I am negotiating with a buyer regarding export of goods to be shipped to the buyers country, payment term Documentary Credit (LC), trade term CIF. Which considerations do I have make?
Answer C-terms : As a seller you have an obligation to establish the contract of carriage which gives you the possibility to control the transport and the documentation. You are guaranteed a ship, airplane or other means conveyance, as agreed in the commercial contract, in the port or place of shipment. You have to pay for the main transport, under CIP and CIF you pay the insurance premium too. Usually the seller provides the shipping company with copy of the LC in order to minimize the risk of discrepancies.
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