Today, the quality is not only a major factor company takes a look at, but the price is still number one after. Customer will sees the price, compares with another lower than. I read, in Japanese economic trend said so. Yes, we live today where the price will move forward to become number one for consideration.
Let's talk like the title. I have faced some cases in business, several buyer have been taken decision to ask shipper in Indonesia pay the shipping cost, Air Freight Cost, firstly then, they will refund full after. It's new case for me. They said that the freight rate in Japan is higher than Indonesia. I guess maybe because of their economic level is higher than Indonesia. All the price will be higher than here.
They also asked me to find out the lowest freight rate .
The problem will arises when the L/C has been mentioning the trade term is FOB Indonesia. The condition above mentioned, the trade term will be C&F or CIF instead, of course then, the discrepancy will happens. And the bank will refuses to sends a fund. It doesn't matter if buyer will covers the discrepancy cost and accepts the document that has a discrepancy.
Buyers, in this case, take an economic motion to make their company getting more profit through.
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