Acceptance:(1) A time draft (or bill of exchange) which the drawee (the payer) has accepted and is unconditionally
obligated to pay at maturity. The draft must be presented first for acceptance-the drawee becomes the "acceptor"-then
for payment. The word "accepted" and the date and place of payment must be written on the face of the draft. (2) The
drawee's act in receiving a draft and thus entering into the obligation to pay its value at maturity. (3) Broadly speaking,
any agreement to purchase goods under specified terms.
Ad Valorem Rate: An import duty rate determined "according to the value" (ad valorem) of the commodity entering a
country, as opposed to the weight or other basis for calculation. An ad valorem tariff is a tariff calculated as a percentage
of the value of the goods when clearing customs.
Alongside: A phrase referring
to the side of a ship. Goods to be delivered "alongside"
are to be placed on the dock or lighter within reach of the transport
ship's tackle so that they can be loaded aboard the ship.
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.
Bonded Warehouse: A warehouse
authorized by customs authorities for storage of goods which payment
of duties is deferred until the goods are removed.
Booking: An arrangement with a
steamship company for the acceptance and carriage of freight.
Cash Against Documents (C.A.D.): A payment method by which title to the goods is given to the buyer when the buyer
pays cash to an intermediary acting for the seller, usually a commission house.
Cash In Advance (C.I.A.): A payment method for goods in which the buyer pays cash to the seller before the shipment
of the goods. Usually required by the seller when the goods are customized, such as specialized machinery.
Cash With Order (C.W.I.): A payment method for goods by which cash is paid at the time of order and the transaction
then becomes binding for both buyer and seller.
Certificate of Inspection: Listed under Export Documents
Certificate of Insurance: Listed under Export Documents
Certificate of Origin: Listed under Export Documents
Certificate of Manufacture: Statement by a producer, who is usually also the seller, of merchandise that manufacture has been completed and that the goods are at the disposal of the buyer.
Certificate of Weight: Listed under Export Documents
C.& F.: A pricing term indicating that "cost and freight changes" are included in the quoted price.
C.& I.: A pricing term indicating that "cost and insurance" charges are included in the quoted price.
C.I.F.: A pricing term indicating that "cost, insurance, freight" charges are included in the quoted price.
C.I.F. & C.: A pricing term indicating that "cost, insurance, freight, and commission" charges are included in
the quoted price.
C.I.F. & E.: A pricing term that indicates that "cost, insurance, freight, and (currency) exchange" charges are included in
the quoted price.
Clean Bill of Lading: A document specifying that the goods were received in "apparent good order" by the carrier.
Conditional Free: Goods free of duty under certain conditions, if the conditions can be satisfied.
Confirmed Letter of Credit: A letter of credit, issued by a foreign bank, with validity confirmed by an American bank.
An exporter whose payment terms are a confirmed letter of credit is assured of payment even if the foreign buyer or
foreign bank defaults. See LETTER OF CREDIT.
Consignment: Delivery of merchandise from an exporter (the consignor) to an agent the (consignee) under agreement
that the agent sells the merchandise for the account of the exporter. The consignor retains title to the goods until the
consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.
Consignor: The seller or shipper of merchandise.
Consul: A government official residing in a foreign country charged with representing the interests of his country and its
Consular Declaration:A formal statement, made to the consul of a foreign country, describing goods to be shipped.
Commercial Invoice: Listed under Export Documents.
Consular Invoice: A document, required by some foreign countries describing a shipment of goods and showing
information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign
country, the invoice is used by the country's Customs officials to verify the value, quantity, and nature of the shipment.
Count Certificate: This particular document will certify the accuracy and quantity of a shipment with regard to the count
of its parts or units.
Countertrade: International trade in which the seller is required to accept goods or other instruments of trade in partial
or whole payment for its products.
Countervailing Duty: An extra duty imposed by the Secretary of Commerce to offset export grants, bounties, or subsidies
paid to foreign suppliers in certain countries by the government of those countries as an incentive to export.
Credit Risk Insurance: Insurance designed to cover risks of nonpayment for delivered goods. Compare MARINE
Customhouse Broker: An individual
or firm licensed to enter and clear goods through customs.
Demurrage: Excess time taken
for loading or unloading a vessel. Demurrage refers only to situations
in which the charterer or shipper, rather than the vessel's operator
is at fault.
Destination Control Statement: One of a number of statements required by the U.S. Government to be displayed on
export shipments specifying the authorized destinations for the shipments.
Distribution License: Listed under Export Documents
Draft (or 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 payee at a fixed or determinable future date.
Drawee: The individual or firm
on whom a draft is drawn and who owes the indicated amount. Compare
DRAWER. Also see DRAFT.
Drawer: The individual or firm
that issues or signs a draft and thus stands to receive payment
of the indicated amount from the drawee. Compare DRAWEE. Also see
Duty: A tax imposed on imports
by the customs authority of a country. Duties are generally based
on the value of the goods (ad valorem duties), some other factors
such as weight or quantity (specific duties), or combination of
value and other factors (compound duties).
