Import Export Specialist Interview Preparation Guide

Advising Bank is bank operating in an exporter's country that handles letters of credit (see Letter of Credit) for a foreign bank by notifying the exporter that the credit has been opened in its favour. The advising bank lets the exporter know exactly what the conditions of the letter of credit are but isn't necessarily responsible for payment.

British Trade International is government body operated by the Department of Trade and Industry and the Foreign Commonwealth Office to promote trade development and promotion in the UK . Through UK Trade & Investment, it offers free and impartial advice to businesses which trade abroad, both online and through its information centre.

CFR is cost and freight. This is an Incoterm. Find more information about Incoterms at the Incoterms 2000 website. The seller clears the goods for export and meets the cost of carriage to the port in the destination country. But the buyer bears all risks after delivery, which occurs when goods pass over the ship's rail in the port of shipment. The buyer also bears any extra costs caused by events that happen after delivery.

World Trade Organisation (WTO) is intergovernmental organisation set up in 1995 to negotiate and administer trade agreements, handle trade disputes and monitor national trade policies.

SITPRO (formerly The Simpler Trade Procedures Board) is public body which aims to help businesses trade more effectively across national borders and cut the red tape associated with international trade. Find information about SITPRO at the SITPRO website.

Open account is a trade arrangement under which goods are shipped by an exporter without guarantee of payment. This is similar to offering credit to a customer, with the exporter bearing all the risks of offering credit. Open account payment should only be used if you have an established relationship with the buyer and I typically for exports within the EU.

Additional costs are the price you negotiate with overseas customers also need to include some additional costs. For example, transportation costs may include the cost of special packaging and labelling, while the detailed documentation you generally need may involve extra costs.

CIF is cost, insurance and freight. This is also an Incoterm. Find more information about Incoterms at the Incoterms 2000 website. The seller clears goods for export and meets the cost of carriage to the port in the destination country, including insurance. But the importing buyer bears all risks, except marine insurance, after delivery.

Distributor is overseas agent which sells for a supplier directly and maintains an inventory of the supplier's products. (See Commercial agent or sales agent).

Freight forwarder is if you want to send goods overseas you'll normally need the services of a freight forwarder. The forwarder quotes for freight costs and other charges, prepares most of the freighting and customs documents, arranges marine insurance and attends to other freighting details.