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B C
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W X
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A |
Abandonment |
The act of relinquishing claim or
right to property |
About |
"About", "Approx.", and "Circa"
are terms which when used in a letter of credit, are construed
to allow a difference not to exceed 10% more or 10% less than
the monetary amount, or the quantity, or the unit price
stipulated in the letter of credit. |
Absolute Advantage |
An advantage of one nation or area
over another in the costs of producing an item in terms of used
resources. |
Absorption |
1. An economic term for the total
expenditures by a nation's residents on goods and services.
2. The assumption by one carrier of the charges of another
without any increase in the charges to the shipper. |
Accelerated Tariff Elimination |
The reduction of import duties
faster than originally had been agreed upon or projected. |
Acceptance |
1. A draft calling for payment at
a future date which the drawee has agreed to pay by signing
"Accepted" on the draft.
2. An unconditional assent to an offer; or an assent to an offer
conditioned on only minor changes that do not affect any
material terms of the offer;
3. An agreement to purchase goods on specified terms.
4. Receipt of a shipment by a consignee thus terminating the
liability of the carrier for delivery. |
Acceptance Letter Of Credit |
A letter of credit which instead
of agreeing to pay the beneficiary immediately upon presentation
of documents, requires presentation of a time draft drawn by the
beneficiary upon the issuing bank or another bank. However, the
beneficiary may, in effect, obtain prompt payment by discounting
the draft. |
Accepted Draft |
A draft or a bill of exchange
accepted by the drawee (acceptor) by putting his signature and
"accepted' on its face. In doing so, he commits himself to pay
the bill upon presentation at maturity. |
Accepting Bank |
A bank which by signing 'accepted'
on a time draft accepts responsibility to pay when the draft
becomes due. |
Acceptor |
The party that signs 'accepted' on
a draft or obligation, agreeing to pay the stated sum at
maturity. |
Accession |
Accession is a process by which a
country becomes a member of an international agreement (usually
an agreement that has already been accepted by other countries). |
Accessorial Charges |
In transportation, those charges
made for additional, supplemental, or special services performed
in addition to the basic transportation service. |
Accessorial Services |
`In transportation, services
performed which are additional, supplemental, or special, in
addition to the basic transportation service. |
Accommodation |
An arrangement or engagement made
as a favor to another, not dependent upon a consideration
received. |
Accommodation Note Or Paper |
A bill of exchange or banker's
acceptance which is endorsed, accepted, or drawn by one party
(the accommodating party) to benefit another party. The
accommodating party generally does not charge or seek
compensation for this act. |
Accord And Satisfaction |
A means of discharging a claim
whereby the parties agree to give and accept something in
settlement and perform the agreement, the agreement being the
"accord" and its performance "the satisfaction." |
Account Number |
An identification number assigned
in its records for purposes of faster and more accurate
accounting and record keeping, by banks, institutions, and
businesses of all kind to their depositors, users, members,
subscribers, customers, vendors, or other entities. |
Account Party |
Same as Applicant, the party at
whose request a bank issues a letter of credit. |
Accounts Payable |
A current liability representing
the amounts owed to creditors for merchandise or services
purchased on open account or short-term credit. |
Accounts Receivable |
The amount of money a business
expects to receive for merchandise or services furnished by it
to others on open account. |
Accrual Of Obligation |
The maturing of an obligation to
the date when the obligated party must perform. (Such as a time
draft which must be paid by the drawee on the date stated.) |
Acquisition |
The act of becoming owner of a
property. In finance, it is the purchase of a company's assets
or its common stock. |
Act Of God |
A violent act of nature such as
lightning, flood, earthquake or hurricane which man can neither
cause nor intervene with. |
Action Ex Contractu |
1. A legal action for breach of a
promise stated in an express or implied contract.
2. An action arising out of a contract. |
Action Ex Delicto |
1. A legal action for a breach of
a duty that is not stated in a contract but arises from the
contract.
2. A legal action that arises from a wrongful act, such as
fraud, fault, misconduct or malfeasance. |
Ad Valorem Duty |
Duty calculated on the basis of
value (usually a percentage of the value.) |
Address Of Record |
The official or primary location
for an individual, company, or other organization. |
Adhesion Contract |
A contract with standard, often
printed, terms for sale of goods and services, offered to
consumers who usually cannot negotiate any changes in the terms
and cannot acquire the product unless they agree to them. |
Adjustment Assistance
|
Financial, training and
re-employment technical assistance to workers, and technical
assistance to firms and industries, to help them cope with
adjustment difficulties arising from increased import
competition. |
Admiralty |
Any civil or criminal matter
having to do with maritime legal issues. |
Admiralty Court |
A court of law that has
jurisdiction over maritime legal issues. |
Advance Against Collection |
A short term loan or credit
extended to a seller (usually the exporter) by the seller's bank
once a draft has been accepted by the buyer (generally the
importer). |
Advance Arrangements |
In transportation, advance
arrangements must be made for certain kinds of cargo which
require special handling: hazardous cargo, over weight, over
sized, over normal quantity, time sensitive, shipped unpacked,
live animals etc. Not every carrier can or will transport every
kind of cargo. |
Advanced Technology Products (ATP)
|
Products whose technology is from
a recognized high technology field, represent leading edge
technology in that field, and constitute a significant part of
all items covered in the selected classification code. |
Advice |
1. A report from one party to
another informing them of an occurrence with regard to some
business transaction: a shipment, a collection, a manufacture
etc.etc.
2. A notification by an advising bank on behalf of the issuing
bank to a beneficiary informing them of the terms of a letter of
credit, |
Advised Credit |
A letter of credit whose terms and
conditions have been notified to the beneficiary by an advising
bank on behalf of the issuing bank. The advising bank does not
thereby commit itself to pay or guarantee the payment of the
letter of credit. |
Advising Bank |
An 'advising bank' is a
correspondent of a bank which issues a letter of credit, and, on
behalf of the issuing bank, the advising bank notifies the
beneficiary of the terms of the credit, without engagement on
its part to pay or guarantee the credit. |
Advisory Committee On Export
Policy |
A U.S. government interagency
dispute resolution body that operates at the Assistant Secretary
level. |
Advisory Committee On Trade Policy
And Negotiation |
A U.S. government group appointed
by the President to provide advice on matters of trade policy
and related issues, including trade agreements. |
Affiliate |
A condition of being united,
allied, associated, or attached. An affiliate company is one
effectively controlled by another. |
Affreightment Contract
|
A contract with a ship owner to
hire all or part of a ship for transporting goods - may involve
a charter. |
Afloat |
Refers to a shipment of cargo
which is currently on board a vessel between ports |
Aft |
At or towards the stern of the
ship or the tail of the aircraft. |
After Date |
A notation used on financial
instruments (such as drafts or bills of exchange) to fix the
maturity date as a fixed number of days past the date of drawing
of the draft. |
After Sight |
A notation on a draft that
indicates that payment is due a stated number of days after the
draft has been presented to the drawee. |
Agent |
A person or legal entity
authorized to act on behalf of another. |
Agent Bank |
1. A bank acting on behalf of
another bank.
2. A bank acting for lenders and bondholders, similar to an
indenture trustee. |
Aggregated Shipments |
Several shipments intended for one
consignee from various shippers that are consolidated and
treated as a single consignment. |
Agreed Valuation |
The value of a shipment that is
agreed upon by both the shipper and the carrier to define the
freight rate and/or the liability of the carrier. |
Air Cargo |
Property of any kind that is
transported by aircraft (excluding passenger baggage and mail). |
Air Express |
Expedited air freight service. |
Air Parcel Post |
Parcels shipped through the mails
to be transported by air. |
Airwaybill |
The shipping document used for the
transportation of air freight: includes conditions, limitations
of liability, shipping instructions, description of commodity,
and applicable transportation charges. It is generally similar
to a straight non-negotiable bill of lading and is used for
similar purposes. |
Alienable |
Ability to be transferred or
conveyed. |
All-Cargo Aircraft |
Any aircraft that is used for the
sole purpose of transporting cargo or mail. |
Allowance |
A deduction or discount from the
price permitted by a seller. |
Alternative Tariff |
In transportation, a tariff with
two or more rates for the same goods, to and from the same
points, with the opportunity available to the shipper to use the
lowest of the charges. |
Amendment |
An addition, deletion, or
modification of a document. |
Amidships |
The area of a vessel midway
between the front (the bow) and the rear (the stern). When the
term applies to an airplane, it is midway between the nose and
the tail. |
Amortization |
1. The provision to pay a debt
over a period of time.
2. The gradual repayment of borrowings in a series of
installments.
3. A transaction or security where the principal reduces over
the life of the agreement.
4. The writing off or reduction in value of an intangible asset
over time (c.f.depreciation)
5. Allocation of the cost of an asset over its estimated useful
life. |
Antidumping Duties |
Additional duties which are
assessed on imported goods when those goods are sold to the
importing country at a price that is less than "fair value",
("fair value" usually being defined as the price on the
exporting country's domestic market or to third countries), and
when those imported goods are found to cause or to threaten
material injury to industry of the importing country. |
Any Quantity |
A cargo freight rate that applies
to an article without regard to the weight or quantity shipped. |
Applicant (also Account Party) |
1. The party at whose request a
bank issues a letter of credit.
2. A person who applies for something: a job, a passport, a
visa, a license, a ticket etc. etc. |
Appreciation |
An increase in the value of
something, - of goods, of currency, of shares of stock, etc,. |
Approx. (Approximately) |
Same as "about" and "circa"; terms
which when used in a letter of credit are construed to allow a
difference not to exceed 10% more or 10% less than the monetary
amount, or the quantity, or the unit price. |
Appurtenance |
An accessory, adjunct, or
appendage connected to a primary property and used in
conjunction therewith. |
Apron |
1. Area of the airport where
planes are parked. May be used for loading and unloading of
aircraft.
2. Area along the waterside edges of a pier, not under cover,
used for loading and unloading of vessels. |
Arbitrage |
A method of taking advantage of
the fact that there may be different prices in different markets
for identical goods such as gold, foreign exchange or
commodities. Simultaneously, one buys in the lower price market
and sells in the higher one. |
As Is |
Indicates goods for sale do not
include a warranty , implied or expressed; the buyer takes the
entire risk as to the quality or condition of the goods involved
and must trust to his own inspection. In sum, the sale is
"without recourse". |
Assembly Service |
A service under which a carrier or
a forwarder or a warehouse combines multiple shipments from
multiple shippers into one shipment for one receiver. |
Assessment |
1. The valuation, or determination
as to value, of property.
2. The act of apportioning amounts to be paid.
3. An amount assessed or charged, for example: taxes or dues. |
Assignment of Proceeds of a Letter
Of Credit |
If the bank agrees, the
beneficiary assigns all or part of the proceeds to be paid to
another party after the required documents have been presented. |
At Sight |
A notation on a draft which
indicates that payment is due upon its presentation. |
Athwartships |
Across a vessel form side to side. |
Automated Broker Interface (ABI) |
(USA) A module of the U. S.
Customs Automated Commercial System which provides a
communications link for the transmission of entry and entry
summary data on imported merchandise between ABI users and
Customs. |
Automated Commercial Environment
(ACE) |
(USA) A US Customs electronic data
system, which provides support for enforcing trade and
contraband laws, ensuring trade compliance, and providing
service and information to the international trade community.
When completed, it will cover the full gamut of Customs
activities. |
Automated Commercial System (ACS) |
(USA) The comprehensive electronic
data system of U. S. Customs for tracking, controlling, and
processing commercial importations. |
Automated Information Exchange
System (AIES) |
(USA) A module of the Automated
Commercial System of U. S. Customs which provides an automated
method of exchanging information between Field Import
Specialists and National Import Specialists. |
Automated Manifest System (AMS) |
(USA) A module of the Automated
Commercial System of U. S. Customs designed to control imported
merchandise from the time a carrier's cargo manifest is
electronically transmitted to U.S. Customs until the cargo is
properly entered, released by customs and delivered. |
Avoidance Of Contract |
The legal cancellation of a
contract because an event occurs that makes performance of the
contract terms impossible or inequitable and that releases the
parties from their obligations. |
B |
Back Haul |
The return of a carrier to the
original point or area from which its journey began. If a
carrier can obtain cargo to carry on the back haul route, that
cargo may often obtain a favorable freight rate because
otherwise the carrier would have to return empty. |
Back Order |
That portion of an order that
cannot be delivered at the scheduled time, but will be delivered
at a later date when available. |
Bad Faith |
The intent to mislead or deceive.
It does not include misleading by an honest, inadvertent or
uncalled-for misstatement. |
Bagged Cargo |
Goods shipped in sacks. |
Bailment |
A delivery of goods or personal
property by one person (the bailor) to another (the bailee) on
an express or implied contract for a particular purpose related
to the goods while in possession of the bailee, who has a duty
to redeliver them to the bailor. |
Balance Of Payments |
A statement summarizing all the
economic and financial transactions between companies, banks,
private households and public authorities of one nation with
those of the other nations of the world over a specific time
period. It includes merchandise trade payments, payments and
receipts on account of shipping services, tourist services,
financial services, government expenditures, short and long term
capital movements, interest and dividends, gold movements, etc. |
Balance of Trade |
The difference in value between a
country's total imports and exports over a specific time period. |
Balanced Economy |
A condition of national finances
in which imports and exports are equal. |
Bale |
A large bundle or package of
compressed and bound goods, usually with an outer covering,
often of burlap. |
Bale Cargo |
Cargo shipped in bales. |
Ballast |
Heavy material or water placed in
the lower holds of a ship or in strategically placed tanks along
the sides to improve its stability. |
Bank Acceptance |
A draft drawn on and accepted by a
bank. |
Bank Delivery Order to an Airline |
A letter addressed to an air
carrier from a bank who is shown as consignee on an airwaybill
instructing the carrier to release a shipment. Often airlines
will accept as a delivery order a bank's endorsement on the
airwaybill, although an airwaybill is a non-negotiable document. |
Bank Draft |
A form of check drawn by a bank
against its account in another bank. |
Bank Guarantee |
An indemnity letter in which the
bank commits itself to pay a certain sum if a third party fails
to perform or if any other form of default occurs. One use is
when a bank wants a carrier to release a shipment which it has
financed but the original bills of lading are not yet available
for surrender to the carrier. |
Bank Holding Company |
(USA) Any company which directly
controls, with power to vote, more than five percent of voting
shares of two or more banks (as defined by the Bank Holding
Company Act . |
Bank Holiday |
A day on which banks are closed. |
Bank Note |
A promissory note having the
appearance of currency, issued by a bank or banker authorized to
do so, payable to bearer on demand, and intended to circulate as
money. |
Bank Release |
A document issued by a bank who is
the consignee of a shipment authorizing a carrier to deliver a
shipment. |
Banker's Bank |
A bank that is established by
mutual consent by independent and unaffiliated banks to provide
a clearinghouse for financial transactions. |
Banker's Draft |
A draft payable on demand and
drawn by, or on behalf of, a bank upon itself or upon another
bank, sometimes a foreign bank, where it maintains an account or
a relationship. |
Bankers Acceptance |
A draft calling for payment at a
future date on which the drawee is a bank, and the bank has
agreed to pay by signing "accepted" on the draft. |
Bankruptcy |
The condition of a legal entity
that does not have the financial means to pay their incurred
debts as they come due. In the U.S. this status is established
through legal procedures involving a petition by the bankrupt or
by its creditors. |
Bareboat Charter |
The charter of a vessel where the
charter party has the right to use his own master and crew on
the vessel. Pays all operating expenses. |
Barge |
A flat bottomed cargo vessel
primarily used on rivers and canals. Usually it is towed or
pushed but it may be self-propelled. |
Barratry |
1. In maritime law the intentional
misconduct of the ship's master or crew; includes theft,
intentional casting away of vessel, or breach of trust.
2. The offense of frequently stirring up quarrels and suits,
either at law or otherwise. |
Barter |
Trade of goods or services without
the use of money. |
Basing Point |
A location which is used to set
the selling price of goods and the freight rates to all points.
A price is set at a given location chosen as the ex-factory
basing point with freight to the place of delivery added to
create a delivered price. Then like goods, wherever they may be
sold from, are charged freight to their destination as if they
were shipped from the same location (the basing point). |
Basing Rate |
A freight rate which is used for
the sole purpose of determining other freight rates. For an
explanation of how this works, see 'Basing Point'. |
Basket of Currencies |
A composite unit consisting of
weighted amounts of the currencies of a group of designated
nations. |
Battens |
1.The protruding fixtures on the
inside walls of a vessel's hold which are used to keep the cargo
away or to fasten it in place.
2. Similar structural parts to the above in truck bodies,
containers and rail cars. |
Bearer |
The person in possession of a
negotiable instrument, document of title, or security marked
"payable to bearer", or the person in possession of one of these
documents endorsed in blank. |
Beggar-Thy-Neighbor Policy |
A course of action through which a
country tries to reduce unemployment and increase domestic
output by raising tariffs and instituting non-tariff barriers
that impede imports, and thus improve its own position at the
expense of its trading partners. |
Belly Pits or Holds |
Compartments beneath the cabin of
an aircraft used for the transport of cargo or baggage. |
Beneficiary |
1. In the case of a letter of
credit, the individual or company who is entitled to draw or
demand payment under its terms.
2. In the case of insurance, the person entitled to take the
proceeds.
3. The person for whose benefit a contract, or trust, or will is
executed or enforced. |
Berth |
The place beside a docking area
where a ship is secured and cargo can be loaded or unloaded. |
Bid Bond |
A type of indemnity bond. A surety
guarantee often required to be established by a bidder to
guarantee fulfillment of his offer if accepted. |
Bilateral Investment Treaty |
A treaty between two countries
with the goal of ensuring that investments made by either of
them in the other receive treatment equal to that afforded their
domestic entities or any third country entities. |
Bilateral Trade |
The commerce between two
countries. |
Bill |
1. A "Bill of Exchange" or "Draft"
(same thing).
2. A written statement of contract terms.
3 .The word "Bill" has many other international trade
connotations - "Invoice" etc. |
Bill of Credit |
A written authority from one
person to another, empowering the recipient of the document to
receive money from the correspondents of the issuer abroad .
