ServicesGlossary of TermsImport and Export TerminologyAcceptance A draft, payable at a determinable future date upon the face of which the drawee acknowledges his obligation to pay it at maturity. An agreement to purchase goods at a stated price and under stated terms. back Advising Bank A bank, operating in the exporter's country, that handles letters of credit for a foreign bank by notifying the export firm that the credit has been opened in its favor. The advising bank fully informs the exporter of the conditions of the letter of credit without necessarily bearing responsibility for payment. back Advance Against Documents A loan made on the security of the documents covering the shipment. back Bill of Lading A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. back CAF Abbreviation for Currency Adjustment Factor. back CAD Cash against documents is the payment for goods in which an intermediary transfers title documents to the buyer upon payment in cash. back CF Cost and Freight. A pricing term indicating that the cost of the goods and freight charges are included in the quoted price; the buyer arranges for and pays insurance. back CIF Cost, Insurance, Freight. A pricing term under which the seller pays all expenses involved in the placing of merchandise on board a carrier and in addition prepays the freight and insures the goods to an agreed destination. back Certificate of Inspection A document certifying that merchandise is in good condition immediately prior to its shipment. back Certificate of Origin A document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods. back Commercial Invoice An itemized list of goods shipped usually included among an exporter's collection papers. back Confirmed Letter of Credit A letter of credit, issued by a foreign bank, the validity of which has been confirmed by a domestic bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment by the domestic bank even if the foreign buyer or the foreign bank defaults. back Certificate of Inspection A document in which certification is made as to the good condition of the merchandise immediately prior to shipment. back Certificate Of Origin A certificate which proves that the goods of the export shipment are originally produced in the exporter's country. back COD Cash on Delivery. Transportation for a private shipper for which payment is required at the time of delivery at the destination. back CWO Cash with Order. The payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties. back Consolidation Gathering of all the shipments for the same destination so as to share the total chargeable weight. back Credit Note A document stating the amount you are paying to an outside party. back Customs Clearance A set of procedures to release the shipments' cargoes from Customs presenting shipment permit, documentations, and payment of customs duties. back Declaration A formal representation by the importer or its agent to the Customs Service attesting to the correctness, description, valuation, classification, etc., of the imported merchandise. back Documents Against Acceptance D/A Instructions given by a shipper to a bank indicating that documents transferring title goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance of the attached draft. back Draft (Bill of Exchange) An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date. back DO Delivery Order. Document stating the details of the delivery items, the costs and other details. back Debit Note A document stating the amount you are collecting from an outside party. back DIM Weight Dimensional Weight. This is calculated using the formula (length x width x height) divided by 166. Freight charges are usually dependent on the dimensional weight or the actual weight, whichever is higher. back ETA Estimated Time for Arrival. Anticipated time for arrival. back ETD Estimated Time for Departure. Anticipated time for departure. back Ex Signifies that the quoted price applies only at the indicated point of origin (e.g. "price ex factory" means that the quoted price is for the goods available at the factory gate of the seller). back FCL Full Container Load. back FOB "Free on Board" at named port of export. A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods upon an overseas vessel provided by or for the buyer. Seller is responsible for inland freight and all other costs until the cargo has been loaded on the vessel/aircraft. Buyer is responsible for ocean/air freight and marine/air insurance. back FTZ Free Trade Zone. back ISO International Organization for Standardization. back KG Abbreviation for Kilogram. 1000 Kilograms = 1 ton back Letter of Credit (L/C) A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. back LCL Less than Container Load. back LBS This is an abbreviation for pounds, where 2.204 lbs = 1 kilogram back MOQ Minimum Order Quantity back PI Pro forma Invoice. An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, etc.) back PSI Pre-Shipment Inspection back Quota Limitation on the quantity of goods that may be imported during a specific period of time. Quotas can include limitations on all countries, or can target specific countries. back Transshipment Cargo shipments are routed from an origin to an intermediate country before sending it to its destination. back TT Telegraphic Transfer (Wire Transfer) back |
