Trade Finance Glossary and Export Import Terms

An AD Code is a 14-digit identifier issued by an authorised dealer bank for an exporter’s current account. The unique code helps to identify the banks through which the exporters handle their export-related foreign currency payments.

Accounts Payable (AP) refers to the amount a business owes to its suppliers or vendors for goods and services purchased on credit. It is recorded as a short-term liability on the balance sheet and represents outgoing cash obligations.

Accounts Receivable (AR) is the amount of money owed to a business by its customers for goods or services sold on credit. It is treated as a current asset since it represents expected future cash inflow.

Accounts Receivable Financing is a financing method where businesses raise funds by using their unpaid invoices as collateral. It allows companies to access immediate cash instead of waiting for customers to pay.

Advanced authorization is a promotion scheme for export businesses, allowing businesses to import inputs by paying only basic customs duty, on the condition of exporting the final products. The scheme benefits the manufacturers by lowering the upfront cost of imported inputs.

An Airway Bill (AWB) is a legal document issued by an airline or freight forwarder that serves as a contract of carriage and receipt of goods for air transport. It contains details about the shipment, sender, receiver, and delivery terms.

Amortization is a financial practice of showing the cost of intangible assets over its usable life and not just mentioning them in the books as a one time expense. These assets can be like software, trademarks, patents, and more that are beneficial in the long run.

Anti-Dumping Duty is a tariff imposed by a government on imported goods that are priced lower than their fair market value, to protect domestic industries from unfair competition.

A Balance Sheet is a financial statement that shows a company’s financial position at a specific point in time, including its assets, liabilities, and equity.

A Bank Guarantee is a financial assurance provided by a bank that ensures a beneficiary will receive payment if the applicant fails to fulfill contractual obligations.

A Bank Realisation Certificate, or BRC, is a document that confirms that an exporter has received the payment from an overseas buyer. It is issued by the bank through which the transaction is made, serving as proof that payment due for the shipped goods has been made.

A Bill of Lading is a legal document issued by a carrier that serves as a receipt of goods, a contract of carriage, and in some cases, a document of title in shipping.

A break-even point is reached in sales when the total revenue of the business is equal to the total cost. At this point, the business does not make a profit or loss. The BEP is calculated to know the sales a business needs to make before becoming profitable.

The Bunker Adjustment Factor or BAF is an additional shipping charge levied by ocean carriers to cover changes in fuel costs. Since fuel prices can rise or fall, shipping companies use BAF to adjust freight charges and recover these fuel expenses.

CBIC, or the Central Board of Indirect Taxes and Customs, is a department of the Finance Ministry of India that manages customs duties and indirect taxes. It helps regulate imports and exports along with enforcing customs laws.

CFR, or Cost and Freight, is a shipping method used for transporting cargo overseas, under which the seller is responsible for loading the goods and paying the freight charges, but once the cargo is loaded on the ship, responsibility passes to the buyer.

CIF (Cost, Insurance, and Freight) is an Incoterm in international trade in which the seller is responsible for paying for goods and freight along with the insurance. The seller uses this method to bring the goods to the destination port.

CIP or Carriage Insurance Paid To is an Incoterm used in international trade, under which the seller is responsible for transportation and insurance cost to ship the cargo to the destination port.

CPT or Carriage Paid To is an international shipping term (Incoterm) where the seller pays the transportation cost to deliver the goods to a named destination. However, the risk of loss or damage transfers from the seller to the buyer as soon as the goods are handed over to the first carrier, even though the seller pays for the freight.

CSB-IV (Courier Shipping Bill-IV) is a customs document used in India for exporting eligible commercial goods through courier services. It allows exporters to declare shipment details to customs and supports the clearance and processing of courier exports.

CSB-V (Courier Shipping Bill-V) is a customs document used in India for exporting eligible commercial goods through courier services. It is used to declare shipment details to customs and is generally associated with courier exports where the exporter is not claiming export incentives.

Cargo refers to goods or products that are transported from one place to another by road, rail, air, or sea. It includes everything from raw materials and machinery to consumer goods, food products, and electronics. Businesses use cargo services to move products safely and efficiently between suppliers, manufacturers, warehouses, and customers.

