Export/Import Terms Company Profile

International Chemical Business Terms

Below is a list of export and import related terms to help you navigate the international chemical business. All terms are listed alphabetically.


L/C (Letter of Credit)

In trading, it usually refers to the commercial letter of credit used in the settlement of the commodity price. It is a price payment warranty for the exporter, issued by the bank from the importing country (the bank issuing the letter of credit) based on the request of the importer, in order to have a smooth price settlement during trade transactions. The exporter sends the documents requested in the letter of credit (bill of exchange, bill of lading, invoice, etc.) to the bank issuing the letter of credit (L/C Opening Bank) through the bank from the place of loading (the negotiating bank). If the content of the letter of credit corresponds to the other documents submitted, the bank will undertake the bill of exchange. Basically, an irrevocable letter of credit (Irrevocable L/C) is issued, which cannot be modified without the agreement of the exporter.

L/C Advising Bank

The bank that receives the letter of credit written by the bank issuing the letter of credit (L/C Issuing Bank) and forwards it to the importer, which is the beneficiary of the letter of credit. Usually, it is a bank in the exporter’s country.

L/G (Letter of Guarantee, L/I, Letter of Indemnity, LG)

In trade transactions, the letter of guarantee used when an activity carrying a certain risk for one party is performed, by which the other party promises to compensate for the eventual damages.
It is submitted when requesting the shipping company to modify the content of the bill of lading (B/L), when requesting the bank to undertake a letter of credit (L/C) despite the discrepancies between the content of the shipping documents and the letter of credit (L/G negotiation) in export transaction involving letter of credit (L/C) settlement, or when requesting to take the cargo from the shipping company before the arrival of the original bill of lading (B/L)in import transaction involving letter of credit (L/C) settlement.

L/G Negotiation

A method of transaction done by submitting a letter of guarantee (L/G) to the bank that undertakes the letter of credit when the exporter requests the bank to undertake it despite existing discrepancies between the content of the shipping documents and the letter of credit in export transaction involving letter of credit (L/C) settlement. In the case of the L/G negotiation, because the bank issuing the letter of credit doesn’t have the obligation to pay, it is possible to use this document when, from the point of view of the bank that undertakes the letter of credit, the exporter has enough credit capability and the discrepancies are comparatively minor. In cases other than when the importer is sufficiently reliable from the exporter’s point of view, the L/G negotiation should be avoided as much as possible, and the documents should be prepared as mentioned in the letter of credit (L/C).


The method of fixing the goods with lashing belts or wires when transporting the container, so that the goods don’t move inside the container during transportation.

Lashing Belt (Gatcha)

The cargo tightening belt used for preventing the collapse of cargo. Gatcha.

Latest Shipping Date

The final day until when the loading of the ship must be finished, specified in the letter of credit (L/C). When receiving the letter of credit it is necessary to check whether loading the ship can be finished until that date, and if it’s not, it is necessary to request the buyer to extend the period of the letter of credit (L/C). If loading the ship is done after the latest shipping date, this becomes a discrepancy and the bank will not accept normal undertaking, therefore the documents will have to be brought to the bank through a cable negotiation, L/C negotiation or collection.

LCL Cargo (Consolidated Cargo)

In marine transportation using containers, it refers to loading and transporting in the same container the less-than-carload cargo that is not suitable for reserving a whole container for the reasons of cost, etc., together with a different owner’s less-than-carload cargo that has the same destination. Because the work of loading and unloading the container is carried out at the container freight station (CFS), it is also called CFS cargo.

List Control

Fifteen items including weapons and specific goods that might be used for the development of weapons are listed in the List Control, and for exporting these goods the prior authorization of the Minister of Economy, Trade and Industry is necessary, regardless of the destination country, users or usage. Not only the goods, but also the export of technologies used in planning, manufacturing and usage of these goods are subject to the control.
When an exporter exports goods or provides technologies overseas, it is necessary to check in advance whether the things it plans to export are subject of the List Control.
See http://www.meti.go.jp/policy/anpo/matrix_intro.html (Items subject to the List Control)

Loaded Container

The container with goods inside.