passes over the ships rail in port of loading-
You must first ascertain who hold responsibility -then approach such in the first instance -Failure to remedy means you should report the defective goods via appropriate consumer protection entities in your country-A exporter does not take too kindly in having his good reported as being "bad" - A shipowner does not like bad publicity as to its service- But in the case of a shipowner, it gets a whole lot more complicated if the shipowners disputes that such defects were cause by them- thus such defects must be recorded via Photo, and declaration of eye witnesses account taken at point of unloading-when goods are taken in possession of the end buyer-
First ascertain who is as fault- is the first issue-The sellers invoice MUST clearly mention each unit-(Full description) "One fCL of frozen chicken" means nothing to a Shipowner- as a matter of Fact the Shipowner has no knowledge what is in a FCL- Thus will not acknowledge as such- In FCL a "received" bill of Laden as part of the CT documentation is often provided- In a NON FCL shipment a 'Clean" BOL" is expected to be endorsed as such- If the goods are loaded the ship's mate would have not applied the clean status on the BOL if goods are defective- Such then makes it easier to prove that the supplier is at fault- Also a bank will not allow collection on a DLC to apply for a "Claused" BOL-
In all cases the BOL of lading carries on its reverse the carriers terms and condition- there you will specifically find matters of Liability in case of damage or loss-
IN a FCL all that changes- if "Negligence"' is applied -as causing loss that's one issue- unforeseen circumstances is another-etc..etc..
Your sellers invoice has to be stipulated fully to prove loss Value-
Like I said it's a big question- I can only provide some insight on then path you need to take-
Regards
Davide Papa
www.ftnexporting.com
---------- FOLLOW-UP ----------
QUESTION: MFC is Hong Kong-based company that manufactures bottled fruit drinks for the Hong Kong and Chinese mainland.they entered into contract to purchase consignment mangoes from queesland plantation.
Payment is made through Direct telegraphy fund thru HSBC by submission of documentary proof.The carrier shall be engaged by the seller at the seller’s expense. All other costs shall be paid by the buyer. Sller has responsibity of laoding each consignment and safe delivery of documents.
in this case the first consignment arrives at the Port of Hong kong it becomes apparent that the ship’s refrigeration failed while at sea, where would GFC stand legally.
Answer
QUESTION: if the first consignment arrives at the port of Hong kong(buyer)if the goods where damaged or ship’s refrigeration failed where should buyer stand legally.Buyer is from Queesland Australia.
ANSWER:
Dear Nisha
Your question is too far broad-I can only give insight-
You did not explain yourself fully - ((I.e: are we talking FOB, CIF, FCA,CIP delivery - Are we talking shipowners vessel or charter party ?- You have buyer in Queensland and Buyer in hank Kong- What are you saying?))
As for matter of marine Insurance - I will not go there-Since you've asked the question then I assume buyer did not take out insurance specific to goods value-because if he did you would not be asking this question-
The END Buyer has legal remedy based on contract stipulation- In most cases but not all - Normal internal state consumer laws in country of import can be used to seek remedy- If the supplier or shipowners fails to act in matters of compensation- So the immediate answer is- "As it applies to Consumer laws as it pertains in the country of unloading"
A "Buyer" it has been found in past court ruling- does not "Pay" for "Defective goods" A buyer pays for and expects goods in good order and state as per contract regardless of any omissions implied-
You need to FIRST ascertain with whom the fault lays and make approaches to such for remedy(compensation) -usually with 90 days of delivery- If i.e; as stated the freezer FCL failed - then that's an issued of the shipowner or charter-It has nothing to do with the supplier- The supplier obligation as to quality and fit for purpose ends at port of loading when the goods pass the ships rails-etc..etc..
An intermediary can't be held responsible- because he does not have possession of goods only Title-
The Shipowner or charters has possession of good and Lien over such goods- The supplier does no longer own the goods once such passes over the ships rail in port of loading-
You must first ascertain who hold responsibility -then approach such in the first instance -Failure to remedy means you should report the defective goods via appropriate consumer protection entities in your country-A exporter does not take too kindly in having his good reported as being "bad" - A shipowner does not like bad publicity as to its service- But in the case of a shipowner, it gets a whole lot more complicated if the shipowners disputes that such defects were cause by them- thus such defects must be recorded via Photo, and declaration of eye witnesses account taken at point of unloading-when goods are taken in possession of the end buyer-
First ascertain who is as fault- is the first issue-The sellers invoice MUST clearly mention each unit-(Full description) "One fCL of frozen chicken" means nothing to a Shipowner- as a matter of Fact the Shipowner has no knowledge what is in a FCL- Thus will not acknowledge as such- In FCL a "received" bill of Laden as part of the CT documentation is often provided- In a NON FCL shipment a 'Clean" BOL" is expected to be endorsed as such- If the goods are loaded the ship's mate would have not applied the clean status on the BOL if goods are defective- Such then makes it easier to prove that the supplier is at fault- Also a bank will not allow collection on a DLC to apply for a "Claused" BOL-
In all cases the BOL of lading carries on its reverse the carriers terms and condition- there you will specifically find matters of Liability in case of damage or loss-
IN a FCL all that changes- if "Negligence"' is applied -as causing loss that's one issue- unforeseen circumstances is another-etc..etc..
