Customs Regulatory Compliance Management - Myassignmenthelp.Com

Questions: 1. Can the buyer legally demand a contractual arrival date from the seller? 2. Whose legal problem is it that the goods have not arrived in New York the sellers or the buyers? Why? 3. If the ship had not sunk but had been re-routed to Mexico, which caused delays, who legally pay for those costs? Who is legally at risk? 4. As the ship did sink, is the seller at liberty to accommodate this unfortunate event by sending replacement cargo on another vessel? Answers: Answer 1: According to the study, it can be argued that buyer has the right to legally ask for the actual arrival date as per contract from the seller. It is because if the buyer is not aware of the arrival date then there are complete changes that buyer might miss the consignment sent. As per Cost, Insurance and Freight (CIF) Incoterm 2010, buyer pertain the right to inquire about the approximate arrival date so that buyer could collect the consignment within the time period and things dont get perished. In the LC of payment, the terms and conditions are specified and the time period is mentioned as to when the cargo will leave the sellers port and in how many days will it reach to buyers port (Borad, 2017). In the case of certain disturbance or occurring of circumstances seller could ask for the extension from the buyer and this extension officially gets confirmed from the banks of buyer and seller. Also after arrival, it is the duty of the buyer to pay the extra charges and in the case of c ertain issues occurring after arrival, the buyer will be responsible for it as the seller had completed their part. Also, there exists the provision that dock people contact the buyer informing them about the parcel they have received but in the case of any discrepancies then such written contracts prove to be the evidence. In the situation of non-compliance and breach of contract; buyer is free to claim over the seller, as proof of contractual arrival date is with the buyer and they can ask for the reason of delay. While enrooting if certain problems are been faced then both the seller and buyer has the right to be informed about the consignment been imported and exported from the other end. For instance, while performing online shopping on the ordering of any product along with the payment details there arrives the dispatch and probable arrival date as well so that buyer could schedule accordingly and payments do not go in vain. If the concerned material is not received then buyer s consist the right to complain the seller about false delivery and ask for a replacement, refund or compensation. Appropriate and relevant information needs to be provided to the buyer in order to avoid confusion and accomplish the contract (Azeem, 2016). Answer 2: If the goods do not arrive at destination then it is sellers responsibility. Till the consignment is not reached to the buyers port the responsibility lies with seller only. In the case of any delay and damage caused to the buyers consignment then the seller will get in the problem and that will be the concerned person to answer in such situation. Considering the problem where the cargo consignment does not arrive in New York the one who will be legally bound for this problem is the seller (Searates, 2017). It is mentioned in the terms and conditions of the CIF contract the moment consignment reaches buyers port there starts the buyers responsibility. Before that, the whole and sole responsibility lies in the hands of seller only. Also, in certain situations reasons may also be considered whether actually, the problem was the seller part or buyer is sought of involved in it. The third situation that follows could also be the involvement of Shipman may be the mistake was on the part o f Shipman and not of the either party (Investopedia, 2017). Answer 3: Considering the case of Titanic in todays scenario carrying the cargo on the CIF incoterm 2010, the problem of delay had occurred. The case demonstrates that if rather than sinking the ship was rerouted causing a delay in shipment procedure then as discussed earlier seller will be legally liable for this and have to pay the penalty. The seller will be at the risk as that is the only person who is answerable to the consignment before the due date of reaching (Law and sea, 2017). The buyer responsibility starts from the moment the cargo has touched the port but before that seller has to bear the complaint. Also considering the terms and general procedure along with certain assumptions the Shipman should also be contacted and the reason for the delay can be marked. In case if the delay has not affected the buyer than seller may not be at the risk and they need not pay the legal costs. But, if due to delay buyer has faced the problem and loss occur than the seller is liable to pay the le gal cost for that and this will be the risky situation for the seller as the individual need to answer for the delay. Another point that could also be considered is to analyse the reason of such loss caused if the reason that comes up is natural calamity than thought could be made whether to charge a penalty on the seller or not. The opportunity of being heard should be paid emphasis (Idais, 2013). Answer 4: In case the ship sinks then there arise various situations that need to be considered before sending the replacement cargo in another vessel. As per CIF Incoterm terms and conditions and letter or credit terms this situation can be resolved in a distinct manner (Manaadiar, 2014). When the ship starts sinking and time being the cargo was secured and sent to another port then it is the responsibility of shipment to send the cargo to the relevant buyer as per the terms and conditions discussed between seller and shipment. But if due to the adverse situation the cargo was not saved aside and loss of material took place then instead of sending another cargo the insured amount will be sent to buyer against that cargo. Also, there arises the situation where later on the cargo is found intact and the material inside the cargo is non-perishable, in such situation also the insured amount is paid to the buyer and negotiation upon the survived cargo is made between the shipment and buyer at the diminishing rate as the newness of cargo got deprived (Bergami, 2010). References Azeem. Z. (2016). Rights of buyer in CIF contracts. Viewed on 9th August 2017. https://fp.brecorder.com/2016/02/2016022519777/. Bergami. R. (2010). The ships rail is dead: incoterms 2010. Viewed on 9th August 2010. https://www.shippingsolutions.com/blog/the-ships-rail-is-dead-incoterms-2010. Borad. S.B. (2017). Meaning of letter of credit. Viewed on 8th August 2017. https://efinancemanagement.com/sources-of-finance/lc-payment-terms. Idais, T. (2013). CIF contracts in international sales of goods. Viewed on 8th August 2017. https://www.tamimi.com/en/magazine/law-update/section-5/july-august-2/cif-contracts-in-international-sales-of-goods.html. Investopedia. (2017). Cost, insurance and freight- CIF. Viewed on 8th August 2017. https://www.investopedia.com/terms/c/cif.asp. Law and sea. (2017). Laytime and demurrage- charterparty and sale contract. Viewed on 9thAugust 2017. https://www.lawandsea.net/COG/COG_SaleContracts_Demurrage.html. Manaadiar. H. (2014). Responsibility of buyer and seller in the case of cargo damage. Viewed on 8thAugust 2017. https://shippingandfreightresource.com/responsibility-buyer-seller-case-cargo-damage/. Searates. (2017). Incoterms 2010: ICC official rules for the interpretation of trade terms. Viewed on 8thAugust 2017. https://www.searates.com/reference/incoterms/cif/.