- Create An Account
- About California STEP
- Knowledge Community Sign-In
- Privacy
- Doing What Matters
- Intranet
- Login
Acronyms & Terminology
FOR STUDENTS > Acronyms & Terminology > International Trade Career Pathways > Youth Entrepreneurship Program > Scholarships & Internships
- The acronyms listed are for reference and presented for clarification purposes. You do not need to know all the terms listed for the CGBP examination.
- AAA: American Arbitration Association AADA: Abbreviated Antibiotic Drug Application AAEI: American Association of Exporters and Importers AC: Actual Cost ACE: Automated Commercial Environment ACN: Application Control Number ACWP: Actual Cost of Work Performed AD: Activity Description or (A/D) After Date ADB: Asian Development Bank ADD: Anti-Dumping Duty AES: Automated Export System AESTIR: Automated Export System Trade Interface Requirements ADM: Arrow Diagramming Method ADR: Alternative Dispute Resolution AE: Apportioned Effort AEO: Authorized Economic Operator AES: Automated Export System AF: Actual Finish AFDB: African Development Bank and Fund AGRICOLA: Agricultural Online Access database AID: Agency for International Development ALJ: Administrative Law Judge AmChams: American Chambers of Commerce (located in foreign countries) AMS: Agricultural Marketing Service ANDA: Abbreviated New Drug Application AOA: Agreement on Agriculture or Activity on Arrow AON: Activity on Node AOS: American Organic Standards A/P: Authority to Pay API: Active Pharmaceutical Ingredients or Application Programming Interface APEC: Asia-Pacific Economic Cooperation APHIS: Animal and Plant Health Inspection Services AQI: Agriculture Quarantine Inspection ARPU: Average Revenue Per User AS: Actual Start or (A/S) After Sight ASAP: As Soon As Possible ASBDC: Association of Small Business Development Centers ASEAN: Association of South-East Asian Nations ASP Average Selling Price AT: Anti-Terrorism ATA: A Temporary Admission (Carnet) A-TCET: Anti-Terrorism Contraband Enforcement Team ATF: Alcohol, Tobacco and Firearms ATO: Agricultural Trade Office ATS: Automated Targeting System AWB: Air Waybill
- B2B: Business to Business B2C: Business to Consumer BAC: Budget At Completion BATF: Bureau of Alcohol, Tobacco, and Firearms BATNA: Best Alternative to a Negotiated Agreement BCWP: Budgeted Cost of Work Performed BCWS: Budgeted Cost of Work Scheduled BEA: Bureau of Economic Analysis BEST: Border Enforcement Security Task force BIC: Business Information Center BIE: Business and International Education BIFA: British International Freight Association BIS: Bureau of Industry and Security BLA: Biologic License Application BMR: Best Market Report BOM: Bill of Materials BRU: Business Recovery Unit BS: British Standards
- CA: Control Account or Certification Authority CAB: Commodity Analysis Branch CAD: Cash Against Documents CAF: Currency Adjustment Factor CAFC: Court of Appeals for the Federal Circuit CAFRA: Civil Asset Forfeiture Reform Act CAFTA-DR: Central American Free Trade Agreement-Dominican Republic CAGR: Compound Annual Growth Rate CAO: Chief Accounting Officer CAP: Classification Assistance Program or Control Account Plan or Common Agricultural Policy CAPEX: Capital Expenditure CAPM: Capital Asset Pricing Model CAPPS: Customs Automated Port Profile System CAPSTAN: Computer Aided Planned Stowage and Networking System CARICOM: Caribbean Community and Common Market CAS: Chemical Abstract Service CAT: Compliance Assessment Team CATAIR: Customs and Trade Automated Interface Requirements CB: Chemical & Biological Weapons CBERA: Caribbean Basin Economic Recovery Act CBP: Customs and Border Protection CBPa: Customs and Border Protection Agriculture CBTPA: Caribbean Basin Trade Partnership Act CC: Crime Control CCAS: Customs Commercial Advisory Service CCATS: Commerce Classification Automated Tracking System CCB: Change Control Board CCC: Commodity Credit Corporation CCCN: Customs Coöperation Council Nomenclature CCG: Country Commercial Guide CCL: Commerce Control List CCS: Certified Customs Specialist CCSF: Certified Cargo Screening Facility CCSP: Certified Cargo Screening Program CDB: Caribbean Development Bank CDER: Center for Drug Evaluation and Research CDO: Collateralized Debt Obligation CDS: Credit Default Swap CE: Conformité Européenne (European Conformity) CEMA: Customs and Excise Management Act CEN: Bureau of the Census CEO: Chief Executive Officer CERTS: Cargo Enforcement Reporting and Tracking System CES: Centralized Examination Station CET: Contraband Enforcement Team C&F: Cost and Freight CFA: Chartered Financial Analyst CFC: Consumption of Fixed Capital CFCT: Cash Flow Cycle Time CFI: Court of First Instance CFM: Certified Financial Manager CFO: Chief Financial Officer CFR: Code of Federal Regulations or Cost and Freight CFS: Container Freight Station or Consolidated Financial Statement CFTA: Chile Free Trade Agreement CG: Consul General CGBP: Certified Global Business Professional CHB: Customs House Broker CHP: California Highway Patrol CIA: Certified Internal Auditor or Cash In Advance CIBER: Center for Intentional Business and Education Research CIC: Credit Industriel et Commercial CIF: Cost Insurance Freight CIF&C: Cost Insurance Freight and Commission CIF&E: Cost Insurance Freight and Exchange (currency from USD to foreign money) CIMA: Chartered Institute of Management Accountants CIP: Carriage and Insurance Paid CISA: Certified Information Systems Auditor CISG: [Convention on] Contracts for the International Sale of Goods CITD: Center for International Trade Development CITES: Convention against the International Trade in Endangered Species CIV: Civil End Users CJ: Commodity Jurisdiction CMA: Certified Management Accountant CMB: China Merchants Bank CMO: Chief Marketing Officer CMR: Customized Market Research COB: Close of Business COCOM: Coordinating Committee on Multilateral Export Controls COD: Cash On Delivery COGS: Cost of Goods Sold COO: Chief Operating Officer COQ: Cost Of Quality CPA: Certified Public Accountant CPF: Cost Plus Fee CPFF: Cost Plus Fixed Fee CPI: Cost Performance Index CPIF: Cost Plus Incentive Fee CPM: Critical Path Method CPP: Certified Payroll Professional or Certificate of a Pharmaceutical Product CPPC: Cost Plus Percentage of Cost CPSA: Consumer Product Safety Act CPSC: Consumer Product Safety Commission CPT: Carriage Paid CRF: Clean Report of Findings CROSS: Customs Ruling Online Search System CRM: Customer Relationship Management CSMS: Cargo Systems Messaging Service CS: Commercial Service (U.S.) C/S: City/State CSGCL: Crop Systems and Global Change Lab CSI: Container Security Initiative CSO: Chief Security Officer CTO: Chief Technology Officer C-TPAT: Customs Trade Partnership Against Terrorism CV: Cost Variance CVD: Countervailing Duty CVP: Cost Volume Profit CW: Chemical Weapons Convention CWBS: Contract Work Breakdown Structure CWO: Cash With Order CY: Container Yard C&F: Cost With Freight
- D/A: Documents against Acceptance DAP: Delivered At Place DAT: Delivered At Terminal DCM: Deputy Chief of Mission DD: Data Date or Date Draft DDA: Depletion Depreciation Amortization or Doha Development Agenda DDP: Delivered Duty Paid DDTC: Directorate of Defense Trade Controls DEA: Drug Enforcement Agency DEC: District Export Council DG: Directorate General DITO: District International Trade Officer DOC: Department of Commerce DOD: Department of Defense DOJ: Department of Justice DOL: Department of Labor DOS: Department of State D/P: Documents against Payment DPL: Denied Persons List DSB: Dispute Settlement Body DSM: Dispute Settlement Mechanism DSP-16: Temporary Import License DSU: Dispute Settlement Understanding DWD: Division of Workforce Development
