Letter of Credit Forum

ccnpThe UCP600 article 3 indicates a document may be signed by ... or any other mechanical or electronic method of authenticationccspThe UCP600 article 3 indicates a document may be signed by ... or any other mechanical or electronic method of authenticationccvpThe UCP600 article 3 indicates a document may be signed by ... or any other mechanical or electronic method of authenticationcisa

Clearly the seller is at risk for loss prior to the ‘place’ in the destination country where the cargo is handed over so they would have the insurable interest prior to that point and it would aca certification be prudent – but not compulsory – for the seller to carry cargo insurance. In practice, it is often the buyer – on receipt of the goods – who will first detect cargo loss or damage. In DDU contracts, the commonest method of payment is apc certification an open account i.e. in a contract prefixed “D”, the seller delivers cargo (as opposed to a C prefixed contract which is the sale of documents – hence its close association to the credit). Accordingly, the buyer holds payment over until delivery is achieved. Thus, in the case of cargo ccda loss or damage, it is commonest (but not obligatory) for the buyer to short-pay the seller to compensate for any loss. The buyer in such cases having no risk whether the cargo is insured or not and the seller claiming for the loss. (All of this does not mean that we could not have a credit with a DDU sale, but it wouldn't be appropriate: I can unscrew ccna security the wires from a plug with a fish-knife that does not make the screwdriver less appropriate).

Hello

DDU “airport” is difficult in practice as DDU (unless modified in the sales agreement) would end ‘on the delivering device' at the named place i.e. on the aircraft, on the tarmac.

It is a difficult point of handover as it is unlikely that the buyer could access the cargo at that point. The fact that the aircraft has landed is no proof that the cargo is on the aircraft and so on. So, with DDU, the recommended point of handover is always a ‘place’ where the buyer and/or their representative can sight the cargo – being a point beyond any restricted area like an airport or a railhead (in seafreight, the terms DES and DEQ are there so as to avoid this confusion in respect of a seaport)

Unless mandated by law – or agreed in the sales contract – cargo insurance is not obligatory so there need not be insurance in place in a DDU contract.

Clearly the seller is at risk for loss prior to the ‘place’ in the destination country where the cargo is handed over so they would have the insurable interest prior to that point and it would be prudent – but not compulsory – for the seller to carry cargo insurance.

In practice, it is often the buyer – on receipt of the goods – who will first detect cargo loss or damage. In DDU contracts, the commonest method of payment is an open account i.e. in a contract prefixed “D”, the seller delivers cargo (as opposed to a C prefixed contract which is the sale of documents – hence its close association to the credit). Accordingly, the buyer holds payment over until delivery is achieved. Thus, in the case of cargo loss or damage, it is commonest (but not obligatory) for the buyer to short-pay the seller to compensate for any loss. The buyer in such cases having no risk whether the cargo is insured or not and the seller claiming for the loss. (All of this does not mean that we could not have a credit with a  DDU sale, but it wouldn't be appropriate: I can unscrew the wires from a plug with a fish-knife that does not make the screwdriver less appropriate).

Still, I am sure others can add to this...

cheers

phill doran

"...in armour bright, the merchant men..."