English Vocabulary for International Trade - VV32 | Business English Vocabulary

you're watching video vocab by  business English pod dot-com

in this lesson we'll look at the process of  international trade the journey starts with  

finished merchandise being inspected and given  a certificate of manufacture the seller will  

then issue a pro forma invoice while the buyer  may obtain a letter of credit to finance the  

payment next the seller will draw up a bill of  lading and arrange shipment under internationally  

agreed terms such as CFR CIF and fo b on arrival  merchandise is often stored in a bonded warehouse  

until import tax or Duty is paid a customs broker  may then help clear the goods through customs

merchandise merchandise goods that are  bought and sold in trade are called  

merchandise when merchandise is being moved  or shipped it may be called freight or cargo

trucks took the merchandise in  containers from the factory to the port

certificate of manufacture certificate of  inspection when the merchandise is ready  

the manufacturer will issue a certificate  of manufacturer certifying that the goods  

have been made to the buyers specifications  likewise a certificate of inspection shows  

that the goods meet the required standards  prior to shipment the goods appear damaged so  

the buyer checked to see that the certificate of  inspection was valid pro forma invoice pro forma  

invoice before a supplier sins merchandise  to a buyer the supplier provides a pro forma  

invoice this invoice lists the exact quantity  value and specifications of the merchandise  

when the shipment arrived we check the contents  against the pro forma invoice we had received

letter of credit letter of credit enlarged  trades a buyer will finance the transaction  

using a letter of credit this document  guarantees that the payment will be made  

when the seller meets the conditions of the  sale once Wayland exports received the letter  

of credit they contacted the shipping company  to arrange transport bill of lading bill of  

lading a bill of lading is a contract between  an exporter and a transportation company the  

bill of lading lists the goods being carried and  must remain with the merchandise at all times an  

airline may issue a bill of lading to a seller  either before or after payment for goods is made

Incoterms the internationally agreed terms of  a sale under which most trade is governed are  

called Incoterms some of the most common  terms include fo B or free onboard means  

the seller is responsible for the goods  until they are loaded the seller must  

pay all costs related to getting  the goods to port and on to ship

CFR or cost and freight means that a quoted  price includes the cost of goods and transport  

charges to the destination port CIF or cost  insurance and freight means that a quoted  

price includes the cost of goods insurance  and transportation to the destination port

the seller agreed to pay cost and freight so the  buyer had to buy insurance for the goods bonded  

warehouse bonded warehouse a bonded warehouse is  a place where goods are stored after shipping but  

before the payment of duties on those goods at  any major port facility there will be a number of  

bonded warehouses available to store goods customs  duty customs is the authority or organization that  

controls the flow of goods in and out of a country  customs authorities collect the duties or taxes  

applied to imports and exports within a port  customs officials have the right to board and  

search any ship customs broker customs broker  a customs broker is a person or business that  

helps importers and exporters move their goods  through customs customs brokers prepare documents  

help with communication and arrange payment of  duties many customs brokers specialize in certain  

types of goods such as textiles food or computer  equipment now it's your turn to practice some of  

the words we have studied in this episode you'll  hear a series of sentences with a word replaced  

with a beep repeat the whole sentence including  the missing word for example if you hear the bank  

issued a letter of to the furniture exporter you  can say the bank issued a letter of credit to the  

furniture exporter we'll play the correct answer  after each question ready let's give it a go

the goods sat in a bonded for three  months before the duty was paid answer  

the goods sat in a bonded warehouse for  three months before the duty was paid

the agreed terms were cost and  so the buyer had to buy insurance

answer the agreed terms were cost and freight so  the buyer had to buy insurance when the shipment  

arrived we checked the contents against the bill  of answer when the Shi men arrived we checked the  

contents against the bill of lading after so  many delays in customs we switched to a better  

customs answer after so many delays in customs  we switched to a better customs broker that's  

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