- EAC: Estimate At Completion EAR: Export Administration Regulations or Effective Annual Rate EAR-99: No License Required EARS: Exodus Accountability Referral System EAY: Effective Annual Yield EB5: Immigrant Investor Visa EBIT: Earnings before interest and taxes EBITDA: Earnings before Interest, Taxes, Depreciation and Amortization EC: European Community ECA: Bureau of Educational and Cultural Affairs ECC: EXODUS Command Center ECCN: Export Control Classification Number ECGD: Export Credit Guarantee Department ECJ: European Court of Justice ECP: Electronic Commerce Project ECU: European Currency Unit ED: Department of Education EDA: Economic Development Administration EDI: Electronic Data Interchange EDN: Enterprise Development Network EEB/IFD: Bureau of Economic, Energy and Business Affairs’ International Finance and Development EEC: European Economic Community EEI: Electronic Export Information EF: Early Finish EFTA: European Free Trade Area EFTPOS: Electronic Funds Transfer at Point of Sale EI: Encryption Item EIN: Employer Identification Number ELAN: Export Legal Assistance Network EM: Excluded Methods EMC: Export Management Company EMP: Emerging Markets Program EMS: European Monetary System EMV: Expected Monetary Value ENM: Estimated National Mean EPA: Environmental Protection Agency EPLS: Excluded Parties List System EPS: Earnings Per Share EREA: Export Reform and Enhancement Act ERS: Economic Research Service ES: Early Start ETC: Estimate To Complete or Export Trading Company ETV: Environmental Technology Verification EU: European Union EUROFER: European Confederation of Iron and Steel Industries EV: Earned Value EVM: Earned Valued Management EVT: Earned Valued Technique EWCP: Export Working Capital Program EX: Export EXIM: The Export-Import Bank of the United States EXW: Ex-Works
- FARAD: Food Animal Residue Avoidance Database FAS: Foreign Agricultural Service or Free Alongside Ship FAST: Free and Secure Trade Program FC: Firearms Control FCA: Free Carrier FCIB: Finance, Credit, and International Business FCPA: Foreign Corrupt Practices Act FCL: Full Container Load FDA: Food and Drug Administration FDDCA: Federal Food Drug and Cosmetic Act FDI: Foreign Direct Investment FEDERTESSILE – Italian Textile Foundation FF: Free Float or Finish to Finish FFP: Firm Fixed-Price FFW: Freight Forwarder FGIS: Federal Grain Inspection Service FGP: Facility Guarantee Program FIATA: International Federation of Freight Forwarders Association FIFO: First In First Out FITA: Federation of International Trade Associations FITT: Forum for International Trade Training FIX: Financial Information Exchange FL: Financial Leverage FLT: Foreign Labor Trends FMC: Federal Maritime Commission FMEA: Failure Mode and Effect Analysis FMC: Federal Maritime Commission FMD: Foreign Market Development FOB: Freight On Board FOMC: Federal Open Market Committee FP&A: Financial Planning & Analysis FPIF: Fixed Price Incentive Fee FPO: Follow on Public Offer FPPI: Foriegn Principal Party in Interest FS: Foreign Service of Finish to Start FSIN: Food Safety and Inspection Service FSMA: Food Safety Modernization Act FSO: Foreign Service Officer FSN: Foreign Service National FTA: Free Trade Agreement or Foreign Trade Association FTD: Foreign Trade Division FTE: Full-Time Equivalent FTR: Foreign Trade Regulations FTZ: Foreign Trade Zone FUSE: Featured United States Exporter FWS: Fish and Wildlife Service FX: Foreign Exchange FY: Fiscal Year
- GAAP: Generally Accepted Accounting Principles GAAS: Generally Accepted Audit Standards GAO: General Accounting Office GATS: General Agreement on Trade in Services GATT: General Agreement on Tariffs and Trade GBS: Group B Shipments GDP: Gross Domestic Product GEO: Genetically Engineered Organism GFCF: Gross Fixed Capital Formation GL: General Leger GLV: General License, Limited Value GM: Genetically Modified GMO: Genetically Modified Organism GMP: Good Manufacturing Practice GNP: Gross National Product GP: Gross Profit GPO: Government Printing Office GRAS: Generally Regarded As Safe GRI: General Rules of Interpretation GRN: Goods Receipt Note GSA: General Services Administration GSM: General Sales Manager GSP: Gross State Product or General System of Preferences GUIDEC: General Usage for Internationally Digitally Ensured Commerce
- HH: used personal effects and household goods HQ: Headquarters HR: Human Resources HS: Harmonized Schedule/System HSI: Homeland Security Investigations HTS: Harmonized Tariff Schedule
- IAC: International Air Carrier IAQG: International Aerospace Quality Group IATA: International Air Transport Association IATTO: International Association of Trade Training Organizations IBC: India Business Center IBRD: International Bank for Reconstruction and Development (World Bank Group) ICAO: International Civil Aviation Organization ICB: Industry Classification Benchmark ICC: International Chamber of Commerce ICE: Immigration and Customs Enforcement ICP: International Company Profile ICPA: International Compliance Professionals Association ICRM: Innovative Customer Relationship Management IDA: International Development Association IDB: International Database or Inter-American Development Bank IE: Interest Expense IFB: Invitation for Bid IFC: International Finance Corporation IFIA: International Federation of Inspection Agencies ILO: International Labour Organization ILSA: Iran and Libya Sanctions Act IM: Import IMF: International Monetary Fund INCOTERMS: International Commercial Terms (Terms of Sale) IND: Investigational New Drug IOE: Institute Of Export IPO: Initial Public Offering IPS: International Partner Search IPRS: Intellectual Property Rights Search IR: Interest Rate ISBP: International Standard Banking Practice ISF: Importer Security Filing ISO: International Organization for Standardization ISP: International Standby Practices ISPS: International Ship and Port Facility Security ITA: International Trade Administration ITAR: International Traffic in Arms Regulations ITC: International Trade Commission ITDC: International Trade Data System ITN: Internal Transaction Number ITO: International Trade Organization IVC: International Visitor’s Council IVLP: International Visitor Leadership Program
- JTTF: Joint Terrorism Task Force
KSA: Knowledge, Skills and Abilities - LACBFFA: Los Angeles Customs Brokers and Freight Forwarders Association LBO: Leveraged Buyout LC: Letter of Credit LCL: Less than a container load LCB: Licensed Customs Broker LCIA: London Court of International Arbitration LDC: Less Developed Country LF: Late Finish LIBOR: London Interbank Offered Rate LIFFE: London International Financial Futures Exchange LIFO: Last In First Out LLC: Limited Liability Company LOE: Level of Effort LS: Late Start LVS: Limited Value Shipments
- MAC: Market Access and Compliance MAP: Market Access Program MARAD: Maritime Administration MAS: Manufacturing and Services MBDA: Minority Business Development Agency MBEC: Minority Business Enterprise Center MCC: Millennium Challenge Corporation MDB: Multilateral Development Bank MDCP: Market Development Cooperator Program MENA:Middle East and North Africa MEP: Manufacturing Extension Partnership MET: Merchandise Examination Team MFN: Most Favored Nation MOQ: Minimum Order Quantity MS: exports to and for use by U.S. Military MSA: Metropolitan Statistical Area MSDS: Material Safety Data Sheets MSME: Mirco, Small, and Medium-sized Enterprise MSOD: Monthly Statement of Select Operational Data MT: Missile Technology MTD: Month To Date
