Ci terms of trade rates and insurance terms] a non stereotypical international terms of trade, "price and cost, insurance," trade price conditions. In the international trade practices in c&i conditions as trading conditions often occur.
The common practice is, both in terms of FOB contract, but the provisions of the insurance to be effected by the sellers. The reason of this approach: (1) in some countries where mandatory, import and export cargo insurance shall be borne by domestic insurance companies, such as the export contract failed to CIF terms, can be used c&i. (2) the sale of both on FOB conditions of contract, due to the special nature of the goods, the buyer is unable to from the insurer of the importing countries get to insure insurance class, therefore requests the seller generation for the insured. (3) import and export country of the insurance premium gap, the buyer to reduce insurance burden, the seller is required for insurance. So, this kind of practice is, the invoice from the seller, usually the first column Ming FOB price, then combined with the actual payment of insurance premiums, constitute a price for Ci. The buyer to the FOB amount for the amount of the credit, the Seller shall provide insurance single and the provisions of the insurance fees can be included in the bill; that the seller to fob amount plus the insurance fee issue bills for documentary.
Another approach is that trading they sometimes, although on CIF conditions of contract, due to the buyer and freight alliance provides a synthetic Wan rate can get preferential freight. Meantime the and the seller agreed designated by the buyer shipping, freight by the abroad to pay. In this case, the first listed in the invoice cif. The price, then deduct the freight, as Ci price, the seller to this value as the amount of bills. CIF "I" meaning "I" in CIF [ireplication of price] "in the world has a greater impact on the business community and the legal associations, the insurance price in other CIF conditions and regulations. One is the 1953 international trade conditions explain general "provisions: according to the CIF price terms, the Seller shall, at its own expense to reputable insurance company Ping An insurance, insurance amount including the CIF price of additional 10% - plus; insurance coverage does not contain a particular industry or the buyer required special risk; for stealing and leakage, crushing, cut, sweat, and contact with other cargo and other industry-specific special risk, the sale of the two parties shall consider and whether the agreement should be confirmed; if the buyer to cover war risk, the seller may apply on behalf of the insured, but at the buyer's cost. Second, the 1932 Warsaw Oxford Rules "which Article 12 the seller about the insurance liability provisions: the seller at their own expense to reputable insurance companies according to the particular industry or scheduled routes to all risks; the seller is not responsible for cover war risk, buyer's request for insurance the risks, the seller can generation for the insured, but at the buyer's cost. The three is the "1941 foreign trade definitions (Revised)" provisions in the responsibility of the seller (3) and (4) provisions in the seller of good credit insurance company for ocean transportation cargo insurance and pay insurance premium. The relevant insurance coverage, the two sides should work together to clear the WPA and FPA, and other specific industries should belong to other special risks insurance, or the buyer to obtain separate security risks. The seller and the buyer should be considered and agreed the special risks: theft, theft, leakage, breakage, sweating, contamination of other goods. The war risk insurance at the time of shipment the seller's market can get war risk, the cost borne by the buyer.
