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
all for this episode of video vocab be sure to check out our website at www.att.com/biz
'no Singlish vocabulary thanks for watching and see you again soon