| Acceptance |
This is a term that is used in export contracts
and implies that the buyer agrees to purchase goods
at a stated specific price and according to stated
specific terms. This term has several related meanings:
(1) A time draft (or bill of exchange) that the drawee
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. An agreement
to purchase goods at a stated price and under stated
terms. |
| Acceptance credit |
A documentary credit which requires the beneficiary
to draw a usance bill for subsequent acceptance by
the issuing bank or the advising bank or any other
bank as the credit stipulates - see Documentary Credits. |
| Accession |
The process by which a country becomes a member
of an international agreement (e.g. the GATT). |
| Accommodation Bill |
In the context of fraud, a bill drawn without a
genuine underlying commercial transaction. |
| Accountee |
Another name for the applicant/opener of a documentary
credit i.e. the importer = the person for whose account
the transaction is made. |
| Actual Total Loss |
Marine insurance term; a ship is usually considered
an actual total loss for insurance purposes when it
has been listed as missing. |
| Ad Hoc Charter |
A one-off charter operated at the whim of the airline
or charterer. |
| Ad Valorem |
A Latin phrase, meaning "according to value".
An ad valorem duty is an import duty based on the
value of an article as defined in the customs law
of a particular country, rather than on weight or
volume. A percentage of that value is charged, for
example 5% ad valorem. A freight rate set at a certain
percentage of the value of an article is known as
an ad valorem rate. (See Ad Valorem duty) |
| Ad Valorem Rate |
Rate determined according to the value of the imported
merchandise 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. |
| Advance Against Documents |
A loan made on the security of the documents covering
the shipment. An alternative to acceptance financing. |
| Advice Of Fate |
The Collecting Bank informs the Remitting Bank of
non- payment/non-acceptance or (for D/A bills) of
acceptance and the bill maturity date |
| Advising |
Act of conveying the terms and conditions of a DC
to the beneficiary. The advising bank is the issuing
bank agent, usually located in the beneficiary country
- see Export - DC Advising. Advising also involves
authentication i.e. advising bank should take reasonable
care to check the apparent authenticity of the credit
(ICC UCC 500 Art 7). |
| 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 favour. The advising bank fully informs the exporter
of the conditions of the letter of credit without
necessarily bearing responsibility for payment. |
| Advisory Capacity |
A term indicating that shipper's agent or representative
is not empowered to make definitive decisions or adjustments
without approval of the group or individual represented. |
| Affreightment, Contract Of |
An agreement between a shipping company and an importer
or exporter for cargo space on a vessel at a specified
time for a specified price. The importer/exporter
is liable for payment whether or not the shipment
is made at the time agreed upon. |
| Aframax |
An Aframax ship
is an oil tanker with capacity between 75 000 and
120 000 deadweight tonnage. Aframax tankers are
mostly employed in the intra-regional trade of the
North Sea, the Caribbean, the Far East and the Mediterranean.
The term is based on the Average Freight Rate
Assessment (AFRA) tanker rate system.Source |
| After Date (A/D) |
Payment on a draft or other negotiable instrument
due a specified number of days after the date the
draft is presented to the payee. |
| After Sight (A/S) |
Payment on a draft or other negotiable instrument
due upon presentation or demand to the payee. |
| After Sight (A/S) |
Payment on a draft or other negotiable instrument
due upon presentation or demand to the payee. |
| Air Cargo Agent |
A type of freight forwarder who specialises in air
cargo and acts for airlines that pay him a fee. The
person may be registered with the International Air
Transport Association, IATA (See also Air Freight
Forwarder; Forwarder, Freight Forwarder, Foreign Freight
Forwarder). |
| Air Freight Forwarder |
A type of freight forwarder who specializes in air
cargo. He usually consolidates the air shipments of
various exporters, charging them for actual weight
and deriving his profit by paying the airline the
lower consolidated rate. He issues his own air waybills
to the exporters, is licensed by the CAB (Civil Aeronautics
Board) and has the status of an indirect air carrier
(See also Air Cargo Agent, Forwarder, Freight Forwarder,
Foreign Freight Forwarder.) |
| Airway Bill |
A non-negotiable contract for carriage of air transportation
between an air carrier and a shipper, or an air carrier
and an air freight forwarder. In the latter case the
forwarder, as an indirect air carrier, issues his
own house air waybill to the shipper. |
| All-Risk Clause |
An insurance clause providing that all loss or damage
to goods is insured except that caused by the shipper
(referred to as inherent vice). |
| AITA |
The German/French acronym for International Air
Transport Association, IATA. |
| All-Risk Insurance |
A clause included in marine insurance policies to
cover loss and damage from external causes, such as
fire, collision, pilferage, etc. but not against innate
flaws in the goods, such as decay, germination, nor
against faulty packaging or loss of market, nor against
war, strikes, riots and civil commotions (See Marine
Insurance). |
| Alongside |
A phrase referring to the side of a ship. Goods
to be delivered "alongside" are to be placed on the
dock or barge within reach of the transport ship's
tackle so that they can be loaded aboard the
ship. |
| Alteration |
A change in the boundaries of an activated zone
or subzone. |
| Amendment |
Alteration to the terms of a DC; amendments must
stem from the applicant, be issued and advised to
the beneficiary; the beneficiary has the right to
refuse an amendment if the credit is irrevocable -
see Amendments to DCs. |
| Anti-Dumping Duty |
A tariff imposed to discourage the under-priced
(below foreign countries domestic market) sale of
foreign goods in the U.S. market. |
| Applicant |
One who applies to his bank to issue a documentary
credit; in the majority of credits issued the applicant
is an importer of goods. |
| Arbitrage |
The process of buying foreign exchange, stocks,
bonds, and other commodities in one market and immediately
selling them in another market at higher prices. |
| Arbitration Clause |
A clause in a contract detailing how any contract
disputes will be settled. |
| Asian Dollars |
U.S. dollars deposited in Asia and the Pacific Basin. |
| Asia-Pacific Economic Cooperation (APEC) |
An organization to promote open trade and practical
economic cooperation in the Asia-Pacific region. It
also aims to advancing Asia-Pacific economic dynamism
and sense of community. |
| Association Of Southeast Asian Nations (ASEAN) |
An economic cooperation. Members countries include
Thailand, Japan, Vietnam, Indonesia, Malaysia, Singapore,
Philippines, and Brunei. The ASEAN Alliance for Mutual
Growth (AMG) is a multilateral initiative to encourage
mutually beneficial trade relations between the United
States and the ASEAN countries. |
| ATA Carnet |
See Carnet. |
| Attributive Basis |
Method of accounting for merchandise where direct
identification of the goods with the shipment as admitted
to the zone has been lost. |
| Audit-Inspection |
Procedures provide the framework for Customs to
reduce on-site supervision of zones and for zone operators/users
to increase zone operating flexibility through the
method of supervising zones. |
| Avalise |
The act by a bank in guaranteeing payment of a bill
of exchange or promissory note by endorsing the reverse
with the words good per aval and signed by the bank,
or by the issuance of a separate guarantee. |
