Terms used in international trade business such as Lay Days,LAY TIME,Lease Rate,Legal weight,Legalization,Letter of Credit Advice,Letter of Indemnity etc.
This post explains about terms used in international trade business such as In international trade,Lay Days,LAY TIME,Lease Rate,Legal weight,Legalization,Letter of Credit Advice,Letter of Indemnity,Letter of credit 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
l.i.f.o. - In international trade: liner in free out, referring to a freight charge which includes the cost of loading in the port or departure but does not include unloading coasts in the port of destination. In accounting practice: last in first out.
L/A:Lloyds' Agent /Letter of Authority
L/C - Letter of Credit.
L/L:Long Length
L/T:Long Ton (240 lbs)
LAB:Lloyds Average Bond
LAFTA:Latin American Free Trade Association
Landbridge - Microbridge or a minibridge.
Latest shipment date: Date on a letter of credit by which the goods must have been shipped. When the Letter of Credit is presented, this date will be checked against the date on the transport document.
law of one price:In competitive markets free of transportation cost and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.
Lay Days:The number of days specified in a charter party to enable the charterer to load or unload cargo. They start to run as soon as the ship reaches the berth or mooring specified in the charter party. If just a port is specified, the ship must have reached a position within the port where the charterer can immediately dispose of its cargo. (This is known as the "Reid test"). The charter party can include a dispatch payment to reward the charterer for saving days when loading or unloading the cargo. Unless the charter party provides otherwise - for example by limiting them to good-weather working days - lay days run consecutively without a break. See also Demurrage
LAY TIME: The time allowed a ship to load or unload. If this number of days is exceeded, demurrage is incurred.
Laydays/laytime - Time allowed by the ship-owner to the charterer or shipper in which to load or discharge the cargo. May be expressed in days or hours, or tons per day. Set in running days (every calendar day), working days (excludes Sundays and holidays observed by the port), or weather working days (in addition, excludes days where operations are prevented by bad weather).
LCL - Less than container load. Refers to shipments of goods which will have to be packed together with other consignments in order to fill up a container.
LCL/FCL - Way of quoting container freight rates in which the carrier agrees to pack the container at the outset (LCL), but the unpacking at destination must be carried our by the receiver or consignee.
LCL/LCL - Way of quoting container freight rates in which the carrier agrees to pack the container on departure as well as unpack the container at destination.
LCL:Less than Full Container Load
LDC:Less Developed Country
Ldg & Dly:Landing and Delivery
ldg. - Loading.
Lds:Loads
lead strategy:Collecting foreign currency receivables early when a foreign currency is expected to depreciate, and paying foreign currency payables before they are due when a currency is expectecd to appreciate.
Lease Rate: (Rental Payment) The periodic rental payment to a lessor for the use of assets. Others may define lease rate as the implicit interest rate in minimum lease payments.
Lease: A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate.
LEC:Local Export Control
Legal weight - Weight of the goods plus any immediate wrappings which are sold along with the goods; e.g. the weight of a tin can as well as its contents. See Net weight.
Legalization - Approval of export documents by a foreign consulate or other entity in the United States .
Lessee: The person gaining use of the property or equipment being leased.
Lessor: The party to a lease agreement who has legal or tax title to the equipment, grants the lessee the right to use the equipment for the lease term, and is entitled to the rentals.
Letter of credit (L/C) - Financial document issued by a bank at the request of a buyer guaranteeing payment to the seller if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary.- A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults.- A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.
Letter of Credit Advice - Communication by the advising bank that a letter of credit has been issued. The primary responsibility of the advising bank is to take care in establishing the authenticity of the credit.
Letter of Credit-Revolving - Credit which includes a provision for reinstating its face value after being drawn under within a stated period of time. This kind of credit facilitates the financing of on going regular purchases.
Letter of Credit-Standby - Issued for the express purpose of effecting payment in the event of default. The issuing bank is prepared to pay but does not expect to as long as the underlying transaction is properly fulfilled.
Letter of Indemnity (LOI) - Document commonly used in international trade to allow a carrier to release goods to a receiver who is not yet in possession of the bill of lading.
Leveraged Lease: In this type of lease, the lessor provides an equity portion (usually 20 to 40 percent) of the equipment cost and lenders provide the balance on a nonrecourse debt basis. The lessor receives the tax benefits of ownership.
Lex mercatoria - Internationally accepted general trade practices; the international, informal law of merchants.
LI:Letter of Indemnity
Liberalization: Reductions in tariff and other measures that restrict world trade, unilaterally, bilaterally or multilaterally.
LIC:Local Import Control
The above details describes about terms called in international trade business such as In international trade,Lay Days,LAY TIME,Lease Rate,Legal weight,Legalization,Letter of Credit Advice,Letter of Indemnity,Letter of credit 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 International transportation , Introduction,Inward collection,Irrevocable,Irrevocable,Joint venture
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