Letter of credit (L/C)

A letter of credit is the commitment made by a bank upon the order of the importer to the exporter with respect to the fact that he will pay or accept the policy drawn in the name of him in line with the terms specified in advance.

ATR Document

The ATR document is a document used in the import or export of goods from Turkey to a member of the European Union or from a member of the European Union to Turkey.

CE Mark

CE is a Union mark certifying that a product is in compliance with the requirements for the protection of health, environment and the consumer specified by the European Union Directives.

Cost & Freight

CFR

Cost,Insurance,Freight

CIF

Delivered Duty Paid

DDP

Delivered Duty Unpaid

DDU

Direct Bill of Lading

The bill of lading to be required if the ship moves from the port of loading to another port of unloading without transferring the goods.

Marine Bill of Lading

It is a document of a commercial paper nature submitted to the shipper issued by the ship agency or the captain showing that the goods have been received and that they will be delivered to the addressee in the agreed way, representing the goods and establishing a right of disposition on it.

EUR 1 Document

EUR 1 document is a document used in the trade of Turkey with the EFTA countries and in the trading of the products covered by the Free Trade Agreement it initialed with the European Union for iron-steel products.

EX Works

EXW
Delivery at the workplace

Order Bill of Lading

A bill of reading bearing a record as to the payment thereof to a specific person or to the order thereof.

Free Alongside Ship

 FAS
Delivery alongside the ship

Free Carrier

 FCA
Delivery to the carrier

Free on Board

 FOB
Delivery on board

Irrevocable Letter of Credit

A letter of credit containing a declared commitment as to the acceptance or payment of the policies to be drawn during the term of the letter of credit by the accrediting bank, upon full performance by the importer the agreed conditions. Cannot be cancelled or the provisions cannot be changed without the request and approval of the parties.

Stand By Letters of Credit

 A letter undertaking that a bank may pay a certain amount of Money without recourse upon the request of the beneficiary, if there is a failure to pay a debt to the bank or a failure to perform a liability.

Supervising Company

An objective company controlling such issues as weight, amount and quality at the import and export point on behalf of the importer or the exporter and submits reports thereon.

Customs Duty

Tax obtained from the goods to be imported according to the customs entry tariffs schedules.

Bill of Carriage

It is also known as Letter of Carriage or carrier’s receipt.  It is a bill covering the sender of the goods and the transferring agency, the way the goods will be transferred and principles exclusive to delivery and acceptance.

Air Freight

Fee for freightage by airway

Air Freight Insurance

Guarantee as to the delivery of goods carried by airway to its receiver.

Airway Bill

Insurance employed to guarantee the delivery of goods transported by airway to their receiver in a healthy way.

ISO 9000 Certificate

ISO 9000 Quality Insurance System Certificate is a total quality insurance Standard containing the guidelines to be employed in the organization structure necessary to keep the quality of products and services under control in the product and business management, in product design, in the experiment and inspection methods used; rather than the quality of the end product.

Revocable Letter of Credit

A letter of credit cancelled at any time by the accrediting bank.

Bill of Lading (L/C)

It is a document certifying used in transportations carried out by train, plane or ship and showing that the goods is received to be transported and that it will be delivered to the holder of the bill of lading.

London Inter bank Offered Rate Libor

Shows the interest rates employed by the first class banks in the procedures carried out in the London Money market.

Cash on Delivery

Is the payment of the cost of the imported goods after the receipt thereof by the exporter.

Manifesto Cargo

A declaration showing what the load carried by the captain by ship consists of and made to the administration of customs of the destination.

Certificate of Origin

It is a document certifying the country a good is produced or made in and approved by the administrative authorities of the said country and endorsed by the consuls of the recipient country.

Correspondent Bank

A bank responsible for establishing the connection between the exporter and the importer in the letter of credit procedures.

Forwarding Agent

A person expert in the transportation of goods is generally a transportation commissioner.

Freight Insurance 

Insurance that will meet the damages to be incurred by the goods or vehicles during transportation.

Transport Documents

Document certifying that the good is delivered to be loaded or delivered.

