Glossary

The C88 is a customs form used for both exports and imports. The C88 is not used as frequently as in the past as most customs entries are now done electronically using the NES system.

This is a less expensive way of being paid than using a Letter of Credit but does not afford the seller the same level of security that a Letter of Credit does.

All the documents are sent to the buyers bank (usually through a UK bank) including the transport document and a Bill of Exchange. The buyer is informed when the documents arrive and in the case of a shipment by sea he will need to collect the documents to claim the goods. Before the bank gives him the document if the Bill of Exchange is ‘at sight’ the buyer must pay the amount due. If the goods have been sent by air he will be able to claim and receive the goods without the Air Waybill as this document does not have the same properties as a Bill of Lading. The exporter is then relying on the buyer going to the bank to receive the documents which he can obviously do in his own time.

The Currency Adjustment Factor (CAF) is an adjustment to the shipping line's freight tariff which takes into account variances between the currency in which freight is normally billed and those under which expenses are incurred.

The Common Agricultural Policy (CAP) covers a broad range of food and agricultural produce, including basic food products and inedible organic products. In general, CAP covers basic products and commodities as opposed to manufactured products; however, some other goods are included.

Cargo insurance (also called marine insurance) covers physical damage to, or loss of your goods whilst in transit by land, sea and air and offers considerable opportunities and cost advantages if managed correctly. Unfortunately, many UK traders do not want to become involved in arranging this type of insurance because they feel they do not have sufficient knowledge. They see it as an unnecessary expense involving extra administration, and make the mistake of allowing suppliers or customers to control this vital area of business.

Receiving payment in advance of shipping the goods is good news for the exporter but consideration should be made as to whether the exporters competitors give better payment terms such as open account or cash against documents. Sometimes the buyer will request an advance payment guarantee before payment is made (see advance payment guarantee).

A Certificate of Conformity may be asked for by the importer (buyer) . This is usually an undertaking on the exporters headed paper to the effect that the goods conform to certain manufacturing standards. Sometimes the exporter may ask for the Certificate of Conformity to be issued by a recognised independent inspection agency such as SGS.

See Tariff Code