G
General Average
Loss which is the result of a sacrifice voluntarily made or an expense incurred; for the sole purpose of saving a ship and its cargo in face of a common danger (e.g. jettison of cargo to lighten a ship in distress). The loss is borne proportionately by ship and cargo owners according to their respective interests in the voyage.
Gross Weight
The weight of the merchandise in its shipping form, i.e. including all its packaging.
I
ICC 322
Uniform Rules for Collections
ICC 323
Standard Forms for Issuing Documentary Credits
ICC 420
Guide to the Prevention of International Trade Fraud.
ICC 460
Incoterms 1990. Explains the 13 standard Incoterms.
ICC 500
Uniform Customs and Practice for Documentary Credits (1993 revision) replaced the previous ICC 400 as from 1 January 1994.
ICC 522
Uniform Customs and Practice for Documentary Credits (1995 revision) replaced the previous ICC 322 as from 1 January 1996.
Import License
A permit issued by the importing country'S authorities in respect of goods subject to import licensing restrictions.
Incoterms
Shipping Terms - see Introduction to International Trade.
Indemnity
Also known as Letter of Guarantee (L/G), it is an undertaking given in respect of discrepancies in documents presented under a credit. The beneficiary who issues the indemnity is primarily liable to repay funds received from the negotiating bank in settlement under the credit, if the negotiating bank cannot obtain reimbursement from the issuing bank as a result of documents being rejected by the applicant.
Inherent Vice
The propensity of a commodity to self-destruction which gives rise to a high insurance risk, therefore cover is given only after payment of an additional premium (e.g. fruit rots, coal-dust spontaneously ignites).
International Chamber of Commerce (ICC)
The international body which promotes and facilitates world trade, and which codifies world trade practices in various publications - see ICC Rules?under Introduction to International Trade.
Irrevocable Credit
Constitutes a definite undertaking of the issuing bank and the confirming bank, if any, to honour the credit provided the terms of the credit are observed. It may be advised to the beneficiary without engagement by the advising bank, and cannot be amended or cancelled unless the issuing bank, the confirming bank and the beneficiary agree.
Issuing Bank
The bank that opens a documentary credit at the request of its customer, the applicant.
Letter of Credit (L/C)
American term for documentary credit. In the United States, the terms D/C can often be confused for documentary collection.
Letter of Hypothecation
A promise to hold goods as security taken from customers who are granted loans against goods imported on a collection basis.
Loan Against Imports (LAI)
Loans granted to import customers for payment of bills.
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