- NABEC: Native America Business Enterprise Center NACM: National Association of Credit Managers NAD: National Appeals Division NAFTA: North American Free Trade Agreement NAICS: North American Industry Classification System NAL: National Agricultural Library NASBITE: North American Small Business International Trade Educators NATO: North Atlantic Treaty Organization NAV: Net Asset Value NCBFFA: National Customs Brokers and Freight Forwarders Association NCND: Non-Circumvent and Non-Disclosure NCSCI: National Center for Standards and Certification Information NDA: Non-Disclosure Agreement or New Drug Application NESOI: Not Elsewhere Special Or Indicated NGO: Non-Governmental Organization NICB: National Insurance Crime Bureau NIST: National Institute of Standards and Technology NLR: No License Required NMFS: National Marine Fisheries Service NOA: Net Operating Assets NOAA: National Oceanic and Atmospheric Administration NOP: National Organic Program NOPAT: Net Operating Profit After Tax NOSB: National Organic Standards Board NP: Nuclear Nonproliferation NPV: Net Present Value NRC: Nuclear Regulatory Commission NRCS: National Resource Conservation Service NS: National Security NTIS: National Technical Information Service NVOC: Non-Vessel Owning Carrier NVOCC: Non-Vessel Operating Common Carrier
- O/A: Open Account OASIS: Online Aerospace Supplier Information System OBS: Organizational Breakdown Structure OC Opportunity Cost OCC: Organic Trade Association’s Certifiers Council OD: Original Duration ODSIR: Office of Drug Security, Integrity, and Recalls OECD: Organization for Economic Cooperation and Development OEE: Office of Export Enforcement OEM: Original Equipment Manufacturer OET: Outbound Enforcement Team OFAC: Office of Foreign Assets Control OFPA: Organic Foods Production Act OIT: Office of International Trade or Ocean Transportation Intermediary OMA: Orderly Marketing Arrangement OMB: Office of Management and Budget OMRI: Organic Materials Review Institute OPEC: Organization of the Petroleum Exporting Countries OPEX: Operational Expenditures OPIC: Overseas Private Investment Corporation OPMT: Other Party Management Team OPT: Option OS: General Exports OTA: Organic Trade Association OTC: Over The Counter drug OTEXA: Office of Textiles and Apparel OTII: Office of Trade and Industry Information OWIT: Organization of Women in International Trade
- PACA: Perishable Agricultural Commodities Act PAPS: Pre-Arrival Processing System PARS: Pre-Arrival Review System PC: Percent Complete PCAL: Provisional Certification Action Level PDM: Precedence Diagramming Method PDP: Pesticide Data Program P/E: Price to Earnings Ratio PEC: President’s Export Council PEFCO: Private Export Funding Corporation PEPFAR: President’s Emergency Plan for AIDS Relief PF: Planned Finish PKI: Public Key Infrastructure PM: Project Manager PMAC: Period Moving Average Cost PMIS: Project Management Information System PMO: Program Management Office or Project Management Office PMP: Project Management Professional PO: Purchase Order or Profit Objective or Principle Officer POA: Power of Attorney POTUS: President of the United States PP&E: Property, Plant and Equipment PPI: Principal Party in Interest PPP: Purchasing Power Parity P&L: Profit and Loss PMBOK: Project Management Body Of Knowledge POFEC: Principles Of Fair Electronic Contracting POW: Program of Work PS: Planned Start PSI: Pre-shipment Inspection Service PSWBS: Project Summary Work Breakdown Structure PTO: Patent and Trademark Office PV: Planned Value
- QA: Quality Assurance
QAC: Quality Assurance Committee
QC: Quality Control
QR: Quantitative Restrictions
QTD: Quarter-to-Date
RAM: Responsibility Assignment Matrix RBS: Resource Breakdown Structure or Risk Breakdown Structure RD: Remaining Duration RE: Retained Earnings RFP: Request For Proposal RFQ: Request For Quotation ROA: Return On Assets ROCE: Return On Capital Employed ROE: Return On Equity ROEB: Regulations, Outreach and Education Branch ROI: Return On Investment ROIC: Return On Invested Capital RONA: Return On Net Assets RoRo: Roll-on, Roll-off ROS: Return On Sales RPL: Service & Replacement of Parts & Equipment RR: Resource Rent R&D: Research and Development RS: Regional Stability RTA: Regional Trade Agreement RTA-IS: Regional Trade Agreement Information System - St: Sales (during time period t) SABIT: Special American Business Internship Training SAD: Single Administrative Document SBA: Small Business Administration SBDC: Small Business Development Center SBIC: Small Business Investment Company SCM: Supply Chain Management SCO: Senior Commercial Officer SCORE: Service Corps of Retired Executives SEVIS: Student and Exchange Visitor Information System SEVP: Student and Exchange Visitor Program SF: Scheduled Finish SG&A: Sales, General, and Administrative expenses SGS: Société Générale de Surveillance SI: Significant Item SIC: Standard Industrial Classification SIDO: State International Development Office SIOP: Sales Inventory and Operations Plan SIPRI: Stockholm International Peace Research Institute SIR: Stores Issuance Requisition SIV: Structured Investment Vehicle SL: Surreptitious Listening SLI: Shipper’s Letter of Instruction SME: Small and Medium-sized Enterprises or Subject Matter Expert SNAP-R: Simplified Network Application Process Redesign SOHO: Small Office/Home Office SOW: Statement of Work SOX: Sarbanes-Oxley SPI: Scheduled Performance Index SR&CC: Strikes, Riots and Civil Commotions SRN: Shipment Reference Number SRTG: State Regional Trade Group SS: Short Supply or Scheduled Start STEP: State Trade Export Promotion STOP!: Strategy Targeting Organized Piracy SV: Schedule Variance SWIFT: Society for Worldwide Interbank Financial Telecommunication SWOT: Strengths, Weaknesses, Opportunities, and Threats
- T&M: Time and Material TAA: Trade Adjustment Assistance TAP: Technical Advisory Panel TBR: Trade Barriers Regulation TBT: Technical Barriers to Trade TC: Target Completion TCC: Trade Compliance Center TCO Total Cost of Ownership TDA: Trade and Development Agency TE: Temporary Exports TEAS: Trademark Electronic Application System TEU: Twenty-foot Equivalent Unit TF: Total Float or Target Finish TIC: Trade Information Center TIMS: Trade-related Investment Measures Agreement TMP: Temporary Imports, Exports & Reexports TPRM: Trade Policy Review Mechanism TQM: Total Quality Management TRIPS: Agreement on Trade Related Aspects of Intellectual Property Rights TRN: Transportation Shipment Number TS: Target Start TSA: Transportation Security Administration TSR: Technology and Software Restricted or Total Shareholder Return TSU: Technology & Software Unrestricted TTB: Alcohol and Tobacco Tax and Trade Bureau TWIC: Transportation Worker Identification Credential
- UCP 500: Uniform Customs and Practice for Documentary Credits ULD: Unit Load Devices UN: United Nations or United Nations Embargo UNCITRAL: United Nations Commission on International Trade Law UNCTAD: United Nations Conference on Trade and Development URC: Uniform Rules for Collection URCB: Uniform Rules for Contract Bonds URDG: Uniform Rules for Demand Guarantees UREC: unavoidable residual environmental contamination US: United States USAID: United States Agency for International Development USC: United States Code USD: United States Dollar USDA: United States Department of Agriculture USDOC: United States Department of Commerce USEAC: United States Export Assistance Center USG: United States Government USITC: United States International Trade Commission USML: U.S. Munitions List USPPI: U.S. Principal Party in Interest USTDA: United States Trade and Development Agency USTR: Office of the United States Trade Representative
