Glossary for International Trade

By Marcus Arnold,2014-08-11 18:03
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Glossary for International Trade

    Glossary for International Trade

    International Trade 国际贸易

    International trade is the exchange of commodities or services between different nations. Foreign trade is the exchange of goods or services between one nation or area with other nations or areas. All foreign trades together form international trade.

    The INCOTERMS 国际贸易术语解释通则

    The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, CFR and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines trade contract responsibilities and liabilities between the buyer and the seller. Free Trade


    (UCP) 联合国国际货物销售合同公约

    A set of guidelines, rules and definitions governing Letters of Credit published by the International Chamber of Commerce. For those banks that subscribe, UCP facilitates the standardization of Letters of Credit.

    Theory 自由贸易主义

    Free trade theory advocates the free flow of goods and services between nations. Protectionism holds that governments should intervene in trade to prevent the free flow of foreign products into their domestic markets.

    Offer 发盘

    According to the United Nations Convention on Contracts for the International Sale of Goods, Proposal to conclude a contract addressed to one or more specific persons constitutes an offer if it is sufficiently definite and indicates the intention of the party making the offer to be bound in case of acceptance.

    Importer 进口商

    The party that has contracted to buy goods, also known as the buyer or applicant.

    Exporter 出口商

    The party that has contracted to sell goods, also known as the seller or beneficiary. Contract Negotiation 合同谈判

    Contract negotiation is the process by which the seller and the buyer negotiate the terms and conditions of a transaction with the intent of arriving at an agreement. The purpose of contract negotiation is to conclude a sales contract. It can take two forms: oral negotiation and written negotiation.

    Export Mix 出口商品结构

    Export mix means the composition of exported goods. From its export mix we can see the competitive advantages and disadvantages of a nation. For example, the export mix of the U.S.A. and China is quite different.

    FCL 整箱货

    The FCL means the load reaches its allowable maximum (or full) weight or measurement. In practice, however, the FCL in ocean freight does not always mean packing a container to its full payload or full capacity. For example, an exporter books a 20’ container that is intended for a consignee at the FCL flat rate of US$1,500. If the

    consignment occupies only 500 cu. ft. and weighs 5,000 kgs., the case is still FCL and the exporter has to pay US$1,500.

    LCL 拼箱货

    If an exporter intends to pack a container to full capacity or full payload with consignments for the same destination for two or more consignees, the case is LCL and the carrier will charge the LCL freight rate on each consignment. In LCL arrangement, the shipper is required to deliver the cargo to the carrier’s container freight station for containerization. Thus there is no guarantee that the two or more consignments from the same exporter will share the same container. In some cases, an exporter is allowed to pack a container at his premises in the LCL arrangement. In this case, the carrier will use the same container to pack in more cargo from other shipper(s) to make a full container load at the container freight station.

Quality of Commodity 商品的品质

    The quality of commodity is a combination of intrinsic attributes and the outer form or shape of a commodity.

    Sample 样品

    A sample is a product, which is selected from a large consignment or which is specially designed and processed.

    Sale by Sample 凭样品买卖

    Sale by sample means a sale made on the basis of a sample, that is the quality and condition of the bulk of the goods will be at least as good as that of the sample.

    Sale by Seller’s Sample 凭卖方样品买卖

    When the seller supplies the sample, it is sale by seller’s sample. When the buyer

    offers the sample, it is sale by buyer’s sample.

    Duplicate Sample 复样

    In the case of a sale by seller’s sample, the seller should keep one or more equivalent samples for himself when delivering a sample to the buyer. The sample kept by the seller is called a duplicate sample.

    Confirming Sample 确认样品

    In the case of a sale by buyer’s sample, the seller will send to the buyer a sample equivalent to that supplied by the buyer for the buyer’s confirmation and approval. When the buyer accepts the sample made by the seller, it will replace the buyer’s sample as the sample for sale. The sample made by the seller based on the buyer’s sample is called a counter sample or confirming sample.

