A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Abandonment

The act of relinquishing claim or right to property.

About

"About", "Approx.", and "Circa" are terms which when used in a letter of credit, are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price stipulated in the letter of credit.

Absolute Advantage

An advantage of one nation or area over another in the costs of producing an item in terms of used resources.

Absorption

1. An economic term for the total expenditures by a nation's residents on goods and services.
2. The assumption by one carrier of the charges of another without any increase in the charges to the shipper.

Accelerated Tariff Elimination

The reduction of import duties faster than originally had been agreed upon or projected.

Acceptance

1. A draft calling for payment at a future date which the drawee has agreed to pay by signing "Accepted" on the draft.
2. An unconditional assent to an offer; or an assent to an offer conditioned on only minor changes that do not affect any material terms of the offer;
3. An agreement to purchase goods on specified terms.
4. Receipt of a shipment by a consignee thus terminating the liability of the carrier for delivery.

Acceptance Letter Of Credit

A letter of credit which instead of agreeing to pay the beneficiary immediately upon presentation of documents, requires presentation of a time draft drawn by the beneficiary upon the issuing bank or another bank. However, the beneficiary may, in effect, obtain prompt payment by discounting the draft.

Accepted Draft

A draft or a bill of exchange accepted by the drawee (acceptor) by putting his signature and "accepted' on its face. In doing so, he commits himself to pay the bill upon presentation at maturity.

Accepting Bank

A bank which by signing 'accepted' on a time draft accepts responsibility to pay when the draft becomes due.

Acceptor

The party that signs 'accepted' on a draft or obligation, agreeing to pay the stated sum at maturity.

Accession

Accession is a process by which a country becomes a member of an international agreement (usually an agreement that has already been accepted by other countries).

Accessorial Charges

In transportation, those charges made for additional, supplemental, or special services performed in addition to the basic transportation service.

Accessorial Services

`In transportation, services performed which are additional, supplemental, or special, in addition to the basic transportation service.

Accommodation

An arrangement or engagement made as a favor to another, not dependent upon a consideration received.

Accommodation Note Or Paper

A bill of exchange or banker's acceptance which is endorsed, accepted, or drawn by one party (the accommodating party) to benefit another party. The accommodating party generally does not charge or seek compensation for this act.

Accord And Satisfaction

A means of discharging a claim whereby the parties agree to give and accept something in settlement and perform the agreement, the agreement being the "accord" and its performance "the satisfaction."

Account Number

An identification number assigned in its records for purposes of faster and more accurate accounting and record keeping, by banks, institutions, and businesses of all kind to their depositors, users, members, subscribers, customers, vendors, or other entities.

Account Party

Same as Applicant, the party at whose request a bank issues a letter of credit.

Accounts Payable

A current liability representing the amounts owed to creditors for merchandise or services purchased on open account or short-term credit.

Accounts Receivable

The amount of money a business expects to receive for merchandise or services furnished by it to others on open account.

Accrual Of Obligation

The maturing of an obligation to the date when the obligated party must perform. (Such as a time draft which must be paid by the drawee on the date stated.)

Acquisition

The act of becoming owner of a property. In finance, it is the purchase of a company's assets or its common stock.

Act Of God

A violent act of nature such as lightning, flood, earthquake or hurricane which man can neither cause nor intervene with.

Action Ex Contractu

1. A legal action for breach of a promise stated in an express or implied contract.
2. An action arising out of a contract.

Action Ex Delicto

1. A legal action for a breach of a duty that is not stated in a contract but arises from the contract.
2. A legal action that arises from a wrongful act, such as fraud, fault, misconduct or malfeasance.

Ad Valorem Duty

Duty calculated on the basis of value (usually a percentage of the value.)

Address Of Record

The official or primary location for an individual, company, or other organization.

Adhesion Contract

A contract with standard, often printed, terms for sale of goods and services, offered to consumers who usually cannot negotiate any changes in the terms and cannot acquire the product unless they agree to them.

Admiralty

Any civil or criminal matter having to do with maritime legal issues.

Admiralty Court

A court of law that has jurisdiction over maritime legal issues.

Advance Against Collection

A short term loan or credit extended to a seller (usually the exporter) by the seller's bank once a draft has been accepted by the buyer (generally the importer).

Advance Arrangements

In transportation, advance arrangements must be made for certain kinds of cargo which require special handling: hazardous cargo, over weight, over sized, over normal quantity, time sensitive, shipped unpacked, live animals etc. Not every carrier can or will transport every kind of cargo.

Advanced Technology Products (ATP)

Products whose technology is from a recognized high technology field, represent leading edge technology in that field, and constitute a significant part of all items covered in the selected classification code.

Advice

1. A report from one party to another informing them of an occurrence with regard to some business transaction: a shipment, a collection, a manufacture etc.etc.
2. A notification by an advising bank on behalf of the issuing bank to a beneficiary informing them of the terms of a letter of credit,

Advised Credit

A letter of credit whose terms and conditions have been notified to the beneficiary by an advising bank on behalf of the issuing bank. The advising bank does not thereby commit itself to pay or guarantee the payment of the letter of credit.

Advising Bank

An 'advising bank' is a correspondent of a bank which issues a letter of credit, and, on behalf of the issuing bank, the advising bank notifies the beneficiary of the terms of the credit, without engagement on its part to pay or guarantee the credit.

Advisory Committee On Export Policy

A U.S. government interagency dispute resolution body that operates at the Assistant Secretary level.

Advisory Committee On Trade Policy And Negotiation

A U.S. government group appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements.

Affiliate

A condition of being united, allied, associated, or attached. An affiliate company is one effectively controlled by another.

Affreightment Contract

A contract with a ship owner to hire all or part of a ship for transporting goods - may involve a charter.

Afloat

Refers to a shipment of cargo which is currently on board a vessel between ports

Aft

At or towards the stern of the ship or the tail of the aircraft.

After Date

A notation used on financial instruments (such as drafts or bills of exchange) to fix the maturity date as a fixed number of days past the date of drawing of the draft.

After Sight

A notation on a draft that indicates that payment is due a stated number of days after the draft has been presented to the drawee.

Agent

A person or legal entity authorized to act on behalf of another.

Agent Bank

1. A bank acting on behalf of another bank.
2. A bank acting for lenders and bondholders, similar to an indenture trustee.

Aggregated Shipments

Several shipments intended for one consignee from various shippers that are consolidated and treated as a single consignment.

Agreed Valuation

The value of a shipment that is agreed upon by both the shipper and the carrier to define the freight rate and/or the liability of the carrier.

Air Cargo

Property of any kind that is transported by aircraft (excluding passenger baggage and mail).

Air Express

Expedited air freight service.

Air Parcel Post

Parcels shipped through the mails to be transported by air.

Airwaybill

The shipping document used for the transportation of air freight: includes conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. It is generally similar to a straight non-negotiable bill of lading and is used for similar purposes.

Alienable

Ability to be transferred or conveyed.

All-Cargo Aircraft

Any aircraft that is used for the sole purpose of transporting cargo or mail.

Allowance

A deduction or discount from the price permitted by a seller.

Alternative Tariff

In transportation, a tariff with two or more rates for the same goods, to and from the same points, with the opportunity available to the shipper to use the lowest of the charges.

Amendment

An addition, deletion, or modification of a document.

Amidships

The area of a vessel midway between the front (the bow) and the rear (the stern). When the term applies to an airplane, it is midway between the nose and the tail.

Amortization

1. The provision to pay a debt over a period of time.
2. The gradual repayment of borrowings in a series of installments.
3. A transaction or security where the principal reduces over the life of the agreement.
4. The writing off or reduction in value of an intangible asset over time (c.f.depreciation)
5. Allocation of the cost of an asset over its estimated useful life.

Antidumping Duties

Additional duties which are assessed on imported goods when those goods are sold to the importing country at a price that is less than "fair value", ("fair value" usually being defined as the price on the exporting country's domestic market or to third countries), and when those imported goods are found to cause or to threaten material injury to industry of the importing country.

Any Quantity

A cargo freight rate that applies to an article without regard to the weight or quantity shipped.

Applicant (also Account Party)

1. The party at whose request a bank issues a letter of credit.
2. A person who applies for something: a job, a passport, a visa, a license, a ticket etc. etc.

Appreciation
An increase in the value of something, - of goods, of currency, of shares of stock, etc,.

Approx. (Approximately)

Same as "about" and "circa"; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price.

Appurtenance

An accessory, adjunct, or appendage connected to a primary property and used in conjunction therewith.

Apron

1. Area of the airport where planes are parked. May be used for loading and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used for loading and unloading of vessels.

Arbitrage

A method of taking advantage of the fact that there may be different prices in different markets for identical goods such as gold, foreign exchange or commodities. Simultaneously, one buys in the lower price market and sells in the higher one.

As Is

Indicates goods for sale do not include a warranty , implied or expressed; the buyer takes the entire risk as to the quality or condition of the goods involved and must trust to his own inspection. In sum, the sale is "without recourse".

Assembly Service

A service under which a carrier or a forwarder or a warehouse combines multiple shipments from multiple shippers into one shipment for one receiver.

Assessment

1. The valuation, or determination as to value, of property.
2. The act of apportioning amounts to be paid.
3. An amount assessed or charged, for example: taxes or dues.

Assignment of Proceeds of a Letter Of Credit

If the bank agrees, the beneficiary assigns all or part of the proceeds to be paid to another party after the required documents have been presented.

At Sight

A notation on a draft which indicates that payment is due upon its presentation.

Athwartships

Across a vessel form side to side.

Automated Broker Interface (ABI)

(USA) A module of the U. S. Customs Automated Commercial System which provides a communications link for the transmission of entry and entry summary data on imported merchandise between ABI users and Customs.

Automated Commercial Environment (ACE)

(USA) A US Customs electronic data system, which provides support for enforcing trade and contraband laws, ensuring trade compliance, and providing service and information to the international trade community. When completed, it will cover the full gamut of Customs activities.

Automated Commercial System (ACS)

(USA) The comprehensive electronic data system of U. S. Customs for tracking, controlling, and processing commercial importations.

Automated Information Exchange System (AIES)

(USA) A module of the Automated Commercial System of U. S. Customs which provides an automated method of exchanging information between Field Import Specialists and National Import Specialists.

Automated Manifest System (AMS)

(USA) A module of the Automated Commercial System of U. S. Customs designed to control imported merchandise from the time a carrier's cargo manifest is electronically transmitted to U.S. Customs until the cargo is properly entered, released by customs and delivered.

Avoidance Of Contract

The legal cancellation of a contract because an event occurs that makes performance of the contract terms impossible or inequitable and that releases the parties from their obligations.

B

Back Haul

The return of a carrier to the original point or area from which its journey began. If a carrier can obtain cargo to carry on the back haul route, that cargo may often obtain a favorable freight rate because otherwise the carrier would have to return empty.

Back Order

That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date when available.

Bad Faith

The intent to mislead or deceive. It does not include misleading by an honest, inadvertent or uncalled-for misstatement.

Bagged Cargo

Goods shipped in sacks.

Bailment

A delivery of goods or personal property by one person (the bailor) to another (the bailee) on an express or implied contract for a particular purpose related to the goods while in possession of the bailee, who has a duty to redeliver them to the bailor.

Balance Of Payments

A statement summarizing all the economic and financial transactions between companies, banks, private households and public authorities of one nation with those of the other nations of the world over a specific time period. It includes merchandise trade payments, payments and receipts on account of shipping services, tourist services, financial services, government expenditures, short and long term capital movements, interest and dividends, gold movements, etc.

Balance of Trade

The difference in value between a country's total imports and exports over a specific time period.

Balanced Economy

A condition of national finances in which imports and exports are equal.

Bale

A large bundle or package of compressed and bound goods, usually with an outer covering, often of burlap.

Bale Cargo

Cargo shipped in bales.

Ballast

Heavy material or water placed in the lower holds of a ship or in strategically placed tanks along the sides to improve its stability.

Bank Acceptance

A draft drawn on and accepted by a bank.

Bank Delivery Order to an Airline

A letter addressed to an air carrier from a bank who is shown as consignee on an airwaybill instructing the carrier to release a shipment. Often airlines will accept as a delivery order a bank's endorsement on the airwaybill, although an airwaybill is a non-negotiable document.

Bank Draft

A form of check drawn by a bank against its account in another bank.

Bank Guarantee

An indemnity letter in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other form of default occurs. One use is when a bank wants a carrier to release a shipment which it has financed but the original bills of lading are not yet available for surrender to the carrier.