- VACIS: Vehicle And Cargo Inspection Station VAT: Value Added Tax VE: Value Engineering VER: Voluntary Export Restraint VIP: Very Important Person VSD: Voluntary Self Disclosure
- WACC: Weighted Average Cost of Capital WAG: Wild Ass Guess WBS: Work Breakdown Structure WC: Working Capital WCF: World Chambers Federation WCN: World Chambers Network WCO: World Customs Organization WFG: Wharfage WHO: World Health Organization WIP: Work in Progress WIPO: World Intellectual Property Organization WMD: Weapons of Mass Destruction WMO: World Meteorological Organization WP: Warsaw Pact or WordPress WPM: Wood Packaging Material WSC: World Shipping Council WTA: World Trade Association WTC: World Trade Center WTCA: World Trade Centers Association WTDR: World Traders Data Report WTI: World Trade Institute WTO: World Trade Organization or World Tourism Organization WWW: World Wide Web
- YOY: Year Over Year
YTD: Year To Date
ZC: Zangger Committee ZIBOR: Zurich Interbank Offered Rate
- We recommended that you become familiar with the key terms listed here in preparation for the CGBP examination.
For a complete list of international trade terms, we recommend the Dictionary of International Trade, 10th Edition - Handbook of the Global Trade Community by Edward G. Hinkelman and published by World Trade Press. - Acceptance: An agreement to purchase goods at a stated price and under stated terms.
Accession: The process of becoming a member of the General Agreement on Tariffs and Trade.
Actual Total Loss: A marine insurance term; a ship is usually considered an actual total loss for insurance purposes when it has been listed as missing.
Ad Valorem Rate: An import duty rate determined “according to the value” (ad valorem) of the commodity entering a country, as opposed to the weight or other basis for calculation. An ad valorem tariff is a tariff calculated as a percentage of the value of the goods when clearing customs.
Advance Against Documents: A loan secured by turning over shipment documents of title to the creditor; an alternative to acceptance financing.
Advice: A form or letter that acknowledges certain activities concerning shipments, credits, etc.
Advising Bank: A bank, operating in the exporter’s country, which handles Letters of Credit for a foreign bank by notifying the export firm that the credit has been opened in its favor. The advising bank fully informs the exporter of the conditions of the Letter of Credit without necessarily bearing the responsibility of payment.
Automated Export System: The mandatory electronic system through which export information is required to be filed. More information can be found at www.export.gov/logistics/aes
African Development Bank and Fund: Established to foster economic and social development of the independent African nations and to promote their mutual economic cooperation. AFDB membership is limited to African countries. The African Development Fund (AFDF), a loan facility, directs its loan resources towards social development projects.
Affreightment, contract of: An agreement between a shipping company and an importer or exporter for cargo space on a vessel at a specified time for a specified price. The importer/exporter is liable for payment whether or not the shipment is made at the time agreed upon.
After Date: A payment on a draft or other negotiable instrument due a specified number of days after the date the draft is presented to the payee.
After Sight: A payment on a draft or other negotiable instrument due upon presentation or demand to the payee.
Agio: Premium paid for exchanging currency.
Agency for International Development: Created in 1961 to administer foreign economic assistance programs of the U.S. government.
Air Waybill: A bill of lading covering both the domestic and international portions of flights to transport goods to a specific destination. The air waybill serves as a non-negotiable receipt for the shipper.
All-risk Clause: An insurance clause providing that all loss or damage to goods is insured except that caused by shipper.
Alongside: This refers to the side of a ship, i.e., goods are to be located on the dock or barge within reach of the transport ship’s tackle in order to be loaded aboard the ship.
AmChams: American Chambers of Commerce in foreign countries. As affiliates of the U.S. Chamber of Commerce, 84 AmChams, located in 59 countries, collect and disseminate extensive information on foreign markets. While membership fees are usually required, the small investment can be worth it for the information received.
Anti-dumping Duty: A tariff imposed to discourage the underpriced (below foreign country’s domestic market) sale of foreign goods in the U.S. market, which might hurt U.S. manufacturers.
Arbitrage: The practice of buying foreign currency, stocks and bonds and other commodities in one country or a number of countries and selling them in another market at a higher price to gain an advantage from the differences in exchange rates.
Arbitration Clause: A clause in a sales contract detailing how any contract disputes will be settled.
Arrival Notice: This document advises consignees (named in the bill of lading) that cargoes have arrived, the condition of the cargo if other than expected, and any charges due.
Association of Southeast Asian Nations: An economic cooperation which includes Thailand, Indonesia, Malaysia, Singapore, Philippines and Brunei. The ASEAN Alliance for Mutual Growth (AMG) is a multilateral initiative to encourage mutually beneficial trade relations between the United States and the ASEAN countries.
Asia-Pacific Economic Cooperation: A forum to advance economic cooperation and trade and investment liberalization in the Asia-Pacific region, chaired by Indonesia. APEC goals in addition to trade liberalization include human resource development, growth of small and medium-sized businesses and infrastructure development.
Asian Development Bank (ADB): Created to foster economic growth and cooperation in the region of Asia and the Far East and to help accelerate economic development for the countries of the region.
At Sight: A phrase indicating that payment on a draft or other negotiable instrument is due upon presentation or demand.
Authority To Pay: A letter, used mostly in the Far Eastern trade, addressed by a bank to a seller or merchandise, notifying him that it is authorized to purchase, with or without recourse, drafts to a stipulated amount drawn on a certain foreign buyer in cover of specific shipments of merchandise.
- Back-To-Back Credits: A term commonly used to denote letters of credit issued for account of different buyers to cover the same shipment, the terms of which credits are similar that documents under one are subsequently applicable against one another.
Bank Guarantee: An assurance, obtained from a bank by a foreign purchaser, that the bank will pay an exporter up to a given amount for goods shipped if the foreign purchaser defaults.
Banker’s Acceptance: Occurs when a draft is drawn on and accepted by the importer’s bank. Depending on the bank’s credit worthiness, the acceptance becomes a financial instrument which can be discounted.
Barter: Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible.
Beneficiary: The person in whose favor a draft is drawn or a Letter of Credit is opened.
Bill Of Exchange: A written unconditional order for payment from a drawer to a drawee, directing the drawee to pay a specified amount of money in a given currency to the drawer or a named payee at a fixed or determinable future date (also called a draft).
