C&F or CFR
Carriage and Freight
CAD: Cash Against Documents
Method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller, usually a bank or commission house.
CAFTA-DR: Central America and Dominican Republic Free Trade Agreement
One of a series of free trade agreements involving the U.S. and other countries. Benefits include duty-free or reduced-duty access, better overall market access, treatment equal to local companies, and intellectual property protection.
Customs document allowing special categories of goods to cross international borders without paying duties or posting bonds.
A company that transports goods (via truck, airlines and ship).
Case of Need
In a collection, party in the buyer's country who is designated by the seller to advise and/or give instructions in the event of problems or disputes. The collection order will specify whether the case of need is authorized to instruct the bank.
In a letter of credit transaction, money is deposited by the applicant with the issuing bank: e.g. when existing credit facilities are fully utilized.
Cash in Advance (advance payment)
Payment from a foreign customer to a U.S. exporter prior to actually receiving the exporter's products. It is the least risky form of payment from the exporter's perspective.
Certificate of Conformity
Signed statement from a manufacturer attesting that a product meets certain technical standards.
Certificate of Free Sale
Signed statement from the producer or exporter attesting that a product has been commercially sold within the country of origin.
Certificate of Inspection
A certificate usually required for industrial equipment and meat products.
CFR: Cost and Freight
Title, risk and insurance cost pass to buyer when goods are delivered on board the ship by seller and cross the ship's rails; seller pays the transportation cost to the ocean port of destination; used for ocean vessel port-to-port, shipments that are not containerized.
CHIPS: Clearing House Interbank Payment System
An electronic payment system, made up of member banks, which is based in New York.
CIA: Cash in Advance
Method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order.
CIF: Cost, Insurance and Freight
Title and risk pass to buyer when goods are delivered on board the ship by seller and cross the ship's rail; seller pays transportation and insurance cost to ocean port of destination; used for ocean vessel port-to-port, shipments are not containerized.
CIP: Carriage and Insurance Paid To
Title and risk pass to buyer when delivered to first carrier at named place or port of destination by seller, who pays transportation and insurance cost to destination; used for any mode of transportation, including air or ocean containerized and roll-on/roll-off shipments
Commonwealth of Independent States.
China Inspection and Quarantine Services.
Customs Import Value.
CLABE / CLAVE
A bank which is owned by the same parent company and is “affiliated” with another bank (such as Lafayette Ambassador, Fulton Bank of New Jersey, FNB Bank, etc.).
Clean Bill of Lading
A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damage or other irregularities.
A sight or time draft (bill of exchange) which is not accompanied by additional documents. Also referred to as "Clean Collection".
Swiss Bank Code; this is included in the IBAN (similar to a routing number).
When used as a verb, means to accelerate, terminate, liquidate or cancel transactions under an FX contract.
Chinese Yuan Renminbi.
Cash on delivery.
Bank in the importer's country to which the remitting bank sends a draft and/or documents for collection.
A draft drawn on the buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance.
In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.
Combined Transport Bill of Lading
A bill of lading used when more than one carrier is involved in a shipment, for example when a consignment travels by rail and by sea; sometimes referred to as a multi-modal bill of lading.
Documents exchanged between the buyer and the seller such as Commercial Invoices or transport documents that give detail about the goods and/or services contracted.
Seller's itemized list of goods and invoice shipped with descriptions, details, prices and costs addressed to the buyer. Serves as the basis for all other documents about the shipment.
Commercial Letter of Credit
Also called a documentary letter of credit, it is a written document issued by a bank (at the request of the bank's customer) to a specified beneficiary to make payment to the beneficiary under specified conditions.
In Letter of Trade (as distinguished from customary usage in domestic finance), any draft or other item to be presented for collection.
In export financing, the risk of the foreign purchaser’s ability and willingness to repay.
(1) Fee charged by a forfeiter for reserving funds to forfaiting transaction. (2) Fee charged by a negotiating bank for waiving recourse to the beneficiary in the event of non-payment by the issuing bank.
A public or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid.
Documents presented under a letter of credit that comply with all its terms and conditions. The banks are only obliged to pay the beneficiary if documents are compliant.
