IMPORT - EXPORT GLOSSARY






Acceptance _ This term has several related meanings: (1) A time
     draft (or bill of exchange) that the drawee has accepted and
     is unconditionally obligated to pay at maturity. The draft
     must be presented first for acceptance _ the drawee becomes
     the "acceptor" _ then for payment. The word "accepted" and the
     date and place of payment must be written on the face of the
     draft. (2) The drawee's act in receiving a draft and thus
     entering into the obligation to pay its value at maturity. (3)
     Broadly speaking, any agreement to purchase goods under
     specified terms. An agreement to purchase goods at a stated
     price and under stated terms.

Ad valorem _ According to value. See Duty.

Advance against documents _ A loan made on the security of the
     documents covering the shipment.

Advising bank _ A bank, operating in the exporter's country, that
     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
     responsibility for payment.

Advisory capacity _ A term indicating that a shipper's agent or
     representative is not empowered to make definitive decisions
     or adjustments without approval of the group or individual
     represented. Compare Without reserve.

Agent _ See Foreign sales agent.

Air waybill _ A bill of lading that covers both domestic and
     international flights transporting goods to a specified
     destination. This is a nonnegotiable instrument of air
     transport that serves as a receipt for the shipper, indicating
     that the carrier has accepted the goods listed and obligates
     itself to carry the consignment to the airport of destination
     according to specified conditions. Compare Inland bill of
     lading, Ocean bill of lading, and Through bill of lading.

Alongside _ The side of a ship. Goods to be delivered "alongside"
     are to be placed on the dock or barge within reach of the
     transport ship's tackle so that they can be loaded aboard the
     ship.

Antidiversion clause _ See Destination control statement.

Arbitrage _ The process of buying foreign exchange, stocks, bonds,
     and other commodities in one market and immediately selling
     them in another market at higher prices.

Asian dollars _ U.S. dollars deposited in Asia and the Pacific
     Basin. Compare Eurodollars.

ATA Carnet _ See Carnet.

Balance of trade _ The difference between a country's total imports
     and exports. If exports exceed imports, a favorable balance of
     trade exists; if not, a trade deficit is said to exist.

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 letter of credit is
     issued or a draft is drawn.

Bill of exchange _ See Draft.

Bill of lading _ A document that establishes the terms of a
     contract between a shipper and a transportation company under
     which freight is 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. Also see Air
     waybill, Inland bill of lading, Ocean bill of lading, and
     Through bill of lading.

Bonded warehouse _ A warehouse authorized by customs authorities
     for storage of goods on which payment of duties is deferred
     until the goods are removed.

Booking _ An arrangement with a steamship company for the
     acceptance and carriage of freight.

Buying agent _ See Purchasing agent.

Carnet _ A customs document permitting the holder to carry or send
     merchandise temporarily into certain foreign countries (for
     display, demonstration, or similar purposes) without paying
     duties or posting bonds.

Cash against documents (CAD) _ Payment for goods in which a
     commission house or other intermediary transfers title
     documents to the buyer upon payment in cash.

Cash in advance (CIA) _ Payment for goods in which the price is
     paid in full before shipment is made. This method is usually
     used only for small purchases or when the goods are built to
     order.

Cash with order (CWO) _ Payment for goods in which the buyer pays
     when ordering and in which the transaction is binding on both
     parties.

Certificate of inspection _ A document certifying that merchandise
     (such as perishable goods) was in good condition immediately
     prior to its shipment (see chapter 12).

Certificate of manufacture _ A statement (often notarized) in which
     a producer of goods certifies that manufacture has been
     completed and that the goods are now at the disposal of the
     buyer.

Certificate of origin _ A document, required by certain foreign
     countries for tariff purposes, certifying the country of
     origin of specified goods (see chapter 12).

CFR _ Cost and freight. A pricing term indicating that the cost of
     the goods and freight charges are included in the quoted
     price; the buyer arranges for and pays insurance (see chapter
     10).

Charter party _ A written contract, usually on a special form,
     between the owner of a vessel and a "charterer" who rents use
     of the vessel or a part of its freight space. The contract
     generally includes the freight rates and the ports involved in
     the transportation.

