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CHAPTER 26 TRANSPORTATION
At mention of transportation, the export goods have to be moved from the place of dispatch to the place of destination. Goods may be moved by sea, land or air or by a combination of those modes of transportation.
In international trade, it is very important for the exporter to choose a correct method of delivery because this concerns the safety of goods, freight, time of arrival, sale of the goods and development of the business.
I- Modes of Transportation:
1- Ocean Transportation:
As far as foreign trade is concerned, goods transportation is mostly done by ocean vessel ¡V tramp or liner.
A- A tramp is a freight-carrying vessel which has no regular schedule of sailing. It is first in one trade and then in another, always seeking those ports where there is a demand at the moment for shipping space.
B- A liner is a vessel with regular sailing and arrivals on a stated schedule between specific ports.
2- Railway Transport:
Railway transport does not tend to be effected by weather conditions, so it is available for transportation for almost the whole year. Railway transportation is fast, delivery quantity is large. It can guarantee the successive transport of goods. Risks of damage to the goods are extremely small. According to the stipulation of international convention concerning the carriage of goods by rail, the goods which belong to the export country may be transported directly to the place of destination as long as the carrier issues a railway bill of lading (B/L) at the place of dispatch.
3- Air Transport:
Air transport is fast and safe, the risk of damage to the goods is reduced to the lowest degree. It is especially suitable for transporting fresh, live, perishable and seasonal goods.
4- International Multi-Modal Transport:
International multi-modal transport means the conveyance of cargo between two countries by at lease two modes of transport from the place of dispatch to that of destination on the basis of a multination transport contract. The basic conditions of international multi-modal transport are as below:
A- Transport document, i.e, combined transport documents shall cover the whole journey.
B- It includes two or more different modes of successive transportation.
C- It shall be international transportation. ¡@ D- The multi-modal transport operator (M.T.O) shall be responsible for the whole journey.
E- The whole journey will use a single factor rate.
II- Delivery Condition:
Delivery conditions include the time of delivery, charges of loading and unloading operations, the ports of shipment and destination, partial shipments and transshipment and shipping documents¡K etc.
1- Time Delivery:
The time delivery refers to the time limit during the sellers shall deliver the goods to the buyer at the agreed place by the agreed methods
2- Ports of Shipment and Destinations:
* The port of shipment is usually chosen and decided by the seller, of course, it will be consented by the buyer. The points that we should pay attention to when stipulating, the port of shipment in an export contract;
A- The port of shipment must be closed to the origin of the goods.
B- We should take into consideration the loading and unloading, and specific transportation conditions, the standard of freight and the different charges at home and abroad.
* The port of destination is usually proposed and determined by the purchaser, which shall be convenient from reselling the goods. When we decide the port of destination, we should pay attention to the following points:
A-We should not accept the port in the country which our government does not allow to do the business.
B-The stipulation on the port of destination must be clear, we cannot use the ambiguous term such as {main port in Asia}.
C- If we choose a port which does not have the direct liner, we should stipulate {Transshipment to be permitted} in the contract.
D-The port of destination must be safe and closed to the purchaser¡¦s warehouse.
3- Shipping Document:
The shipping documents indicate that the goods have been loaded on the board and delivered into the custody of the carrier. In the constructive delivery, the shipping documents are the main foundation for the seller and prove that he has fulfilled the duty of delivery and the buyer has paid the purchase value. According to the different modes of transportation, the documents mainly refer to bill of lading (B/L), railway bills, airway bills and multi-modal transport documents¡K etc.
A- Bill of Lading (B/L):
The bill of lading is a document issued by a shipping company, representing both a receipt for the goods which already shipped and a contract for shipment between the shipping company and the shipper. It is also a document of tittle to the goods, giving the holder or consignee the right to posse the goods.
FORM OF BILL OF LADING
TPHU 605853 5 / PDZ 2638 PART OF 1 X 20¡¦ GP COC STC 3,776.00KGS 10.0400M3 NIL 320 CTNS X 6 BOTTLES X 2 LIT NETT: 3,456 MT KT GLOBE BRAND COOKING OIL IN BOTTLE
CY/CFS SHIPPER¡¦S LOAD COUNT & SEALED T/X EX GIWIN V. G9843 ETA 27-OCT-1999 FROM SINGAPORE
Temperature Control Instructions
¡@ B- Commercial Invoice (C/I):
Commercial invoice is a certificate of sale of the goods, it can be used as the foundation for keeping accounts and making declaration to the custom department. The commercial invoice usually includes the names and addresses of the seller and the buyer, drawing date, reference number of the buyer¡¦s order, ports of shipment and destination and names of the ship and route.
