Article 48(b) of ICC-UCP 500 states: "A Credit can be transferred only if it is expressly designated as "transferable" by the issuing Bank. Terms such as "divisible", "fractionable", "assignable" and "transmissible" do not render the Credit transferable. If such terms are used they shall be disregarded."

1 a : words or language having no meaning or conveying no intelligible ideas b (1) : language, conduct, or an idea that is absurd or contrary to good sense (2) : an instance of absurd action 2 a : things of no importance or value : TRIFLES b : affected or impudent conduct.

Other misused terms:

It is NOT a nonsensical broker term, that is the point.

Ofcourse, if the buyer gives a precise destination, the CIF quote could be lower. However for destinations beyond a certain point, the rates are same.

This is true in several othe rcommodities like urea, sugar, cooper cathode, etc.U will see CIF ASWP quotes, as a common occurence.

Anyway, I do not want to take away the credit for the excellent work of letcredit. I just wanted to point out an error inhis work.

First, ASWP supposedly stands for "Any Safe World Port". There is neither a list nor a definition of what is a "safe" world port. Safe from what? Hurricanes? Earthquakes? Rocks? Delays? Pilferage? War? Terrorists? There is an element of risk in every port in the world, however small, therefore every port in the world is unsafe. If a port is riskier than others, the insurance rates will reflect that.

CIF means cost, insurance and freight. It means the seller pays for the insurance and freight and adds them to his price and are included in the invoice to the buyer. We all know that.

Now, suppose Mr. Rgexim in India has 10,000 tons of something in his warehouse in Mumbai which cost him $80 per ton and he wants to sell it for $100 per ton and make a profit of $20 per ton.

He can quote $100/ton fob Mumbai. The buyer nominates a vessel, arranges his own insurance, pays the freight on arrival and the seller invoices the buyer $100/ton and makes $20/ton.

Suppose Mr. Rgexim gets enquiries from all over the world and they all want quotes of cif per ton. He cannot possibly quote CIF ASWP to all these enquiries from all over the world because freight rates are different to different ports. He cannot quote the same price CIF ASWP to any "safe world port".

Suppose he estimates insurance and freight to be $10/ton. Can he quote $110/ton CIF ASWP to anywhere in the world? No he can't, because the freight from Mumbai to say, Dubai, could be $5/ton and from Mumbai to New York could be $40 per ton. He can't possibly quote CIF ASWP and let the buyer choose which "safe world port" to ship to.

Therefore, CIF prices are always quoted with a named port following CIF and each quotation to a different port is different because the freight rates are different. The term CIF ASWP is simply not used in commodity trade.

please explain for all bachelors here: the ral verbiage for the bg,sblc
also advice the last edition of the icc:500,600,900 ?? bg has:isin,dtc,cusip ????
can you explain these important detaills

We all know what's CIF and Incoterms. They are all everyday terms used in import/export and every petty trader knows them.

Incoterms or international commerce terms is a series of international sales terms that is widely used throughout the world, divides transaction costs and responsibilities between buyer and seller, reflects state of the art transportation practices and closely corresponds to the U.N. Convention on Contracts for the International Sale of Goods.

Incoterms deal with the questions related to the delivery of the products from the seller to the buyer. This includes the carriage of products, export and import clearance responsibilities, who pays for what, and who has risk for the condition of the products at different locations within the transport process. Incoterms are always used with a geographical location and do not deal with transfer of title.

They are devised and published by the International Chamber of Commerce (ICC). The English text is the original and official version of Incoterms 2000, which have been endorsed by the United Nations Commission on International Trade Law (UNCITRAL). Authorized translations into 31 languages are available from ICC national committees.

When a price is quoted CIF, it means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance. CIF is an international commerce term (see Incoterm).

CIF is identical in most particulars with Cost and Freight (CFR), and the same comments apply, including its applicability only to conventional maritime transport. In addition to the CFR responsibilities, the seller under CIF must obtain in transferable form a marine insurance policy to cover the risks of transit with insurers of repute. The policy must cover the CIF price plus 10 per cent and where possible be in the currency of the contract. Note that only very basic cover is required equivalent to the Institute "C" clauses, and buyers should normally insist on an "all-risk" type of policy such as that under the Institute "A" clauses. The seller's responsibility for the goods ends when the goods have been delivered to the marine carrier or have been delivered on board the shipping vessel, depending upon the terms of the contract.

Bulk commodities are usually traded on the price basis of 1) FAS (Free Alongside Ship), 2) fob named port, 3) free out, 4) liner out and 5) cif named port.

Good information. I will only add some feedback for "Soft Probe". This Term will be used frequently from Intermediaries for Buy/Sell of Communities as Sugar, Urea, Cement as others where the Seller Bank will check the Buyer Bank if there are enough Funds available for closing the Purchase Contract together with the famous 2% Performance Bond who activate the payment (Letter of Credit, Standby Letter) from Buyer.

Before I get paid on a deal my bank has to be pre advised that where that fund is coming from and why by another banker who is sending that fund. This is applicable when a large amount of fund is involved.