Bill Of Lading: A document establishing the terms of a contract between a shipper and a transportation company for freight to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage and a receipt for goods.
Binder: Temporary insurance coverage pending the insurance of an insurance policy or certificate.
Bonded Warehouse: A warehouse authorized by customs authorities for storage of goods where payment of duties on the goods is deferred until they are removed from the warehouse.
Booking: An arrangement with a steamship company for the acceptance and carriage of freight.
Bulk-Freight Container: This container allows bulk commodities to be grasped by roll loading hatches and has a front wall discharge hatch.
Buyer Credit: Term to provide the exporter with prompt payment by the overseas importer, who borrows the necessary funds from the bank. The payment is usually made directly by the importer’s bank to the exporter.
- Carnet: Standardized international customs document, known as an ATA (admission temporaire/temporary admission) carnet, that is used to obtain duty-free temporary transport/admission of certain professional/commercial goods (such as advertising material, commercial samples, or equipment) into those countries that are signatories to the ATA Convention without paying customs duties and taxes or posting a bond at the border.
Caribbean Community and Common Market: Founded in 1973. Member countries are Antigua, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent, Trinidad and Tobago and Anguilla. Headquarters are in Guyana. Related organizations are the Caribbean Investment Corporation and the Caribbean Monetary Fund.
Cash Against Documents: A payment method by which title to the goods is given to the buyer when the buyer pays cash to an intermediary acting for the seller, usually a commission house.
Cash In Advance: A payment method for goods in which the buyer pays cash to the seller before shipment of the goods. Usually required by the seller when the goods are customized, such as specialized machinery.
Cash With Order: A payment method for goods by which cash is paid at the time of order and the transaction then becomes binding for both the buyer and seller.
Caribbean Development Bank: Founded in 1970, provides financing to foster economic development and integration in the Caribbean. The CDB’s members are the governments of Antigua, Bahamas, Barbados, Belize, British Virgin Islands, Canada, Cayman Islands, Colombia, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent, Trinidad and Tobago, Turks and Caicos Islands, the United Kingdom, and Venezuela. Headquarters are located in Barbados.
CE Mark: Also known as CE Marking, this mark is a mandatory conformance mark on many products being sold in the European Economic Area. It is a key indicator of a product’s compliance with European Union legislation.
Certificate Of Inspection: A document often required in connection with shipments of perishable goods, in which certification is made as to the good condition of their merchandise immediately prior to shipment.
Certificate Of Manufacture: Statement by a producer, who is usually also the seller, of merchandise that manufacture has been completed and that the goods are at the disposal of the buyer.
Certificate Of Origin: A certified document detailing the origin of goods used in foreign commerce. Usually required to qualify for reduced tariffs or duties, specified in the terms of a trade agreement, such as the North American Free Trade Agreement (NAFTA).
Charter Party: Renting of an entire vessel or part of its freight space for a specified voyage or stipulated period of time.
Clean Bill of Lading: A document specifying that the goods were received in “apparent good order” by the carrier.
Clean Draft: A draft to which no documents are attached.
Coordinating Committee on Multilateral Export Controls: A committee of all NATO countries (except Iceland) plus Japan to coordinate and control exports of member countries, especially in high-technology equipment.
Collection: The process that entails an exporter providing the bill for an overseas transaction to his/her bank to collect funds. The bank charges a fee to collect payment, but is not liable should the importer refuse to release the funds.
Collection Documents (collection papers): All documents, including bills of lading, invoices and other papers, submitted to a buyer to receive payments for a shipment.
Commercial Attaché: Commerce expert on the diplomatic staff of their country’s embassy or large consulate. The attaché is a good point of contact for those seeking market advice or information.
Commercial Invoice: Itemized list of goods shipped, usually included among an exporter’s collection papers.
Conditional Free: Goods free of duty under certain conditions, if the conditions can be satisfied.
Confirmed Letter of Credit: A Letter of Credit issued by a foreign bank with payment confirmed by a U. S. bank. An exporter who requires a confirmed Letter of Credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults.
Consignment: The delivery of merchandise from an exporter to a distributor specifying that the distributor will sell the merchandise and then pay the exporter. The exporter retains title to the goods until the buyer sells them. The buyer (distributor) sells the goods, retains a specified commission and then pays the exporter.
Consignor: The seller or shipper of merchandise.
Consul: A government official residing in a foreign country charged with representing the interests of his country and its nationals.
Consular Declaration: A formal statement describing goods to be shipped, made out to the consul of the country of destination. Approval from the consul must be obtained prior to shipment.
Consular Invoice: A document required by some foreign countries showing exact information about the consignor, consignee, value and description of shipment. This documents helps protect the foreign Custom's Authority to collect the proper tax due upon entry; by comparing the declared value with the commercial value, the Consulate helps to protect against under-valuation of goods with the intent to avoid tariff fees.
Container: A uniform, sealed, reusable metal “box” in which merchandise is shipped by vessel, truck or rail. Standard lengths include 10, 20, 30 and 40 feet (40 foot lengths are generally able to hold about 40,000 pounds). Containers of 45 and 48 feet are also used, as well as containers for shipment by air.
Container Load: Adequate merchandise to fill a container (either by bulk or weight).
Conventional Tariff: A tariff established in the agreements resulting from tariff negotiations under the GATT.
Convertible Currency: Currency that can be bought or sold for other currencies at will.
Correspondent Bank: A bank that, in its own country, handles the business of a foreign bank.
Cost and Freight (named port): The seller must pay all costs of goods and transportation to the named port; these costs are included in the price quoted. Buyer pays risk insurance once the goods are aboard the ship up to overseas inland destination.
Cost, Insurance, Freight (named port): Same as C&F except seller also provides insurance up to the named destination.
Cost, Insurance, Freight and Commission: Price includes commission as well as C.I.F.
Cost, Insurance, Freight Duty Paid: The seller includes in the final price to the buyer, in addition to C.I.F., the estimated U.S. duty.
Cost, Insurance, Freight and Exchange: Price quoted includes currency exchange from U.S. dollars to foreign money as well as C.I.F.
Count Certificate: This particular document will certify the accuracy and quantity of a shipment with regard to the count of its parts or units.
Countertrade: The sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a foreign country (see barter).
Countervailing Duty: A duty imposed to counter unfairly subsidized products.
Credit Risk Insurance: Insurance which protects the seller against loss due to default on the part of the buyer.
Customhouse Brokers: A person or firm, licensed by the U.S. Treasury Department, engaged in clearing goods through U.S. Customs. A broker’s duties include preparing the entry form and filing it; advising the importer on duties to be paid; advancing duties and other costs; and arranging for delivery to the broker’s client, the trucking firm or other carrier.
Customs Declaration: Document that traditionally accompanies exported goods, bearing such information as the nature of the goods, their value, the consignee, and their ultimate destination. Required for statistical purposes, it accompanies all controlled goods being exported under the appropriate permit.
Customs Invoice: Document used to clear goods through customs in the importing country by providing evidence of the value of goods. In some cases, the commercial invoice may be used for this purpose.
Customs Tariff: Charges imposed by the U.S. government and most other governments on imported and/or exported goods.
- Date Draft: A draft payable a specified number of days after the date it was issued, regardless of the date of acceptance.