(The usual issuer is a bank) |
Bill of Exchange |
Draft or Bill. |
Bill of Health |
An official certificate (Pratique)
issued by the authorities upon the departure of a vessel or
airplane showing the state of health at the place of departure,
and of the passengers and crew. |
Bill of Lading |
A document issued by a carrier
which is evidence of receipt of the goods, and is a contract of
carriage. It describes the goods, the details of the intended
voyage, and it specifies the conditions of transportation. If
issued in negotiable form, i.e. "to order", it becomes
documentary evidence of title to the goods. |
Bill of Sale |
A written document by which a
party legally transfers ownership of goods to another party. |
Bill-To Party |
The party designated on purchase
order, invoice, or bill of lading as the one to whom the bill
should be sent for payment. |
Billed Weight |
The designated weight shown on the
freight bill which is used to calculate the freight charges. |
Billing Third Party |
The transference of transportation
charges to a party other than the shipper or consignee. |
Biological Agents |
A complex substance of organic
origin which can treat or cause disease. |
Black Market |
Buying or selling of products that
violate government restrictions. |
Blanket Rate |
In insurance, a rate of premium
applied across the board when there is more than one kind of
property which is the subject of insurance. |
Blockade |
Prevention of commercial exchange
by physically preventing carriers from entering a port or
nation. |
Bona Fide |
In or with good faith, honesty,
and sincerity. |
Bond |
1. A written undertaking to
perform or refrain from performing specified acts, usually
guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is
due and usually specifying a rate of interest and its dates of
periodic payment. |
Bond of Indemnity |
A bond to indemnify and save
harmless the party to whom the bond is issued against some
anticipated loss. |
Bond System |
(USA) An automated electronic
system, part of the Automated Customs System, whose purpose is
to control and track indemnity bonds issued to Customs to secure
compliance with various laws. |
Bonded |
(USA) This term refers to goods
which are held, stored or transported under circumstances where
applicable duty or taxes have not yet been definitely determined
or paid, and admissibility has not yet been arranged. Bonds must
be posted by those who are responsible for the goods during this
period (the carriers, warehouses, and/or importers) to indemnify
the government if the goods are released improperly. |
Bonded Terminal |
(USA) A terminal approved by
Customs for temporary storage of imported goods until Customs
duties are paid or goods released. Bonds must be posted by the
terminal operator to indemnify the government if the goods are
released improperly. |
Bonded Warehouse |
(USA) An approved private
warehouse used for the storage of goods until duties or taxes
are paid and the goods are properly released by Customs. Bonds
must be posted by the warehouse proprietor and by the importer
to indemnify the government if the goods are released
improperly. |
Booking |
The making of arrangements for a
shipment with the representatives of a vessel or airline. |
Bounties |
A compensation paid to persons to
induce certain actions. In this class are government payments to
producers or exporters to strengthen their competitive position. |
Box |
1. Term referring to a trailer,
semi-trailer, or container used in transportation.
2. A type of package of wood, cardboard, metal, plastic or other
material. |
Box Car |
A closed railroad freight car. |
Boycott |
A concerted refusal to deal
commercially with a person, firm, or country. |
Breakage |
1. A monetary allowance that a
manufacturer allots for compensation to a buyer for breakage to
goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for
example in computing interest.
3. In marine insurance, "breakage" refers to breakage of fragile
goods such as glass and china. |
Breakbulk |
1. A breakbulk ship is one which
transports cargo which is packed in cases, bales, cartons,
drums, carboys etc., and this cargo is carried in the ship's
cargo holds rather than in containers (although some loaded
containers may be carried).
2. 'to breakbulk' is to unload packaged cargo from a 'breakbulk
ship' or from a container and to distribute it. |
Breakbulk Cargo |
Cargo that is shipped in packing
units such as cartons, cases, crates, bales, or drums, but not
containerized. |
Broker |
One that acts as an agent for
others, as in negotiating contracts, purchases, or sales in
return for a fee or commission. |
Bulk Cargo |
Cargo that is made up of an
unpacked commodity; examples include grain, oil, and ore. |
Bulk Carrier |
A vessel designed for the shipment
of bulk cargo. |
Bulk Freight |
Cargo not in packages or
containers. |
Bulk Sale |
The transfer or sale of
substantially all of an inventory of an enterprise in a single
transaction not in the usual course of business. |
Bulk Solids |
Dry cargo shipped loose, such as
grain, ore, etc. |
Bunker Adjustment Factor |
An adjustment in shipping charges
to offset price fluctuations in the cost of bunker fuel. |
Bunker Fuel |
The fuel used to power a ship. |
Bunker(s) |
1. A compartment (hold) of a ship
for storage of fuel.
2. The fuel for a vessel |
Bureau Of Alcohol, Tobacco And
Firearms |
The Bureau of Alcohol, Tobacco and
Firearms (ATF) is a law enforcement organization within the
United States Department of Treasury with unique
responsibilities dedicated to reducing violent crime, collecting
revenue, and protecting the public. ATF enforces the Federal
laws and regulations relating to alcohol, tobacco, firearms,
explosives and arson by working directly and in cooperation with
others. |
Bureau of Industry and Security |
A U.S. government agency
responsible for control of exports for reasons of national
security, foreign policy and short supply. |
Buy American Acts |
U.S. federal and state government
statutes that give a preference in government contracts to U.S.
produced goods. |
C |
Cabotage |
1. Water transportation,
navigation or trade along the coasts, between the ports of one
nation.
2 Inland freight movements confined with the national boundaries
of a nation are also sometimes called cabotage. |
Call |
1. A demand for early repayment of
an obligation, or for the performance of a specific act under a
contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for "Call Option," a contract giving the holder the
right to receive from the issuer a specified amount of a
security at a specified price on or before a certain date.
5. Short for "Margin Call" - a call by a future or an options
exchange, or by a broker to its clients, for additional
collateral to that previously posted when the futures, options,
or securities were purchased without posting their full value. |
Call Money |
Money lent by banks on a short
term basis which the bank, as lender, can "call" (demand payment
at any time, usually on 24 hours notice.) |
Capacity To Contract |
Legal competency to make a
contract. |
Capital Goods |
1. Durable goods which are used to
produce other goods for consumption: for example machinery,
equipment, buildings
2. Also, material used or consumed to produce other goods. |
Capital Market |
The market for long term
investment funds in the form of stocks, bonds, commercial paper
etc. |
Captain's protest |
A written sworn statement of the
master of a vessel to the effect that damage suffered by the
ship during the voyage was caused by storm or other peril of the
sea, without any negligence or misconduct on his own part. |
Cargo |
Merchandise hauled by
transportation lines. |
Cargo Agent |
An agent appointed by an airline
or shipping line to solicit and process international air and
ocean freight shipments. |
Cargo Manifest |
A list of cargo being transported
or warehoused. |
Cargo Selectivity System |
(USA) An Automated Customs System
module which is used to identify high risk cargo and to apply
more intensive examinations to it. |
Cargo Tonnage |
The weight of a shipment or of
ship's total cargo expressed in tons. |
Carnet |
Called an "A T A Carnet". An
international customs document which incorporates guarantees to
be used in lieu of Customs documents to enter goods into certain
countries temporarily without paying import duty or posting
bonds. |
Carriage Of Goods By Sea Act Of
1936 |
(USA) The basic law of ocean
shipping in the U.S. Among other provisions, it establishes
parameters for the carrier's liability for loss or damage to
cargo. |
Carrier |
A legal entity that is in the
business of transporting passengers or goods for hire. |
Carrier's Certificate |
(USA) A document issued by a
carrier providing the particulars of a shipment and designating
to customs who may make a customs entry on that shipment.. |
Cartel |
A group of independent producers
which regulates production, pricing, and marketing by members to
maximize market power and limit competition. |
Cash Against Documents (CAD) |
A term used in collections
supported by shipping documents which are released to the buyer
only against payment. Same as Documents Against Payment (D/P). |
Casus Major |
An extraordinary casualty such as
a fire, shipwreck etc. |
Category Groups |
A classification system which
groups various products for statistical, export control or quota
control purposes. |
Caveat Emptor |
Let the buyer beware, which is to
say the purchaser buys at his own risk. |
Cell |
The space constructed on a ship
into which one container fits. |
Census Interface |
(USA) An Automated Customs System
module that captures trade data for the U.S. Bureau of Census. |
Central Bank |
An institution with the sole right
to issue bank notes and power to dictate the monetary policy for
a currency zone. |
Certificate of Inspection |
A certificate issued by an
independent third party verifying the condition of cargo or of
property. |
Certificate of Manufacture |
1. A certificate sometimes
required from a manufacturer to attest that goods have been
manufactured according to the contract; for example, to support
payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback
based on manufacture in the United States. |
Certificate of Weight |
A document certifying to the
weight of a shipment. |
Certification |
1. Official proof of authenticity.
2. The formal assertion of some fact in writing. |
Cession of Goods |
A surrender or assignment of goods
for the benefit of one's creditors. |
CFR (Cost and Freight ...named
port of destination) |
The seller must pay the costs and
freight necessary to bring the goods to the named port of
destination but the risk of loss of or damage to the goods, as
well as any additional costs due to events occurring after the
time the goods have been delivered on board the vessel, is
transferred from the seller to the buyer when the goods pass the
ship's rail in the port of shipment. (Note: this Incoterm, CFR,
has replaced the term C&F which has been in common usage) |
Chargeable Weight |
The weight or volume of a shipment
used in determining freight charges. |
Charter Service |
Temporary hiring of an aircraft or
vessel for the transportation of cargo or passengers. |
Chartered Ship |
A ship leased for a stated time,
voyage, or voyages. |
Chassis |
1. A special trailer or
undercarriage on which containers are moved over the road.
2. The undercarriage of a vehicle. |
CIF (Cost, Insurance and
Freight... named port of destination) |
The seller has the same
obligations as under CFR but with the addition that he has to
procure marine insurance against the buyer's risk of loss of or
damage to the goods during the carriage. The seller pays the
insurance premium and is only required to obtain minimum
coverage. |
CIP (Carriage and Insurance Paid
To...named place of destination) |
The seller has the same
obligations as under CPT but with the addition that the seller
has to procure cargo insurance against the buyer's risk of loss
of or damage to the goods during the carriage. The seller pays
the insurance premium and is only required to obtain minimum
coverage. |
Circa |
Same as "about" and "approx.";
terms which when used in a letter of credit are construed to
allow a difference not to exceed 10% more or 10% less than the
monetary amount, or the quantity, or the unit price. |
City Terminal Service |
A service provided by some
airlines that involves receiving or delivering cargo at
terminals in-town instead of at airports. |
Claim |
1. A demand of payment.
2. In insurance, a demand for payment of money or property as
the result of an insured loss..
3. In transportation, a demand for return of overpaid charges.
Also, a demand for reimbursement of losses due to loss or
casualty to cargo or failure to deliver. |
Classification |
The categorization of merchandise:
In transportation - to permit determination of freight
rates within a tariff.
In customs - to permit the determination of duty status
within the Harmonized Tariff Schedules. |
Claused Bill of Lading |
A notation on a bill of lading
which denotes a deficient condition of the goods or packaging,
or other annotated conditions modifying the printed conditions
on the Bill Of Lading. |
Clean Bill of Lading |
A bill of lading issued by a
carrier for goods delivered in "apparent good order and
condition" - bearing no notations or added clauses which may
limit the liability of the carrier. |
Clean Draft |
A draft with no commercial
documents attached. |
Clearance |
1. The completion of governmental
requirements so that a carrier may arrive in a port and unlade
cargo and passengers, or may lade cargo and passengers and
depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to
allow goods to be imported or to be exported. |
Closed-End Transaction |
A credit transaction with a fixed
amount of time for repayment. |
Coastal Trade |
Trade by vessel between the ports
of one nation. |
Collar |
An agreement that puts upper and
lower limits on the interest rate of a financial instrument or
on the price of something, and through this device limits the
possible amount of loss or gain from the rise or fall of
interest or price of the thing "collared" |
Collect Charges |
1. Transportation practice where
the receiver of the goods pays the freight and charges to the
carrier.
2. Collection practice where the buyer is expected to pay the
bank charges for handling the collection. |
Collect on Delivery (C.O.D.) |
A service where the purchase price
of a shipment is collected by the carrier upon delivery of the
shipment and subsequently paid to the shipper. |
Collecting Bank |
A bank involved in the collection
process. In this process if presentation is made to the drawee,
it becomes also "the presenting bank." |
Collection |
1. The presentation for payment of
an obligation and the payment thereof.
2. A gathering of similar goods. |
Collection Letter |
Customer's written instructions to
a bank on how to handle a collection. Many banks have an
instruction form for use instead of a letter. |
Collection Papers |
Drafts, invoices, printed lists,
documents which relate to a shipment, and other similar
instruments presented to the designated buyer/ payee to obtain
payment or acceptance. |
Collection System |
(USA) In U.S. Customs, it is the
process that controls and accounts for payments collected by the
agency. |
Combination Aircraft |
An aircraft capable of
transporting both cargo and passengers on the same flight. |
Combined Bill of Lading |
A bill of lading covering a
shipment of goods by more than one mode of transportation. |
Combined Transport |
Consignment sent by means of
various modes of transport. |
Comity |
1. In international relations it
is the recognition that one sovereignty allows within its
territory to the legislative, executive or judicial acts of
another sovereignty, with due regard to the rights of its own
citizens.
2. Courtesy, respect, and good will. |
Command Economy |
An economic system where the
decisions about allocation of resources, production,
distribution and consumption are made by a central government
authority instead of being determined by market forces. An
example was the Nazi economy. |
Commercial Bank |
In the USA, a bank that is
authorized to accept demand deposits. It may also receive time
deposits, make loans, engage in trust services, issue letters of
credit, accept and pay drafts, rent safe deposit boxes and
engage in many other similar activities. |
Commercial Invoice |
A document which details the
transaction between a seller and a buyer. It minimally should
give the name and address of the seller and of the buyer, the
date of the sale, a description of the goods sold, the quantity,
the unit price, the terms of sale, and the total money amount
due. If it is an invoice between buyer and seller of different
countries it should also indicate the kind of currency. |
Commercial Letter of Credit |
An instrument by which a bank
substitutes its credit for that of a customer to enable him to
finance the purchase of goods or to incur other commitments. The
bank issues a letter (or document) on behalf of its client to a
supplier and agrees to pay them upon presentation of documentary
evidence that the supplier has performed in accordance with the
terms of the letter of credit. |
Commercial Officers |
Embassy and consular officials who
assist their country's citizens and businesses in a foreign
country through arranging appointments with local business and
government officials and providing counsel on local trade
regulations, laws, and customs. |
Commercial Paper |
Negotiable instruments used in
commerce. Usually they are short term, unsecured, promissory
notes issued by highly rated entities and are traded on the
money markets. |
Commercial Set |
The documents required to evidence
the shipment of goods; usually includes an invoice, packing
list, and bill of lading; may include certificate of origin,
certificate or policy of insurance, and other special documents. |
Commercial Treaty |
An agreement between two or more
countries that establishes the conditions under which business
may be conducted between their citizens within their countries.. |
Commingling |
1. The packing or mingling of
various goods subject to different rates of duty so that the
value and quantity of each class of goods cannot be readily
determined.
2. To combine funds or properties into a common mass. |
Commission |
1. A board or committee officially
appointed to perform certain functions or exercise certain
jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in
the completion of a transaction involving the sale of goods or
services.
3.The authority under which one acts, transacts business or
negotiates for another. |
Commodity Code |
The system of identifying a
commodity by an assigned number. |
Commodity Rate |
The rate applicable to shipping a
given commodity between points. |
Common Point |
1. A location serviced by two or
more transportation lines.
2. A significant point over which aircraft fly and report to the
air controllers. |
Competitive Rate |
Rate determined by one
transportation line to compete with the rate of another
transportation line. |
Compradore |
An agent in a foreign country
employed by a domestic businessman to facilitate transactions
with local businesses within the foreign country. |
Concealed Damage |
Damage to the contents of a
package which is not evident from the appearance of the exterior
of the package. |
Concealed Loss |
1. Loss from a package bearing
concealed damage.
2. Damage, loss, or shortage of goods within a package which is
not apparent from its exterior condition. |
Confirming Bank |
A bank which engages to honor a
letter of credit issued by another, or engages that such letter
of credit will be honored by the issuer or by a third bank. |
Connecting Carrier |
A carrier which has direct
physical connection with another carrier or forms a connecting
link between two or more carriers. |
Consignee |
The person or firm named in a
freight contract to whom goods have been shipped or turned over
for care. |
Consignment |
1. Goods or property sent by the
aid of a carrier from one person (the consignor) to another (the
consignee).
2. Entrusting of goods to another to sell as agent for the
sender. |
Consignor |
The entity that ships goods to
another. On a bill of lading, the shipper. |
Consolidated Container |
A shipping container that contains
cargo from various shippers for delivery to various consignees. |
Consolidation |
1. In transportation, the
combining of smaller shipments into a single shipment that is
sent to a destination point.
2.The reorganization of corporations to combine two or more into
a successor corporation. |
Consolidator |
A company that provides freight
consolidation services. |
Consular Invoice |
An invoice covering a shipment of
goods, usually required to be certified by the counsel of the
country for which the merchandise is destined. It may be
required to be on a special form and be subject to the payment
of special fees. |
Consulate |
An office of a country within
another country (often there are several, located in the larger
commercial centers). These offices represent the commercial
interests of the citizens of their country. |
Consumer Goods |
Any goods produced for the express
use of individuals rather than the production or manufacturing
of other goods. |
Consumption Entry |
(USA) A "consumption entry" is the
filing with Customs in proper form of an "entry summary for
consumption" on imported goods , and payment of estimated
duties, taxes, and fees, if any, resulting in the release of the
goods by Customs. When the release is unconditional, the
importer may dispose of the goods. |
Container |
A reusable, rigid, exterior "box"
in which merchandise is shipped by air, vessel, truck, or rail. |
Container Freight Charge |
Charge made for the packing or
unpacking of cargo from ocean freight containers. |
Container Load |
A shipment of cargo that,
according to weight or volume, will fit a standard container. |
Container on Flatcar |
A container without wheels put on
railcars for transport inland, |
Container Part Load |
A shipment of cargo that according
to weight or volume will not fill a standard container on its
own but is expected to be shipped in a container, if necessary
with other shipments which are also too small to take up a full
container themselves. |
Container Vessel |
An ocean going vessel designed
specifically to handle the loading, carriage and removal of
standard freight containers. |
Contraband |
Any product that a nation has made
unlawful to possess, produce, transport, import, or export. |
Contract Carrier |
Excluding common carriers, any
person who under contract will transport passengers or goods for
agreed upon compensation. |
Convertibility |
The attribute of being
exchangeable, such as a currency freely able to be exchanged for
another, or as preferred stock or bonds to be exchanged for
common stock. |
Core Inflation |
The basic level of inflation over
a period of time as opposed to temporary fluctuations. |
Corporate Dumping |
The practice of exporting banned
or out of date goods to a foreign market where restrictions on
that product are not as severe. |
Cost Plus |
A pricing method where the
purchaser agrees to pay the production cost of the good plus a
fixed percentage to the seller for profit. |
Countervailing Duties (CVD) |
(USA) Duties which are assessed,
in addition to regular duties, to offset the effects of foreign
subsidies or bounties upon the export of merchandise to the
United States which has been found to materially injure, or
threaten material injury to, an American industry. |
Country of Departure |
The country from which a shipment
of goods, a carrier, or a passenger has or is scheduled to
depart. |
Country of Destination |
The country that is the ultimate
destination for a shipment of goods. For a carrier, it is the
country in which it intends to complete its current voyage or
flight. |
Country of Dispatch |
The country from which a cargo is
shipped. |
Country of Export Destination |
The country to which goods are
going in order to be consumed, further processed, or
manufactured, as presumed by the shipper at the time of
exportation. |
Country of Exportation |
The country from which goods are
shipped with intention to separate them from the mass of goods
in that country. |
Country of Origin |
The country in which goods were
produced, mined, grown or manufactured. |
Country Risk |
The financial risks of a
transaction which relate to the political, economic, or social
instability of the country of the debtor, and is over and above
the credit risk of the borrower. |
Courier |
1. Attendant who accompanies
shipments.
