confirming house

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An organization that purchases goods from local exporters on behalf of overseas buyers. It may act as a principal or an agent, invariably pays for the goods in the exporters’ own currency, and purchases on a contract that is enforceable in the exporters’ own country. The overseas buyer, who usually pays the confirming house a commission or its equivalent, regards the confirming house as a local buying agent, who will negotiate the best prices on its behalf, arrange for the shipment and insurance of the goods, and provide information regarding the goods being sold and the status of the various exporters.

Subjects: Accounting.

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