CIF _ Cost, insurance, freight. A pricing term indicating that the
     cost of the goods, insurance, and freight are included in the
     quoted price (see chapter 10).

Clean bill of lading _ A receipt for goods issued by a carrier that
     indicates that the goods were received in "apparent good order
     and condition," without damages or other irregularities.
     Compare Foul bill of lading.

Clean draft _ A draft to which no documents have been attached.

Collection papers _ All documents (commercial invoices, bills of
     lading, etc.) submitted to a buyer for the purpose of
     receiving payment for a shipment.

Commercial attache _ The commerce expert on the diplomatic staff of
     his or her country's embassy or large consulate.

Commercial invoice _ An itemized list of goods shipped, usually
     included among an exporter's collection papers (see chapter
     12).

Commission agent _ See Purchasing agent.

Common carrier _ An individual, partnership, or corporation that
     transports persons or goods for compensation.

Confirmed letter of credit _ A letter of credit, issued by a
     foreign bank, the validity of which has been confirmed by a
     U.S. bank. An exporter whose payment terms are a confirmed
     letter of credit is assured of payment by the U.S. bank even
     if the foreign buyer or the foreign bank defaults. See Letter
     of credit. (Also see chapter 13.)

Consignment _ Delivery of merchandise from an exporter (the
     consignor) to an agent (the consignee) under agreement that
     the agent sell the merchandise for the account of the
     exporter. The consignor retains title to the goods until the
     consignee has sold them. The consignee sells the goods for
     commission and remits the net proceeds to the consignor.

Consular declaration _ A formal statement, made to the consul of a
     foreign country, describing goods to be shipped.

Consular invoice _ A document, required by some foreign countries,
     describing a shipment of goods and showing information such as
     the consignor, consignee, and value of the shipment. Certified
     by a consular official of the foreign country, it is used by
     the country's customs officials to verify the value, quantity,
     and nature of the shipment (see chapter 12).

Convertible currency _ A currency that can be bought and sold for
     other currencies at will.

Correspondent bank _ A bank that, in its own country, handles the
     business of a foreign bank.

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.

CPT (carriage paid to) and CIP (carriage and insurance paid to) _
     Pricing terms indicating that carriage, or carriage and
     insurance, are paid to the named place of destination. They
     apply in place of CFR and CIF, respectively, for shipment by
     modes other than water.

Credit risk insurance _ Insurance designed to cover risks of
     nonpayment for delivered goods. Compare Marine insurance.

Customhouse broker _ An individual or firm licensed to enter and
     clear goods through customs.

Customs _ The authorities designated to collect duties levied by a
     country on imports and exports. The term also applies to the
     procedures involved in such collection.


Date draft _ A draft that matures in a specified number of days
     after the date it is issued, without regard to the date of
     acceptance. See Draft, Sight draft, and Time draft. (Also see
     chapter 13.)

Deferred payment credit _ Type of letter of credit providing for
     payment some time after presentation of shipping documents by
     exporter.

Demand draft _ See Sight draft.

Destination control statement _ Any of various statements that the
     U.S. government requires to be displayed on export shipments
     and that specify the destinations for which export of the
     shipment has been authorized (see chapter 12).

Devaluation _ The official lowering of the value of one country's
     currency in terms of one or more foreign currencies. For
     example, if the U.S. dollar is devalued in relation to the
     French franc, one dollar will "buy" fewer francs than before.

DISC _ Domestic international sales corporation (see chapter 11).
     Discrepancy _ Letter of credit _ When documents presented do
     not conform to the letter of credit it is referred to as a
     discrepancy.

Dispatch _ 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 party.

Distributor _ A foreign agent who sells for a supplier directly and
     maintains an inventory of the supplier's products.

Dock receipt _ A receipt issued by an ocean carrier to acknowledge
     receipt of a shipment at the carrier's dock or warehouse
     facilities. Also see Warehouse receipt.

Documentary draft _ A draft to which documents are attached.