2. Express company which handles shipments of documents and
small packages on an expedited basis and may or may not have the
shipments accompanied by attendants, |
CPT (Carriage Paid To...named port
of destination) |
The seller pays the freight for
the carriage of the goods to the named destination. The risk of
loss of or damage to the goods, as well as any additional costs
due to events occurring after the time the goods have been
delivered to the carrier, is transferred from the seller to the
buyer when the goods have been delivered into the custody of the
carrier. |
Customs |
The government service which is
responsible for the administration of Customs law and the
collection of duties and taxes relating thereto, and which has
responsibility for the application of other laws and regulations
relative to the importation , transit, and exportation of goods. |
Customs Electronic Bulletin Board
(CEBB) |
(USA) Customs Electronic Bulletin
Board (CEBB): An electronic bulletin board accessible by
computer, sponsored by U.S. Customs, providing the trade
community with up-to-date information, clearance requirements,
and operation instructions. |
D |
DAF (Delivered At Frontier
...named place) |
The seller fulfils his obligation
to deliver when the goods have been made available, cleared for
export, at the named point and place at the frontier, but before
the customs border of the adjoining country. |
Damages |
1. A loss or harm to a person or
their property.
2. The pecuniary compensation or indemnity which may be
recovered by any person who has suffered loss, detriment or
injury to his person, property or rights through the unlawful
act, omission, or negligence of another. |
Dangerous Goods |
Goods which are capable of posing
a health or safety risk. |
Date Draft |
A draft which matures a specified
number of days after the date it is issued. |
Date of Issue |
The arbitrary date on a contract
or on a financial instrument fixed as the date from which the
term runs. (Neither the actual date on the instrument, nor the
date the instrument was actually signed, nor the date the
instrument was executed, nor the date the instrument was
delivered, are considered to be the "Date of issue" or the
"issuance date".) |
DDP (Delivered Duty Paid...named
place of destination) |
The seller fulfils his obligation
to deliver when the goods have been made available at the named
place in the country of importation. The seller has to bear the
risks and costs, including duties, taxes and other charges of
delivering the goods thereto, cleared for importation. |
DDU (Delivered Duty Unpaid...
named place of destination) |
The seller fulfils his obligation
to deliver when the goods have been made available at the named
place in the country of importation. The seller has to bear the
costs and risks involved in bringing the goods thereto
(excluding duties, taxes and other official charges payable upon
importation as well as the costs and risks of carrying out
customs formalities). The buyer has to pay any additional costs
and bear any risks caused by his failure to clear the goods for
import in time. |
Deadweight |
1. In maritime terms, the
deadweight of a vessel is the maximum weight of the cargo, crew,
stores and bunkers that it can carry when loaded so that it
settles in the water to the Plimsoll line. This is also
measurable by the weight of the water the vessel displaces when
fully loaded less the displacement when it was unloaded.
2. Deadweight cargo is cargo of such high density that a long
ton (2240 lbs.) of such cargo can be stowed in less than 70
cubic feet. |
Dealer |
An individual or firm who
purchases goods for resale. |
Debtor Nation |
A nation that is owed less foreign
currency obligations than it owes other nations. |
Deck Cargo |
Cargo that is shipped on the deck
of a vessel rather than in holds below. |
Declared Value For Carriage |
The value of goods declared to the
carrier by the shipper for the purposes of determining charges
and establishing the liability of the carrier. |
Declared Value for Customs |
The value of a shipment according
to the customs laws of the destination country required to be
declared by the shipper on the shipping documents or by the
importer when he presents the goods for customs clearance. |
Deferred Air Freight |
Arrangements can be made according
to the tariffs of some air carriers to have less urgent freight
delivered at a lower cost on later flights which are more
convenient for the airline. |
Deferred Payment Letter of Credit |
A letter of credit that allows the
buyer to take possession of goods by agreeing to pay the issuing
bank or the confirming bank at a fixed future date. |
Del Credere Risk |
A situation where a sales agent
sells on credit and for an additional commission guarantees to
his principal the credit of the purchaser and the performance of
the contract. |
Delivery |
1. In the case of transportation,
the act of transferring physical possession.
2. The act of actually or of constructively placing goods or
property within the possession or control of another. |
Delivery Carrier |
The transport carrier whose
responsibility it is to place a shipment at the disposal of the
consignee at the named destination. |
Delivery Instructions |
Specific delivery instructions for
the freight forwarder or carrier stating exactly to whom, where
and when goods are to be delivered. |
Delivery Order |
A document from the consignee,
shipper, or owner of freight ordering the release of freight to
another party. |
Demise |
1. A lease of property.
2. Death. (Isn't English an interesting language?) |
Demise charter |
A lease of a vessel in which all
control is relinquished by the owner to the charterer, and the
charterer bears all the expenses of operation. Similar to
bareboat charter. |
Demurrage |
1. In international
transportation, a charge for the failure to remove cargo from a
terminal within the allowed free time. Also, a charge for
failure to load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against
users for use of carriers' equipment beyond the allowed free
time. |
DEQ (Delivered Ex Quay - Duty Paid
- ...named port of destination) |
The seller fulfils his obligation
to deliver when he has made the goods available to the buyer on
the quay (wharf) at the named port of destination, cleared for
importation. The seller has to bear all risks and costs
including duties, taxes and other charges of delivering the
goods thereto. (Note: If the parties wish the buyer to clear the
goods for importation and pay the duty, the words "duty unpaid"
should be used instead of "duty paid", and other costs of
importation can also be excluded from the seller's obligations
if this is made clear by adding words to this effect.) |
DES (Delivered Ex Ship...named
port of destination) |
The seller fulfils his obligation
to deliver when the goods have been made available to the buyer
on board the ship uncleared for import at the named port of
destination. The seller must bear all the costs and risks
involved in bringing the goods to the named port of destination. |
Destination |
The place to which a shipment or
person is going.. |
Detention |
The act of keeping back or
withholding either accidentally or by design a person or thing. |
Devanning |
The unloading of cargo from a
shipping container. |
Developed Countries |
A term used to describe the
industrialized nations. |
Developing Countries |
A term used to describe countries
that lack strong amounts of industrialization, infrastructure,
and sophisticated technology, but are beginning to build these
capabilities. |
Differential |
An amount added to or deducted
from a base shipping freight rate between two given locations to
determine a new rate to or from some other point or via another
route. |
Direct Mail Collection (DMC) |
A seller may forward his documents
and instructions for collecting payment directly to a collecting
bank in a foreign country, without going through the
intermediary of the seller's own domestic bank. |
Discharge |
1. To release; liberate; annul;
unburden; disencounter; dismiss. To extinguish an obligation;
terminate all employment of a person; release, as from prison or
military services.
2. The unloading of passengers or cargo from a vessel, vehicle,
or aircraft. |
Discharging |
The unloading of cargo from a
carrier, or of the contents from a container. |
Discounted Bill |
An accepted draft against which a
loan is made and the interest is deducted immediately. |
Discounting |
1. The sale at less than original
price of a commodity or monetary instrument, often for immediate
payment.
2. A loan by a bank with a deduction of the interest in advance. |
Discrimination |
A failure to treat all persons or
parties equally where no reasonable distinction can be found
between those favored and those not favored. It mat be reflected
in treatment, service or rates. |
Dishonor |
1. The refusal by a drawee to
accept a draft or to pay it when due.
2. The act of disrespect or insult. |
Dispatch |
1.An amount paid by a vessel's
operator to a charterer if loading or unloading is completed in
less time than stipulated in the charter agreement.
2. a message or report to a newspaper from a correspondent, or
between government services such as state or military.
3. to send to a destination. |
Distribution Service |
A transportation service that
accepts a shipment from a shipper and at destination separates
and sorts the packages and distributes them to many receivers. |
Distributor |
An agent who sells for a supplier
at wholesale and usually maintains an inventory of the
supplier's products. |
Diversion |
Any change in the routing of a
shipment once it has been received by the carrier at point of
origin and prior to delivery at destination. |
Dock |
1. A loading or unloading platform
at an industrial location or carrier terminal.
2. A ship's berth or wharf. |
Dock Examination |
(USA) Examination of imported
merchandise by Customs at the terminal where it is discharged
from the import carrier. |
Dock Receipt |
A receipt issued by a vessel agent
that certifies that goods have been received. |
Documents Against Acceptance (D/A) |
As a procedure to collect payment
on an exported shipment. instructions are given that documents
necessary to obtain the merchandise from customs and the carrier
are to be released to a buyer only against the buyer's
acceptance of a time draft drawn upon him. |
Documents Upon Payment (D/P) |
As a procedure to collect payment
for an export shipment, instructions are given that the
documents necessary for the buyer to obtain the shipment from
customs and the carrier are to be released to him only upon
payment of the draft. (Same as CAD) |
Dolly |
A piece of equipment with wheels
used to move freight with or without a tractor. |
Domestic Exports |
Exports of goods which were grown,
produced, mined, or manufactured in the country from which
exported. |
Domicile |
That place where a person or
organization has their principal residence with intent to make
it their permanent home. |
Door-To-Door |
Shipping service from shipper's
door to consignee's door. |
Double-Column Tariff |
A customs tariff schedule with two
columns of rates, one for preferred trading partners and one for
imports from others. |
Downstream Dumping |
The sale of products below cost or
below fair value by a producer to a another producer in its own
domestic market by whom the product is then further processed
and exported to another country at a price lower than would
otherwise be charged and thus causing injury in that country. |
Drawback |
(USA) A refund of duty and taxes
which may be obtained upon the exportation or destruction of
certain articles under certain conditions. |
Drawback System |
(USA) An Automated Customs System
module that provides the means for processing and controlling
all types of drawback entries. |
Dray |
A vehicle used to haul cargo or
goods, usually drawn by a horse. |
Drayage |
The charge made for hauling
freight via carts, drays or trucks. |
Drop Shipment |
At the request of a wholesaler, a
shipment of goods from a manufacturer directly to a dealer or
consumer, avoiding delivery to the wholesaler. |
Drop-off |
The delivery of a shipment by a
shipper to a carrier for transportation. |
Dry Cargo |
Cargo which is of solid, dry
material. It is not liquid or gas, and generally the term
excludes cargo requiring special temperature controls. |
Dry-Bulk Container |
A shipping container designed to
carry unpackaged free-flowing dry solids such as grain or sand. |
Dry-Cargo Container |
Any shipping container designed to
transport goods other than liquids or gasses. |
Dual Exchange Rate |
The existence of two exchange
rates for a single currency for use in different circumstances
as mandated by the government. |
Dual Pricing |
The selling of identical products
in different markets for different prices. |
Dumping |
The sale of goods in a foreign
country at less than" fair value" (a price lower than that at
which it is sold within the exporting country or to third
countries), and which thereby materially injures, or threatens
to materially injure, that industry in the foreign country. |
Dunnage |
Materials placed around cargo to
prevent shifting or damage while in transit. |
Durable Goods |
Any product which is not consumed
through use. |
Dutiable List |
The list of Items in a country's
tariff schedule on which it charges import duty. |
Duty |
A tax levied by a government on
the import or export of goods.
(Note: The U.S. Constitution forbids the levying of taxes by the
U.S. on exports. However, most foreign governments do not have
this restriction,) |
E |
Easement |
A right to use another person's
property. |
Edge Act Corporations |
Banks that are subsidiaries either
to bank holding companies or other banks established to engage
in foreign business transactions. |
Electronic Commerce |
A system of integrated
communications, data management, and security services that
allow business applications within different organizations to
automatically interchange information. |
Electronic Data Interchange (EDI) |
Electronic transmission of data
and information according to particular protocols . |
Electronic Funds Transfer |
System of transferring funds from
one account to another by electronic means. |
Electronic Meat Health Certificate |
(USA) A demonstration project that
illustrates the electronic transmission of fresh meat health
certificates. |
Electronic Visa Information System
(ELVIS) |
(USA) An electronic data system
via which participating foreign governments transmit
electronically to the U. S. Government details of shipments of
quota controlled textile goods they have made to the U.S. |
Embargo |
A government prohibition of
exports or imports with respect to specific products or specific
foreign countries. |
En Route |
In transit (referring to goods,
passengers, or vessels). |
Entrepot |
An intermediary storage facility
(often in an intermediate country) where goods are kept
temporarily for distribution. |
Entrepot Trade |
The import and export of goods
which receive no further processing but are distributed from the
entrepot facility which is chosen for its location and lack of
restrictions on trade, |
Entry |
1.That documentation required to
be filed with the appropriate customs officer to secure the
release of imported merchandise from customs custody.
2. The act of filing that documentation. |
Entry Documents |
The documents required to complete
customs entry to secure the release of imported merchandise. |
Entry Summary |
(USA) Documentation which is
necessary to enable US Customs to collect duties, collect
statistics, and determine whether other requirements of law or
regulations are met upon importation. In the US, the importer
must classify the goods, determine their customs value, and
calculate duties, taxes and fees. |
Entry Summary System |
(USA) An Automated Customs System
module that automates the entry processing cycle. |
Environmental Protection Agency
(EPA) |
(USA) An independent agency in the
executive branch whose mandate is to control and abate pollution
in the areas of air, water, solid waste, pesticides, radiation,
and toxic substances. |
Equalization |
In transportation, a money
allowance given the customer if the transport company picks up
the goods at origin points or delivers them to destination
points other than those named on the bill of lading. |
Escape Clause |
1. A provision in a bilateral or
multilateral commercial agreement permitting a signatory nation
to change their obligations when imports threaten serious harm
to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting
parties to avoid liability for nonperformance under certain
conditions. |
ETA |
The expected date and time of
arrival of a carrier. |
ETD |
The expected date and time of
departure of a carrier. |
Eurobond |
A bond issued in a Euro-currency,
usually Euro-dollars |
Ex Factory |
This term is still widely used but
it is being replaced by the Incoterm EXW - Ex Works. It is a
sale term where the title to goods passes to the buyer when they
leave the vendor's dock and consequently at that point the
liability for loss or damage and the expenses of shipment also
pass from vendor to buyer. |
Exchange Rate |
The price of one currency
expressed in terms of another. |
Excise Tax |
Taxes on the manufacture, sale, or
consumption of goods, or upon licenses to pursue certain
occupations, or upon corporate privileges. In current usage it
covers various license fees imposed by government and
practically every internal revenue tax from any source except
the income tax. |
Exculpatory Clause |
1. A contractual clause that
releases one party from liability in case of wrong doing by the
other party involved.
2. A contractual clause which excuses a trustee from liability
where he executes a power in good faith. |
Expiry Date |
The "End", specifically: the
cessation; termination by lapse of time as the expiration of a
lease, insurance policy, or statute. Coming to a close or
termination. The expiry date is the date on which these events
occur. It is the last date that options or warrants can be
executed. |
Export |
To send or transport goods abroad
out of a customs territory; to sever them from the mass of
things belonging to one country with the intention of uniting
them to the mass of things belonging to a foreign country. |
Export Broker |
A firm that specializes in
bringing foreign buyers and domestic sellers together for a fee
but usually does not participate in the actual business
transaction. |
Export Control |
The establishment of procedures
for the governmental control of exports for statistical or
strategic purposes. |
Export Declaration |
(USA) The Shipper's Export
Declaration is a required customs document for exportation of
goods from the United States which provides statistics and
facilitates control where applicable. |
Export Draft |
A documentary order in the form of
a draft drawn on the importing party to pay the seller for the
exported goods. |
Export Duty |
A tax imposed by some nations on
their exports. |
Export License |
A license issued to exporters by
governments to permit them to export certain goods to certain
countries. Such goods may be of strategic importance, or simply
in short supply, or are controlled to comply with foreign
agreements. |
Export Management Company |
A private firm that serves as the
export department for several manufacturers and handles the
exporting aspect of the business for a commission or fee. |
Export Merchant |
A company that buys domestic and
foreign products and sells to foreign purchasers. Usually an
export merchant is able to compete because of specialized
knowledge of the products in which they deal, detailed knowledge
of foreign markets, and expertise in international trading
techniques. |
Export Processing Zone |
Industrial parks designated by a
government to provide tax and other incentives to export firms. |
Export Quotas |
Specified maximums which a nation
places on the value or volume of certain of its exports. |
Export Restraints |
Restrictions which a nation places
upon its exports, often to avoid more burdensome restrictions
being applied by the importing nations. |
Export Statistics |
The statistics that cover the
exports from one country to other countries. |
Export Subsidies |
Government payments to induce
exportation by domestic producers. |
Export Trading Company |
A corporation organized for the
principal purpose of exporting goods and services. |
Exporter |
An individual or company that
ships goods from one country to another in the course of trade. |
Exporter Identification Number |
(USA) An identification number
assigned to exporters of goods from the United States which is
required to be shown on the Shipper's Export Declaration for all
shipments from the USA.. |
External Value |
The purchasing power of a currency
abroad, converted using the exchange rate. |
Extradition |
The surrender by one state or
country to another of an individual accused or convicted of an
offense within the jurisdiction of the other. |
EXW (Ex Works ...named place) |
The seller fulfils his obligation
to deliver when he has made the goods available at his premises
(i.e. works, factory, warehouse, etc.) to the buyer. In
particular, he is not responsible for loading the goods on the
vehicle provided by the buyer or for clearing the goods for
export, unless otherwise agreed. The buyer bears all costs and
risks involved in taking the goods from the seller's premises to
the desired destination. |
Easement |
A right to use another person's
property. |
Edge Act Corporations |
Banks that are subsidiaries either
to bank holding companies or other banks established to engage
in foreign business transactions. |
Electronic Commerce |
A system of integrated
communications, data management, and security services that
allow business applications within different organizations to
automatically interchange information. |
Electronic Data Interchange (EDI) |
Electronic transmission of data
and information according to particular protocols . |
Electronic Funds Transfer |
System of transferring funds from
one account to another by electronic means. |
Electronic Meat Health Certificate |
(USA) A demonstration project that
illustrates the electronic transmission of fresh meat health
certificates. |
Electronic Visa Information System
(ELVIS) |
(USA) An electronic data system
via which participating foreign governments transmit
electronically to the U. S. Government details of shipments of
quota controlled textile goods they have made to the U.S. |
Embargo |
A government prohibition of
exports or imports with respect to specific products or specific
foreign countries. |
En Route |
In transit (referring to goods,
passengers, or vessels). |
Entrepot |
An intermediary storage facility
(often in an intermediate country) where goods are kept
temporarily for distribution. |
Entrepot Trade |
The import and export of goods
which receive no further processing but are distributed from the
entrepot facility which is chosen for its location and lack of
restrictions on trade, |
Entry |
1.That documentation required to
be filed with the appropriate customs officer to secure the
release of imported merchandise from customs custody.
