This term has several related meanings: (1) A time draft (or bill of
exchange) that the drawee has accepted and is unconditionally
obligated to pay at maturity. The draft must be presented first for
acceptance - the drawee becomes the "acceptor" - then for
payment. The word "accepted" and the date and place of
payment must be written on the face of the draft. (2) The drawee's
act in receiving a draft and thus entering into the obligation to
pay its value at maturity. (3) Broadly speaking, any agreement to
purchase goods under specified terms. An agreement to purchase goods
at a stated price and under stated terms.
Ad
valorem
According
to value. See Duty.
Advance
against documents
A
loan made on the security of the documents covering the shipment.
Advising
bank
A
bank, operating in the exporter's country, that handles letters of
credit for a foreign bank by notifying the export firm that the
credit has been opened in its favor. The advising bank fully informs
the exporter of the conditions of the letter of credit without
necessarily bearing responsibility for payment.
Advisory
capacity
A
term indicating that a shipper's agent or representative is not
empowered to make definitive decisions or adjustments without
approval of the group or individual represented. Compare Without
reserve.
Agent
See
Foreign sales agent.
Air
waybill
A
bill of lading that covers both domestic and international flights
transporting goods to a specified destination. This is a
nonnegotiable instrument of air transport that serves as a receipt
for the shipper, indicating that the carrier has accepted the goods
listed and obligates itself to carry the consignment to the airport
of destination according to specified conditions. Compare Inland
bill of lading, Ocean bill of lading, and Through bill of lading.
Alongside
The
side of a ship. Goods to be delivered "alongside" are to
be placed on the dock or barge within reach of the transport ship's
tackle so that they can be loaded aboard the ship.
Antidiversion
clause
See
Destination control statement.
Arbitrage
The
process of buying foreign exchange, stocks, bonds, and other
commodities in one market and immediately selling them in another
market at higher prices.
Asian
dollars
U.S.
dollars deposited in Asia and the Pacific Basin. Compare
Eurodollars.
