Essential Trade English Phrases for the 2025 Exam – Quick Review List

 

Intro

Mastering technical English is key to scoring well in the Trade English section. Here are 15 phrases you must know cold.

Top 15 Phrases

Phrase Meaning
FOB (Free on Board) Buyer bears cost once goods are on ship
LC (Letter of Credit) Bank-guaranteed payment instrument
Arbitration Clause Legal path for dispute resolution
Non-tariff Barrier Restriction not involving duties
Force Majeure Legal excuse due to unforeseeable events
CIF (Cost, Insurance, Freight) Seller pays transport and insurance
Demurrage Fee for late cargo removal
Consignee Receiver of goods
Proforma Invoice Preliminary bill of sale
Incoterms 2020 Global trade rules
B/L (Bill of Lading) Shipping document and title
Draft Payment order
Inspection Certificate Proof of quality check
UCP 600 Standard LC rules from ICC
Ex Works Buyer picks up goods from seller’s premises

Study Tip

Use flashcards or Quizlet and test yourself with sample questions that use these in full sentences.