Export-Import Bank (Ex-Im Bank):
An independent U.S. government agency created to facilitate U.S.
trade relations primarily through providing financing, insurance,
and feasibility studies.
(vessel)" is a pricing term indicating that the quoted price
includes the cost of delivering the goods alongside a designated
F.I.: "Free In" is
a pricing term indicating that the charterer of a vessel is responsible
for the cost of loading goods onto the vessel.
F.I.O.: "Free In and Out"
is a pricing term indicating that the charterer of a vessel is responsible
for the cost of loading and unloading goods from the vessel.
F.O. : "Free Out" is
a pricing term indicating that the charterer of a vessel is responsible
for the cost of loading goods from the vessel.
F.O.B.: "Free on Board"
is a pricing term indicating that the quoted price includes the
cost of loading the goods into transport vessels at the specified
Foreign Credit Insurance Association (FCIA):
An association of 50 insurance companies that operate in conjunction
with the EXIMBANK to provide comprehensive insurance for exporters
against nonpayment. FCIA underwrites the commercial credit risks.
EXIMBANK covers the political risk and any excessive commercial
Foreign Sales Agent: An individual
or firm that serves as the foreign representative of a domestic
supplier and seeks sales abroad for the supplier.
Free Trade Zone: A port designated
by the government of a country for entry of any non-prohibited goods.
Merchandise may be stored, displayed used for manufacturing, etc.,
within the zone and re-exported without duties being paid. Duties
are imposed on the merchandise (or items manufactured from the merchandise)
only when the goods pass from the zone into an area of the country
subject to Customs.
General Export License: Any of
various export licenses covering export commodities for which validated
export licenses are not required. No formal application or written
authorization is needed to ship under a general export license.
Compare VALIDATED EXPORT LICENSES.
Inland Bill of Lading: A bill
of lading used in transporting goods overland to the exporters international
carrier, although a through bill of lading can sometimes be used,
it is usually necessary to prepare both an inland bill of lading
and an ocean bill of lading for export shipments.
Irrevocable Letter of Credit: A
letter of credit in which the bank guarantees the specified payment
if all terms and conditions are not met by the drawee.
Letter of Credit (L/C): A document,
issued by a bank under instructions from 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
Marine Insurance: Broadly, insurance
covering loss or damage of goods at sea. Marine insurance will typically
compensate the owner of merchandise for losses sustained from fire,
shipwreck, piracy, and various other causes; but it excludes losses
which can be legally recovered from the carrier. Compare CREDIT
Ocean Bill of Lading: A bill
of lading indicating that the exporter consigns a shipment to an
international carrier for transportation to a specified foreign
market. Unlike the inland type, the ocean bill of lading also serves
as a collection document. If it is a straight bill of lading, the
foreign buyer can obtain the shipment from the carrier by simply
showing proof of identity. If a negotiable bill of lading is used,
the buyer must first pay for the goods, post a bond, or meet other
conditions agreeable to the seller. Compare INLAND BILL OF LADING,
THROUGH BILL OF LADING.
Offset: A variation in countertrade
in which the seller is required to assist in or to arrange for the
marketing of locally produced goods.
Open Account: A trade arrangement
in which goods are shipped to a foreign buyer without guarantee
of payment. The obvious risk this method poses to the supplier makes
it essential that the buyer's integrity be unquestionable.
Phytosanitary Inspection Certificate:
A certificate, issued by the USDA to satisfy import regulations
of foreign countries, indicating that a U.S. shipment has been inspected
and is free of harmful pests and plant diseases.
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.)
Revocable Letter of Credit: A
letter of credit which can be canceled or altered by the drawee
(buyer) after it has been issued by the drawee's bank. Compare IRREVOCABLE
LETTER OF CREDIT.
Steamship Conference: A group
of steamship operators that operate under agreed upon freight rates.
Swap Arrangements:A form of
trade in which title to similar or identical products from different
locations is traded to save transportation costs.
Switch Arrangements: A form of
countertrade in which the seller sells on credit and then transfers
the credit to a third party.
Through Bill of Lading: A single
bill of lading covering both the domestic and international carriage
of an export shipment. An air waybill, for instance, is essentially
a through bill of lading used of air shipments. Ocean shipments,
on the other hand, usually require two separate documents, and inland
bill of lading for domestic carriage and an ocean bill of lading
for international carriage; through bills of lading, therefore cannot
be used. Compare INLAND BILL OF LADING, OCEAN BILL OF LADING.
Tramp Steamer: A ship not operating
on regular routes or schedules.
Validated Export License: A document
issued by the U.S. Government authorizing the export of commodities
for which written export authorization is required by law. Compare
GENERAL EXPORT LICENSE.
is a marine insurance term meaning that a shipment is protected
from partial damage when ever the damage exceeds 3 percent (or some
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