glossary paperwork: ncnda [non circumvention - non

GUIDE OF GLOSSARY: Terms addressed to Agents and Traders: Below you will find a GLOSSARY for all of our Agents and Traders who may need to clarify some concepts about them, and its particularities and conditions that apply, and get a better idea as a query for a particular Deal. We hope it would be of a great help to everyone. Thanks! PAPERWORK:

1. NCNDA [NON CIRCUMVENTION - NON DISCLOSURE AGREEMENT]:

2. LOI [LETTER OF INTENT]: A written document that determines the clear intention to reach an Agreement. In International Trade it is used in negotiations prior to Contracts of Sale, Distribution or International Joint Venture.

3. SPECIFICATIONS: A specification often refers to a set of documented requirements to be satisfied by a material, design, product, or service. A specification is often a type of technical standard. ... The word specification is broadly defined as "to state explicitly or in detail" or "to be specific".

4. ORIGIN: Origin, source, inception, root mean the point at which something begins its course or existence. origin applies to the things or persons from which something is ultimately derived and often to the causes operating before the thing itself comes into being.

5. DESTINATION PORT: The place where the Product is going to be sent by the Seller. It is always good to associate the Destination Port against the quantity amount to be acquired by the Buyer. Each Destination Port has a discharge rate, which can give us an estimate if the amount required by the Buyer is according to the days estimated by the Shipping Companies, in their contracts, to unload the product; thus, the Buyer will not fall into “demurrages”. In this way, the number of shipments to that destination can be planned, by the Trader, and advise the Buyer in order to avoid paying money for delays at destination.

6. TARGET PRICE: Target price: A stock valuation at which a Trader is willing to buy or sell a stock. The price at which a seller projects that a buyer will buy a specific Commodity.

7. FCO [FORMAL CORPORATE OFFER]: Format used and known as the Supplier Company’s Complete Offer document issued and addressed to the Buyer (FCO), after the Supplier received from the plaintiff a formal LOI and a BCL duly requested by the Company and the Bank.

8. ICPO [IRREVOCABLE CORPORATE PURCHASE OFFER]: The Irrevocable Corporate Purchase Order is an Offer to purchase products or services in which certain terms and conditions of purchase are established. It is used mainly in the purchasing procedures of international companies and institutions.

9. SPA [SALES AND PURCHASE AGREEMENT] Draft: Upon receiving the ICPO, Seller issues Draft Sales and Purchase Agreement (SPA). Buyer reviews the Draft Sales and Purchase Agreement and if any changes needed to be done, these issues will be discussed and agreed on the mutual decision to put on the Sales and Purchase Agreement for signing and sealing.

10. SPA [SALES AND PURCHASE AGREEMENT]: A sales and purchase agreement (SPA) is a binding legal contract between two parties that obligates a transaction between a buyer and a seller. SPAs are typically used for Trading transactions, but they are found in all areas of business. The agreement finalizes the terms and conditions of the sale, and it is

the culmination of negotiations between the buyer and the seller.

Holding Group AA International Trading AS Norway: Gunnar Schjerups Vei. 33 B, 0485 Oslo, Norway

AA Trading Norway Limited: Companies House, Crown Way, Maindy, Cardiff Cf14 3uz Unitedkindom of England AA International Trading As Norway LLC: 2701 Centerville Road, New Castle County, Wilmington, Delaware 19808, USA

www.aatradingnorway.com

https://www.investopedia.com/terms/r/realestate.asp

https://www.investopedia.com/articles/mortgages-real-estate/10/closing-home-process.asp

11. RWA [READY, WILLING and ABLE]: It is a banking instrument that is evidence to a bank or financial institution that it is Ready, Willing and Able (RWA) to proceed on behalf of a customer in any number of different financial transactions.

12. POP [PROOF OF THE PRODUCT]: It is an essential document set in trading which is documentary evidence that the Product exists. Proof of Product is probably one of the most misunderstood parts of any commodity transaction. The Seller / Producers ability to provide POP varies from commodity to commodity and from transaction to transaction. All the Certificates, documents or POP that you request from us for ANY DEALS, will be delivered after receiving your LC in conditions that favor our Company; or, BLC / RWA Bank to Bank.

13. PAYMENT INSTRUMENT [LCs]: A payment instrument is a paper-based or electronic means or other medium used to initiate the transfer of funds. Payment instruments include funds transfer instructions (in particular, LC’s) and electronic means of payment. When receiving a Letter of Credit, you should carefully compare the terms of the LC against the Proforma Invoice (PI). This step is very important, because if the terms are not precisely followed, the LC may be invalid and the Seller will not be able to be paid. Any incorrectness must be notified to the issuer bank (Buyer) and require the respective alteration of the LC to get the approval by the beneficiary’s bank (Seller). Once the guarantee has been accepted by the beneficiary’s bank (Seller), the issuing bank (Buyer) will issue the LC in the respective terms. As soon as it is confirmed be the Seller’s bank, the logistics related to the shipment of the product will commence.

