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Terminology you will come across during your course if transacting export business
1 FOB this is free on board, meaning u get part payments if your goods gets unto d vessel or ship, once documents have been sighted
Cif : commodity, insurance and freight :on this u r responsible for ur commodity,insurance on the commodity and freight of the commodity till it gets to its destination before you will be paid
CNF, commodity and freight, you will be responsible for your commodity until it gets to its destination before you get paid
Lc, letter of credit this is a document issued by a bank or financial institution , it is a payment mechanism used in international trade to provide an economic guarantee from a credit worthy bank to an exporter of goods. This ensures that once you ship ur commodity, u get paid
Bl bill of lading is a document that gives detail of the commodity being shipped, ie if u do fob, u will be paid once you present your bill of lading
LPO: local purchase order; this is a document issued from a buyer to a seller, indicating the commodity, price and quantity to be delivered as agreed by both parties . this is usually within the border of a country. So both parties do not default
Aflatoxin: this are toxic ocompound found in foods m, they are usually formed as a result of certain moulds, they can cause liver damages n cancers: this compounds should be within each countries expected minimum
Foreign matters: this are usually unwanted substance found in commodity which at not part of the said goods but find themselves in it, they should be within the minimum range e.g stones, feathers, sticks chaff etc.
