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ICC 322
Uniform Rules for Collections
ICC 323
Standard Forms for Issuing Documentary Credits
ICC 420
Guide to the Prevention of International Trade Fraud.
ICC 460
Incoterms 1990. Explains the 13 standard Incoterms.
ICC 500
Uniform Customs and Practice for Documentary Credits (1993 revision) replaced the previous ICC 400 as from 1 January 1994.
ICC 522
Uniform Customs and Practice for Documentary Credits (1995 revision) replaced the previous ICC 322 as from 1 January 1996.
Import License
A permit issued by the importing country'S authorities in respect of goods subject to import licensing restrictions.
Incoterms
Shipping Terms - see Introduction to International Trade.
Indemnity
Also known as Letter of Guarantee (L/G), it is an undertaking given in respect of discrepancies in documents presented under a credit. The beneficiary who issues the indemnity is primarily liable to repay funds received from the negotiating bank in settlement under the credit, if the negotiating bank cannot obtain reimbursement from the issuing bank as a result of documents being rejected by the applicant.
Inherent Vice
The propensity of a commodity to self-destruction which gives rise to a high insurance risk, therefore cover is given only after payment of an additional premium (e.g. fruit rots, coal-dust spontaneously ignites).
International Chamber of Commerce (ICC)
The international body which promotes and facilitates world trade, and which codifies world trade practices in various publications - see ICC Rules?under Introduction to International Trade.
Irrevocable Credit
Constitutes a definite undertaking of the issuing bank and the confirming bank, if any, to honour the credit provided the terms of the credit are observed. It may be advised to the beneficiary without engagement by the advising bank, and cannot be amended or cancelled unless the issuing bank, the confirming bank and the beneficiary agree.
Issuing Bank
The bank that opens a documentary credit at the request of its customer, the applicant.
Letter of Credit (L/C)
American term for documentary credit. In the United States, the terms D/C can often be confused for documentary collection.
Letter of Hypothecation
A promise to hold goods as security taken from customers who are granted loans against goods imported on a collection basis.
Loan Against Imports (LAI)
Loans granted to import customers for payment of bills.
Master Credit
In back-to-back operations, the original export credit against which the second credit is opened
Maturity
Due date of payment of a usance bill or promissory note.
Negotiable/Non-Negotiable
Usually used with regard to Bills of Lading: a negotiable B/L is a valid document of title, while a non-negotiable B/L is not - the beneficiary of a DC (the exporter) may send the importer a non-negotiable B/L for information.
Negotiation
Purchase of drafts under a documentary credit which the issuing bank has undertaken to pay.
Net Weight
The weight of the merchandise before any packaging.
Non-DC Bills
Bills not drawn under DC i.e. sent on a collection basis (D/P or D/A). In common usage we distinguish between Non DC bills which are financed collections and DCs which are non-financed.
Non-Financed Bills
Bills sent on collection in which the remitting branch has no financial interest.
Noting
The first stage in protest of a dishonoured bill: if instructed to protest for non-payment/non- acceptance, the collecting bank must send the bill to a notary public who will represent it to the drawee on the same day it was refused, or the next business day. If the drawee still refuses the bill the notary public notes on the bill: the amount of his charges, the date and his initials. The reason for refusal is shown on a note attached to the bill. The bill is then protested - see Protest.
Opener
See Applicant.
Opening Bank
See Issuing Bank.
Order (To)
The phrase To Order is sometimes shown on Bills of Lading against consignee: this means that the Bill of Lading must be endorsed in blank by the shipper (i.e. not to any particular named party which makes it bearer document and it becomes transferable by delivery.)
Packing Credit
A loan given to the beneficiary by the bank to enable him to purchase raw materials. The beneficiary is usually requested to deposit the DC with the bank as security.
Past Due
Bill or loan that has not been paid on the maturity date/due date.
Paying Bank
The bank that makes payment to the beneficiary of a payment DC after presentation to it of documents stipulated in the DC.
Perils of the Seas
They are accidents or casualties of the sea. The ordinary actions of the winds and waves are not included. Heavy or tempestuous weather on a voyage is of sufficient violence to constitute a peril of the sea.
Power of Attorney
Authority given to one party to act for another.
Presentation
Act of requesting the importer??s payment/acceptance of an import bill. - See Handling Import Collections.
Presenting Bank
The bank that requests payment of a collection bill - may be the Collecting Bank or its nominated branch or local correspondent, which is better placed to contact the importer.
Principal
The exporter in collection transactions, being the initiator of the transaction, whose instructions are followed at all stages (may be used to refer to any customer who initiates a transaction e.g. the opener of a DC).
Promissory Note
A signed statement containing a written promise to pay a stated sum to specified person at a specified date or on demand.
Protest
The formal representation of a dishonoured bill of exchange: the bill is presented by a notary public to the drawee - if refused again, it is noted?- see noting. The notary public then issues a formal protest, an official certificate that the bill has been refused: the drawer can use this certificate to sue the drawee in court.
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