Incoterms® rules

Standard sets of trading conditions setting out responsibilities of buyer and seller

• who pays for carriage, loading, unloading, insurance, duties etc.
• at what point buyer assumes risk.

Latest revision is Incoterms 2010, which came into force 1st Jan 2011

For full list and more details, see Incoterms in main reference section.

Institute Cargo Clauses

Standard conditions of insurance cover for goods, established by the Institute of London Underwriters.

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.

International Chamber of Commerce

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

• Uniform Rules for Collections no. 322
• Uniform Customs and Practices no. 500

Invoice

See: commercial invoice, consular invoice

Inward collection

How a Collecting or Presenting bank will refer to a collection.

Collection that has been received from an overseas bank or exporter for presentation to a buyer in this country.

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 that cannot be cancelled or amended unless all parties give their agreement. Under UCP 500 all credits are irrevocable unless explicitly stated to be revocable.

Revocable credits are very rare.

Issuing bank

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