FORM OF COMMERCIAL INVOICE
INVOICE NO : ATTN : _________________________________________ ACCOUNT TO : _____________________________________________ ORDER NO : _____________________________________________ TERMS : _____________________________________________ DATE :
_______________________ ___________________________ CIPTA PURI SDN BHD CUSTOMER¡¦S SIGNATURE
C- Packing List and Weight Memo:
The packing list states the assortment of each individual lot, the weight memo states the gross and net weight of each piece.
FORM OF PACKING LIST
Date : O/REF:
QUANTITY :
VESSEL & DATE : SEA LINK V. 6485 / GIWIN V. G9835 DATED 29-08-1998
LOAD PORT : PORT KLANG / SINGAPORE
DESTINATION : SIHANOUKVILLE / CAMBODIA
MARKING : NILL ___________________________________________________________ No OF PACKAGES GROSS WEIGHT TARE WEIGHT NETT WEIGHT
SUMMARY FOR ITEM (A): FOR ITEM (B): No OF PACKAGES : No OF PACKAGES : GROSS WEIGHT : GROSS WEIGHT : TARE WEIGHT : TARE WEIGHT : NETT WEIGHT : NETT WEIGHT :
MEASUREMENT : MEASUREMENT :
FOR:
____________________________
NAME OF SELLER
A- Marine Insurance:
Marine Insurance is an insurance coverage for a ship and its cargo. Originally restricted to loss or damage at sea, marine insurance now covers cargo in transit overland to and from a port. Marine insurance underwrite all losses caused by accidents or natural disasters.
FORM OF MARINE INSURANCE PAGE: ASSURED : POLICY No : ACCOUNT CODE : STAMP DUTY : CONVEYAGE : SEA LINK V.6485/GIWIN V.G9835 DEPARTURE DATE: VOYAGE : FROM INSURED¡¦ S PREMISES VIA PORT KLANG TO PHNOM PENH, CAMBODIA AND THENCE TO CONSIGNEE¡¦S PREMISES. SUM INSURED: EXCHANGE RATE : DUTY RM 0.00 SUM INSURED IN RM :
SHIPPING MARKS: INTEREST INSURED: ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K.. ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K.. AS PER INVOICE No ¡K¡K¡K¡K.. DATED: ¡K¡K¡K. CONTAINER No: ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K.. CONSIGNEE: ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K... ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K
CONDITION OF COVER: CLAIMS SETTLING AGENT:
INSTITUTE CARGO CLAUSE (a) 1.1.82 W.K. WEBSTER (INTERNATIONAL) PTE LTD. INSTITUTE WAR CLAUSES (CARGO) 1.1.82 139 CECIL STREET, #10-00 CECIL HOUSE INSTITUTE STRIKES CLAUSE 1.1.82 SINGAPORE 069539 PORT DELAY CLAUSE TEL: 222 6022 (AFTER HOURS: 468 6504) SUBJECT TO EXCHANGE RATE CLAUSE AS FAX: 225 0428 PER BACK HEREOF INSTITUTE RADIOACTIVE EMAIL: info@wkebster.com.sg CONTAMINATION EXCLUSION CLAUSE AGENT FOR SURVEY: W.K. WEBSTER (INTERNATIONAL) PTE LTD 139 CECIL STREET. #10-00 CECIL HOUSE SINGAPORE 069539 TEL: 222 6022 (AFTER HOURS: 468 6504) FAX: 225 0428 EMAIL: info@wkebster.com.sg Subject to the following clauses whichever applicable: Port Delay Clause, Institute Classification Clause, Institute Radioactive Contamination Exclusion Clause, Electrical and Mechanical Derangement Exclusion Clause and Institute Replacement Clause. Warranted goods be shipped under deck unless carried by container vessel.
