List the the 2 main resposibilities for the buyer under cfr

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Reference no: EM133353797

Case Study: You are a freight forwarder who has received a call from a Canadian export customer. This customer is negotiating a sales contract for a bulk shipment of beans to a large buyer (food wholesaler) located in France. This would be their first order with this company. The buyer is prepared to accept their best CFR price to the port of Le Havre, France of $40,000.00 CAD. The buyer has requested that the seller issue a draft for the full invoice amount upon shipment with terms 30 days sight, and send it to his bank. The buyer also requests that the shipment documents (3/3 set bill of lading, certificate of origin, invoice and packing list) be sent directly to his office within 5 business days from the on board date. Your customer (the seller) is unsure whether to agree to all of these terms and seeks your advice.

QUESTION 1: If the product was damaged by salt water while shipping to France which party (buyer or seller) would have risk?

QUESTION 2: Would you recommend that your customer proceed with this transaction using the incoterm that the buyer is requesting? Support your opinion and/or suggest alternatives to your customer. Be specific.

QUESTION 3: If the seller sold this shipment CIF insted of CFR what is the minimum insurable value ( amount) required for this shipment as per Incoterms 2022? Show your calculation and discuss what are the changes to the Incoterms 2020 rules regarding insurance.( See the document posted under Incoterms, related to changes in Insurance).

QUESTION 4: List the the 2 main resposibilities for the Buyer under CFR incoterm

Reference no: EM133353797

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