Lesson 8

Question 1

this is a contract between an importer and a bank that transfers liability or paying the exporter from the importer to the importer’s bank

Answer 1

export irrevocable commercial letter of credit

Question 2

a means of payment for an import/export transaction

Answer 2

bank draft (bill of exchange)

Question 3

2 types of bank draft

Answer 3

1. transaction payable onsite with proper documents (SIGHT DRAFT)
2. transaction payable at some fixed time after acceptance of proper documents (TIME DRAFT)

Question 4

issued by the shipping company or its agents as evidence of a contract for shipping the merchandise and as a claim to ownership of the goods

Answer 4

bill of lading

Question 5

may replace the bill of lading if goods as shipped by air (airway bill) or by more than one mode of transportation

Answer 5

combined transport document

Question 6

a document written by the exporter to precisely describe the goods and terms of sale, similar to a shipping invoice used in domestic shipment

Answer 6

commercial invoice

Question 7

explains what type of coverage is utilized, the name of insurer, and the exporter whose property is being insured

Answer 7

insurance certificate

Question 8

denotes the country in which the goods were produced to assess tariffs and other government-imposed restrictions on trade

Answer 8

certificate of origin