3. Complete the sentences using the necessary term from the box.

cost, insurance, freight irrevocable letter of credit take out The Incoterms amended invoice packing list pro forma

1. __ is a shipping document that accompanies delivery packages, usually inside an attached shipping pouch or inside the package itself.

2. The term __ , Latin for "as a matter of form" or "for the sake of form", is a term applied to practices or documents that are done as a pure formality, perfunctorily, or seek to satisfy the minimum requirements or to conform to a convention or doctrine.

3. A shorthand term for signifying that the price invoiced or quoted by a seller includes insurance and all other charges up to the named port of destination is known as__

4. __ rules are an internationally recognized standard and are used worldwide in international and domestic contracts for the sale of goods. First published in 1936, these rules provide internationally accepted definitions and rules of interpretation for most common commercial terms.

5. A “credit note” or __ can be issued when there is a problem with the wrong quantity of goods, wrong price on the invoice or any other problem with the delivered goods, but there is no mention of the correction of only the buyer’s name.

6. A quantity collected at one time, especially the amount of profit or receipts taken on a business arrangement or venture is known as ­­__.

7. We use the term __ for a form of contractual agreement that cannot be altered, withdrawn or terminated.

8. The __serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay.

4. Match the words from two columns to form a phrase.

bill	of credit
receipt	account
letter	payments
certificate	of landing
open	statement
export	of origin
advanced	license
payload	of shipment

5. Fill in the gaps consulting exercise 1.

1. A b__ of l__ is a key document used in the transport of goods. As a document of title, it is also an important financial instrument.

2. "D__ a__ p__ terms are usually used when payment is expected by the supplier or exporter from the buyer or importer immediately, otherwise known as "at sight".

3. H__ T__ S__ classifies a good based on its name, use, and/or the material used in its construction and assigns it a ten-digit number.

4. C__ o__ O__ is a printed form, completed by the exporter or its agent and certified by an issuing body, attesting that the goods in a particular export shipment have been wholly produced, manufactured or processed in a particular country.

5. The A__ W__ is the most important document issued by a carrier either directly or through its authorized agent. It is a non-negotiable transport document. It covers transport of cargo from airport to airport.

6. The l__ o_ c__ serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit's issuer.

7. The p__ f__ accounting is a statement of the company's financial activities while excluding "unusual and nonrecurring transactions" when stating how much money the company actually made.

8. The I__ rules have been developed and maintained by experts and practitioners brought together by ICC and have become the standard in international business rules setting.

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