Advising Bank
An 'advising bank' is a correspondent of a bank which issues a letter of credit, and, on behalf of the issuing bank, the advising bank notifies the beneficiary of the terms of the credit, without engagement on its part to pay or guarantee the credit.
Agent
A person or legal entity authorized to act on behalf of another. In the case a Direct Import program where the buyer does not have an office to represent them in the country where the purchase is to take place, this person is authorized to act on behalf of the buyer.
Agent Bank
A bank acting on behalf of another bank.
Air Cargo
Property of any kind that is transported by aircraft (excluding passenger baggage and mail).
Allowance
A deduction or discount from the price permitted by a seller.
Amendment
An addition, deletion, or modification of a document. In the case of International trade, an amendment usually applies to changing the terms and/or conditions of the Letter of Credit.
Back Order
That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date when available
Bank Guarantee
An indemnity letter in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other form of default occurs. One use is when a bank wants a carrier to release a shipment which it has financed but the original bills of lading are not yet available for surrender to the carrier.
Beneficiary
1. In the case of a letter of credit, the individual or company who is entitled to draw or demand payment under its terms.
2. In the case of insurance, the person entitled to take the proceeds.
3. The person for whose benefit a contract, or trust, or will is executed or enforced.
Bill of Lading
A document issued by a carrier which is evidence of receipt of the goods, and is a contract of carriage. It describes the goods, the details of the intended voyage, and it specifies the conditions of transportation. If issued in negotiable form, i.e. "to order", it becomes documentary evidence of title to the goods.
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