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.
I am following up from our last correspondence. As usual we must thank you, as you were nice enough to lay out a general map of the final stages of a FOB sale. Your advice has been crucial in guiding us through the process and in helping us map out our game plan on a very limited time scale.
I have questions pertaining to two topics.
1)TRANSPORT: MOVING THE WINE FROM BODEGA/ THE VINEYARD IN ARGENTINA TO CHINA
WE ARE NOW WORKING OFF A CIF QUOTE
My company will be getting the wine in Argentina from the bodega, FOT. I already contacted JF Hillebrand and I have a quote to get the wine from the bodega to China. My end buyers are working off a CIF quote as I already stated.
My question is as follows: Am I physically considered to be taking position of the goods? If so, does a transferable DLC still apply? (Can I still use a transferable DLC)
In addition to contacting the freight carrier (JF Hillebrand), do we need to contact our own customs agent? If so, will our import/ export wholesale licensee from the US be sufficient to clear the goods for export out of Argentina to China—or do we need a registered company in the country we are exporting from
2)CONTRACT
One of the clauses included in our end buyers contract (the have sent us from), and I quote:
“12. Inspection and claims:
Within 90 days after the arrival of the goods at destination, should the quality, be found not in good, the Buyer shall, on the strength of the inspection certificate issued by the China Inspection Quarantine Bureau for entry and exit Commodity (CIQ), have the right to claim for compensation and all the expenses (such as inspection charges etc.) shall be borne by the Seller. “
Based on your own experience, does the wording seem reasonable to you? Obviously I will be contacting my attorney before I send these documents, but your general input would be appreciated.
Kind Regards,
Bennett A. Reiss
International Trade Consultant
Mir Global Marketing Co.
New York, USA
Office: (+1)
www.mirglobalmarketing.com
Answer
Dear Bennet
You are asking me t transverse the whole trading application because everything is branches off to another edict- There is not "question"here but a whole trading application
Let me give you soem guiding insight only assume there is a lot more to it-
(1)Am I physically considered to be taking position of the goods? If so, does a transferable DLC still apply? (Can I still use a transferable DLC)
ASSUMING YOU ARE AN INTERMEDIARY- NO YOU ARE NOT TAKING POSSESSION OF GOODS - YOUR END BUER IS TAKING POSSESSION OF GOODS- YOU ARE BUYING THEN SELLING TITLE TO THE GOODS- READ PAST ANSWERS ON SUCH ITS WELL DOCUMENTED-
YES YOU MAY USE A TRANSFERABLE DLC IN WHERE THE BU PRICE CAN BE TRANSFERRED TO YOUR SUPPLIER ONLY AND NOT OTHER ANOTER 'SELLER" ACTING AS A INTERMEDIARY-
YOU HAVE TO PAY THE TRANSFER FEE FIRST-MAKES USRE ITS A UCP 600 DLC MARKED AS TRANSFERABLE ISSUED FORM A TOP BANK-
CONTAINER DEALS ARE CIP(CARRIAGE AND INSURANCE PAID TO AND NOT REALLY CIF-SO ENSURE CIP "INCOTERMS" IS IMPLIED
ALSO MAKE SURE THE SUPPLIER IS THE OWNER IN POSSESSION OF GOODS BEING ORDERED OR HIS AUTHORIZED AGENT-
2. Inspection and claims:
Within 90 days after the arrival of the goods at destination, should the quality, be found not in good, the Buyer shall, on the strength of the inspection certificate issued by the China Inspection Quarantine Bureau for entry and exit Commodity (CIQ), have the right to claim for compensation and all the expenses (such as inspection charges etc.) shall be borne by the Seller. “
Based on your own experience, does the wording seem reasonable to you? Obviously I will be contacting my attorney before I send these documents, but your general input would be appreciated.