A Cargo Manifest is a detailed document that lists all the goods being transported on a vessel, aircraft, or vehicle, including information about the shipment, consignor, consignee, and cargo details.

Cash Flow is the movement of money into and out of a business. It shows how much cash a company receives and how much it spends during a period.

A caution list contains details of all exporters who haven’t complied with export-related rules and requirements. The list is maintained by the RBI, or Reserve Bank of India, after careful consideration.

A Certificate of Origin is an official document that certifies the country in which goods were manufactured or produced, often required for international trade.

A Commercial Invoice is a legal document issued by the exporter to the importer that details the goods being sold, including price, quantity, and terms of sale. It is one of the most important documents used in international trade and customs clearance.

A Consignee is the individual or organization that receives goods in a shipment. The consignee is typically the buyer or the party responsible for taking delivery of the cargo.

A Consignor is the person or business that sends goods to another party through a transport service. The consignor provides the goods to the carrier and essential details for the journey.

A Container Freight Station (CFS) is a facility where cargo is consolidated (grouped) or deconsolidated (separated) before being loaded into or after being unloaded from shipping containers.

A Container Yard (CY) is a place inside or near a port where shipping containers are placed and handled before the transportation and also after they come back. It works as a holding area for containers that are full (FCL) and ready for export.

Countervailing Duty (CVD) is an extra duty charged on imported goods when the exporting country's government provides subsidies to its producers. It is used to reduce the price advantage created by those subsidies and protect local producers from unfair competition.

A Custom House Agent (CHA) is a licensed person or agency that helps importers and exporters get customs clearance for their shipments. They handle all the major tasks, including paperwork, customs filings, and more complex processes that a business needs to get goods shipped faster.

Customs clearance is the process of getting permission from the customs authorities to import or export goods across different countries. The complete process has multiple steps, including submitting the documents, declaring goods, paying taxes, and completing formalities.

Customs duty is a tax charged by a country's government on goods that are imported or, in some cases, exported. It helps regulate international trade, protects domestic industries, and generates revenue for the government. The amount of customs duty depends on factors such as the type of product, its value, and the country's import regulations.

(Delivered at Place) is an Incoterm where the seller is responsible for delivering goods to a specified destination, but the buyer is responsible for import duties and taxes.

(Delivered at Terminal) is an Incoterm where the seller delivers goods to a specified terminal (port, warehouse, or depot), and is responsible for unloading them.

DDP, or Delivered Duty Paid, is an Incoterm where the seller handles most of the operation for shipping goods to an agreed destination port. The seller arranges transport, pays the freight, gets export clearance, and pays tax and duties. The buyer is also responsible for bearing the risk until the goods reach the destination port.

DGFT, or the Directorate General of Foreign Trade, is a department of the Ministry of Commerce and Industry of India that manages foreign trade. The authority regulates essential operations related to imports and exports, including introducing new policies, authorizing trades along with approving registrations.

Debt Financing is a method of raising capital where a business borrows money from lenders such as banks or financial institutions, with the obligation to repay the principal amount along with interest over a specified period.

A Delivery Order is a document issued by a carrier or logistics provider that authorizes the release of goods to the consignee or their agent at the destination.

Demurrage is a charge levied by shipping lines or port authorities when cargo or containers remain at the port or terminal beyond the allowed free time.

Depreciation is the decreasing value of a business asset over time. Mainly, businesses show depreciation as an expense, and it happens due to multiple factors, including wear and tear or assets becoming outdated.

Detention Charges are fees imposed by shipping lines when a container is kept by the consignee outside the port or terminal beyond the allowed free time.

A dock receipt is the document proof that confirms the goods are received for export by the carrier or terminal. The document contains all the information about the export including cargo type and quantity, along with destination port.

Documentary Credit is a financial arrangement, commonly known as a letter of credit, where a bank guarantees payment to an exporter upon submission of specified documents that meet agreed terms.

Duty Credit Scrip is a certificate issued by the government to exporters that allows them to pay customs duties using the credit earned from export incentives.

Duty Drawback is a refund of customs duties paid on imported inputs that are later used in the production of goods that are exported.

