Packing Credit A loan given to the beneficiary by the bank to enable him to purchase raw materials. The beneficiary is usually requested to deposit the DC with the bank as security.
Packing List A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.
Panamax Panamax ships are of the maximum dimensions that will fit through the locks of the Panama Canal. This size is determined by the dimensions of the lock chambers, and the depth of the water in the canal. Panamax is a significant factor in the design of cargo ships, with many ships being built to exactly the maximum allowable size, which is length: 294.1 metres (965 ft); width: 32.3 metres (106 ft); draft (depth): 12.0 metres (39.5 ft) in tropical fresh water (the salinity and temperature of water affect its density, and hence how deeply a ship will sit in the water); and height: 57.91 metres (190 ft) measured from the waterline to the vessel’s highest point. A Panamax cargo ship would typically have a displacement of around 65 000 tons..Source
Parcel Post Receipt The postal authorities’ signed acknowledgment of delivery to receiver of a shipment made by parcel post.
Past Due Bill Loan that has not been paid on the maturity date/due date.
Paying Bank The bank that makes payment to the beneficiary of a payment DC after presentation to it of documents stipulated in the DC.
Performance Bond Guarantee If a company is undertaking a contract, it may be asked to give a performance bond for part of the value of the contract. If the customer considers the company’s performance under the terms of the contract has been unsatisfactory, payment of the bond can be demanded from the banker guaranteeing the bond. The bond is issued by the bank on behalf of the company, and therefore increases the banks potential exposure to the company.
Perils Of The Sea A marine insurance term used to designate heavy weather, stranding, lightning, collision, and seawater damage.
Phytosanitary Inspection Certificate A certificate, issued by the U.S. Department of Agriculture to satisfy import regulations for foreign countries, indicating that a U.S. shipment has been inspected and is free from harmful pests and plant diseases.
Piggyback Arrangement An arrangement whereby one company sometimes a smaller one uses the already established distribution channels of another company, which is effective when the two companies wish to sell complementary products.
Political Risk In export financing the risk of loss due to such causes as currency, inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, etc.
Port of Entry Where goods are entered and where the Customs Service accepts entries of merchandise and collects duties.
Power Of Attorney Authority given to one party to act for another.
Presentation Act of requesting the importer’s payment/acceptance of an import bill. – See Handling Import Collections.
Presenting Bank The bank that requests payment of a collection bill – may be the Collecting Bank or its nominated branch or local correspondent, which is better placed to contact the importer.
Price Ex Factory The price of your goods where the buyer has to arrange and pay for all other costs of carriage, insurance, etc.
Principal The exporter in collection transactions, being the initiator of the transaction, whose instructions are followed at all stages (may be used to refer to any customer who initiates a transaction e.g. the opener of a DC).
Prior disclosure Sometimes an importer will find it has violated a customs law before the Customs Service has discovered the violation. A prior disclosure is a voluntary report by an importer of the violation to the Customs Service. The law provides some benefits (but does not speak of the risks) to an importer who does a prior disclosure.
Privatization The process of private, for-profit businesses taking over the provision of public services. Types of government contracts that have been privatized include prisons, water utilities, trash collection, clerical jobs, food service, information system jobs, and job placement for welfare recipients.
Privileged Foreign (Pf) Foreign merchandise or non-tax paid domestic merchandise upon which the duty and applicable taxes have been determined at the time this status is approved.
Pro Forma Invoice An invoice provided by a supplier in advance of the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and other important specifications. The proforma invoice is commonly used to enable payment documents (such as an L/C) to be raised.
Promissory Note A signed statement containing a written promise to pay a stated sum to specified person at a specified date or on demand.
Protest The formal representation of a dishonoured bill of exchange: the bill is presented by a notary public to the drawee – if refused again, it is noted” – see noting. The notary public then issues a formal protest, an official certificate that the bill has been refused: the drawer can use this certificate to sue the drawee in court.
Purchasing Agent An agent who purchases goods in his or her own country on behalf of foreign importers such as government agencies and large private concerns