Documents against acceptance (D/A) _ Instructions given by a
     shipper to a bank indicating that documents transferring title
     to goods should be delivered to the buyer (or drawee) only
     upon the buyer's acceptance of the attached draft.

Draft (or Bill of exchange) _ An unconditional €\~
¼÷;´Ç;ness that handles export
     shipments for compensation. (A freight forwarder is among the
     best sources of information and assistance on U.S. export
     regulations and documentation, shipping methods, and foreign
     import regulations.)

GATT _ General Agreement on Tariffs and Trade. A multilateral
     treaty intended to help reduce trade barriers between
     signatory countries and to promote trade through tariff
     concessions.

General export license _ Any of various export licenses covering
     export commodities for which Individually validated export
     licenses are not required. No formal application or written
     authorization is needed to ship exports under a general export
     license (see chapter 11).

Gross weight _ The full weight of a shipment, including goods and
     packaging. Compare Tare weight.

Import license _ A document required and issued by some national
     governments authorizing the importation of goods into their
     individual countries.

Individually validated export license _ A required document issued
     by the U.S. Government authorizing the export of specific
     commodities. This license is for a specific transaction or
     time period in which the exporting is to take place. Compare
     General export license. (Also see chapter 11.)

Inland bill of lading _ A bill of lading used in transporting goods
     overland to the exporter's international carrier. 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 shipments. Compare Air
     waybill, Ocean bill of lading, and Through bill of lading.

International freight forwarder _ See Freight forwarder.

Irrevocable letter of credit _ A letter of credit in which the
     specified payment is guaranteed by the bank if all terms and
     conditions are met by the drawee. Compare Revocable letter of
     credit. (Also see chapter 13.)

Letter of credit (L/C) _ A document, issued by a bank per
     instructions by a buyer of goods, authorizing the seller to
     draw a specified sum of money under specified terms, usually
     the receipt by the bank of certain documents within a given
     time (see chapter 13).

Licensing _ A business arrangement in which the manufacturer of a
     product (or a firm with proprietary rights over certain
     technology, trademarks, etc.) grants permission to some other
     group or individual to manufacture that product (or make use
     of that proprietary material) in return for specified
     royalties or other payment.

Manifest _ See Ship's manifest.

Marine insurance _ Insurance that compensates the owners of goods
     transported overseas in the event of loss that cannot be
     legally recovered from the carrier. Also covers air shipments.
     Compare Credit risk insurance.

Marking (or marks) _ Letters, numbers, and other symbols placed on
     cargo packages to facilitate identification.

Ocean bill of lading _ A bill of lading (B/L) indicating that the
     exporter consigns a shipment to an international carrier for
     transportation to a specified foreign market. Unlike an inland
     B/L, the ocean B/L also serves as a collection document. If it
     is a "straight" B/L, the foreign buyer can obtain the shipment
     from the carrier by simply showing proof of identity. If a
     "negotiable" B/L is used, the buyer must first pay for the
     goods, post a bond, or meet other conditions agreeable to the
     seller. Compare Air waybill, Inland bill of lading, and
     Through bill of lading.

On board bill of lading _ A bill of lading in which a carrier
     certifies that goods have been placed on board a certain
     vessel.

Open account _ A trade arrangement in which goods are shipped to a
     foreign buyer without guarantee of payment. The obvious risk
     this method poses to the supplier makes it essential that the
     buyer's integrity be unquestionable.

Open insurance policy _ A marine insurance policy that applies to
     all shipments made by an exporter over a period of time rather
     than to one shipment only.

Order bill of lading _ A negotiable bill of lading made out to the
     order of the shipper.

Packing list _ A list showing the number and kinds of items being
     shipped, as well as other information needed for
     transportation purposes (see chapter 12).

Parcel post receipt _ The postal authorities' signed acknowledgment
     of delivery to receiver of a shipment made by parcel post.

PEFCO _ Private Export Funding Corporation. A corporation that
     lends to foreign buyers to finance exports from the United
     States (see chapter 14).

Perils of the sea _ A marine insurance term used to designate heavy
     weather, stranding, lightning, collision, and sea water
     damage.