Bank Holding Company

(USA) Any company which directly controls, with power to vote, more than five percent of voting shares of two or more banks (as defined by the Bank Holding Company Act .

Bank Holiday

A day on which banks are closed.

Bank Note

A promissory note having the appearance of currency, issued by a bank or banker authorized to do so, payable to bearer on demand, and intended to circulate as money.

Bank Release

A document issued by a bank who is the consignee of a shipment authorizing a carrier to deliver a shipment.

Banker's Bank

A bank that is established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.

Banker's Draft

A draft payable on demand and drawn by, or on behalf of, a bank upon itself or upon another bank, sometimes a foreign bank, where it maintains an account or a relationship.

Bankers Acceptance

A draft calling for payment at a future date on which the drawee is a bank, and the bank has agreed to pay by signing "accepted" on the draft.

Bankruptcy

The condition of a legal entity that does not have the financial means to pay their incurred debts as they come due. In the U.S. this status is established through legal procedures involving a petition by the bankrupt or by its creditors.

Bareboat Charter

The charter of a vessel where the charter party has the right to use his own master and crew on the vessel. Pays all operating expenses.

Barge

A flat bottomed cargo vessel primarily used on rivers and canals. Usually it is towed or pushed but it may be self-propelled.

Barratry

1. In maritime law the intentional misconduct of the ship's master or crew; includes theft, intentional casting away of vessel, or breach of trust.
2. The offense of frequently stirring up quarrels and suits, either at law or otherwise.

Barter

Trade of goods or services without the use of money.

Basing Point

A location which is used to set the selling price of goods and the freight rates to all points. A price is set at a given location chosen as the ex-factory basing point with freight to the place of delivery added to create a delivered price. Then like goods, wherever they may be sold from, are charged freight to their destination as if they were shipped from the same location (the basing point).

Basing Rate

A freight rate which is used for the sole purpose of determining other freight rates. For an explanation of how this works, see 'Basing Point'.

Basket of Currencies

A composite unit consisting of weighted amounts of the currencies of a group of designated nations.

Battens

1.The protruding fixtures on the inside walls of a vessel's hold which are used to keep the cargo away or to fasten it in place.
2. Similar structural parts to the above in truck bodies, containers and rail cars.

Bearer

The person in possession of a negotiable instrument, document of title, or security marked "payable to bearer", or the person in possession of one of these documents endorsed in blank.

Beggar-Thy-Neighbor Policy

A course of action through which a country tries to reduce unemployment and increase domestic output by raising tariffs and instituting non-tariff barriers that impede imports, and thus improve its own position at the expense of its trading partners.

Belly Pits or Holds

Compartments beneath the cabin of an aircraft used for the transport of cargo or baggage.

Beneficiary

1. In the case of a letter of credit, the individual or company who is entitled to draw or demand payment under its terms.
2. In the case of insurance, the person entitled to take the proceeds.
3. The person for whose benefit a contract, or trust, or will is executed or enforced.

Berth

The place beside a docking area where a ship is secured and cargo can be loaded or unloaded.

Bid Bond

A type of indemnity bond. A surety guarantee often required to be established by a bidder to guarantee fulfillment of his offer if accepted.

Bilateral Investment Treaty

A treaty between two countries with the goal of ensuring that investments made by either of them in the other receive treatment equal to that afforded their domestic entities or any third country entities.

Bilateral Trade

The commerce between two countries.

Bill

1. A "Bill of Exchange" or "Draft" (same thing).
2. A written statement of contract terms.
3 .The word "Bill" has many other international trade connotations - "Invoice" etc.

Bill of Credit

A written authority from one person to another, empowering the recipient of the document to receive money from the correspondents of the issuer abroad . (The usual issuer is a bank)

Bill of Exchange

Draft or Bill.

Bill of Health

An official certificate (Pratique) issued by the authorities upon the departure of a vessel or airplane showing the state of health at the place of departure, and of the passengers and crew.

Bill of Lading

A document issued by a carrier which is evidence of receipt of the goods, and is a contract of carriage. It describes the goods, the details of the intended voyage, and it specifies the conditions of transportation. If issued in negotiable form, i.e. "to order", it becomes documentary evidence of title to the goods.

Bill of Sale

A written document by which a party legally transfers ownership of goods to another party.

Bill-To Party

The party designated on purchase order, invoice, or bill of lading as the one to whom the bill should be sent for payment.

Billed Weight

The designated weight shown on the freight bill which is used to calculate the freight charges.

Billing Third Party

The transference of transportation charges to a party other than the shipper or consignee.

Biological Agents

A complex substance of organic origin which can treat or cause disease.

Black Market

Buying or selling of products that violate government restrictions.

Blanket Rate

In insurance, a rate of premium applied across the board when there is more than one kind of property which is the subject of insurance.

Blockade

Prevention of commercial exchange by physically preventing carriers from entering a port or nation.

Bona Fide

In or with good faith, honesty, and sincerity.

Bond

1. A written undertaking to perform or refrain from performing specified acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due and usually specifying a rate of interest and its dates of periodic payment.

Bond of Indemnity

A bond to indemnify and save harmless the party to whom the bond is issued against some anticipated loss.

Bond System

(USA) An automated electronic system, part of the Automated Customs System, whose purpose is to control and track indemnity bonds issued to Customs to secure compliance with various laws.

Bonded

(USA) This term refers to goods which are held, stored or transported under circumstances where applicable duty or taxes have not yet been definitely determined or paid, and admissibility has not yet been arranged. Bonds must be posted by those who are responsible for the goods during this period (the carriers, warehouses, and/or importers) to indemnify the government if the goods are released improperly.

Bonded Terminal

(USA) A terminal approved by Customs for temporary storage of imported goods until Customs duties are paid or goods released. Bonds must be posted by the terminal operator to indemnify the government if the goods are released improperly.

Bonded Warehouse

(USA) An approved private warehouse used for the storage of goods until duties or taxes are paid and the goods are properly released by Customs. Bonds must be posted by the warehouse proprietor and by the importer to indemnify the government if the goods are released improperly.

Booking

The making of arrangements for a shipment with the representatives of a vessel or airline.

Bounties

A compensation paid to persons to induce certain actions. In this class are government payments to producers or exporters to strengthen their competitive position.

Box

1. Term referring to a trailer, semi-trailer, or container used in transportation.
2. A type of package of wood, cardboard, metal, plastic or other material.

Box Car

A closed railroad freight car.

Boycott

A concerted refusal to deal commercially with a person, firm, or country.

Breakage

1. A monetary allowance that a manufacturer allots for compensation to a buyer for breakage to goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for example in computing interest.
3. In marine insurance, "breakage" refers to breakage of fragile goods such as glass and china.

Breakbulk

1. A breakbulk ship is one which transports cargo which is packed in cases, bales, cartons, drums, carboys etc., and this cargo is carried in the ship's cargo holds rather than in containers (although some loaded containers may be carried).
2. 'to breakbulk' is to unload packaged cargo from a 'breakbulk ship' or from a container and to distribute it.

Breakbulk Cargo

Cargo that is shipped in packing units such as cartons, cases, crates, bales, or drums, but not containerized.

Broker

One that acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission.

Bulk Cargo

Cargo that is made up of an unpacked commodity; examples include grain, oil, and ore.

Bulk Carrier

A vessel designed for the shipment of bulk cargo.

Bulk Freight

Cargo not in packages or containers.

Bulk Sale

The transfer or sale of substantially all of an inventory of an enterprise in a single transaction not in the usual course of business.

Bulk Solids

Dry cargo shipped loose, such as grain, ore, etc.

Bunker Adjustment Factor

An adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel.

Bunker Fuel

The fuel used to power a ship.

Bunker(s)

1. A compartment (hold) of a ship for storage of fuel.
2. The fuel for a vessel

Bureau Of Alcohol, Tobacco And Firearms

The Bureau of Alcohol, Tobacco and Firearms (ATF) is a law enforcement organization within the United States Department of Treasury with unique responsibilities dedicated to reducing violent crime, collecting revenue, and protecting the public. ATF enforces the Federal laws and regulations relating to alcohol, tobacco, firearms, explosives and arson by working directly and in cooperation with others.

Bureau of Industry and Security

A U.S. government agency responsible for control of exports for reasons of national security, foreign policy and short supply.

Buy American Acts

U.S. federal and state government statutes that give a preference in government contracts to U.S. produced goods.

C

Cabotage

1. Water transportation, navigation or trade along the coasts, between the
ports of one nation.
2 Inland freight movements confined with the national boundaries of a nation
are also sometimes called cabotage.

Call

1. A demand for early repayment of an obligation, or for the performance of
a specific act under a contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for "Call Option," a contract giving the holder the right to
receive from the issuer a specified amount of a security at a specified
price on or before a certain date.
5. Short for "Margin Call" - a call by a future or an options exchange, or
by a broker to its clients, for additional collateral to that previously
posted when the futures, options, or securities were purchased without
posting their full value.

Call Money

Money lent by banks on a short term basis which the bank, as lender, can
"call" (demand payment at any time, usually on 24 hours notice.)

Capacity To Contract

Legal competency to make a contract.

Capital Goods

1. Durable goods which are used to produce other goods for consumption: for
example machinery, equipment, buildings
2. Also, material used or consumed to produce other goods.

Capital Market

The market for long term investment funds in the form of stocks, bonds,
commercial paper etc.

Captain's protest

A written sworn statement of the master of a vessel to the effect that
damage suffered by the ship during the voyage was caused by storm or other
peril of the sea, without any negligence or misconduct on his own part.

Cargo

Merchandise hauled by transportation lines.

Cargo Agent

An agent appointed by an airline or shipping line to solicit and process
international air and ocean freight shipments.

Cargo Manifest

A list of cargo being transported or warehoused.

Cargo Selectivity System

(USA) An Automated Customs System module which is used to identify high risk
cargo and to apply more intensive examinations to it.

Cargo Tonnage

The weight of a shipment or of ship's total cargo expressed in tons.

Carnet

Called an "A T A Carnet". An international customs document which
incorporates guarantees to be used in lieu of Customs documents to enter
goods into certain countries temporarily without paying import duty or
posting bonds.

Carriage Of Goods By Sea Act Of 1936

(USA) The basic law of ocean shipping in the U.S. Among other provisions, it
establishes parameters for the carrier's liability for loss or damage to
cargo.

Carrier

A legal entity that is in the business of transporting passengers or goods
for hire.

Carrier's Certificate

(USA) A document issued by a carrier providing the particulars of a shipment
and designating to customs who may make a customs entry on that shipment..

Cartel

A group of independent producers which regulates production, pricing, and
marketing by members to maximize market power and limit competition.

Cash Against Documents (CAD)

A term used in collections supported by shipping documents which are
released to the buyer only against payment. Same as Documents Against
Payment (D/P).

Casus Major

An extraordinary casualty such as a fire, shipwreck etc.

Category Groups

A classification system which groups various products for statistical,
export control or quota control purposes.

Caveat Emptor

Let the buyer beware, which is to say the purchaser buys at his own risk.

Cell

The space constructed on a ship into which one container fits.

Census Interface

(USA) An Automated Customs System module that captures trade data for the
U.S. Bureau of Census.

Central Bank

An institution with the sole right to issue bank notes and power to dictate
the monetary policy for a currency zone.

Certificate of Inspection

A certificate issued by an independent third party verifying the condition
of cargo or of property.

Certificate of Manufacture

1. A certificate sometimes required from a manufacturer to attest that goods
have been manufactured according to the contract; for example, to support
payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback based on
manufacture in the United States.

Certificate of Weight

A document certifying to the weight of a shipment.

Certification

1. Official proof of authenticity.
2. The formal assertion of some fact in writing.

Cession of Goods

A surrender or assignment of goods for the benefit of one's creditors.

CFR (Cost and Freight ...named port of destination)

The seller must pay the costs and freight necessary to bring the goods to
the named port of destination but the risk of loss of or damage to the
goods, as well as any additional costs due to events occurring after the
time the goods have been delivered on board the vessel, is transferred from
the seller to the buyer when the goods pass the ship's rail in the port of
shipment. (Note: this Incoterm, CFR, has replaced the term C&F which has
been in common usage)

Chargeable Weight

The weight or volume of a shipment used in determining freight charges.

Charter Service

Temporary hiring of an aircraft or vessel for the transportation of cargo or
passengers.

Chartered Ship

A ship leased for a stated time, voyage, or voyages.