2. The act of filing that documentation. |
Entry Documents |
The documents required to complete
customs entry to secure the release of imported merchandise. |
Entry Summary |
(USA) Documentation which is
necessary to enable US Customs to collect duties, collect
statistics, and determine whether other requirements of law or
regulations are met upon importation. In the US, the importer
must classify the goods, determine their customs value, and
calculate duties, taxes and fees. |
Entry Summary System |
(USA) An Automated Customs System
module that automates the entry processing cycle. |
Environmental Protection Agency
(EPA) |
(USA) An independent agency in the
executive branch whose mandate is to control and abate pollution
in the areas of air, water, solid waste, pesticides, radiation,
and toxic substances. |
Equalization |
In transportation, a money
allowance given the customer if the transport company picks up
the goods at origin points or delivers them to destination
points other than those named on the bill of lading. |
Escape Clause |
1. A provision in a bilateral or
multilateral commercial agreement permitting a signatory nation
to change their obligations when imports threaten serious harm
to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting
parties to avoid liability for nonperformance under certain
conditions. |
ETA |
The expected date and time of
arrival of a carrier. |
ETD |
The expected date and time of
departure of a carrier. |
Eurobond |
A bond issued in a Euro-currency,
usually Euro-dollars |
Ex Factory |
This term is still widely used but
it is being replaced by the Incoterm EXW - Ex Works. It is a
sale term where the title to goods passes to the buyer when they
leave the vendor's dock and consequently at that point the
liability for loss or damage and the expenses of shipment also
pass from vendor to buyer. |
Exchange Rate |
The price of one currency
expressed in terms of another. |
Excise Tax |
Taxes on the manufacture, sale, or
consumption of goods, or upon licenses to pursue certain
occupations, or upon corporate privileges. In current usage it
covers various license fees imposed by government and
practically every internal revenue tax from any source except
the income tax. |
Exculpatory Clause |
1. A contractual clause that
releases one party from liability in case of wrong doing by the
other party involved.
2. A contractual clause which excuses a trustee from liability
where he executes a power in good faith. |
Expiry Date |
The "End", specifically: the
cessation; termination by lapse of time as the expiration of a
lease, insurance policy, or statute. Coming to a close or
termination. The expiry date is the date on which these events
occur. It is the last date that options or warrants can be
executed. |
Export |
To send or transport goods abroad
out of a customs territory; to sever them from the mass of
things belonging to one country with the intention of uniting
them to the mass of things belonging to a foreign country. |
Export Broker |
A firm that specializes in
bringing foreign buyers and domestic sellers together for a fee
but usually does not participate in the actual business
transaction. |
Export Control |
The establishment of procedures
for the governmental control of exports for statistical or
strategic purposes. |
Export Declaration |
(USA) The Shipper's Export
Declaration is a required customs document for exportation of
goods from the United States which provides statistics and
facilitates control where applicable. |
Export Draft |
A documentary order in the form of
a draft drawn on the importing party to pay the seller for the
exported goods. |
Export Duty |
A tax imposed by some nations on
their exports. |
Export License |
A license issued to exporters by
governments to permit them to export certain goods to certain
countries. Such goods may be of strategic importance, or simply
in short supply, or are controlled to comply with foreign
agreements. |
Export Management Company |
A private firm that serves as the
export department for several manufacturers and handles the
exporting aspect of the business for a commission or fee. |
Export Merchant |
A company that buys domestic and
foreign products and sells to foreign purchasers. Usually an
export merchant is able to compete because of specialized
knowledge of the products in which they deal, detailed knowledge
of foreign markets, and expertise in international trading
techniques. |
Export Processing Zone |
Industrial parks designated by a
government to provide tax and other incentives to export firms. |
Export Quotas |
Specified maximums which a nation
places on the value or volume of certain of its exports. |
Export Restraints |
Restrictions which a nation places
upon its exports, often to avoid more burdensome restrictions
being applied by the importing nations. |
Export Statistics |
The statistics that cover the
exports from one country to other countries. |
Export Subsidies |
Government payments to induce
exportation by domestic producers. |
Export Trading Company |
A corporation organized for the
principal purpose of exporting goods and services. |
Exporter |
An individual or company that
ships goods from one country to another in the course of trade. |
Exporter Identification Number |
(USA) An identification number
assigned to exporters of goods from the United States which is
required to be shown on the Shipper's Export Declaration for all
shipments from the USA.. |
External Value |
The purchasing power of a currency
abroad, converted using the exchange rate. |
Extradition |
The surrender by one state or
country to another of an individual accused or convicted of an
offense within the jurisdiction of the other. |
EXW (Ex Works ...named place) |
The seller fulfils his obligation
to deliver when he has made the goods available at his premises
(i.e. works, factory, warehouse, etc.) to the buyer. In
particular, he is not responsible for loading the goods on the
vehicle provided by the buyer or for clearing the goods for
export, unless otherwise agreed. The buyer bears all costs and
risks involved in taking the goods from the seller's premises to
the desired destination. |
F |
Facilitation |
1. Programs designed to expedite
the flow of international commerce.
2. The act of freeing more or less completely from obstruction
or hindrance. |
Factor |
1. An agent who receives
merchandise under consignment or under a bailment contract, who
sells it for the principal or in the factor's own name, and who
is paid a commission for each sale.
2. A financing company which purchases accounts receivable under
agreed conditions and at agreed discounts and thus makes funds
immediately available to approved sellers. |
Factor's Lien |
The right of a factor to retain
possession of designated assets of the principal until the
factor receives full compensation from the principal. |
Factorage |
The commission or other
compensation paid to a factor. |
Fair Value |
(USA) In dumping evaluations, it
is the price at which the items being reviewed should have been
sold in the home market in order to be considered as goods
offered for export in the usual course of trade at fair market
value and not guilty of being dumped. |
FAS (Free Alongside Ship...named
port of shipment) |
The seller fulfils his obligation
to deliver when the goods have been placed alongside the vessel
on the quay or in lighters at the named port of shipment. The
buyer has to bear all costs and risks of loss or of damage to
the goods from that moment. |
FCA (Free Carrier...named place) |
The seller fulfils his obligation
to deliver when he has handed over the goods, cleared for
export, into the charge of the carrier named by the buyer at the
named place or point. |
FDA |
Food And Drug Administration. |
Federal Reserve System |
(USA) The equivalent of the
central bank of the USA and the coordinator of monetary policy. |
Feeder Vessel |
A vessel which is part of a cargo
network in which the larger, faster vessels only call at the
major ports at both ends of the area being covered, and the
smaller ports are served by the smaller feeder vessels which
transfer the cargo to and from the major port terminals and thus
keep the larger vessels filled closer to capacity and spare them
the expense and loss of time in loading and unloading in the
subsidiary ports. |
FEU |
Forty foot equivalent units of
shipping containers. (Two 20 ft containers = 1 FEU). |
Financial Instrument |
A document which has a monetary
value or is evidence of a monetary transaction, such as drafts,
bills of exchange, checks and promissory notes. |
Financial Market |
Market for the exchange of capital
and credit in an economy. |
First World Countries |
"Western, industrialized,
non-communist countries," was the previously accepted criteria,
but in view of the emergence of Japan as an economic power and
the rising status of Russia and China, "industrialized" is
probably the only remaining valid criterium for a "First World
Country" at this time. |
Five Dragons |
Term used to describe the emerging
economies of Hong Kong, Singapore, South Korea, Taiwan, and
Thailand. |
Fixed Charges |
1. Charges which do not increase
or decrease with a change in volume.
2. Expenses that have to be borne whether any business is done
or not. |
Fixed Exchange |
1. When Governments or their
Central Banks administratively set the exchange rate for their
currency.
2. An administratively set exchange rate where no rate
fluctuations are permitted. |
Fixing |
The setting of a price by a known
method at regular times. For example, the establishment of an
official exchange rate, interest rate, or security or commodity
price. |
Flag |
A reference to the country of
registry of a vessel. |
Flag of Convenience |
The national flag flown by a ship
that is registered in a country other than that of its owners.
(Usually arranged in order to save taxes and operating expenses) |
Flight of Capital |
The movement of capital to another
country to avoid loss. |
Floating |
Free determination of rates based
on supply and demand, for example exchange rates or interest
rates. |
Flotsam |
Floating debris or wreckage of a
ship and its cargo. |
FOB (Free On Board ... named port
of shipment) |
The seller fulfils his obligation
to deliver when the goods have passed over the ship's rail at
the named port of shipment. The buyer has to bear all costs and
risks of loss or damage to the goods from that point. |
Force Majeure |
A condition of superior or
irresistible force such as Acts of God, including earthquakes
and floods, which cannot be avoided by the exercise of due care
and is included in contracts to excuse parties from performance
when such events occur. |
Foreign Bond |
An international bond usually
denominated in the currency of the country where it is issued. |
Foreign Commerce |
Trade between individuals or legal
entities in different countries. |
Foreign Currency |
The currency of any foreign
country which is authorized by that country as the medium of
circulation. |
Foreign Exchange |
Currency of countries exchangeable
for other currencies according to their relative values based on
supply and demand. |
Foreign Exchange Contract |
A contract for the sale or
purchase of the currency of one country to be paid for with the
currency of another country, specifying an amount, an exchange
rate, and delivery date. |
Foreign Exchange Rate |
The rate or price of the currency
of one country in terms of the currency of another. |
Foreign Exports |
1. (USA) Exports from the United
States of foreign origin merchandise. (for the purposes of USA
export statistics)
2. Exports by other countries.. |
Foreign Flag |
The national identification of a
carrier registered in a foreign country. A vessel flies the
national flag of the country in which it is registered, and it
may be registered in a country different from that of its owner. |
Foreign Income |
Income gained by residents of one
country from another country. |
Foreign Investment |
The purchase of assets which are
abroad. |
Foreign Market Value |
From the American point of view it
is the price at which merchandise is sold at wholesale in the
principal markets of the country from which it is exported. |
Foreign Parent |
The first foreign person or entity
outside the United States in an affiliate's ownership chain that
has direct investment in the affiliate. |
Foreign Person |
1. A person belonging to or under
citizenship of another country.
2. Using the United States as an example, a person who resides
outside of the United States or is subject to the jurisdiction
of another country other than the United States is a "foreign
person". |
Foreign Remittances |
The transfer of any funds across
national boundaries. |
Foreign Trade Zone Act (FTZA) |
(USA) The act which established
foreign trade zones in the USA. |
Forward Foreign Exchange |
An agreement to purchase or sell
an amount of foreign currency at a future date at a
predetermined price. |
Foul Bill of Lading |
A bill of lading issued with
notations on it which limit the carrier's liability; for
example, a notation that the goods were received damaged, or
short, or improperly packaged. |
Fractional Currency |
Any currency that is smaller than
a standard money unit. |
Franco |
Free from duties, transportation
charges and other levies. |
Free Domicile |
"Free Domicile" is still a widely
used pricing term to describe when the shipper pays all the
applicable duties and all the transportation and other charges
until delivered to the buyer's premises. The term is being
replaced by Incoterm "DDP - Delivered Duty Paid ... named point
of destination." |
Free In and Out |
A pricing term indicating that the
vessel operator is responsible for the cost of loading and
unloading. |
Free List |
A schedule of items in a customs
tariff that are not subject to the payment of duties. |
Free Market |
A market in which there is
unrestricted trading of goods with prices determined by supply
and demand. Internationally, there is an unrestricted movement
of goods in and out , and it is unhampered by the existence of
tariffs or other trade barriers. |
Free Port |
An area where imported goods may
be brought without payment of duties. |
Free Time |
1. The time allowed shippers and
receivers to load or unload rail cars before demurrage or
detention.
2. The time allowed consignees to take physical delivery of
cargo before storage or demurrage is assessed. |
Free Zone |
An area within a country (a
seaport, airport, warehouse or any designated area) regarded as
being outside its customs territory where importers may bring
goods of foreign origin without paying customs duties and taxes,
pending their eventual processing, transshipment or
re-exportation. |
Free-Astray |
A shipment or part of a shipment
which has been dropped off at a wrong location by a carrier |
Freight |
1. All merchandise, goods,
products, or commodities shipped by rail, air, road, or water,
other than baggage, express mail, or regular mail.
2. The compensation paid for the transport of goods. |
Freight Charge |
The charge assessed for
transporting cargo. |
Freight Claim |
1. A demand upon a carrier for the
repayment of overcharge.
2. A demand upon a carrier for cargo loss or damage. |
Freighter |
A ship or airplane used primarily
to carry cargo. |
Fungibles |
Goods that, for commercial
purposes, are identical with other goods and interchangeable in
all situations. |
Futures Contract |
A contract for the future delivery
of a specified commodity, currency or security on a specific
date at a rate determined in the present. |
G |
Gang |
Maritime: A group of longshoremen
under a supervisor who are assigned to load or unload a portion
of a vessel. |
Gangway |
1. The opening through which a
ship is boarded.
2. A platform connecting quarterdeck and forecastle of a ship. |
Gantry Crane |
A specialized crane which travels
on a structure which can span a wide area and raises and lowers
cargo. Some of them span the deck of a vessel. |
Gateway |
1. A major airport or seaport;
2. or the port where customs clearance takes place;
3. or a point at which freight moving from one territory to
another is interchanged between transportation lines. |
Geisha Bond |
Bond issued on the Japanese market
in currencies other than yen. |
General Agreement On Tariffs And
Trade (GATT) |
Both a multilateral trade
agreement aimed at expanding international trade and the
organization which oversees the agreement. The main goals of
GATT are to liberalize world trade and place it on a secure
basis thereby contributing to economic growth and development
and the welfare of the world's people. The organization, GATT,
has been succeeded by the World Trade Organization (WTO). |
General Average |
1. loss that affects all cargo
interests on board a vessel as well as the ship herself.
2. An internationally accepted rule of the sea which says when a
peril threatens the survival of the ship, there may be
sacrificed (thrown overboard) any cargo or supplies or ships'
furnishings, and any expense incurred necessary to save the
ship. If the vessel is saved, all cargo owners, ship owner, and
owners of the freight revenue share pro rata in the loss. |
General Cargo Rate |
The rate a carrier charges for the
transportation of cargo which does not qualify for a lower
special class or commodity rate in the carrier's tariff. |
General Cargo Vessels |
A vessel designed to handle
breakbulk cargo such as bags, cartons, cases, crates and drums,
either individually or in unitized or palletized loads. |
General Commodity Rate |
In a maritime tariff, a freight
rate applicable to all commodities except those for which
specific rates have been filed. |
General Imports |
The total physical arrivals of
merchandise into one country from foreign countries during a
period of time.. |
General Liability |
Unlimited responsibility for an
obligation, such as payment of debts of a business. |
General Order |
(USA) The customs requirement that
goods not cleared within a specific number of days after arrival
of the carrier must be taken into custody of customs and
deposited in a warehouse at the risk and expense of the
consignee. |
General Order Warehouse |
(USA) A bonded warehouse
authorized by customs to store goods sent to General Order. |
General Partnership |
A partnership where all partners
have joint ownership. They share the profit, losses and
management equally and each has personal liability for all the
debts. |
General Tariff |
A tariff that applies to countries
that do not enjoy either preferential or most favored nation
tariff treatment. |
Generalized System Of Preferences
(GSP) |
A program providing for free rates
of duty for merchandise from beneficiary developing independent
countries and territories to encourage their economic growth. |
Global Bond |
A bond that can be traded in any
United States capital market and in the Euromarket with special
arrangements made for transferability between the markets. |
Global Quota |
A quota set by a nation on the
total imports of a product from all countries. |
Gold Exchange Standard |
A monetary system adopted by some
countries which did not have enough gold to go onto the gold
standard so they deposited their gold with one of the leading
gold standard countries and made their currency more or less
freely convertible to the currency of that country. |
Gold Reserves |
Gold retained by a nation or its
central banks contributing to the nation's creditworthiness in
the issuance of bonds and currency, although there may be no
commitment by it to exchange gold for its currency. |
Gold Standard |
A monetary system whereby every
form of currency issued by a country is convertible on demand
into its legal equivalent in gold or gold coin |
Gondola Car |
An open railway car with sides and
ends, used principally for hauling coal, sand, etc. |
Goods |
Merchandise; supplies; raw
materials; wares; commodities; products. The meaning may vary in
various situations but for purposes of a contract for storage or
transportation, or with reference to collateral for security, it
means all things treated as movable. |
Grantee |
1. One to whom a grant is made; a
grant being the giving or permitting as a right or privilege, an
authority, a power, a license, or a property.
2. (USA) As to foreign trade zones in the US, a corporation to
which the privilege of establishing, operating, and maintaining
a foreign trade zone has been granted by the Foreign Trade Zone
Board. |
Green Card |
A popular name for an identity
card (visa) issued by the U.S. Immigration and Naturalization
Service entitling a foreign national to enter and reside in the
United States as a permanent resident. |
Grid |
Fixed margin within which exchange
rates are allowed to fluctuate. |
Gross |
1. 12 dozen or 144 articles.
2. Total (as in "Gross Weight".) |
Gross Domestic Product |
A measure of the market value of
all goods and services produced within the boundaries of a
nation. It excludes income from external enterprises or
investments. |
Gross National Product |
A measure of the market value of
all goods and services produced within the boundaries of a
nation plus receipts from foreign business activities and
investments beyond the national boundaries. |
Gross Weight |
The total weight of a package or a
shipment, including goods and packaging. |
H |
Hallmark |
1. Originally an impression made
on gold and silverware introduced in the beginning of the
fourteenth century in England to identify the quality of the
metal used. Later, a mark to identify the maker and year of
production.
2. Figuratively, a distinguishing characteristic. |
Harbor Fees |
Charges assessed to users for use
of a harbor, used generally for maintenance of the harbor. |
Harbor Master |
An officer who is commander of
harbor activities and directs the berthing, etc. of ships in a
harbor. |
Hard Loan |
A foreign loan that must be paid
in hard money. |
Hard Money |
Currency of a nation having
stability in the country and a reputation abroad for economic
strength, and as a result it has wide and ready acceptability on
world markets. |
Harmonized System (HS) |
A multipurpose international goods
classification system designed to be used by manufacturers,
transporters, exporters, importers, customs, statisticians, and
others in classifying under a single commodity code goods moving
in international trade. |
Harmonized Tariff Schedule of the
United States (HTSUS) |
(USA) An organized listing of
goods and their duty rates which is used as the basis for
classifying imported products and identifying the rates of duty
to be charged on them. It is based on the international
Harmonized System Convention. |
Harter Act |
(USA) An 1893 Federal Statute
regarding ocean bills of lading and limitation of some carrier
liabilities. It has been substantially superseded by the
Carriage of Goods by Sea Act of 1936 and others. |
Hatch |
The opening in the deck of a
vessel which gives access to a cargo hold. |
Haulage |
1. The local transport of goods.
2. Also the charge(s) made for hauling freight on carts, drays
or trucks.
3. Also called cartage or drayage. |
Hazardous Materials
|
A substance or material which has
been determined to be capable of posing an unreasonable risk to
health, safety, and property when transported in commerce. |
Heavy Lift |
Any article deemed by rules in a
vessel's tariff to be beyond a certain weight. It may be too
heavy for the ship's tackle and require special equipment such
as a floating crane. |
Heavy Lift Charge |
In a maritime tariff, a charge
made for lifting heavy articles to load or unload them. |
Heavy Lift Vessel |
A vessel with heavy lift cranes
and other equipment designed to be self-sustaining in the
handling of heavy cargo. |
Hedge |
To reduce one's risk of loss by
compensating transactions on the other side. For example, buy
goods for future delivery priced in a foreign currency. Hedge by
buying the foreign exchange needed at the rate then in effect.
Or, another way of hedging is to buy a forward exchange
contract. In both cases the buyer will have a known cost in its
own currency. This is a hedge against the risk of foreign
exchange fluctuation; it is not a hedge against a change in the
price of the goods. |
Hedge Ratio |
The amount of future exchange
contracts, options, or underlying financial instruments,
purchased or sold against a position to accomplish a hedge of
the position. |
High Density |
High density cargo is cargo whose
weight is high compared to its volume. A vessel tariff in which
freight is charged according to weight or volume, whichever
yields the highest freight charge, will result in high density
freight being charged on a weight basis. |
Hitchment |
In maritime situations, if the
tariff of the steamship company provides for it, portions of a
shipment originating in different places may be joined together
under one bill of lading from one shipper to one consignee at
one destination. |
Hold |
1. The interior of a vessel below
deck where cargo is carried.
