Trade
International Payment Terms
Also known as: Payment conditions, Trade payment methods
Agreed conditions between buyer and seller regarding when, how, and in which currency payment will be made for a foreign trade transaction.
Also known as: Payment conditions, Trade payment methods
Agreed conditions between buyer and seller regarding when, how, and in which currency payment will be made for a foreign trade transaction.
International payment terms define the conditions under which the buyer will pay the seller in a foreign trade operation. The most common methods are letters of credit, documentary collection, bank wire transfer, and advance payment, each with different risk levels for the parties.
Commercial Invoice
Document issued by the seller/exporter describing the goods sold, their price, terms of sale, and details of the parties involved.
DocumentsProforma Invoice
A preliminary document issued by the seller/exporter describing the goods, prices, and conditions of a proposed commercial transaction, before the sale is finalized.
ValuationTransaction Value
The price actually paid or payable for imported goods, adjusted as prescribed by the WTO Valuation Agreement. It is the primary method for determining customs value.
DocumentsBill of Lading (B/L)
An ocean transport document issued by the carrier that serves as a contract of carriage, receipt of goods, and document of title to the cargo.