Chassis

1. A special trailer or undercarriage on which containers are moved over the
road.
2. The undercarriage of a vehicle.

CIF (Cost, Insurance and Freight... named port of destination)

The seller has the same obligations as under CFR but with the addition that
he has to procure marine insurance against the buyer's risk of loss of or
damage to the goods during the carriage. The seller pays the insurance
premium and is only required to obtain minimum coverage.

CIP (Carriage and Insurance Paid To...named place of destination)

The seller has the same obligations as under CPT but with the addition that
the seller has to procure cargo insurance against the buyer's risk of loss
of or damage to the goods during the carriage. The seller pays the insurance
premium and is only required to obtain minimum coverage.

Circa

Same as "about" and "approx."; terms which when used in a letter of credit
are construed to allow a difference not to exceed 10% more or 10% less than
the monetary amount, or the quantity, or the unit price.

City Terminal Service

A service provided by some airlines that involves receiving or delivering
cargo at terminals in-town instead of at airports.

Claim

1. A demand of payment.
2. In insurance, a demand for payment of money or property as the result of
an insured loss..
3. In transportation, a demand for return of overpaid charges. Also, a
demand for reimbursement of losses due to loss or casualty to cargo or
failure to deliver.

Classification

The categorization of merchandise:
In transportation - to permit determination of freight rates within a
tariff.
In customs - to permit the determination of duty status within the
Harmonized Tariff Schedules.

Claused Bill of Lading

A notation on a bill of lading which denotes a deficient condition of the
goods or packaging, or other annotated conditions modifying the printed
conditions on the Bill Of Lading.

Clean Bill of Lading

A bill of lading issued by a carrier for goods delivered in "apparent good
order and condition" - bearing no notations or added clauses which may limit
the liability of the carrier.

Clean Draft

A draft with no commercial documents attached.

Clearance

1. The completion of governmental requirements so that a carrier may arrive
in a port and unlade cargo and passengers, or may lade cargo and passengers
and depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to allow goods to
be imported or to be exported.

Closed-End Transaction

A credit transaction with a fixed amount of time for repayment.

Coastal Trade

Trade by vessel between the ports of one nation.

Collar

An agreement that puts upper and lower limits on the interest rate of a
financial instrument or on the price of something, and through this device
limits the possible amount of loss or gain from the rise or fall of interest
or price of the thing "collared"

Collect Charges

1. Transportation practice where the receiver of the goods pays the freight
and charges to the carrier.
2. Collection practice where the buyer is expected to pay the bank charges
for handling the collection.

Collect on Delivery (C.O.D.)

A service where the purchase price of a shipment is collected by the carrier
upon delivery of the shipment and subsequently paid to the shipper.

Collecting Bank

A bank involved in the collection process. In this process if presentation
is made to the drawee, it becomes also "the presenting bank."

Collection

1. The presentation for payment of an obligation and the payment thereof.
2. A gathering of similar goods.

Collection Letter

Customer's written instructions to a bank on how to handle a collection.
Many banks have an instruction form for use instead of a letter.

Collection Papers

Drafts, invoices, printed lists, documents which relate to a shipment, and
other similar instruments presented to the designated buyer/ payee to obtain
payment or acceptance.

Collection System

(USA) In U.S. Customs, it is the process that controls and accounts for
payments collected by the agency.

Combination Aircraft

An aircraft capable of transporting both cargo and passengers on the same
flight.

Combined Bill of Lading

A bill of lading covering a shipment of goods by more than one mode of
transportation.

Combined Transport

Consignment sent by means of various modes of transport.

Comity

1. In international relations it is the recognition that one sovereignty
allows within its territory to the legislative, executive or judicial acts
of another sovereignty, with due regard to the rights of its own citizens.
2. Courtesy, respect, and good will.

Command Economy

An economic system where the decisions about allocation of resources,
production, distribution and consumption are made by a central government
authority instead of being determined by market forces. An example was the
Nazi economy.

Commercial Bank

In the USA, a bank that is authorized to accept demand deposits. It may also
receive time deposits, make loans, engage in trust services, issue letters
of credit, accept and pay drafts, rent safe deposit boxes and engage in many
other similar activities.

Commercial Invoice

A document which details the transaction between a seller and a buyer. It
minimally should give the name and address of the seller and of the buyer,
the date of the sale, a description of the goods sold, the quantity, the
unit price, the terms of sale, and the total money amount due. If it is an
invoice between buyer and seller of different countries it should also
indicate the kind of currency.

Commercial Letter of Credit

An instrument by which a bank substitutes its credit for that of a customer
to enable him to finance the purchase of goods or to incur other
commitments. The bank issues a letter (or document) on behalf of its client
to a supplier and agrees to pay them upon presentation of documentary
evidence that the supplier has performed in accordance with the terms of the
letter of credit.

Commercial Officers

Embassy and consular officials who assist their country's citizens and
businesses in a foreign country through arranging appointments with local
business and government officials and providing counsel on local trade
regulations, laws, and customs.

Commercial Paper

Negotiable instruments used in commerce. Usually they are short term,
unsecured, promissory notes issued by highly rated entities and are traded
on the money markets.

Commercial Set

The documents required to evidence the shipment of goods; usually includes
an invoice, packing list, and bill of lading; may include certificate of
origin, certificate or policy of insurance, and other special documents.

Commercial Treaty

An agreement between two or more countries that establishes the conditions
under which business may be conducted between their citizens within their
countries..

Commingling

1. The packing or mingling of various goods subject to different rates of
duty so that the value and quantity of each class of goods cannot be readily
determined.
2. To combine funds or properties into a common mass.

Commission

1. A board or committee officially appointed to perform certain functions or
exercise certain jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in the
completion of a transaction involving the sale of goods or services.
3.The authority under which one acts, transacts business or negotiates for
another.

Commodity Code

The system of identifying a commodity by an assigned number.

Commodity Rate

The rate applicable to shipping a given commodity between points.

Common Point

1. A location serviced by two or more transportation lines.
2. A significant point over which aircraft fly and report to the air
controllers.

Competitive Rate

Rate determined by one transportation line to compete with the rate of
another transportation line.

Compradore

An agent in a foreign country employed by a domestic businessman to
facilitate transactions with local businesses within the foreign country.

Concealed Damage

Damage to the contents of a package which is not evident from the appearance
of the exterior of the package.

Concealed Loss

1. Loss from a package bearing concealed damage.
2. Damage, loss, or shortage of goods within a package which is not apparent
from its exterior condition.

Confirming Bank

A bank which engages to honor a letter of credit issued by another, or
engages that such letter of credit will be honored by the issuer or by a
third bank.

Connecting Carrier

A carrier which has direct physical connection with another carrier or forms
a connecting link between two or more carriers.

Consignee

The person or firm named in a freight contract to whom goods have been
shipped or turned over for care.

Consignment

1. Goods or property sent by the aid of a carrier from one person (the
consignor) to another (the consignee).
2. Entrusting of goods to another to sell as agent for the sender.

Consignor

The entity that ships goods to another. On a bill of lading, the shipper.

Consolidated Container

A shipping container that contains cargo from various shippers for delivery
to various consignees.

Consolidation

1. In transportation, the combining of smaller shipments into a single
shipment that is sent to a destination point.
2.The reorganization of corporations to combine two or more into a successor
corporation.

Consolidator

A company that provides freight consolidation services.

Consular Invoice

An invoice covering a shipment of goods, usually required to be certified by
the counsel of the country for which the merchandise is destined. It may be
required to be on a special form and be subject to the payment of special
fees.

Consulate

An office of a country within another country (often there are several,
located in the larger commercial centers). These offices represent the
commercial interests of the citizens of their country.

Consumer Goods

Any goods produced for the express use of individuals rather than the
production or manufacturing of other goods.

Consumption Entry

(USA) A "consumption entry" is the filing with Customs in proper form of an
"entry summary for consumption" on imported goods , and payment of estimated
duties, taxes, and fees, if any, resulting in the release of the goods by
Customs. When the release is unconditional, the importer may dispose of the
goods.

Container

A reusable, rigid, exterior "box" in which merchandise is shipped by air,
vessel, truck, or rail.

Container Freight Charge

Charge made for the packing or unpacking of cargo from ocean freight
containers.

Container Load

A shipment of cargo that, according to weight or volume, will fit a standard
container.

Container on Flatcar

A container without wheels put on railcars for transport inland,

Container Part Load

A shipment of cargo that according to weight or volume will not fill a
standard container on its own but is expected to be shipped in a container,
if necessary with other shipments which are also too small to take up a full
container themselves.

Container Vessel

An ocean going vessel designed specifically to handle the loading, carriage
and removal of standard freight containers.

Contraband

Any product that a nation has made unlawful to possess, produce, transport,
import, or export.

Contract Carrier

Excluding common carriers, any person who under contract will transport
passengers or goods for agreed upon compensation.

Convertibility

The attribute of being exchangeable, such as a currency freely able to be
exchanged for another, or as preferred stock or bonds to be exchanged for
common stock.

Core Inflation

The basic level of inflation over a period of time as opposed to temporary
fluctuations.

Corporate Dumping

The practice of exporting banned or out of date goods to a foreign market
where restrictions on that product are not as severe.

Cost Plus

A pricing method where the purchaser agrees to pay the production cost of
the good plus a fixed percentage to the seller for profit.

Countervailing Duties (CVD)

(USA) Duties which are assessed, in addition to regular duties, to offset
the effects of foreign subsidies or bounties upon the export of merchandise
to the United States which has been found to materially injure, or threaten
material injury to, an American industry.

Country of Departure

The country from which a shipment of goods, a carrier, or a passenger has or
is scheduled to depart.

Country of Destination

The country that is the ultimate destination for a shipment of goods. For a
carrier, it is the country in which it intends to complete its current
voyage or flight.

Country of Dispatch

The country from which a cargo is shipped.

Country of Export Destination

The country to which goods are going in order to be consumed, further
processed, or manufactured, as presumed by the shipper at the time of
exportation.

Country of Exportation

The country from which goods are shipped with intention to separate them
from the mass of goods in that country.

Country of Origin

The country in which goods were produced, mined, grown or manufactured.

Country Risk

The financial risks of a transaction which relate to the political,
economic, or social instability of the country of the debtor, and is over
and above the credit risk of the borrower.

Courier

1. Attendant who accompanies shipments.
2. Express company which handles shipments of documents and small packages
on an expedited basis and may or may not have the shipments accompanied by
attendants,

CPT (Carriage Paid To...named port of destination)

The seller pays the freight for the carriage of the goods to the named
destination. The risk of loss of or damage to the goods, as well as any
additional costs due to events occurring after the time the goods have been
delivered to the carrier, is transferred from the seller to the buyer when
the goods have been delivered into the custody of the carrier.

Customs

The government service which is responsible for the administration of
Customs law and the collection of duties and taxes relating thereto, and
which has responsibility for the application of other laws and regulations
relative to the importation , transit, and exportation of goods.

Customs Electronic Bulletin Board (CEBB)

(USA) Customs Electronic Bulletin Board (CEBB): An electronic bulletin board
accessible by computer, sponsored by U.S. Customs, providing the trade
community with up-to-date information, clearance requirements, and operation
instructions.

D

DAF (Delivered At Frontier ...named place)

The seller fulfils his obligation to deliver when the goods have been made
available, cleared for export, at the named point and place at the frontier,
but before the customs border of the adjoining country.

Damages

1. A loss or harm to a person or their property.
2. The pecuniary compensation or indemnity which may be recovered by any
person who has suffered loss, detriment or injury to his person, property or
rights through the unlawful act, omission, or negligence of another.

Dangerous Goods

Goods which are capable of posing a health or safety risk.

Date Draft

A draft which matures a specified number of days after the date it is
issued.

Date of Issue

The arbitrary date on a contract or on a financial instrument fixed as the
date from which the term runs. (Neither the actual date on the instrument,
nor the date the instrument was actually signed, nor the date the instrument
was executed, nor the date the instrument was delivered, are considered to
be the "Date of issue" or the "issuance date".)

DDP (Delivered Duty Paid...named place of destination)

The seller fulfils his obligation to deliver when the goods have been made
available at the named place in the country of importation. The seller has
to bear the risks and costs, including duties, taxes and other charges of
delivering the goods thereto, cleared for importation.

DDU (Delivered Duty Unpaid... named place of destination)

The seller fulfils his obligation to deliver when the goods have been made
available at the named place in the country of importation. The seller has
to bear the costs and risks involved in bringing the goods thereto
(excluding duties, taxes and other official charges payable upon importation
as well as the costs and risks of carrying out customs formalities). The
buyer has to pay any additional costs and bear any risks caused by his
failure to clear the goods for import in time.

