Study On The Right Of Control Under The Conditions Of FOB

With adoption of China’s reform and opening-up policy, China’s quantum of foreign trade increases with years. But with respect to export trade, the FOB terms which has been used by contracting parties accounts for approximately 80 percent. Under the FOB terms, the buyer has to book shipping space and pay the freight. The seller is not the party to the contract and he shall not be entitled to the carrier to give the instructions in respect of the goods. Therefore, the seller lost the rights of the actual control on goods which have been delivered。This led to a series of problems, such as trade fraud, delivery of goods without bill of lading, Lack of right to appeal. The Rotterdam rules as the International Conventions for the carriage of goods by sea, firstly established the special chapter of right of control on goods in the level of international treaties and supply a gap of legislation. This paper which is divided into four parts discusses the right of control of the goods in light of Rotterdam Rules.In the first part of this paper, the author briefly describes the FOB Incoterm, and studies the legal status of the seller under FOB terms and the absence of legislation, and systematically analyzes the risks of the seller under FOB terms.Firstly, the second part of this paper introduces the legislative status of the right of control. Then the article briefly introduces the right of control in the Rotterdam rules, including the conception and the extent of the right of control, the identity of the controlling party, the legal nature and the limit of the right of control. Finally, it summarizes the significance of the right of control in the International Conventions of the carriage of goods by sea with the comparison of the Right of Control and the Right of Stoppage in Transit.The third part is the key point of this paper, that is, the legal protection of the sellers under FOB terms from the right of control. In the "Rotterdam Rules", the right of control is not limited to Chapter 10, but together with other related systems.The third part is the key point of this paper, that is, the legal protection of the sellers under FOB terms from the right of control. In the "Rotterdam Rules", the right of control is not limited to Chapter 10, but together with other related system. Firstly, Rotterdam rules created the concept of "the documentary shipper" in order to settle down the problem of FOB seller’s legal status. And it regulated that the documentary shipper can turn to controlling party taking right of control of the goods in some satisfied conditions. Secondly, it is divided into two problems to discuss the application of the right of control of the FOB sellers on the different types of transport documents in this paper. The first question is who are the controlling party and transfer of the right of control. In this question, this article analyzes whether the FOB seller is entitled to serve as the controlling party under the various documents. The second question is the requirements of the exercise of the right of control and the delivery of the goods under the different documents. In this question, this article analyzes whether the FOB seller would lost goods for this reason. Finally, this paper studies the solution of delivery of goods without bill of lading from the right of control.The fourth part describes the legislative status of the right of control in China. The author provides advices on the improvement of the establishment of related systems in our country by analyzing the right of control in "Rotterdam rules".