Guides

The trade knowledge behind every calculator.

Plain-English pillar guides to the four topics you touch every week: Letters of Credit, Incoterms 2020, freight volume and chargeable weight, and import duty. Each guide links to the calculators that model the numbers.

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Letter of Credit - The Complete Guide

Sight vs usance, confirmation, discrepancies, UCP 600 essentials and how each bank charge is calculated.

Incoterms 2020 Explained

All 11 rules, when to use each, cost and risk transfer points, and the differences from Incoterms 2010.

CBM & Chargeable Weight Explained

How CBM, volumetric weight, and container utilisation actually work - for sea, air and integrator shipments.

Import Duty & Landed Cost Guide

How duty and VAT/GST stack across EU, UK, USA, India and the GCC - with HS classification basics.

LCL vs FCL: When to Switch

The break-even math, hidden CFS charges, transit-time trade-offs and why the 12 CBM rule of thumb often lies.

CIF vs FOB: Which Incoterm to Use

Risk, insurance, customs valuation and LC compatibility compared - and why neither belongs on a container shipment.

EXW vs FCA: Which Incoterm to Use

Export clearance, loading risk and VAT evidence compared - and why the ICC recommends FCA over EXW for almost every cross-border shipment.

CBM to CBF: Cubic Meters ↔ Cubic Feet

Exact conversion factor (1 CBM = 35.315 CBF), worked examples, container capacities in both units, and why different trade lanes quote in different volume units.

Shipping Container Dimensions & Weight Limits

20ft, 40ft and 40ft High Cube compared - internal dimensions, door openings, tare, max payload and CBM capacity, in both metric and imperial units.

Inland Container Depots (ICD) Explained

How ICDs (dry ports) work, how they differ from a CFS, the customs and demurrage advantages, and how to name an ICD correctly under Incoterms 2020.

Letter of Credit Cost Breakdown: Every Charge Explained

Issuance, confirmation, negotiation, acceptance and discrepancy fees - what each bank actually charges and how to model the all-in cost.

Usance LC Interest & Deferred Payment Financing

How usance interest is priced under an LC, discounting mechanics, and why ACT/360 vs ACT/365 changes the answer.

LC discrepancy checklist - the 27 issues banks reject on

Every discrepancy UCP 600 and ISBP 821 let issuing banks refuse payment on, grouped by timing, transport, insurance and wording.

USA import duty and customs guide (2026)

HTSUS base rates, Section 301 and 232 surcharges, MPF, HMF and the Section 321 de-minimis rules that decide US landed cost.

URDG 758 Demand Guarantees: Fees & Mechanics

How advance-payment, performance and bid guarantees are priced under URDG 758 - and where they differ from standby LCs.

How to Avoid LC Discrepancies: The 15 Most Common Rejections

The recurring UCP 600 and ISBP 821 discrepancies that get documents rejected, and the pre-presentation checks that stop them.

IATA Volumetric Weight Formula for Air Freight

The 6000 cm³/kg divisor, worked examples for general cargo and express, and how carriers actually apply the higher of gross vs volumetric.

Demurrage vs Detention: Charges, Free Time & Fixes

Where demurrage ends and detention begins, how free-time clocks are counted, and the practical negotiation levers that cut both.

Landed Cost Formula: CIF + Duty + VAT + Local Charges

The line-by-line formula for true landed cost, how CIF and FOB bases stack up, and where hidden charges usually hide.

Customs Classification: How to Assign the Right HS Code

The six General Rules of Interpretation, essential character tests, and how classification disputes are actually resolved.

EORI Number Registration: Who Needs One and How to Apply

Who needs an EORI in the EU and UK, the step-by-step application, issue times, and why customs rejects numbers.

Which Incoterm Should I Use? A Decision Framework

A five-question framework that maps mode, control preference and LC status to the right Incoterms 2020 rule.

Documents Required Under Each Incoterm 2020 Rule

Who provides the bill of lading, insurance certificate, export declaration and delivery evidence under every rule.

