TERMS & ABBREVIATIONS - COMMODITY
TERMS & ABBREVIATIONS
ASWP - Any World Safe Harbor.
TBD - to be determined.
T / T - Telegraphic transfer.
C / O - Certificate of Origin .
BCL - Comfort Letter Bank.
Also known as a Letter Capability Bank, or Bank Confirmation Letter, this is a letter from the buyer's bank confirming its ability to meet certain payment requirements. This letter says that the buyer has sufficient funds to cover the cost of the order. It should, however, be understood that this does not imply any guarantee of payment.
BOL or B/L - Bill of Landing.
This is the receipt given by the transport company when the goods are loaded on board the vessel. This is an important document and gives ownership of the goods. It is required by the buyer to obtain the goods from the port.
DC - draft contract.
The draft contract is an initial contract, which is drawn up and sent from the seller to the buyer. The buyer has the opportunity to make changes and send it back to the seller for consideration. This process continues until both parties are satisfied with the terms of the contract.
SCO - Soft Corporate Offer
Issued by the seller or the principal seller is the preliminary stages of trading.
FCO - Full Corporate offer.
Issued by the seller after the preliminary stages of trading are complete, such as a letter of intent having been issued by the buyer, and a soft probe having been conducted on their accounts by the seller. An FCO is a document that defines the conditions of the sale.
ICPO - irrevocable Corporate Purchase Order.
This is a document prepared by commercial buyers, and contains the quantities and type of goods required, and other conditions that the buyer would like the sale to proceed accordingly. Once submitted to the seller, this is considered mandatory and the corporation is required to complete the sale.
L / C or LOC - Letter of Credit.
A letter of credit is a document issued by the buyer's bank to the seller, which guarantees payment to the beneficiary of the letter of credit (the seller), provided that the terms and conditions set out in the letter of credit are met. L/C are almost always irrevocable may be transferable, for regular shipments the L/C Rotating is often used.
TLC - transferable letter of credit.
This is the preferred instrument of merchants and intermediaries to offer secure payment conditions to third parties such as their suppliers (second beneficiaries in the letter of credit). When the buyer pays the letter of credit, part of the product is transferred to the second beneficiary.
LOI - Letter of Intent.
Letter of Intent is a document issued by the buyer to the seller, which indicates that the buyer would like to enter into negotiations with the seller in the hope of buying goods. The letter of intent is not legally binding, but provides a starting point for negotiations.
PB - Performance Bond.
This is a type of bank guarantee that is issued from the seller to the buyer. It guarantees that the seller will comply with the terms of the contract. Usually issued in the amount of 2 % of the total value of the contract, a performance guarantee can be used by the buyer in case the seller breaches the contract and does not supply the product that was stipulated in the contract.
POP - Proof of Products. Proof of the product (' MAGP')
It is often requested by customers or agents who believe it will give them some assurance of the existence of the product and the supplier's ability to deliver the product. POP is realistically provided only when the buyer's bank issues a Bank Confirmation Letter (BCL) to the Seller and/or the seller's bank via SWIFT. The seller's bank can then check the availability of funds in the buyer's bank and issue a POP to the buyer's bank within an agreed period of time (e.g., 5 days). A seller will not issue a POP to the buyer without a non-operational open credit letter. See our procedures. The (PB), 2 % will process the DLS operative. The bank will then send the POP five days later.
POF - Proof of Funds.
Proof of funds for the transaction.
RWA - ready willing and able.
This is a document that is issued by the buyer's bank. The bank confirms that your client has sufficient funds in his possession and is ready, willing and able to engage in the contract.
SGS INSPECTION https://www.sgs.com
It is a leader in inspection, verification, testing and certification of companies in the world. SGS is recognized as a world reference in quality and integrity. The main services offered by SGS can be divided into three categories:
Certification services.
SGS certifies that products, systems or services meet the requirements of standards set by governments (e.g. GOST R), standards bodies (e.g. ISO 9000) or SGS customers. SGS also develops and certifies its own standards.
Inspection Services.
SGS inspects and verifies the quantity, weight and quality of goods traded. Inspection usually takes place at the manufacturer's / supplier's premises or at the time of shipment or at destination during unloading / offloading.
Testing Services.
SGS tests product quality and performance in health, safety and regulatory standards. SGS operates state-of-the-art laboratories in or near customer facilities. Certification services. SGS certifies that products, systems or services meet the requirements of standards set by governments, standards bodies (e.g. ISO 9000) or SGS customers. SGS also develops and certifies its own standards.
What is SONDA SOFT Bank?
A soft probe is a confirmation method used by banks to verify a buyer's seller financing, carried out by the seller's bank for the buyer's bank. Such a probe is not recorded in the buyer's bank details and usually nothing, but the confirmation or lack of confirmation is recorded by the seller. Seller sends a soft document to the buyer's bank to make sure buyer has sufficient funds or financial facility to complete the transaction between them.
SWIFT - Society for Worldwide Interbank Financial Telecommunication. A global service, which is responsible for facilitating communication between banks. Most payments are made via SWIFT.