Deferred Payment Credit: Type of Letter of Credit providing for payment some time after presentation of shipping documents by exporter.
Delivered At Frontier: Term referring to the seller’s obligation to supply goods which conform with the contract. At his or her own risk and expense, the seller must deliver the to the buyer at the specified time and the specified frontier. The buyer is responsible for complying with import formalities and payment of duties.
Delivery Instructions: A document prepared by the freight forwarder that provides information for the trucking or railroad company as to where the goods are to be delivered.
Delivery Duty Paid: Term referring to the seller’s obligation to supply goods according to the terms of the contract. At his or her own risk and expense, the seller must deliver the goods, duty paid, at the specified time and the specified frontier, after complying with all necessary formalities at that frontier.
Demurrage: Excess time taken to load or unload a vessel. A sum agreed to be paid to the ship owner for the excess time taken for loading or unloading not caused by the vessel operator, but due to the acts of a charterer or shipper. Also refers to imported cargo not picked up within prescribed time.
Destination Control Statement: One of a number of statements required by the U.S. Government to be displayed on export shipments specifying the authorized destinations for the shipments.
Direct Exporting: Sales by the exporter directly to a buyer or distributor located in a foreign country, rather than through an export management company or other third party.
Distribution License: A license given to an export to replace numerous individual validated licenses when there is continuous shipping of authorized products.
Distributor: A foreign agent who sells directly in the foreign market for a U.S. supplier and maintains an inventory of the supplier’s products.
Dock Receipt: Receipt issued by an ocean carrier or its agent for merchandise delivered at its dock or warehouse awaiting shipment.
Documents: The shipping and other papers customarily attached to foreign drafts, consisting of ocean bills of lading marine insurance certificates, and commercial invoices. Where required, certificates of origin and consular invoices are included.
Documentary Collection: A transaction in which the bank handles the transaction (instead of an individual, shipper, or postal service/COD); and cash is paid for delivery of a title document (e.g., bill of lading) instead of the actual goods. This title document is then used to claim the goods from the shipper.
Document Of Title: Evidence of entitlement or ownership, such as a carrier’s negotiable bill of lading, which allows a party to claim title to the goods in question.
Documents Against Acceptance: Instructions by a shipper to a bank indicating that documents transferring title to the goods should be given to the buyer only after the buyer’s signing a time draft. Thus the exporter extends credit to the importer and agrees to accept payment at a named future date.
Documents Against Payment: Payment for goods without a guaranteed form of payment in which the documents transferring title to the goods are not given to the buyer until he/she has signed a sight draft.
Duty: A tax levied by a government on an import, an export or the use and consumption of goods.
Duty Drawback: A partial refund of duties paid on importation of goods which are further processed and then re-exported, or exported in same condition as imported.
- Export Administration Regulations: Information can be found at www.access.gpo.gov/bis/ear/ear_data.html
E-commerce: The practice of buying and selling online.
European Economic Community: An economic grouping of countries also known as the European Common Market, organized by the Treaty of Rome in 1957. Member countries are Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom. The EEC was the largest trading bloc in the world until the North American Free Trade Agreement created a larger market beginning in January 1994.
Embargo: A restriction or prohibition upon exports or imports, for specific products or specific countries. Embargoes may be ordered by governments due to warfare, or are intended for political, economic or sanitary purposes.
Entry Papers: Documents which must be filed with U.S. Customs officials describing goods imported, such as the commercial invoice, Ocean Bill of Lading or Carrier Release.
Euro: Eleven member states of the EU, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain, adopted a single currency, the euro, on January 1, 1999.
Ex-dock: Term used by exporter to describe net costs of goods at placement of the dock at the import point.
Ex-mill (ex-warehouse, ex-mine, ex-factory): Obligates the seller to place a specified quantity of goods at a specified price at his warehouse or plant, loaded on trucks, railroad cars or any other specified means of transport. Obligates the buyer to accept the goods in this manner and make all arrangements for transportation.
Export Declaration: A formal statement made to Customs at the exit port declaring full particulars about goods being exported.
Export Control Classification Number: Information can be found at www.export.gov/logistics/eg_main_018803.asp
Export Express: The simplest export loan product offered by the Small Business Administration. Export Express allows participating lenders to use their own forms, procedures and analyses.
The Export-Import Bank of the United States: The United State's official export credit agency.
Export License: A US government-issued permit required to export certain commodities and quantities to certain destinations. Export licenses are needed to export technologies such as hardware, software, technical data and services. Information on export license regulations and other goods requiring export license can be found at www.bis.doc.gov or, in the case of military equipment, under ITAR administered by the Department of State.
Export Management Company: A firm that acts as a complete export arm for a company’s exporting needs. Usually an EMC will pay all expenses and receive compensation in the form of a discount off the U.S. price of the product. An organization which, for a commission, acts as a purchasing agent for either a buyer or seller.
Export Quotas: Restrictions or set objectives on the export of specified goods imposed by the government of the exporting country. Such restraints may be intended to protect domestic producers and consumers from temporary shortages of certain materials or as a means to moderate world prices of specified commodities. Commodity agreements sometimes contain explicit provisions to indicate when export quotas should go into effect among producers.
Export Rate: A freight rate specially established for application on export traffic and generally lower than the domestic rate.
Export Trading Company: A business that acts as a complete export service house and, in addition, takes title to a company’s exported goods. Unlike an EMC, which represents specific companies, an ETC determines what U.S. products are desired in a given market and then searches for/works with U.S. producers to satisfy the demand.
Export Working Capital Program: A product through which the Small Business Administration provides lenders with up to a 90% guaranty on export loans as a credit enhancement, so that the lenders will make the necessary export working capital available to small business exporters.
Ex-ship: An international trade term meaning that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contract. The seller must bear the full cost and risk involved in bringing the goods to the buyer.
Ex-works: An international trade term meaning that the seller’s only responsibility is to make the goods available at seller’s premises. The seller is not responsible for loading the goods on the vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved in bringing the goods from there to buyer’s desired destination. This term thus represents the minimum obligation for the seller.
- Factoring Houses: Types of companies which purchase international accounts receivable at a discount price, usually about two to four percent less than their face value. The fee charged the exporter is offset by the immediate availability of payment, plus the reduction in risk for the exporter.
Freight On Board Freight Allowed: The same as F.O.B. named inland carrier, except the buyer pays the freight charges of the inland carrier and the seller reduces the invoice by that amount.
Freight On Board Freight Prepaid: The same as F.O.B. named inland carrier, except the seller pays the freight charges of the inland carrier.
Freight On Board Named Inland: Carrier seller must place the goods on the named carrier at the specified inland point and obtain a bill of lading. The buyer pays for the transportation.
Freight On Board Named Port of Exportation: Seller is responsible for placing the goods at a named point of exportation at the seller’s expense. Some European buyers use this form when they actually mean F.O.B. vessel.
Freight On Board Vessel: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.
Force Majeure: The title of a standard clause in marine contracts relieving the parties for responsibility upon nonfulfillment of their obligations resulting from conditions beyond their control (like earthquake, floods or war).
Foreign-based Agent/Distributor: An individual or firm serving as the foreign representative of U.S. suppliers, locating buyers for them in the foreign market.
Foreign Branch Office: A sales (or other) office maintained in a foreign country and staffed by direct employees of the exporter.
