Lexicon of Cross-Border
Execution.

The Renewable Energy Directive's list of feedstocks for advanced biofuels: Part A feedstocks (such as certain residues and wastes) count double toward the advanced sub-target, while Part B - used cooking oil and certain animal fats - is double-counted but capped.

A bank's guarantee endorsed directly on a bill of exchange, by which the bank assumes liability for payment at maturity. An avalised draft is readily discountable and is the usual underlying instrument in forfaiting.

A structure in which an intermediary uses an incoming export credit as support for a second, separate credit opened in favour of its supplier. The two credits are legally independent, which distinguishes it from a transferable LC.

An unconditional written order requiring one party to pay a fixed sum to another on demand or at a defined future date. Once accepted - and, where required, avalised by a bank - it becomes a negotiable payment claim.

A carrier's receipt for goods shipped, evidence of the contract of carriage and - when issued in negotiable form - a document of title transferable by endorsement. Control of the original bills controls delivery of the cargo.

A customs-licensed facility in which imported goods are stored with duty and import VAT suspended until they are released for home use or re-exported. It defers and can avoid duty on goods held pending sale or onward shipment.

The value of eligible collateral - inventory and receivables, after advance rates, reserves and concentration limits - against which a revolving facility may be drawn. It is recalculated periodically as stock and receivables turn.

The EU mechanism under Regulation (EU) 2023/956, as amended, that prices the embedded emissions of certain imports - cement, iron and steel, aluminium, fertilisers, hydrogen and electricity. Liability accrues in the definitive phase from 1 January 2026; cost can be modelled with the CBAM cost calculator.

A laboratory document certifying that a consignment meets its agreed specification - for example purity, moisture or grade. It underpins quality clauses, price adjustments and dispute resolution.

A document attesting the country in which goods were produced, used for customs clearance, trade statistics and preferential-tariff claims. Its accuracy is increasingly scrutinised under origin and sanctions rules.

The seller pays the cost and freight to bring the goods to the named destination port, but risk passes to the buyer once the goods are on board at shipment. The seller arranges carriage; the buyer carries the marine risk in transit.

The contract under which a vessel is hired - for a single voyage (voyage charter) or for a defined period (time charter). It fixes freight, laytime, and the allocation of voyage costs and risks.

As CFR, but the seller also procures minimum marine insurance for the buyer's benefit during carriage. Risk still passes on shipment, so the insurance covers the buyer's exposure in transit.

As CPT, but the seller also contracts insurance for the carriage; under Incoterms 2020 the required cover is the higher Institute Cargo Clauses (A) level. Risk passes on handover to the first carrier.

The consignment note for the international carriage of goods by road, issued under the CMR Convention. It evidences the contract of carriage and the carrier's receipt of the goods.

A tripartite agreement under which an independent collateral manager takes physical custody and control of goods pledged as security, releasing them only on the financier's written instruction. Genuine control of release is what makes inventory bankable.

A documentary credit to which a second bank, usually in the seller's country, adds its own irrevocable undertaking to pay. Confirmation removes issuing-bank and country risk, which is decisive when the issuing bank sits in a higher-risk jurisdiction.

The seller pays carriage to the named destination, while risk passes when the goods are handed to the first carrier. It is the multimodal equivalent of CFR.

The Corporate Sustainability Due Diligence Directive, Directive (EU) 2024/1760 as amended by Directive (EU) 2026/470, requiring in-scope companies to conduct human-rights and environmental due diligence across their chain of activities. Obligations apply progressively to the largest companies first.

The seller delivers when the goods are placed at the buyer's disposal at the named destination, ready for unloading; the seller bears all risk and cost to that point except import clearance and duty.

The seller delivers the goods, cleared for import and with all duties and taxes paid, at the named destination. It places the maximum obligation on the seller.

A settlement method in which transfer of title and payment are made conditional on each other, so that neither party is exposed to the other's default. It eliminates principal risk at the moment of exchange.

Demurrage is the sum the charterer pays for exceeding the agreed laytime; despatch is the reward, often half the demurrage rate, for completing loading or discharge early. Together they price the use of the vessel's time in port.

Any inconsistency between the documents presented and the terms of a letter of credit. A discrepancy entitles the bank to refuse payment until the applicant waives it, and is the most common cause of LC delay.

