Selling FOB or CFR? Don't forget about protecting your interests!

摘要

NEW Zealand exporters selling under FOB or CFR/C&F terms of sale should be aware that although under these Incoterms the insurance is to be arranged by the buyer, as the seller, they still have an insur-able interest in the goods until payment is received. So what are the risks of exporting under these terms of sale, if payment has not been received? Your customer could fail or refuse to accept the shipping documents; Your customer could fail or refuse to accept the goods because of an error or omission you have made in the contract of sale; Your customer could be unable to obtain authority or a licence to import the goods. You could decide to suspend the sale whilst the goods are in transit to safeguard your interests.