Study On The Obligation Of Seller And Risk Protention In CIF Contracts

CIF terms,with the use of more than one hundred years,is one of the important terms in international trade.When two parties conclude import or export contracts in this arena, the primary concern is the choice of trade terms.However,China's actual practices of foreign trade show that most foreign-funded entrprises tend to use FOB terms.The reason lies very much in China's contemporary trading context.At present,China boasts a big power in export and often play the role of seller in foreign trade contracts.While in CIF terms,a seller is responsible for transportation and insurance.Thus many exporters assume that the use of CIF terms equal more responsibility,which is less convinient than FOB terms.Besides,in China,shipping and insurance industry is far from advanced.Thus many exporters reluctant to shoulder the burden of transportation and insurance.Nevertheless,an increasing number of shipping fraud emerged in FOB contracts,including cases of delievery of goods without prodution of bill of lading.Especially in the case of financial crisis,this compels export companies to analyse the risk aversion in a new way.And the priority is given to re-evaluating the choice of trade terms.Set in the current situation,this paper uses several methods such as method of inductive analysis,comparative analysis and empirical analysis to analyze the shipping and insurance obligations of seller or exporters in CIF contracts.Moreover,on this basis,this paper elaborates the risk,which the seller faces probability.Based on the status of the current financial crisis,this paper additionally analyze the impact of risk,causing by financial crisis.Finally in this paper,writer makes recommendations for risk prevention.