Foreign Corrupt Practices Act: Act making it unlawful for persons or firms subject to US jurisdiction to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business, or to make a payment to any person while knowing that all or a portion of that payment will be used in this manner.
Foreign Sales Agent: An agent residing in a foreign country who acts as a sales representative for your company’s products.
Foreign Trade Zone Entry: A form declaring goods which are brought duty-free into a Foreign Trade Zone for further processing or storage and subsequent exportation and/or consumption.
Forfaiting: Forfaiting, similar to factoring, is an arrangement under which exporters actually forfeit their rights to future payment in return for immediate cash. The arrangement is commonly used for sales of capital equipment with terms of one to five years.
Free Alongside (or free alongside steamer): The seller must deliver the goods to a pier and place them within reach of the ship’s loading equipment. The buyer arranges ship space and informs the seller when and where the goods are to be placed.
Free of Capture and Seizure: An insurance clause providing that loss is not insured if due to capture, seizure, confiscation and like actions, whether legal or not, or from such acts as piracy, civil war, rebellion and civil strife.
Free Trade Agreement: A treaty between two or more countries that permits commerce in goods/services to be conducted across their borders without the imposing of tariffs. NAFTA is an example of a free trade agreement. Export.gov offers an online resource for free trade agreement and tariff information at www.export.gov/FTA/FTATariffTool.
Free Trade Zone: An area designated by the government of a country to which goods may be imported for processing and subsequent export on duty-free basis.
Freight Forwarder: A corporation carrying on the business of forwarding who is not a shipper or consignee. The foreign freight forwarder receives compensation from the shipper for preparing documents and arranging various transactions related to the international distribution of goods. Also, a brokerage fee may be paid to the “forwarder” from steamship lines if the forwarder performs at least two of the following services: (1) coordination of the movement of the cargo to shipside; (2) preparation and processing of the Ocean Bill of Lading; (3) preparation and processing of dock receipts or delivery orders; (4) preparation and processing of consular documents or export declarations; and (5) payment of the ocean freight charges on shipments.
Freight To (named destination): The seller must pay to forward the goods to the agreed destination by road, rail or inland waterway and is responsible for all risks of the goods until they are delivered to the first carrier.
- General Agreement on Tariffs and Trade: Now renamed the World Trade Organization.
General Average: A deliberate loss or damage to goods in the face of a peril, which sacrifice is made for the preservation of the vessel and other goods. The cost of the loss is shared by the owners of all goods on board up to time of peril.
General License (export): Authorization to export goods/services without specific documentary approval.
General License, Limited Value: Authorization to export a limited value amount of a good without specific documentary authorization.
General Order: A Customs term by which if proper entry has not been made for merchandise within five working days after arrival in a port of entry, the goods are sent to a general order warehouse. All costs are charged to the importer.
Gross Weight: Entire weight of goods, packing and container, ready for shipment.
Government Printing Office: Provides publishing and dissemination services for the official and authentic government publications to Congress, Federal agencies, Federal depository libraries, and the American public. More information can be found at www.gpo.gov.
- Hard Currency: A currency expected to remain at stable value or to increase in relation to other currencies; also, a freely convertible currency may be called “hard.”
Harmonized System: The harmonized system (HS) is a classification system for goods in international trade that provides a uniform system of product classification for all major trading countries.
- Import: To bring foreign goods or services into a country.
Import License: A license required and issued by some governments authorizing the entry of foreign goods into their countries.
Import Quota: A restricted amount of certain types of goods entering a country, usually maintained through licensing importers, assigning to each a quota, after determining the amount of goods or commodities allowed for that period. The license may also state the country from which the importer is allowed to buy, thus restricting free trade, but many times adopted by governments because of internal pressures from certain industries worried about competition.
In Bond: A term applied to the status of merchandise admitted provisionally to a country without payment of duties—either for storage in a bonded warehouse or for transshipment to another point, where duties will eventually be imposed.
Incoterms (International Commercial Terms): Also known as “terms of sale,” incoterms define the obligations, risks, and costs of the buyer and seller related to the delivery of goods/services that comprise the export transaction.
Indent: A requisition for goods, stating conditions of the sale. Acceptance of an indent by a seller means his agreement to the conditions of the sale.
Indirect Exporting: Sale by the exporter to the buyer through an intermediary in the domestic market.
Inland Bill of Lading: A bill of lading used in transporting goods overland to the exporter’s international carrier, where the ocean bill of lading becomes applicable. Although a through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipment.
Inland Carrier: A transportation line which hauls export or import freight between ports of entry and inland destinations.
Integrated Carriers: Carriers that have both air and ground fleets. Since they usually handle thousands of small parcels an hour, they have more competitive prices and offer more diverse services than regular carriers.
Intellectual Property: The patents, trademarks, service marks, copyrights and trade secrets of a business are considered intellectual property.
Inter-American Development Bank: Provides resources to finance Latin American development. The IDB also serves as administrator for special funds provided by several member and nonmember countries. The largest of these funds is the U.S. Social Progress Trust Fund.
International Chamber of Commerce: Established in Paris in 1919, this is a non-governmental organization serving world business. The ICC has members in 110 countries that include companies, industrial associations, banking bodies and chambers of commerce. The ICC International Court of Arbitration was founded in 1923 to settle international business disputes; it is the leading international arbitration institution. ICC publishes Incoterms.
International Finance Corporation: A separately organized member of the World Bank group, receiving its funds through stock subscriptions from member countries, revolving loans, and earnings. The IFC encourages the flow of capital into private investment in developing countries. It makes loans at commercial interest rates, usually as a lender of last resort when sufficient capital cannot be obtained from other sources on reasonable terms.
Irrevocable Letter of Credit: A Letter of Credit which obligates the issuing bank to pay the exporter provided all the terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the Letter of Credit (see Letter of Credit).
- Lay Time: The time allowed a ship to load or unload. If this number of days is exceeded, demurrage is incurred.
Legal Weight: The weight of the goods plus any immediate wrappings which are sold along with the goods; e.g., the weight of a tin can as well as its contents (see net weight).
Letter of Credit: A method of payment for goods by which the buyer establishes his/her credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required and a limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by the buyer or takes title to the goods themselves and then transfers funds to the seller. The bank will insist upon exact compliance with the terms of the sale, and will not pay if there are any discrepancies.
Lighterage: The cost of loading or unloading a vessel by means of barges alongside.
Liquidation: The final determination of the duties due.
- Maquiladora: The maquiladora (or “in-bond” industry) program allows foreign manufactures to ship components into Mexico duty-free for assembly and subsequent re-export.
Marine Insurance: Insurance that will compensate the owner of goods transported overseas in the event of loss which cannot be legally recovered from the carrier.
Multiple Exchange Rates: A number of countries operate systems by which different exchange rates are used for different transactions.
- North American Free Trade Agreement: The largest free trade area in the world, 340 million people and $6 trillion in GDP, encompassing Canada, the United States and Mexico. This free trade pact was passed by the U.S. Congress in November 1993 and began implementation in January 1994. NAFTA follows the model of the U.S.-Canada Free Trade Agreement and lowers trade barriers among the three countries.
Net Weight (actual): The weight of the goods without any immediate wrappings; e.g., the weight of the contents of a tin can without the weight of the can (see legal weight).
Non-tariff Barriers: These are factors, other than tariffs, inhibiting international trade, meant to discourage imports. They may include requiring advance deposits in import payments, requiring excessive customs adherence and excessive administrative procedures.
