Trade glossary

All risk and cost to buyer; seller only makes goods available at their premises. Heaviest term on the buyer.

Risk passes to buyer when seller hands goods to buyer's carrier at the named place. Export clearance is on the seller.

Seller pays freight to destination, but risk passes to buyer at the first carrier. Suitable for multimodal transport.

CPT + seller arranges broad-coverage (Institute Cargo Clauses A) insurance. Risk transfer same as CPT.

Seller delivers goods at named destination, not unloaded; import clearance is on the buyer.

Like DAP but seller also unloads at destination. The only Incoterm with unloading responsibility.

Heaviest term on the seller: export + import clearance, freight, taxes included. Buyer just receives at the door.

Sea only. Seller delivers alongside the ship at the loading port; loading onto the ship is on the buyer.

Sea only. Seller loads goods onto the ship at the loading port; risk transfers once loading is complete.

Sea only. Seller pays freight to destination port, but risk transfers at the same point as FOB.

Sea only. CFR + seller arranges minimum (Institute Cargo Clauses C) insurance. Most-used term by Turkish exporters.

Non-binding pre-invoice stating seller's offered terms (price, quantity, Incoterm, payment). Sufficient for opening L/Cs and pre-customs declarations.

The binding main sale document. Used for customs valuation; VAT and customs duty are calculated on it.

Sea-transport contract + proof of receipt + negotiable instrument of title. Goods cannot be released without the original B/L.

Per-box/pallet breakdown: gross/net weight, volume, count, contents. Required for customs and warehouse intake.

Document proving the country of manufacture; critical for preferential tariffs. Variants: A.TR (EU), EUR.1, Form A.

Bank commitment to pay the exporter against compliant documents; documentary instrument under UCP 600. Used when mutual trust is low.

ICC rules governing L/Cs. Document examination, discrepancy handling and overall workflow follow this text.

Mismatch found in L/C documents. Stops the payment until resolved; most common: date, amount, Incoterm mismatch, missing document.

Bank releases documents only when the buyer pays. More flexible than L/C but less secure.

Wire transfer; can be advance or after-sight. The simplest and most common method.

Documents held by the bank, released when the buyer pays. Similar in spirit to D/P.

12-digit Turkish classification code for goods. First 6 digits are HS, next 2 are EU Combined Nomenclature, last 4 are national sub-codes.

6-digit international goods classification maintained by the WCO. The first 6 digits of GTIP follow this system.

Simplified customs declaration for micro-export (e-export). VAT exemption applies.

Statement of goods filed with the customs authority. Duties are computed on this declaration.

Warehouse under customs supervision. Duties are not paid; goods can be released for domestic use or re-exported.

Defers customs duty and VAT on inputs used to manufacture goods that will be re-exported. Document-driven.

Exports are VAT-exempt; the input VAT exporters paid can be reclaimed by refund or set-off. Requires monthly declaration and an SFA report.

A 6% fund applied on deferred imports in Turkey. Not applied on advance payments. Factor it into your cost.

Protection against FX volatility via forwards, options, or natural offsets. Locks the rate until collection.

Daily official FX rates from the Central Bank of Turkey. Reference for accounting and customs valuation.

Collection period (e.g., "Net 60"). In L/C terms: "sight" (on presentation) or "usance" (deferred).

US Treasury Department's sanctions enforcement office. The SDN List is its widely-published sanctions roster.

OFAC's named individuals/entities sanctions list. Dealing with anyone on it exposes the exporter to US sanctions.

Items usable for both civilian and military purposes (e.g., certain electronics, lasers, drones). Require an export license.

The US Commerce Department arm running export controls. EAR is administered here.

Transport charge, by sea, road, air or multimodal, for moving goods from A to B.

Penalty for keeping a container at the port/depot beyond the free time. Common when L/C document review is delayed.

Charge for holding a container at the buyer's premises. Distinct from demurrage (which happens at the port).

Short-haul road transport from port to warehouse and vice versa.