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 (see GATT).
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.
ADB: Asian Development Bank. ADB was 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.
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.
The 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/D): 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/S): A payment on a draft or other negotiable instrument due upon presentation or demand to the payee.
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.
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 under-priced below foreign countrys domestic market) sale of foreign goods in the U.S. market, which might hurt U.S. manufacturers.
Asia-Pacific Economic Cooperation. A forum to advance economic cooperation and trade and investment liberalization in the Asia-Pacific region, chaired by Indonesia. In addition to trade liberalization, APEC goals include human resource development, growth of small- and medium-sized businesses, and infrastructure development.
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.
A clause in a sales contract detailing how any contract disputes will be settled.
The 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.
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 importers bank to the exporter.
BANKERS ACCEPTANCE: A draft drawn on and accepted by the importers bank. Depending on the banks creditworthiness, the acceptance becomes a financial instrument which can be discounted.
BILL OF EXCHANGE: Also a draft. 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.
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.
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.
Customs documents permitting the holder to carry or send merchandise temporarily into certain foreign countries for trade shows or sales meetings, without paying duties or posting bonds.
CARIBBEAN DEVELOPMENT BANK (CDB):
CDB, founded in 1970, provides financing to foster economic development and integration in the Caribbean. The CDBs 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.
CARICOM: The 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 (C.A.D.): 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 (C.I.A.): 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 (C.W.O.): 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.
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.
CHARTER PARTY: Renting of an entire vessel or part of its freight space for a specified voyage or stipulated period of time.
C&F NAMED PORT:
Cost and freight. 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.
C.I.F. NAMED PORT: Cost, insurance, freight. Same as C&F except
seller also provides insurance up to the named destination.
p>C.I.F. & C.:
Price includes commission as well as C.I.F.
C.I.F. DUTY PAID:
The seller includes in the final price to the buyer, in addition to
C.I.F., the estimated U.S. duty.
C.I.F. & E.: Price quoted includes currency exchange from U.S.
dollars to foreign money as well as C.I.F.
CLEAN BILL OF LADING: A document specifying that the goods were
received in apparent good order by the carrier.
COCOM: 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
COLLECTION: An exporter draws a bill of exchange on a customer
abroad and gives the bill to his/her bank to collect funds. The
importer must be willing to pay. The bank charges a fee to collect
payment, but is not liable should the importer refuse to release the
COLLECTION PAPERS: All documents, including bills of lading, invoices and other papers, submitted to a buyer to receive payments for a shipment.
CONDITIONAL FREE: Merchandise 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. (See Letter of
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.
A government official residing in a foreign country charged with
representing the interests of his country and its nationals.
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.
CONVENTIONAL TARIFF: A tariff established in the agreements
resulting from tariff negotiations under the GATT (see GATT).
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
brokers 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 brokers client, the trucking
firm or other carrier.
CUSTOMS TARIFF: Charges imposed by the U.S. government and most
other governments on imported and/or exported goods.
DATE DRAFT (D/D): A draft payable a specified number of days after
the date it was issued, regardless of the date of acceptance.
DELIVERED AT FRONTIER:
Term referring to the sellers obligation to supply goods which
conform with the contract. At his/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 DUTY PAID:
Term referring to the sellers obligation to supply goods according
to the terms of the contract. At his/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.
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.
Sale by an exporter directly to a buyer located in a foreign
DISTRIBUTION LICENSE: A license given to an exporter 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 suppliers
DOCUMENTS AGAINST ACCEPTANCE (D/A): Instructions by a shipper to a
bank indicating that documents transferring title to the goods should
be given to the buyer only after the buyers 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 (D/P): 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
DOCUMENT OF TITLE:
Evidence of entitlement or ownership, such as a carriers negotiable
bill of lading, which allows a party to claim title to the goods in
A tax levied by a government on an import, an export or the use and
consumption of goods.
A partial refund of duties paid on importation of goods which are
further processed and then re-exported, or exported in same condition
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
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.
EUROPEAN ECONOMIC COMMUNITY (EEC):
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.
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.
A permit required to export certain commodities and certain
quantities to certain destinations. The purpose is to control the
transfer of technologies such as hardware, software, technical data
and services. Lists of goods requiring an export license are listed in
the official U.S. government publication The Export Administration
Regulations of the Bureau of Export Administration (BXA) of the U.S.
Department of Commerce.
EXPORT MANAGEMENT COMPANY (EMC):
A firm that acts as a complete export arm for a companys 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.