An e-way bill is an electronic document required for transporting goods worth more than the prescribed limit (usually Rs 50,000) within India. It is generated on the GST portal and contains details of the goods, sender, receiver, and transporter to ensure legal and smooth movement of goods.

ECCS (Express Cargo Clearance System) is a customs system used to get faster clearance for express cargo. This system is used for shipments going through courier or express operators at destination airports. 

ECGC (ECGC Limited) is a Government of India enterprise that provides export credit insurance and related support to Indian exporters. It helps protect exporters and lending institutions against certain risks that can prevent or delay payment for exported goods and services.

EDPMS (Export Data Processing and Monitoring System) is an RBI system used by authorised banks to monitor export transactions in India. It helps track export shipments, export documents, and the receipt of export payments from overseas buyers.

An EEFC Account (Exchange Earners’ Foreign Currency Account) is a foreign currency account that eligible foreign exchange earners in India can maintain with an authorised dealer bank. It allows them to keep permitted foreign currency earnings in foreign currency instead of immediately converting them into Indian rupees.

EOU (Export Oriented Unit) is a business unit in India that is set up mainly to produce goods or provide services for export. EOUs can operate in manufacturing, services, software, and other sectors, subject to the applicable rules and approvals.

EPCG (Export Promotion Capital Goods Scheme) is an export promotion scheme under India’s Foreign Trade Policy. It allows eligible exporters to import capital goods at zero customs duty for producing goods or services for export, subject to the scheme’s conditions.

Ex Works is an Incoterm where the seller makes goods available at their premises, and the buyer is responsible for all transportation, risks, and costs from that point onward.

Equity Financing is a method of raising capital by selling shares of a company to investors in exchange for ownership stake.

Export compliance means following all the laws, rules, and regulations when sending goods from one country to another. It includes preparing the correct documents, following customs requirements, and making sure the products can legally be exported to the destination country.

Export Credit is financial assistance provided to exporters to support the production, shipment, or sale of goods to international buyers.

Export Credit Insurance protects exporters against the risk of non payment by foreign buyers due to commercial or political reasons.

An export declaration is a legal document filed with customs to disclose everything about the goods being exported to another country. The document contains essential details, including the type of goods, quantity, value, destination, export info, and buyer info. Customs personnel use these details to verify and clear the cargo.

Export Duty is a tax charged by the government on certain goods when they are exported from the country. It is not charged on most products and usually applies to specific goods where the government wants to manage their export.

Export Finance refers to financial support provided to exporters to fund production, shipment, and working capital needs related to export activities.

Export General Manifest is a document filed by the carrier with customs authorities that provides details of all goods loaded onto a vessel or aircraft for export.

Export Health Certificate is an official document certifying that exported goods, especially food and agricultural products, meet the health and safety standards of the importing country.

Export Invoice is a document issued by the exporter that provides details of goods sold to a foreign buyer, including price, quantity, and terms of sale.

Export Licence is an official authorization issued by the government that allows a business to export specific goods that are restricted or regulated.

An export promotion council (EPC) is an organisation that aims to help exporters with specific industry goods. It coordinates with both exporters and government organisations for export promotion. They provide essential information about markets, trade policies, and export opportunities.

eBRC (Electronic Bank Realisation Certificate) is an electronic record that confirms an Indian exporter has received payment for exported goods or services. It is generated through the DGFT’s electronic system based on export payment information reported by the exporter’s bank.

eSanchit is an electronic system introduced by Indian customers to help importers and exporters to submit eligible documents online. The online platform helps reduce the need to submit physical papers, transforming the complete process from manual to digital. 

FCA Free Carrier is an Incoterm where the seller delivers goods to a carrier or location specified by the buyer, after which the risk transfers to the buyer.

FEMA (Foreign Exchange Management Act, 1999) is an Indian law that regulates foreign trade activities and transactions. It allows businesses to legally import, export, and carry out overseas transactions.

FIRA (Foreign Inward Remittance Advice) is a legal document issued by an Indian bank confirming that the payment has been received from outside the country. It consists of essential details such as the sender, amount, currency, date, and reason.

