International Commercial Terms Document - I

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Import Licenses: Licenses required by some countries to bring in a foreign-made good. In many cases, import licenses are also used by the issuing country to control the quantity of imported items.

Incoterms: International commercial terms used nearly universally in letters of credit, international contracts and other documents. These include who pays for carriage, loading, unloading, insurance, duties etc. The common Incoterms are CIF, FOB, CFR, and Ex Works. They are compiled and published by the International chamber of Commerce (212.206.1150).

Indeminity Clause: A clause in which the one party indemnifies the other. In leasing, generally a clause whereby the lessee indemnifies the lessor from loss of tax benefits.

Indenture of Trust: (Indenture) An agreement between the owner trustee and the indenture trustee: The owner trustee mortgages the equipment and assigns the lease and rental payments under the lease as security for amounts due to the lenders. Same as a security agreement or mortgage.

Inland bill of lading: A bill of lading used in transporting good overland to the exporter's international carrier.

Institute Cargo Clauses: Standard conditions of insurance cover for goods, established by the Institute of London Underwriters. This is also referred to as clauses A, B and C.

Insurance certificate: Document giving details of insurance cover for a consignment. The certificate will cross-reference a master insurance policy and must be countersigned.

Insurance cover note: Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.

Insurance policy: Document setting out full details of insurance in force. A policy MAY refer to a single consignment and be sent with the other commercial documents. More commonly there is an open policy for all the shipper's consignments. For each consignment an insurance certificate is issued, cross-referencing the policy.

Intellectual Property: Intangible items protected by patents, trademarks and copyrights, such as creative works and inventions. There are international organizations that deal solely with intellectual property, and increased protection of intellectual property, and increased protection of intellectual properly rights is an issue of discussion in GATT, WTO and other talks.

Intermodal: The use of two or more modes of transportation to complete a cargo move; truck/rail/ship, or truck/air, for example.

International Chamber of Commerce: International non-governmental body concerned with promotion of trade and harmonisation of trading practice. Responsible for drafting and publishing:

Inward collection: How a Collecting or Presenting bank will refer to a collection. The collection that has been received from an overseas bank or exporter for presentation to a buyer in this country for payment.

Inward letter of credit: How an Advising or Confirming bank will refer to a letter of credit. A letter of credit issued by an overseas bank for advice to a seller in this country.

Irrevocable Letter of Credit: A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee. The opposite of a revocable letter of credit, which can be canceled or altered by the drawee, or buyer, after it has been issued by the drawee's bank. Under UCP 500 all credits are irrevocable unless explicitly stated to be revocable.

Issuing bank: Bank giving the primary payment undertaking for a letter of credit, acting on behalf of a buyer.