    Quality Latitude 品质机动幅度

    Quality latitude means that the seller and the buyer both agree that the quality of the goods delivered can vary within an agreed range.

    Gross Weight 毛重

    Gross weight is the total weight of the commodity and the tare, i.e. the package weight.

    Net Weight 净重

    Net weight is the weight of the commodity excluding the tare. Unless otherwise specified the weight of commodity usually refers to the net weight of it.

    Conditioned Weight 公量

    Conditioned weight is the weight obtained by deducting the actual moisture content of a commodity and adding the standardized moisture content. Conditioned weight is applied chiefly to commodities that have a high unit value and tend to absorb moisture from the air.

    Theoretical Weight 理论重量

    If the weight of each item is approximately the same, the total weight of a consignment can be considered as the product of the individual weight of one item times the number of items. The weight got in this way is called the theoretical


    Quantity Allowance 数量机动幅度

    Quantity allowance is the allowed deviation in quantity on delivery from that stipulated in the contract. The quantity clause in a sales contract usually specifies the quantity allowance. The purpose of the quantity allowance is to convenience delivery, shipment or preparation of goods. We can stipulate the quantity allowance in two ways: the more or less clause or using approximate quantity.

    More or Less Clause 溢短装条款

    More or less generally includes: the quantity allowance percentage; which party determines the quantity allowance; and the price of the exceeding quantity.

    Outer Packing 外包装

    Outer packing or big packing is mainly employed against the shipping hazards.

    Inner Packing 内包装

    Inner packing, or immediate packing or packaging helps promote the merchandize, which is highly appreciated in the school of marketing.

    Containers 集装箱

    The practice of packing goods in large metal containers, although relatively expensive, has become increasingly popular. Advantages include the reductions in water damage, in handling damage, and in pilferage. And today most ports and ships are equipped to handle containers.

    Shipping Marks 运输标记

    The marks and numbers on a shipment identify the cargo in the same way an ID card identifies a person. The exporter, customs, carriers, and importers rely on them to distinguish one consignment from another. The marks and numbers identify the cargo, not the consignee, and they must be easily identifiable.

    Quotation 报价

    A quotation describes the product, states price, sets the time of shipment, and specifies terms of sale and terms of payment.

Pro Forma Invoice 形式发票

    The term pro forma is from Latin, and means “as a matter of form”. The pro forma invoice is a very important document in the quotation process, and a company will often include it in a response to a potential buyer’s enquiry.

    Commission 佣金

    When selling through an agent, the commission may be included in the quoted price. The commission may be reflected using “&C” {+ the percentage rate of commission}

    or “C” {+ the percentage rate of commission} after the trade term. For example, CIF&C5 Bangkok (or CIFC5 Bangkok) means that the quoted price includes a 5% commission.

    Cost-plus Method of Pricing 成本加利定价法

    In the cost-plus method of calculation, the exporter starts with the domestic manufacturing cost and adds administration, research and development, overhead, freight forwarding, distributor margins, customs charges, and profit.

    Ocean Freight 海洋运输

    Large items, bulk commodities and items that do not require fast delivery can be shipped economically by sea.

    Conference Shipping 班轮运输

    Conference shipping is provided by the conference carrier or by a member of a freight conference. The freight conferenceconference or steamship conference or liner

    conferenceis a group of vessel operators who operate on the same routes and cooperate on shipping schedules at the standardized freight rates between ports.

    Charter Shipping 租船运输

    Charter shipping is a tramp service. The term tramp, as used in ocean shipping, refers to a cargo ship that is not operating on regular routes and schedules. A tramp picks up cargo only when it is chartered (hired) from the ship operator.

    Charter Party 租船合同

A charter partycharter party contractis a written contract between the ship operator

    and the charterer (shipper). The contract normally includes details of the ports, of loading and discharge, freight rate and time involved in the voyage(s).

    Voyage Charter 程租船

    A ship is chartered for a single journey that may involve more than one port of call. The ship operator crews and operates the ship and the operator’s own ship’s master is in control of the ship.

