International commerce terms. INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS 2019-02-05

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Glossary >> globalEDGE: Your source for Global Business Knowledge

international commerce terms

Andean Pact - A regional trade pact that includes Colombia, Ecuador, Peru, and Bolivia. Box Colloquial term for a shipping container. The export clearance obligation rests with the seller. Customs-Bonded Warehouse Building or other secured area in which dutiable goods may be stored, may be manipulated, or may undergo manufacturing operations without payment of duty. This type of payment is usually only made for very small shipments or when goods are made to order. Payment is typically withheld by the financial institution distributing the payment. Currency Option - A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date.

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INCOTERMS, International Commercial Terms, shipping terms

international commerce terms

G-8 - The G-7 countries plus Russia. It is one of four major development banks around the world. Predatory pricing is an abuse of dominant position, and is illegal in several countries. They are therefore not to be used for containerized freight, other combined transport methods, or for transport by road, air or rail. Foreign Equity Requirements - Investment rules that limit foreign ownership to a minority holding in a company. Because of this it is common for contracts for exports to these countries to use these Incoterms, even when they are not suitable for the chosen mode of transport.

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U.S. Sea freight Calculator. Glossary of Shipping Terms.

international commerce terms

Soft Currency - A currency which is not readily accepted in exchange for other currencies or convertible to gold. However, the goods are considered to be delivered when the goods have been handed over to the first or main carrier, so that the risk transfers to buyer upon handing goods over to that carrier at the place of shipment in the country of Export. Commonwealth - An association of independent states that promotes cooperation, consultation, and mutual assistance among members. It was established in 1991 in response to major changes in the political and economic climate in central and eastern Europe. Investment Agreement - An agreement specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project.

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Know Your Incoterms: An Overview

international commerce terms

It mobilizes knowledge, skills, information, and technology to promote productive employment, a competitive economy, and a sound environment. Transaction Statement - A document that clearly outlines the terms and conditions agreed upon between an importer and an exporter. Be clear about your policy on tariffs—specifically, who pays and when payment will be due. Commingling - Method of packing a shipment in which various goods subject to differing duties are grouped together. Appropriate Incoterms should be negotiated with your suppliers and included as part of the terms and conditions of your purchase order. Secondary Market Research Collection of data from various sources, such as trade statistics for a country or a product.

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Know Your Incoterms: An Overview

international commerce terms

National Treatment - A country accords no less favorable treatment to imported goods than it does to domestic goods. Department of Commerce program that certifies international trade events so U. Joint Venture Independent business formed cooperatively by two or more parent companies. Realignment - The coordinated revaluation and devaluation of the currencies of several countries. It is also unlawful to make a payment to any person while knowing that all or a portion of the payment will be offered, given, or promised, directly or indirectly, to any foreign official for the purposes of assisting the company in obtaining or retaining business. It is issued by the carrier, whether an airline or a freight forwarder, as a non-negotiable document serving as a receipt to the consignor for the goods, and containing the conditions of transport.

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Know Your Incoterms: An Overview

international commerce terms

Wharfage Charge - A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. Promissory Note - Financial document in which the buyer agrees to make payment to the seller at a specified time. Economic Integration - The integration of commercial and financial activities among countries through the abolishment of economic discrimination. The Shipper is responsible for origin costs including export clearance and freight costs for carriage to named port. Fixed Forward Contract - Currency is bought or sold at a given future date. High-withholding-tax Interest Income - In the U. Continuous Quotation System - A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares.

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INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS

international commerce terms

Additionally, the Seller pays for the loading and transportation of the goods from their premises to a named point of destination. Withholding Tax - A tax on dividend or interest income that is withheld for payment of taxes in a host country. N National Tax Policy - The way in which a nation chooses to allocate the burdens of tax collections across its residents. Maquiladoras are one type of foreign direct investment. Power Distance - The extent to which a society accepts hierarchical differences.

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E

international commerce terms

Duty - A tax imposed on imports by the customs authority of a country. In most cases, the freight forwarder will assume the legal liabilities of acting as a carrier G Gross Weight The total weight of a shipment of goods, including their packaging such as crates, pallets etc. Bureau of Customs and Border Protection to increase the security of cargo containers shipped to the United States. Embargo - A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country, typically placed in a time of war. Freight Forwarder A person or corporation who arranges transport of goods on behalf of either the seller or buyer.

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International Commerce Terms

international commerce terms

A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Signed by the carrier, whether a shipping line or a freight forwarder, it serves as a receipt to the consignor for the goods, as evidence of the contract of transport containing the conditions of transport, and as a document of title by which possession of the goods can be transferred. Letters of credit and drafts may be paid immediately or at a later date. The organization mandates the lowering of tariffs and other trade barriers in hopes of eventually eliminating restrictions on the movement of capitol, labor, goods and services. Clearance - The completion of customs entry requirements that results in the release of goods to the importer. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point.

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INCOTERMS, International Commercial Terms, shipping terms

international commerce terms

The documents include as a minimum the invoice, the insurance policy, and the. Interest Rate Risk - The risk of unexpected changes in an interest rate. Operational Efficiency - Market efficiency with respect to how large an influence transactions costs and other market frictions have on the operation of a market. Capitalism - An economic system that is based on private ownership; economic development is proportionate to and dependent upon the accumulation and reinvestment of profits. Merchandise may be stored, used or manufactured in the zone and reexported without duties being paid. Established by the General Treaty on Central American Economic Integration signed by Guatemala, Honduras, El Salvador, and Nicaragua in December 1960, its membership expanded to include Costa Rica in July 1962.

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