Trading Dictionary

Ad Valorem Duty -Duty based on a percentage of the cargo value.

Aircraft Manifest - list of individual consignments on an aircraft.

Air waybill - Air freight consignment document made out by, or on behalf of, the shipper. it is a document of title.

Aligned Forms - Series of forms designed so that information appears on each form in the pack as required by recipients.

Arbitration - Method of settling disputes which is usually binding on the parties involved. Many international trade contracts contain arbitration clauses stiplulating the method of arbitration.

Avilize - To guarantee payment by a bank of a bill of exchange.

Banker's Draft - A draft drawn by one bank on another bank in favour of a third party. Drafts should comply with the rules for cheques in the country in which they are payable.

Bill of Exchange - An unconditional order in writing, addressed by one party or person to another, signed by the party giving it, requiring the party to whom it is addressed to pay on demand or at a fixed or determinable future time a sum of money to, or to the order of, a specified party or the bearer.

Bill of Lading - A receipt of goods placed on board a ship, signed by the person or agent who contracts to carry them. It states the terms on which the goods are carried and is a current document of title.

Carnet - A document usually obtained from Chambers of Commerce which allows the temporary importation without payment of duty of commercial samples, exhibition materials and similar goods.

Certificate of Origin - A document identifying the goods shipped and expressly stating where the goods were manufactured, eg originated. They are usually certified by Chambers of Commerce.

Clean Bill of Lading - A bill of lading with no additional clauses declaring a defective state of the goods or packaging.

Commercial Invoice - An international invoice.

Consignment Note - A document which usually states the terms under which goods are carried. It normally accompanies the goods throughout transit.

Consolidation - The system of sending a number of consignments from various consignees to various consignors as one overal consignment. It is also known as groupage.

Customs Entry - The form on which the importer gives details of the goods for customs clearance.

Cross-trading - This is the process whereby a trade is concluded between two countries other than the country of residence of the agent.

Del Credere - The agent's guarantee to his principal for the solvency of the parties to whom he makes sales. It is included in agency agreements when required.

Demurrage - The money paid by the shipper or the seller for delays in loading, discharge or occupying space at a port or warehouse beyond a specified period. It usually arises from customs clearance delays.

Documentary Collection - The exporter's bank sends the appropriate documents, including that of title, to the importer's bank. The importer usually receives the documents in exchange for payment or acceptance of a term bill of exchange.

Documentary Letter of Credit - Document whereby, at the buyer's request, his bank authorizes the exporter to draw payment by a specified date of a particular shipment against the presentation of accurate and detailed documents in accordance with the terms of credit.

Exchange Rate - Price of one currency in terms of another.

Free container load - A consignment that is not shipped in a container.

Groupage - The system of sending various packages from different consignees under one agent to a common destination. It is also known as Consolidation.

MT760 - This is the USA form of the well known Bank Guarantee (BG). The funds due to the beneficiary are blocked by the bank. Therefore the beneficiary is guaranteed to receive the funds. An MT760 is also called an SBLC.

INCOTERMS - International Co-operation Terms.

SBLC - The Stand-by Letter of Credit has nothing to do with the classical documentary Letter of Credit. AN SBLC is the USA form of the well known Bank Guarantee (BG). The funds due to the beneficiary are blocked by the bank. Therefore the beneficiary is guaranteed to receive the funds. An SBLC is also called an MT760.

Trans-shipment - Transferring goods from one ship to another.

Unit Load Devices. ULD's play an important part in the loading and discharging of aircraft.

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