Business Profile（内容概览）

Delivery

The delivery of goods means that the seller delivers the contracted goods to the buyer at the agreed time, place and in the agreed manner. When negotiating a transaction, the buyer and the seller should reach an agreement on the time of the delivery, the ports of shipment and destination, the methods of shipment and shipping documentation. The details should be clearly specified in the contract. Clear stipulation of the shipment clause is an important condition for the smooth execution of the contract.

Date of delivery

The date of delivery is the date by which the seller must deliver the goods at an agreed place by the agreed method. If overseas, the place is likely to be a port from which the seller must arrange onward transport to the final destination after clearing customs. NOTE: Although shipment usually refers to shipment by sea, it is possible that shipment of goods may be made by road, rail, river or canal. Shipment refers to the transport of goods from the seller to the buyer.

In deciding the date for shipment, considerations must be given to the following: 

(1) The date when the relevant L/C is opened. Normally, the L/C should reach the seller at least 15 days before the date of shipment to permit the seller sufficient time to check the L/C and to deliver the goods to the port.

(2) The supply of goods. Production time must be considered because there is no point in agreeing an early shipment date if the goods cannot be produced and delivered on time. 

(3) Transportation. Consideration should be given to the method of shipment (sea, train, canal, road or air), the length of time required for the journey and the conditions at the port (station, airport) of embarkation. Extra time may be needed if the means of transport is not always available or if the port is not always in operation.

(4) The type of goods. Some goods are perishable or seasonal so they need to get to the market quickly. Sometimes when marine transport is not quick enough, air transport can be used.

The parties need to negotiate to find a date that is acceptable for both parties. Once the date is agreed, the parties are obliged to fulfill their obligations before the agreed time has expired, or they might face claims.

Ways of stipulating the date of delivery:

Stipulate a definite date of delivery

State a definite time

e.g. shipment at or before the end of June shipment on or before September 15th shipment not later than July 31st State a definite period of time e.g. delivery or shipment during May 2009 shipment during June 2009 shipment during second half of April and first half of May Stipulate that the goods will be shipped without a definite date e.g. shipment within 15 days after receipt of remittance shipment by first available vessel shipment within 10 days after receipt of the L/C immediate shipment shipment as soon as possible prompt shipment

Ports of shipment and destination 

The port of shipment is the port from which goods are shipped. The port of destination is the port at which goods arrive. Goods will then be discharged for onward transport to the final destination. Both ports should be specified in the contract.

Normally, one specific port of shipment, and one specific port of destination are stipulated, but sometimes two or more of each are stated. In cases where a decision cannot be made, several alternatives should be listed, such as "one port out of London/ Hamburg/Rotterdam as the port of destination". Alternatively, a general term is used such as "EMP (European Main Port)"or "China Port". It is always better to be as specific as possible.

The following points are important when stipulating the port of shipment in a contract:

(1) The port of shipment should be close to where the goods are manufactured.

(2) Any specific handling requirements.

The port of destination is usually proposed and determined by the buyer so that it is convenient for reselling the goods.  Goods for inland destinations will be shipped to the nearest port and then onward transport will be arranged. Responsibility for this must be decided and clearly indicated in the contract.

Partial shipment and transshipment

Partial shipment means shipping the commodity under one contract in more than one lot. It should be defined in the contract whether "partial shipment is (or is not) allowed". If it is allowed, the time and quantity of each shipment should be specified, for example, "shipment during March to June in four equal monthly lots". The seller should strictly follow the regulations; otherwise, the buyer has the right to reject the goods. Transshipment refers to a situation where there is no direct ship between the port of shipment and the port of destination, or no suitable ships available at that particular period. The goods will have to be transferred from one ship to another at an intermediate port. The contract must also specify whether "Transshipment is (or is not) allowed". In addition, it should also be indicated who pays the cost of transshipment.

Tips for Delivery Terms

1. Starting from the date of our order confirmation, the term of delivery will begin only after all issues relating to the execution of the contract have been clarified and any other conditions to be  met by Customer have been complied with; mutatis mutandis the same holds true for delivery deadlines. Deliveries in advance of set deadlines and partial deliveries shall be admissible unless this is not acceptable to Customer. The date of delivery shall be the day on which a consignment is reported ready for shipment or, alternatively, the day on which it is shipped. In the absence of agreements and contractual specifications to the contrary, any delivery schedules quoted by us shall not be binding.

2. Without prejudice to our rights relating to any delay in performance on the part of Customer, the dates and terms named in agreed delivery schedules shall be deferred and/or extended for as long as Customer fails to fulfill its obligations. In the event of Customer failing to accept delivery or culpably failing to fulfill any obligation to cooperate, we shall be entitled to claim compensation for any resultant loss including unscheduled expenditures. In such instances, liability for any risk of accidental destruction or damage of the consignment in question shall pass to Customer from the point in time at which Customer fails to accept delivery.

3. In the event of any default on our part, Customer may grant a reasonable respite, expressly stating at the same time that acceptance of the goods or services to be delivered will be rejected after the expiry of said term, after which Customer shall be entitled to withdraw from the contract.

4. At our request, Customer shall be obligated to state within a reasonable term whether it is  intended to withdraw from the contract because of the delay in delivery and/or to claim damages in lieu of performance, or, alternatively, to insist on delivery.