 | Term | Definition |
| |
advance payment |
buyer pays for the goods before they are dispatched |
| |
agent |
importer appoint the exporter their dealers and ask for a purchase. This dealers do not have to bear any responsibility but just to sign the contract |
| |
commission |
the return on the agent is a certain percentage of the contract fee |
| |
distributor |
buys product, make inventory and resells with its own money and risk. Profit is the different between purchasing and release amount |
| |
shipping advise: |
after making shipment, exporter has an obligation of sending THIS to importer.THIS informs the importer about type and quantity of the cargo, means of transport, departure and arrival date. |
| |
shipping sample or advance sample |
If necessary, THIS is sent to clarify the quality of the cargo or to prompt import customs entry (as a part of shipping advise) |
| |
consolidated cargo |
combine cargoes of different shippers into a large sized cargo as a contract carrier and ask the airline company for carriage |
| |
consolidator |
the people who combine cargoes of different shippers into a large sized cargo as a contract carrier and ask the airline company for carriage |
| |
air waybill |
characterized as a receipt of the freight and is evidence of the transport contract. THIS is not negotiable (thus it is not the document of title) because air cargo would arrive at the destination in a short amount of time. IT is issued by the agent of the airline company to the consolidator. |
| |
document of title |
transfer the ownership of the freight based on the handling over of the document. Owner of THIS is the owner of the freight |
| |
bill of lading |
the document of title promising to hand over the freight to the owner, the receive proving that the shipping company has obtained the freight, as evident of the transport contract concluded by the shipper and the shipping company |
| |
all risks |
type of cargo insurance. Danger of voyage risk. Cover damage for total loss, partial loss and cost loss |
| |
WA with average |
provision for the damage in the case of total loss, general average and particular average due to maritime risks. |
| |
FPA free from particular average |
the provision for damage in the case of partial loss, general average and specific loss due to maritime risks. |
| |
allowance |
decided since the quality of the goods could not be consistent, some maybe bad in conditions. |
| |
more or less clause |
settled in cases where the amounts may differ --> payment varies depending on the actual number of goods. "about, approximately, circa" should be indicated before the price. |
| |
opening bank/issuing bank |
bank that issue L/C |
| |
confirming bank |
bank rather than the issuing bank, when requested by the issuing bank and the exporter, will provide an additional guarantee for the payment of the L/C |
| |
confirmed credit |
an additional guarantee for the payment of the L/C |
| |
beneficiary |
in the L/C transaction, the exporter is called ??? because the exporter is the one who will benefit from the L/C payment guarantee |
| |
negotiating bank |
the amount to be paid for the beneficiary is the face amount of the draft, deducted by the interest until the maturity date. The bank conducts this agreement is called??? |
| |
yen adjustment factors |
In Japan, the yen once abruptly rose so much that the shipping company could have THIS for the loss in decrease of the value of the yen |
| |
applicant |
in the L/C transaction, the importer is called??? |
| |
international chamber of commerce |
Who makes incoterms? |
| |
B/L crisis |
B/L is a document of title. The cargo cannot be received from the shipping company without the B/L |
| |
At Sight |
if the bill of exchange is a sight bill, the foreign exchange rate is ?? |
| |
telegraphic transfer buying (selling) rate |
in the foreign exchange market, there is selling rate and buying rate. when some charge is added to the middle rate or subtracted to the middle rate, what is it called? |
| |
EXW ex works |
existing place of goods {+ the named place} |
| |
FAS free along side ship |
along side the vessel {+ the named port of origin} |
| |
FOB Free on Board |
The delivery of goods on board the vessel at the named port of origin (loading), at seller's expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. {+ the named port of origin} |
| |
FCA Free carrier |
handling over to the carrier {+ the named point of departure} The delivery of goods on truck, rail car or container at the specified point (depot) of departure, which is usually the seller's premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller's expense. The point (depot) at origin may or may not be a customs clearance center. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. |
| |
CFR cost and freight |
{+ the named port of destination} The delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the cargo insurance and other costs and risks |
| |
CIF Cost insurance freight |
{+ the named port of destination} The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the import customs clearance and other costs and risks. |
| |
CPT carriage paid to |
{+ the named place of destination} The delivery of goods to the named place of destination (discharge) at seller's expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks. |
| |
CIP carriage and insurance paid to |
{+ the named place of destination} The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller's expense. Buyer assumes the import customs clearance, payment of customs duties and taxes, and other costs and risks. |
| |
DAF delivered at frontier |
{+ the named point at frontier} The delivery of goods to the specified point at the frontier at seller's expense. Buyer is responsible for the import customs clearance, payment of customs duties and taxes, and other costs and risks. |
| |
DES delivered ex ship |
{+ the named port of destination} The delivery of goods on board the vessel at the named port of destination (discharge), at seller's expense. Buyer assumes the unloading fee, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks. |
| |
DEQ delivered ex quay |
{+ the named port of destination} The delivery of goods to the quay (the port) at destination at seller's expense. Seller is responsible for the import customs clearance and payment of customs duties and taxes at the buyer's end. Buyer assumes the cargo insurance and other costs and risks. |
| |
DDU Delivered Duty Unpaid |
{+ the named point of destination} The delivery of goods and the cargo insurance to the final point at destination, which is often the project site or buyer's premises, at seller's expense. Buyer assumes the import customs clearance and payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks. |
| |
DDP Delivered Duty Paid |
The delivery of goods and the cargo insurance to the final point at destination, which is often the project site or buyer's premises, at seller's expense. Buyer assumes the import customs clearance and payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks. |
| |
battle of forms |
conditions in contract is modified since some of them are advantageous for partners, and then being sent back and forth... |
| |
box rate |
cargo fare count by box size |
| |
bunker surcharge |
suddenly raised fuel |
| |
blank endorsement |
only name of transferor, no transferee |
| |
bank reference/trade reference |
reply to the transaction invitation |
| |
buyer's sample/counter sample |
buyer makes this and seller should make a similar one to get consent |
| |
sale by sample |
a method in which the quality is determined by a sample |
| |
sale by description |
includes sale by specification, by standard, by grade, and brand/trademark |
