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Glossary
Acceptance [Acceptance]: it is a unilateral juridical act by means of which, the debtor (drawee) acquires the character of forced principally to the payment of the sum indicated in a credit title (p.e. bill of exchange).
Guarantee [Guarantee]: it is a typically exchange institute that takes as a purpose to guarantee the payment of emergent obligations of a bill of exchange or note and, possibly, of other documents.
BAIBOR [Buenos Aires Interbank Offered Rate]: interbank money-market rate on the Market of Buenos Aires.
Credit letter [Letter of Credit L/C]: it is a way of international payment by means of which, a bank - acting for account and order of a client (importer) - promises to pay or make to pay (generally by means of another bank) to a beneficiary (exporter) a certain sum of money, against the presentation of the demanded documents, any time the terms and the conditions are fulfilled established in the credit letter.
Credit letter Stand By [L/C Stand By]: it is an instrument used as guarantee of fulfillment of a contract of loan or another type of contract, linked to rendering of diverse service like being: it offers in public tenders, maintenance of prices, provision of works, etc.
CCI - Chamber of International trade [International Chamber of Commerce]: it is the only world organization of companies, not governmental private road. Created in 1919 and established in Paris, it defends the free investment and the commerce, the loyal competition and the free access to the markets for goods and services.
CFR - Cost and Charter (... port of fixed destination) [Cost and Freight (... named port of destination)]: it means that the seller must place the goods, with the full international charter, in the port of fixed destination. Nevertheless, the risk of loss or damage of the merchandise, as well as any additional cost transfers from the seller the buyer when the merchandise exceeds the hut of the ship in the shipment port.
CIF - Cost, Insurance and Charter (... port of fixed destination) [Cost, Insurance and Freight (... named port of destination)]: it means that the seller must place the goods, with the international and sure transport charter paid, in the port of fixed destination. Nevertheless, the risk of loss or damage of the merchandise, as well as any additional cost transfers from the seller the buyer when the merchandise exceeds the hut of the ship in the shipment port.
CIP - Full Transport and Insurance Even (... fixed destination point) [Carriage and Insurance Paid To (... named pleases of destination)]: it means that the seller must place the goods, with the international and sure transport charter paid, in the fixed destination point. Nevertheless, the risk of loss or damage of the merchandise, as well as any additional cost transfers from the seller the buyer when the seller puts the merchandise at the disposal of the first designated transporter.
CIRR [Commercial Interest Reference Rate]: commercial reference money-market rate. Minimal money-market rate agreed by the OECD countries (Organization of Cooperation and Economic Development), applied on the credits of exportation financed officially.
Collection would Document [Documentary Collection]: it is that by which there is entrusted to a bank the collection management of commercial documents, accompanied or not by financial documents. The documents will have to be dedicated to the debtor when it has expired with the totality of the conditions established in the collection instruction.
Marine bill of lading [Bill of Lading]: document of transportation of goods, which presents three principal characteristics
 it is a credit title
it is a convincing element of the Contract of Transport
it tries that the goods have been received and embarked for his transport.
International contract of sale [Contract of Sale]: juridical instrument that allows to give more certainty to the one who takes part in international trade operations. In this document there are included the terms and conditions that both the buyer and the seller agree, on the base of recognized beginning internationally.
Agreement of Payments and Reciprocal Credits of ALADI [Reciprocal Payments and Credits Agreement]: it is an agreement suscripto for the Central banks of the member countries of the Latin-American Association of Integration – ALADI: Argentina, Brazil, Bolivia, Colombia, Chile, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. Also it takes part and integral part of this agreement is the Central Bank of the Dominican Republic. The intention of the Agreements of Payments and Reciprocal Credits is to minimize the effective currencies transferences between financial institutions of the taking part countries and to support the commercial exchange between the countries of the banks that sign them. By virtue of the same ones, the respective taking part banks have created a system of compensation of the deserving and debit balances (including caused interests) of the accounts in which there register the authorized operations that are carried out between resident persons in the different member countries. The liquidations of the balances derived from the experienced operations have a multilateral character and are realized every four months. The Central banks have autonomy to decide about the obligation or freedom of the residents of every country to canalize operations across the agreements. The currency in which the payments must be stipulated is the dollar of the United States of America.
