Vocabulary Exercises. Reading Comprehension Questions

8. Where can individual or organization get packing standards for their commodities?

circulation	contract	documentation
regimes	smuggling narcotics	return
hazardous shipments	net weight
shipping document	food and pharmaceuticals

2. The commercial invoice is the primary … used by Russian customs officials for merchandise control and valuation.

3. The … includes the weight of packaging for retail sale; gross weight includes the weights of merchandise and packaging excluding the weight of a container.

4. The procedure for certification of … is cumbersome, and is usually performed through the administrative structures of the federal government.

5. Shipping … may need to include a "certificate of conformity," "certificate of safety," or sanitary or health certificate.

6. Imports of … require certification from the Russian Ministry of Health and the Russian Veterinary Section respectively.

8. The customs agency of RF should … export customs duties and taxes paid at customs when goods were taken out of Russia if goods are re-imported within 3 years of the export date.

1. Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit).

2. Buyer apply to his issuing bank, usually in Buyer's country, for letter of credit in favor of Seller (beneficiary).

3. Issuing bank request another bank, usually a correspondent bank in Seller's country, to advise, and usually to confirm, the credit.

4. Advising bank, usually in Seller's country, forward letter of credit to Seller informing about the terms and conditions of credit.

5. If credit terms and conditions conform to sales contract, Seller prepare goods and documentation, and arrange delivery of goods to carrier.

6. Seller present documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

7. Bank examine the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

8. Bank, if other than the issuing bank, send the documents and draft to the issuing bank.

9. Bank examine the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored.

10. Documents release to Buyer after payment, or on other terms agreed between the bank and Buyer.

11. Buyer surrender bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.

Quotation	(a) An agreement between the buyer and the seller stipulating every details of the transaction. It is a legally binding document. It is therefore advisable to seek legal advice before signing the contract.
Sales Contract	(b) It is a formal demand note for payment issued by the exporter to the importer for goods sold under a sales contract. It should give details of the goods sold, payment terms and trade terms. It is also used for the customs clearance of goods and sometimes for foreign exchange purpose by the importer.
Pro Forma Invoice	(c) A list with detailed packing information of the goods shipped.
Commercial Invoice	(d) An offer to sell goods and should state clearly the price, details of quality, quantity, trade terms, delivery terms, and payment terms.
Packing List	(e) A report issued by an independent surveyor (inspection company) or the exporter on the specifications of the shipment, including quality, quantity, and/or price, etc; required by certain buyer and countries.
Inspection Certificate	(f) An insurance policy is an insurance document evidencing insurance has been taken out on the goods shipped, and it gives full details of the insurance coverage. An insurance certificate certifies that the shipment has been insured under a given open policy and is to cover loss of or damage to the cargo while in transit.
Insurance Policy/ Certificate	(g) An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and importation specifications (weight, size and similar characteristics). This is not issued for demanding payment but may be used when applying for an import licence/permit or arranging foreign currency or other funding purposes.
Product Testing Certificate	(h) Document issued by the competent country when agricultural or food products are being exported, to certify that they comply with the relevant legislation in the exporter's country and were in good condition at time of inspection, prior to shipment and fit for human consumption.
Health Certificate	(i) Frequently an international requirement that any consignment of plants or planting materials importing into a country shall be accompanied by a Phytosanitary Certificate issued by the exporting country stating that the consignment is found substantially free from diseases and pests and conforms with the current phytosanitary regulations of the importing country.
Phytosanitary Certificate	(j) A certificate to certify the products are conformed to a certain international/national technical standard, such as product quality, safety and specifications, etc.
Fumigation Certificate	(k)A document required by some foreign countries, showing shipment information such as consignor, consignee, and value description, etc. Certified by a consular official of the importing country stationed in the foreign country, it is used by the country's customs officials to verify the value, quantity and nature of the shipment.
ATA Carnet	(l)A pest control certificate issued to certify that the concerned products have been undergone the quarantine and pre-shipment fumigation by the approved fumigation service providers.
Consular Invoice	(m)An international customs document used to obtain a duty-free temporary admission for goods such as exhibits for international trade fairs, samples and professional equipment, into the countries that are signatories to the ATA Convention.

Export-import procedure; sales contract; re-import; licensed customs broker; enforcement organization; land and sea borders; ports of entry; packing list; country of origin; careful check.