Deadweight

1. In maritime terms, the deadweight of a vessel is the maximum weight of
the cargo, crew, stores and bunkers that it can carry when loaded so that it
settles in the water to the Plimsoll line. This is also measurable by the
weight of the water the vessel displaces when fully loaded less the
displacement when it was unloaded.
2. Deadweight cargo is cargo of such high density that a long ton (2240
lbs.) of such cargo can be stowed in less than 70 cubic feet.

Dealer

An individual or firm who purchases goods for resale.

Debtor Nation

A nation that is owed less foreign currency obligations than it owes other
nations.

Deck Cargo

Cargo that is shipped on the deck of a vessel rather than in holds below.

Declared Value For Carriage

The value of goods declared to the carrier by the shipper for the purposes
of determining charges and establishing the liability of the carrier.

Declared Value for Customs

The value of a shipment according to the customs laws of the destination
country required to be declared by the shipper on the shipping documents or
by the importer when he presents the goods for customs clearance.

Deferred Air Freight

Arrangements can be made according to the tariffs of some air carriers to
have less urgent freight delivered at a lower cost on later flights which
are more convenient for the airline.

Deferred Payment Letter of Credit

A letter of credit that allows the buyer to take possession of goods by
agreeing to pay the issuing bank or the confirming bank at a fixed future date.

Del Credere Risk

A situation where a sales agent sells on credit and for an additional
commission guarantees to his principal the credit of the purchaser and the
performance of the contract.

Delivery

1. In the case of transportation, the act of transferring physical
possession.
2. The act of actually or of constructively placing goods or property within
the possession or control of another.

Delivery Carrier

The transport carrier whose responsibility it is to place a shipment at the
disposal of the consignee at the named destination.

Delivery Instructions

Specific delivery instructions for the freight forwarder or carrier stating
exactly to whom, where and when goods are to be delivered.

Delivery Order

A document from the consignee, shipper, or owner of freight ordering the
release of freight to another party.

Demise

1. A lease of property.
2. Death. (Isn't English an interesting language?)

Demise charter

A lease of a vessel in which all control is relinquished by the owner to the
charterer, and the charterer bears all the expenses of operation. Similar to
bareboat charter.

Demurrage

1. In international transportation, a charge for the failure to remove cargo
from a terminal within the allowed free time. Also, a charge for failure to
load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against users for use
of carriers' equipment beyond the allowed free time.

DEQ (Delivered Ex Quay - Duty Paid - ...named port of destination)

The seller fulfils his obligation to deliver when he has made the goods
available to the buyer on the quay (wharf) at the named port of destination,
cleared for importation. The seller has to bear all risks and costs
including duties, taxes and other charges of delivering the goods thereto.
(Note: If the parties wish the buyer to clear the goods for importation and
pay the duty, the words "duty unpaid" should be used instead of "duty paid",
and other costs of importation can also be excluded from the seller's
obligations if this is made clear by adding words to this effect.)

DES (Delivered Ex Ship...named port of destination)

The seller fulfils his obligation to deliver when the goods have been made
available to the buyer on board the ship uncleared for import at the named
port of destination. The seller must bear all the costs and risks involved
in bringing the goods to the named port of destination.

Destination

The place to which a shipment or person is going..

Detention

The act of keeping back or withholding either accidentally or by design a
person or thing.

Devanning

The unloading of cargo from a shipping container.

Developed Countries

A term used to describe the industrialized nations.

Developing Countries

A term used to describe countries that lack strong amounts of
industrialization, infrastructure, and sophisticated technology, but are
beginning to build these capabilities.

Differential

An amount added to or deducted from a base shipping freight rate between two
given locations to determine a new rate to or from some other point or via
another route.

Direct Mail Collection (DMC)

A seller may forward his documents and instructions for collecting payment
directly to a collecting bank in a foreign country, without going through
the intermediary of the seller's own domestic bank.

Discharge

1. To release; liberate; annul; unburden; disencounter; dismiss. To
extinguish an obligation; terminate all employment of a person; release, as
from prison or military services.
2. The unloading of passengers or cargo from a vessel, vehicle, or aircraft.

Discharging

The unloading of cargo from a carrier, or of the contents from a container.

Discounted Bill

An accepted draft against which a loan is made and the interest is deducted
immediately.

Discounting

1. The sale at less than original price of a commodity or monetary
instrument, often for immediate payment.
2. A loan by a bank with a deduction of the interest in advance.

Discrimination

A failure to treat all persons or parties equally where no reasonable
distinction can be found between those favored and those not favored. It mat
be reflected in treatment, service or rates.

Dishonor

1. The refusal by a drawee to accept a draft or to pay it when due.
2. The act of disrespect or insult.

Dispatch

1.An amount paid by a vessel's operator to a charterer if loading or
unloading is completed in less time than stipulated in the charter
agreement.
2. a message or report to a newspaper from a correspondent, or between
government services such as state or military.
3. to send to a destination.

Distribution Service

A transportation service that accepts a shipment from a shipper and at
destination separates and sorts the packages and distributes them to many
receivers.

Distributor

An agent who sells for a supplier at wholesale and usually maintains an
inventory of the supplier's products.

Diversion

Any change in the routing of a shipment once it has been received by the
carrier at point of origin and prior to delivery at destination.

Dock

1. A loading or unloading platform at an industrial location or carrier
terminal.
2. A ship's berth or wharf.

Dock Examination

(USA) Examination of imported merchandise by Customs at the terminal where
it is discharged from the import carrier.

Dock Receipt

A receipt issued by a vessel agent that certifies that goods have been
received.

Documents Against Acceptance (D/A)

As a procedure to collect payment on an exported shipment. instructions are
given that documents necessary to obtain the merchandise from customs and
the carrier are to be released to a buyer only against the buyer's
acceptance of a time draft drawn upon him.

Documents Upon Payment (D/P)

As a procedure to collect payment for an export shipment, instructions are
given that the documents necessary for the buyer to obtain the shipment from
customs and the carrier are to be released to him only upon payment of the
draft. (Same as CAD)

Dolly

A piece of equipment with wheels used to move freight with or without a
tractor.

Domestic Exports

Exports of goods which were grown, produced, mined, or manufactured in the
country from which exported.

Domicile

That place where a person or organization has their principal residence with
intent to make it their permanent home.

Door-To-Door

Shipping service from shipper's door to consignee's door.

Double-Column Tariff

A customs tariff schedule with two columns of rates, one for preferred
trading partners and one for imports from others.

Downstream Dumping

The sale of products below cost or below fair value by a producer to a
another producer in its own domestic market by whom the product is then
further processed and exported to another country at a price lower than
would otherwise be charged and thus causing injury in that country.

Drawback

(USA) A refund of duty and taxes which may be obtained upon the exportation
or destruction of certain articles under certain conditions.

Drawback System

(USA) An Automated Customs System module that provides the means for
processing and controlling all types of drawback entries.

Dray

A vehicle used to haul cargo or goods, usually drawn by a horse.

Drayage

The charge made for hauling freight via carts, drays or trucks.

Drop Shipment

At the request of a wholesaler, a shipment of goods from a manufacturer
directly to a dealer or consumer, avoiding delivery to the wholesaler.

Drop-off

The delivery of a shipment by a shipper to a carrier for transportation.

Dry Cargo

Cargo which is of solid, dry material. It is not liquid or gas, and
generally the term excludes cargo requiring special temperature controls.

Dry-Bulk Container

A shipping container designed to carry unpackaged free-flowing dry solids
such as grain or sand.

Dry-Cargo Container

Any shipping container designed to transport goods other than liquids or
gasses.

Dual Exchange Rate

The existence of two exchange rates for a single currency for use in
different circumstances as mandated by the government.

Dual Pricing

The selling of identical products in different markets for different prices.

Dumping

The sale of goods in a foreign country at less than" fair value" (a price
lower than that at which it is sold within the exporting country or to third
countries), and which thereby materially injures, or threatens to materially
injure, that industry in the foreign country.

Dunnage

Materials placed around cargo to prevent shifting or damage while in
transit.

Durable Goods

Any product which is not consumed through use.

Dutiable List

The list of Items in a country's tariff schedule on which it charges import
duty.

Duty

A tax levied by a government on the import or export of goods.
(Note: The U.S. Constitution forbids the levying of taxes by the U.S. on
exports. However, most foreign governments do not have this restriction,)

E

Easement

A right to use another person's property.

Edge Act Corporations

Banks that are subsidiaries either to bank holding companies or other banks
established to engage in foreign business transactions.

Electronic Commerce

A system of integrated communications, data management, and security
services that allow business applications within different organizations to
automatically interchange information.

Electronic Data Interchange (EDI)

Electronic transmission of data and information according to particular
protocols .

Electronic Funds Transfer

System of transferring funds from one account to another by electronic
means.

Electronic Meat Health Certificate

(USA) A demonstration project that illustrates the electronic transmission
of fresh meat health certificates.

Electronic Visa Information System (ELVIS)

(USA) An electronic data system via which participating foreign governments
transmit electronically to the U. S. Government details of shipments of
quota controlled textile goods they have made to the U.S.

Embargo

A government prohibition of exports or imports with respect to specific
products or specific foreign countries.

En Route

In transit (referring to goods, passengers, or vessels).

Entrepot

An intermediary storage facility (often in an intermediate country) where
goods are kept temporarily for distribution.

Entrepot Trade

The import and export of goods which receive no further processing but are
distributed from the entrepot facility which is chosen for its location and
lack of restrictions on trade,

Entry

1.That documentation required to be filed with the appropriate customs
officer to secure the release of imported merchandise from customs custody.
2. The act of filing that documentation.

Entry Documents

The documents required to complete customs entry to secure the release of
imported merchandise.

Entry Summary

(USA) Documentation which is necessary to enable US Customs to collect
duties, collect statistics, and determine whether other requirements of law
or regulations are met upon importation. In the US, the importer must
classify the goods, determine their customs value, and calculate duties,
taxes and fees.

Entry Summary System

(USA) An Automated Customs System module that automates the entry processing
cycle.

Environmental Protection Agency (EPA)

(USA) An independent agency in the executive branch whose mandate is to
control and abate pollution in the areas of air, water, solid waste,
pesticides, radiation, and toxic substances.

Equalization

In transportation, a money allowance given the customer if the transport
company picks up the goods at origin points or delivers them to destination
points other than those named on the bill of lading.

Escape Clause

1. A provision in a bilateral or multilateral commercial agreement
permitting a signatory nation to change their obligations when imports
threaten serious harm to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting parties to avoid
liability for nonperformance under certain conditions.

ETA

The expected date and time of arrival of a carrier.

ETD

The expected date and time of departure of a carrier.

Eurobond

A bond issued in a Euro-currency, usually Euro-dollars

Ex Factory

This term is still widely used but it is being replaced by the Incoterm EXW
- Ex Works. It is a sale term where the title to goods passes to the buyer
when they leave the vendor's dock and consequently at that point the
liability for loss or damage and the expenses of shipment also pass from
vendor to buyer.

Exchange Rate

The price of one currency expressed in terms of another.

Excise Tax

Taxes on the manufacture, sale, or consumption of goods, or upon licenses to
pursue certain occupations, or upon corporate privileges. In current usage
it covers various license fees imposed by government and practically every
internal revenue tax from any source except the income tax.

Exculpatory Clause

1. A contractual clause that releases one party from liability in case of
wrong doing by the other party involved.
2. A contractual clause which excuses a trustee from liability where he
executes a power in good faith.

Expiry Date

The "End", specifically: the cessation; termination by lapse of time as the
expiration of a lease, insurance policy, or statute. Coming to a close or
termination. The expiry date is the date on which these events occur. It is
the last date that options or warrants can be executed.

Export

To send or transport goods abroad out of a customs territory; to sever them
from the mass of things belonging to one country with the intention of
uniting them to the mass of things belonging to a foreign country.

Export Broker

A firm that specializes in bringing foreign buyers and domestic sellers
together for a fee but usually does not participate in the actual business
transaction.

Export Control

The establishment of procedures for the governmental control of exports for
statistical or strategic purposes.

Export Declaration

(USA) The Shipper's Export Declaration is a required customs document for
exportation of goods from the United States which provides statistics and
facilitates control where applicable.

Export Draft

A documentary order in the form of a draft drawn on the importing party to
pay the seller for the exported goods.