FIRC is a legal document serving as proof of payment received from a foreign business or individual. This certificate is issued by an authorized bank in India containing essential details: sender information, amount, currency, payment date, and reason.

FOB Free On Board is an Incoterm where the seller is responsible for delivering goods onto a vessel, and the risk transfers to the buyer once the goods are loaded on the ship.

FTP (Foreign Trade Policy) is the policy framework issued by the Government of India to guide and regulate the country’s imports and exports. It sets out the rules, procedures, and measures that businesses need to follow when carrying out international trade.

A financial statement is a report that consists of all the financial details of a business. It conveys whether a business is making a profit or a loss, along with its expenses, liabilities, and assets during a financial year.

A fixed cost is a constant business expense that does not change irrespective of the production level and sales value. Businesses have to pay these costs periodically, even if the sale is zero.

Forfaiting is a financing method where an exporter sells its receivables to a financial institution at a discount in exchange for immediate cash, without recourse.

A Forward Contract is an agreement between two parties to buy or sell something at a fixed price on a future date. The terms are agreed when the contract is made.

Freight charges are the costs paid to transport goods from one place to another. These charges cover the movement of cargo by road, rail, air, or sea and may vary based on the shipment's weight, size, distance, and transport method.

A freight forwarder is an individual or company helping businesses transport their goods from one location to another. They charge for handling transportation and shipping documents for the convenience of the exporter, while coordinating with other parties involved.

Freight Rate is the price charged by a carrier for transporting goods from one location to another.

Full Container Load, or FCL, is a shipping method in which an entire ship is booked for transporting the goods by a single shipper. The crew will not accept cargo from other businesses even if the cargo hold is not completely filled. It provides exclusive space for a single company, and their cargo is kept sealed until it reaches the destination port.

Fumigation Certificate is a document that certifies that goods or packaging materials have been treated with chemicals to eliminate pests and insects.

GR Waiver refers to an exemption from submitting the traditional Guaranteed Remittance (GR) form for certain export transactions. It is relevant to export documentation and foreign exchange compliance in India, where exporters are generally required to provide information about export proceeds to their authorized bank.

GST on imports is the tax levied on imported goods or services imported from another country. These taxes are calculated as IGST or Integrated Goods and Services Tax along with customs duties levied by the authorities at the time of import.

GSTN is an online platform designed for India’s GST system, making different processes easy and helping users to avail services digitally. It is relevant for all taxpayers and tax authorities for various GST-related services like registration, tax payment, filing returns, and more.

Gross profit is Sales Revenue-Cost of Goods Sold or COGS. Total revenue a business earned after subtracting the producing cost of the goods. Basically, the formula reveals the net profit a business makes from its core products or services, excluding expenses.

A Harmonized System Code or HS Code is a standard numerical code used to classify the different types of goods and services for domestic and international trades, easy tax calculations, and clearing customs.

House Bill of Lading is a transport document issued by a freight forwarder to the shipper, detailing the shipment of goods.

IDPMS (Import Data Processing and Monitoring System) is an electronic system used in India to monitor import transactions and related foreign exchange payments. It helps authorized banks and regulators track import documents, payments made to overseas suppliers, and the status of import transactions.

IGST refund is the repayment businesses received after paying taxes on goods or services exported from India. It is repaid by the authorities as the exports are zero-rated under the GST system. An exporter may claim for the refund on IGST paid on exports under applicable rules and conditions.

IRM (Inward Remittance Message) is an electronic record created in India’s banking system when a bank receives foreign currency from an overseas sender. It contains details of the incoming payment, such as the amount, currency, remitter, and purpose of the remittance.

ITC, or Input Tax Credit, is the amount a business can claim after paying GST on eligible purchases for the business. Instead of paying tax on expenses to support the business, the ITC can be claimed to reduce the GST liability.

ICEGATE (Indian Customs Electronic Gateway) is the official online portal of Indian Customs. It allows importers, exporters, customs brokers, and other businesses to complete customs-related tasks such as filing documents, tracking shipments, and making duty payments online.

Import compliance is the set of rules and requirements a country applies to imported goods. To clear customs, importers are required to follow these rules and pay the applicable taxes on goods they bring across the border. They include disclosing product details, submitting correct customs documents, declaring the country of origin, and other requirements.

