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Your company (ABC) in Vietnam has just signed a coffee export contract with a company (XYZ) in the United Kingdom

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Your company (ABC) in Vietnam has just signed a coffee export contract with a
company (XYZ) in the United Kingdom. Some clauses in the contract are as follows:

1.
ARTICLE 1: COMMODITY
Commodity: Vietnamese coffee beans for human consumption
Origin: Vietnam
Quality: Latest season 2021
Quantity: 5,000 MTS (+/-5%)
Packing: in bulk
Price: 450 USD per MT, CFR Southampton port, United Kingdom, Incoterms 2020

ARTICLE 5: PAYMENT AND DOCUMENTS
100% payment under this contract shall be made at sight under Documents against
Acceptance 60 days after shipment date.
Document required:
- Full set of original Bill of lading marked Freight Prepaid
- Commercial invoice in triplicate
- Packing list in triplicate
- Certificate of quality in triplicate issued by seller
- Certificate of origin in triplicate issued by Vietnamese Chamber of
commerce
Name of our bank:
FAMOUS BANK JSC
Add: 999 Greenfield street, London, United Kingdom
 

ARTICLE 2: DELIVERY TERMS
Port of loading: Hai Phong port, Vietnam
Port of unloading: Southampton port, United Kingdom
Latest date of shipment: 10 April 2022

1. Which Incoterms rule is used in this contract? Please identify (1) which duties
each ABC Company and XYZ Company has to do under this Incoterms rule; (2)
the point of transferring risk.
2. Which payment method(s) is used in this contract? Please (1) identify the risk of
your company when using these payment methods; and (2) suggest some solutions
to limit such risk.