Home |Sitemap |FAQs |Contact Us
Product Country
Increase Font Size Decrease Font Size
Menu
Glossary of Trade Terms
B
C
D
F
G
K
L
M
N
O
Q
R
S
T
U
W
X

Packing List
A highly-detailed list describing the weight, volume, content and packaging for each separate export package.
Par
The term applied when the forward price of the purchase or sale of foreign currency is the same as the spot price.
Paramount Clause
The clause in a bill of lading or charter party invoking coverage by the Hague Rules, Hague-Visby Rules, or by the particular enactment of these rules in the country with jurisdiction over the contract.
Paying Bank (or paying agent)
The bank that reviews the documents presented by the exporter and arranges payment to the exporter, if they conform to the terms and conditions of the documentary credit.
PD
Port Dues.
Performance Bond (guarantee)
A bond or guarantee which has been issued as security for one party’s performance: if that party (the principal) fails to perform the beneficiary under the bond/guarantee may obtain payment. A performance bond may be of either the demand or conditional variety, which means that the beneficiary may or may not be required to prove default by the principal in order to obtain payment.
Pick up and Delivery (PU&D)
Freight quote includes service of picking cargo up at shipper’s premises and delivering it at consignee’s premises.
Pier-to-Pier (quay to quay)
Freight quote which only covers from export pier to import pier (that is, which excludes handling charges to bring cargo to and from piers).
P/N
An unconditional written promise to pay a specified sum of money on demand or at a specified date to, or to the order of, a specified person, or to bearer. Promissory notes are negotiable instruments and perform more or less the same function as an accepted bill of exchange.
POD
Pay on Delivery.
Point/Pip
The last decimal place of an exchange rate quotation.
Post - Shipment Finance
The finance required for the period of time after goods have been shipped before payment is received by the exporter.
PPD.(or PP)
Pre - Paid.
Prepayment
To secure prompt delivery, which would be important if goods are in short supply, or to achieve a cash discount, an importer with ample resources may agree to pay for goods at the time the order is placed.
When prepaying, the importer carries all the risk. They place implicit faith in their supplier to ful fil the terms of the contract.
Pre-Shipment Finance
Goods in the exporter’s hands prior to shipment naturally represent a certain cost and must be financed from some source. This is called pre-shipment finance and varies between traders and manufacturers, according to their capital resources and the terms of payment agreed upon between the buyer and seller.
Pre - Shipment Inspection (PSI)
An inspection of contract goods prior to shipment to ascertain their quality, quantity or price. Importers may insist on PSI, requiring the exporter to furnish a certificate of inspection (commonly, issued by neutral, internationally-respected firms such as SGS or Bureau Veritas), so that the importer is assured of receiving goods of contract quality/quantity. Government agencies may require inspection certificates as regards price, so as to prevent parties from under- or over-invoicing in an attempt to pay lower customs duties or evade foreign-exchange restrictions.
Presentation
The act of presenting a bill of exchange or documents for acceptance, payment or negotiation.
Pro Forma Invoice
A sample invoice provided by an exporter prior to a sale or shipment of merchandise, informing the buyer of the price, kinds and quantities of goods to be sent, and important specifications (weight, size and similar characteristics). The pro forma invoice not only acts as the contractual offer (which may be accepted by the importer’s transmission of a purchase order), it is intended to be exactly replicated in the final commercial invoice, so that the buyer receives no surprises as regards either the goods or the price. Importers may need a pro forma invoice to be able to apply for an import licence or a foreign exchange permit. In the case of a documentary credit, the pro forma invoice is frequently used to inform the importer of the amount for which the documentary credit has to be opened.
Promissory Note
An unconditional written promise to pay a specified sum of money on demand or at a specified date to, or to the order of, a specified person, or to bearer. Promissory notes are negotiable instruments and perform more or less the same function as an accepted bill of exchange.
Protest
A solemn declaration by a Notary Public stating that they have demanded acceptance or payment of a bill of exchange and that it has been refused with the reasons, if any, given by the drawee or acceptor for the dishonour. The object of a protest is to give satisfactory evidence of the dishonour to the drawer or other antecedent party: but it is not necessary except in the case of a bill drawn and payable outside Australasia.
PSI
An inspection of contract goods prior to shipment to ascertain their quality, quantity or price. Importers may insist on PSI, requiring the exporter to furnish a certificate of inspection (commonly, issued by neutral, internationally-respected firms such as SGS or Bureau Veritas), so that the importer is assured of receiving goods of contract quality/quantity. Government agencies may require inspection certificates as regards price, so as to prevent parties from under- or over-invoicing in an attempt to pay lower customs duties or evade foreign-exchange restrictions.
PSV
Post - Shipment Verification.
Purchasing Agent
An agent who purchases goods on behalf of foreign buyers.
 
 

Trade Leads

Directory's

APEDA Agri Exchange

News & Analysis

Contact

  • Agricultural and Processed Food Products Export Development Authority (APEDA)
    (Ministry of Commerce & Industry, Govt. of India)

  • NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi - 110 016
    Phone : 91-11-41486013, 20863919, 20867008, 20867007