DICTIONARY OF COMMONLY USED TRADING TERMS

LC - Letter of Credit

ICC UCP500 guidelines.

DLC - Documentary Letter of Credit

Issued and guaranteed by the bank for the full amount of the contract, each shipment paid separately.

KTT - Key Tested Telex

Secure way for banks to communicate to each other.

RLC - Revolving Letter of Credit

Issued in the amount of each shipment at a time.

ARLC - Automatic Revolving Letter of Credit

Automatically reinstated and guaranteed successively in the amount of each shipment for a pre-set schedule, as decided between buyer and seller.

PBG - Prime Bank Guarantee

Used to guarantee payment from a prime bank.

SLC - Standby Letter of Credit

Issued for the full amount of the contract, but negotiable after all deliveries have been made, Usually for One year and 1 day or 1 week.

Shipping Terms

C&F - Cost & Freight.

CIF - Cost Insurance & Freight.

F.O. - Free out.

F.O.B. - Free on Board.

SHEX - Sundays and Holidays excepted.

SHINC - Sundays and Holidays included.

SGS - Society General de Surveillance SA - International Commodity Inspection Agency.

INCOTERMS 1990

INCOTERMS is based on ICC Publication No. 460 "INCOTERMS 1990" and
entered into force on 1 July 1990.


  *EX WORKS  (... named place)    EXW  A L'USINE  (... lieu convenu)
   *FREE CARRIER  (... named place)  FCA FRANCO TRANSPORTEUR (... lieu
convenu)
   *FREE ALONG SHIP  (... named port of shipment)  FAS   FRANCO LE LONG DU
NAVIRE  (... port d'embarquement convenu)
*FREE ON BOARD (... named port of shipment)  FOB  FRANCO BORD  (...
port d'embarquement convenu)
*COST AND FREIGHT  (... named port of destination) CFR   COUT ET FRET
(... port de destination convenu)
*CARRIAGE PAID TO  (... named place of destination)  CPT   PORT PAYE
JUSQU'A  (...lieu de destination convenu)
 * CARRIAGE AND INSURANCE PAID TO  (...named placed of destination) CIP
PORT PAYE, ASSURANCE COMPRISE, JUSQU'A (... point destination convenu)
*DELIVERED AT FRONTIER  (... named place) DAF   RENDU FRONTIERE  (...lieu
convenu)
* DELIVERED EX SHIP  (... named port of destination)  DES  RENDU EX
SHIP(... port de destination convenu)
 *DELIVERED EX QUAY (DUTY PAID)  (... named port of destination)  DEQ
RENDU A QUAI (DROITS ACQUITTES) (... port de destination convenu)
*DELIVERED DUTY UNPAID  (...named place of destination)  DDU  RENDU DROITS
NON ACQUITTES  (... lieu de destination convenu)
*DELIVERED DUTY PAID  (... named place of destination)  DDP RENDU DROITS
ACQUITTES  (... lieu de destination convenu)