I 



THE INDIA RUBBER WORLD 



Standard American Export Practice. 



As THE CERTAIN MEANS of insuring uiimistakalilc clarity in 

 terms and conditions of sale, nine of the greatest commer- 

 cial organizations of the United States interested in foreign 

 trade have in conference adopted a simplihed standard Amer- 

 ican export practice that should greatly facilitate and promote 

 the foreign business of this country. The organizations party 

 to the program are the National Foreign Trade Council, Cham- 

 ber of Commerce of the United States of America, National 

 Association of Manufacturers, American Manufacturers' Export 

 Association, Philadelphia Commercial Museum, American Ex- 

 porters" and Importers' Association, Chamber of Commerce of 

 the State of New York, New York Produce Exchange and New 

 York Merchants' Association. The program itself consists of 

 a statement of definitions of the abbreviated forms of price 

 quotations in more or less common and general use in the 

 export trade, which manufacturers and exporters are urged to 

 use habitually as far as possible to the exclusion of other forms 

 synonymous or otherwise ; also the recommendation that all 

 use of abbreviated forms be abandoned and that the terms be 

 written out in full. 



Manufacturers and exporters are urged to bear in mind that 

 the confusion and controversies which have arisen in American 

 export trade have sprung in part from the use of an excessive 

 number of abbreviated forms with substantially similar mean- 

 ings, as well as from the use of abbreviations in a sense dif- 

 ferent from their original meanings, or in an application not 

 originally given them and different from the sense or applica- 

 tion understood by foreign buyers. In the simplified and 

 standardized practice agreed upon lies the best hope of reducing 

 confusion and avoiding controversy. 



As the most eflfective measure of simplification, the general 

 practice of quoting for export, as far as possible, either "F. A. S. 

 Vessel," "F. O. B. Vessel" or "C. I. F." is strongly recommended. 

 All of these terms are readily understood abroad and difficult 

 of misinterpretation, and concentration on this small list, it is 

 felt, will be markedly influential in avoiding misunderstanding 

 and disputes. 



DEFINITIONS OF EXPORT QUOTATIONS. 



The following are, in their order, the normal situations under 

 which an export manufacturer or shipper may desire to quote 

 prices. It is understood that unless a particular carrier is 

 specified by the buyer, the goods will be delivered to the carrier 

 most conveniently located to the shipper. 



1. When the price quoted applies only to an inland shipping 

 point and the seller merely undertakes to load the goods on 

 or in the cars or lighters furnished by the railroad company 

 serving the industry, without other designation as to routing, 

 the proper term is ; 



"F. O. B. (named point)." 

 Under this quotation: 



A. Seller must— 



(1) Place goods on or in cars or lighters. 



(2) Secure railroad bill of lading. 



(3) Be responsible for loss and/or damage until goods 

 have been placed in or on cars or lighters at for- 

 warding point, and clean bill of lading has been fur- 

 nished by the railroad company. 



B. Buyer must — 



(1) Be responsible for loss and/or damage incurred 

 thereafter. 



(2) Pay all transportation charges including taxes, if 

 any. 



(3) Handle all subsequent movement of the goods. 



2. When the seller quotes a price including transportation 



ithout assuming responsi- 

 a clean bill of lading at 



charges to the port of exportation w 

 bility for the goods after obtaining 

 point of origin, the proper term is: 

 "F. O. B. (named point) Freight Prep.'Md to (named point on 

 the seaboard)." 

 Under this quotation: 



A. Seller must — 



(1) Place goods on/or in cars or lighters, 



(2) Secure railroad bill of lading. 



(3) Pay freight to named port. 



(4) Be responsible for loss and/or damage until goods 

 have been placed in or on cars or lighters at for- 

 warding point, and clean bill of lading has been 

 furnished by the railroad company. 



B. Buyer must— 



(1) Be responsible for loss and/or damage incurred 

 thereafter. 



(2) Handle all subsequent movement of the goods. 



(3) Unload goods from cars. 



(4) Transport goods to vessels. 



(5) Pay all demurrage and/or storage charges. 



(6) Arrange for storage in warehouse or on wharf 

 where necessary. 



3. Where the seller wishes to quote a price, from which 

 the buyer may deduct the cost of transportation to a given 

 point on the seaboard, without the seller assuming responsi- 

 bility for the goods after obtaining a clean bill of lading at 

 point of origin, the proper term is: 



"F. O. B. (named point) Freight Allowed to (named point 

 on the seaboard)." 



Under this quotation: 



A. Seller must — 



(1) Place goods on or in cars or lighters. 



(2) Secure railroad biU of lading. 



(3) Be responsible for loss and/or damage until goods 

 have been placed in or on cars or lighters at for- 

 warding point, and clean bill of lading has been 

 furnished by the railroad company. 



B. Buyer must— ' 



(i) Be responsible for loss and/or damage incurred 

 thereafter. 



(2) Pay all transportation charges (buyer is then en- 

 titled to deduct from the amount of the invoice 

 the freight paid from primary point to named 

 port). 



(3) Handle all subsequent movement of the goods. 



(4) Unload goods from cars. 



(5) Transport goods to vessel. 



(6) Pay all demurrage and/or storage charges. 



(7) .\rrange for storage in warehouse or on wharf 

 where necessary. 



4. The seller may desire to quote a price covering the trans- 

 portation of the goods to seaboard, assuming responsibility for 

 loss and/or damage up to that point. In this case, the proper 

 term is : 



"F. O. B. Cars (named point on seaboard)." 

 Under this quotation : 

 A. Seller must — 



(1) Place goods on or in cars. 



(2) Secure railroad bill of lading. 



(3) Pay all freight charges from forwarding point 

 to port on seaboard. 



(4) Be responsible for loss and/or damage until goods 

 have arrived in or on cars at the named port. 



