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Glossary of Trade Terms

International Air Transport Association, air transport industry association and issuer of standard air waybill form.
International Bureau of Chambers of Commerce; an ICC-administered network of national, local and municipal chambers of commerce. Administrator of ATA Carnet system for temporary duty-free admission of industrial/commercial samples.
International Chamber of Commerce, the world business organisation whose headquarters are in Paris, with approximately 7000 members in more than 140 countries.
ICC Arbitration
Refers either to ICC Rules for Conciliation and Arbitration or the process of submitting an arbitral complaint to the ICC Court of International Arbitration.
Irrevocable Corporate Purchase Order; an offer to buyer stated goods under specified terms and conditions; for example of misuse.
In Bond
As applied to air freight coming into a country the term ‘in bond’ designates a procedure under which customs clearance of cargo is postponed until the cargo reaches an inland customs point rather than subjecting the cargo to clearance procedures at congested gateway cities.
Incoterms 2000
A set of 13 internationally-standard trade terms (also known as delivery 2000 terms). Incoterms allows the parties to designate a point at which the costs and risks of transport are precisely divided between the seller and the buyer. Incoterms also allocate responsibility for customs clearance/duties between the parties. Since Incoterms are not law but are contractual standard terms, they do not apply to a given transaction unless the parties specifically incorporate them as by referring to Incoterms, e.g. $100/tonne Wellington Incoterms 2000 (in exceptional cases, Incoterms apply regardless of explicit mention in the contract, if there is a custom of trade or prior course of dealing which indicates reliance on Incoterms, or if the local law creates a presumption in favour of applicability of Incoterms). Incoterms are elements of the contract of sale, which may be derived from the seller’s tender or pro forma invoice. Thus, Incoterms only apply to the seller and buyer, one of whom assumes the role of shipper and enter into a contract of carriage. The contract of carriage should agree with the Incoterm in terms of allocation of transport costs and risks, but this depends on the shipper giving precise directions to the carrier to ship according to the constraints of the given Incoterm. For a definition of the 13 currently valid Incoterms, their standard abbreviations.
A form of contract when a party (who thereby becomes primarily liable) undertakes to compensate another for loss they may suffer as a result of a transaction with a third party.
Inspection Certificate
A certificate generally issued by a respected independent agency. It verifies the quality, quantity or specifications of the good shipped is in conformity with the sales contract.
Institute Clauses
Standard international transport insurance clauses, published by the Institute of London Underwriters. The Institute Cargo Clauses are 3 sets of clauses providing different levels of protection: the ‘A’ Clauses correspond to the general notion which is commonly referred to in the trade as ‘all risks’ coverage, while clauses ‘B’ and ‘C’ indicate a lower level of coverage and a greater number of exclusions.
A formal legal document in writing, e.g. a bill of exchange.
ISO 9000
International production quality standards established by ISO (International Standards Organisation). Certification that an exporter meets ISO 9000 manufacturing standards, for example, may be a minimum requirement for competing in certain markets or for certain tenders.
Issuing (or opening) Bank
The buyer’s bank which establishes a documentary credit at the request of the buyer, in favour of the beneficiary (seller/exporter). It is also called the buyer’s bank or opening bank.