Export
Terminology
Exporting
employs a unique body of words and phrases, all of which the
beginner will soon become familiar with. For the time being
we might briefly consider a few of the more common terms used
in exporting circles:
Bills
of Lading - This is the document provided by the shipping
line as receipt and proof of ownership of the goods transported
on your behalf. Usually the document tends to come with multiple
copies, some of which are forwarded to the importer and others
to the paying bank as evidence of trading.
Certificate
of Origin - This is a statement by the exporter with the backing
of a Chamber of Commerce and sometimes an embassy. The document
states from which country the goods emanate.
Commercial
Invoice - More detailed and complex than everyday invoices
with which the reader will doubtless already be familiar,
this document contains a full description of goods, along
with packing marks, weights, insurance details and information
regarding transportation routes. Some countries require Chamber
of Commerce confirmation of the invoice's contents; others
require all information provided to be given in their own
official language.
FOB (Free
On Board) - The usual means of quoting export prices. The
price includes carriage to specified ports or docks, and charges
up to placing on board the ship or aircraft taking the items
to their intended destination. If shipped from Southampton,
the contract might then say 'fob Southampton'.
CIF (Cost,
Insurance, Freight) - A little further on from FOB this cost
is that of FOB plus insurance on board.
Price
Ex Factory - The price of your goods where the buyer has to
arrange and pay for all other costs of carriage, insurance,
etc.
Letter
of Credit - A common form of payment for exports, provided
and controlled by the paying bank.
Consolidated
- Where your exported goods are consolidated or grouped with
others, usually in a container, in order to obtain the benefits
of cheaper shipping rates.
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