Glossary for Customs Management

The bank that advises the credit at the request of the Issuing bank.

The bank to which the Issuing Bank forwards the L/C. This bank notifies the Exporter (Beneficiary) about the L/C. This is usually a correspondent of the issuing bank, located in the same country as the beneficiary. The advising bank verifies the L/C before sending the L/C to the beneficiary. The advising bank does not take on payment obligations.

The party on behalf of which the letter of credit is issued. The L/C contract is drawn, based on the request of the applicant. The applicant is bound by law and liable to cover the risk(through a bank) against all obligations and responsibilities imposed by foreign laws.

The bank used to issue the L/C, in case the Issuing bank cannot issue the L/C, for reasons such as SWIFT arrangement is not available, or the bank is not allowed to issue a L/C because of corporate rules or government regulations.

The bank to which the documents are presented by the beneficiary. This bank is authorized to disburse the payment, accept or negotiate the L/C contract.

The party in favor of which the documentary credit is being issued. Payments are made to the beneficiary (seller/exporter).

The authorized quantity, beyond which import duties must be paid and cannot be claimed.

The authorized value, beyond which import duties must be paid and cannot be claimed.

A set of companies for which you can set up customs authorizations. A company set can contain one or multiple financial companies or both financial and logistic companies.

The exported product that is obtained using the goods imported with the customs authorization.

The undertaking provided by the confirming bank(in addition to the Issuing Bank), to honor or negotiate a L/C.

The bank that confirms the L/C contract based on the request raised by the Issuing bank. The Confirming bank is responsible for payment to the exporter after the required documents are presented.

The party (usually the buyer) which receives the consignment at the port of destination. The consignee is considered as the owner of the consignment during the filing of the customs declaration, and is responsible for paying duties and taxes. The formal ownership of the consignment is transferred to the consignee after the seller's invoice is paid completely.

The L/C contract which can be extended over and above the specified time period. In this L/C, the contract amount that is not used over a specific period, is carried forward.

Customs Authorizations are issued to allow duty free import of products, used to produce the export product (after making normal allowance for wastage). In addition, fuel, oil, energy catalysts, and so on, which are consumed to obtain the export product, are also allowed to be imported, free of import duties.

A customs controlled warehouse in which the imported goods can be housed by the importer without the payment of duty. The duty is paid during the clearance of the goods from the customs bonded warehouse for domestic consumption.

A licensed agent for transactions related to the import or export of goods at a customs port.

Customs regulation is used to define the Customs authorization process and the related data that must be specified in the Customs Authorizations (tcgtc0140m000) session to implement the process.

The unit in which the imported product is measured by the customs officials.

The amount that an imported product is judged to be worth by customs officials, to levy taxes or import duties. The customs value of a product is based on the price paid by the receiver of the goods, and other costs associated with shipping or import.

the benefits offered by the government, to enterprises, to increase the exports from a country.

Input tax credit is the tax credit(amount) you can claim on the taxes already paid for goods or services.

The bank that issues an L/C contract.

The letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions. A Letter of Credit is a financing agreement most commonly used for trade arrangements when goods cross international borders. It is a written instrument issued by a bank at the request of the customer (the importer or buyer), whereby the bank promises to pay the Seller (the exporter or beneficiary) for goods or services provided, in case the exporter presents all the required documents and meets all the terms and conditions as stipulated in the L/C.

A Manufacturing Plant Code (MPC) is an identity for a manufacturing plant which is linked only to a single location dimension code. The MPC can be:

The bank that reviews the documents(specified in the L/C for compliance) and remits payment to the beneficiary.

The party to be notified about the arrival of the goods at the destination. The party to be notified is usually the importer and/or the importer’s agent.

A preliminary summary of the letter of credit contract sent by the Issuing Bank to the Advising Bank. The Pre-advise document notifies the recipient that the buyer has generated a L/C contract for the specified beneficiary.

The name of the bank authorized by the sender to reimburse the contract amount specified in the L/C .

A single L/C contract that covers multiple-shipments which extend over a period of time. The buyer generates a L/C contract that can be extended either in value (an available fixed amount which can be replenished) or in time (an amount is available in fixed installments over a period such as week, month, or year), instead of a new L/C for each shipment.

A written instrument issued by a bank (Issuing Bank) at the request of the customer (Applicant) on behalf of a beneficiary. The Issuing Bank agrees to provide financial remedy in the event that the Applicant defaults on the terms and conditions specified in the Standby L/C. Standby Letters of Credit is often issued at the request of the importers, and in favor of the exporters (as financial security for goods purchased on Open Account).

The entity expected to accept and pay a bill of exchange (check, draft, L/C, etc.) on presentation, or on a certain date (called due date or maturity date). This is usually the Confirming Bank or the Issuing Bank.

The bank which credits the amount to a transferee account.

The bank authorized by the Issuing bank to:

The shipment of goods to an intermediate destination, before the shipment reaches the final destination.