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Glossary of Trade Terms

Railway Consignment Note
A freight document indicating that goods have been received for shipment by rail.
An interest adjustment used when retiring a bill of exchange before it is due.
The process of matching outstanding credit/debit entries appearing in statements received from overseas correspondent banks/branches to contra entries posted to the relative Nostro account.
The right of a holder of a bill of exchange to demand payment from a person other than the acceptor. Bills may be endorsed ‘without recourse’, in which case the endorser does not become liable to any holder.
Red Clause L/C
A letter of credit provision allowing the beneficiary to draw partial advance payments under the credit. This provision used to be set out in red ink, therefore the ‘red clause’ designation. Generally, the eneficiary is only required, in order to receive payment of the authorised advances, to present drafts along with a statement that shipping documents will be provided in due time.
Similar to Advance Clause Credits; used mainly in Australia and New Zealand in relation to the export of wool and meat from those countries.
Reefer Box/ Container/ Ship
A refrigerated container or ship. Refrigeration may either be:
Mechanical, which means involving an external power supply
By expendable refrigerant (dry ice, liquefied gases, etc.), which requires no external power supply.
Remittance Documents Against Acceptance
An advance facility similar to a REM D/P except that the bill of exchange allows for term payment and accompanying documents may be released on acceptance of the bill.
Remittance Documents Against Payment(REM D/P)
An advance facility which provides for negotiation or purchase of bills of exchange (sight) drawn outside documentary credit and where accompanying documents are to be released on payment of the bill overseas.
Remittance Under Letter of Credit Liability(REM L/C)
A bank facility which records the liability for negotiation or purchase of bills of exchange under export documentary credits.
Remitting Bank
In a documentary collection, the bank forwarding the exporter’s documents and the draft to, and receiving payments from, the buyer’s bank (collecting bank).
Restricted Articles(air transport)
The following articles are restricted for air transport:
• explosives
• flammable and non-flammable compressed gas
• flammable liquids
• flammable solids
• oxidising materials
• poisons and irritating materials
• radio-active materials
• corrosive liquids and solids
• magnetised materials
• etiological agents
• polymerisable materials.
Retention of Title (reservation of title)Clause
A contractual clause whereby a seller declares their intention to retain title or ownership over the contract goods until payment by the buyer is complete.
Change in the official parity of an exchange rate from that which it was previously set.
Revocable Documentary Credit
As the name implies, the fundamental difference between this type of instrument and an irrevocable credit is that it can be modified or cancelled by the issuing bank (possibly on request from importer/applicant) withoutconsent of the beneficiary.
Revolving Credit
Is one in which, after notice of drawing against it is received by the issuing bank, the balance available for drawing again reverts back or ‘revolves’ to its original amount, providing the credit has not expired in the meantime.
Roll-on/Roll-off (RoRo)
A combination of road and sea transport, where loaded road vehicles are driven onto a ferry or ship (roll-on/roll-off ship) and off at the port of destination. Major benefits of RoRo are reduced handling of the actual goods and packages, competitive costs for unit loads and scheduled services.
The extension of a maturing foreign exchange transaction or the extension of a maturing currency deposit or loan.
A contractual clause whereby a seller declares their intention to retain title or ownership over the contract goods until payment by the buyer is complete.