Chemical Useful Information

ASWP
Any Safe World Port
This is not an official incoterm, but is often used in sellers' quotes as "CIF ASWP", and is widely accepted. This implies that shipment based on a quote worded in this way would incur the same CIF price for delivery to any safe port in the world, whatever the distance from source.

BCL
Bank Comfort Letter
Also known as a Bank Capability Letter, or Bank Confirmation Letter, this is a letter from the customer's bank confirming his ability to meet a certain level payment requirements. It should however be understood that this does not imply any guarantee of payment.

BG
Bank Guarantee

BHT
Butylated Hydroxytoluene
This is sometimes a component of soap, and prevents rancidity in the oils.

BOL
Bill of Lading
This is the receipt given by the shipping company when goods are loaded on board the vessel. This is an important document and gives title to the goods. It is needed by the buyer to obtain the goods from the port.

BPU
Bank Payment Undertaking

CAS number
A CAS number is a unique registration numerical identifier for one chemical (substance). It has no chemical significance, but allows the linking of a wealth of information about the substance. The CAS number for Sodium Palmitate (Palm oil soap) is 408-35-5.

CDE
Coconut diethanolamide
Also referred to as Cocamide DEA, this is a coconut-derived chemical used in cleaning products. Similarly PKDE is the equivalent from Palm Kernel origin.

CFR
Cost and Freight
The price includes the cost of the goods, loading, and freight to the named Destination Port. This does not include unloading charges.

C&F, CNF
Same as CFR.

CIF
Cost, Insurance and Freight
This is the same as CNF, but also includes insurance to the named Destination Port.

COA
Certificate Of Analysis
This is an authenticated document, issued by an accredited firm or individual, that certifies the quality and purity of the products being exported.

COO, CO or C/O
Certificate of Origin
A documentary statement signed by the exporter and attested to by a local Chamber of Commerce/Consulate, attesting the country of origin (normally the exporter's) of the goods being shipped. Some countries have different types of CO (e.g. Singapore has 'Ordinary' and 'Preferential')

CPO
Crude Palm Oil
Oil derived from the fruit (excluding kernel) of the Oil Palm.

DLC
Documentary Letter of Credit (see L/C)

E&OE
Errors and Omissions Excepted
This is often found on invoices and quotations, and denotes that the author does not take responsibility if there are errors or missing text. Documents should therefore be thoroughly checked.

EDTA
Ethylenediaminetetraacetic acid
This is a colourless, water-soluble solid best known for its properties as a chelating agent. In soap EDTA acts as a preservative and anti-oxidation/anti-discolouring agent and water softener.

EXW
Ex-Works
The buyer pays all costs of transport from pickup at the suppliers premises.

FAS
Free Alongside Ship
The supplier pays costs only to the port of loading. Loading and shipment are then the responsibility of the buyer.

FCA
Free Carrier
The supplier must deliver the goods, cleared for export, to the carrier nominated by the buyer at the named place.

FCL
Full Container Load
Often suppliers will not supply less then one full container (soap noodles approx 20Mt per 20' container). LCL would denote less than one container load.

FCO
Full Corporate Offer
A FCO usually starts with a clause similar to the following : We, (named seller), with full legal and corporate responsibility, and under penalty of perjury, with full knowledge of the act of fraud; and as the Seller, are ready, willing and able to deliver the herein offered goods under the following terms and conditions:

FFA
Free Fatty Acid
The amount of a fatty acid of a specified average molecular weight, which is present in the soap noodles in unconjugated form (expressed as a percentage). FFA can produce enhanced user properties like lathering and texture. If the FFA level is too high, the bar may be too soft. Fillers can modify the physical effects of FFA.

FOB
Free on Board
This means that the supplier pays only to the point where the goods are loaded on board the carrying vessel.

Glycerin (Glycerine)
Glycerin is a component of soap noodles. A high glycerin content will make the soap translucent. Often glycerin is removed during the saponification process and used in the production of other cosmetics. Low glycerin soaps are harder, but if too low can leave the skin dry and lacking in moisture. In its pure form it is referred to as Glycerol. It is generally accepted that glycerin in soap helps soften/moisturise the skin.

HEDP
1-hydroxy ethylidene-1,1-diphosphonic acid
HEDP is normally a crystalline powder, and acts as a chelating agent. It is commonly found in soap products, and is deemed to be non-toxic.