Export Duty

A tax imposed by some nations on their exports.

Export License

A license issued to exporters by governments to permit them to export
certain goods to certain countries. Such goods may be of strategic
importance, or simply in short supply, or are controlled to comply with
foreign agreements.

Export Management Company

A private firm that serves as the export department for several
manufacturers and handles the exporting aspect of the business for a
commission or fee.

Export Merchant

A company that buys domestic and foreign products and sells to foreign
purchasers. Usually an export merchant is able to compete because of
specialized knowledge of the products in which they deal, detailed knowledge
of foreign markets, and expertise in international trading techniques.

Export Processing Zone

Industrial parks designated by a government to provide tax and other
incentives to export firms.

Export Quotas

Specified maximums which a nation places on the value or volume of certain
of its exports.

Export Restraints

Restrictions which a nation places upon its exports, often to avoid more
burdensome restrictions being applied by the importing nations.

Export Statistics

The statistics that cover the exports from one country to other countries.

Export Subsidies

Government payments to induce exportation by domestic producers.

Export Trading Company

A corporation organized for the principal purpose of exporting goods and
services.

Exporter

An individual or company that ships goods from one country to another in the
course of trade.

Exporter Identification Number

(USA) An identification number assigned to exporters of goods from the
United States which is required to be shown on the Shipper's Export
Declaration for all shipments from the USA..

External Value

The purchasing power of a currency abroad, converted using the exchange
rate.

Extradition

The surrender by one state or country to another of an individual accused or
convicted of an offense within the jurisdiction of the other.

EXW (Ex Works ...named place)

The seller fulfils his obligation to deliver when he has made the goods
available at his premises (i.e. works, factory, warehouse, etc.) to the
buyer. In particular, he is not responsible for loading the goods on the
vehicle provided by the buyer or for clearing the goods for export, unless
otherwise agreed. The buyer bears all costs and risks involved in taking the
goods from the seller's premises to the desired destination.

F

Facilitation

1. Programs designed to expedite the flow of international commerce.
2. The act of freeing more or less completely from obstruction or hindrance.

Factor

1. An agent who receives merchandise under consignment or under a bailment
contract, who sells it for the principal or in the factor's own name, and
who is paid a commission for each sale.
2. A financing company which purchases accounts receivable under agreed
conditions and at agreed discounts and thus makes funds immediately
available to approved sellers.

Factor's Lien

The right of a factor to retain possession of designated assets of the
principal until the factor receives full compensation from the principal.

Factorage

The commission or other compensation paid to a factor.

Fair Value

(USA) In dumping evaluations, it is the price at which the items being
reviewed should have been sold in the home market in order to be considered
as goods offered for export in the usual course of trade at fair market
value and not guilty of being dumped.

FAS (Free Alongside Ship...named port of shipment)

The seller fulfils his obligation to deliver when the goods have been placed
alongside the vessel on the quay or in lighters at the named port of
shipment. The buyer has to bear all costs and risks of loss or of damage to
the goods from that moment.

FCA (Free Carrier...named place)

The seller fulfils his obligation to deliver when he has handed over the
goods, cleared for export, into the charge of the carrier named by the buyer
at the named place or point.

FDA

Food And Drug Administration.

Federal Reserve System

(USA) The equivalent of the central bank of the USA and the coordinator of
monetary policy.

Feeder Vessel

A vessel which is part of a cargo network in which the larger, faster
vessels only call at the major ports at both ends of the area being covered,
and the smaller ports are served by the smaller feeder vessels which
transfer the cargo to and from the major port terminals and thus keep the
larger vessels filled closer to capacity and spare them the expense and loss
of time in loading and unloading in the subsidiary ports.

FEU

Forty foot equivalent units of shipping containers. (Two 20 ft containers =
1 FEU).

Financial Instrument

A document which has a monetary value or is evidence of a monetary
transaction, such as drafts, bills of exchange, checks and promissory notes.

Financial Market

Market for the exchange of capital and credit in an economy.

First World Countries

"Western, industrialized, non-communist countries," was the previously
accepted criteria, but in view of the emergence of Japan as an economic
power and the rising status of Russia and China, "industrialized" is
probably the only remaining valid criterium for a "First World Country" at
this time.

Five Dragons

Term used to describe the emerging economies of Hong Kong, Singapore, South
Korea, Taiwan, and Thailand.

Fixed Charges

1. Charges which do not increase or decrease with a change in volume.
2. Expenses that have to be borne whether any business is done or not.

Fixed Exchange

1. When Governments or their Central Banks administratively set the exchange
rate for their currency.
2. An administratively set exchange rate where no rate fluctuations are
permitted.

Fixing

The setting of a price by a known method at regular times. For example, the
establishment of an official exchange rate, interest rate, or security or
commodity price.

Flag

A reference to the country of registry of a vessel.

Flag of Convenience

The national flag flown by a ship that is registered in a country other than
that of its owners. (Usually arranged in order to save taxes and operating
expenses)

Flight of Capital

The movement of capital to another country to avoid loss.

Floating

Free determination of rates based on supply and demand, for example exchange
rates or interest rates.

Flotsam

Floating debris or wreckage of a ship and its cargo.

FOB (Free On Board ... named port of shipment)

The seller fulfils his obligation to deliver when the goods have passed over
the ship's rail at the named port of shipment. The buyer has to bear all
costs and risks of loss or damage to the goods from that point.

Force Majeure

A condition of superior or irresistible force such as Acts of God, including
earthquakes and floods, which cannot be avoided by the exercise of due care
and is included in contracts to excuse parties from performance when such
events occur.

Foreign Bond

An international bond usually denominated in the currency of the country
where it is issued.

Foreign Commerce

Trade between individuals or legal entities in different countries.

Foreign Currency

The currency of any foreign country which is authorized by that country as
the medium of circulation.

Foreign Exchange

Currency of countries exchangeable for other currencies according to their
relative values based on supply and demand.

Foreign Exchange Contract

A contract for the sale or purchase of the currency of one country to be
paid for with the currency of another country, specifying an amount, an
exchange rate, and delivery date.

Foreign Exchange Rate

The rate or price of the currency of one country in terms of the currency of
another.

Foreign Exports

1. (USA) Exports from the United States of foreign origin merchandise. (for
the purposes of USA export statistics)
2. Exports by other countries..

Foreign Flag

The national identification of a carrier registered in a foreign country. A
vessel flies the national flag of the country in which it is registered, and
it may be registered in a country different from that of its owner.

Foreign Income

Income gained by residents of one country from another country.

Foreign Investment

The purchase of assets which are abroad.

Foreign Market Value

From the American point of view it is the price at which merchandise is sold
at wholesale in the principal markets of the country from which it is
exported.

Foreign Parent

The first foreign person or entity outside the United States in an
affiliate's ownership chain that has direct investment in the affiliate.

Foreign Person

1. A person belonging to or under citizenship of another country.
2. Using the United States as an example, a person who resides outside of
the United States or is subject to the jurisdiction of another country other
than the United States is a "foreign person".

Foreign Remittances

The transfer of any funds across national boundaries.

Foreign Trade Zone Act (FTZA)

(USA) The act which established foreign trade zones in the USA.

Forward Foreign Exchange

An agreement to purchase or sell an amount of foreign currency at a future
date at a predetermined price.

Foul Bill of Lading

A bill of lading issued with notations on it which limit the carrier's
liability; for example, a notation that the goods were received damaged, or
short, or improperly packaged.

Fractional Currency

Any currency that is smaller than a standard money unit.

Franco

Free from duties, transportation charges and other levies.

Free Domicile

"Free Domicile" is still a widely used pricing term to describe when the
shipper pays all the applicable duties and all the transportation and other
charges until delivered to the buyer's premises. The term is being replaced
by Incoterm "DDP - Delivered Duty Paid ... named point of destination."

Free In and Out

A pricing term indicating that the vessel operator is responsible for the
cost of loading and unloading.

Free List

A schedule of items in a customs tariff that are not subject to the payment
of duties.

Free Market

A market in which there is unrestricted trading of goods with prices
determined by supply and demand. Internationally, there is an unrestricted
movement of goods in and out , and it is unhampered by the existence of
tariffs or other trade barriers.

Free Port

An area where imported goods may be brought without payment of duties.

Free Time

1. The time allowed shippers and receivers to load or unload rail cars
before demurrage or detention.
2. The time allowed consignees to take physical delivery of cargo before
storage or demurrage is assessed.

Free Zone

An area within a country (a seaport, airport, warehouse or any designated
area) regarded as being outside its customs territory where importers may
bring goods of foreign origin without paying customs duties and taxes,
pending their eventual processing, transshipment or re-exportation.

Free-Astray

A shipment or part of a shipment which has been dropped off at a wrong
location by a carrier

Freight

1. All merchandise, goods, products, or commodities shipped by rail, air,
road, or water, other than baggage, express mail, or regular mail.
2. The compensation paid for the transport of goods.

Freight Charge

The charge assessed for transporting cargo.

Freight Claim

1. A demand upon a carrier for the repayment of overcharge.
2. A demand upon a carrier for cargo loss or damage.

Freighter

A ship or airplane used primarily to carry cargo.

Fungibles

Goods that, for commercial purposes, are identical with other goods and
interchangeable in all situations.

Futures Contract

A contract for the future delivery of a specified commodity, currency or
security on a specific date at a rate determined in the present.

G

Gang

Maritime: A group of longshoremen under a supervisor who are assigned to
load or unload a portion of a vessel.

Gangway

1. The opening through which a ship is boarded.
2. A platform connecting quarterdeck and forecastle of a ship.

Gantry Crane

A specialized crane which travels on a structure which can span a wide area
and raises and lowers cargo. Some of them span the deck of a vessel.

Gateway

1. A major airport or seaport;
2. or the port where customs clearance takes place;
3. or a point at which freight moving from one territory to another is
interchanged between transportation lines.

Geisha Bond

Bond issued on the Japanese market in currencies other than yen.

General Agreement On Tariffs And Trade (GATT)

Both a multilateral trade agreement aimed at expanding international trade
and the organization which oversees the agreement. The main goals of GATT
are to liberalize world trade and place it on a secure basis thereby
contributing to economic growth and development and the welfare of the
world's people. The organization, GATT, has been succeeded by the World
Trade Organization (WTO).

General Average

1. loss that affects all cargo interests on board a vessel as well as the
ship herself.
2. An internationally accepted rule of the sea which says when a peril
threatens the survival of the ship, there may be sacrificed (thrown
overboard) any cargo or supplies or ships' furnishings, and any expense
incurred necessary to save the ship. If the vessel is saved, all cargo
owners, ship owner, and owners of the freight revenue share pro rata in the
loss.

General Cargo Rate

The rate a carrier charges for the transportation of cargo which does not
qualify for a lower special class or commodity rate in the carrier's tariff.

General Cargo Vessels

A vessel designed to handle breakbulk cargo such as bags, cartons, cases,
crates and drums, either individually or in unitized or palletized loads.

General Commodity Rate

In a maritime tariff, a freight rate applicable to all commodities except
those for which specific rates have been filed.

General Imports

The total physical arrivals of merchandise into one country from foreign
countries during a period of time..

General Liability

Unlimited responsibility for an obligation, such as payment of debts of a
business.

General Order

(USA) The customs requirement that goods not cleared within a specific
number of days after arrival of the carrier must be taken into custody of
customs and deposited in a warehouse at the risk and expense of the
consignee.

General Order Warehouse

(USA) A bonded warehouse authorized by customs to store goods sent to
General Order.

General Partnership

A partnership where all partners have joint ownership. They share the
profit, losses and management equally and each has personal liability for
all the debts.

General Tariff

A tariff that applies to countries that do not enjoy either preferential or
most favored nation tariff treatment.

Generalized System Of Preferences (GSP)

A program providing for free rates of duty for merchandise from beneficiary
developing independent countries and territories to encourage their economic
growth.

Global Bond

A bond that can be traded in any United States capital market and in the
Euromarket with special arrangements made for transferability between the
markets.

Global Quota

A quota set by a nation on the total imports of a product from all
countries.

Gold Exchange Standard

A monetary system adopted by some countries which did not have enough gold
to go onto the gold standard so they deposited their gold with one of the
leading gold standard countries and made their currency more or less freely
convertible to the currency of that country.

Gold Reserves

Gold retained by a nation or its central banks contributing to the nation's
creditworthiness in the issuance of bonds and currency, although there may
be no commitment by it to exchange gold for its currency.