Your sellers invoice has to be stipulated fully to prove loss Value-
Like I said it's a big question- I can only provide some insight on then path you need to take-
Regards
Davide Papa
www.ftnexporting.com
Dear Nash
Let me again state you question is not making sense-
Follow my lead below In CAPITALS to you question-
QUESTION: MFC is Hong Kong-based company that manufactures bottled fruit drinks for the Hong Kong and Chinese mainland.they entered into contract to purchase consignment mangoes from queesland plantation.
MFC ENTERED INTO A CONTRACT TO PURCHASE WHOLE MANGOS I ASSUME..?
Payment is made through Direct telegraphy fund thru HSBC by submission of documentary proof.
MISTAKE?- COLLECTION OF PAYMENT ARRANGED THROUGH A DLC AT SIGHT ON PRESENTATION OF COMBINED TRANSPORT CIP DOCUMENT DOCUMENTS -
The carrier shall be engaged by the seller at the seller’s expense.
INCORRECT? SELLER SHALL PROVIDE A CIP QUOTE FOR THE ACCOUNT OF THE BUYER- Freight may be collect and made as a CREDIT FOR the buyer account ACCOUNT
All other costs shall be paid by the buyer.
Sller has responsibity of laoding each consignment and safe delivery of documents.
THE SELLER LOAD THE CONTAINER AS OBTAINED FROM THE CARRIERS REPRESENTATIVE- TO WHICH A CARRIER RECEIPT IS GIVEN- THE CONTAINER IS DELIVERED TO A CONTAINER FREIGHT STATION-
in this case the first consignment arrives at the Port of Hong kong it becomes apparent that the ship’s refrigeration failed while at sea, where would GFC stand legally.
REFRIGERATION CONTAINER BREAK DOWN- DO YOU HAVE EVIDENCE OF SUCH - IF SO LIMITED LIABILITY OF CARRIER MAY IMPLY NEGLIGENCE- "LIMITED" NOT TO THE VALUE OF WHATS INSIDE , BECAUSE CARRIER DOES NOT KNOW WHAT IS INSIDE SUCH CONTAINERS-
CARRIER REFRIGERATION? SO SAY YOU? IS IT ON CONTRACT THAT GOODS WERE TO BE "SHIPPED IN REFRIGERATION CONTAINER-" BUYER COULD BE AT FAULT?
DID BUYER SPECIFY THE MATURITY OF THE FRUIT? GREEN, MANGOES RIPE MANGOES? COULD IT BE ARGUED THAT YOU ORDERED MANGOES THAT WERE SIMPLY VERY RIPE? BUYER COULD BE AT FAULT FOR NOT SPECIFYING MANGOS DESCRIPTION CORRECTLY-
WAS DELIVERY ON TIME- IT COULD BE ARGUED THAT THE SELLER DELIVERY WAS LATE? DELIVERY TO THE POSSESSION OF FCL TO THE CARRIERS REP OR CONTAINER FREIGHT STATION-? SELLER COULD BE RESPONSIBLE?
FIT FOR PURPOSE- WHO INSPECTED THE MANGOES AND ISSUED CERTIFACTION OF QUALITY? IF THE ASSESSMENT WAS INCORRECT - THE INSPECTOR AND EXPERT OF SUCH COULD BE LIABLE?
DID THE SELLER DELAY IN TAKING DELIVERY FROM S CUSTOM WHARF- IT GOOD BE ARGUED THAT SUCH DELAYS COULD BE THE CAUSE OF DEFECTIVE GOODS- FAULT OF OF THE BUYER-
DID YOU PAY "CIP CARRIAGE AND INSURANCE PAID TO" THEN MAKE A CLAIM ON INSURANCE- ONE OF THE DELIVERY DOCUMENT SHOULD HAVE BEEN AN INSURANCE CERTIFICATE-
NASH DON'T ASK ME THIS LEGAL QUESTION ON THIS OPEN SITE- Get me a copy of the contract ,and a copy of the important Seller's invoice-
I will then tell you my opinion on who is at fault- as stated such matters are not clean cut- send it to davide_ftnexporting@yahoo.com.au
I assume the fruit arrive in a rotting state-
If the fruit did not arrive as per the contract you have a claim-Because Nobody orders "rotting " fruit-
Thus it become a legal matter in where an international trade lawyer should be retained- but you need to ascertain and be 100% who is responsible first-