A settlement mechanism in which banks forward shipping documents to the buyer against payment (Documents against Payment) or against acceptance of a draft (Documents against Acceptance), under ICC URC 522. The banks act as agents and give no payment guarantee, so it sits between open account and a letter of credit on the risk scale.

The seller delivers, and bears risk, until the goods are unloaded at the named destination. It is the only Incoterm that requires the seller to unload at destination.

The direct and, where applicable, indirect greenhouse-gas emissions released in producing a good, expressed per tonne of product. They are the quantity on which the CBAM obligation is calculated, using verified actual values or published defaults.

The Economic Operators Registration and Identification number that any business must hold to lodge customs declarations and clear goods in the EU. It is the operator's unique customs identity across all member states.

An arrangement in which funds or documents are held by a neutral third party and released only when defined conditions are met. It lets counterparties that do not fully trust each other transact against an independent gatekeeper.

Regulation (EU) 2023/1115, which requires geolocation-backed due diligence to place cattle, cocoa, coffee, oil palm, rubber, soya, wood and derived products on the EU market. It obliges operators to prove goods are deforestation-free and legally produced.

A movement certificate evidencing preferential origin under an EU free-trade agreement, on the strength of which the importer claims a reduced or zero duty. Its validity depends on meeting the agreement's rules of origin.

The seller makes the goods available at its own premises; the buyer bears all cost and risk from that point, including loading and export clearance. It places the maximum obligation on the buyer.

The sale or financing of short-term trade receivables, with or without recourse, typically on open-account terms. It accelerates working capital and can include collection and credit-protection services.

The seller delivers when the goods are placed alongside the vessel at the named port of shipment; the buyer bears cost and risk from that point. It suits bulk or break-bulk cargo loaded portside.

The seller delivers, cleared for export, to a carrier nominated by the buyer at a named place; risk passes on that delivery. FCA is the modern term recommended for containerised cargo handed over at a terminal.

An arrangement in which a collateral manager leases and controls a defined area at the borrower's own premises, creating independent custody on site. It allows goods to be financed without moving them to a public warehouse.

The seller delivers when the goods are on board the vessel at the named port of shipment, after which risk and cost pass to the buyer. It remains the dominant term in seaborne bulk-commodity trade.

A contractual clause that suspends or excuses performance prevented by defined events beyond a party's reasonable control. Its precise wording - and whether it covers the event in question - determines the parties' relief.

The purchase, without recourse to the seller, of future trade receivables - frequently avalised drafts or deferred-payment letters of credit. It converts a medium-term credit sale into immediate cash and transfers the payment risk to the forfaiter.

A freight forwarder's irrevocable certificate that it has taken goods into its charge for dispatch to a named consignee, commonly the FIATA FCR. It is the seller's proof of delivery in buyer-controlled logistics under FCA terms.

The percentage by which a fuel's greenhouse-gas emissions fall below the fossil comparator of 94 gCO2e/MJ, measured on an Annex V basis. RED III requires at least a 65% saving for most installations placed in service from 2021.

The Harmonized System commodity-classification number that determines a product's tariff rate, import controls and - for in-scope goods - CBAM coverage. Correct classification governs duty, documentation and compliance.

The ICC Incoterms 2020 rules, eleven standard three-letter terms that allocate, between seller and buyer, the costs, risks and obligations of delivery in a sale of goods. They define the point at which risk passes and who arranges carriage, insurance and clearance - but not title or payment. See the interactive Incoterms 2020 reference for where risk and cost pass under each rule.

A customs procedure that suspends import duty and VAT on goods brought in for processing and subsequent re-export. It avoids duty on inputs that never enter the domestic market.

The International Sustainability and Carbon Certification scheme recognised by the European Commission for demonstrating compliance with the Renewable Energy Directive across the biomass, biofuels and bioliquids chain. Audit readiness can be tested with the ISCC EU preparation checklist.

The ICC International Standby Practices, the rule set written specifically for standby letters of credit. It addresses standby-specific issues such as automatic extension and partial drawings more precisely than UCP 600.

The laydays/cancelling window within which a chartered vessel must arrive and tender Notice of Readiness. If it arrives after the cancelling date, the charterer may cancel the fixture.

The time the charter party allows the charterer to load or discharge the cargo before demurrage begins to accrue. It is the clock against which port performance is measured.