2. to delay; to pause (verb); a delay; a pause (noun).
3. A verb with multiple other meanings than those noted above
such as: to retain, to contain, to maintain, to bind, to bear,
to own. |
Hold For Pickup |
Freight to be held at the
carrier's destination location for pickup by the recipient. |
Hold Harmless Contract |
An agreement by which one party
accepts responsibility for all damages and other liability that
arise from a transaction, relieving the other party of any such
liability. |
Honor |
To accept a bill of exchange; or
to pay a note, check or draft at maturity. |
Horizontal Export Trading Company |
An export trading company which
exports a range of similar or identical products supplied by a
number of manufacturers who may be competitors on the domestic
market. |
House Air Waybill |
1. A bill of lading issued by a
freight forwarder for consolidated air freight shipments.
2. An airwaybill issued by an airfreight forwarder by which the
forwarder assumes the risk and obligations of being "the
carrier." |
House-To-House |
A shipping term indicating that a
container will be offered by the carrier for use by the shipper
and the receiver for the transport of the contents from the
domicile of one to the domicile of the other, but the carrier
only contracts to transport the loaded container from terminal
at origin to terminal at destination.(usually called C/Y to C/Y
- container yard to container yard.) |
Hub And Spoke Routing |
Air cargo routing pattern that
feeds traffic from many places to a central airport where it is
sorted and rerouted on other aircraft to final destinations. |
Hull |
The outer shell of a vessel. |
Hump |
An essential feature of a railcar
sorting yard . The "hump" is that part of the track which is
elevated so that when a car is pushed up on it and uncoupled, it
runs down the other side by gravity and is switched onto the
siding where a train is being made up for the desired
destination. |
Hundredweight Pricing |
In transportation, special pricing
for multiple-piece shipments (weighing over 100 pounds in total)
traveling to one destination, which are rated on the total
weight of the shipment as opposed to rating on a per package
basis. |
I |
Irrevocable Corporate Purchase
Order |
A purchase order completed by a
buyer on corporate letter head indicating type and quantity of
products being ordered from a supplier. |
Identical Merchandise |
(USA) For U.S. Customs purposes of
appraisement, identical merchandise means merchandise identical
in all respect to and produced in the same country and by the
same person as, the merchandise being appraised. |
Immediate Delivery(ID) |
(USA) In certain circumstances,
merchandise may be released by U. S. Customs under a special
permit for immediate delivery with entry summary (details) and
duty to be submitted subsequently. It is a procedure principally
utilized along the land borders. |
Immediate Transportation Entry |
(USA) A form of U.S. Customs entry
which allows imported merchandise to be transported under bond
to another port for customs clearance thereat. |
Immigration |
The entry of foreign nationals
into a country for the purpose of establishing permanent
residence. |
Implied Conditions |
Certain implied conditions are not
written into marine insurance policies, but they are so basic to
the understanding between the underwriter and the assured that
the law gives them much the same effect as if written. (In many
other types of contracts there also may be "implied conditions,"
for example a seller of goods implies that they are fit for the
purpose they purport to serve.) |
Import |
The act of bringing or causing any
goods to be brought into a customs territory. |
Import Credit |
A commercial letter of credit
issued for the purpose of financing the importation of goods. |
Import Duty |
Customs duty which is collected on
in connection with the importation of goods. |
Import License |
An import license (or import
permit) is an authorization by a competent authority for the
importation of goods which are subject to restriction. |
Import Quota |
A protective device establishing
limits on the quantity of a particular product that may be
imported into a country. |
Import Quota Auctioning |
The process of auctioning the
right to import specified quantities of quota-restricted goods. |
Import Relief |
Any of several measures imposed by
a government to temporally restrict imports of a product or
commodity to protect domestic producers from competition. Or,
any of several measures to strengthen domestic producers such as
subsidies, educational assistance to workers, training
assistance to workers, low interest loans to producers, tax
relief to producers etc. |
Import Restrictions |
Any one of a series of tariff and
non-tariff barriers imposed by an importing nation to control
the volume of goods coming into the country from other
countries. |
Import Sensitive Producers |
Domestic producers whose economic
viability is threatened by competition (quality, price or
service) from imported products. |
Import Substitution |
A national economic strategy to
build up a domestic economy by emphasizing the replacement of
imports by domestically produced goods. |
Importer |
The individual, firm or legal
entity that brings goods, or causes goods to be brought from a
foreign country into a customs territory. |
Importer Number |
(USA) An identification number
assigned by the U.S. Customs Service to each importer to track
entries and other transactions. In most cases the Taxpayer's
Identification Number assigned by the Internal Revenue Service
is the number also used by Customs. |
Imports |
Goods brought into a customs
territory. |
Imports For Consumption |
The total of merchandise that has
physically cleared through the customs of a country either
entering domestic consumption channels immediately or entering
after withdrawal for consumption from bonded warehouses or from
foreign trade zones. |
Impost |
1. A tax, especially an import
duty.
2. To classify an impost in order to fix the duty. (rarely
used). (Note: an imposter is one who imposts. Another definition
of an imposter is a "pretender" but that is not the meaning
intended here.).) |
Impound |
To seize or hold; or to place in
custody by order of a court. |
In Bond |
(USA) A procedure under which
goods are transported, stored, or handled, prior to clearance
and release by customs, and the government's interest is secured
by indemnity bonds. |
In Bond Shipment |
An import or export shipment which
has not been cleared by Customs and is transported, stored, or
handled with security to the government provided by indemnity
bonds. |
In-Bond System |
(USA) A part of U.S. Customs'
Automated Commercial System, controls merchandise from the point
of unloading at the place of arrival, while handled or
transported further in bond, until customs cleared. |
Incentive |
A motivational force that
stimulates people to greater activity or increased efficiency. |
Income |
Money or its equivalent, earned or
accrued, arising from the sale of goods or services. |
Incoterms |
An abbreviation of "International
Commercial Terms" published by the International Chamber of
Commerce. It is a set of rules for the interpretation of the
most commonly used trade terms in foreign trade which parties to
a contract can agree upon to avoid misunderstandings, disputes
and litigation. |
Indemnify |
1. To compensate for actual loss
sustained.
2. To give security for the reimbursement of a person in case of
an anticipated loss falling upon him. |
Indemnity |
1. A compensation to make a person
whole from a loss already sustained.
2. A contract or assurance by which one engages to secure
another against an anticipated loss. |
Independent Action |
The right of a conference member
to depart from the common freight rates, terms or conditions of
the conference without the need for prior approval of the
conference. |
Indexed |
In finance this term means
"measured by" and/or "adjusted according to," thus an interest
rate on a note may be, by agreement, "indexed" i.e. adjusted
according to the market at time the interest is due. Or a note
denominated in a foreign currency may have its exchange rate
"indexed," adjusted according to the market rate in effect at
the time of payment. |
Indexed Currency Borrowings |
Borrowings in a foreign currency
where the rate of interest is linked to an agreed scale, and/or
the rate of exchange at repayment is linked to an agreed scale. |
Indexed Currency Option Note |
Note denominated and paying
interest in one currency but whose redemption value is linked to
an exchange rate for another currency. |
Industrial List |
(USA) The Coordinating Committee
for Multilateral Export Controls industrial list contains
dual-use items (usable for military or nuclear purposes in
addition to normal commercial uses) and as a result whose export
is controlled for strategic reasons. |
Industrial Policy |
Encompasses traditional activist
governmental policies intended to provide a favorable economic
climate for the development of industry in general or specific
industrial sectors. |
Infant Industry Argument |
The view that "temporary
protection" for a new industry or firm in a particular country
through tariff and non-tariff barriers to imports can help it to
become established and eventually competitive in world markets,
in which case the protective measures will no longer be needed. |
Inflation |
Loss of purchasing power of money
caused by growth of the amount of money in circulation and
reflected in a rise in prices without a proportionate increase
in value of the things purchased.. |
Informal Entry |
(USA) A simplified import entry
procedure accepted at the option of Customs for any baggage or
commercial shipment that does not exceed a specified value. |
Informed Compliance |
(USA) A term that describes the
improved ability of a entity to comply with Federal rules and
regulations through easy access to up-to-date information. |
Infrastructure |
The institutions and fundamental
organizations which support the basic structure of a nation's
economy, among these are: the educational system, the
transportation systems, the banking system, the public
utilities, the water supply system, the sanitation system, the
health maintenance network, the public security and safety
systems, the communication systems, the postal system etc. |
Inherent Vice |
The inherent physical properties
of goods which may cause them to suffer deterioration or damage
without outside influence. (For example: spontaneous combustion,
rust etc.) |
Injury |
1. (USA) A finding by the U.S.
International Trade Commission that an import is causing harm
(material injury) or threatening to cause harm (material injury)
to a U.S. industry...(If caused by sales to the U.S. at "less
than fair value", it may be considered "dumping" and trigger
"antidumping duties", or if it is caused by foreign subsidies or
bounties, it may trigger "countervailing duties").
2. A wrong or damage done to another, either in his person,
rights, reputation, or property.
3. The invasion of any legally protected interest of another. |
Inland Bill of Lading |
A bill of lading used in
transporting goods overland. |
Inland Carrier |
A transportation line which hauls
cargo inland: truck, rail, barge, inland waterways, or domestic
airline flights. |
Inspection Certificate |
A document describing the
condition of goods and confirming that they have been inspected. |
Instrument |
Any written document that gives
formal expression to a legal agreement or act. |
Integrated Cargo Service |
A blend of all segments of the
cargo system providing the combined services of carrier,
forwarder, handlers, and agents, utilizing all forms of
transport. |
Integrated Carriers |
Carriers that have multiple
varieties of fleets (i.e. air and ground, truck and rail, etc.). |
Intellectual Property |
Non-tangible property that is the
result of creativity such as copyrights and patents. |
Interbank Dealings |
Dealings between banks. |
Interchange Agreement |
An agreement that specifically
lays out the terms of leasing or temporarily borrowing equipment
from a carrier. A frequent use of an interchange agreement is
between an ocean carrier and a trucking company when the
trucking company takes a container from the pier for delivery to
the consignee. |
Interchange Point |
A location where one carrier
delivers freight to another carrier. |
Interline Shipping |
The movement of a single shipment
on two or more carriers. |
Intermodal Compatibility |
The physical capability of a
shipment of goods to be transported from one form of
transportation to another. |
Intermodal Transport |
Coordinated transport of freight
using multiple methods of transportation. |
International Trade |
The business of buying and selling
commodities beyond national borders. |
International Trade Data System |
A proposed electronic system that
would integrate the different government trade and
transportation data processes into a system that provides a
standard means of gathering, processing, storing and
disseminating import and export trade data. See IT06.
|
Interstate Carrier |
(USA) A common carrier whose
business extends beyond the boundaries of one state. |
Interstate Commerce |
(USA) Trade, transport, and
communication between or among the several states of the United
States. |
Invisible Barriers to Trade |
Government regulations (national
and local), and cultural conditions that do not directly
restrict trade but hinder it with excessive and obscure
requirements. |
Invisible Trade Balance |
The balance of trade reflecting
the import and export of services. |
Invoice |
A written account or itemized
statement, usually on a printed form with the name and address
of the seller, listing merchandise sold or shipped to a
purchaser, consignee, factor etc., showing their name and
address, and containing a description of the merchandise, the
quantity, values or prices and charges, and other significant
details of the transaction such as the terms of sale and the
currency of the purchase. |
Inward Foreign Manifest (IFM) |
(USA) A U.S. Customs mandated
document requiring the complete listing by bill of lading number
or airwaybill numbers of an arriving carrier's cargo. It should
give the commercial particulars of the goods including:
consignors, consignees, marks and numbers, number and kind of
packages, their weights or measures, descriptions and quantities
of the goods, their port of loading and intended port of
discharge. |
Irrevocable Letter of Credit |
A letter of credit which cannot be
amended or canceled without prior mutual consent of all parties
to the credit. |
Issuance |
1. The execution, validation, and
tender of delivery of a contract or financial instrument to the
appropriate party.
2. The act of sending forth, promulgating, or the giving of a
thing its first inception. The first delivery of an instrument
to a holder or remitter. |
Issuance Date of the Documents |
The date indicated on documents as
their date of preparation, subject to correction when necessary
as noted above under the term "issuance" and under the
definition of "Date of Issue" elsewhere in this glossary. |
IT06 |
An initiative calling for the
development of an international trade data system sponsored by
the US Government that will meet the needs of Federal agencies
involved in international trade as well as the trade information
needs of businesses and the general public. |
J |
Jetsam |
Articles from a ship or ship's
cargo that were thrown overboard, (usually to lighten the load
in times of emergency or distress.). The articles may sink or be
washed ashore. |
Jettison |
The act of throwing overboard at
sea part of a vessel's paraphernalia or cargo or hull - usually
in hopes of saving the ship from sinking. |
Joint Agent |
A person having authority to
transact business for two or more principals . In transportation
it is a common occurrence. |
Joint And Several Liability |
Liability for damages imposed on
two or more individuals or legal entities who are responsible
together and individually, allowing the party harmed to seek
full remedy against all or any number of the wrongdoers. |
Joint Rate |
A single freight rate on cargo
moving via two or more carriers who then share the income.. |
Joint Stock Company
|
An unincorporated business
enterprise with ownership interests represented by shares of
stock. Also a joint Stock Association. |
Joint Venture |
A combination of two or more
individuals or legal entities who undertake together a
transaction for mutual gain or to engage in a commercial
enterprise together with mutual sharing of profits and losses. |
Jurat |
A statement signed by a person
authorized to take oaths certifying to the authenticity of a
document or affidavit. |
Juristic Act |
Action intended to, and capable of
having, a legal effect, such as the creation, termination, or
modification of a legal right. |
Just In Time |
The principle of production and
inventory control that prescribes precise controls for the
movement of raw materials, component parts and work-in-progress.
Goods are expected to arrive when needed for production rather
than arriving prior to need and becoming inventory, |
K |
Keelage |
The charges paid by a ship
entering or remaining in certain ports. |
Key Currency |
A major currency in the global
economy. Key currencies include the U.S. dollar, the British
pound sterling, the German mark, the Swiss franc, the French
franc, the Dutch guilder, the Japanese yen and the Canadian
dollar. |
Kiosk |
A small structure suitable for use
as a newsstand, display stand, bandstand, study stand etc. |
Knocked Down |
An article disassembled, or
unassembled, or taken apart, or folded, or telescoped to reduce
its bulk; subject to easy assembly. This is usually done to
reduce the dimensions of the shipping package and thereby to
save transportation and storage costs. |
Known Loss |
1. loss discovered before or at
the time of delivery of a shipment.
2. An evident loss (as opposed to a concealed loss or damage to
contents within a package.)
3. A loss of which the insured and/or the insurer is aware at
the time the insurance is effected. |
L |
Laissez-faire |
A term used to describe minimal
governmental involvement in an economy, allowing market forces
and individuals to make their own decisions, with little or no
regulation. |
Landbridge |
The movement of cargo (usually in
containers) from one foreign country by vessel, transiting
another country by rail or truck, and then being loaded aboard
another vessel for delivery to the destination country. The
movement across the country from port to port is the
"landbridge" portion of the transportation. |
Lanham Act Of 1947 |
Federal legislation governing
trademarks and trademark registration. |
Lay Order |
The period during which imported
merchandise may remain at the place of unloading without some
action being taken for its disposition. |
Lead Time |
That period of time needed to
prepare for an action. |
Legal Entity |
Any individual, proprietorship,
partnership, corporation, association, or other organization
that has, in the eyes of the law, the capacity to make a
contract or an agreement, and the ability to assume an
obligation and to discharge an indebtedness. |
Legal Tender |
Any money that is recognized as
being lawful for use by a debtor to pay a creditor, who must
accept same in the discharge of a debt unless the contract
between the parties specifically states that another type of
money is to be used. It is that money which is lawful for the
payment of all debts, public and private, public charges, taxes,
duties and dues. |
Less Than Truckload |
A shipment which does not
completely fill a truck or which weighs less than the weight
required for the application of the truck load freight rate
(which is usually a lower freight rate than applied to
less-than-truckload cargo.) |
Letter Of Assignment |
A document with which the assignor
assigns its rights to a third party, the assignee. |
Letter Of Credit
|
A commitment, usually by a bank on
behalf of a client, to pay a beneficiary a stated amount of
money under specified conditions. |
Letter of Indemnity |
A document which the writer issues
to another party agreeing to protect them from liability for the
performance of certain acts.
1. In the case of international transportation when a negotiable
bill of lading has been issued but is not available for
surrender to the carrier when it is desired to take delivery of
the shipment, a bank may issue a letter of indemnity to the
carrier to persuade them to release the cargo. (A Letter of
Guarantee may also be used ). The bank will usually obtain a
similar letter from its client to protect itself against the
liability it assumes on behalf of the client.
2. On export shipments, some carriers may permit shippers to
issue letters of indemnity to the carriers in order to secure
from them clean bills of lading in place of foul, or to replace
lost original bills of lading. |
Letter of Intent |
A document that describes the
preliminary understanding between parties who intend to make a
contract or join together in another action. |
Licensing Agreement |
The issuance of a license
permitting the use of patents, trademarks, or other technology. |
Lift Van |
A wooden or metal container used
for packing household goods and personal effects. |
Lighter |
A barge towed by a tugboat and
used mainly in harbors and inland waterways for the transport of
cargo to and from ships. Some may be self-powered, |
Lighter Aboard Ship |
Some ships are constructed to
carry special barges (lighters). These barges can go to smaller
docks, go into inland waterways, load cargo at those places, and
then carry it back to the ship which lifts the barges aboard,
with their cargo, and transports them overseas. Discharge of
cargo is accomplished in the same manner. |
Lighterage |
The loading or unloading of a ship
by means of a lighter (barge), especially when shallow waters
prevent an ocean going vessel from approaching a berth, or if
berths are unavailable. |
Limitation Period |
A maximum period set by a statute
within which a legal action can be brought or a right enforced.
. |
Limited Liability |
1. Restricted liability for
obligations.
2. (USA) Limitation of Liability Act. A U.S. statute which
permits a shipowner to restrict his liability to whatever value
his ship has after an event such as a sinking or collision. |
Limited Partnership |
A partnership in which at least
one of the partners is a general partner who conducts the
business and has personal liability for the partnership debts,
and at least one of the other partners is a special partner who
shares in the profits and losses but their liability is limited
to the sum they contribute to the partnership. |
Line Haul |
The direct movement of freight
between two major ports by a single ship. |
Line Haul Vessel |
A vessel which is on a regularly
defined schedule between ports, |
Line Release System |
(USA) A separate part of the U.S.
Customs' Automated Commercial System used for truck traffic
along the land borders designed for the release and tracking of
shipments through the use of personal computers and bar code
technology. |
Liner |
A vessel carrying passengers and
cargo that operates with a fixed schedule on a particular route. |
Liner Terms |
Conditions under which a shipping
company will transport goods, including in the amount payable
for freight the cost both for loading and discharge of the cargo
from the vessel. |
Liquidated Damages |
A sum of money that a contracting
party agrees to pay to the other party for breaching an
agreement. |
Liquidation |
1. The act or process of settling
or making clear, fixed and determined.
