Purpose of the CCBNew documentary requirements
Status quo – ships manifest Hearsay by foreign party not accountable in SA
CCB Three pillars of customs control
Nature of goods, classification Value of goods Origin
Importer takes responsibility for information provided
Opposition to CCB – 5 AssumptionsCCB will disturb current trade patterns and
relationsExporters reluctant to export past point of
customs clearanceCCB will necessitate change in INCOTERMS
Only use CIF to Durban and not City DeepReluctant to use DDPMay have an impact on passing of risk and
allocation of costsWill make carriers reluctant to accept contracts of
carriage past the point of customs clearance
INCOTERMSNature of INCOTERMS
Set of interpretational rules issued by ICCNot law, nor international custom, nor
mandatoryParties incorporate rules by referring to the
appropriate INCOTERMParties free to vary and tailor to meet their needs
Statement: “With CIF shipping to a port is mandatory”
Nothing in INCOTERMS is mandatory
INCOTERMS – CIF/CIPMost widely used INCOTERM is CIF even if
CIP is more appropriate with multimodal transport
Exporter
Hamburg Harbour
German Border
Delivery
Multimodal Carrier
SA Border
Durban Harbour
City Deep
Delivery
ImporterSales Contract
CIF
Delivery -Two contractsSales contract
between exporter and importerVienna Sales
Convention 1980 S 31 handing the goods
over to the first carrierCIF
Arrange transport Arrange insurance Delivery at port of
export [Ramberg 105] Clear for export
Contract of carriage between exporter and carrier
Handing over of goods to carrier
Carrier must deliver to importer at agreed point
Disturbance of current trade patternsStatement: Exporters reluctant to export past
point of customs clearanceNot correctUnder CIF/CIP the obligations of the exporter to
deliver the goods terminates at the port of export [Ramberg; 41 & 105]
What happens in the country of import is irrelevant
No reason for any change or disturbance
CIF only to a portStatement: You can only use CIF to Durban
and not City Deep if the latter is not an ‘inland port’
Not correctCIF is more appropriate port to port CIP is more appropriate for multimodal In practice CIF nevertheless used widely in
multimodal transport [see Pammenter par 11 & 13]Nothing mandatory – parties free to amendInterpretation of their contract
Sale becomes DDPUnder new rules sale past Durban in effect
becomes DDP and exporters reluctant to use DDP
Not correctParties determine the INCOTERMCarriage past customs point does not change
the sales contract if the parties chose CIFIf anything, it changes into CIP [see Pammenter par
11]
May impact on risk and costRequiring clearance at the coastal port may
have an impact on passing of risk and allocation of costs
Not correctThe transfer of risk and allocation of costs
determined by the INCOTERM chosenCIF – risk transfers at time of exportation [Rule
A5] Incidental and delay costs risk of the importer Carrier has a lien over the goods for payment
Carriers reluctantWill make carriers reluctant to accept
contracts of carriage past the point of customs clearance
Not correctNo evidence from carriers that the point of
customs has any relevance60% of goods pre-cleared in Durban already
in practiceSimply not relevant for carriers
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