Notwithstanding anything contained herein or attached hereto the contrary, this insurance is understood and agreed to be subject to English law and practice only as to liability for and settlement of any and all claims.
This insurance doesn¡¦t cover any loss or damage to the property which at the time of the happening of such loss or damage is insured by or would but for the existence of this Policy be insured by any fire or other insurance policy or policies except in respect of any excess beyond the amount which would have been payable under the fire or other insurance policy or policies had this insurance not been effected.
We, HONG LEONG ASSURANCE BERHAD hereby agree, in consideration of the payment to us by or on behalf of the assured of the premium as arranged, to insure against loss damage, liability or expense to the extend and in the manner herein provided.
In Witness whereof, I the undersigned of HONG LEONG ASSURANCE BERHAD on behalf of the said Company have subscribed My Name in the place specified as above to the policies, the issued numbers thereof being specified as above, of the same tenor and date, one of which being accomplished, the others to be void, as of the date specified below:
ISSUED IN LIEU OF AND CANCELLING COVER NOTE No: IN WITNESS WHEREOF THIS POLICY HAS BEEN SIGNED ON BEHALF AND WITH THE AUTHORITY OF THE COMPANY. DATE : 28-08-1998 SIGNED AT : KLANG EXAMINED : YAN _________________________________________________
GENERAL MANAGER GENERAL DIVISION
E- S.G.S Certificate:
The legal certificate is issued by S.G.S (Societé Géneral Surveillance) S.A, to inspect the condition, quantity and price of import goods. A favorable report is called a clean report of finding. A negative report is called advice of nonconformity.
F- Customs Clearance:
After imported goods were unloaded, the goods will be transferred to customs bonded area for customs clearance.
Import Entry:
The customs broker must perform the procedures of import entry. The document is permitted to customs as follows:
`- Import Declaration `- Invoice `- Packing List `- Other documents according to necessity: Import License, Freight Account, Certificate of Origin and so on.
Examination and Inspection of Goods by Customs:
The customs officials carry out the examination of documents and inspection of the goods themselves as necessary. The goods are inspected in order to check them against the documents as well as to determine the dutiable amount. Sample inspection or complete inspection may be performed.
The customs also assures the compliance of import with the provisions of domestic laws. When necessary, the following inspection may be conducted in a bonded area. Quarantine Inspection of live animals under the Domestic Animal Infectious Diseases Control Law; Quarantine Inspection of plants under the Plant Protection Law, Inspection of food products under the Food Hygiene Law; etc. Receipt of Import Permit:
The import permit is obtained after clearing the goods and paying the import duties.
Receipt of Goods:
Talking more about the letter of lading (B/L):
1- According to Whether the B/L is Transferable:
B/L can be divided into three kinds:
A- Straight Bill of Lading:
It is made out so that only the consignee at the destination is entitled to take delivery of goods under the bill. This kind of bill cannot transfer to any people.
B- Order Bill of Lading:
This B/L indicates that the bill is made out to the order of any person named in such a bill. It can be transferred subsequent to the endorsement.
C- Blank Bill of Lading:
It is also called open B/L or bearer B/L. This kind of B/L can be transferred without endorsement.
2- According to the Modes of Transfer:
B/L can be classified into four kinds:
A- Direct B/L:
It is evidence that the goods are carried by the liner and transported from the port of loading directly to the port of destination without transshipment during the voyage. The buyer usually prefers this kind of B/L because the possible cargo damage or loss is usually caused by the transshipment.
B- Transshipment B/L:
When there is no direct service between two ports, the goods are transited by another liner during the voyage.
C- Through B/L:
When the entire voyage involves more than one carrier. The first carrier issues the bill and collects the freight from the entire voyage, and arranges the transshipment and forwarding of goods at the intermediate port. The shipper prefers this kind of B/L because of the troublesome having been saved to deal with other carriers by himself.
D- A Shipped on Board B/L:
A shipped on board B/L is to prove that the goods have been loaded on board a certain steamer. In the general foreign trade, only the shipped on board bill of lading is accepted by banks for payment under a letter of credit.
E- A received for shipment B/L:
A received for shipment B/L is evidence given by the ship-owner that the goods have been received for shipment but have not yet been actually loaded on a particular ship. Therefore, it is uncertain whether the goods would be shipped or loaded on board within a short period of time.
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