Import credit is a financial facility offered by banks and NBFCs to help businesses pay an overseas supplier to import goods or for opting for services. These financial institutions provide the amount as a short-term credit to the business, which has to be paid with a decided interest.

Import Declaration is a formal statement submitted to customs authorities detailing the nature, value, and classification of imported goods.

Import Duty is a tax imposed by a government on goods brought into a country from abroad.

Import Export Code (IEC) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) for businesses involved in importing or exporting goods from India. It is generally required for carrying out import and export activities.

Import finance is a financing facility used by businesses to raise capital for buying goods from suppliers in another country. The funds are used to purchase raw materials, machinery, equipment, workforce, inventions, and even imported products.

Import General Manifest or IGM is a legal document submitted to Indian customs to declare all about the goods coming to India via aircraft or vessel. The document contains information such as cargo description, buyer details, quantity, and transport information.

Import Invoice is a document issued by a foreign seller to the importer that details the goods sold, including price, quantity, and terms of sale.

Incoterms or International Commercial Terms are a set of globally accepted trade rules published by the International Chamber of Commerce (ICC). They define the responsibilities of buyers and sellers during the shipment of goods in international trade.

Inland Container Depot (ICD) is an export container handling site located away from the seaport. It is used for storing cargo and completing customs-related work.

Inspection Certificate is a document issued by an authorized agency confirming that goods meet specified quality, quantity, and compliance standards.

Insurance Certificate is a document that provides proof that goods in transit are covered under an insurance policy against risks such as damage or loss.

Intermodal transport is a transportation method in which a single container carrying goods is transported using two or more modes of transport, such as train, flight, or truck. The container switches between the means of transportation, like traveling from point A to B via train, and then from point B to C via truck.

Inventory Turnover is a financial metric that measures how many times a company sells and replaces its inventory during a specific period.

Invoice Discounting is a financing method where a business borrows money against its unpaid invoices while retaining control over sales and collections.

Invoice factoring is a financing solution in which a business gets funding against its unpaid invoices, instead of waiting for customers to pay within the agreed timeline. The lender pays most of the invoice value upfront and later collects the payment directly from the buyer.

Invoice financing a business practice to gain working capital by leveraging their unpaid customer invoices. Many businesses get a portion of the total invoice value as liquid funds with this method for managing daily operations, instead of waiting for the agreed credit period, such as 30, 60, or 90 days.

Irrevocable LC is a type of Letter of Credit that cannot be modified or canceled without the consent of all parties involved.

LUT (Letter of Undertaking) is a document submitted by an exporter to comply with the GST requirements for zero-rated exports. LUT allows registered businesses in India to export goods or services without paying IGST upfront.

Less Than Container Load refers to a shipment that does not occupy an entire container and is combined with other shipments in a single container.

A letter of credit, or LC, is a legal document used in international trade. Issued by the bank on behalf of the buyer to the seller, it promises to pay the invoice value. However, the seller has to meet certain conditions and has to submit the required documents. The document provides confidence to the seller that the payment will be made and benefits the buyer with higher bargaining power with the bank as an intermediary.

Letter of Indemnity is a document in which one party agrees to compensate another for any loss or damage that may occur due to a specific action or situation.

Marine Insurance protects goods and cargo from loss or damage while they're being transported by sea. Exporters and importers typically take out this cover when shipping internationally, and it can also extend to cover connected inland movement, such as goods travelling between a port and a warehouse.

Master Bill of Lading is a transport document issued by the main carrier to a freight forwarder, covering the entire shipment.

Mate Receipt is a document issued by the ship’s officer acknowledging that goods have been received on board the vessel.

NIRVIK (Niryat Rin Vikas Yojana) was an export credit insurance scheme introduced by the Government of India through ECGC. It was designed to provide enhanced insurance cover to exporters and make export credit more accessible by reducing banks’ risk.

Net Profit is the money a business earns after paying all its costs and expenses from its total revenue. The amount shows how much the business actually earned after everything is paid.