PAYMENT FOR GOODS IS MADE- SUPPLIER GETS PAID BEFORE SHIP LEAVES- YOUR CERTIFICATE OF QUALITY IS ADVISED-WITH YOUR DOCUMENT PRESENTATION - SAID IMPLIED "INSPECTION" IS TO DO WITH MATTERS OF PRESERVATIVES (VERY IMPORTANT) , LABELING, LANGUAGE, IMPORT LAWS ,CORK, CONTENT LAWS- AND MATTERS OF PEST AND QUARANTINE ISSUES- AND IF CERTIFICATE OF ORIGIN IS REQUIRED THEN SUCH MUST ALSO BE APPARENT FOR CUTOMS CLEARANCE-
SO MAKE SURE EVERYTHING IS APPLIES ON THE CONTRACT - AS TO YOUR OBLIGATIONS; IE. SO YOU INFORM HIM THAT THE WINE CONTAINS SULPHUR AS A PRESERVATIVE ON CONTRACT AND HES SAY .OK ONLY TO FINSD THAT CHINA CUSTOMS DOES NOT ALLOW IMPORTATION OF GOODS WITH SUCH PRESERVATIVES- THEN THAT'S THE BUYERS FAULT NOT YOUR- NOTHING CAN BE CLAIMED-
Also imply all customary charges of importation taxes, tariffs and custom clearance are for cost of the buyer-on your contract to him-
in accordance with INCOTERMS
JUST ENSURE THAT DESCRIPTION OF EVERY SINGLE PART OF THE WINE , THE BOTTLE , THE LABEL THE CONTENT IS VERY CLEARLY STIPULATED ON YOUR CONTRACT WITH THE END BUYER -
HE THE BUYER ACCEPTS THE CONTRACT- AND HE MUST OBTIAN THE IMPORT PERMIT IF GOODS ARE REJECTED FOR MATTER ACCEPTED ON CONTRACT ITS THE BUYER FAULT FOR NOT INFORMING YOU AS SUCH - NO LIABILITY IS IMPLIED-
IF GOODS RE REJECTED BECAUSE YOU FAILED ON MATTERS OF CONTRACT DESCRIPTION ITS YOUR FAULT-
CUSTOMS DO NOT CHECK QUALITY- THEY SIMPLY CHECK IMPORT COMPLIANCE- THUS BY THE ABOVE WORDING OF THE CONTRACT IF A CUSTOMS OFFICIAL CRACKS OPEN A BOTTLE OF WINE AND HE DOES NOT LIKE IT -ITS YOUR COST- NONSENSE.
THE 90 DAY RULE IS ALLOWED AS A MATTER OF INTERNAL CONSUMER LAWS IN CHINA- IN THAT IF THE WINE IS "NOT DRINKABLE" AND UNFIT FOR HUMAN CONSUMPTION.. THEN SURE THATS YOUR FAULT- THE SAID CHARGES APPLY IN SUCH MATTERS- BUT YOU WOULD HAVE GOTTEN YOUR CERTIFICATION OF QUALITY FROM THE SUPPLIER THUS HE PAY YOU ACCORDINGLY IN RETURN- BECAUSE A CERTIFICATION OF QUALITY ISSUED BY AND INDEPENDENT WORLD CLASS INSPECTION AGENCY IMPLIES LIABLITY TO THE AGENCY IF THE CERTIFICATION WAS WRONGLY IMPLIED-
SO ENSURE YOU OBLIGATIONS AS TO LIABILITY AN QUALITY ALSO IS APPLIED ACCORDINGLY-
Apply the following in similar form-
2. Inspection and claims:
Within 90 days after the arrival of the goods at destination, should the quality, be found not IN ACCORDANCE WITH MATTERS OF CONTRACT AND THAT SUCH GOODS HAVE BEEN DEEMED BY A WORLD CLASS independent AUTHORITY such as SGS AS BEING UNFIT FOR HUMAN CONSUMPTION-, the Buyer shall, on the strength of the inspection certificate issued by the THE SAID THIRD PARTY INDEPENDENT INSPECTION SERVICE ATTESTING TO THAT THE BUYER HAS PURCHASED GOODS OF INFERIOR STANDAEDS UNFIT FOR THE PURPOSE OF USE-not in accordance with te sales contract- THE BUYER SHALL HAVE RIGHT TO CLAIM AS AN EXPENSE AND DEBIT OF SAID COST OF CERTIFICATION AS MADE TO APPLY IN THE FORM OF A DEBIT AGAINST THE ACCOUNT OF THE SELLER-SUCH CLAIMS DIRECTLY RELATED TO THE COST OF THE GOODS AND INSPECTION EXPENSES IMPLIED And where no claim is made for AN IMPLIED loss or earning or profits CONSIDERED.
THus what gets teasted is IF such wines arrives in a bad state- wHeTHer the voyage has cause the goods to go bad to which the claim is against the Buyer insurance - or whether such goods were loaded in a bad state to which the supplier is liable-to you, of which you become liable to your end buyer-
THUS ALSO IMPLY INSURANCE IS GIVEN TO STANDARD CARGO VALUE - BUYER SHOULD CONSIDER TAKING UP EXTRA INSURANCE AS THEIR OWN COST..ETC..
and so forth and so on-
So take away the word "compensation"
Export permit is secured by the supplier to you as part of your delivery document requirement -
WHAT YOU PROVIDE TO THE BUYER IS PROVIDED TO YOR FROM YOUR SUPPLIER TO YOU- YOU ONLY DEAL IN TITLE - YOU TRANSFER TITLE AS PER THE CONDITIONS OF THE DLC
Based on what is implied i hope the above guides your efforts-