Phytosanitary inspection certificate _ A certificate, issued by the
     U.S. Department of Agriculture to satisfy import regulations
     for foreign countries, indicating that a U.S. shipment has
     been inspected and is free from harmful pests and plant
     diseases.

Political risk _ In export financing, the risk of loss due to such
     causes as currency inconvertibility, government action
     preventing entry of goods, expropriation or confiscation, and
     war.

Pro forma invoice _ An invoice provided by a supplier prior to the
     shipment of merchandise, informing the buyer of the kinds and
     quantities of goods to be sent, their value, and important
     specifications (weight, size, etc.).

Purchasing agent _ An agent who purchases goods in his or her own
     country on behalf of foreign importers such as government
     agencies and large private concerns.

Quota _ The quantity of goods of a specific kind that a country
     permits to be imported without restriction or imposition of
     additional duties.

Quotation _ An offer to sell goods at a stated price and under
     specified conditions.

Remitting bank _ The bank that sends the draft to the overseas bank
     for collection.

Representative _ See Foreign sales agent.

Revocable letter of credit _ A letter of credit that can be
     canceled or altered by the drawee (buyer) after it has been
     issued by the drawee's bank. Compare Irrevocable letter of
     credit. (Also see chapter 13.)

Schedule B _ Refers to Schedule B, Statistical Classification of
     Domestic and Foreign Commodities Exported from the United
     States. All commodities exported from the United States must
     be assigned a seven-digit Schedule B number.

Shipper's export declaration _ A form required for all shipments by
     the U.S. Treasury Department and prepared by a shipper,
     indicating the value, weight, destination, and other basic
     information about an export shipment (see chapter 12).

Ship's manifest _ An instrument in writing, signed by the captain
     of a ship, that lists the individual shipments constituting
     the ship's cargo.

Sight draft (S/D) _ A draft that is payable upon presentation to
     the drawee. Compare Date draft and Time draft (see chapter
     13).
Spot exchange _ The purchase or sale of foreign exchange for
     immediate delivery.

Standard industrial classification (SIC) _ A standard numerical
     code system used by the U.S. government to classify products
     and services.

Standard international trade classification (SITC) _ A standard
     numerical code system developed by the United Nations to
     classify commodities used in international trade.

Steamship conference _ A group of steamship operators that operate
     under mutually agreed-upon freight rates.

Straight bill of lading _ A nonnegotiable bill of lading in which
     the goods are consigned directly to a named consignee.

Tare weight _ The weight of a container and packing materials
     without the weight of the goods it contains. Compare Gross
     weight.

Tenor (of a draft) _ Designation of a payment as being due at
     sight, a given number of days after sight, or a given number
     of days after date.

Through bill of lading _ A single bill of lading converting both
     the domestic and international carriage of an export shipment.
     An air waybill, for instance, is essentially a through bill of
     lading used for air shipments. Ocean shipments, on the other
     hand, usually require two separate documents _ an inland bill
     of lading for domestic carriage and an ocean bill of lading
     for international carriage. Through bills of lading are
     insufficient for ocean shipments. Compare Air waybill, Inland
     bill of lading, and Ocean bill of lading.

Time draft _ A draft that matures either a certain number of days
     after acceptance or a certain number of days after the date of
     the draft. Compare Date draft and Sight draft (see chapter
     13).

Tramp steamer _ A ship not operating on regular routes or
     schedules.

Transaction statement _ A document that delineates the terms and
     conditions agreed upon between the importer and exporter.

Trust receipt _ Release of merchandise by a bank to a buyer in
     which the bank retains title to the merchandise. The buyer,
     who obtains the goods for manufacturing or sales purposes, is
     obligated to maintain the goods (or the proceeds from their
     sale) distinct from the remainder of his or her assets and to
     hold them ready for repossession by the bank.

Warehouse receipt _ A receipt issued by a warehouse listing goods
     received for storage.

Wharfage _ A charge assessed by a pier or dock owner for handling
     incoming or outgoing cargo.

Without reserve _ A 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. Compare Advisory capacity.



Mourad ERRAI

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