ORM (Outward Remittance Message) is an electronic record used by Indian banks to report payments made to overseas suppliers or other foreign beneficiaries. It contains details such as the amount, currency, beneficiary, and purpose of the payment.

Ocean Bill of Lading is a shipping document issued by a carrier for goods transported by sea, serving as a contract of carriage and proof of ownership.

Operating margin is the profit a company makes from its regular business operations after paying operating expenses such as salaries, rent, utilities, and production costs. It is estimated as a percentage of the company’s revenue.

Packing Credit is a short-term export finance facility that helps Indian exporters pay for expenses before goods are shipped. It can be used for buying raw materials, processing, manufacturing, packing, and other costs related to fulfilling an export order.

Packing List is a document that provides detailed information about the contents of a shipment including quantity, weight, and packaging details.

Port of Discharge is the destination port where imported goods are unloaded from a vessel.

A Port of Loading (POL), also called a port of exit or departure port, is a harbor or marine terminal at which cargo is loaded onto a ship leaving for another country. POL is a vital detail mandatory to disclose on customs documents.

Post Shipment Finance is financial assistance provided to exporters after goods have been shipped, to bridge the gap until payment is received from the buyer.

Pre Shipment Finance is funding provided to exporters before shipment to support production, procurement, and processing of goods.

A Pro Forma Invoice is a preliminary document sent by a seller to a buyer before the actual sale is completed. It provides an estimate of the goods or services, including their price, quantity, payment terms, and delivery details.

Profit and Loss Statement is a financial report that summarizes revenues, costs, and expenses over a specific period to determine net profit or loss.

Purchase order financing is a financing method in which banks or NBFCs approve funds for a business to cover the cost of raw materials and production to complete a customer order. This practice helps businesses to get working capital to complete the order for which they don’t have enough funds.

A purpose code is a unique numeric ID used in India to identify the reason for foreign exchange transactions, such as receiving funds from outside the country. Banks use these codes to easily navigate and report these transactions to the RBI (Reserve Bank of India).

RBI, or the Reserve Bank of India, is the central bank of India, serving as a financial regulator. It manages all the banks operating in the country, along with other financial institutions. The apex body handles areas such as monetary policy, bank regulations, foreign exchange management, and currency management.

RFD-01 is an application form used under India’s GST system to claim a refund of eligible taxes or amounts. It is filed electronically on the GST portal by registered taxpayers who are entitled to a GST refund.

Receivables discounting is a financing method that allows a business to get money against its unpaid invoices before customers actually pay them. A bank or financial institution provides funds based on eligible receivables, usually after deducting a financing charge.

Revenue is the total income generated by a business from its primary operations such as sale of goods or services before deducting any expenses.

RoDTEP (Remission of Duties and Taxes on Exported Products) is an export benefit scheme of the Government of India. It aims to refund certain central, state, and local duties, taxes, and levies on eligible exported products that are not refunded through other mechanisms.

RoSCTL (Rebate of State and Central Taxes and Levies) is an export benefit scheme for eligible apparel and made-up textile products in India. It provides a rebate for certain embedded state and central taxes and levies that are not refunded through other existing mechanisms.

SCOMET means Special Chemicals, Organisms, Materials, Equipment and Technologies. This term is a category listed under foreign trade rules of India that covers critical goods and services.

SDF (Statutory Declaration Form) was a form used by Indian exporters to declare export details to customs and confirm that the export proceeds would be received in accordance with foreign exchange regulations.

SEZ (Special Economic Zone) is a special business category in which certain businesses operate with economic benefits. This system is designed to promote industrial and business growth with increased exports and attracting new investments.

SION (Standard Input Output Norms) are standard guidelines issued by India’s Directorate General of Foreign Trade (DGFT) that specify the quantity of inputs normally required to produce a particular quantity of an export product. They are used for certain export promotion schemes, including Advance Authorization.

SOFTEX (Software Export Declaration) is a form used in India for declaring exports of software and certain software-related services transmitted electronically to customers outside India. It is part of the reporting and valuation process for software exports under the foreign exchange regulations.

SRVA (Special Rupee Vostro Account) is a bank account that an authorised dealer bank in India maintains for a foreign bank in Indian rupees. It allows trade between India and another country to be settled in Indian rupees (INR) instead of using a foreign currency such as the US dollar.

