the contract of insurance

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 This liability is generally cancelled when the goods are: *Exported or deemed exported *Withdrawn for supplies to a vessel or aircraft in international traffic *Destroyed under Customs supervision *Withdrawn for consumption domestically after payment of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. [...]... 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... intensive manufacturing centers that involve the import of raw materials or components and the export of factory products - The world's first Free Trade Zone was established in Shannon, CountryClare , Shannon Free Zone - This was an attempt by the Irish Government to promote employment within a rural area, make use of a small regional airport and generate revenue for the Irish economy - It was hugely successful,... transportation, and are an integral part of the global supply chain - Export Processing Zone (EPZ) EPZ A free trade zone (FTZ) or export processing zone (EPZ), also called foreigntrade 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... 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... 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... area, make use of a small regional airport and generate revenue for the Irish economy - It was hugely successful, and is still in operation 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,... 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 . 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 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. 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,