Topic-Seven----Inspection--Insurance---Arbitration-(商检-保险与仲裁).pptVIP

Topic Seven Inspection, Insurance Arbitration (商检，保险与仲裁) Commodity Inspection Commodity inspection refers to the fact that imports and exports are inspected and surveyed to see whether their quality, weight/quantity, packing, etc, are in conformity with the stipulations set forth in business contracts. If there are any disputes between the buyer and the seller, the commodity inspection certificates issued will serve to ascertain where the trouble lies and who is to blame. ascertain: to discover with certainty, as through examination or experimentation. In international trade, export and import commodity inspections are executed by a third party generally known as surveyor. Some of the surveyors are government organs. Others are run by individuals or trade associations. In our country, the China Commodity Inspection Bureau (CCIB) (中国商品检验局) is the main institution. Insurance In international trade, the transportation of goods from the seller to the buyer is generally over a long distance and it has to go through the procedures of transit, loading and unloading, storage, etc. Undoubtedly, these goods, either for import or export, are subject to damage or loss. So it is customary to insure the goods against risks of collision, leakage, pilferage, fire and storm, etc. What’s more, they must be insured against these risks in accordance with the mode of transport used, the nature of the goods and the insurance terms stipulated in the contract. As a practice, it will make plain in a contract as to who will cover the insurance and bear the expenses. If the goods are sold on CIF terms, the seller is responsible for the insuring and the premium. For CIF transaction, the seller usually effects insurance for 110% of the insurance value against risks as per Ocean Marine Cargo Clauses (海洋运输货物保险条款) of the PICC or other companies. As for FOB or CFR terms, the buyer should arrange the insurance and bear the covering expenses. Insurance coverage