Identifying Maritime Fraud With Knowledge

　　 C.I.F It is the abbreviation of English Cost Insurance And Freight, just like FOB. International Trade The most commonly used price term. In China, some people call this term " CIF price " The author believes that this view needs improvement. This kind of address is easy to misunderstand that the risk of loss of goods is transferred to the buyer by the seller when the port is discharged.

The International Chamber of Commerce (ICC) has stipulated in its 460th publication, INCOTERMS 1990, that the seller must be responsible for chartering a ship, booking the cargo, obtaining CleanB/L after loading the goods, concluding the cargo insurance contract, paying the premium, obtaining the insurance certificate, and handling the export clearance of the goods at the expense of the risk and risk. On the face of it, the buyer of C.I.F is waiting to pick up the goods at the port of destination except for the redemption bill.

But careful analysis, it is not difficult to find the mystery. In INCOTERMS1 990, the seller must enter into a contract of carriage on the usual terms, and the "usual condition" is a fact. For sellers, the "usual condition" is low freight. Therefore, he can ignore the reputation of the shipowner and the condition of the ship, so long as the goods can be loaded onto the ship, everything will be fine. The Seller shall only cover insurance against the minimum liability in the insurance clause, such as FPA in PICC cargo insurance. As for the additional war risk, strike risk, etc., the buyer must inform the seller and bear the cost. To be honest, it is possible for C.I.F to deal with several pieces of paper without paying attention to Seller's transactions with good reputation. Many international fraudsters, using the lax of buyers, drill holes in the way of C.I.F trade, and cheat everywhere.

　 Document fraud

In 1990, Bangladesh was hit by floods. The country signed a contract of sale of 8 kiloton rice with Shanghai company of China Grain and oil import and export company, and the C.I.F price was about 1 million 700 thousand dollars. After the letter of credit has been issued, the Hong Kong businessmen will complete the complete set of beautifully made documents in a bank of Japan. The bill of lading will be issued by a liner company in Brazil and the name of the vessel is "ralida". However, the "ralida" has not been discharged to Bangladesh. After investigation, it was found that the ship was still operating in Europe on the day of signature. As a result, the Bangladesh government is self confessed - paying 1 million 700 thousand dollars plus a large legal fee.

Some people would like to ask if banks do not have to go through the examination when they settle their foreign exchange. The International Chamber of Commerce UCP400 stipulates that when banks examine documents, they must lend money as long as the surface of the documents is identical. In other words, banks are not liable for file fraud. In Britain, banks are not entitled to refuse to pay even if they know that documents are fictitious. The provision derives from the 1983 United city Merchants V.Royal Bank of Canada. At that time, in the case, when the beneficiary went to the bank to settle the foreign exchange, the bank found that the actual shipment date was later than the shipment period stipulated in the letter of credit and therefore refused to pay. But on the second day, when the same document was negotiated, it was found that the date of the bill of lading was in line with the shipment date of L/C. The bank confirmed the refusal of payment on the grounds of document fraud, and the two sides immediately went to court. Aristocrats think there are two possibilities in this case: 1. when typing, the date is mistaken; 2., the captain is wrong. The aristocracy finally decided that unless the bank could prove fraudulent and fraudulent, the bank had no right to refuse to pay.

This case is extremely detrimental to combating fraud. However, from another point of view, noble courts are understandable. The formation of financial centers is related to the interest of banks. If banks refuse to pay at all times, it is not conducive to financial stability. {page_break}

　 Shipowners' fraud

After the seller has loaded the goods on board, the risk of the goods is transferred to the buyer from the side of the ship. If shipowners are seen to be ungrateful, buyers are likely to face second kinds of fraud - shipowners' fraud.

Sometimes, the buyer of the C.I.F will suddenly receive instructions from the shipowner to ask the buyer to pay a sum of money for fuel supply, otherwise he will sell the ship to the Middle East and sell the goods at a low price. In such a situation, the buyer is in a dilemma. If given, he is afraid of a bottomless pit. If he does not give it and fears that the shipowner will become angry and angry, he will sell the goods and lose everything. What is more, some shipowners disappeared after loading their cargo in Hong Kong. According to ICC, 4 shipments disappeared in Lebanon in the middle of the month. Most of the cargo ships are old ships, which have been dismantled or renamed after they have been sold. Now, most of the shipping companies are single shipping companies, and bankruptcy is without any worries.

　 Take preventive measures

Interpol is helpless at all kinds of fraud. In order to take precautions against this problem, I believe that in today's rather sluggish international trade, such fraud can only be prevented and prevented.

First of all, before doing business, investigate the seller's credit. Otherwise, when the contract is concluded, the buyer is basically led to death.

Secondly, if the seller fails to do business with the first-class credit seller, the buyer will try every means to control the ship. Under C.I.F, the buyer has no option on nationality, age and condition of the ship. In other words, the buyer's fight for F.O.B is extremely beneficial to prevent fraud. Because the most important thing is the bill of lading. F.O.B, the buyer can contact the shipowner at any time to understand the ship's dynamics, and can apply for a prohibition order (Injunction) to prohibit fraudsters to settle foreign exchange or to prohibit bank payment before the cheater's settlement. Furthermore, when the buyer is chartering a ship, it is easy to understand shipowner's creditworthiness and effectively prevent shipowners from cheating.

Third, when a contract is concluded at the price of C.I.F, the buyer can guarantee the arrival of the goods or the time required for the settlement of the ship after the ship has been opened, but the contract is no longer a true C.I.F contract.

As a business person, you can only understand foreign trade or shipping only. You may miss a million. The real high level business people can always take advantage of various trade terms and try to avoid all kinds of loopholes. The choice of C.I.F and F.O.B is the best proof. If we want to remain invincible in the difficult and risky industry of international trade, it is also important to attach importance to the collection of information and intelligence.