Terms used in international trade business such Purchase Option,Protest,Pro forma invoice,Quota,Quotation etc.
This post explains about terms used in international trade business such Purchasing agent,Purchase Option,Protest,Pro forma invoice,Quota,Quotation ,Red clause 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
Prime letter of credit: In a back-to-back letter of credit transaction, the original letter of credit that is offered as security for another letter of credit (second letter of credit).
Principal: Main Party to a transaction.
PRIVATE EXPORT FUNDING CORPORATION (PEFCO): A U.S. company owned by the Export-Import Bank and a number of U.S. commercial banks and industrial corporations. It works with Ex-Im Bank by purchasing foreign buyers medium. PEFCO funds itself by public issues of long-term secured notes, unsecured medium-term obligations, short-term notes sales, and by credit lines from the banks and from Ex-Im Bank.
Pro forma invoice - Quotation in invoice form provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, specifications, terms of sale and payment. Sometimes spelled Proforma invoice.
Producer - Enter the full legal name, address, country, and tax identification number (if known) of the producer of the goods. If more than one producers’ goods are included on this Certificate, attach a list of the additional producers, including their legal name, address, country, and tax identification number (if known). If you wish to keep this information confidential, Canada & Mexico Customs will accept the notation “Available to Customs upon request.” If the producer and exporter/vendor are the same, enter “Same as exporter”; if the producer is not known, enter “Unknown.”
Product classification (Schedule B) number:Export statistics are initially collected and compiled in terms of approximately 9,000 10-digit commodity codes in the Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. The Schedule B is maintained by the U.S. Census Bureau and is based on the 4- and 6-digit headings and subheadings of the international Harmonized System (HS). Knowing your Schedule B number is important to conducting foreign market research, completing customs documentation, and complying with U.S. export regulations.
Promissory note - Unconditional written promise to pay a specified sum of money on demand or at a specified date to, or to the order of, a specified person, or to bearer. Promissory notes are negotiable instruments and perform more of less the same function as an accepted bill of exchange.
Protest: Legal procedure that may be administered by a notary public, evidencing non-payment or non-acceptance of a bill of exchange. Useful in support of a subsequent civil action against the defaulter. In a collection, the presenting bank may be instructed to arrange for this.
PSD : Pre-shipment Document
PSI - See Pre-shipment inspection.
PSV - Post-shipment verification.
PT: Preferential Treatment
PTL:Partial Total Loss
PU & D - See Pick up and delivery.
Purchase Option: A provision in a document that gives the party receiving the benefit the right to purchase the property at a future date. In leasing, a provision by which a lessee has the right to purchase the equipment at the end of the lease. The purchase option may be stated at a specified amount or at fair market value.
Purchasing agent - Agent who purchases goods in his/her own country on behalf of foreign importers such as government agencies and large private concerns.
Put Option: The requirement to purchase an asset at a particular time and at a predetermined price. This term is used in stock, commodities and leasing. In a lease transaction, this is a lessor's right to force the lessee (or some third party) to purchase the equipment at the end of the lease term. IRS guidelines prohibit put options in tax oriented leases.
PV:Petite Vitesse (slow goods train)
Qn:Quotation
Qty:Quantity
Quantitative restrictions - Explicit limits, usually by volume, on the amount of a specified commodity that may be imported into a country, sometimes also indicating the amounts that may be imported from each supplying country. Compared to tariffs, the protection afforded by QR's tends to be more predictable, being less affected by changes in competitive factors.
Quay - Solid structure alongside a navigable waterway, used for loading and unloading of ships. Think pier or wharf.
Quota: Explicit limit on the physical amounts of particular products which can be imported or exported during a specified time period, usually measured by volume but sometimes by value. The quota may be applied on a "selective" basis, with varying limits set according to the country of origin, or on a global basis which only specifies the total limit and thus tends to benefit more efficient suppliers.
Quota: quantity of a particular type of goods that a country allows to be imported before levying duty or restrictions.
Quota:The quantity of goods of a specific kind that a country permits to be imported without adding restrictions or imposing extra duties
Quotation - An offer to sell goods at a stated price and under specified conditions.
r & c.c. - Insurance clause: riots and civil commotion; also s.r.c.c. – strikes, riots, and civil commotion.
R/O:Routing Order
R/T - Revenue Ton.
RAFT:Revolving Acceptance Facility by Tender
Railway consignment note - Freight document indicating that goods have been received for shipment by rail. See Bill of lading.
Rate of Exchange:The basis upon which money of one country will be exchanged for that of another. Rates of exchange are established and quoted for foreign currencies on the basis of the demand, supply, and stability of the individual currencies. See "Exchange."
Rates - Ocean rates are classified in many ways, here is just a sampling:
Reciprocity - Reduction of a country's import duties or other trade restraints in return for comparable trade concessions from another country. Reciprocity includes the lowering of customs duties on imports in return for tariff concessions from other countries; the negotiated reduction of a country's import duties or other trade restraints in return for similar concessions from another country.
Recourse: The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse (i.e. if the Issuing bank subsequently does not pay).
Red clause - Authorization in a commercial letter of credit authorizing the advising/negotiating bank to make a limited advance to the seller before the shipment to the buyer is made. Such advances can be made up to 100% of the shipment value. These advances enable the seller to procure supplies for manufacturing or shipment. Negotiations of Red clause credits are restricted to the bank making the advances in order to assure that proceeds from the shipment are used to repay the advances.
The above details describes about terms called in international trade business such as Purchasing agent,Purchase Option,Protest,Pro forma invoice,Quota,Quotation ,Red clause 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.Terms used in international trade business such as PORT OF ENTRY,Pre-license check,Prepaid B/L,Presentation period
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