The following are common insurance terms and their meanings

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5. Contracts
Sales contracts and purchase orders are formal written agreements between buyers and sellers, which specify important details such as the quality, quantity, delivery period, and payment method of the goods. The following are common contract terms and their meanings:

● PI (Proforma Invoice) : A pro forma invoice, a pre-issued invoice provided by the seller to the buyer, usually used to confirm an order or apply for a letter of credit.

● PO (Purchase Order) : Purchase order, a formal order issued by the buyer to the seller to purchase goods, serves as the basic document of the contract.

● QC (Quality Control) : Quality control includes the process of inspecting and testing goods to ensure that they meet contract requirements and international standards.



6. Insurance
Insurance terms determine the safety and compensation conditions of the goods during transportation. :

● WPA (With Particular Average) : Water damage insurance, a basic form of marine insurance, compensates for loss or damage of cargo caused by natural disasters or ship accidents.

● FPA (Free from Particular Average) : It is the minimum marine insurance that compensates for the total loss of cargo due to shipwreck, collision or fire.

● AAR (All Risks) : Comprehensive risk, a broad form of marine insurance, which compensates for all possible losses or damages to cargo except those expressly excluded in the contract.

● WAR (War Risk) : War risk, a special form of marine insurance, compensates for loss or damage of goods caused by war, hostilities or armed conflict.



7. Origin
The certificate of origin and the relevant trade agreement determine whether the goods enjoy tariff preferences or other trade facilitation. The following are common origin clauses and their meanings:

● CO (Certificate of Origin) : Certificate of origin, which proves the country or region of origin of the goods. It is usually submitted during import customs clearance to enjoy tariff preferences.

● FORM A : GSP certificate of origin, used to prove that goods come from developing countries or regions that enjoy GSP treatment so as to enjoy most-favored-nation tariffs or tax exemptions.

● FORM B : General certificate of origin, used to prove that the argentina telegram database goods come from a country or region that has a trade agreement or relationship with the importing country in order to enjoy preferential tax rates or other trade preferences.

● GSP (Generalized System of Preferences) : A non-discriminatory, non-reciprocal, non-mandatory preferential tariff system provided to developing countries.

● MFN (Most-Favored-Nation) : Most-Favoured-Nation treatment, a basic trade principle among members of the World Trade Organization, requires that equal preferential conditions be provided to all member countries.



Conclusion
Mastering and understanding foreign trade terms is an important prerequisite for engaging in international trade. I hope that these terms can not only help you better manage and execute contracts, but also effectively communicate and negotiate, reduce trade risks, and improve work efficiency.