HS Code
Harmonized System Code
The Harmonized System Code is a system of specific identifiers for commodities, including subcategories. HS Code is becoming a universally-recognized classification standard worldwide for export, import and customs tariffs. The HS code for soap noodles is normally 3401.21.000

INCOTERMS
"International Commercial Terms"
A set of import/export related shipping terms devised and published by the International Chamber of Commerce (ICC). These terms (Incoterms 2000) are internationally accepted and should always be used in order to avoid misunderstandings between trading partners. All terms in this glossary are Incoterms.

L/C
Letter of Credit
A Letter of Credit is a document issued by a bank which guarantees the payment of a buyer's drafts for a specified period of time and up to a specified amount, under specified conditions. Effectively it is a method of payment where the buyer's bank guarantees payment to the supplier. L/C are almost always irrevocable, can (if required) be transferable, and subject to terms (e.g. on SIGHT, 30 days, 60 days, etc.). For regular shipments a Revolving L/C is often utilised. The various types can be defined as follows:
CL/C (Confirmed Letter of Credit) A letter of credit, issued by a foreign bank, with validity confirmed by a First Class (usually US or European) bank. A seller with CL/C terms is assured of payment even if the foreign buyer or the foreign bank defaults.
DL/C or DLC (Documentary Letter of Credit) A document issued by a bank which guarantees the payment of a buyer's drafts for a specified period and up to a specified amount. The Documentary Letter of Credit provides a more secure means of carrying out transactions in import-export trade than by documentary bills collection (see Bill of Exchange). A letter of credit when transmitted through a bank, usually in the seller's country, becomes the means by which the seller obtains payment. The necessary documents, correctly completed, are presented to a bank by an agreed date. If the terms of the credit are met, a seller can receive payment from a bank immediately.
IL/C (Irrevocable Letter of Credit) An Irrevocable Letter of Credit cannot be amended or cancelled without the consent of the issuing bank, the confirming bank (if confirmed), and the beneficiary. The payment is guaranteed by the bank if the credit terms and conditions are fully met by the beneficiary. The words Irrevocable Documentary Credit or Irrevocable Credit may be indicated in the L/C. It means that once the buyer's conditions in the letter have been agreed to by the seller, they constitute a definite undertaking by the buyer's bank and cannot be revoked without the seller's agreement.
Revocable Letters of Credit are rarely used as the terms of the credit can be cancelled or amended by an overseas buyer at any time without notice to the seller.
RL/C (Revolving Letter of Credit) When a letter of credit (L/C) is specifically designated a Revolving Letter of Credit, the amount involved when utilized is automatically reinstated, that is, the amount becomes available again without issuing another L/C and usually under the same terms and conditions within a period of time (usually several months to one year). This saves administration when multiple shipments are involved.
SL/C or SBLC (Stand-by Letter of Credit) is a financial guarantee or performance bond issued by a bank on behalf of a buyer. i.e. a written obligation of the issuing bank to pay a sum to a beneficiary on behalf of their customer in the event that the customer himself does not pay the beneficiary. The SL/C is regulated by the ICC-500 rules.
RDLC Revolving Documentary Letter of Credit

LCL
Less than a Container Load
LCL denotes less than one container load. The goods do not fill the complete space of a container. Often containers are consolidated, i.e. they are filled with goods from different suppliers for different buyers in order to make efficient use of space.

LOI
Letter Of Intent
A document by which the buyer states that he intends to enter into a transaction.

Lovibond
A method of assessing colour using the Lovibond® Tintometer. Commonly used for Soap Noodle specifications.

MCT
Medium Chain Triglyceride
Component of some oils, such as Coconut oil (66% MCT), Palm Kernel Oil. Important for soap making. A triglyceride consists of three molecules of fatty acids bound with one molecule of glycerol

MSDS
Materials Safety Data Sheet
An MSDS is a data sheet, designed for workers and emergency personnel, relating to a particular product or chemical. The MSDS specifies safety handling methods, health hazards, ingredients, fire safety data, contamination, spillage, storage, treatment, physical properties, etc.

PB
Performance Bond

PFAD
Palm Fatty Acid Distillate. A light-brown solid, this by-product of Crude Palm Oil refining is used in some soap manufacturing processes.

PKDE
See CDE

PKO
Palm Kernel Oil

POF
Proof of Funds
A note from a buyer's bank to the seller/seller's bank that money is available to complete the proposed transaction.