To assume an obligation to pay under a Letter of Credit. See “Confirming Bank”.
The act of a bank to add its commitment to that of the issuing bank to pay the beneficiary for compliance documents, although the act of confirmation does not relieve the issuing bank of its obligation to the beneficiary.
A letter of credit in which in which the issuing bank's obligation to pay is backed (confirmed) by a second bank.
Confirmed Letter of Credit
A letter of credit guaranteed by both the issuing and advising banks of payment so long as seller's documents are in order, and the letter of credit terms are met. The confirming bank assumes the credit risk of the issuing bank.
The correspondent bank that adds its confirmation to the issuing bank's letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit.
Company based in a foreign country that acts as a foreign buyer's agent and places confirmed orders with the U. S. exporters. The confirming house guarantees payment to the exporters.
The Importer, Buyer, or person to whom goods are destined to be delivered.
Method of payment for exports by which title to goods does not pass to the importer, and the goods are not paid for until they are sold to a third party.
A term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.
Consolidator's Bill of Lading
A receipt for merchandise issued by a freight consolidator (forwarder) to a shipper for goods to be consolidated with other cargoes prior to shipment.
The ability to retain control over goods dispatched to the buyer. Usually maintained through transport documents. Where there is credit risk, constructive control is important to the seller. Constructive control may also be important to a bank who has financed a transaction.
Commercial invoice prepared in the seller's country by the consulate of the buyer's country. Helps the government of the buyer's country control and regulate imports.
Goods shipped in a containerized fashion. Here, the carrier takes the word of the shipper and marks the bill of lading “Shipper’s load & count”. The carrier does not verify.
Written or oral agreement that is legally enforceable.
Control of Goods
Exercised through the transport documents, control of goods determines whether the buyer will be able to clear an inbound shipment without the transport documents, and thus without paying for the documents held at the bank.
The ability of owners of a currency to exchange it for foreign currencies in the open market.
COO: Certificate of Origin
A certified document showing the origin of goods, required by certain countries for tariff purposes.
Protection granted to the authors and creators of literary, artistic, dramatic, and musical works, sound recordings, and certain other intellectual works. A computer program, for example, is considered a literary work in the United States and some other countries.
An agreement between a corporate customer and the bank to accept wire and draft requests so the customer does not have to contact the branch every time they wish to send a wire.
A bank that, in its own country, handles the business of a foreign bank.
Another name for back-to-back letter of credit.
General expression meaning the sale or barter of goods on a reciprocal basis. There may also be multilateral transactions involved.
Additional duties imposed by an importing country to offset government subsidies in an exporting country when the subsidized imports cause material injury to domestic industry in the importing country.
Country of Origin
The country where a product is made, as determined by the amount of work done on the product in the country and attested to by a certificate of origin.
Risk that economic or political instability in the buyer's country will interfere with the buyer's ability to pay for goods supplied.
Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.
Commodity Purchase Agreement.
CPT: Carriage Paid To
Title, risk and insurance cost pass to buyer when delivered to first carrier at named place or port of destination by seller, who pays transportation cost to destination; used for any mode of transportation, including air or ocean containerized and roll-on/roll-off shipments.
In Letter of Shipping terms, this word is used interchangeably with Letter of Credit.
The risk that a buyer or seller will not complete a deal due to their inability to meet their obligations, or a deterioration in their financial position.
A type of fuel oil.
A type of fuel oil.
Currency Hedging Products
Help to guard against foreign exchange fluctuations with spot contract, forward contract and foreign currency options.
Foreign exchange transaction in which a party buys the right (but not the obligation) to buy or sell a given amount of foreign currency at a given exchange rate at either:
a given future date (or)
at any point within a future time period.
A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through customs for a client (importer).
Building or other secured area in which dutiable goods may be stored,
Document that traditionally accompanies exported goods bearing such information as the nature of the goods, their value, the consignee, and their ultimate destination. Required for statistical purposes, it accompanies all controlled goods being exported under the appropriate permit.
Document used to clear goods through customs in the importing country by providing evidence of the value of goods. In some cases, the commercial invoice may be used for this purpose.
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