Acceptance Letter of Credit PDF

Acceptance Letter Of Credit
A draft (or a bill of exchange) accepted by the drawee (acceptor)

by putting his signature and 'accepted' on its face. In doing so, he
commits himself to pay the bill upon presentation at maturity.
Advising Bank
This bank is a correspondent of a bank which issues a letter of
credit, and, on behalf of the issuing bank, this bank notifies the
beneficiary of the terms of the credit, without engagement on its
part to pay or guarantee the credit.
Anti-dumping Laws
Statutes enacted to prevent dumping - offering prices in the
overseas market that is lower than that at which a product is sold
in its home domestic market.
Applicant
One who applies to his bank to issue a documentary credit; in the
majority of credits issued the applicant is an importer of goods.
Bank (ers) Acceptance
A time draft drawn on, and accepted by, a bank. They are limited
to 6 months in the US. They may be kept to maturity or sold.
Beneficiary
A payee or recipient, usually of money. A party in whose favour a
documentary credit is established, usually the exporter.
Carriage, insurance paid to (CIP)
An INCOTERM indicating the Seller delivers the goods to the
named carrier but the Seller must also pay the cost of carriage
necessary to bring the goods to the named destination and
minimum insurance against damage or loss in transit.
Carriage paid to (CPT)
An INCOTERM indicating the Seller delivers the goods to the
named carrier but the Seller must also pay the cost of carriage
necessary to bring the goods to the named destination.
Cash Against Documents (CAD)
A term used in collections supported by shipping documents
which are released to the Buyer only against payment. Same as
Documents Against Payment (D/P).
Cash in Advance (CIA)

A credit term where Buyer pays for the merchandise or services
in full before shipment or any service benefits can be derived.
C.O.D.
Collect on Delivery, a service where the purchase price of a
shipment is collected by the carrier upon delivery of the
shipment and subsequently paid to the shipper.
Collecting Bank
A bank involved in the collection process. In this process if
presentation is made to the drawee, it also becomes 'the
presenting bank'.
Commercial Bank
In the USA, a bank that is authorized to accept demand deposits.
It may also receive time deposits, make loans, engage in trust
services, issue letters of credit, accept and pay drafts, rent safe
deposit boxes and engage in many other similar activities.
Confirmed Letter of Credit
A L/C issued by a foreign bank whose validity has been
confirmed by a domestic bank. This is in addition to the
commitment of the opening bank.
Confirming house
Primarily European entities that use their credit where their
client has customers with a high cost of funds or are located in a
country with an uncertain credit environment.
Consignment
Goods or property sent by the aid of a carrier from one person
(the consignor) to another (the consignee).
Correspondent Bank
A bank that, in its own country, handles the business of a foreign
bank.
Cost and freight (CFR)
An INCOTERM indicating the cost of the product and freight is
included in the Seller's quoted price to a named destination. All
other charges are the Buyer's responsibility.
Cost, insurance and freight (CIF)
An INCOTERM indicating the cost of the product, minimum

insurance, and freight is included in the Seller's quoted price to a
named destination. All other charges are the Buyer's
responsibility.
Delivered Duty Unpaid... named place of destination (DDU)
An INCOTERM indicating the Seller has fulfilled its obligation to
deliver when the goods have been made available at the named
place in the country of importation. Seller bears most costs and
risks involved in bringing the goods thereto.
Documentary Letter of Credit
A L/C that requires receipt of specified documents before the
transaction can be completed.
Documents Against Acceptance
Instructions given by a shipper to a bank indicating that
documents transferring title to goods should be delivered to the
buyer (or drawee) only upon the buyer's acceptance of the
attached draft
Documents Against Payment
Payment for goods without a guaranteed form of payment in
which the documents transferring title to the goods are not given
to the buyer until he/she has signed a sight draft.
Ex Works named place (EXW)
An INCOTERM indicating Seller has fulfilled its obligation to
deliver when it has made the goods available at its premises (i.e.
works, factory, warehouse, etc.) to Buyer. Seller is not
responsible for loading the goods on the provided transport
vehicle.
Free Alongside Ship named port of shipment (FAS)
An INCOTERM indicating Seller has fulfilled its obligation to
deliver when the goods have been placed alongside the vessel on
the dock (quay) at the named port of shipment. Buyer bears all
costs and risks of loss / damage to the goods from that moment
on.
Free Carrier (FCA)
An INCOTERM meaning the cost, risk and responsibility shift
from Seller to Buyer when goods are turned over to a carrier at a
specified place. If place is the Seller's site, Buyer must pay the
pre-carriage to the main carrier's terminal.
Free on board (FOB)

An INCOTERM meaning Seller is required to transport the goods
to the named port of export and arrange for export clearance.
Risk, cost, and responsibility shift to Buyer when the goods pass
over the carrying ship's rail.
Free on Board named place (FOB)
An INCOTERM indicating title and responsibility pass to the
customer at the named location.
INCOTERMS
A set of international standards for the uniform interpretation of
common international trade contract clauses.
Irrevocable Letter of Credit
An L/C which cannot be amended or canceled without prior
mutual consent of all parties to the credit.
Letter Of Credit (L/C)
A commitment, usually by a bank on behalf of a client, to pay a
beneficiary a stated amount of money under specified conditions
for merchandise or services rendered.
Market-Point Pricing
Competitive or reactive pricing
Open Account
Credit extended that is not supported by a note, mortgage, or
other formal written evidence of indebtedness.
Penetration Pricing
Entering a market with a relatively low price as a means of
gaining market share.
Prepaid (PPD) Charges
This transportation term means that all charges, including
freight, are to be paid by the Shipper. Or, it may mean that only
those charges designated as 'prepaid' are to be paid by the
Shipper with other charges to be collected from the Receiver.
Revocable Letter of Credit
An L/C that can be amended or cancelled at any time by either
the originator or the payee.
Sight draft
A draft that is payable on demand.
Skimming Pricing
The practice of setting a relatively high price for a product, often
for the purpose of increasing margins in markets that are
somewhat price inelastic.
Society for Worldwide Interbank Financial Transactions
(SWIFT)
Network through which international banks conduct their
financial transactions.
Standby Letter of Credit
A L/C which a bank issues on behalf of its customer to serve as a
guarantee to the beneficiary of the L/C that the bank's customer
will perform a specified contract with the beneficiary. If the
customer defaults, the beneficiary may draw funds.
Time draft
A financial instrument that is payable within a specified time
period.
Trade Acceptance
A draft drawn by Seller of goods upon Buyer who agrees to pay
by signing 'accepted' on the draft.
Transferable Letter of Credit
A Letter of Credit authorizing the beneficiary to transfer the right
to receive the proceeds of the letter to another party.
Transfer price
Prices on intracompany sales
Unconfirmed Letter Of Credit
A type of L/C bearing the obligation of the issuing bank only, not
of any other ban

Acceptance Letter of Credit PDF

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Acceptance Letter of Credit PDF

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Acceptance Letter Of Credit

A draft (or a bill of exchange) accepted by the drawee (acceptor)

Cash in Advance (CIA)

An INCOTERM indicating the cost of the product, minimum

Free on board (FOB)

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