POP
Proof of Product
A Proof of Product ('POP') is often requested by customers or agents who believe it will give them some guarantee of the existence of the product and ability of the supplier to deliver. In practice many POPs are produced which are false. In practice it offers no proof at all, because once a POP has been drafted it is automatically out of date - the product could have been sold to another buyer and therefore no longer exists. Nevertheless, a POP is still occasionally requested as apparent proof that a seller/broker has the product, which is possibly not the case.
A POP for large quantities is often not genuine as it is unlikely that a manufacturer has stockpiled possibly millions of tonnes of a product. Large quantities of a products are made to order to match the terms of a specific contract, in this case a proof of allocation would be more relevant. A POP without a contract reference is also worthless, a POP with a contract reference can and will only be issued once a financial instrument has been put in place, so is therefore superfluous.
A POP is realistically provided only when the buyer's bank issue a Bank Confirmation Letter (BCL) to the seller's bank via SWIFT. Then the seller's bank can check the availability of funds in the buyer's bank and issue a POP to the buyer's bank within an agreed time period (e.g. 5 days). In reality, the best and only real proof of product is when the seller can demonstrate the products in his possession at the dock side.

RBD
Refined, Bleached and Deodorised
Refers to pre-processing of oil utilised in the manufacture of soap noodles (cooking oils are also usually RBD).

RDLC
Revolving Documentary Letter of Credit (see L/C)

REACH
Registration Evaluation and Authorisation of CHemicals
REACH is a relatively new European Community regulation relating to chemicals and their safe use. Introduced in June 2007. The aim of REACH is to improve the protection of human health and the environment through the better and earlier identification of the intrinsic properties of chemical substances. At the same time, innovative capability and competitiveness of the EU chemicals industry should be enhanced. REACH is managed by the European Chemicals Agency (ECHA). Exports to the EU in excess of 1 tonne require to be REACH registered.

RFI
Request for Information

RFP
Request for Proposal

RFQ
Request for Quotation

RFT
Request for Tender

RWA
A banking term meaning Readiness, Willingness and Availability of funds for a particular transaction.

SGS
This is an international company (SGS Group) who are the definitive quality/specification testing agency for many commodities. Their certificates are internationally accepted.

SOAP
In other languages:
Jabon, Milo, Muilas, Mydla, Mydlo, Sabonete, Sabuni, Saibe, Saippua, Sapone, Saponetta, Sabun, Saippuan, Sapun, Savon, Sebon, Seep, Seife, Soap, Szappanok, Zeep, Zeyf

SPA
Sale and Purchase Agreement

Stearic Acid
Stearic acid is usually prepared by treating animal fat with water at a high pressure and temperature. It can also be obtained by the hydrogenation of some unsaturated vegetable oils. Stearic acid is commonly made up of a mixture of stearic acid and palmitic acid. In the soap industry it is often used to harden soaps.

Tallow
Tallow is the name given to fats derived from animals such as mutton, pigs or beef (most common). Often used as a component of soap noodles, but many soap manufacturers (particularly toilet soaps) prefer noodles derived solely from vegetable oils such as palm, coconut, olive, etc. Use of tallows in soap can also be precluded due to religious or cultural conventions.

TEU
Twenty foot Equivalent Unit
A unit of capacity measurement, where one TEU is the equivalent capacity of one standard 20 foot container (approx. 20ft x 8ft x 8ft). A standard 40ft container is therefore 2 TEU.

TFA
Total Fatty Acids
In relation to Soap Noodles, this represents the total fatty acid content of the noodles.

TFM
Total Fatty Matter
The total fat content expressed as a percentage. In general the higher TFM provides a higher grade of soap.

Titre (Titer)
Simply, this is the temperature (usually expressed in degrees centigrade) at which the fatty acids solidify. In more detail; the titre is the solidifying point of the mixed fatty acids obtained by saponification and subsequent acidification of fats and oils; the basis of the actual determination of the titre lies in the fact that liquids during solidifying evolve heat (the latent heat of fusion) and a rise in temperature occurs. This rise can be quite distinct with fatty acids, and the temperature taken is the top point of the rise.
The titre of soap noodles can affect the hardness and feel of the soap.

80:20
Refers to the composition of the oils from which the soap is derived. 80:20 is usually 80% Palm Oil and 20% Palm Kernel Oil.


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