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How to reduce the risks of entrepot trade?
Release Date:2018-09-20 Message Source:原创 Views:

Transit trade involves two imports and exports of goods, so the risk is greater than that of general trade. Especially for the middleman, it is difficult for him to see the goods without passing through his location, and he is not aware of the situation of the goods, which is more risky for the middleman.

Where the goods do not meet the requirements of the contract, there are generally the following:

Quantity is not consistent. Including reduction, short, short and short unloading of goods.

Second, the quality is not consistent. When the seller delivers the goods of bad quality to the buyer, the specifications and models of the goods delivered by the seller are not in conformity, or the goods are deteriorated in transit for various reasons, etc.

Packing does not match. Such as Bad Packing, Loose Packing, Different Mark, No Shipping Mark, etc.

These goods do not conform to the contract, some are the seller's responsibility, some are the shipping company's responsibility, some are natural reasons. However, when the goods arrive at the buyer, the buyer may claim or even return the goods to an unknown middleman at these discrepancies. Especially if the goods are not in conformity with the contract, the Seller issues documents that appear to be in conformity with the L/C, such as changing the unclean bill of lading to the clean bill of lading through the shipping company. As a result, the middleman pays the purchase documents, and the goods arrived at the buyer were claimed or even refused to pay, resulting in great losses.

Avoiding these risks can be done in a variety of ways.

The middleman stipulates in the letter of credit that the Seller shall issue the goods inspection report or certificate signed by an internationally renowned notary or government agency.

In dealing with large quantities of goods, the middleman shall inspect the goods at the place of export by the source, supervise the shipment and issue the inspection certificate signed by the middleman.

The intermediaries try their best to buy insurance by themselves, to conclude business at CIF price to the importers, to conclude business at CFR price to the exporters, and to conclude business at CFR price to the exporters. If the above does not conform to the contract, the claim is more convenient in the local area.

The middleman should examine the bill carefully, and once the defects on the development documents should be remedied in time or settled with the seller in the validity period, and the ransom can be refused if the punishment is severe.

Try to avoid the words "The payment will be effected after the byuers have inspected the goods" on Master L/C.



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