Gold Standard

A monetary system whereby every form of currency issued by a country is
convertible on demand into its legal equivalent in gold or gold coin

Gondola Car

An open railway car with sides and ends, used principally for hauling coal,
sand, etc.

Goods

Merchandise; supplies; raw materials; wares; commodities; products. The
meaning may vary in various situations but for purposes of a contract for
storage or transportation, or with reference to collateral for security, it
means all things treated as movable.

Grantee

1. One to whom a grant is made; a grant being the giving or permitting as a
right or privilege, an authority, a power, a license, or a property.
2. (USA) As to foreign trade zones in the US, a corporation to which the
privilege of establishing, operating, and maintaining a foreign trade zone
has been granted by the Foreign Trade Zone Board.

Green Card

A popular name for an identity card (visa) issued by the U.S. Immigration
and Naturalization Service entitling a foreign national to enter and reside
in the United States as a permanent resident.

Grid

Fixed margin within which exchange rates are allowed to fluctuate.

Gross

1. 12 dozen or 144 articles.
2. Total (as in "Gross Weight".)

Gross Domestic Product

A measure of the market value of all goods and services produced within the
boundaries of a nation. It excludes income from external enterprises or
investments.

Gross National Product

A measure of the market value of all goods and services produced within the
boundaries of a nation plus receipts from foreign business activities and
investments beyond the national boundaries.

Gross Weight

The total weight of a package or a shipment, including goods and packaging.

H

Hallmark

1. Originally an impression made on gold and silverware introduced in the
beginning of the fourteenth century in England to identify the quality of
the metal used. Later, a mark to identify the maker and year of production.
2. Figuratively, a distinguishing characteristic.

Harbor Fees

Charges assessed to users for use of a harbor, used generally for
maintenance of the harbor.

Harbor Master

An officer who is commander of harbor activities and directs the berthing,
etc. of ships in a harbor.

Hard Loan

A foreign loan that must be paid in hard money.

Hard Money

Currency of a nation having stability in the country and a reputation abroad
for economic strength, and as a result it has wide and ready acceptability
on world markets.

Harmonized System (HS)

A multipurpose international goods classification system designed to be used
by manufacturers, transporters, exporters, importers, customs,
statisticians, and others in classifying under a single commodity code goods
moving in international trade.

Harmonized Tariff Schedule of the United States (HTSUS)

(USA) An organized listing of goods and their duty rates which is used as
the basis for classifying imported products and identifying the rates of
duty to be charged on them. It is based on the international Harmonized
System Convention.

Harter Act

(USA) An 1893 Federal Statute regarding ocean bills of lading and limitation
of some carrier liabilities. It has been substantially superseded by the
Carriage of Goods by Sea Act of 1936 and others.

Hatch

The opening in the deck of a vessel which gives access to a cargo hold.

Haulage

1. The local transport of goods.
2. Also the charge(s) made for hauling freight on carts, drays or trucks.
3. Also called cartage or drayage.

Hazardous Materials

A substance or material which has been determined to be capable of posing an
unreasonable risk to health, safety, and property when transported in
commerce.

Heavy Lift

Any article deemed by rules in a vessel's tariff to be beyond a certain
weight. It may be too heavy for the ship's tackle and require special
equipment such as a floating crane.

Heavy Lift Charge

In a maritime tariff, a charge made for lifting heavy articles to load or
unload them.

Heavy Lift Vessel

A vessel with heavy lift cranes and other equipment designed to be
self-sustaining in the handling of heavy cargo.

Hedge

To reduce one's risk of loss by compensating transactions on the other side.
For example, buy goods for future delivery priced in a foreign currency.
Hedge by buying the foreign exchange needed at the rate then in effect. Or,
another way of hedging is to buy a forward exchange contract. In both cases
the buyer will have a known cost in its own currency. This is a hedge
against the risk of foreign exchange fluctuation; it is not a hedge against
a change in the price of the goods.

Hedge Ratio

The amount of future exchange contracts, options, or underlying financial
instruments, purchased or sold against a position to accomplish a hedge of
the position.

High Density

High density cargo is cargo whose weight is high compared to its volume. A
vessel tariff in which freight is charged according to weight or volume,
whichever yields the highest freight charge, will result in high density
freight being charged on a weight basis.

Hitchment

In maritime situations, if the tariff of the steamship company provides for
it, portions of a shipment originating in different places may be joined
together under one bill of lading from one shipper to one consignee at one
destination.

Hold

1. The interior of a vessel below deck where cargo is carried.
2. to delay; to pause (verb); a delay; a pause (noun).
3. A verb with multiple other meanings than those noted above such as: to
retain, to contain, to maintain, to bind, to bear, to own.

Hold For Pickup

Freight to be held at the carrier's destination location for pickup by the
recipient.

Hold Harmless Contract

An agreement by which one party accepts responsibility for all damages and
other liability that arise from a transaction, relieving the other party of
any such liability.

Honor

To accept a bill of exchange; or to pay a note, check or draft at maturity.

Horizontal Export Trading Company

An export trading company which exports a range of similar or identical
products supplied by a number of manufacturers who may be competitors on the domestic market.

House Air Waybill

1. A bill of lading issued by a freight forwarder for consolidated air
freight shipments.
2. An airwaybill issued by an airfreight forwarder by which the forwarder
assumes the risk and obligations of being "the carrier."

House-To-House

A shipping term indicating that a container will be offered by the carrier
for use by the shipper and the receiver for the transport of the contents
from the domicile of one to the domicile of the other, but the carrier only
contracts to transport the loaded container from terminal at origin to
terminal at destination.(usually called C/Y to C/Y - container yard to
container yard.)

Hub And Spoke Routing

Air cargo routing pattern that feeds traffic from many places to a central
airport where it is sorted and rerouted on other aircraft to final
destinations.

Hull

The outer shell of a vessel.

Hump

An essential feature of a railcar sorting yard . The "hump" is that part of
the track which is elevated so that when a car is pushed up on it and
uncoupled, it runs down the other side by gravity and is switched onto the
siding where a train is being made up for the desired destination.

Hundredweight Pricing

In transportation, special pricing for multiple-piece shipments (weighing
over 100 pounds in total) traveling to one destination, which are rated on
the total weight of the shipment as opposed to rating on a per package
basis.

I

Irrevocable Corporate Purchase Order

A purchase order completed by a buyer on corporate letter head indicating
type and quantity of products being ordered from a supplier.

Identical Merchandise

(USA) For U.S. Customs purposes of appraisement, identical merchandise means
merchandise identical in all respect to and produced in the same country and
by the same person as, the merchandise being appraised.

Immediate Delivery(ID)

(USA) In certain circumstances, merchandise may be released by U. S. Customs under a special permit for immediate delivery with entry summary (details) and duty to be submitted subsequently. It is a procedure principally
utilized along the land borders.

Immediate Transportation Entry

(USA) A form of U.S. Customs entry which allows imported merchandise to be
transported under bond to another port for customs clearance thereat.

Immigration

The entry of foreign nationals into a country for the purpose of
establishing permanent residence.

Implied Conditions

Certain implied conditions are not written into marine insurance policies,
but they are so basic to the understanding between the underwriter and the
assured that the law gives them much the same effect as if written. (In many
other types of contracts there also may be "implied conditions," for example
a seller of goods implies that they are fit for the purpose they purport to
serve.)

Import

The act of bringing or causing any goods to be brought into a customs
territory.

Import Credit

A commercial letter of credit issued for the purpose of financing the
importation of goods.

Import Duty

Customs duty which is collected on in connection with the importation of
goods.

Import License

An import license (or import permit) is an authorization by a competent
authority for the importation of goods which are subject to restriction.

Import Quota

A protective device establishing limits on the quantity of a particular
product that may be imported into a country.

Import Quota Auctioning

The process of auctioning the right to import specified quantities of
quota-restricted goods.

Import Relief

Any of several measures imposed by a government to temporally restrict
imports of a product or commodity to protect domestic producers from
competition. Or, any of several measures to strengthen domestic producers
such as subsidies, educational assistance to workers, training assistance to
workers, low interest loans to producers, tax relief to producers etc.

Import Restrictions

Any one of a series of tariff and non-tariff barriers imposed by an
importing nation to control the volume of goods coming into the country from
other countries.

Import Sensitive Producers

Domestic producers whose economic viability is threatened by competition
(quality, price or service) from imported products.

Import Substitution

A national economic strategy to build up a domestic economy by emphasizing
the replacement of imports by domestically produced goods.

Importer

The individual, firm or legal entity that brings goods, or causes goods to
be brought from a foreign country into a customs territory.

Importer Number

(USA) An identification number assigned by the U.S. Customs Service to each
importer to track entries and other transactions. In most cases the
Taxpayer's Identification Number assigned by the Internal Revenue Service is
the number also used by Customs.

Imports

Goods brought into a customs territory.

Imports For Consumption

The total of merchandise that has physically cleared through the customs of
a country either entering domestic consumption channels immediately or
entering after withdrawal for consumption from bonded warehouses or from
foreign trade zones.

Impost

1. A tax, especially an import duty.
2. To classify an impost in order to fix the duty. (rarely used). (Note: an
imposter is one who imposts. Another definition of an imposter is a
"pretender" but that is not the meaning intended here.).)

Impound

To seize or hold; or to place in custody by order of a court.

In Bond

(USA) A procedure under which goods are transported, stored, or handled,
prior to clearance and release by customs, and the government's interest is
secured by indemnity bonds.

In Bond Shipment

An import or export shipment which has not been cleared by Customs and is
transported, stored, or handled with security to the government provided by
indemnity bonds.

In-Bond System

(USA) A part of U.S. Customs' Automated Commercial System, controls
merchandise from the point of unloading at the place of arrival, while
handled or transported further in bond, until customs cleared.

Incentive

A motivational force that stimulates people to greater activity or increased
efficiency.

Income

Money or its equivalent, earned or accrued, arising from the sale of goods
or services.

Incoterms

An abbreviation of "International Commercial Terms" published by the
International Chamber of Commerce. It is a set of rules for the
interpretation of the most commonly used trade terms in foreign trade which
parties to a contract can agree upon to avoid misunderstandings, disputes
and litigation.

Indemnify

1. To compensate for actual loss sustained.
2. To give security for the reimbursement of a person in case of an
anticipated loss falling upon him.

Indemnity

1. A compensation to make a person whole from a loss already sustained.
2. A contract or assurance by which one engages to secure another against an
anticipated loss.

Independent Action

The right of a conference member to depart from the common freight rates,
terms or conditions of the conference without the need for prior approval of
the conference.

Indexed

In finance this term means "measured by" and/or "adjusted according to,"
thus an interest rate on a note may be, by agreement, "indexed" i.e.
adjusted according to the market at time the interest is due. Or a note
denominated in a foreign currency may have its exchange rate "indexed,"
adjusted according to the market rate in effect at the time of payment.

Indexed Currency Borrowings

Borrowings in a foreign currency where the rate of interest is linked to an
agreed scale, and/or the rate of exchange at repayment is linked to an
agreed scale.

Indexed Currency Option Note

Note denominated and paying interest in one currency but whose redemption
value is linked to an exchange rate for another currency.

Industrial List

(USA) The Coordinating Committee for Multilateral Export Controls industrial
list contains dual-use items (usable for military or nuclear purposes in
addition to normal commercial uses) and as a result whose export is
controlled for strategic reasons.

Industrial Policy

Encompasses traditional activist governmental policies intended to provide a
favorable economic climate for the development of industry in general or
specific industrial sectors.

Infant Industry Argument

The view that "temporary protection" for a new industry or firm in a
particular country through tariff and non-tariff barriers to imports can
help it to become established and eventually competitive in world markets,
in which case the protective measures will no longer be needed.

Inflation

Loss of purchasing power of money caused by growth of the amount of money in circulation and reflected in a rise in prices without a proportionate
increase in value of the things purchased..

Informal Entry

(USA) A simplified import entry procedure accepted at the option of Customs
for any baggage or commercial shipment that does not exceed a specified
value.

Informed Compliance

(USA) A term that describes the improved ability of a entity to comply with
Federal rules and regulations through easy access to up-to-date information.

Infrastructure

The institutions and fundamental organizations which support the basic
structure of a nation's economy, among these are: the educational system,
the transportation systems, the banking system, the public utilities, the
water supply system, the sanitation system, the health maintenance network,
the public security and safety systems, the communication systems, the
postal system etc.

Inherent Vice

The inherent physical properties of goods which may cause them to suffer
deterioration or damage without outside influence. (For example: spontaneous
combustion, rust etc.)

