Letters Of Credit Under Cif Contract, The Buyer Of Certain Risk Research

CIF term used in international trade means that seller make a contract with carrier and buyer is responsible for cargo transportation risk .So, buyer may escape demurrage trouble, though, increase the risk of payment through letter of credit. CIF term also brings to the difficulty of carrier identification and the dispute of B/L jurisdiction effect. U.N. convention on international cargo sale contract allows for the parties stipulate time of risk shift. Once the stipulation is improper, contract' terms may conflict with CIF term, and it is unclear which to burden the risk of transportation. Finally, buyer' difficulty to claim adds. However, under the cover of buyer' market, after the parties redistribute the burden of the risk, buyer may acquire with the benefit beyond the contract, obtaining the benefit of contract at the same time. So, it is reasonable for buyer to choose CIF contract.CIF term has fixed meaning .Some CIF terms have tiny distinction, but they basically have the same meaning. If some terms in the trading contract are inconsistent with CIF, it shall bring to the questions whether the contract is still CIF or not, whether buyer or seller shall burden the risk, moreover, whether the insurance contract effects or not.The pattern of payment through the letter of credit means buyer burdens the risk that the letter of credit is opened ,fraud risk of the letter of credit and even opening bank' fault liability that examines documents. The letter of credit itself exists defect. CIF term used in the letter of credit makes buyer' risk increase, because buyer do not control cargo transportation and all of the documents under the letter of credit may are forged. But justice relief criterion of each country is difference from each other , and the end cannot be expected.When cargo loss or damages occurs, the buyer needs know who is the carrier. It is NVOCC B/L and B/L that agent issues that are identified difficult. Short time bar and specific time bar intermit in B/L system easily results in time bar invalid. In an addition, he shall encounter the dispute of the effect of B/L jurisdiction. Author expresses his own opinion.Although CIF contract brings many disadvantages to buyer, buyer same gets tobenefit. When contingency occurs, buyer can obtain double benefit.