Submitted by: Submitted by net27
Views: 461
Words: 280
Pages: 2
Category: Other Topics
Date Submitted: 01/29/2011 10:42 PM
Incoterms
For doing international business, one thing that is required to be considered is “Incoterms” that are the most commonly accepted terms of sales in the international business. Greenday Company is going to export to Russia. So, we also use the incoterms to make sure the buyer will not misunderstanding. We use “Cost Insurance and Freight (CIF)” as our incoterms. CIF means the seller delivers when the goods pass the ship’s rail in the port of shipment. We will pay the cost and freight necessary to bring our goods to the port of destination. But if it has the risk of loss or damage to the goods after the time of delivery, the buyer has to responsible to pay the additional costs. For CIF, we also provide marine insurance for minimum cover, pay export customs formalities. We have some benefits if we use CIF.
First, Greenday Company can choose and manage the shipping company ourselves. From our 30 years exporting experiences, we have long term relationship with shipping company that has high standard and reliable with delivery time. So, we can get the lower cost of shipping per transaction. Moreover, we use CIF to make sure that our consumers get the goods on time by reliable shipping company without damages. Furthermore, we use CIF to help consumers to be more convenience in logistic because some of our consumers are small size of company that they aren’t have enough knowledge about logistic. So, we provide this service to them. However, our consumers can negotiate about incoterms. We can changes or adapt due to our consumers’ need such as they have their own shipping company or specialize in logistic.