CPT - Transport Paid Even (... fixed destination point) [Carriage Paid To (... named please of destination)]: it means that the seller must place the goods, with the full international charter, in the fixed destination point. Nevertheless, the risk of loss or damage of the merchandise, as well as any additional cost transfers from the seller the buyer when the seller puts the merchandise at the disposal of the first designated transporter.
DAF - Delivered on Border (... fixed place) [Delivered at Frontier (... named pleases)]: it means that the seller realizes the delivery when the merchandise is put at the disposal of the buyer on the used and not unloaded transport means, in the point and place of the border been convenient, but before the frontier customs of the adjacent country, must be the merchandise finished for exportation but not for import.
GIVE - Delivered on Ship (... port of fixed destination) [Delivered ex-Ship (... named port of destination)]: it means that the seller realizes the delivery when the merchandise is put at the disposal of the buyer on board of the ship, does not not finished by customs for the import, in the port of fixed destination. The seller must support all the costs and risks inherent in the mailing of the merchandise up to the port of agreed destination.
DEQ - Delivered in Wharf (... port of fixed destination) [Delivered ex-Quay (... named port of destination)]: it means that the seller realizes the delivery when the merchandise is put at the disposal of the buyer, without serving for customs for the import, in the wharf of the port of fixed destination. The seller must assume the costs and risks inherent in the mailing of the merchandise up to the port of fixed destination, including the discharge of the merchandise on the wharf.
DDP - Delivered Full Rights (... fixed destination point) [Delivered Duty Paid (... named pleases of destination)]: it means that the seller realizes the delivery of the merchandise to the buyer, finished for the import and not unloaded from the transport means, at his arrival to the fixed destination point. The seller must support all the costs and risks inherent in the mailing of the merchandise up to the destination point in the destination country. This term represents the maximum responsibility for the seller.
DDU - Delivered not Full Rights (... fixed destination point) [Delivered Duty Unpaid (... named pleases of destination)]: it means that the seller realizes the delivery of the merchandise to the buyer, not finished by customs for the import and not unloaded from the transport means, at his arrival to the fixed destination point. The seller must assume all the costs and risks inherent in the mailing of the merchandise up to the place agreed about the country of destination.
Endorsement [Endorsement]: it is the normal and natural way to transfer the bill of exchange, for this is a credit title to the order. It is a unilateral exchange declaration and it takes as an object to legitimize to the endorsee, to transmit the possession and the property of the title, and to compromise jointly his grantor (endorser)
EURIBOR [Euro Interbank Offered Rate]: interbank reference money-market rate in the area of the Euro, formed from the money-market rates offered by the principal banks that operate in the European Monetary Union.
EURO: it is the single currency of the European Union from January 1, 1999.
EXW - In Factory (... fixed place) [Ex-works (... named it pleases)]: it means that the seller realizes the delivery of the merchandise when it puts it at the disposal of the buyer in the proper establishment of the seller or in another fixed place, without finishing it for the exportation her to load in a receiving vehicle. This term defines the minor obligation for the seller, owing the buyer to assume all the costs and risks from the reception of the merchandise in the places of the seller or the fixed place.
FAS - Franco al Costado of the Ship (... fixed load port) [Free alongside ship (... named port of shipment)]: it means that the seller realizes the delivery when the merchandise is placed to the side of the ship in the port of fixed shipment. This means that the buyer has to support all the costs and risks of loss or damage of the merchandise from that moment. The seller must finish the merchandise in customs for the exportation.
FCA - Franco Transportista (... fixed place) [Free Carrier (... named pleases)]: it means that the seller delivers the merchandise finished for the exportation, to the transporter named by the buyer in the fixed place. The buyer assumes all the risks and any other additional cost when the merchandise has been dedicated to the designated transporter.
FCL [Full Container Load]: condition of shipment in which the load is stowed and desestibada in the container for the user of the transport.
FI [Free In]: form of hiring of the charters where load expenses are not included.
HE GAVE CREDIT [Free In and Out]: form of hiring of the charters where there are not included expenses of load and discharge.
