Necessary attentions of the buyers of Second-hand vessel - Basics of Import-Export - FOB Business Forum [A Professional Business Forum]

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Post at 2007-10-26 14:08 Profile Space P.M. Buddy

Necessary attentions of the buyers of Second-hand vessel

(Ⅱ)：the buyers to attend to some items during bargaining
Source： LIAONING BANDCN LAW FIRM www.bandcn.com.cn written by : Liu Jun [A Professional Business Forum]&G9\5z+}8U5T5N8n
General situations of second-hand vessel trade markets
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Chinese second-hand vessel trade markets are mostly located in Shanghai, Dalian, Zhoushan in )T'k2d%@9a8h*?4s%F"?"B"G:V
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Zhejiang province, Fuan in Fujian province, etc. The trade markets in Shanghai and Dalian focus in large forum.fobshanghai.com:b7\.T)@(Q7?1m
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and middle vessels and foreign vessels, and the else in small vessels. The buyers also ought to master 2M1d1R-q1T
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the supply and demand situations of second-hand vessels. Usually, vessels over 5000 gross tonnage on

sale is scarce but the demand on them is to the contrary. So is the demand on engineering vessels or business forum,trade forum,business opportunity,Business China,Business India,Brazil business*^1?$b-S*{+

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specialized vessels. For foreign second-hand vessels on sale, most ship owners are from Japan and FOB Business Forum:i*q6a3p0j a7I%B

Korea. The trade of foreign second-hand vessels is usually unknown outside because it is involved in the
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competent authorities approval and tariff. At present, trade of second-hand vessels on internet is

widespread and the markets of it are more and more mature. So, the buyers may easily achieve
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information on second-hand vessels on sale.business forum,trade forum,business opportunity,Business China,Business India,Brazil business1{ u"x Z)d;C;p8X0A

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The buyers should set an appropriate standard for purchase business forum,trade forum,business opportunity,Business China,Business India,Brazil business7K+}8f)I9S)W%^9A'}

Firstly, the buyers should ascertain which type and what deadweight tonnage of second-hand vessels to ({#{8P$J&l5g4[-a+?+y
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purchase. Most buyers buy the vessels for the purpose of operation. Generally, the buyers apperceive

business chance in shipping market or they master steady channels to obtain cargo for transportation, FOB Business Forum'R$\"w%@3l/t3v"f0I
business forum,trade forum,business opportunity,Business China,Business India,Brazil business/w/r3n'Z-s*h2`4?1|&T(S
then they decide to buy which type and what deadweight tons of vessels according to the situations said 3~$A,m9D0n;F({'T6a

above. Secondly, the buyers should pay attention to the age of second-hand vessels. In making decision business forum,trade forum,business opportunity,Business China,Business India,Brazil business&a-K8z8@3D!N

to buy what age of vessels, the buyers must take into consideration of Chinese compulsory regulations forum.fobshanghai.com5I0P/U1C-C!f
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of aged and old vessel. Ministry of Communications of China had enacted Administration Regulations of

Aged and Old Transportation Ships, which took effect on August 1, 2006 and renewedly provides business forum,trade forum,business opportunity,Business China,Business India,Brazil business f0}/X:q!S9n
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classification standard on aged and old vessel, age of vessel for special and regular survey and business forum,trade forum,business opportunity,Business China,Business India,Brazil business-m7S:j4M,y)?+{
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compulsory scrap. Provided the buyers do not learn about these regulations and purchase one vessel

nearing to or coming at age of vessel for compulsory scrap to fly Chinese flags, the buyers shall FOB Business Forum7a:@!y&I/i.Y)b9W(b
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undoubtedly encounter many troubles when in operation of the vessels in future. When above said
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situation occurs, the buyers may probably make the vessel fly a flag of convenience. However, the
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vessel flying flag of convenience is difficult to obtain qualification to engage in the maritime transport

between the Chinese ports. As a result, the buyers maybe not reach the purpose of purchasing the FOB Business Forum"t P.Q5L j,^
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second-hand vessel. Thirdly, the buyers must also ascertain built country, classification,

deadweight tons, engine type and horsepower, etc. the more particular are the standards set, the more
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possibly the vessels are finally bargained after original selection. But the buyers should practically set the forum.fobshanghai.com(Z8u;a/e$p9Q5J

standards for purchasing second-ship vessel. Lastly, the buyers must decide appropriate bargain price

and the price should match other standards. When vessel type and tonnage are fixed, the price depends
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on age of vessel, situations of vessel, design grade of vessel, etc. [A Professional Business Forum];~2I7B(Z6m"o

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The buyers to prepare much for purchase[A Professional Business Forum]"R#],~.V.?.q
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The buyers should prepare much before purchase, including but not limited to purchase qualification and

operation qualification, payment, application some certificates and practical operation, etc.