14. PROFORMA INVOICE [PI]: A proforma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information. While an invoice is a commercial instrument that states the total amount due, the proforma invoice is a declaration by the seller to provide products and services on a specified date and time.

15. IMFPA [IRREVOCABLE MASTER FEES PROTECTION AGREEMENT]: The Irrevocable Master Fee Protection Agreement is a type of Master Fee/Commission Protection Agreement designed, so that, it cannot be revoked. Thus, as intermediaries, we ensure the payment of our fees. BANKING INSTRUMENTS and MESSAGES:

1. LETTER OF CREDIT: A letter of credit, or "credit letter", it’s a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. This Document, issued by a third party, will guarantee payment for goods or services, once the seller provides acceptable documentation. As per the contract, the Buyer needs to open a Letter of credit (LC). In this case, Letter of credit is opened by Buyer’s Bank (or other opening bank) and the Beneficiary of the Letter of Credit is your overseas seller.

2. WHAT IS THE PROCESS OF LC PAYMENT: An LC contract is an instruction wherein a customer requests the bank to issue, advise or confirm a letter of credit, for a trade transaction. An LC substitutes a bank's name and credit for that of the parties involved. The bank thus undertakes to pay the seller/beneficiary even if the remitter fails to pay.

3. WHAT IS THE DIFFERENCE BETWEEN CONFIRMED LC AND UNCONFIRMED LC: Under an unconfirmed LC, the original issuing bank is the main institution that provides an irrevocable payment guarantee to the exporter; while a confirmed LC, not only contains an irrevocable guarantee from the issuing bank but from the second bank also, known as a confirming bank.




4. WHAT IS THE DIFFERENCE BETWEEN LC AND LC AT SIGHT: Unlike with sight LCs, the buyer doesn't have to make payment immediately to receive the documents. Usance LCs generally provide a buffer of 30, 60, 90, or 120 days to make the payment. A usance LC is also known as a deferred payment LC, or a term LC.

5. WHAT IS A SBLC: The essence of SBLC is that the issuing bank will perform in the case of non-performance or default by the buyer. The purpose of this letter is to establish a bank guarantee for the deal or transaction with a third party.

6. WHAT IS A CONFIRMED SBLC: Confirmation is offered to all DBS clients (Disclosure and Barring Service) who are beneficiaries of SBLC. Confirmation of SBLC with automatic extension feature is available to meet multi-year contractual obligation, subject to transaction clearance. Mitigate sovereign, country, payment and documentary risks.

7. CAN SBLC BE CANCELED: Once the SBLC is issued, it is irrevocable and cannot be cancelled without beneficiary's consent. All businesses that need to provide a SBLC to fulfil contractual obligations.

8. WHAT IS A CONFIRMED LC AT SIGHT: A sight letter of credit refers to a document that verifies the payment of goods or services, payable once it is presented along with the necessary documents. An organization that offers a sight letter of credit commits itself to paying the agreed amount of funds provided the provisions of the letter of credit are met.

9. WHAT IS A TRANSFERABLE LC: A Transferable Letter of Credit (LC) is a documentary credit under which the Beneficiary (first Beneficiary) may request the bank specifically authorized in the credit to transfer the credit, available in whole or part, to one or more secondary Beneficiary(ies).

10. WHAT IS DIVISIBLE LC? Divisible or indivisible: a divisible letter of credit will allow the beneficiary to draw part of the credit.

11. WHAT IS A NON-TRANSFERABLE LC: In Non-Transferable Letter of Credit, the bank refuses to allow the transfer of credit to any other beneficiary other than the first beneficiary. Thus, it cannot be transferred to any party and only exporter/middlemen/first beneficiary can claim the credit for it.

12. HOW MANY TIMES CAN BE TRANSFERRED A LC: It can only be transferred by the beneficiary, just one more time.

13. WHAT IS MT760? MT760 is a swift message used to block funds in favor of someone other than the owner, collateralize the asset via this message, while allowing for loans and liens against it.

14. WHAT IS A MT 799? The MT799 is a type of SWIFT message that banks use to securely communicate authenticated free format messages with other banks. SWIFT MT799 messages are mostly used for showing proof of funds or proof of deposits.

15. WHAT IS A MT 700? MT700 is used to indicate the terms and conditions of a commercial documentary credit or a standby letter of credit which has been originated by the Sender (issuing bank).

16. WHAT IS AN MT103 PAYMENT? An MT103 is a standardized SWIFT payment message used specifically for cross border/international wire transfers. We use SWIFT for all payments made via Money Mover. MT103s are globally accepted as proofs of payment and include all payment details such as date, amount, currency, sender and recipient.




glossary paperwork: ncnda [non circumvention - non

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