Again the Gold Medal Marine insurance policy has been specifically tailored for the wine industry.
The agreed value of the wine is carried over for the insurance of grapes in transit to the winery or bulk or bottled wine in transit.
For goods sold FOB the insurance automatically covers loss or damage for the journey from the winery to ship’s side and the Sellers Interest Clause. The Sellers Interest Clause provides protection in the event of deficiencies in the buyer’s insurance resulting in non-payment.
Wine sold CIF can also be insured under this policy.
International Commercial Terms (Incoterms)
Please be aware that the new Incoterms for Marine Cargo insurance came into effect on January 1st 2011.
International Commercial Terms, known as “Incoterms”, are internationally accepted terms defining the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction.
Incoterms do not cover ownership or the transfer of title of goods. It is crucial to agree on an Incoterm at the start of a negotiation/quotation of a sale, as it will affect the costs and responsibilities involved in shipping, insurance and tariffs.
In any sales transaction, it is important for the seller and buyer to agree on the terms of sale and know precisely what is included in the sale price. Exporters should choose the Incoterm that works best for their company, but also be prepared to quote on other terms.
The most common Incoterms used within the wine industry for exports are:
EXW - Inexperienced exporters may want to use the Incoterm “Ex Works” (EXW), because this term carries the least burden for them. The goods are basically made available for pickup at the seller's warehouse and "delivery" is accomplished when the merchandise is released to the consignee's freight forwarder. The buyer is responsible for making arrangements with their forwarder for insurance, export clearance and handling all other paperwork.
FOB - Free On Board: The risk passes to the buyer, including payment of all transportation and insurance costs, once delivered on board the ship by the seller.
CIF - A sale based on the Incoterm “CIF”, on the other hand, requires the exporter to arrange and pay for the pre-carriage, shipping, and insurance to a named port. In this case, the sale price (invoice) includes not only the (C)ost of goods, but also (I)nsurance and (F)reight costs that the importing buyer pays the exporting seller.
The following document provides a summary of the current incoterms Download Document