the contract of insurance

The responsibilities of seller:- The seller must obtain, as its own expense, cargo insurance complying at leastwith the minimum cover provided by Clauses C of the Institute Cargo Clauses

THE CONTRACT

OF INSURANCE

The responsibilities of seller:

- The seller must obtain, as its own expense, cargo insurance complying at leastwith the minimum cover provided by Clauses (C) of the Institute Cargo Clauses ( LMA/IUA) or any similar clauses

- The insurance shall be contracted with underwriters or insurance company of good repute and entitle the buyer, or any other person having an insurable interest in the goods to claim directly from the insurer

The responsibilities of seller

(cont)

- When required by the buyer, the seller shall, subject to the buyer providing any necessary information requested by the seller, provide at the buyer’s expense any additional cover

- If procurable, such as cover as provided by Clauses (A) or (B) of the Institute Cargo Clauses (LMA/IUA) or any similar clauses and/or cover complying with the Institute War Clauses and/or Institute Strikes Clauses (LMA/IUA) or any similar Clauses

- The insurance shall cover, at a minimum, the price provided in the contract plus 10% (i.e 110%) and shall be in the currency of the contract

- The insurance shall cover the goods from the pointof delivery set out in A4 and A5 to

at least the named port of destination

The responsibilities of seller

(cont)

- The seller must provided the buyer with the insurance policy or other evidence of

insurance cover

- Moreover, the seller must provide the

buyer, at the buyer’s request, risk, and

expense (if any), with information that the buyer needs to procure any additional

insurance

The responsibilities of seller

(cont)

The responsibilities of the

Buyer:

- The buyer has no obligation to the seller

to make a contract of insurance However, the buyer must provide the seller, upon

request, with any information necessary for the seller to procure any additional

insurance requested by the buyer (as

anvisagezd in A3b)

Bonded Warehouse

Bonded Warehouse

- A bonded warehouse is a building or other

secured area in which dutiable goods may be stored, manipulated, or undergo

manufacturing operations without payment

of duty.

- It may be managed by the state or by

private enterprise In the latter case acustoms bond must be posted with the government

- This system exists in all developed

countries of the world.

Bonded Warehouse (cont)

- Upon entry of goods into the warehouse, the importer and warehouse proprietor incur liability under a bond This liability is

generally cancelled when the goods are:

*Exported or deemed exported

*Withdrawn for supplies to a vessel or

aircraft in international traffic

*Destroyed under Customs supervision

*Withdrawn for consumption

domestically after payment of duty

Bonded Warehouse (cont)

- While the goods are in the bonded

warehouse, they may, under supervision by the customs authority, be manipulated by cleaning, sorting, repacking, or otherwise changing their condition by processes that

do not amount to manufacturing

Bonded Warehouse (cont)

- After manipulation, and within the

warehousing period, the goods may be

exported without the payment of duty, or they may be withdrawn for consumption

upon payment of duty at the rate applicable

to the goods in their manipulated condition

at the time of withdrawal

Bonded Warehouse (cont)

- In the United States, goods may remain in the bonded warehouse up to five years from the date of importation

- Bonded warehouses provide specialized storage services such as deep freeze or bulk liquid storage, commodity processing, and coordination with transportation, and are an integral part of the global supply chain

Export Processing Zone (EPZ)

- A free trade zone (FTZ) or export

processing zone (EPZ), also called foreign-trade zone, formerly free port is an area

within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs

authorities

- The basic objectives of EPZs are to enhance foreign exchange earnings, develop

export-oriented industries and to generate

employment opportunities

EPZ (cont)

- Only when the goods are moved to

consumers within the country in which the zone is located do they become subject to the prevailing custom duties

- Free-trade zones are organized around major seaports, international airports, and national frontiers - areas with many

geographic advantages for trade

- It is a region where a group of countries has agreed to reduce or eliminate trade

barriers

EPZ (cont)

manufacturing centers that involve the import

of raw materials or components and the export

of factory products

in Shannon, CountryClare , Shannon Free Zone.

promote employment within a rural area, make use

of a small regional airport and generate revenue for the Irish economy.

today.

EPZ (cont)

- The number of worldwide free-trade zones proliferated in the late 20th century

- In the United States free-trade zones were first authorized in 1934

- Most FTZs located in developing

country: Brazil, Colombia, India, Indonesia,

El Salvador, China, Philippines, Malaysia, Bangladesh, Pakistan, Mexico, Costa Rica, Honduras, Guatemala, Kenya, Sri Lanka,and Madagascar have EPZ programs

EPZ (cont)

- In 1997, 93 countries

had set up export

processing zones

employing 22.5 million

people

- In 1999, there were 43

million people working in

about 3000 FTZs spanning

116 countries producing cl

othes, shoes, sneakers,

electronics and toys

EPZ (cont)

- Corporations setting up in a zone may be given tax breaks as an incentive.

- Usually, these zones are set up in

underdeveloped parts of the host country, the rationale is that the zones will attract

employers and thus reduce poverty and

unemployment, and stimulate the area's

economy.

- These zones are often used by

multinational corporations to set up factories

to produce goods