Exports and Imports – Vocabulary

Vocabulary - the key to success

Without knowing the meaning of words and phrases required to negotiate on the international market can lead to major disadvantages.

The following abbreviations are listed on the ICC (International Chamber of Commerce) website:

  EXW – Ex Works (insert place of delivery)

  FCA  – Free Carrier (Insert named place of delivery) 

  CPT  – Carriage Paid to (insert place of destination) 

  CIP –  Carriage and Insurance Paid To (insert place of destination)  

  DAP – Delivered at Place (insert named place of destination)  

  DPU – Delivered at Place Unloaded (insert of place of destination)  

  DDP – Delivered Duty Paid (Insert place of destination).  

    Note: the DPU Incoterms replaces the old DAT, with additional requirement for the seller to unload the goods from the arriving means of transport.”

   FAS – Free Alongside Ship (insert name of port of loading) 

   FOB – Free on Board (insert named port of loading) 

   CFR – Cost and Freight (insert named port of destination) 

   CIF –  Cost Insurance and Freight (insert named port of destination)”

NOTE: All quotes are from the ICC webpage  – As this is a US website the UK spelling would, in some cases, be different.
responsibility – noun – duty to take care of something – “Incoterms specifies who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities”.

clarify – verb – to make something clear or easier to understand by giving more details – “each Incoterms rule clarifies the tasks, costs and risks to be borne by buyers and sellers”.

borne – verb (past particle of bear) – to accept and carry – see quotation above.

transaction – noun – an occasion when someone buys or sells something, or when money is exchanged or the activity of buying or selling something – “Familiarizing yourself with Incoterms will help improve smoother transaction by clearly defining who is responsible for what and each step of the transaction”.

familiarize (UK=familiarise) – verb – to learn about something – see the quote above.

grouped (group) – verb – to form a group or put people or things into a group – “The Incoterms® 2020 rules are updated and grouped into two categories”.

category – noun – a group of things having some features that are the same – “grouped into two categories reflecting modes of transport”.

reflect – verb – to show, express, or be a sign of something – see the quote above.

modes – a way of operating – see quote above.

importance – the quality of being important “Of primary importance is that each Incoterms rule clarifies the tasks”.

carriage – noun – (the cost of) transporting goods – “CIP – Carriage and Insurance Paid To”. 

requirement – noun –  what is wanted or needed – “with additional requirement for the seller to unload the goods”.

unload – verb – to remove the contents of something, especially a load of goods from a vehicle – “unload the goods from the arriving means of transport”.

arrive – verb – to reach a place, especially at the end of a journey – see above quote.

loading – noun – the action of putting goods onto a vehicle so they can be transported – ” FAS – Free Alongside Ship (insert name of port of loading) “

stipulate – verb – to say exactly how something must be or must be done – “a corresponding statement is provided which stipulates that the buyer pay the price of goods as provided in the contract of sale”.

corresponding – adjective –  similar to, connected with, or caused by something else – “Similarly, each rule has a corresponding statement as to which party is responsible for obtaining”.

obtain – verb – to get something, especially by asking for it, buying it, working for it, or producing it from something else – “responsible for obtaining any import license or other official authorization required for import”.

license (UK=license) – noun – an official document that gives you permission to own, do, or use something, usually after you have paid money and/or taken a test – see above quote.

formality – noun – something that the law or an official process says must be done – “carrying out the customs formalities required for the import of goods”. 

similarly – adverb – being almost, but not exactly, the same – “Similarly, each Incoterm rule specifies which party to the transaction, if any”.

obligate – verb -to make someone feel legally forced to do something – “each Incoterm rule specifies which party to the transaction, if any, is obligated to contract for the carriage of the goods”.

coverage – noun – financial protection so that you get money if something bad happens – “which party, if any, is obligated, to provide for cargo insurance coverage” 

handling – noun – the act of moving, storing, or packaging goods – “which party bears the cost of the handling these tasks” 

cargo – noun – the goods carried by a ship, aircraft, or other large vehicle – “specifies the seller’s obligations as for cargo delivery and clarifies when delivery takes place”.

provision – noun – the act of providing something – “when the risk of loss or damage to the goods being exported pass from the seller to the buyer by reference to the delivery provision”. 

incorporate – verb – to include something as part of something larger – “Incoterms are generally incorporated in the contract of sale”.

ownership – noun – the fact that you own something – “when title, or ownership of the goods, passes from the seller to the buyer”.

customs – noun – the government department that deals with taxes on goods coming into and leaving a country – “which documents must be provided by the seller to the buyer to facilitate the customs clearance process at the buyer’s country”.

clearance – official permission to come into or leave a place or country – see previous quote.

conformity – noun – the process as set out without mistakes or faults – “provide the goods in conformity with the contract” 

 

Practice makes perfect

Life Advice That Doesn’t Suck – Mark Manson:

“If there’s a “secret” or “hack” to learning a new language, it’s this: hours and hours of awkward and strenuous conversation with people better than you in that language.1 An hour of conversation (with corrections and a dictionary for reference) is as good as five hours in a classroom and 10 hours with a language course by yourself.”

In addition to our online course, we also offer an option to take part in a live Skype Session. 

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