2. The winding up and settlement of a debt.
3. The winding up of the financial affairs of a business.
4. (USA) The final computation or ascertainment of the duties
accruing on an entry. |
Liquidation System |
(USA) A part of U.S. Customs'
Automated Commercial System, which closes the file on each
entry. |
Liquidity |
1. The availability of liquid
funds in an economy.
2. The status or condition of a person or business in terms of
its ability to convert its assets into cash and to meet its
obligations.
3. The capacity of a market in a particular security or
commodity to withstand an unusual amount of buying or selling
without affecting the market substantially. |
Lloyds Of London |
An English association of
insurance underwriters, the oldest of its kind in the world. Not
in itself an insurance company. |
Lloyds Registry |
An English society, independent of
Lloyds of London, which surveys and classifies the ships of the
world according to their description, condition, seaworthiness,
and compliance with codes and protocols. Also establishes
standards for maintenance and construction. (Correct name is:
Lloyds Register of Shipping.) |
Loading |
The physical placing of cargo into
a truck, a shipping container, or onto a vessel. |
Longshoreman |
A laborer who loads and unloads
ships, handles cargo and containers at shipping terminals, and
loads and unloads containers at shipping terminals. |
Lot Labels |
Labels attached to each piece of
multiple lot shipment for identification purposes. Each lot
label will carry the same number (the lot number) There may also
be a consecutive number on each label to separately identify
each package. |
Lower Deck Containers |
Carrier owned containers specially
designed as an integral part of the aircraft to fit in the cargo
compartments of a wide body aircraft. These compartments are on
the lower deck of the aircraft below where the passengers sit. |
M |
Macroeconomics |
The study of large scale economic
factors affecting an economy as a whole. |
Mail Entry |
A means of shipping and entering
goods into a Customs Territory through the postal system. |
Mala Fides |
In bad faith. (A seller's
representation that goods are usable for a particular purpose
when in fact the seller knows that the goods are not.) |
Manifest |
1. A document listing and
describing the cargo contents of a carrier, container or
warehouse.
2. Evident to the senses, especially to the sight, obvious to
the understanding, evident to the mind, open, clear, visible,
unmistakable, indubitable, indisputable, self-evident. |
Manufacturer's Identification
Number (MID) |
(USA) An identification number
used by U. S. Customs in its electronic data processing system
for each manufacturer whose goods are shipped to the United
States. |
Maquiladora |
A Mexican factory, usually located
in a zone close to the US border, which has special privileges
from the Mexican government to produce goods for the US market.
Much of the work performed in these factories is the assembly of
imported components. |
Margin |
1. In commercial terms the
difference between the cost of goods sold and the total net
sales price.
2. The purchase of a stock or a commodity with payment of only
part of the purchase price in cash (called the margin) and the
balance by loan (usually made by the broker.) |
Marginal Cost |
The increase in the total costs of
a producer of producing one more unit of output, or the decrease
in producing one less unit of output. |
Maritime |
Business pertaining to commerce or
navigation by sea. |
Market Access |
The openness of a national market
to foreign products and services. |
Market Disruption |
A situation where a surge of
imports of a certain product causes a sharp decline in the
domestic sales of that product and creates a hardship for
domestic producers. |
Market Economy |
An economic system where resources
are allocated and production of goods determined by market
forces rather than by government decree. |
Market Price |
The price established in the
market where buyers and sellers compete with each other to
negotiate the best prices and terms. |
Marking: Country of Origin |
The physical markings on a product
that indicate the country of origin where the article was
produced. (With very few exceptions, the U.S. requires every
imported article to be so marked.) |
Marks |
Identification placed on the outer
surface of shipping containers or packages. At one time it
consisted of pictures, letters and numbers. With the advent of
computers, pictures are no longer used. Instructions on the
packages for their proper handling, such as "This side up" may
also be considered part of the marks. Also the weight and
measurements of the packages. |
Matador Bond |
Bond issued on the Spanish market
by an obligor who is not domiciled in Spain. |
Mate's Receipt |
A declaration issued by an officer
of a vessel stating that certain goods have been received on
board his vessel. |
Material Contract Terms |
Terms in a purchase/sale contract
that are considered essential; they describe the goods, fix the
price, fix the quantity, and set the delivery date. |
Measurement Cargo |
A cargo on which the
transportation charge is assessed on the basis of size or
dimensions, instead of upon the gross weight. |
Medium of Exchange |
Anything which is widely accepted
in payment for goods and services and in settlement of debts.
Its acceptability is based upon the fact that it can provide a
common basis of measurement of the value of things. |
Memorandum Bill of Lading |
Sometimes the duplicate
(non-original) copies of bills of lading are marked "Memorandum"
and are intended for informational purposes only. |
Memorandum of Understanding |
An informal record, document, or
instrument that serves as the basis of a future contract. |
Merchant's Credit |
A form of commercial letter of
credit which the buyer, with no commitment on the part of a
bank, sends to the seller via a bank in the district of the
buyer. The seller presents his bill of sale and evidence of
shipment in order to obtain payment from the buyer. |
Microbridge |
An intermodal movement of cargo
which involves a vessel leg to a port and then a movement via
another transportation mode, truck or rail, to an inland point
where the movement terminates. In the reverse direction, the
cargo is picked up at a point inland for transport via truck or
rail to a port where a vessel loads the cargo and transports it
to an overseas port. The land portion of the two intermodal
moves described is the "microbridge". |
Minibridge |
An intermodal movement of cargo
involving a vessel leg from one country to a port in another
country, and then a movement via truck or rail to another port
in that country, and there the voyage is terminated. The
traversing of the land in the second country from discharge port
to destination port is the "minibridge" portion of the movement.
There could be a similar but opposite combined "minibridge"
movement in the other direction. |
Minimum Charge |
The lowest amount that will be
charged regardless of the amount of service rendered. |
MOD Act |
(USA) Customs Modernization and
Informed Compliance Act: Passage 1992, HR 3935. |
Money |
Any denomination of coin or paper
currency of legal tender that passes freely as a medium of
exchange. |
Money Creation |
The increase in money supply by
the central or commercial banks. |
Money Market |
The market for short term
financial instruments (i.e. commercial paper, treasury bills,
discount notes). |
Money Market Operations |
Creating, investing in, buying and
selling short term obligations in the market for short term debt
instruments. |
Money Supply |
The amount of cash and bank
deposits available in an economy. |
Moor |
To secure a vessel to an anchor,
buoy, or pier. |
Moorage |
Charges assessed for mooring a
vessel to a pier or wharf. |
Most Favored Nation |
A trade policy commitment on the
part of one nation to extend to another nation tariff rates as
low as applies to any other "most favored nations," and to treat
imports from that nation without discrimination. |
Motor Carrier's Terminal |
The place where a motor carrier
receives freight, delivers freight to other motor carriers,
temporarily stores freight, loads trucks and containers, and
generally does all the things which a carrier has to do
regarding freight handling and servicing of its trucks and
equipment. |
Multilateral Agreement |
An agreement among more than two
persons, firms, or governments. |
Multimodal Transport |
Transportation which includes at
least two modes of transport, such as shipping by rail and by
sea. |
Multinational Corporation |
A corporation having subsidiaries
in more than one country. |
N |
NAFTA |
North American Free Trade
Agreement. |
National Association Of Export
Companies |
A nonprofit organization to act as
the information provider, support clearinghouse forum, and
advocate for those involved in exporting and servicing
exporters. |
National Customs Brokers And
Freight Forwarders Association |
(USA) A non-profit organization
which serves as the trade organization of customs brokers and
international freight forwarders in the U.S. |
National Trade Data Bank (NTDB) |
(USA) An electronic data base
which contains international economic and export promotion
information supplied by 15 U.S. governmental agencies. |
National Treatment |
National treatment affords foreign
individuals and firms the same competitive opportunities,
including market access, as are available to domestic parties. |
Nationalization |
Takeover by a government of a
public or private activity. |
Negotiable |
Legally capable of being
transferred by endorsement or delivery. |
Negotiable Bill of Lading |
A bill of lading transferable by
endorsement by virtue of its terms which make the goods which it
covers deliverable to "bearer", or to the order of a named
party, or to the assigns. |
Nested |
Packed one within another; for
example the way paper cups are stacked as a way of saving space. |
Net Cash |
Payment for goods sold without any
deduction allowed from the price. |
Net National Product |
The total amount of goods and
services produced in a nation in a given period of time less the
quantity of goods and services needed for its production. |
Net Price |
Price after all deductions,
discounts, rebates, etc have been taken. |
Net Weight |
The weight of goods without
packaging. The weight of the contents of a package. |
No Show |
Freight that has been booked for
shipment on a carrier, but has not physically arrived in time to
be loaded before departure of the carrier. This term is also
applied to passengers who do not arrive for a departure |
Notary Public |
A person commissioned by a state
for a stipulated period to administer certain oaths and to
attest and certify documents. In some countries, the authority
of a notary public is much more extensive. |
Notify Address |
Address of the party mentioned in
the transport document to which the carrier is to give notice
about the arrival of the shipment. |
Notify Party |
Name and address of a party
indicated in the transport document to be notified by the
shipping company of the arrival of a shipment. |
NTDB |
(USA) National Trade Data Bank: A
data base used as the central collection point for US government
generated export promotion information. |
O |
Ocean Bill of Lading |
A receipt for the cargo and a
contract for transportation issued by an ocean carrier. When
issued in negotiable form, it is also an instrument of title. |
Offer |
1. A proposal that is made to a
certain individual or legal entity to enter into a contract,
that is definite in its terms, and that indicates the offerer's
intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready
to sell. |
Office Of Export Licensing (OEL) |
An agency under the Bureau of
Industry and Security that administers export licenses. |
Office Of Management And Budget |
An executive office of the
President which evaluates, formulates and coordinates management
procedures and program objectives within and among federal
departments an agencies. It also controls the administration of
the federal budget. |
Offer |
1. A proposal that is made to a
certain individual or legal entity to enter into a contract,
that is definite in its terms, and that indicates the offerer's
intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready
to sell. |
Official Development Assistance |
Official Development Assistance
Financial flows to developing countries and multilateral
institutions provided by official government agencies. |
Offshore Bank |
A bank located in a country other
than the bank which owns it. The owning bank is usually in a
major country and the "offshore bank" in a smaller country. |
Offshore Banking Center |
A financial center where many of
the financial institutions have little connection with that
country's financial system, but have located themselves there to
benefit from less regulation and/or lower taxes. |
Old-To-Market |
(USA) This is a term used by the
International Trade Administration to define larger scale firms
who are committed and experienced in export trade and have
export sales often in excess of 15% . |
On Board |
Notation on a bill of lading
indicating that the goods have been loaded on board a named
ship. |
On Deck Bill Of Lading |
An ocean bill of lading containing
the notation that the goods have been loaded on the deck of the
vessel. |
Open Account |
Credit extended that is not
supported by a note, mortgage, or other formal written evidence
of indebtedness. |
Open Conference |
A shipping conference in which
there are no restrictions upon membership other than ability and
willingness to serve the trade and abide by the rules of the
conference. |
Open Economy |
An economy free of trade
restrictions. |
Open-End Contract |
An agreement by which the buyer
may purchase an unspecified amount of goods from a seller over a
certain period of time without changes in the price or the
contract terms. |
Operator of Foreign Trade Zone |
(USA) A corporation that operates
a foreign trade zone under the terms of an agreement with a
foreign trade zone grantee. |
Order |
1. A request to deliver, sell,
receive or purchase goods or services.
2. An instruction, command or direction authoritatively given.
3. A designation of the person to whom a bill of exchange is to
be paid, or delivery of goods made, or a bill of lading
consigned (A key word which makes a document negotiable.)
4. A rank, class or division of men. |
Order Bill |
A bill of lading that states that
goods are consigned "to the order" of the person named, or
simply "to order" (of no one in particular.) Such a bill of
lading is a negotiable document. |
Order Notify |
A bill of lading which is
negotiable because it is consigned to "order" with no entity
named; but it does have a named party indicated to whom the
carrier is expected to send a notice of arrival. |
Outright |
Free from reserve or restraint;
direct; positive; downright; altogether; entirely; openly. |
Over the Counter |
Securities trading which takes
place outside the normal Security Exchanges. |
Overnight |
The period in which settlement is
required on a transaction such as a currency trade or a swap -
on the next business day after the transaction. |
P |
Packing List |
A document listing the merchandise
in a particular shipment indicating the kind and quantity in
each package. |
Pallet |
A platform with or without sides,
on which a number of packages or pieces may be loaded to
facilitate handling. Usually the pallet is constructed so that
it has space underneath it to permit lifting by mechanical
equipment. |
Pallet Loader |
A device employing a vertical lift
platform for the mechanical loading or unloading of pallets of
freight at plane side. |
Pallet Transporter |
A vehicle for the movement of
loaded pallets from one place to another. |
Palletizing |
The loading and securing of a
number of sacks, bags, boxes or drums on a pallet base. |
Par |
Equal. An equality between the
face value of a bill of exchange, share of stock etc., and its
actual market value. If it can be sold for more, it is "above
par;" if for less, it is "below par." |
Par Exchange Rate |
The free market price of one
country's money in terms of the currency of another. |
Par Of Exchange |
The precise equivalency of a given
sum of money of one country with the like sum of money of
another country into which it is to be exchanged. |
Par Value |
1.The official fixed exchange rate
between two currencies or between a currency and a specific
weight of gold.
2. "Par Value" of a currency is its official rate of exchange.
3. "Par Value" of a share of stock is the value declared on its
face.
4. As to a mortgage or a trust deed, it is the balance owing,
without discount. |
Parent Bank |
A bank in one country that has a
subsidiary in another country. |
Parity |
1. Equality in amount or value.
2. Equivalence of prices of goods or services in different
markets
3. The relationship between two currencies such that they are
exchangeable for each other at par or at the official rate of
exchange.
4. Equivalence of prices of farm products (or farm income) to
those existing at a former time, or to the general cost of
living. |
Parol Contract |
A contract that is oral only as
distinguished from one that is written. |
Particular Average |
A partial loss of cargo or hull
which falls entirely upon the interest concerned. See also
"General Average" |
Partnership |
An unincorporated business owned
and operated by two or more persons, who, according to the
agreement of the partnership, share the profits and the losses,
and the responsibilities, and have general or limited liability.
(At least one partner must have unlimited liability) |
Patent |
A grant by law of a privilege,
property, or authority, to one or more individuals - including
the grant to an inventor of the right to exclude others from
making, using or selling the invention for a term of years. |
Payable In Exchange |
A negotiable instrument
conspicuously marked on its face "Exchange" and naming a payee,
is considered to be negotiable and payable to the order or
assigns of the designated payee. |
Payee |
1. The person or organization to
whose order a check or draft or note is made payable.
2. One to whom money is paid or is to be paid. |
Payer |
(Or Payor.) One who pays or is to
pay, particularly the person who is to make payment of a check,
bill, note, or account. |
Penalties |
1. Punishment, corporeal or
pecuniary, or civil or criminal, although its meaning is
generally confined to pecuniary punishment for doing an act that
is prohibited or failing to do one which is required.
2. The sum of money which the obligor of a bond undertakes to
pay in the event of his failure to perform his obligations under
the conditions of the bond. |
Performance |
The proper fulfillment of a
contract or obligation according to its terms. |
Peril Point |
An estimated limit beyond which a
reduction in tariff protection would cause material injury to a
domestic industry. |
Perishable Freight |
Goods subject to decay or
deterioration during shipment. |
Petrodollars |
Hard currency, principally U.S.
Dollars, earned by developing nations production and sale of
petroleum. |
Phytosanitary Inspections |
A certificate issued by the agency
of a national government indicating that an export shipment has
been inspected and is free from harmful pests and plant
diseases. |
Pickup and Delivery Service |
An optional additional service for
the transport of shipments from shipper's door to originating
carrier's terminal and from the terminal of destination to
receiver's door, offered by some airlines, railroads and
sometimes by other shipping modes. With some transportation
services such as the postal and small package express services,
it is a standard service rather than optional. |
Pickup Order |
An order to a carrier to pick up
freight at a location. |
Pier-to-Pier |
Shipment of cargo with carrier
responsibility from origin pier to discharge pier. |
Piggyback |
The transportation of truck
trailers and containers on specially equipped railroad
flat-cars. |
Pilferage |
Taking of property by stealth or
clandestine theft, usually in small quantities. |
Pilot |
1. A person who flies an airplane.
2. A person whose occupation is to guide ships, particularly
along a coast, or into and out of a harbor. |
Plimsoll Mark |
The horizontal line on the outside
of a ship which represents the depth to which a vessel may be
safely loaded. |
Point of Origin |
1. The location in which a good is
manufactured or produced.
2. The location at which a shipment is received by a
transportation line from the shipper. |
Port |
1. A place intended for loading
and unloading the cargo or passengers of vessels - it may be
within a natural harbor on a coast, or on a river, or within
sheltered water produced by artificial jetties.
2. A place where customs officers are stationed for the
collection of duties and the control of imports and exports. |
Port Charge |
A charge made for various services
performed at ports. |
Port of Discharge |
The port at which a shipment is
off loaded by a transportation line. |
Port of Entry |
A place designated by law at which
Customs is stationed and carriers from foreign ports, foreign
goods and persons are permitted to arrive. |
Port of Export |
A place where Customs is stationed
to control departures of carriers, passengers, and goods to
foreign countries. |
Port-of-Origin Air Cargo Clearance |
(USA) U.S. Customs clearance at
foreign airports to facilitate the procedures before arrival in
the U.S. |
Portfolio Investment |
In investment, the collective term
for all the securities held by one person or institution. |
Post-Shipment Verifications |
(USA) An inspection or other
action to determine that an exported strategic commodity is
being used in the places and for the purposes for which its
export was licensed. |
Postdated Check |
A check delivered prior to its
date, generally payable on or after the day of its date. |
Preference |
1.A creditor's right to be paid
before other creditors of the same debtor.
2. A trade preference is the granting of a preferred status to
some or all of the goods of a preferred country, such as lower
rates of duty or admissibility of goods in quantities over and
above those normally permitted. |
Preferential Tariff |
A tariff which imposes lower rates
of duty on goods imported from some countries. |
Preferred Country |
A country which has lower rates of
duty imposed on its goods or is given other preferential trade
treatment by another country. |
Premium |
1. A bounty or bonus above a
regular price, paid as an incentive to do something.
2. The price of insurance protection for a specified risk for a
specified period of time.
Comment: Meaning numbered 1 above indicates that one meaning of
"Premium" is: Something in addition to the regular price. In
meaning numbered 2 "Premium" is the price itself.
3. A "give-away" - a reward or prize. |
Prepaid |
1. A notation on a shipping
document indicating that shipping charges have already been paid
by the shipper to the carrier, or it is an expression of the
intention that payment is to be made by the shipper.
