Plain-language definitions of 133 terms used in raw material trade: Incoterms, payment, shipping, customs, quality documents, plastics, metals, chemicals, agriculture and energy.
The buyer pays all or part of the price before shipment. A common structure is a 10–30 % deposit on signing and the balance against copies of shipping documents or on arrival. The deposit funds the seller’s raw materials and production; to protect it, the buyer may ask for an advance-payment guarantee, an escrow account or a verified supplier. A large prepayment to a new supplier is the highest-risk situation for fraud.
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