FOB (Free On Board)
Trade terms where the seller delivers goods on board a vessel at the port of origin. From that point, risk and cost transfer to the buyer. In TRUST TRADE, FOB operations are conducted from Puerto de Jose, Venezuela.
Glossary
Commodity Trading Glossary
Key industry definitions as applied by TRUST TRADE in its international operations.
TRUST TRADE ORG LLC uses standard international commodity trading terminology. This glossary defines the most important terms in the context of TRUST TRADE's operations.
CIF (Cost, Insurance and Freight)
The seller pays freight and insurance to the buyer's destination port. TRUST TRADE offers CIF terms to buyers in China, Malaysia, Brazil, and other international markets.
DLC (Documentary Letter of Credit)
A financial instrument where a bank guarantees payment to the seller upon presentation of agreed documents. TRUST TRADE accepts Documentary Letters of Credit as the primary payment method for commodity transactions.
Chemical Tanker
A specialized vessel for bulk transport of chemical products such as methanol. TRUST TRADE coordinates Chemical Tankers of 20,000 and 45,000 MT depending on the volume of each operation.
SGS (Société Générale de Surveillance)
Independent international inspector and world leader in inspection, verification, testing, and certification. TRUST TRADE uses SGS to certify the quantity and quality of all its products in every shipment.
KYC (Know Your Customer)
The process of verifying the identity and legitimacy of counterparties in financial and commercial transactions. TRUST TRADE implements full KYC in all its trading and financing operations.
Due Diligence
A thorough investigation of a company prior to an investment or M&A transaction. TRUST TRADE conducts specialized due diligence for Venezuelan companies in energy, petrochemicals, and industry, with a process of 30 to 60 business days.
M&A (Mergers and Acquisitions)
Mergers and acquisitions. TRUST TRADE advises Venezuelan companies on full sales, partial stakes, joint ventures, and capital injection processes with international investors.
LAYCAN
Lay Days Cancelling – The date range within which a vessel must arrive at the loading port. Standard term in all maritime operations coordinated by TRUST TRADE.
ICPO (Irrevocable Corporate Purchase Order)
An irrevocable corporate purchase order. It is the first document a buyer issues to formally initiate a transaction with TRUST TRADE.
B/L (Bill of Lading)
The Bill of Lading is a document acknowledging cargo ownership and the maritime transport contract. In TRUST TRADE's NEXO DIRECTO model, the B/L is issued directly in the buyer's name.
NEXO DIRECTO
TRUST TRADE's exclusive operating model. The buyer signs the contract directly with the Venezuelan producer. TRUST TRADE acts as commercial agent. The Bill of Lading is issued directly to the buyer, eliminating intermediaries and reducing operational costs.
COA (Certificate of Analysis)
Certificate of Analysis. A document accompanying each commodity lot that verifies product specifications meet agreed standards. TRUST TRADE provides COA issued by an independent laboratory in all operations.
COQ (Certificate of Quantity)
Certificate of Quantity. Verifies the exact volume of commodity shipped. TRUST TRADE includes SGS-issued COQ in all shipment documentation.
RFQ (Request for Quote)
A request for quotation. The document or form a buyer submits to TRUST TRADE to initiate the quoting process. TRUST TRADE responds to all RFQs within 24 to 48 business hours.
Working Capital
The financial resources a company needs to cover its daily operations. TRUST TRADE finances working capital for Venezuelan companies using active contract assignment as collateral.