A Study On The Applicability Of FCR In The Carriage Of Sea Goods Under Rotterdam Rules

With the complex environment of international trade and the development of marine cargo transportation, we couldn’t only use Ocean Bill of lading (B/L) but also Forwarder’s Cargo Receipt (FCR). It is always favored by the Buyer in international trade. Comparing with other documents and receipts, FCR tends to basing on the trade using price terms like FOB、FCA、FAS、EXW and so on. FCR is similar to the bill of lading in format. It is said by UN trade documents Styling that FCR is a kind of non-negotiable receipt sent by freight forwarder and a receipt under the actual control of the consignee.FCR cannot be any document to the parties but be treated as a cargo receipt issued by the carrier in practices. When using FCR in trade, the seller will lose controls of goods when the cargo is shifted to the freight forwarder and the seller gets FCR. Once the buyer’s bank refuse to pay the seller, the seller is easy to fall into the dilemma of the lost of money and cargo. Usually FCR appears to open letters of credit applied by a higher degree of international credibility of enterprise in case of this situation. With banks’credits the scope of FCR is gradually expanding with the annual increasing Maritime trade. In order to decrease the risk that the buyer is losing control of the money authority and goods transport, In2008the United Nations Commission on International Trade Law introduced the "United Nations Convention on the whole or part of the trade contract of carriage of goods by sea.", named Rotterdam Rules. The creations on "Goods Control" system, the carrier’s liability system and "no single delivery of goods" system and other systems in Rotterdam Rules makes the interests of all parties balance in the trade using FCR as the preliminary evidence of Transportation Contract. At the same time, the statement of development of delivery of goods without document inspires to find methods for FCR to control risks. Unfortunately, Rotterdam Rules only is accepted by few countries based on its acceptance and operability in the international community. It needs test in practices. As to China, Maritime based on Hague Rules, the Hamburg Rules cannot really protect the trade interests of the parties in trade because existing trade environment. With the stable growth of maritime trade more and more companies accept FCR as an important role in transport. Facing with the problem of sharing of risks and liabilities between parties, many exporters in China follow the letters of credit and non-credit foreign exchange settlement ways to do the risk aversion under the guidance of the Rotterdam Rules. The Rules is support to the development of FCR.With the help of relationship based on interests between the parties under issuing FCR in maritime trade, body parts with four chapters are used to analyze the function of FCR. Charter1is about the basic description of FCR. This charter specially tells us the relationship between FCR and B/L; Charter2analyzes the influences of Rotterdam Rules on all the documents and receipts; Charter3tells us the functional analysis on FCR and attribution of responsibility in each party; Charter4is related to the influence of using FCR in building of Marine Transportation Contract; Charter5is about the coping strategies of Chinese exporter to FCR practice with the influence of international business.