PAYMENT
The payment method offered can significantly affect the price offered by the seller; the safer the payment the cheaper the price. Sellers are looking for more security in payment and because of the high percentage of abandonment paying for common DLC. Very few sellers will offer this payment option anymore. Our minimum payment option is IRDLC rotational for the value of the one-month shipment. For larger contracts the seller is looking for one-month shipping value carried out by the seller as collateral against the buyer giving up.
Our payment options
Please note all payments must be confirmed by the Top 50 First World Bank; see our website for the latest Top 50 list https://www.accuity.com/useful-links/bank-rankings/.
Confirmed, irrevocable letters of credit give the seller the greatest protection as sellers can rely on the commitment of both banks to make the payment. The confirming bank will pay, even if the issuing bank cannot or will not honor the proposal, for whatever reason. According to the additional risk assumed by the banks, however, confirmed irrevocable letters of credit are more expensive than unconfirmed letters of credit.
Here are several payment options preferred by the SELLERS
IRDLC - Payment by irrevocable, transferable, Auto - Revolving for the value of one month of shipment, letter of credit documentary, Confirmed by Top 50 First World bank, with 100% in sight port of shipment.
FFDLC - (guaranteed by contract value 6 months) Payment for fully financed, irrevocable, transferable, Auto - Revolving for the value of the shipment of one month, Documentary Letter of Credit, confirmed by Top 50 First World Bank, 100% at sight port of embarkation.
Basically, with this payment, there is an LC open for six months the value that is guaranteed by the buyer's bank for that quantity. In the fifth month, there are 6 more LC months open for the last batch of shipments. However, payments continue to be paid one month at a time, but the LC is guaranteed for 6 months in value.
FFDLC - (guaranteed for the full value of the contract 12 months) Payment for fully funded, irrevocable, transferable, Auto - Rotating for the value of the shipment of one month, Documentary Letter of Credit, confirmed by Top 50 First World Bank, 100% spot port of shipment. This LC is guaranteed by the buyer's bank for the total value of the contract.
IRDLC + BG - Unconditional Bank Guarantee for the value of the one-month shipment made as a guarantee for the payment and then the monthly payments by irrevocable, transferable, Auto-rotational for the value of the one-month shipment, Documentary Letter of Credit, confirmed by Top 50 Prime of the World Bank, with 100% spot loading.
IRDLC + BG (3 months) - Payment by irrevocable transferable guarantee, Bank for the value three months to be performed by the seller as payment guarantee. This bank guarantee will be returned to the buyer at the end of the free contract period. Each shipment must be paid by telegraphic transfer within 24 hours after receiving the shipping documents. This irrevocable, transferable three months Bank Guarantee must be issued, confirmed and guaranteed by Top 50 Prime World Bank acceptable to the seller.
FFSBLC - Payment by irrevocable full capitalization, Rotary Stand-by Letter of Credit for the total value of goods with a face value of one month. The Irrevocable Rotating Stand-by Letter of Credit must be issued, confirmed and guaranteed by a Top 50 First World Bank acceptable to the seller.
BG or FFBG - Payment by Bank Guarantee confirmed by Top 50 First World Bank.
The buyer's bank is guarantee the funds for the full value of the contract, therefore, with the payment by BG means that the buyer has the money sitting on the account, promised - that is why it is called "Bank Guarantee". There are other acceptable payment methods and also variations of these payment methods above applicable to certain basic products that we can accept, however this will be informed in our soft offers.
What is an EUR 1 Certificate?
EUR 1 is the name of a form, which is used in international goods traffic. The application of this form is based on the application of various bilateral and multilateral agreements under the Pan-European preference system (European Union Association Agreement). In the free trade agreements of goods are defined, which apply to cheaper tax rates or be completely tax free introduced, under the condition that they were completely manufactured in a member country or in such have so far worked in that they become on an equal footing in accordance with the agreements on the origin of the products. In order to profit from the preferential rate during a customs clearance, the movement certificate EUR 1, in short EUR 1, must be delivered to the competent authority (usually a customs administration), in which the manufacturer attests the origin of the goods.
The EUR 1 is also recognised as a certificate of origin in foreign trade in the legal sense. In place of a movement certificate also a declaration of origin on the invoice can be provided by the manufacturer or shipper of the goods if the quantity of items with preferential EU origin of a single consignment does not exceed € 6,000. If it is an exporter, the accrual of 6,000 euros does not apply. The creator of such a movement certificate or origin declaration must be able to prove the originating characteristics of the goods with a possible confirmation of the supplier's declarations.
The exporter fills in the form and then hands on it or sends it to the competent authorities, usually customs, which stamp it and send it back to the exporter.
What is a T2L certificate?
A T2L certificate is a single administrative document that is used in all European Community and EFTA countries to control imports, exports and goods in transit. This certificate is issued to
the customs authorities of the individual Member States.
What does GMOs mean?
If you have already made purchases at a natural food store in recent months, you have no doubt that you have seen products that bear the label "GMO-free" or "contain only non-GMO ingredients". GMO stands for Genetically Modified Organisms, which refers to any food product that has been altered at the level of the gene. "Genetically modified foods are also often described as "genetically modified", "genetically modified" or "genetically manipulated".