FIOS [Free In, Out and Stowage]: form of hiring of the charters where there are not included expenses of load, discharge and rammer.
FIOST [Free In, Out, Stowage and Trimmed]: form of hiring of the charters where load expenses are not included, discharges, stows and trimado (to accommodate the grains load in bulk inside the wine vault).
Flat: this word when one applies to concepts like: commissions, expenses, etc., it is understood that the same ones are received for the only time.
FO [Free Out]: form of hiring of the charters where discharge expenses are not included.
FOB - Franco to Board (... fixed load port) [Free on Board (... named port of shipment)]: it means that the seller realizes the delivery when the merchandise exceeds the hut of the ship in the port of fixed shipment. This means that the buyer must support all the costs and risks of loss or damage of the merchandise from this point.
Forfaiting: it is the sale without resource that an exporter does to a Financial institution, of his documents with right of cashing, product of his sale financed on the outside.
Air guide [Air Way Bill]: it is the way across which there is arranged the contract of transport of merchandise by air.
Incoterms: "International Commercial Terms" set of international terms of commerce approved by the CCI. These terms represent rights and obligations that the exporter and importer assume. The first version of "Incoterms" was published in 1936 and, since then, it has been updated in diverse opportunities, being the last publication "Incoterms 2000" - Brochure N ° 560, which includes 13 terms. The most well-known and used there are FOB, FCA, CFR and CIF.
LCL [Less than to Container Praise]: condition of shipment in which the load is stowed and desestibada in the container for the marine transporter.
Bill of exchange [Bill of Exchange / Draft]: it is a credit title, endosable, formally and finished that incorporates the promise to pay or to make to pay, to the beneficiary, a certain sum, to the expiration and in the place in her mentioned. The parts that intervene in a bill of exchange are: drawer, drawee or credit and the beneficiary.
LIBOR [London Interbank Offered Rate]: it is the money-market rate offered between banks in the Market of London.
Liner Terms: form of hiring of the charters where there are included the expenses of load, rammer, unloading and discharge.
MERCOSUR: Common market of the South, it is an agreement of commercial and economic integration established by the Treaty of Asunción (1991) and his Member states there are Argentina, Brazil, Paraguay and Uruguay.
Note [Promissory Note]: document that registers the unconditional payment promise on the part of the issuer or subscriber, with regard to a certain sum, with or without interests and in a term stipulated in the document in favor of the beneficiary or holder.
GIVE PRIORITY TO RATE: it is the active valuation received from clients of the first line on the Financial market of New York.
I receive from confidence [Trust Receipt]: I document by means of which the adviser of a credit documentario (importer) admits that only it receives the shipment documents on the part of Banco Emisor to realize the steps before the Customs, allowing to the bank to preserve the exercise of the lien on the goods descriptas in the shipment documents.
SEBR [Swiss Export Basic Rate]: basic rate of Swiss exportation.
Credit insurance to the Exportation [Export Credit Insurance]: it takes as a purpose to protect the exporters of certain risks that could prevent the cashing of the credits granted to buyers of other countries. There are two classes of principal coverages:
Ordinary risks: it covers the insolvency of the debtor or his long mulberry.
Extraordinary risks: it covers the losses that the Policyholder suffers by way of catastrophic natural disasters of character (earthquakes, tidal waves, hurricanes, etc.), declared or not civil or international war, revolution or uprising that prevent the payment of the debt, confiscation, expropriation, prohibition of mattering or cancellation not attributable to the buyer, of an import license that there prevents the acquisition of the juridical availability of the merchandise for the buyer; express or tactical measurements of the government that delay excessively the transference of the owed sums, when the forced one to the payment has expired with the acts necessary to carry it out; moratorium of general character that prevents from demanding the fulfillment of the obligation.
Insurance of Transport [Charge Insurance]: it covers the risks of transfer of the merchandise from the date of shipment up to his reception in destination.
Spread: it is the difference between the valuation of laying (active valuation) and the valuation of reception (passive valuation) that gives him the utility to the financial institutions.
TIBOR [Tokyo Interbank Offered Rate]: interbank money-market rate on the Market of Tokyo.
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