Freight

This is the whole of fees relating to the transportation of goods and passengers to be paid for and on behalf of the transporter.

Freight Invoice

The freight relating to the goods exported as CIF and CF must be paid by the seller. In order to confirm that the freight has been paid, a note “freight has been paid” is taken on the bill of lading. If the bill of lading bears this note; a freight invoice issued by the carrier must be given to the bank together with the bill of lading. Such freight invoice shows that the goods have been taken having been loaded and that no freight debt remains.

Order

Ordino (Release order)
Instructions addressed to the captain or by the ship agencies or to the carrier by transportation agencies to explain how this will be made before the loading and unloading procedures.

Original Invoice

Invoice taken as a basis for customs procedures, transfers and commitments and sent to the receiver having been issued by the exporter. These invoices also explain the method of sales and payment conditions.

Original Manifest

Manifests presented to the customs of ports the unloading process will take place, issued separately for each unloading port in the ports of departure and signed by the customs officers at the ports of departure.

Bill of  Exchange, Draft

Bill bearing the word policy or the word having an equivalent in a foreign language in the text of the bill, unconditional Money order with respect to the payment of an amount, name and surname of the addressee, date and place of issue and the signature of the drawer.

Pro-forma Invoice

A type of invoice issued to provide information on the type, quality, estimated price and cost, sales conditions of the goods to be sold to the purchaser and bearing the nature of an offer.

Re-export

Export, later on, of goods imported to the country from other countries.

Pier to Pier

(LCL / LCL)
Preparation and unloading of the cargo shall be carried out by the carrier. Both procedures are carried out at the premises of the carrier.

Revolving Letter of Credit

If the whole or part of the cost of the letter of credit determined in the instructions given used or if the policy drawn is paid, it is the letter of credit that is renewed at the specified amount, under the same conditions and automatically. This type of letter of credit is usually opened by an importer who imports the same type of good from a single exporter in parts.

Free Zone

Places excluded from the borders of the national customs bound by special administrative status? Tax laws or financial liabilities may wholly or partly not be implemented here.

Pre-shipment Finance

A type of finance resembling the working capital in nature needed by the exporter having received an order from the importer to produce, purchase or send export goods.

Post-shipment Finance

A type of export finance relating to the period between the delivery of the goods and the collection of the export costs.

Shipping Document

Document covering such documents as invoices, bills of lading, a list of parcels, certificate of origin, A-TR Document, insurance policy and submitted by the bank upon the payment or acceptance of the policy after being sent by the bank of the exporter to its branch or to an intermediary bank in the importer’s company.

Order

Ordering a good for the purposes of buying it.

Barter

It is a type of trading between the importer and exporter firms in two separate countries in which a good is changed with a good.

Tariff Number

The numbers assigned to each good or groups of good in the customs import tariffs Schedule.

Conforming Bank

Bank that promising the beneficiary that if the cost of the letter of credit is not paid by the issuing bank, it will be paid by itself.

Confirmed Letter of Credit

A letter of credit accredited by the issuing bank adding its own responsibilities and commitments in a strengthening and confirming manner.

Unconfirmed Letter of Credit

In such letters of credit, the correspondent bank shall not assume any financial responsibilities. It suffices with informing the beneficiary that the letter of credit has been accredited and listing the conditions thereof.

Commercial Invoice

A record of the procedures carried out between the purchaser and the seller.

Transit Transport

Transportation of passengers or goods via two other contracting countries between points the arrival and departure points of which are outside a contracting party.

Transit Trade

Transit or direct sales of goods of foreign origin to another country either by assigning foreign Exchange or not.

Documents

Name is given to various documents such as bills of lading, policies, consulate invoices, expert reports used in trading.

Documents Against Acceptance (DA)

Delivery of documents required by the importer to take the goods only against the acceptance of the policy drawn by the exporter.

Cash Against Documents (CAD)

Type of payment, in which an exporter having sent his goods applies to an authorized intermediary bank in the country of the exporter and sends delivery documents to the said bank and instructs the importer to deliver such documents after the cost of import has been paid.