    Time Charter 期租船

    A ship is chartered for a period of time. This type of charter shipping is similar to a voyage charter in the crewing and operating of the ship. The contract may call for a specific or unlimited number of voyages within the agreed time.

    Bareboat Charter 光船租船

    The term bareboat means a ship without crew and ship’s master. The charterer (shipper) crews and operates the ship within a period of time, usually a number of years.

Clean Bill of Lading 清洁提单

    The clean bill of lading bears an indication that the goods were received without damage, irregularities or short shipment, usually the words "apparent good order and condition", "clean on board" or the like are indicated on the B/L.

    Long Form Bill of Lading 全式提单

    In a long form bill of lading the terms and conditions of carriage are printed on the reverse (back) of the bill of lading. The long form bill of lading is commonly used in international shipping.

    Received Bill of Lading 已收待运提单

    The received bill of lading does not prove that goods have been shipped. It only acknowledges that goods have been received by the carrier for shipment. Therefore, the goods could be in the dock or warehouse.

    On Board Bill of Lading 已装船提单

The on board bill of ladingshipped bill of ladingproves that goods have been

    shipped, as evidenced by the pre-printed wording or the on board notation (e.g. "on board", "laden on board" or "shipped on board") on the bill of lading.

    Straight Bill of Lading 记名提单

    In a straight bill of ladingnon-negotiable bill of ladingthe title to the goods is

    conferred directly to a party named in the letter of credit (the importer usually), as such title to the goods is not transferable to another party by endorsement. In other words, the bill of lading is not negotiable.

    Order Bill of Lading 指示提单

    In an order bill of ladingnegotiable bill of ladingthe title to the goods is conferred to

    the order of shipper or to the order of a named party in the letter of credit (the issuing bank usually). An order bill of lading provides the shipper or the named party with the title to the goods. The title to the goods is transferable to another party by endorsement, usually on the reverse (back) of the bill of lading (B/L) by the title holder of the B/L. If an endorsement of the B/L is required in the letter of credit (L/C), all the originals of the B/L must be endorsed.

    CY versus CFS 堆场到中转站

    The CY and CFS terms apply to the manner and location of the cargo delivery and receipt in a container service. The CY is the delivery (or receipt) of a whole container from (or at) the shipper’s or the forwarder’s (or the consignee’s) cargo yard or

    premises. CFS is the delivery (or receipt) of loose cargo from (or at) the carrier’s container freight station.

Insurance Policy 保险单

    The insurance policy is the contract made between the insurer and the insured. A sample insurance policy and a detailed explanation are given below.

    Insurer 保险人

    The insurer is the party providing insurance service and who makes the payment in case of loss. For example, PICC, the People’s Insurance Company of China, is the biggest insurer in China.

    Insured 被保险人

    The insured is the party insured against loss and to whom compensation is made. In foreign trade, the buyer is most often the insured. The insured may sometimes be the seller who affects the insurance.

Insured Amount 投保金额

    The insured amount is the amount of money the insurer agrees to pay in the event of damage to, or loss of, insured goods. In other words, the insured amount is the upper limit of compensation payable to the insured in case of loss. In international trade, the insured amount is often the CIF value of the consignment plus 10%, the additional 10% plus compensating for the loss of expected profit from the transaction.

    Premium 保险金

    The premium is the money paid to the insurer for providing the insurance service. The premium is always a percentage of the insured amount.

    General Extraneous Risks 一般外来风险

    General extraneous risks are risks due to theft, rain, leakage, shortage, breakage, dampness, mildewing, heating, taint of odor, hooking and rusting.

    Special Extraneous Risks 特别外来风险

    Special extraneous risks are risks such as on deck, war strikes, failure of delivery and rejection, etc.

    Actual Total Loss 实际全损

    Actual total loss means the insured goods upon arrival are badly damaged, or have been lost or found valueless.

