List Of Trade Abbreviations, Terms And Their Definitions

AF: Advance Freight - Before merchandise is shipped.for if sold in the country from which it was exported.
BB: Bill Book - A book containing all notes, bills ofO/R: Owner's Risk - Moving merchandise from one
exchange, contracts, etc., outlining all transactionsplace to another with the owner assuming liability
made.while the items are in transit.
B/E: Bill Of Exchange - A written order specifyingPL: Partial Loss - An insurance covering a loss when
payment; a promissory note.the merchandise isn't completely destroyed or
BKGE: Brokerage - A company that buys or sellsworthless.
goods on behalf of clients.PSI: Preshipment Inspection - Inspecting merchandise
CFS: Container Freight Station - Gathering place for aquality and quantity to ensure it conforms to sales
large amount of merchandise before shipment.contract terms.
CRN: Customs Registered Number - A numberQR: Quantitative Restrictions - Limits on the amount
identifying an importer or exporter to customs.of merchandise that can be imported or exported
CWO: Cash With Order - This is a payment made inwithin a specific amount of time.
advance. CWO payments are usually reserved forRWA: Ready, Willing and Able - When a supplier and
smaller orders or new buyers.seller have come to agreement on all terms of a
DD: Dock Dues - Any payments required forcontract and the merchandise is ready to be shipped.
transporting merchandise to a dock.SITC: Standard International Trade Classification - An
DFZ: Duty Free Zone - An area such as a dock,international foreign data plan allowing the comparison
warehouse or airport that is considered to be outsideof foreign trade data.
of its customs territory.TBT: Technical Barriers to Trade - Standard
FOB: Free On Board - The total cost of merchandiseregulations that government entities impose to
on a ship or truck. The merchandise's destination isrestrict trade.
outlined in the commercial contract.TL: Total Loss - Destruction of merchandise to the
KD: Knocked Down - Merchandise that is shipped withpoint where it is rendered completely worthless.
all of its parts but is unassembled to make shipmentULD: Unit Load Device - A container used in air
easier.freight.
L/C: Letter of Credit - A bank-issued documentU/W: Underwriter - An individual or entity that signs
guaranteeing to pay a customer's drafts for afor and accepts liability in case of merchandise being
specific length of time and amount.lost or damaged. The underwriter will pay for the
MFN or MFNS: Most Favored Nation (Status) - Amerchandise in the event of loss or destruction.
country receiving preferential treatment in terms ofVAT: Value Added Tax - A consumption tax levied
taxes, quotas, etc.at various points throughout the production and
NCV: No Commercial Value - General term to describedistribution process. Each manufacturer or merchant
samples.pays a tax relating to the amount of value he has
NV: Normal Value - The price that an item would selladded to the merchandise after purchase.