Scrutiny means to thoroughly check or examine something to find out mistakes or missing details. The mistake can be in any form that does not meet the requirements. The process is mainly followed in business and trade by the authorities to check the documents and transactions.

Sea Waybill is a transport document used in sea shipments that acts as proof of receipt of goods and contract of carriage but does not serve as a document of title.

A Shipper’s Letter of Instruction (SLI) is a document that an exporter gives to a freight forwarder or carrier with instructions on how to handle and ship the goods. It typically includes details such as the shipper, consignee, products, destination, and shipping requirements.

A Shipping Bill is a legal document submitted to Indian Customs by the exporters to export goods to another country from India. It consists of critical details about the exporters, goods, total value, destination port, and more.

Shipping Instructions are detailed guidelines provided by the shipper to the carrier or freight forwarder regarding how goods should be handled and transported.

A shipping line is a cargo transportation company responsible for sending goods and containers from one port to another. They are hired to manage vessels by a business to move international cargo.

A shipping schedule is a planned timeline that shows when a shipment is expected to leave the origin, arrive at the destination, and move through different stages of transportation. It may include details such as the vessel or flight, departure date, arrival date, port, and expected transit time.

Short Term Trade Finance refers to financing solutions that provide working capital support for trade transactions with a short repayment period.

Sight Letter of Credit is a type of Letter of Credit where payment is made to the seller immediately upon presentation and verification of required documents.

Standby Letter of Credit is a financial guarantee issued by a bank that ensures payment to the beneficiary if the applicant fails to fulfill contractual obligations.

Statement 3 in GST is a supporting statement submitted with certain GST refund applications. It contains details of the invoices and transactions relevant to the refund being claimed, helping the tax authorities verify the amount and eligibility of the refund.

Structured Trade Finance is a specialized form of financing designed to facilitate complex trade transactions by structuring funding around the underlying trade flows, assets, and risk profiles.

Supply Chain Finance is a set of financial solutions that optimize cash flow by allowing suppliers to receive early payment while buyers extend their payment terms.

TEU Container refers to a standard unit of measurement equal to a twenty foot container used to quantify cargo capacity in shipping.

TReDS (Trade Receivables Discounting System) is an electronic platform regulated by the Reserve Bank of India (RBI) that helps MSMEs get their trade invoices financed before the payment due date. It connects MSME sellers with buyers and financiers such as banks and NBFC-Factors.

Tariff Classification is the process of assigning a specific code to goods based on standardized systems to determine applicable duties and regulations.

Terminal Handling Charges are fees charged by port or terminal operators for handling containers during loading, unloading, and storage.

Tonnage refers to the total weight or carrying capacity of cargo, often used to measure shipping volume or vessel capacity.

Trade Credit Insurance is a policy that protects businesses against the risk of non payment by buyers due to insolvency or default.

Trade Finance refers to a range of financial products and services that facilitate domestic and international trade by bridging the gap between buyers and sellers.

A trade loan is a financing facility for a business to gain working capital to pay for raw materials, production, inventory, suppliers, and other trade expenses before customers pay back after an agreed credit timeline.

Transit Time refers to the total time taken for goods to move from the point of origin to the final destination.

Transshipment is a process of moving goods from one vessel or vehicle to another during the journey. It works like a connecting vehicle when there is no direct route available to reach the destination.

Variable Cost refers to expenses that change in direct proportion to the level of production or sales.

A Vostro Account is a bank account that a domestic bank maintains on behalf of a foreign bank in the domestic bank’s country and currency. The term “Vostro” means “your account with us.” In India, for example, a foreign bank may maintain a rupee account with an Indian authorised dealer bank to facilitate eligible cross-border transactions.

Working Capital is the difference between a company’s current assets and current liabilities, representing its ability to meet short term obligations.

Working Capital Finance is funding used by a business to manage its daily expenses. It helps a business arrange money when there is a temporary shortage of cash.

A write-off is a financial or accounting process through which a business removes an amount from its books when it is no longer expected to be recovered. It is generally used when an outstanding amount has become difficult or impossible to collect.