Appunti Totale Business Language

Business language

Standard terms and conditions in an export sales contract

• Name and address of both parties, and any third parties
• Contract number, date, and place
• Description of goods, quantity and quality
• Product standard and technical specifications of goods
• Total value of contract
• Terms of delivery
• Period of delivery/shipment
• Terms of payment
• Consequences in case of breach
• Confidentiality clause
• Termination conditions
• Signatures

Commerce is the whole system of an economy that constitutes an environment for business.

Trade is the transfer of the ownership of goods from one person or entity to another by getting something in exchange from the buyer.

Important terms and definitions

Dumping is the sale of an imported commodity at a price lower than that at which it’s sold within the exporting country.

Anti-dumping duty is a special duty imposed to offset the price effect of dumping.

Counter trade means the sale or barter of goods on a reciprocal basis.

Export quotas are specific restrictions imposed by an exporting country on the value or volume of certain exports designed to protect domestic producers and consumers from temporary shortages.

Subsidy is an economic benefit granted by a government to producers of goods.

Export subsidies are government payments provided to domestic producers or exporters dependent on the export of their goods and services.

Tariff is a duty (or tax) levied on goods transported from one customs area to another, raising the prices of imported goods.

Surcharge or surtax is a tariff or tax on imports used as a safeguard measure.

Commercial terms and translations

• Terms: Termini
• Be deemed: Considerare
• Installment: Rata
• Comply: Adempire
• Avoidance: Rescissione
• Charge: Addebitare
• Breach: Violazione
• Rely on: Rivalersi
• Binding: Vincolante
• Terminate: Recedere
• Liability: Responsabilità
• Set out: Stabilire
• Issue: Emettere
• Invoice: Fattura
• Expire: Scadere
• Bill of Lading: Polizza carico
• Provide: Fornire
• Packing List: Distinta imballo
• Fail: Non riuscire a
• Arrange: Organizzare

Incoterms

They are a series of pre-defined commercial terms widely used in international commercial transactions. They identify costs, control, and liability, and are set to standardize the language in commercial transactions. There are 11 different terms which are revised periodically. The subjects involved are: seller, shipper, customs, buyer, insurance.

Types of Incoterms

• EXW – Ex Works: Maximum obligation on the buyer. The seller makes the goods available at his premises. The buyer has all risks.
• FCA – Free Carrier: The seller delivers the goods cleared for export, at the carrier or another person nominated by the buyer.
• FAS – Free Alongside Ship: The seller delivers when the goods are placed alongside the buyer's vessel at the named port of shipment. The buyer bears all costs and risks of loss or damage to the goods from that moment. The seller must clear the goods for export.
• FOB – Free on Board: The seller pays for delivery of goods to the vessel including loading and must arrange for export clearance. Risk passes from the seller to the buyer once the goods are loaded aboard the vessel. The buyer arranges for the vessel and pays for marine freight transportation, insurance, unloading, and transportation costs from the arrival port to destination.
• CPT – Carriage Paid To: The seller pays for the carriage of the goods up to the named place of destination. Risk transfers to the buyer upon handing goods over to the first carrier at the place of shipment in the country of export. The shipper is responsible for origin costs including export clearance and freight costs to carriage to the named place.
• CFR – Cost and Freight: The seller pays for the carriage of the goods up to the named port of destination. Risk transfers to the buyer when the goods have been loaded on board the ship in the country of export. The shipper is responsible for origin costs including export clearance and freight costs for carriage to the named port but is not responsible for delivery to the final destination or insurance.
• CIF – Cost, Insurance and Freight: Similar to CFR, the seller is required to obtain insurance for the goods while in transit to the named port of destination. CIF requires the seller to insure the goods for 110% of their value under at least the minimum cover. The policy should be in the same currency as the contract.
• CIP – Carriage and Insurance Paid to: Similar to CPT, the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of their value under at least the minimum cover. The policy should be in the same currency as the contract.
• DAT – Delivered at Terminal: The seller covers all the costs of transport and assumes all risks until the destination port or terminal (port, airport, or inland freight interchange). Import duty and taxes are to be borne by the buyer.
• DAP – Delivered at Place: Used for any transport mode, the seller is responsible for arranging carriage and for delivering the goods. Duties are not paid by the seller. The seller bears all risks involved in bringing the goods to the named place.
• DDP – Delivered Duty Paid: The seller is responsible for delivering the goods to the named place in the country of the buyer and pays all costs including import duties and taxes. Maximum obligations on the seller. The seller is not responsible for unloading. With delivery at the named place, risks and responsibilities are transferred to the buyer.