English Vocabulary for International Trade

www.VideoVocab.TVText

International

TRADE

INCOTERMS

merchandise

inspection

pro

form

a in

voic

e

CERTIFICATE

letter of credit

FOB

CFR

CIFCustoms

DUTY

Bonded Warehouse

bill of lading

Bro

ker

merchandise

Text

merchandiseGoods that are bought and sold in t rade are cal led merchandise .

Text

When merchandise is being moved or shipped, it may be called freight or cargo.

merchandise

Text

Trucks took the merchandise in containers from the factory to the port.

example:

Text

certificate of manufacture

Text

certificate of manufactureThe manufacturer will issue a certificate of manufacture certifying that the goods are have been made to the buyer’s specifications.

Text

certificate of inspectionA certificate of inspection shows that the goods meet the required standards prior to shipment.

Text

“The goods appeared damaged, so the buyer checked to see that the cert if icate of inspection was valid.”

example:

Text

pro forma invoice

Text

Before a supplier sends merchandise to a buyer, the supplier provides a pro forma invoice.

pro forma invoice

Text

pro forma invoiceThis invoice lists the exact quantity, value, and specifications of the merchandise.

Text

“When the shipment arrived, we checked the contents against the pro forma invoice we had received.”

example:

Text

letter of credit

Text

letter of creditIn large trades, a buyer will finance the transaction using a letter of credit.

Text

letter of creditThis document guarantees that payment will be made when the seller meets the conditions of sale.

Text

“ Wh e n Way l a n d I n c . rece i ved the le t ter of credi t, they contacted the shipping company to arrange transport.”

example:

Text

bill of lading

A bill of lading is a contract between an exporter and a transportation company.

Text

bill of lading

The bill of lading l is ts the goods being carried and must remain with the merchandise at all times.

Text

bill of lading

Text

example:“An airline may issue a bill of lading to a seller either before or after payment for goods is made.”

Text

incoterms

C I PDAT

EXWFOB

INCOTERMSc f r

CIFFAS

FCA

dapDDP

Text

Free On BoardFree on Board (FOB) means the seller is responsible for the goods until they are loaded.

Text

Free On BoardThe seller must pay all costs related to getting the goods to port and onto the ship.

Text

CFR means that a quoted price includes the cost of goods and transport charges to the destination port.

Cost & Freight

Text

CIF means that the quoted price includes the cost of goods, insurance, and transportation to the destination port.

Cost Insurance Freight

Text

example:“The seller agreed to pay cost and freight, so the buyer had to buy insurance for the goods.”

Textbonded warehouse

Text

bonded warehouseA bonded warehouse is a place where goods are stored after shipping but before the payment of duties on those goods.

Text

“At any major port facility there will be a number of b o n d e d w a r e h o u s e s available to store goods.”

example:

Text

customs / duty

Text

customsCustoms is the authority or organization that controls the flow of goods in and out of a country.

Text

dutyCustoms authorities collect the duties – or taxes - applied to imports and exports.

Text

“Within a port, customs officials have the right to board and search any ship.”

example:

Text

customs broker

Text

customs brokerA customs broker helps importers and exporters move their goods through Customs.

Text

customs brokerCustoms brokers prepare documents, help with communication, and arrange payment of duties.

Text

“Many customs brokers specialize in certain types of goods, such as textiles, food, or computer equipment.”

example:

Text

PracticeNow, it’s

your turn to practice!

Text

exampleFor example, if you hear…The bank issued a letter of <beep> to the furniture exporter.

Text

exampleYou can say ...The bank issued a letter of credit to the furniture exporter.

Text

get ready to speak

Text

The goods sat in a bonded <beep> for three months before the duty was paid.

question 1

Text

answer 1The goods sat in a bonded warehouse for three months before the duty was paid.

Text

The agreed terms were cost and <beep> ,

so the buyer had to buy insurance.

question 2

Text

The agreed terms were cost and freight,

so the buyer had to buy insurance.

answer 2

Text

question 3When the shipment arrived, we checked the contents against the bill of <beep>.

Text

answer 3When the shipment arrived, we checked the contents against the bill of lading.

Text

question 4After so many delays in customs, we switched to a better customs

<beep>.

Text

After so many delays in customs, we switched to a better customs broker.

answer 4

www.VideoVocab.TVText