AML & KYC Documents for Trade Finance

The FATF-aligned KYC pack banks expect for LC and guarantee applicants - and how to prepare it once and reuse.

FCO vs SCO: Full vs Soft Corporate Offer in Commodity Trade

What each offer actually binds, when to move from SCO to FCO, and the compliance clauses buyers should never accept a deal without.

The Commodity Trade Document Checklist

Every document a commodity deal goes through - NCNDA, ICPO, FCO, SPA, POF, RWA, LC - and the sequence that keeps it moving.

EUDR Compliance for Commodity Exports

The seven in-scope commodities, geolocation and due-diligence obligations, and how to build an EUDR-ready shipment file.

CBAM Affected Products: The Current In-Scope List

The CN codes covered by CBAM today, the transitional-vs-definitive obligations, and how emissions data has to be reported.

Bulk Cargo Quality Assurance: Coal GAR/NAR, Petcoke & Draft Survey Explained

Coal quality measures (GAR/NAR), petcoke specs, draft survey methods. Learn how quality discrepancies affect landed cost and payment.

DAP vs DDP - Which Incoterm to Use in 2026

DAP vs DDP compared: who clears import customs, who pays duty and VAT, where risk transfers, and when each Incoterms 2020 rule is the right choice for cross-border sales.

FCA vs FOB: Which Incoterm Should You Use for Container Shipments?

A practical comparison of FCA and FOB Incoterms - where risk actually passes on the quay versus at the ship's rail, why the ICC recommends FCA for containers, and how to handle on-board bills of lading under a letter of credit.

FOB vs CIF: Who Pays Import Duty? (2026)

The buyer pays import duty under both FOB and CIF; only DDP shifts duty to the seller. But CIF raises the dutiable value in countries that assess duty on CIF rather than FOB. Valuation basis by market, with a worked example.

HS Code Classification for Commodities: Coal, Iron Ore, Crude Oil & Grains

How to find correct HS codes for coal, iron ore, crude petroleum, grains. Learn GRI rules, tariff implications, and country-specific classification databases.

Incoterms 2020 Risk Transfer & Payment Terms: Practical Guide for Traders

When does risk transfer in Incoterms 2020? Learn FOB vs CIF vs DAP with real shipping examples and how LC/insurance integrates with risk allocation.

How to Calculate Landed Cost: Duty, Tax, Freight & Hidden Charges Explained

Landed cost formula: CIF + duty + VAT + freight insurance + broker fees. See real examples for US, UK, EU, India imports with hidden charges.

How to Calculate LC Cost: Complete Breakdown of Issuance, Confirmation & Discrepancy Fees

Learn how Letter of Credit costs are calculated. Break down issuance fees, confirmation charges, negotiation costs, and discrepancy fees. Use our free LC Cost Calculator.

LC Discrepancies Explained: The 7 Most Common Mistakes & How to Avoid Them

60–80% of LC documents have discrepancies on first submission. Learn the 7 most common errors (late docs, description mismatch, missing on-board BoL) and how to prevent rejection.

Trade Documents

LOI vs ICPO vs SCO, FCO and SPA: Commodity Trade Documents Compared

Compare LOI, ICPO, SCO, FCO and SPA documents, their usual deal stage, legal effect, issuer, purpose and common misuse, with free templates.

SBLC vs Letter of Credit: When to Use Bank Guarantees vs Documentary Credit

Standby LC (SBLC) and commercial LC serve different purposes. Learn when to use each, ISP98 vs URDG 758 rules, and cost comparison.

Trade Expert AI: Free AI Assistant for Trade Finance and Commodity Trade (2026)

Trade Expert AI is a free AI assistant for commodity trading, trade finance, UCP 600 and ISBP 821, Incoterms 2020, sanctions, HS classification, shipping and insurance questions. Sign in to save private conversations.

Usance LC vs Sight LC: When to Use Deferred Payment & Discount Impact

Usance LC pays 30/60/90/180 days after presentation. Learn usance interest calculation, discounting impact, and when to use deferred payment.