A bank's written undertaking to pay the seller against presentation of documents that comply with the credit's terms, governed by ICC UCP 600. It substitutes the issuing bank's (and any confirming bank's) credit for the buyer's, the foundation of secured cross-border trade settlement.

A chain-of-custody method that allows certified and non-certified consignments to be physically mixed while their sustainability characteristics are tracked in the bookkeeping and balanced over a defined period. Certified output can never exceed certified input - the principle audited under ISCC EU.

The master's formal notice that the vessel has arrived and is ready to load or discharge. A valid NOR starts laytime running, subject to the charter party's terms.

The replacement of an existing contract or counterparty with a new one, by agreement of all parties, transferring both rights and obligations. It is how positions and contracts are reassigned in a string or on default.

A delivery-performance metric measuring the share of orders delivered both on the promised date and in the complete quantity. It is the headline service-level indicator in commodity and industrial supply chains.

A guarantee, usually a bank guarantee or surety, securing a seller's or contractor's performance of its obligations. The beneficiary can call it if the obligor fails to perform as agreed.

The S&P Global Platts FOB ARA assessment for T2-status ethanol, the European price reference for the grade. Its greenhouse-gas floor and daily assessments shape which volumes clear benchmark-grade flows - tested against RED III with the feedstock checker.

A security interest created by delivering goods or documents of title - actually or constructively - to secure an obligation. The pledgee's possession or control is what perfects and protects the security.

The document that accompanies a sustainable consignment and carries its greenhouse-gas value, feedstock type and country of origin along the chain of custody. It is the evidence a buyer relies on to claim a fuel's compliance.

A letter of credit that authorises the advising or confirming bank to make an advance to the seller before shipment, against the seller's undertaking to present documents later. It funds the seller's procurement or production ahead of dispatch.

Directive (EU) 2023/2413, the recast Renewable Energy Directive, which sets 2030 transport targets and the sustainability and greenhouse-gas criteria for renewable fuels. A feedstock's standing can be screened with the RED III feedstock checker.

The criteria that determine a product's economic nationality for tariff and trade-policy purposes - whether wholly obtained, or sufficiently transformed in a country. They decide eligibility for preferential duty and the reach of trade measures.

A non-negotiable transport receipt naming a fixed consignee. It allows the carrier to release cargo to that consignee without surrender of an original document, speeding delivery, but it is not a document of title and cannot be traded.

A bank undertaking that pays the beneficiary only on a statement that the applicant has defaulted on an underlying obligation - a guarantee in letter-of-credit form, typically issued under ISP98 or UCP 600. It backstops performance or payment rather than financing the shipment itself.

A lighter arrangement in which a third party inspects and reports on stock that the borrower continues to control. It provides the financier with visibility and periodic verification, but not the custody and release control of a CMA.

A second set of bills issued in substitution for the originals, often to change the named shipper or port details or to keep the original supplier confidential in a string trade. It must be handled carefully to avoid two live sets in circulation.

The payment period of a draft or credit - either at sight or a fixed number of days after a defined event, such as 90 days after bill-of-lading date. Tenor determines when funds are due and the cost of any deferral.

A credit that expressly permits the first beneficiary to transfer it, in whole or in part, to one or more second beneficiaries - the mechanism a trader uses to pass an export credit through to the actual supplier.

A contract among financier, borrower and custodian that sets out how collateral is held, controlled and released. It is the legal backbone of a CMA or field-warehouse structure.

The ICC Uniform Customs and Practice for Documentary Credits (2007 revision), the rule set the great majority of letters of credit incorporate. It defines how banks examine documents and what constitutes a compliant presentation.

The EU database that records transactions in renewable and low-carbon fuels to ensure traceability and prevent the same sustainability characteristics being claimed twice. Entries follow a consignment from production through to final use.

EU customs transit procedures: T1 moves non-Union, duty-unpaid goods under suspension, while T2 covers goods that already hold Union status; a T2L document evidences that status. Not to be confused with the Platts T2 ethanol benchmark.

The ICC Uniform Rules for Demand Guarantees, the standard governing independent bank guarantees. Under URDG, the guarantee is autonomous from the underlying contract and payable on a compliant demand.

A document issued by a warehouse evidencing goods held in store. A negotiable warrant is a document of title that can transfer ownership or be pledged to a financier by endorsement and delivery.