世纪商务英语 ——外贸英语实务 第二版 课件外贸英语实务4.ppt

A: There is another point I’ d like to clarify now. Your quotation is on a CIF basis. What risks do you usually cover against? B: The insurance covers All Risks for 110% of invoice value. A: Is War Risk to be covered? B: No. It’ s not necessary for the shipping line to add to the cost. Our past experience shows that All Risks gives enough protection to all our shipments to your area. A: You’ re right there. But things have changed a bit in the last few weeks. Judging from the recent situation in the Middle East, I think War Risk should be covered and included in the CIF price you quoted. B: You know additional coverage will increase the cost. A: But I think your CIF price should include adequate coverage against risks. And risks means things that may happen. B: As the seller, we have a financial interest in the goods right up to the time when payment is received. We’ ll surely cover the goods against risks liable to happen, but not all. I’ m sorry that is not workable. A: In that case, would you please quote us CFR? B: Well, there is only a slight difference between our CFR and CIF prices for the commodity, about 0.5%. A: Mm...What losses will be covered by your All Risks? B: It covers all losses occurring throughout the voyage caused by accidents at sea or land. In other words, it includes FPA, WPA and general additional risks, with special additional risks excluded. A: All right. I think I’ ll consider a CIF contract for this lot. In international trade, we usually make use of a certain trade term to define the nature of a contract. Under FOB, the buyer must be responsible for chartering ships or booking the shipping space. Under CFR, the seller is responsible for paying the cost and freight necessary to bring the goods to the port of destination. The buyer has to bear all costs and risks of loss of or damage to the goods from that point. He must give notice in advance to the buyer to enable the buyer to take marine insurance for the goods and to make preparations