Terms used in international trade business such as Adviory Capacity,Advisory capacity,after date,after sight, Agent/agency agreement

 

Terms used in international trade business such as Adviory Capacity,Advisory capacity,after date,after sight, Agent/agency agreement etc.

 

 

This post explains about terms used in international trade business such as Advance Against Documents,Adviory Capacity,Advisory capacity,after date,after sight, Agent/agency agreement,Air waybill,All risks insurance etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.

 

Terms used in international trade business

 

ADR:The European Agreement on the 'International Carriage of Dangerous Goods by Road'

 

Advance Against Documents (AAD): A loan made on the security of the actual documents covering a shipment.

 

Advance payment guarantee/bond - Guarantee that advance payments will be returned if the party having received such payments does not perform its part of the contract.

Terms used in international trade  business such as Adviory Capacity,Advisory capacity,after date,after sight,

Advance payment: Trading method in which the buyer pays for the goods before they are dispatched. This is used where the buyer is of unknown credit worthiness and is unable to obtain a letter of credit. This is also used as a matter of convenience for small orders.

 

Adviory Capacity: Used to indicate that a shipper's agent or agent or reprentative is not empowered to make definitive changes or adjustments without approval of the group or individual represented.

 

Advised letter of credit - Credit the opening of which the beneficiary is informed by a local bank.

 

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 favor. 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 a shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented. Compare Without reserve.

 

AESDirect - The US Census Bureau internet-based system for filing electronic export information (EEI) to the Automated Export System (AES). THis application is frree of charge to filers of EEI. EEI via AES replaced the SHipper's Export Declaration (form 7525V).

 

AF:Advanced Freight

 

AFDB:The African Development Bank and Fund. Established to foster economic and social development of the independent African nations and to promote their mutual economic cooperation. AFDB membership is limited to African countries. The African Development Fund (AFDF), a loan facility, directs its loan resources towards social development projects.

 

Affreightment (Contract of) - Agreement between a steam ship line (or similar carrier) and an importer or exporter in which cargo space is reserved on a vessel for a specified time and at a specific price. The importer/exporter is obligated to make payment whether or not the shipment is made.

 

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.

 

AFNOR:The French Standards Institute

 

AFTER DATE (A/D): A 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 - Phrase indicating that the date of maturity of a draft or other negotiable instrument is due a specific number of days after presentation of the draft to the drawee or payee. Compare At sight.

 

AFTER SIGHT (A/S): A payment on a draft or other negotiable instrument due upon presentation or demand to the payee.

 

AG:Aktiengesellschaft (German Company)

 

Agency/Distributor: A direct market entry method where the exporter contracts a partner or representative in the country of import to sell and/or represent their products. Although the terms agent, sales agent, sales representative, distributor, etc. are often misused interchangeably, there are some important differences to note.

 

Agent/agency agreement - Agent is an independent person or legal entity which acts on behalf of another (the ‘principal’). In international transactions, generally refers to a sales representative who prospects on behalf of a foreign principal, earning commission on sales eventually concluded between the principal and the ultimate client. See Foreign sales agent.

 

Agent/Sales Representative: Overseas, a sales agent or sales representative is the equivalent of a manufacturer’s representative in the United States. The representative uses the company’s product literature and samples to present the product to potential buyers. A representative usually handles many complementary lines that do not conflict. The sales representative usually works on a commission basis, assumes no risk or responsibility, and is under contract for a definite period of time (renewable by mutual agreement). The contract defines territory, terms of sale, method of compensation, reasons and procedures for terminating the agreement, and other details. The sales representative may operate on either an exclusive or a non-exclusive basis. Firms in the US, and other developed countries have stopped using the term “agent” and instead rely on the term “representative,” since agent can imply the authority, perhaps even a power of attorney, to make commitments on behalf of the firm he or she represents.

 

Agent:See Foreign Sales Agent

 

Agio - Extra amount over and above the market price which is paid in countertrade transactions and results from the particular costs of countertrade.

 

AGR imports - American goods returned.

 

AGVS:Automated Guided Vehicle System

 

AI - All Inclusive Rates.

 

AICS:Associate of the Institute of Chartered Shipbrokers

 

AID:Agency for International Development

 

AIM:Automatic Identification Manufacturers

 

Air waybill - A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and bligates itself to carry the consignment to the airport of destination according to specified conditions. Compare Inland bill of lading, Ocean bill of lading, and Through bill of lading.

 

ALADI:Spanish abbreviation for Latin American Integration Association

 

All Risks Clause:An insurance provision which provides additional coverage to an Open Cargo Policy, usually for an additional premium. Contrary to its name, the clause does not protect against all risks. The more common perils it does cover are theft, pilferage, non-delivery, fresh water damage, contact with other cargo, breakage, and leakage. Inherent vice, loss of market, and losses caused by delay are not covered.

 

All risks insurance: Insurance covering risks set out in the Institute of London Underwriters Cargo Clauses A. Covers fire, theft, loss at sea, damage during loading, transhipment and discharge but NOT strikes, riots, civil commotion or war piracy.

 

All-in - Freight quotation including all charges, often in one lump sum rather than broken down.

 

Allonge:An attachment to a Bill of Exchange containing endorsements. This is used when the back of the bill has been completed

 

The above details describes about terms called in international trade business such as Advance Against Documents,Adviory Capacity,Advisory capacity,after date,after sight, Agent/agency agreement,Air waybill,All risks insurance etc. These phrases may help importers and exporters on their day to day export import business activities. The readers can also add more information about terms used in international business trade below this post.continue reading:Terms used in international trade business such as absolute advantage,acceptance,acceptance draft, acceptance, accession,ad valorem rate

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