Confirmed Letter of Credit : Confirmed Letter of Credit
Composition with Creditors
An agreement between an insolvent debtor and one or more creditors under which the creditors consent to ac¬cept less than the total amount of their claims in order to secure immediate payment. Creditors will usually prefer a composition if a debtor threatens to declare bankruptcy, because otherwise the creditors are likely to incur costs in making a legal claim against the debtor in a bankruptcy proceeding, payment of debts will be delayed during the proceeding, and the amount paid to each creditor will de¬pend on the judicial decision in that proceeding.
Compound Rate of Duty
A combination of both a specific rate of duty and an ad valorem rate of duty. For example: 0.7 cents per pound plus 10 per cent ad valorem. See duty; ad valorem - specific rate of duty
An intermediary, agent or advisor in a foreign country em¬ployed by a domestic individual or company to facilitate transactions with local individuals or businesses in the for¬eign country.
Items requiring storage and handling under pressure in compressed gas cylinders. (UN CLASS 2.) Ex¬amples are acetylene and chlorine. Hazards/precautions are container may explode In heat or fire; contact with liq¬uid may cause frostbite; may be flammable, poisonous, explosive, irritating, corrosive or suffocating; may be EX¬TREMELY HAZARDOUS.
- information system
An on-line trade data retrieval sys¬tem maintained by the International Trade Administration within the U.S. Department of Commerce. The system is exclusively for use within the federal government trade community (ITA, USTR, ITC and other executive branch agencies).
(1) U.S. foreign trade data (detailed U.S. merchandise trade statistics compiled by Census)
(2) UN trade data (trade statistics of 170 countries
(3) International Monetary Fund and World Bank data¬bases (international finance, direction of trade, and devel¬oping country debt). COMPRO also maintains gateways to LABSTAT - a product of the Bureau of Labor Statistics
- U.S. Customs
Generally, the Customs value of all mer¬chandise exported to the United States is the transaction value for the goods. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use are.....
(1) Transaction value of identical merchandise
(2) Trans¬action value of similar merchandise
(3) Deductive value
(4) Computed value
The order of precedence of the last two values can be reversed if the importer so requests. Computed value consists of the sum of the following items.
(1) Materials, fabrication, and other processing used in producing the imported merchandise
(2) Profit and gen¬eral expenses
(3) Any assist, if not included in items 1 and 2
(4) Packaging costs
- U.S. Customs
valuationtransaction value - identical merchandise - similar merchandise – assist - deductive value
Damage to the contents of a package which is in good order externally - inherent vice
Loss from a package bearing concealed dam¬age - inherent vice
An agreement between two parties that states the terms of a settlement of a right of action for a breach or wrongdoing that one of the parties has against the other. A buyer who has paid for goods but has not received them, for example, may agree to forgo the right to sue the seller for breach if the seller agrees to return die money paid - accord and satisfaction
Conditions of Carriage
contract of carriage
A group of ocean freight carriers banding to¬gether, voluntarily, for the purpose of limiting and regulat¬ing competition among themselves. It may establish uniform tariff freight charges and terms and conditions of service. Conference establishment in the United States re¬quires Federal Maritime Commission approval. Confer¬ences in the United States are exempt from antitrust regulation - open conference -closed conference
A member of an association of ocean cargo car¬riers that has agreed to standardize services, practices, rates and tariffs - carrier – conference
Ocean shipping companies whose ships travel according to firmly established schedules along fixed routes. Uniform transport rates are established between the shipping lines. Such agreements are usually called conferences. The conference lines are therefore the ship¬ping routes agreed by the conferences – conference - open conference - closed conference
Rates arrived at by conference of carriers appli¬cable to transportation—generally water transportation - conference
A contract or written memorandum that ratifies, ren¬ders valid, and makes binding an agreement that was diffi¬cult to prove, invalid, or otherwise unenforceable. Parties who orally agree to a sale of goods, for example, may for¬malize that agreement by signing a written confirmation that contains all of the oral terms - contract
Confirmed Letter of Credit
A letter of credit which contains a guarantee on the part of both the issuing and advising banks of payment to the seller so long as the seller’s documentation is in or¬der and the terms of the letter of credit are met. Confirmation is only added to irrevocable letters of credit, usually available with the advising bank. If confirmation of the letter of credit is desired, the applicant must state this expressly in his / her letter of credit application. The confirming bank assumes the credit risk of the issuing bank as well as the political and transfer risks of the pur¬chaser’s country.
If a letter of credit does not contain a confirmation request by the issuing bank, in certain circumstances the possibil¬ity exists of confirming the letter of credit by silent con¬firmation i.e. without the issuing bank’s knowledge. Without confirmation of the letter of credit, the advising bank will forward the letter of credit to the beneficiary without taking on its own commitment - letter of credit
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