The Study on the Practical Problems of FOB and CIF terms under L/C transaction - with Special Emphasis on Incoterms® 2010 -

신용장 거래에 있어서 FOB, CIF조건의 적용상 문제점에 관한 연구 - Incoterms® 2010을 중심으로 -

  • 이대우 (청운대학교 국제통상학과, 금융연수원) ;
  • 양의동 (청운대학교 국제통상학과)
  • Received : 2011.11.10
  • Accepted : 2011.11.25
  • Published : 2011.12.01

Abstract

This article aims at analysing the practical problems of FOB and CIF terms relating to Incoterms$^{(R)}$2010 in case of L/C transactions and presenting the defending measures against them. According to Incoterms$^{(R)}$2010, FOB and CIF terms are to be used only for sea or inland waterway transport and require the seller deliver the goods on board the vessel nominated by the buyer at named port of shipment. So if FOB and CIF terms will be used in sea transport under L/C transaction, the seller should ship the goods on the nominated vessel and present the shipping document indicating "on board vessel" to the issuing bank but the parties agree to present the received bill of lading according to special condition on L/C which is" received bill of lading are acceptable". In practical transaction, FOB and CIF terms are usually used in aircraft cargo, container cargo or multimodal transport. these facts are a violation of Incoterms. Incoterms$^{(R)}$2010 which regulated that FOB and CIF terms may not be appropriate where goods are handed over the carrier before they are on board the vessel for example goods in container. These transactions are a temporary expedient and breach of Incoterms in the international trade which must be corrected as soon as possible.

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