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Firstly, the buyers ought to obtain relevant qualification for engaging in international or between Chinese forum.fobshanghai.com a9k2X;_*o#s%_*e
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ports carriage by ocean. The buyers ought to obtain approval from their superior in charge to purchase FOB Business Forum-r6P)k)\&J
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second-hand vessel. If the buyers import second-hand vessel overseas, they ought to apply to Ministry [A Professional Business Forum])L"B-Q4|;d+c:B:a)S*f

of Communications of China and competent authorities of mechanical and electrical products imports forum.fobshanghai.com&F)K)h$@0g&r

and exports for approval, as well as apply to custom for payment or abatement of tariff. Secondly, the
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buyers ought to prepare for payment. According to international practices, the buyers usually prepay the

deposit of 10 per vessel price to the sellers after survey on board if the buyers think the said vessel

suitable. The else of vessel price is usually paid before deliver and acceptance of the said vessel. In forum.fobshanghai.com!w;U(v8`%t.H8}+b+x
business forum,trade forum,business opportunity,Business China,Business India,Brazil business(f9M9E9p$Q(e+V7]
addition, the buyers should prepare for purchase of the second-hand vessel in finance, operation, safety

on sea, engine management and set up safety management system, man seaman provided with $c1F)g'z7I"^ [

qualification certificate. Thirdly, the buyers ought to prepare materials for application of second-hand
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vessel certificates. If the buyers do not plan to change the said vessel??s nationality, some present vessel
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certificates need not apply renewedly. Besides, the buyers may prepare relevant materials for application
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for vessel certificate after acceptance of the second-hand vessel. Even the buyers may apply in advance FOB Business Forum+G/q-[7z1u#b0b:s

some temporary certificate before acceptance so that the buyers shall operate the said vessel as soon FOB Business Forum.n/@2e2o"S#\&l
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as they accept the vessel. Lastly and very importantly, the buyers and the sellers are both provided with

resolution of the shareholders convention or the board of directors of the companies on agreeing to

purchase or sale of the said vessel, or else, the vessel sale contract is probably deemed void when the business forum,trade forum,business opportunity,Business China,Business India,Brazil business0T-@#U-f#B:o6b0a,S

parties have disputes on the contract.
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The disputes of the second-hand vessel sale contract are often affected by shipping markets.
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When tremendous changes excess the buyers?? and/or the sellers?? foresight in shipping market happens,
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probability of dispute will greatly increase. If shipping markets are good and the freight is increasing, the [A Professional Business Forum],`&w*~7a"R&J

price of the vessel is certainly rising. At the time, the buyers are not choosy about the defect of the vessel

to terminate the contract or demand a lower price, but the sellers will be very particular with the buyers?? business forum,trade forum,business opportunity,Business China,Business India,Brazil business*q9x/C+M,W,p

performance. On the other hand, when the shipping markets are stagnant, the situation will be opposite.forum.fobshanghai.com1]5O+U)~${
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The buyers ought to weigh upon shipbrokers?? roles and identify good shipbrokers
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Shipbrokers are very important during the second-hand vessel sale and purchase. For example, they

play a role, sometimes a key role in supplying suitable information for the buyers, passing on offer and
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counter-offer, negotiating sale clauses, survey on board, deliver and acceptance of the said vessel, even
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claim by the buyers, dispute settlement, etc. Therefore, the buyers ought to select competent [A Professional Business Forum]5H%S(e1R%M;q,R

shipbrokers. In the second-hand vessel sale, the buyers?? risk is greater than the sellers, especially

purchase from a single-vessel company. The buyers may learn about fame, efficiency and operation size
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of shipbrokers and their company.