2. An expense paid before it is currently due.
3. A service or good paid for before it is delivered. |
Prepaid Charges |
In transportation, this term may
mean that all charges, including freight, are to be paid by the
shipper. Or, it may mean that only those charges designated as
"prepaid" are to be paid by the shipper with other charges to be
collected from the receiver. Which charges are which are
generally decided by prior agreement. |
Price Support |
Subsidy or financial aid offered
to specific growers, producers, or distributors, in accordance
with governmental regulations to keep market prices from
dropping below a certain minimum level. |
Priority Air Freight |
Reserved air freight or air
express service wherein certain shipments by special
arrangement, at extra cost, have a priority after mail and the
small package services. |
Private Corporation |
A business corporation with shares
that are not traded among the general public. |
Procurement |
The act of obtaining; attainment;
acquisition; purchasing; buying. |
Product Groups |
Classification of products into
groups for various purposes: statistics, export control, import
quotas etc. |
Productivity |
A measurement of the efficiency of
production. |
Proof of Delivery |
Evidence that one party has turned
over something (cargo) to another. Commonly, in transportation,
a signed, dated acknowledgement of receipt. |
Proprietor |
A person who has an exclusive
right or interest in property or in a business (the owner.) |
Proprietorship |
A business, usually
unincorporated, owned and controlled by one person (sole
proprietorship.) |
Protectionism |
The deliberate use or
encouragement of restrictions on imports to enable relatively
inefficient domestic producers to compete successfully with
foreign producers, or to protect and preserve those industries
and producers considered of critical national interest. |
Protective Service |
Some airlines offer a protective
service where shippers can arrange to have their shipments under
carrier surveillance at each stage of transit. |
Protective Tariff |
A duty or tax on imported products
to make them more expensive in comparison to domestic products. |
Protest |
1. (USA) The procedural means by
which an importer, consignee, or other designated party may
challenge a customs decision.
2. An action required to be taken in some countries in order to
protect one's rights to seek legal remedies when a collection is
dishonored. |
Public Corporation |
1. A business corporation with
shares traded among the general public, such as through a stock
exchange.
2. Also, an instrumentality of the state, founded and owned by
the public interest, supported by public funds, and governed by
those deriving their authority from the state. |
Published Rate |
1. The freight charges for a
particular class and quantity of cargo as published in a
carrier's tariff.
2. The service charges of many kinds of public utilities
(usually government regulated enterprises) which are published
in tariffs for public information. |
Purchase Order |
A purchaser's written offer to a
supplier formally stating all terms and conditions of a proposed
transaction. |
Q |
Quantitative Restrictions |
Explicit limits, or quotas, on the
physical amounts of particular commodities that can be imported
or exported during a specified time period, usually measured by
volume but sometimes by value. The quota may be applied on a
selective basis, with varying limits set according to the
country of origin or destination, or on a quantitative global
basis that only specifies the total limit and thus tends to
benefit more efficient suppliers. |
Quarantine |
1. The term during which an
arriving ship or airplane, including its passengers, crew and
cargo, suspected of carrying a contagious disease, is held in
isolation to prevent the possible spread of the disease.
2. The place in which a person or carrier under quarantine is
held. |
Quay |
A structure built for the purpose
of mooring a vessel; also called a pier. |
Queue |
A line of people, vehicles etc.,
especially a waiting line as before a ticket window or a toll
booth. |
Quid Pro Quo |
1. A mutual consideration;
securing an advantage or receiving a concession in return for a
similar favor.
2. A mutual consideration which passes between the parties to a
contract, and which renders it valid and binding. |
Quota |
A limitation on the quantity of
goods that may be imported into a country from all countries or
from specific countries during a set period of time. Export
quotas have similar parameters. |
Quota System |
(USA) A part of the U.S. Customs'
Service Automated Commercial System, which controls quota levels
(quantities authorized) and quantities entered against those
levels. |
R |
Rail Waybill |
A document used to control the
transportation of a shipment of goods via rail. It is similar in
content to an inland bill of lading, with freight and other
charges, and routing. |
Rate Of Exchange |
The price at which the money of
one country can be exchanged for the money of another country. |
Real Rights |
Rights in real estate or in items
attached to real estate. |
Realignment of Currencies |
Simultaneous and mutually
coordinated revaluation and devaluation of the currencies of
several countries. |
Receipt |
1. Any written acknowledgment of
value received. It is a mere admission of a fact without
containing any affirmative obligation.
2. Receipt of goods means taking possession of goods. |
Received For Shipment Bill Of
Lading |
A bill of lading which confirms
the receipt of goods by the carrier for transportation on a
particular vessel, but not their actual loading on board the
vessel nor their actual shipment. |
Receiving Papers |
In transportation, paperwork that
accompanies a shipment when it is brought to a carrier. |
Reciprocal Trade Agreement |
An international agreement between
two or more countries to establish mutual trade concessions that
are expected to be of equal value. |
Reciprocity |
The process by which governments
extend similar concessions to each other. |
Reconsignment |
In transportation, a change in the
name of the consignee; a change in the place of delivery; or
relinquishment of the shipment by the carrier at the point of
origin. |
Redeliver |
1. To yield and deliver back a
thing.
2. (USA) In U.S. Customs, it is a demand by customs to return to
Custom's custody goods for reexamination, detention, re-export
or destruction. |
Reefer Container |
A controlled temperature shipping
container (usually refrigerated with a self-contained
refrigeration unit). |
Reexport |
The export of imported goods
without appreciable added value. |
Refund |
1. To repay or restore. To return
money in restitution or repayment. To return overpaid charges
2. That which is refunded. The amount returned.
3. To fund again or renew; specifically to borrow in order to
pay off an existing loan with the proceeds. |
Relay |
In marine transportation, a
procedure in which a shipment is shipped to an intermediate port
and transferred to another vessel for delivery to the ultimate
destination port. |
Remittance |
Funds forwarded from one person to
another. |
Replevin |
A legal action for the recovery of
property brought by the owner or party entitled to repossess the
property against a party who has wrongfully kept it. |
Request For Quotation |
A negotiating approach whereby the
buyer asks for a price quotation from a potential seller for
specific goods. |
Rescind |
To abrogate, annul, avoid, cancel
a contract; declare it void in its inception and put an end to
it as though it never were. |
Reserved Freight Space |
A service by some carriers
(airlines and ship lines) enabling shippers to reserve freight
space on designated voyages. |
Restricted Letter of Credit |
A letter of credit which restricts
negotiation to the bank the issuing bank has nominated in the
credit. |
Restrictive Business Practices |
Actions in the private sector
designed to restrict competition in order to keep prices
relatively high. |
Retaliation |
1. the return of evil for evil.
2. Action taken by a country to restrain its imports from a
country that has increased a tariff or imposed other measures
that adversely affect its exports. |
Revaluation |
1. The restoration of the value of
a nation's currency that had once been devalued in terms of the
currency of another nation.
2. The restoration of purchasing power to an inflated currency.
3. Restoration of the value of a currency
4. Currencies of countries undergoing inflation are more often
"devalued," meaning that either by market forces or by
declaration of the issuing government, a greater number of units
of its currency are required to purchase other currencies. When
the reverse occurs, usually in an attempt to restore the
purchasing power of an inflated currency, this is called
"revaluation." |
Reverse Preferences |
Tariff advantages offered by
developing countries to imports from certain developed countries
that had granted them trade preferences in the past .(This
practice has generally ceased) . |
Revolving Letter of Credit |
A letter of credit which when
drawn upon is automatically restored to its full amount,
periodically, or after a particular event prescribed in the
credit. |
Risk Position |
The condition of an asset or
liability which is exposed to fluctuations in value (on the
international markets this would include changes in exchange
rates or interest rates as well as changes in market value) |
Road Waybill |
Transport document is used to
control shipments of goods via truck. It contains the same
information as an inland bill of lading, with freight and other
charges, and routing. |
Roll on, Roll off |
A category of ships designed to
load and discharge cargo which rolls on wheels, and as the name
says is driven onto the decks of the vessel and driven off. |
Rollover Credit |
Short term notes or loans which
may be extended after the initial due date. |
Route |
1. A customary or regular line of
passage or travel.
2. The course or direction that a particular shipment moves.
3. To direct the routing of a shipment (and whose services shall
be employed). |
Royalty |
Compensation for the use of
property, usually copyrighted or patented material or natural
resources, based on an agreed percentage of the income arising
from its use or an amount per unit produced. |
S |
Sales Agreement |
A written document (a contract) by
which a seller agrees to convey property to a buyer for a
stipulated price under specified conditions. |
Sales Tax |
A tax placed by a state or
municipality on items at the time of their sale, usually a
percentage of the purchase price. |
Salvage |
1. Compensation paid for the
rescue of a ship, its cargo or passengers from the perils of the
sea;
2. or, the act of saving a ship or its cargo from possible loss;
3. or, property saved from a wreck or fire. |
Samurai Bond |
Bond issued on the Japanese market
in yen for non-Japanese borrowers. |
Sanction |
1. A punitive act taken by one or
more nations against another nation which has violated a treaty
or international law.
2. A proviso in a law to secure its enforcement by imposing a
penalty for its violation or offering a reward for its
observance. |
Seal |
A mark or sign that is used to
attest the execution of an instrument, contract, or other
document. |
Seaworthiness |
The fitness or safety of a vessel
for its intended use. |
Secured |
Guaranteed as to payment by the
pledge of something valuable as security or collateral. |
Security |
1. Property pledged as collateral
to a debt.
2. Protection; assurance; indemnification.
3. A document that indicates evidence of indebtedness or of
equity interest - including notes, bonds, debentures, stocks,
certificate of interest, etc. which may be traded on an
exchange. |
Seizure |
The act of taking possession of
property. |
Seller's Market |
Exists when goods are in short
supply compared to the demand, at which point the economic
forces of business tend to cause goods to be priced at the
vendor's estimate of value. |
Selling Rate |
Rate at which a bank is willing to
sell foreign exchange or to lend money. |
Service A Loan |
To pay interest due on a loan. |
Settlement Date |
The date on which payment for a
transaction must be made. |
Shared Foreign Sales Corporation |
(USA) A foreign sales corporation
formed to make export sales and earn favorable tax treatment
thereon. A Shared Foreign Sales Corporation requires more than
one and less than 25 unrelated exporters. |
Ship's Manifest |
A list of the individual shipments
constituting the ship's cargo. |
Ship's Papers |
The documents a ship must carry to
meet the safety, health, immigration, commercial and customs
requirements of a port of call or of international law. |
Ship's Stores |
The food, medical supplies, spare
parts and other provisions carried for the day-to-day running of
a vessel. |
Shipment |
1. Delivery of cargo to a carrier
for transportation.
2. The transportation of goods.
3. The property which is the subject of transportation. |
Shipped On Deck |
Goods shipped on the deck of a
vessel. The bill of lading covering goods shipped on deck must
be annotated to that effect. |
Shipper |
1. One who transports goods for a
charge. In normal usage, such a person would be called a
carrier, but carriers are also called "shippers"
2. One who tenders goods to a carrier for transportation.
3. The sender of goods to be transported as distinct from the
receiver or the consignee. |
Shipping Order |
Instructions from a shipper to a
carrier for the transportation of goods. |
Short Form Bill of Lading |
A bill of lading on which the
detailed conditions of transportation are not listed in full,
but instead there is a statement which declares them to be
incorporated by reference, and states the place where they are
available. |
Short of Exchange |
The position of a foreign exchange
trader who has sold more foreign currency of a particular
country than he has in possession to cover sales. |
Short Weight |
Any shipment found to weigh less
than the documents indicate, be it a bill of lading, a dock
receipt, a warehouse receipt, an inspection certificate, or a
weight tally. |
Shortage |
A deficiency in quantity shipped,
stored, or received. |
Sling |
A contrivance into which freight
is placed to be hoisted into or out of a ship. |
Slip |
A vessel's berth between two
piers. |
Small Package Service |
A specialized service to guarantee
the delivery of small parcels within specified express time
limits. |
Smuggling |
Moving goods across a customs
frontier in a clandestine manner, evading customs control. It
may be goods on which duty and taxes have been avoided, or it
may be goods which are not permitted to be imported or exported. |
Soft Currency |
The currency of a country that is
not readily accepted by other countries and is not readily
converted into currencies which are readily acceptable (hard
currencies). |
Soft Loan |
A loan made with easy or generous
terms such as low or no interest and long payback. |
Sovereign Credit |
A direct borrowing or a borrowing
guaranteed by the government of a sovereign state. |
Sovereign Risk |
1. The risk to a lender that the
government of a sovereign state may default on its financial
obligations.
2. Also, the risk to a lender that unfavorable changes in the
borrowers overall currency exchange position might imperil the
payment of a loan.
3. Also the risk to a lender that unfavorable political events
in the country of the debtor might imperil repayment. |
Special Rates |
Rates that apply to cargo traffic
under special conditions and usually to and from a limited
number of points. |
Specific Commodity Rate |
With reference to freight rates,
it is a favorable freight rate usually applicable to certain
classes of commodities which move in large volume shipments. |
Specific Rate of Duty |
A specified amount of duty per
unit of weight or other quantity. |
Spot Cash |
Immediate cash payment on a
transaction. |
Spot Exchange |
The purchase and sale of foreign
exchange for delivery and payment at the time of the
transaction. |
Spot Exchange Rate |
The price of one currency
expressed in terms of another currency at a given moment in
time. |
Spot Market |
The market for a commodity or
foreign exchange available for immediate delivery. |
Spot Operations |
Foreign exchange dealings and
commodity trading in which settlement of the mutual delivery and
payment commitment is made immediately. |
Spot Price |
The selling of goods or
commodities for immediate delivery. |
Spot Rate |
The rate (price per unit) for
purchase or sale of a commodity or foreign exchange for
immediate delivery. |
Spotting |
The placing (or parking) of a
container in the place where required, to be loaded or unloaded,
or held for further action. |
Standby Commitment |
A bank commitment to loan money up
to a specified amount for a specific period, to be used only in
a certain contingency. |
Standby Letter of Credit |
A letter of credit which a bank
issues on behalf of its customer to serve as a guarantee to the
beneficiary of the letter of credit that the bank's customer
will perform a specified contract with the beneficiary. If the
customer defaults, the beneficiary may draw funds against the
letter of credit as penalties or as payments, whichever the
terms of the credit provide. |
Steamship (or steamer) |
Vessels powered by steam engines.
However, the term is often used to describe powered vessels in
general, and companies who operate ocean going cargo vessels are
often called "steamship companies" despite the fact that the use
of steam power for ocean going vessels is obsolete, the modern
standard being diesel engines fueled by oil. |
Steamship Indemnity |
A contract of indemnity issued by
a bank to an ocean carrier indemnifying the carrier for any loss
incurred for release of goods without surrender of the original
bill of lading properly endorsed. |
Stevedore |
1. A person having charge of the
loading and unloading of ships in port.
2. Sometimes used to indicate those laborers who actually
perform the physical work of loading and unloading a ship
(usually called longshoremen.) |
Storage |
The keeping of goods in a
warehouse or other repository. |
Storage Demurrage |
A storage charge made on property
remaining on the dock or terminal past the permitted "free-time
period". |
Storage in Transit |
The stopping of freight traffic at
a point located between the point of origin and destination to
be stored and reforwarded at a later date. |
Store-Door Delivery |
The movement of goods to the
consignee's place of business, customarily applied to movement
by truck. |
Stowage |
The arranging and packing of cargo
in a vessel for shipment. |
Stowage Instructions |
Specific instructions given by the
shipper or his agent concerning the way in which cargo is to be
handled or stowed. It may refer to the location in the hold,
whether a particular side is to be on top, the kind of other
cargo it may not be near, the number of pieces which may be
stacked, what implements may not be used to move it, such as
"use no hooks" on bales, etc. |
Stowplan |
A diagram showing where cargo has
been placed in a vessel (also known as a stowage plan.) |
Straight Bill of Lading |
A nonnegotiable bill of lading
that designates a consignee who is to receive the goods and
obligates the carrier to deliver the goods to that consignee
only. |
Strike Clause |
An insurance clause which may be
included in policies to cover against losses as a result of
strikes, riots and civil commotions. |
Stripping |
The unloading of cargo from a
container or truck; (also called devanning.) |
Stuffing |
The loading of cargo into a
container. |
Subsidiary |
Any organization more than 50
percent of whose voting stock is owned by another firm. |
Subsidy |
A grant paid by a government to
producers or exporters of goods to strengthen their competitive
position. |
Supply Access |
Assurances sought by importing
countries that they will, in the future, have fair and equitable
access at reasonable prices to supplies of raw materials and
other essential imports. |
Surcharge |
A charge or tax above the usual or
customary charge. |
Surety |
A bond or other security that
protects a person, corporation, or other legal entity in case of
another's default in the payment of a given obligation, improper
performance of a given contract, malfeasance of office, etc. The
one who undertakes to be the surety is primarily liable in case
of the default. |
Survey |
1. To examine and report on the
condition of a vessel for purposes of establishing
seaworthiness, value, or dimensions.
2. To examine and report on the condition of goods or a
structure.
3. To examine and report on the condition of goods or property
after a casualty to determine the extent of the loss and the
probable cause. (Often to support an insurance claim, - although
there may be a claim without insurance being involved.)
4. The reports described above, generally conducted by an
independent third party, called "a surveyor." |
Sushi Bond |
Eurodollar bonds issued by
Japanese corporations on the Japanese market for Japanese
investors. |
Swap (transactions) |
A kind of financial transaction
which has many variations, usually highly complex. They
generally involve a simultaneous exchange of assets (the swap)
by counterparties for other different assets of comparable
value. The assets may be commodities or they may be financial
instruments involving interest rates, cash flows, foreign
exchange, debts or equities. In addition to financial profits,
the swaps have many purposes such as limiting risks, overcoming
restrictions in certain markets, or balancing portfolios. |
Switch Arrangements |
A form of countertrade in which
the seller sells on credit and then transfers the credit to a
third party at a discount. Or, in another type of switch, the
rights to purchase certain goods, resulting from a countertrade
operation, are sold to a third party at a discount. |
T |
Tare Weight |
The weight of a container and/or
packing materials, but without the goods being shipped. The
gross weight of a shipment less the net weight of the goods
being shipped. (In other words, the weight of the packing.) |
Tariff |
1. A comprehensive list or
"schedule" of merchandise with applicable duty rates to be paid
or charged for each listed article; together with governing
rules and regulations.(A "customs" Tariff.)
2. A schedule of rates and charges applied by a business,
especially a common carrier, together with a description of the
services offered and the rules and regulations applicable. |
Tariff Anomaly |
In a customs tariff, a tariff
anomaly exists when the tariff on raw materials or
semi-manufactured goods is higher than the tariff on the
finished product. |
Tariff Escalation |
In a customs tariff, a situation
in which duties on raw materials are nonexistent or very low;
duties on semi-processed goods are moderate; and duties on
manufactured goods are relatively high. |
Tariff Rate Quotas |
(Customs) Application of a higher
duty rate to imported goods after a specified quantity of the
item has entered the country at a lower prevailing rate. |
Tariff Schedule |
(Customs) A comprehensive list of
the goods which may be imported into a country, and the import
duties applicable to each product. |
Tariff War |
(Customs) When one nation
increases the tariffs on goods imported from, or exported to
another country, and that country then follows by raising
tariffs itself in a retaliatory manner. |
Tax Haven |
A nation offering low tax rates
and other incentives for individuals and businesses of other
countries to locate there. |
Temporary Importation (Admission
Temporaire) |
A customs procedure under which
certain goods can be brought into a customs territory
temporarily, conditionally relieved from the payment of import
duties and taxes; such goods must be imported for a permitted
purpose and must be intended for exportation within the
permitted period. |
Tender |
1. A small vessel which serves a
larger vessel in a port for the purpose of supplying provisions
and carrying passengers to and from ship to shore.
