ABSTRACT
Incoterms 2000 clearly spells out the obligations of the buyer and seller as in Cost Insurance and Freight (CIF) transactions. Intermediaries should not attempt to trade in CIF or cost and freight (CFR) transactions until they have experience in and mastered trading in Free on Board (FOB) transactions. On receipt of the suppliers Bill of Lading (BOL) and other required documents the primary intermediary agent (PIA) replaces the suppliers invoice with their own, incorporating commissions on the seller's invoice that will be forwarded to the end buyer. The duties of the seller are to: ship the goods contained in the contract, obtain insurance at current rates for the benefit of the buyer. The duties of the buyer are to: pay all import customs, taxes and tariffs and pay for all expenses in obtaining statutory importation documents. If a supplier provides the PIA with an ASWP quote then the PIA must ask the supplier to stipulate the freight rate.