Injury

1. (USA) A finding by the U.S. International Trade Commission that an import
is causing harm (material injury) or threatening to cause harm (material
injury) to a U.S. industry...(If caused by sales to the U.S. at "less than
fair value", it may be considered "dumping" and trigger "antidumping
duties", or if it is caused by foreign subsidies or bounties, it may trigger
"countervailing duties").
2. A wrong or damage done to another, either in his person, rights,
reputation, or property.
3. The invasion of any legally protected interest of another.

Inland Bill of Lading

A bill of lading used in transporting goods overland.

Inland Carrier

A transportation line which hauls cargo inland: truck, rail, barge, inland
waterways, or domestic airline flights.

Inspection Certificate

A document describing the condition of goods and confirming that they have
been inspected.

Instrument

Any written document that gives formal expression to a legal agreement or
act.

Integrated Cargo Service

A blend of all segments of the cargo system providing the combined services
of carrier, forwarder, handlers, and agents, utilizing all forms of
transport.

Integrated Carriers

Carriers that have multiple varieties of fleets (i.e. air and ground, truck
and rail, etc.).

Intellectual Property

Non-tangible property that is the result of creativity such as copyrights
and patents.

Interbank Dealings

Dealings between banks.

Interchange Agreement

An agreement that specifically lays out the terms of leasing or temporarily
borrowing equipment from a carrier. A frequent use of an interchange
agreement is between an ocean carrier and a trucking company when the
trucking company takes a container from the pier for delivery to the
consignee.

Interchange Point

A location where one carrier delivers freight to another carrier.

Interline Shipping

The movement of a single shipment on two or more carriers.

Intermodal Compatibility

The physical capability of a shipment of goods to be transported from one
form of transportation to another.

Intermodal Transport

Coordinated transport of freight using multiple methods of transportation.

International Trade

The business of buying and selling commodities beyond national borders.

International Trade Data System

A proposed electronic system that would integrate the different government
trade and transportation data processes into a system that provides a
standard means of gathering, processing, storing and disseminating import
and export trade data. See IT06.

Interstate Carrier

(USA) A common carrier whose business extends beyond the boundaries of one
state.

Interstate Commerce

(USA) Trade, transport, and communication between or among the several
states of the United States.

Invisible Barriers to Trade

Government regulations (national and local), and cultural conditions that do
not directly restrict trade but hinder it with excessive and obscure
requirements.

Invisible Trade Balance

The balance of trade reflecting the import and export of services.

Invoice

A written account or itemized statement, usually on a printed form with the
name and address of the seller, listing merchandise sold or shipped to a
purchaser, consignee, factor etc., showing their name and address, and
containing a description of the merchandise, the quantity, values or prices
and charges, and other significant details of the transaction such as the
terms of sale and the currency of the purchase.

Inward Foreign Manifest (IFM)

(USA) A U.S. Customs mandated document requiring the complete listing by
bill of lading number or airwaybill numbers of an arriving carrier's cargo.
It should give the commercial particulars of the goods including:
consignors, consignees, marks and numbers, number and kind of packages,
their weights or measures, descriptions and quantities of the goods, their
port of loading and intended port of discharge.

Irrevocable Letter of Credit

A letter of credit which cannot be amended or canceled without prior mutual
consent of all parties to the credit.

Issuance

1. The execution, validation, and tender of delivery of a contract or
financial instrument to the appropriate party.
2. The act of sending forth, promulgating, or the giving of a thing its
first inception. The first delivery of an instrument to a holder or
remitter.

Issuance Date of the Documents

The date indicated on documents as their date of preparation, subject to
correction when necessary as noted above under the term "issuance" and under
the definition of "Date of Issue" elsewhere in this glossary.

IT06

An initiative calling for the development of an international trade data
system sponsored by the US Government that will meet the needs of Federal
agencies involved in international trade as well as the trade information
needs of businesses and the general public.

J

Jetsam

Articles from a ship or ship's cargo that were thrown overboard, (usually to
lighten the load in times of emergency or distress.). The articles may sink
or be washed ashore.

Jettison

The act of throwing overboard at sea part of a vessel's paraphernalia or
cargo or hull - usually in hopes of saving the ship from sinking.

Joint Agent

A person having authority to transact business for two or more principals .
In transportation it is a common occurrence.

Joint And Several Liability

Liability for damages imposed on two or more individuals or legal entities
who are responsible together and individually, allowing the party harmed to
seek full remedy against all or any number of the wrongdoers.

Joint Rate

A single freight rate on cargo moving via two or more carriers who then
share the income..

Joint Stock Company

An unincorporated business enterprise with ownership interests represented
by shares of stock. Also a joint Stock Association.

Joint Venture

A combination of two or more individuals or legal entities who undertake
together a transaction for mutual gain or to engage in a commercial
enterprise together with mutual sharing of profits and losses.

Jurat

A statement signed by a person authorized to take oaths certifying to the
authenticity of a document or affidavit.

Juristic Act

Action intended to, and capable of having, a legal effect, such as the
creation, termination, or modification of a legal right.

Just In Time

The principle of production and inventory control that prescribes precise
controls for the movement of raw materials, component parts and
work-in-progress. Goods are expected to arrive when needed for production
rather than arriving prior to need and becoming inventory.

K

Keelage

The charges paid by a ship entering or remaining in certain ports.

Key Currency

A major currency in the global economy. Key currencies include the U.S.
dollar, the British pound sterling, the German mark, the Swiss franc, the
French franc, the Dutch guilder, the Japanese yen and the Canadian dollar.

Kiosk

A small structure suitable for use as a newsstand, display stand, bandstand,
study stand etc.

Knocked Down

An article disassembled, or unassembled, or taken apart, or folded, or
telescoped to reduce its bulk; subject to easy assembly. This is usually
done to reduce the dimensions of the shipping package and thereby to save
transportation and storage costs.

Known Loss

1. loss discovered before or at the time of delivery of a shipment.
2. An evident loss (as opposed to a concealed loss or damage to contents
within a package.)
3. A loss of which the insured and/or the insurer is aware at the time the
insurance is effected.

L

Laissez-faire

A term used to describe minimal governmental involvement in an economy,
allowing market forces and individuals to make their own decisions, with
little or no regulation.

Landbridge

The movement of cargo (usually in containers) from one foreign country by
vessel, transiting another country by rail or truck, and then being loaded
aboard another vessel for delivery to the destination country. The movement
across the country from port to port is the "landbridge" portion of the
transportation.

Lanham Act Of 1947

Federal legislation governing trademarks and trademark registration.

Lay Order

The period during which imported merchandise may remain at the place of
unloading without some action being taken for its disposition.

Lead Time

That period of time needed to prepare for an action.

Legal Entity

Any individual, proprietorship, partnership, corporation, association, or
other organization that has, in the eyes of the law, the capacity to make a
contract or an agreement, and the ability to assume an obligation and to
discharge an indebtedness.

Legal Tender

Any money that is recognized as being lawful for use by a debtor to pay a
creditor, who must accept same in the discharge of a debt unless the
contract between the parties specifically states that another type of money
is to be used. It is that money which is lawful for the payment of all
debts, public and private, public charges, taxes, duties and dues.

Less Than Truckload

A shipment which does not completely fill a truck or which weighs less than
the weight required for the application of the truck load freight rate
(which is usually a lower freight rate than applied to less-than-truckload
cargo.)

Letter Of Assignment

A document with which the assignor assigns its rights to a third party, the
assignee.

Letter Of Credit

A commitment, usually by a bank on behalf of a client, to pay a beneficiary
a stated amount of money under specified conditions.

Letter of Indemnity

A document which the writer issues to another party agreeing to protect them
from liability for the performance of certain acts.
1. In the case of international transportation when a negotiable bill of
lading has been issued but is not available for surrender to the carrier
when it is desired to take delivery of the shipment, a bank may issue a
letter of indemnity to the carrier to persuade them to release the cargo. (A
Letter of Guarantee may also be used ). The bank will usually obtain a
similar letter from its client to protect itself against the liability it
assumes on behalf of the client.
2. On export shipments, some carriers may permit shippers to issue letters
of indemnity to the carriers in order to secure from them clean bills of
lading in place of foul, or to replace lost original bills of lading.

Letter of Intent

A document that describes the preliminary understanding between parties who
intend to make a contract or join together in another action.

Licensing Agreement

The issuance of a license permitting the use of patents, trademarks, or
other technology.

Lift Van

A wooden or metal container used for packing household goods and personal
effects.

Lighter

A barge towed by a tugboat and used mainly in harbors and inland waterways
for the transport of cargo to and from ships. Some may be self-powered,

Lighter Aboard Ship

Some ships are constructed to carry special barges (lighters). These barges
can go to smaller docks, go into inland waterways, load cargo at those
places, and then carry it back to the ship which lifts the barges aboard,
with their cargo, and transports them overseas. Discharge of cargo is
accomplished in the same manner.

Lighterage

The loading or unloading of a ship by means of a lighter (barge), especially
when shallow waters prevent an ocean going vessel from approaching a berth,
or if berths are unavailable.

Limitation Period

A maximum period set by a statute within which a legal action can be brought
or a right enforced.

Limited Liability

1. Restricted liability for obligations.
2. (USA) Limitation of Liability Act. A U.S. statute which permits a
shipowner to restrict his liability to whatever value his ship has after an
event such as a sinking or collision.

Limited Partnership

A partnership in which at least one of the partners is a general partner who
conducts the business and has personal liability for the partnership debts,
and at least one of the other partners is a special partner who shares in
the profits and losses but their liability is limited to the sum they
contribute to the partnership.

Line Haul

The direct movement of freight between two major ports by a single ship.

Line Haul Vessel

A vessel which is on a regularly defined schedule between ports,

Line Release System

(USA) A separate part of the U.S. Customs' Automated Commercial System used
for truck traffic along the land borders designed for the release and
tracking of shipments through the use of personal computers and bar code
technology.

Liner

A vessel carrying passengers and cargo that operates with a fixed schedule
on a particular route.

Liner Terms

Conditions under which a shipping company will transport goods, including in
the amount payable for freight the cost both for loading and discharge of
the cargo from the vessel.

Liquidated Damages

A sum of money that a contracting party agrees to pay to the other party for
breaching an agreement.

Liquidation

1. The act or process of settling or making clear, fixed and determined.
2. The winding up and settlement of a debt.
3. The winding up of the financial affairs of a business.
4. (USA) The final computation or ascertainment of the duties accruing on an
entry.

Liquidation System

(USA) A part of U.S. Customs' Automated Commercial System, which closes the
file on each entry.

Liquidity

1. The availability of liquid funds in an economy.
2. The status or condition of a person or business in terms of its ability
to convert its assets into cash and to meet its obligations.
3. The capacity of a market in a particular security or commodity to
withstand an unusual amount of buying or selling without affecting the
market substantially.

Lloyds Of London

An English association of insurance underwriters, the oldest of its kind in
the world. Not in itself an insurance company.

Lloyds Registry

An English society, independent of Lloyds of London, which surveys and
classifies the ships of the world according to their description, condition,
seaworthiness, and compliance with codes and protocols. Also establishes
standards for maintenance and construction. (Correct name is: Lloyds
Register of Shipping.)

Loading

The physical placing of cargo into a truck, a shipping container, or onto a
vessel.

Longshoreman

A laborer who loads and unloads ships, handles cargo and containers at
shipping terminals, and loads and unloads containers at shipping terminals.

Lot Labels

Labels attached to each piece of multiple lot shipment for identification
purposes. Each lot label will carry the same number (the lot number) There
may also be a consecutive number on each label to separately identify each
package.

Lower Deck Containers

Carrier owned containers specially designed as an integral part of the
aircraft to fit in the cargo compartments of a wide body aircraft. These
compartments are on the lower deck of the aircraft below where the
passengers sit.

M

Macroeconomics

The study of large scale economic factors affecting an economy as a whole.

Mail Entry

A means of shipping and entering goods into a Customs Territory through the
postal system.

Mala Fides

In bad faith. (A seller's representation that goods are usable for a
particular purpose when in fact the seller knows that the goods are not.)

Manifest

1. A document listing and describing the cargo contents of a carrier,
container or warehouse.
2. Evident to the senses, especially to the sight, obvious to the
understanding, evident to the mind, open, clear, visible, unmistakable,
indubitable, indisputable, self-evident.

Manufacturer's Identification Number (MID)

(USA) An identification number used by U. S. Customs in its electronic data
processing system for each manufacturer whose goods are shipped to the
United States.

