Guarantee furnished by a bank that in the event of **nonperformance of an agreement**, it will **reimburse the customer for the amount paid** (the advance payment).
B
Documentary credit which is granted to **another beneficiary** on the basis of an existing, **non-transferrable** documentary credit (**prime/master/original letter of credit**). Commonly used by middlemen when the original credit cannot be transferred and/or the terms of the two credits are not the same. Also termed **Counter Credit**.
**Irrevocable commitment of a bank to make payment** if the seller **fails to supply specific goods or services**. Main types include: **Bid Bond, Performance Bond, Advance Payment Bond, Payment Guarantee, and Credit Guarantee**.
A **surety bond** filed by contractors, guaranteeing that in the event a bid is accepted, the successful contractor will **sign the contract and furnish a Performance Bond**.
A document **evidencing the receipt of goods for shipment** and issued by a freight carrier. The document evidences **control of goods**, serves as a **receipt** for the merchandise, and as evidence of the carrier's **obligation to transport the goods** to their proper destination.
C
(... named port of destination). An **Incoterm** requiring the seller to deliver when the **goods pass the ship's rail in the port of shipment**. The seller pays costs and freight to the named port, but the **risk of loss or damage transfers to the buyer** upon passing the ship's rail. Seller must **clear goods for export**. Used only for **sea or inland waterway transport**.
(... named port of destination). An **Incoterm**. Similar to CFR, but the **seller must also procure marine insurance** against the buyer's risk of loss or damage during carriage. **Risk transfers to the buyer upon passing the ship's rail**. Seller is responsible for **export clearance**. Used only for **sea and inland waterway transport**.
(... named place of destination). An **Incoterm**. The seller delivers the goods to the **nominated carrier**, pays the **cost of carriage to the destination**, and **procures insurance** against the buyer's risk. The **buyer bears all risks** after delivery to the carrier. Seller is responsible for **export clearance**. May be used irrespective of the **mode of transport** (multimodal).
(... named place of destination). An **Incoterm**. The seller delivers the goods to the **nominated carrier** and pays the **cost of carriage to the destination**. The **buyer bears all risks and additional costs** occurring after the goods are delivered to the carrier. Seller is responsible for **export clearance**. May be used irrespective of the **mode of transport** (multimodal).
A guarantee to secure the **lender's claim on the borrower** in the event of the **loan not being repaid** as stipulated in the Agreement.
D
(... named place of destination). An **Incoterm** representing the **maximum obligation for the seller**. The seller delivers the goods to the buyer, **cleared for import** and not unloaded. The seller bears **all costs and risks**, including any **duty for import** in the country of destination.
(... named place of destination). An **Incoterm**. The seller delivers the goods to the buyer, **not cleared for import** and not unloaded. The seller bears all costs and risks, **other than any duty for import**, which is borne by the buyer.
E
**Special packing and crating** that is required for export shipping. Includes **sealing against a salt atmosphere** (sea air).
(... named place). An **Incoterm** representing the **minimum obligation for the seller**. The seller delivers when the goods are placed at the buyer's disposal at the seller's premises or another named place, **not cleared for export** and not loaded on any collecting vehicle.
F
(... named port of shipment). An **Incoterm**. The seller delivers when goods are placed **alongside the vessel** at the named port of shipment. The **buyer bears all costs and risks** of loss or damage to the goods from that moment. Seller must **clear goods for export**.
(... named place). An **Incoterm**. The seller delivers the goods, **cleared for export**, to the **carrier nominated by the buyer** at the named place. **Risk transfers to the buyer upon delivery to the carrier** or nominated person.
(... named port of shipment). An **Incoterm**. The seller delivers when the **goods pass the ship's rail at the named port of shipment**. The **buyer bears all costs and risks** of loss or damage from that point. Seller must **clear goods for export**. Used only for **sea or inland waterway transport**.
I
**Standard trade definitions** most commonly used in **international sales contracts**. Devised and published by the **International Chamber of Commerce (ICC)**.
L
A binding document that a buyer can request from his bank to **guarantee that the payment for goods will be transferred to the seller** upon the seller presenting the **necessary shipping documents** confirming the delivery. Technical term is **Documentary Credit**.
P
A guarantee that secures any **claims by the seller on the buyer for payment** of the contract price by the agreed date. Often used instead of a documentary credit where delivery is against **'open account'**.
A bond, usually issued by a bank, **guaranteeing specific monetary payment to a beneficiary** if the purchaser or maker **fails to perform or acts in violation of a contract**.