2. An offer of money. An offer to supply something. An offer to
present something.
3. To satisfy a claim, an unconditional offer to perform coupled
with a manifest ability to carry out the offer.
4. A car connected behind a steam railroad locomotive to carry
coal and water. (Almost obsolete). |
Tenor |
The term fixed for the payment of
a draft or debt. |
Terminal |
An facility which is used by a
rail, ship, air, or truck line as a place for receiving and
delivering cargo; loading; unloading; transferring; temporarily
storing; recoopering; and similarly handling freight; and
repairing and servicing equipment.. |
Terminal Charge |
A charge made for services
performed at transportation terminals. |
Terms of Trade |
The ratio of the index of export
prices to the index of import prices. (Note the difference from
"Trade Terms" |
Third World Countries |
Developing countries, especially
in Asia, Africa, and Latin America. |
Through Bill of Lading |
A single bill of lading covering
receipt of cargo at a point of origin for delivery to an
ultimate consignee, usually involving multiple carriers and
multiple modes of transport. |
Through Rate |
A shipping rate applicable to
transportation from point of origin to destination where
multiple carriers and multiple modes of transport may be
involved. |
Tied Loan |
A loan made by a government that
requires a foreign borrower to spend the proceeds in the
lender's country. |
To Order |
A term on a financial instrument
or title document indicating that it is negotiable and
transferable. |
Tracer |
A request upon a transportation
line to trace a shipment for the purpose of locating its
whereabouts, expediting its movement or establishing delivery. |
Tracking |
A carrier's system of recording
movements of shipments from origin to destination. |
Trade Acceptance |
A draft drawn by the seller of
goods upon the buyer who agrees to pay by signing "accepted" on
the draft. |
Trade Deficit |
A nation's excess of imports over
exports over a period of time. |
Trade Name |
The name under which an
organization conducts business, or by which the business or its
goods and services are identified. |
Trade Promotion |
Encouragement of the progress,
growth, or acceptance of trade. (Note: Some would define it
solely as the encouragement of exports.)` |
Trade Surplus |
A nation's excess of exports over
imports over a period of time. |
Trade Terms |
The setting of responsibilities of
the buyer and seller in a sale including sale price, the payment
of costs such as shipping, insurance, and customs; the arranging
of the performance of these activities; and the determination of
when title passes. (Note the difference from "Terms of Trade") |
Trailer |
A vehicle without motor power
designed to be drawn by another vehicle. |
Tramp Line |
A transportation line operating
tramp steamers in waterborne commerce. |
Tramp Steamer |
A vessel which does not operate
under any regular schedule from one port to another, but calls
at any port where cargo may be obtained and charges a negotiated
amount of freight. Usually they transport breakbulk or bulk
cargo. |
Trans-Ship |
1. To transfer goods from one
transportation line to another, or from one ship to another, or
from one airline to another in order to complete a delivery .
2. To ship to one country, and then to re-export to another.
(Sometimes the second exporting country may be incorrectly
represented as the country of origin.) |
Transaction Value |
(USA) The price actually paid or
payable for merchandise imported. |
Transfer Of Technology |
The movement of modern or
scientific methods of production or distribution from one
enterprise or country to another. |
Transfers (mail, wire, cable) |
A transfer is the remittance of a
sum of money to a party in another place. This may be
accomplished by mailing cash or drafts or using the services of
a commercial bank or a wire transfer company for a fee. |
Transit Zone |
An area in a port of entry in a
coastal country that is established as a storage and
distribution center for the convenience of a neighboring country
which lacks adequate port facilities or access to the sea. |
Transmittal Letter |
In international commerce, a
letter from the shipper or their agent transmitting documents
relative to a shipment. Usually there will be included a list of
the documents enclosed and details covering the transportation
of the shipment such as the name of the carrier, date of
departure etc.
. |
Transparency |
The extent to which laws,
regulations, agreements, and practices affecting international
trade are open, clear, measurable, and verifiable. |
Transport Documents |
All types of documents evidencing
acceptance, receipt and shipment of goods. |
Transportation and Exportation
Entry |
(USA) Customs entry used when
merchandise arrives in the U.S. and is moved in bond to another
U.S. port for re-export to a foreign country. |
Traveler |
One who passes from place to
place, whether for pleasure, instruction, business or health. |
Traveler's Checks |
A check designed for business
travelers and tourists, issued by a financial institution of
sufficient importance that it will be readily accepted or cashed
by businesses and banks. For safety it is often designed to be
countersigned twice by the traveler in order to be valid, once
at issuance and once upon being cashed. |
Triangular Trade |
Trade between three countries
which creates a more favorable flow of trade for each than would
exist between only two of them dealing directly with each other. |
Tropical Products |
Agricultural goods grown in
tropical zones ...coffee, tea, spices, bananas, and tropical
hardwoods etc, |
Trust Receipt |
A written declaration by a
customer to a bank that ownership in goods released by the bank
is retained by the bank, and that the client has received the
goods in trust only. Such a trust receipt may be is given by the
customer to the bank to induce the bank to issue a letter of
indemnity to a carrier to release a shipment. |
Turnkey |
A term for a method of
construction whereby the contractor assumes total responsibility
from design through completion of the product and release to the
client in a stage so complete that the buyer need only to turn
the key to open the door and walk into a facility that is ready
to operate. |
Turnkey Contract |
An agreement under which a
contractor agrees to complete a product so that it is ready for
use when delivered to the other contracting party. |
Two-tier Market |
An exchange rate regime employed
in some countries with managed currency exchange rates where the
more favorable rates are maintained for selected activities.. |
Tying Arrangement |
A condition that a seller imposes
on a buyer, requiring that if the buyer desires to purchase one
product (tying product), the buyer must also agree to purchase
another product (tied product), which the buyer may or may not
want. The laws of some countries prohibit certain tying
arrangements, for example in the U.S. the Clayton and the
Sherman anti-trust Acts. |
U |
Ultimate Consignee |
The person who is the true party
in interest, receiving goods for the designated end use. |
UN/Edifact |
United Nations Electronic Data
Interchange for Administration, Commerce and Transport: A United
Nations approved Electronic Data Interchange standard. |
Unconfirmed Letter Of Credit |
A type of letter of credit bearing
the obligation of the issuing bank only, not of any other bank. |
Unconscionable |
Unreasonable; outrageous. Courts
in many countries may refuse to enforce contracts which they
deem to be unconscionable. |
Underdeveloped Country |
A nation which, comparative to
others, lacks industrialization, infrastructure, developed
agriculture, and developed natural resources, and suffers from a
low per capita income as a result. |
Unfair Trade Practice |
Unusual government support to
firms, ranging from export subsidies to anti- competitive
practices by the firms themselves, such as dumping, boycotts or
discriminatory shipping arrangements, that result in competitive
advantages in international trade for the benefitting firms. |
Uniform Commercial Code |
(USA) A law governing commercial
transactions (sales of goods, commercial paper, bank deposits
and collections, letter of credits, bulk transfers, warehouse
receipts, bills of lading, investment securities, and secured
transactions) adopted by all states in the US except Louisiana. |
Unit Load |
Various cargo carrying devices, or
sizes of containers, which carry several smaller shipping
packages, including the banding together of a number of
individual packages on a pallet to create a single unit. |
Unit Load Device |
Term commonly used when referring
to containers and pallets and similar devices which consolidate
packages of freight for mechanical handling. |
United Nations Conference On Trade
And Development |
A part of the UN General Assembly
which promotes international trade and seeks to increase trade
between developing countries and countries with different social
and economic systems. |
United Nations Industrial
Development Organization |
Established in 1967, under the UN
Secretariat, UNIDO serves as a specialized agency to foster
industrial development in lesser developed countries through
offering technical assistance in the form of expert services,
supplying equipment and/or training. |
United States And Foreign
Commercial Service |
United States And Foreign
Commercial Service An agency of the U.S. Department of Commerce
that helps U.S. firms be more competitive in the global
marketplace. |
United States Code (USC) |
A set of volumes containing the
official compilation of U.S. law. are also local offices of the
U.S. Government Printing Office in major U.S. cities. |
United States Customs Service
(USCS) |
U.S. governmental agency whose
primary duties include the assessment and collection of all
duties, taxes and fees on imported merchandise, and the
enforcement of customs and related laws and treaties.
|
United States Department Of
Agriculture |
An executive department which
serves as the principal adviser to the president on agricultural
policy. which works to improve and maintain farm income,
implement nutrition programs and develop and expand markets
abroad for U.S. agricultural products. It is also charged with
inspecting and grading food products for safe consumption. |
United States Department Of
Commerce (DOC) |
An executive department which
encourages and promotes the United States' economic growth,
international trade, and technological advancement. |
United States Department Of
Defense |
A civilian executive department
providing the military forces needed to deter war and protect
the security of the U.S. |
United States Department Of Energy
(DOE) |
An executive department created in
1977 to consolidate all major Federal energy functions into one
department. The principal programmatic missions are energy
programs, weapons and waste clean-up programs, and science and
technology programs. |
United States Department Of Labor
(DOL) |
An executive department which
promotes and develops the welfare of U.S. wage earners, improves
working conditions, and advances opportunities for profitable
employment. The DOL keeps track of changes in employment,
prices, and other national economic measures. |
United States Department Of State |
An executive department which
directs U.S. foreign relations and negotiates treaties and
agreements with foreign nations. Activities of the State
Department are coordinated with foreign activities of other U.S.
departments and agencies. |
United States Department Of The
Interior (DOI) |
An executive department that has
responsibility for most U.S. federal government owned public
lands and natural resources; the principal U.S. conservation
agency. The office of Territorial and International Affairs
oversees activities pertaining to U.S. territorial lands and the
Freely Associated States and coordinates the international
affairs of the Department. |
United States Department Of The
Treasury |
An executive department which
performs four basic functions: formulating and recommending
economic, financial, tax and fiscal policies; serving as
financial agent for the U.S. government; enforcing the law; and,
manufacturing coins and currency. |
United States Department Of
Transportation (DOT) |
An executive department of the
U.S. government which is responsible for the development of
national transportation policies. |
United States Information Agency
(USIA) |
Responsible for the U.S.
government overseas information and cultural programs, including
Voice of America. Conducts a wide variety of communication
activities-academic and cultural exchanges to press, radio,
television and library programs abroad in order to strengthen
foreign understanding of American society, obtain greater
support of U.S. policies, and increase understanding between the
U.S. and other countries. |
United States International Trade
Commission |
An independent fact-finding agency
of the U.S. government that studies the effects of tariffs and
other restraints to trade on the U.S. economy. It conducts
public hearings to assist in determining whether particular U.S.
industries are injured or threatened with injury by dumping,
export subsidies in other countries, or rapidly rising imports. |
United States Price |
(USA) In the context of
investigations regarding dumping, this term refers to the price
at which goods are sold to the U.S. compared to the sale price
in the home market or in 3rd countries. The comparisons are used
in the process of determining whether the imported merchandise
is sold to the United States at less than fair value. |
United States Trade And
Development Agency |
The U.S. Trade and Development
Agency assists in the creation of jobs for Americans by helping
U.S. companies pursue overseas business opportunities. Through
the funding of feasibility studies, orientation visits,
specialized training grants, business workshops, and various
forms of technical assistance, we help American businesses
compete for infrastructure and industrial projects in
middle-income and developing countries. |
United States Trade Representative |
A cabinet-level official with the
rank of Ambassador who is the principal adviser to the President
on international trade policy, and has responsibility for
setting and administering overall trade policy. The U.S. Trade
Representative is concerned with the expansion of U.S. exports. |
United States Travel And Tourism
Administration |
An organization within the
Department of Commerce which: stimulates demand internationally
for travel to the United States, coordinates marketing projects
and programs with U.S. and international travel interests,
encourages and facilitates promotion in international travel
markets by U.S. travel industry principals, works to increase
the number of new-to-market travel businesses participating in
the export market, generates cooperative marketing opportunities
for private industry and regional and local governments,
researches and provides timely and pertinent data, carries on
training programs in international marketing for U.S.
professionals, and works to remove government imposed travel
barriers. |
United States-Canada Free Trade
Agreement |
The provisions of the US/Canada
Free Trade Agreement were adopted by the US with the enactment
of the FTA Implementation Act of 1988. The FTA reduced tariffs
on imported merchandise between Canada and the U.S. and opened
up new areas of trade in investment. It was followed by the
North American Free Trade Agreement (NAFTA) which also includes
Mexico. |
Unitization |
The practice or technique of
consolidating many small pieces of freight into a single unit
for easier handling. |
Universal Copyright Convention |
An international agreement that
affords copyright protection to literary and artistic works in
all countries that voluntarily agree to be bound by the
Convention terms. |
Unloading |
1. The physical removal of cargo
from a vessel, a truck, an airplane, a railroad car.
2. The physical removal of cargo from a container; also called
devanning. |
Unrestricted Letter Of Credit
|
A letter of credit which may be
negotiated through any bank of the beneficiary's choice. |
Uruguay Round |
The eighth round of multilateral
trade negotiations under the General Agreement on Tariffs and
Trade (GATT). The Uruguay Round (so named because meetings began
in Punta de Este, Uruguay in 1987) concluded in December, 1993
after seven years of talks between 117 member nations. From
these negotiations the World Trade Organization came into being. |
Usance |
The common period fixed for
payment by usage, custom, or habit of dealings between the
country where a bill of exchange is drawn and that where it is
payable. It varies according to the countries involved. |
Users Fee |
(USA) Assessments collected by the
U.S. Customs Service to help defray various costs to Customs
involved in the handling of shipments. |
V |
Validity |
1. Validity - Legal sufficiency.
Mere regularity in the execution of documents may not be enough
for "legal sufficiency."
2. The time period for which a letter of credit is valid. |
Valuation |
The act of ascertaining the worth
of a thing. The estimated worth of a thing. |
Valuation Charges |
Transportation charges assessed
shippers who declare for carriage a value of goods higher than
the carriers' limits of liability. They may be in lieu of or in
addition to regular freight charges. |
Value Added |
The amount by which the value of
an article is increased at each stage of its production,
exclusive of initial costs. |
Value Added Tax |
An indirect tax on consumption
that is assessed on the increased value of goods at each
discrete point in the chain of production and distribution, from
the raw material stage to final consumption. The tax on
processors or merchants is levied on the amount by which they
increase the value of items they purchase and resell. |
Vendor |
A company or individual that sells
goods or services. A merchant, a retail dealer; a supplier; one
who buys to sell. |
Vessel Ton |
A unit of measurement of vessels
which provides that 100 cubic feet of vessel volume equals one
ton. |
Visa |
A stamp, seal or endorsement on a
document validating it for a particular use such as on a
passport admitting the holder to a country, or on a license
issued by the government of an exporting country for the export
to a specific importing country of a certain quantity of a quota
controlled commodity subject to a voluntary export restriction
or a voluntary restraint agreement. |
Volume Rate |
A freight rate assessed in
connection with a specified volume of freight based upon the
premise that it will be substantial in total over a period of
time. It is generally a lower rate than normally assessed for
smaller lots of cargo. |
Voluntary Export Restriction |
An understanding between trading
partners in which the exporting nation, in order to reduce trade
friction, agrees to limit exports of a particular good to the
other partner. |
Voluntary Restraint Agreements
|
Informal bilateral or multilateral
arrangements through which the exporting nations voluntarily
restrain certain exports, usually through export quotas, to
avoid economic dislocation in an importing country and to avert
the possible imposition of mandatory import restrictions by the
importing country. |
W |
War Clause |
A marine insurance provision
excluding the liability of an insurer if a loss is caused by war
or hostile action. Bills of Lading and charter parties may
contain a "War Clause" giving the vessel options to maintain
it's safety in case of hostilities. |
War Risk |
The risk to a vessel, its cargo
and passengers by aggressive actions of a hostile nation or
group. |
War Risk Insurance |
Insurance covering loss or damage
caused by war or other hostile actions. Usually a separate
policy from a marine insurance policy, or a special attachment
to it. |
Warehouse Receipt |
A document issued by a warehouse
listing the goods or commodities deposited in the warehouse. It
is a receipt for the commodities listed, and for which the
warehouse is the bailee. Warehouse receipts may be either
non-negotiable or negotiable. |
Warehouse, U.S. Customs Bonded |
(USA) A privately owned and
operated warehouse which has posted bond and has been approved
by U. S. Customs where goods remain until duty has been
collected from the importer. |
Warranty |
A promise by a contracting party
that the other party can rely on certain facts or
representations as being true. |
Warsaw Convention |
An international multilateral
treaty which set the conditions of international transportation
by air. |
Waybill |
A document prepared by a
transportation line at the point of shipment for use in the
handling of the shipment showing the point of origin,
destination, route, consignor, consignee, description of
shipment and amount charged for the transportation service and
other services connected with the transport It is similar in
point of information to a bill of lading.. |
Webb-Pomerene Act Of 1918 |
(USA) Federal legislation
exempting certain exporters' associations from certain antitrust
regulations. |
Webb-Pomerene Association |
(USA) Associations engaged in
exporting that handle the products of similar producers for
overseas sales. These associations have partial exemption from
U.S. anti-trust laws but the associations may not engage in
import, domestic or third country trade, or combine to export
services. |
Weight Break |
The point at which the weight of a
shipment is large enough to be assessed the lower freight rates
which are applicable to larger shipments, as per the carrier's
tariff. |
Wharfage |
A charge assessed by a pier or
dock owner for handling incoming or outgoing cargo. |
Without Reserve |
A term applied to a sale by
auction indicating that no price is reserved (there is no
minimum price.) |
World Bank |
The International Bank for
Reconstruction and Development (IBRD), commonly referred to as
the World Bank, is an intergovernmental financial institution
located in Washington, DC. Its objectives are to help raise
productivity and incomes and reduce poverty in developing
countries through the granting of loans. |
World Bank Group |
An integrated group of
international institutions that provides financial and technical
assistance to developing countries. |
World Trade Clubs |
Local or regional based
organizations in the United States and around the world of
importers, exporters, customs brokers, freight forwarders,
attorneys, bankers, manufacturers and shippers. |
World Trade Organization |
The international organization
which resulted from the Uruguay Round of GATT negotiations. It
is intended to promote world trade and to settle disputes among
member nations. |
X |
Y |
Z |
Zip Code |
(USA) A numerical code,
established by the U.S. Postal Service, used for the purpose of
routing mail and to identify delivery zones. Some foreign
countries have a similar system. Carriers often apply this code
in the same manner in the handling of freight and the
determination of freight charges. |
Zone Status |
(USA) Merchandise admitted to a U.
S. Foreign Trade Zone may be given a special status which
affects what may done with it. For example: when entered into
the U. S. Customs territory it may be dutiable at rates and
values applicable at that time; or it may be given a status
which fixes the applicable rates and values at those in effect
at the time when it was admitted to the zone; or it may have a
status which denies entry to the U.S.A. altogether. |
Zone User |
(USA) A corporation, partnership
or party that uses a U.S. foreign trade zone for storage,
handling, processing, or manufacturing merchandise, whether
foreign or domestic. |
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