    Constructive Total Loss 推定全损

    Constructive total loss occurs when the actual loss of the insured goods is unavoidable, or the ship or when the consignment has to be abandoned because the cost of salvage or recovery will exceed the value of the ship and the consignment in sound condition upon arrival.

    Particular Average 单独海损

    Particular average is a partial loss suffered by the party whose consignment is partially lost or damaged.

    General Average 共同海损

    General average is the partial loss resulting from a deliberate act of the ship’s master, such as throwing overboard all or part of the cargo to save the ship. In this case, all parties involved will share the loss of the specific consignor.

Right of Subrogation 代位权

    After paying a claim to the insured, the insurer is subrogated to all rights and claims the insured has against the third party that caused the damage to the goods. The insured, after receiving the indemnity, will commonly sign a letter of subrogation to the insurer.

Shipping Quality, Shipping Weight or Quantity 离岸质量;离岸数量

    In this mode of inspection, the seller and the buyer agree that the commodities are inspected before shipping, at the place of shipment, and the resulting inspection certificate serves as final proof of the quality and quantity of the commodities shipped. The inspecting institution is usually a third party agreed upon by the two parties. This kind of inspection deprives the buyer of the right to re-inspect the goods upon arrival and so is disadvantageous to the buyer.

    Landing Quality, Landing Weight or Quantity 到岸质量;到岸重量或数量

    In this mode of inspection, the seller and the buyer agree that the quality and quantity of the commodities are inspected at the place of destination, and that the inspection certificate, issued by the inspection institution at the place of destination, is the final proof of quality and quantity of the commodities. In this case, any loss in quality and quantity during transit is borne by the seller, to the disadvantage of the seller.

    Shipping Quality and Quantity for Negotiation, Re-inspection at Destination


    In this mode of inspection, the seller and the buyer agree to inspect the quality and quantity of the commodities at the place of shipment, and the inspection certificates issued at the place of shipment can be used by the seller as negotiation documents. The seller and buyer also agree that the buyer has the right to re-inspect the quality and quantity of the goods at the place of destination and make a claim for compensation. This mode of inspection is relatively fair to both the seller and the buyer and is the most widely used in international trade.

    Legal Inspection 法定检验

    Legal inspection is the compulsory inspection of imported and exported goods. The purpose of legal inspection is to insure the quality of exported goods and protect the safety and health of the people. Import and export commodities which are included in the List of Commodities and import and export commodities subject to inspection by the commodity inspection authorities under other laws or administrative rules and

    regulations must be inspected by the commodity inspection authorities or inspection organizations designated by the State Administration for Commodity Inspection.

    Force Majeure 不可抗力

    Force majeure (French: superior force) means an event outside the control of either party to a contract (such as a strike, riot, war, act of God) that may excuse either party from fulfilling his contractual obligations in certain circumstances, provided that the contract contains a force majeure clause. According to international trade practice, a contract may be suspended or terminated as a consequence of the force majeure.

    Customs 海关

    The customs is a governmental organization which checks and supervises the import and export for a nation.

    Bill of Exchange 汇票

    A bill of exchange is an unconditional order in writing, addressed by one person (the drawer) to another (the drawee) and signed by the person issuing it. It requires the drawee to pay on demand, or at a fixed or determinable future time, a specified sum of money to, or to the order of, a specified person (the payee) or to the bearer.

    Presentation 提示

    Presentation is the act, by the holder of the bill of exchange, of taking the bill to the drawee and demanding that he make payment or accept the bill of exchange.

    Acceptance 承兑

    Acceptance is the act, by the drawee, of writing down “accepted” on the bill, signing his name and the dating it. It represents a formal promise by the drawee to pay the bill when it matures. If the acceptor refuses to pay when the bill matures, the payee is entitled to sue him.

    Endorsement 背书

    Endorsement is the act, by the holder of the bill, of signing his name or writing the name of the person to whom the bill is transferred on the back of the bill.

    Discount 贴现

    Discounting the bill means that the bank or discount house will purchase the bill and pays the holder of the bill an amount of money less than the face value of the bill.

    Dishonor 拒付

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