Terms of Sale and Documents in International Trade

What is an Indent?

• A type of document used for shipping goods.

• An order sent by the importer to the agent in a foreign country requesting goods.

• A financial term related to interest rates.

• A legal contract between two parties.

What does Free on board (F.O.B) mean?

• The price includes all expenses incurred up to the point where the goods are in the ship ready for transport.

• The price includes only the cost of the goods, excluding shipping and handling fees.

• The price includes all expenses incurred until the goods reach the buyer's location.

• The price includes insurance costs for the goods during transport.

What is a Letter of credit?

• A document allowing the importer to get goods on credit from the exporter, affirming the amount due will be paid.

• A type of insurance policy for international shipments.

• A financial statement required for loan applications.

• A contract between two parties for the sale of goods.

What is Cost & freight (C&F)?

• The price includes all loading and carriage expenses.

• The price includes only the cost of goods.

• The price includes insurance but not freight.

• The price includes only unloading expenses.

What does LOCO/ex-warehouse/ex-works mean?

• The seller pays for the goods and incurs all expenses of moving goods to the buyer's destination.

• The buyer pays for the goods as they are in the exporter’s warehouse and incurs all expenses of moving goods to his destination.

• The buyer pays for the goods only after they reach their destination.

• The seller is responsible for all costs until the goods are delivered to the buyer's warehouse.

What is a Certificate of origin?

• A document prepared by the exporter detailing the exported goods and their country of origin.

• A certificate issued by the government to certify the quality of goods.

• A document that lists all the suppliers of a product.

• A receipt for the payment of customs duties.

What does Cost insurance and freight include?

• All loading, carriage, and insurance expenses.

• Only loading expenses.

• Only insurance expenses.

• Carriage expenses and taxes.

What is a Consular invoice?

• A document certifying that prices charged for goods are fair, enabling customs officials to charge the correct duty.

• A receipt for goods purchased abroad that is used for tax purposes.

• An invoice that includes the shipping details and payment terms for international transactions.

• A document that lists the items being shipped without any pricing information.

What is a Letter of hypothecation?

• A letter from the exporter to the bank authorizing it to resell goods if the importer fails to pay.

• A document that guarantees a loan for the importer.

• A contract between the exporter and importer outlining payment terms.

• A letter of credit issued by the bank to the exporter.

What are Delivered docks/free docks?

• The price charged includes all expenses involved in transporting goods to the nearest dock.

• A type of dock that charges extra for loading and unloading.

• Docks that are only available for international shipping.

• Docks that do not allow any transportation of goods.