In commerce, to get familiar with its commonly used terminology and vocabulary is very important for those who engaged in commercial activities. Therefore, in this article, ten common and functional commercial terms are introduced:
- Shipping documents
In trade, waybill is like the document of the contract of carriage, the receipt of the goods and the document of ownership, and also it is a document that can be used to claim damages from the insurance company.
Usually the details are included in the bottom section of the waybill.
Product description, marks or commercial numbers, shipping name of the carrier, ports of loading and unloading, the name of the carrier and the recipient of the goods, the cost of transport, the number of copies of the bill of lading issued and the date of issue.
- Goods Declaration
In trade, an information declaration is made from the goods, which is set on the customs sheet. Usually, in the declaration, the beneficiaries mention the customs procedure, and they stipulate the specifications from the point of customs’ view that are required to be made for goods.
- Declaration of Origin
The Declaration of the origin is an expedient description of the origin of the goods which is presented in the commercial invoice or any other document at the time of export and it is related to the goods.
4. Insurance Certificate
It is a signed statement indicating the origin of the goods. Although the certificate of origin is set by the issuer or its agent, but in some countries, the insurance certificate must be issued on a special form containing the approval of an independent administrative agency.
- Proforma Invoice
It is a buyer list which is issued by the seller from the origin as a sales offer, or to determine the value and terms of sale. It is necessary for this list to be confirmed by procurement and distribution section before the order of the goods is made.
In trade, the Manifest or the entire list of goods is a list of shipments of a ship, train or caravan of trucks that has more than one waybill. Manifest is available when commercial shipments reach at the destination customs.
- Commercial Profit
Commercial interest is the amount of money taken for some imported goods in accordance with the Cabinet of Ministers on the basis of the Foreign Trade Monopoly Law, the Customs Law and the Law on Export and Import Regulations.
The reason for commercial benefit is apart from customs duties is that, whenever it is necessary to protect the products or industries of the state, the government will change its amount.
- Commercial Invoice
The Commercial Invoice is a bill, so that the cost of the goods is taken into account by the buyer and it contains the following items:
Date, name and address of the buyer and seller, the order number or the contract, the quantity and description and price of the goods, the total value and the weight of the goods, the number of packages, the signs and the shipping numbers and the terms of delivery and payment.
- TIR Carnet
It is an international transit document for land transit that issued at origin, allowing goods to cross transit countries and transit formalities on the border of any countries is no longer needed.
- Legal weight (Declaration of gross weight)
Weight determined by law for specified purposes. In the Customs law, this weight is the gross weight minus the approximate weight of the container.