Is it possible to use CIF incoterms with air shipments?

Incoterms 2010 is the newest set of rules, which regulates international trade terms. 

There are 11 different trade terms defined in Incoterms 2010 rules. 

Each trade term defined in incoterms 2010 rule have a unique characteristics. 

As a result an exporter or importer must understand the differences between trade terms in detail.

What does CIF trade terms mean according to Incoterms 2010 rules and what are the key characteristics of CIF incoterms?

CIF means "Cost, Insurance and Freight" according to Incoterms 2010 rules. “Cost, Insurance and Freight” means that the exporter delivers the goods on board the vessel at the port of loading as determined by the sales contract.

Alternatively exporter can procures the goods already shipped on board a vessel as per CIF trade terms. 

This is a common practice in crude oil market.

What are the risks of open account payment for importers?

Open account payment is the less risky payment option for importers. 

Generally, under open account terms, importers pay the order amount after they have received the goods.

As a result there is not much thing to worry about for the importers when working with an open account payment term.

Nevertheless on this article I will try to explain you possible risks of an open account payment term for the importers.

What are the risks of open account payment for exporters?

Companies do export and import business in order to make money.

But just like any other businesses, international trade have some risks, the considerable amount of which lays beneath the financial side of the operations. 

Related Pages: What are the risks of open account payment for importers?

An exporter has to bear significant amount of risks when trying to complete an export operation via an open account payment, as the importer only pays the amount of the goods after the goods have been shipped and in most cases after they have been received by the importer.

Today I would like to explain the risks associated with open account payment term for exporters.

What sort of information should not be mentioned on a packing list?

So far on my website, I have written following articles about the packing lists: "How to create an export packing list?" and "Should the container number be mentioned on the packing list?"

I suppose I will be keep writing in different aspects of the packing list, as it is a very important export and import document.

Today I would like to explain you what kind of information should not be covered under the packing list and why.

What sort of information should not be mentioned on a packing list?

Packing list is not a financial document. 

It is used by logistics personnel, who should have no connection with the financial information about the goods.

Additionally, sometimes packing list may be delivered to the final customer as is, without checked by the importer, who is the intermediary company between the exporter and the final buyer. 

How to create an export packing list?

A packing list is a trade document that identifies details about the contents of a package.

A packing list is especially helpful in international trade transactions for confirming the number of items during the transportation stages.

Packing list is a shipping document, which is widely used in export and import transactions.

Combined with the commercial invoice, certificate of origin and transport documents, packing list is one of the core documents that needs to be created in an international trade operation.