Non-Vessel Operating Common Carrier (NVOCC): A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port.
- Ocean Bill Of Lading: A contract between an exporter and an international carrier for transportation of goods to a specified foreign port. Unlike an inland bill of lading, the ocean bill of lading is a collection document, an instrument of ownership which can be bought, sold or traded while the goods are being shipped. There are two types of ocean bills of lading used to transfer ownership: (1.) straight (non-negotiable) -- provides for delivery of goods to the person named in the bill of lading. The bill must be marked “non-negotiable”; and (2.) shipper’s order (negotiable) -- provides for delivery of goods to the person named in the bill of lading or anyone designated. The shipper’s order is used with draft or Letter-of-Credit shipments and enables the bank involved in the export transaction to take title to the goods if the buyer defaults. The bank does not release title to the goods to the buyer until payment is received. The bank does not release funds to the exporter until conditions of sale have been satisfied.
Open Account: A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment, with 30-45 days accounts payable, for example. The buyer’s integrity must be unquestionable, or the buyer must have a history of payment practices with the seller.
Organization for Economic Cooperation & Development: Established in 1961 by the industrialized “free market” nations of the world to promote the economic and social welfare of member nations and to stimulate efforts on behalf of developing nations.
Overseas Private Investment Corporation: A wholly owned government corporation designed to promote private U.S. investment in developing countries by providing political risk insurance and some financing, including project financing.
- Packing List: This document includes information that is needed for transport, as well as the number and kinds of items that are being shipped.
President’s Export Council: Advises the President on government policies and programs that affect U.S. trade performance; promote export expansion; and provide a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor and government sectors.
Private Export Funding Corporation: A U.S. company owned by the Export-Import Bank and a number of U.S. commercial banks and industrial corporations. It works with Ex-Im Bank by purchasing foreign buyers’ medium. PEFCO funds itself by public issues of long-term secured notes, unsecured medium-term obligations, short-term notes sales, and by credit lines from the banks and from Ex-Im Bank.
Performance Bond: A sum of money put up by one party in order to ensure adherence to a set of criteria; it is returned to that party only when criteria have been met. The bond is issued/guaranteed by the bank on behalf of the company, and therefore increases the bank’s potential exposure to the company.
Piggyback Marketing: An arrangement whereby one company—sometimes a smaller one—uses the already established distribution channels of another company, which is effective when the two companies wish to sell complementary products.
Political Risk: Used in export financing, this term represents the risk of losses incurred by war, government prevention of merchandise entry, confiscation, currency inconvertibility, etc.
Port of Entry: A port where foreign goods are admitted into the receiving country.
Pro Forma Invoice: An invoice prepared by an exporter before the shipment of merchandise informing the buyer of the kinds of goods to be sent, their value and important specifications such as size, quantity and weight.
- Quota: The quantity of goods which may be imported without restriction or additional duties or taxes.
Quotation: An offer to sell goods at a stated price and under stated terms.
- Schedule B: Refers to “Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States.”
Shipper’s Export Declaration: A form required by the Customs Authority and completed by a shipper declaring the value and showing the weight, consignee, destination, etc., of export shipments, as well as Harmonized Schedule identification number. In the U.S., this is now called the Electronic Export Information document and is filed with the U.S. Census Bureau.
Sight Draft: A draft payable upon presentation to the drawee. A sight draft is used when the seller wishes to retain control of the shipment, either for credit reasons or for the purpose of title retention. Money will be payable at sight of the completed documents.
Standard Industrial Classification (SIC): A standard numerical code system used by the U.S. government to classify goods and services.
Standard International Trade Classification: A standard numerical code system developed by the United Nations and used in international trade to classify commodities, primarily designed for statistical and economic purposes.
Standby Letter of Credit: A Letter of Credit issued to cover a particular contingency, such as foreign investors guaranteed payment for commercial paper (see Letter of Credit).
Strikes, Riots & Civil Commotions: A term referring to an insurance clause excluding insurance of loss caused by labor disturbances, riots and civil commotions or any person engaged in such actions.
Sue and Labor Clause: A provision in marine insurance obligating the insured to take necessary steps after a loss to prevent further loss and to act in the best interests of the insurer.
- Tare Weight: The weight of packing and containers—without the goods to be shipped.
Tariff: A tax on goods which a country imports. The rate at which imported goods are taxed. A tariff schedule usually refers to a list or schedule of articles of merchandise with the rate of duty to be paid to the government of importation.
Tariff Quotas: Setting a higher tariff rate on imported goods after a specified, controlled quantity of the item has entered the country at the usual tariff rate during a specified period.
Technology Transfer: This term is used to characterize the transfer of knowledge (such as research or manufacturing methods) that was generated and developed in one place to another place/a wider audience, thus enabling it to be used to achieve a practical end, such as new product development.
Through Bill Of Lading: A single bill of lading covering both domestic and international passage of an export shipment.
Trademark: Word, symbol, name, slogan, or combination thereof that identifies and distinguishes the source of sponsorship of goods and may serve as an index of quality of a particular product.
Trade Mission: Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas.
Trade Promotion Coordinating Committee: The President established the TPCC in May 1990 to unify and streamline the government’s decentralized approach to export promotion.
Trade Show: A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting.
Transit Shipment: A term used of a shipment destined for an interior point or for a place best reached by reshipment from another port.
Transportation And Exportation Entry: A form declaring goods entering the United States for the purpose of exportation through a U.S. port. Carriers and any warehouse must be bonded.
- Uniform Customs And Practice: Standardized code of practice issued by the International Chamber of Commerce in Paris covering Documentary Credits.
Uniform Rules: Standardized rules issued by the International Chamber of Commerce in Paris covering collections, Combined Transport Documents, and Contract Guarantees.
Uruguay Round: The eighth round (1989-1994) of trade talks of the member countries of the General Agreement on Tariffs and Trade.
- Validated Export License: A document issued by the U.S. Government authorizing the export of commodities for which written export authorization is required by law.
Value Added Tax: An indirect tax assessed on the increase in value of a good from raw material stage to final product for consumption. The tax is paid by those who increase the value of the items before they resell them. A system used by the European Community.
- Warehouse Entry: A form declaring goods imported and placed in a bonded warehouse. Duty payment may not be required until the goods are withdrawn by the importer.
Waybill On Rail: Inland bill of lading for rail shipments.
Wharfage: Charges assessed by docks for the handling of incoming or outgoing ocean merchandise.
Without Reserve: A shipping term indicating that a shipper’s agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented.
World Bank: The World Bank assists the development of member nations by making loans when private capital is not available at reasonable terms to finance productive investments.
World Trade Organization: A multilateral treaty adhered to by over 124 nations, providing a set of rules for trade policies and a means for settling disputes among member nations. After eight years of negotiations, the Uruguay Round Agreement of the GATT nations, creating a global trade accord, was voted on by the U.S. Congress in December, 1994 and approved for American participation. The pact is expected to lower world tariffs by 40 percent, cut subsidies globally, expand protection for intellectual property and set rules for investment and trade in services.
KNOWLEDGE COMMUNITY
FOR EMPLOYERS
FOR FACULTY
Knowledge Community
For Employers
For Faculty
Copyright © 2015 California Community Colleges, Chancellor's Office. All Rights Reserved. Funded in part by the California Community Colleges, Chancellor's Office.