Q1  

What does FOB mean? Who pays the freight?

FOB is a shipping term that stands for “free on board.” If a shipment is designated
FOB (the seller’s location), then as soon as the shipment of goods leaves the
seller’s warehouse, the seller records the sale as complete. The buyer owns the
product enroute to its warehouse and must pay any delivery charges.

Q2  What basic documents must be supplied for a CIF Shipment?

CIF (cost, insurance and freight)

Invoice, BL, insurance policy

Q3  You are the advising bank for a $250 000 credit valid for 9 months.

The issuing bank asks you to confirm the credit. Are you obliged to:
(a) confirm it?
(b) confirm it for 9 months?

(c) confirm it for $250 000?

Q4  Documents for a value of US$150000 are presented against a CIF credit.

They include an insurance certificate for £100000. The current exchange rage
is US$1.50 = £1. Is the insurance certificate acceptable?

Q5  Who can sign a bill of lading?

Q6  What is the difference between a shipping company’s bill of lading

and a charterparty bill of lading?