Terminologies used in International Trade and Documentation
1. Del Credere Commission: This is an extra commission received by the del credere agent for indemnifying the goods against loss or guarantee that the buyer will pay for the goods.
2. Bonded Warehouse: This is a place where goods whose customs duties have not been paid are stored until they are settled. It is usually located at the port.
3. Customs Drawback: This is repayment of the customs duties paid on imported materials which are to be re-exported.
4. Documentary Bill: This is a bill of exchange to which are attached such documents as a bill of lading, Invoice, Insurance policy, dock warrant etc.
5. Free Port: Free port allows goods that are to be re-exported to enter free without the payment of customs duties.
6. Demurage: This is a term used in connection with charter party in which the charterer pays an extra charge for retaining a ship beyond the permitted time for loading and offloading in a port.
7. Advalorem Duty: This is a form of tax or duty which is calculated or paid based on the value of the goods and not on their quantity.
8. Letter of Credit: This is a document authorizing a bank abroad to pay the bearer a specified sum of money for an international trade transaction.
1. What is tariff?
2. Give five reasons why countries may restrict foreign trade
3. Mention five tools for the restrictions of foreign trade
4. List and explain five documents used in foreign trade
5. State five methods of payment in foreign trade
6. Explain the following documents used in International trade
b. Bill of lading
c. Consular invoice
d. Certificate of origin
e. Bill of exchange (SSCE, 2015)View Answer