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 (ETC): A business that acts as a complete
export service house and, in addition, takes title to a companys
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 sellers only
responsibility is to make the goods available at sellers 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 buyers
desired destination. This term thus represents the minimum obligation
for the seller.
Types of companies that 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.
F.O.B. 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.
F.O.B. FREIGHT PREPAID: The same as F.O.B. named inland carrier,
except the seller pays the freight charges of the inland carrier.
F.O.B. 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
F.O.B. NAMED PORT OF EXPORTATION: Seller is responsible for placing
the goods at a named point of exportation at the sellers expense. Some
European buyers use this form when they actually mean F.O.B. vessel.
F.O.B. VESSEL: Seller is responsible for goods and preparation of
export documentation until actually placed aboard the vessel.
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 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
FOREIGN SALES AGENT: An agent residing in a foreign country who
acts as a sales representative for your companys 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, 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 (F.A.S.) (or free alongside steamer): The seller
must deliver the goods to a pier and place them within reach of the
ships 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 (F.C. & S.): 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 ZONE: An area designated by the government of a country
to which goods may be imported for processing and subsequent export on
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. A multilateral treaty adhered to by over 124 nations
which provides 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.
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 or services without specific
GENERAL LICENSE, LIMITED VALUE (GLV): Authorization to export a
limited value amount of a good without specific documentary
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
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 domestic
market uniform system of product classification for all major trading
To bring foreign goods or services into a country.
A license required and issued by some governments authorizing the
entry of foreign goods into their countries.
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.
A requisition for goods, stating conditions of the sale. Acceptance
of an indent by a seller means his agreement to the conditions of the
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
exporters 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.
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
INTER-AMERICAN DEVELOPMENT BANK (IDB):
The 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.
INTERNATIONAL FINANCE CORPORATION (IFC): 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
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 (L/C):
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
The final determination of the duties due.
Insurance which will compensate the owner of goods transported
overseas in the event of loss which cannot be legally recovered from
MULTIPLE EXCHANGE RATES:
A number of countries operate systems by which different exchange
rates are used for different transactions.
The 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 will lower trade barriers among
the three countries over the next 15 years to zero in most categories
of goods and services.
NET WEIGHT (ACTUAL NET WEIGHT): 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:
? Straight (non-negotiable): provides for delivery of goods to the
person named in the bill of lading. The bill must be marked
? Shippers Order (negotiable): provides for delivery of goods to
the person named in the bill of lading or anyone designated.
Ocean Bill of Lading (cont.): The shippers 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 (O/A): 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 buyers integrity must be
unquestionable, or the buyer must have a history of payment practices
with the seller.
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC): 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.
PERFORMANCE BOND GUARANTEE: If a company is undertaking a contract,
it may be asked to give a performance bond for part of the value of
the contract. If the customer considers the companys performance under
the terms of the contract has been unsatisfactory, payment of the bond
can be demanded from the banker guaranteeing the bond. The bond is
issued by the bank on behalf of the company, and therefore increases
the banks potential exposure to the company.
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.
PORT OF ENTRY:
A port where foreign goods are admitted into the receiving country.
PRIVATE EXPORT FUNDING CORPORATION (PEFCO):
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
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
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
SCHEDULE B: Refers to Schedule B, Statistical Classification of
Domestic and Foreign Commodities Exported from the United States.
SHIPPERS EXPORT DECLARATION (SED): A form required by the U.S.
Treasury Department and completed by a shipper showing the value,
weight, consignee, destination, etc., of export shipments, as well as
Harmonized Schedule B identification number.
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 AND CIVIL COMMOTIONS (S.R.&C.C.): A term
referring to an insurance clause excluding insurance of loss caused by
labor disturbances, riots and civil commotion or any person engaged in
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.
The weight of packing and containers without the goods to be
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.
THROUGH BILL OF LADING:
A single bill of lading covering both domestic and international
passage of an export shipment.
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. (See International Chamber of Commerce.)
Standardized rules issued by the International Chamber of Commerce
in Paris covering collections, Combined Transport Documents, and
Contract Guarantees. (See International
Chamber of Commerce.)
The most recent (1989-1994) round of trade talks of the member
countries of the General Agreement on Tariffs and Trade (see GATT).
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 (VAT):
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.
WORLD TRADE ORGANIZATION (WTO):
This organization was the former General Agreement on Tariffs and
Trade (GATT) and was created and named by the Uruguay Round in 1994.
A form declaring goods imported and placed in a bonded warehouse.
Duty payment may not be required until the goods are withdrawn by the
A shipping term indicating that a shippers agent or representative
is empowered to make definitive decisions and adjustments abroad
without approval of the group or individual represented.
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.