Maquiladora

A Mexican factory, usually located in a zone close to the US border, which
has special privileges from the Mexican government to produce goods for the
US market. Much of the work performed in these factories is the assembly of
imported components.

Margin

1. In commercial terms the difference between the cost of goods sold and the
total net sales price.
2. The purchase of a stock or a commodity with payment of only part of the
purchase price in cash (called the margin) and the balance by loan (usually
made by the broker.)

Marginal Cost

The increase in the total costs of a producer of producing one more unit of
output, or the decrease in producing one less unit of output.

Maritime

Business pertaining to commerce or navigation by sea.

Market Access

The openness of a national market to foreign products and services.

Market Disruption

A situation where a surge of imports of a certain product causes a sharp
decline in the domestic sales of that product and creates a hardship for
domestic producers.

Market Economy

An economic system where resources are allocated and production of goods
determined by market forces rather than by government decree.

Market Price

The price established in the market where buyers and sellers compete with
each other to negotiate the best prices and terms.

Marking: Country of Origin

The physical markings on a product that indicate the country of origin where
the article was produced. (With very few exceptions, the U.S. requires every
imported article to be so marked.)

Marks

Identification placed on the outer surface of shipping containers or
packages. At one time it consisted of pictures, letters and numbers. With
the advent of computers, pictures are no longer used. Instructions on the
packages for their proper handling, such as "This side up" may also be
considered part of the marks. Also the weight and measurements of the
packages.

Matador Bond

Bond issued on the Spanish market by an obligor who is not domiciled in
Spain.

Mate's Receipt

A declaration issued by an officer of a vessel stating that certain goods
have been received on board his vessel.

Material Contract Terms

Terms in a purchase/sale contract that are considered essential; they
describe the goods, fix the price, fix the quantity, and set the delivery
date.

Measurement Cargo

A cargo on which the transportation charge is assessed on the basis of size
or dimensions, instead of upon the gross weight.

Medium of Exchange

Anything which is widely accepted in payment for goods and services and in
settlement of debts. Its acceptability is based upon the fact that it can
provide a common basis of measurement of the value of things.

Memorandum Bill of Lading

Sometimes the duplicate (non-original) copies of bills of lading are marked
"Memorandum" and are intended for informational purposes only.

Memorandum of Understanding

An informal record, document, or instrument that serves as the basis of a
future contract.

Merchant's Credit

A form of commercial letter of credit which the buyer, with no commitment on
the part of a bank, sends to the seller via a bank in the district of the
buyer. The seller presents his bill of sale and evidence of shipment in
order to obtain payment from the buyer.

Microbridge

An intermodal movement of cargo which involves a vessel leg to a port and
then a movement via another transportation mode, truck or rail, to an inland
point where the movement terminates. In the reverse direction, the cargo is
picked up at a point inland for transport via truck or rail to a port where
a vessel loads the cargo and transports it to an overseas port. The land
portion of the two intermodal moves described is the "microbridge".

Minibridge

An intermodal movement of cargo involving a vessel leg from one country to a
port in another country, and then a movement via truck or rail to another
port in that country, and there the voyage is terminated. The traversing of
the land in the second country from discharge port to destination port is
the "minibridge" portion of the movement. There could be a similar but
opposite combined "minibridge" movement in the other direction.

Minimum Charge

The lowest amount that will be charged regardless of the amount of service
rendered.

MOD Act

(USA) Customs Modernization and Informed Compliance Act: Passage 1992, HR
3935.

Money

Any denomination of coin or paper currency of legal tender that passes
freely as a medium of exchange.

Money Creation

The increase in money supply by the central or commercial banks.

Money Market

The market for short term financial instruments (i.e. commercial paper,
treasury bills, discount notes).

Money Market Operations

Creating, investing in, buying and selling short term obligations in the
market for short term debt instruments.

Money Supply

The amount of cash and bank deposits available in an economy.

Moor

To secure a vessel to an anchor, buoy, or pier.

Moorage

Charges assessed for mooring a vessel to a pier or wharf.

Most Favored Nation

A trade policy commitment on the part of one nation to extend to another
nation tariff rates as low as applies to any other "most favored nations,"
and to treat imports from that nation without discrimination.

Motor Carrier's Terminal

The place where a motor carrier receives freight, delivers freight to other
motor carriers, temporarily stores freight, loads trucks and containers, and
generally does all the things which a carrier has to do regarding freight
handling and servicing of its trucks and equipment.

Multilateral Agreement

An agreement among more than two persons, firms, or governments.

Multimodal Transport

Transportation which includes at least two modes of transport, such as
shipping by rail and by sea.

Multinational Corporation

A corporation having subsidiaries in more than one country.

N

NAFTA

North American Free Trade Agreement.

National Association Of Export Companies

A nonprofit organization to act as the information provider, support
clearinghouse forum, and advocate for those involved in exporting and
servicing exporters.

National Customs Brokers And Freight Forwarders Association

(USA) A non-profit organization which serves as the trade organization of
customs brokers and international freight forwarders in the U.S.

National Trade Data Bank (NTDB)

(USA) An electronic data base which contains international economic and
export promotion information supplied by 15 U.S. governmental agencies.

National Treatment

National treatment affords foreign individuals and firms the same
competitive opportunities, including market access, as are available to
domestic parties.

Nationalization

Takeover by a government of a public or private activity.

Negotiable

Legally capable of being transferred by endorsement or delivery.

Negotiable Bill of Lading

A bill of lading transferable by endorsement by virtue of its terms which
make the goods which it covers deliverable to "bearer", or to the order of a
named party, or to the assigns.

Nested

Packed one within another; for example the way paper cups are stacked as a
way of saving space.

Net Cash

Payment for goods sold without any deduction allowed from the price.

Net National Product

The total amount of goods and services produced in a nation in a given
period of time less the quantity of goods and services needed for its
production.

Net Price

Price after all deductions, discounts, rebates, etc have been taken.

Net Weight

The weight of goods without packaging. The weight of the contents of a
package.

No Show

Freight that has been booked for shipment on a carrier, but has not
physically arrived in time to be loaded before departure of the carrier.
This term is also applied to passengers who do not arrive for a departure

Notary Public

A person commissioned by a state for a stipulated period to administer
certain oaths and to attest and certify documents. In some countries, the
authority of a notary public is much more extensive.

Notify Address

Address of the party mentioned in the transport document to which the
carrier is to give notice about the arrival of the shipment.

Notify Party

Name and address of a party indicated in the transport document to be
notified by the shipping company of the arrival of a shipment.

NTDB

(USA) National Trade Data Bank: A data base used as the central collection
point for US government generated export promotion information.

O

Ocean Bill of Lading

A receipt for the cargo and a contract for transportation issued by an ocean
carrier. When issued in negotiable form, it is also an instrument of title.

Offer

1. A proposal that is made to a certain individual or legal entity to enter
into a contract, that is definite in its terms, and that indicates the
offerer's intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready to sell.

Office Of Export Licensing (OEL)

An agency under the Bureau of Industry and Security that administers export
licenses.

Office Of Management And Budget

An executive office of the President which evaluates, formulates and
coordinates management procedures and program objectives within and among
federal departments an agencies. It also controls the administration of the
federal budget.

Offer

1. A proposal that is made to a certain individual or legal entity to enter
into a contract, that is definite in its terms, and that indicates the
offerer's intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready to sell.

Official Development Assistance

Official Development Assistance Financial flows to developing countries and
multilateral institutions provided by official government agencies.

Offshore Bank

A bank located in a country other than the bank which owns it. The owning
bank is usually in a major country and the "offshore bank" in a smaller
country.

Offshore Banking Center

A financial center where many of the financial institutions have little
connection with that country's financial system, but have located themselves
there to benefit from less regulation and/or lower taxes.

Old-To-Market

(USA) This is a term used by the International Trade Administration to
define larger scale firms who are committed and experienced in export trade
and have export sales often in excess of 15% .

On Board

Notation on a bill of lading indicating that the goods have been loaded on
board a named ship.

On Deck Bill Of Lading

An ocean bill of lading containing the notation that the goods have been
loaded on the deck of the vessel.

Open Account

Credit extended that is not supported by a note, mortgage, or other formal
written evidence of indebtedness.

Open Conference

A shipping conference in which there are no restrictions upon membership
other than ability and willingness to serve the trade and abide by the rules
of the conference.

Open Economy

An economy free of trade restrictions.

Open-End Contract

An agreement by which the buyer may purchase an unspecified amount of goods from a seller over a certain period of time without changes in the price or
the contract terms.

Operator of Foreign Trade Zone

(USA) A corporation that operates a foreign trade zone under the terms of an
agreement with a foreign trade zone grantee.

Order

1. A request to deliver, sell, receive or purchase goods or services.
2. An instruction, command or direction authoritatively given.
3. A designation of the person to whom a bill of exchange is to be paid, or
delivery of goods made, or a bill of lading consigned (A key word which
makes a document negotiable.)
4. A rank, class or division of men.

Order Bill

A bill of lading that states that goods are consigned "to the order" of the
person named, or simply "to order" (of no one in particular.) Such a bill of
lading is a negotiable document.

Order Notify

A bill of lading which is negotiable because it is consigned to "order" with
no entity named; but it does have a named party indicated to whom the
carrier is expected to send a notice of arrival.

Outright

Free from reserve or restraint; direct; positive; downright; altogether;
entirely; openly.

Over the Counter

Securities trading which takes place outside the normal Security Exchanges.

Overnight

The period in which settlement is required on a transaction such as a
currency trade or a swap - on the next business day after the transaction.

P

Packing List

A document listing the merchandise in a particular shipment indicating the
kind and quantity in each package.

Pallet

A platform with or without sides, on which a number of packages or pieces
may be loaded to facilitate handling. Usually the pallet is constructed so
that it has space underneath it to permit lifting by mechanical equipment.

Pallet Loader

A device employing a vertical lift platform for the mechanical loading or
unloading of pallets of freight at plane side.

Pallet Transporter

A vehicle for the movement of loaded pallets from one place to another.

Palletizing

The loading and securing of a number of sacks, bags, boxes or drums on a
pallet base.

Par

Equal. An equality between the face value of a bill of exchange, share of
stock etc., and its actual market value. If it can be sold for more, it is
"above par;" if for less, it is "below par."

Par Exchange Rate

The free market price of one country's money in terms of the currency of
another.

Par Of Exchange

The precise equivalency of a given sum of money of one country with the like
sum of money of another country into which it is to be exchanged.

Par Value

1.The official fixed exchange rate between two currencies or between a
currency and a specific weight of gold.
2. "Par Value" of a currency is its official rate of exchange.
3. "Par Value" of a share of stock is the value declared on its face.
4. As to a mortgage or a trust deed, it is the balance owing, without
discount.

Parent Bank

A bank in one country that has a subsidiary in another country.

Parity

1. Equality in amount or value.
2. Equivalence of prices of goods or services in different markets
3. The relationship between two currencies such that they are exchangeable
for each other at par or at the official rate of exchange.
4. Equivalence of prices of farm products (or farm income) to those existing
at a former time, or to the general cost of living.

Parol Contract

A contract that is oral only as distinguished from one that is written.

Particular Average

A partial loss of cargo or hull which falls entirely upon the interest
concerned. See also "General Average"

Partnership

An unincorporated business owned and operated by two or more persons, who,
according to the agreement of the partnership, share the profits and the
losses, and the responsibilities, and have general or limited liability. (At
least one partner must have unlimited liability)

Patent

A grant by law of a privilege, property, or authority, to one or more
individuals - including the grant to an inventor of the right to exclude
others from making, using or selling the invention for a term of years.

Payable In Exchange

A negotiable instrument conspicuously marked on its face "Exchange" and
naming a payee, is considered to be negotiable and payable to the order or
assigns of the designated payee.

Payee

1. The person or organization to whose order a check or draft or note is
made payable.
2. One to whom money is paid or is to be paid.

Payer

(Or Payor.) One who pays or is to pay, particularly the person who is to
make payment of a check, bill, note, or account.

Penalties

1. Punishment, corporeal or pecuniary, or civil or criminal, although its
meaning is generally confined to pecuniary punishment for doing an act that
is prohibited or failing to do one which is required.
2. The sum of money which the obligor of a bond undertakes to pay in the
event of his failure to perform his obligations under the conditions of the
bond.

Performance

The proper fulfillment of a contract or obligation according to its terms.

Peril Point

An estimated limit beyond which a reduction in tariff protection would cause
material injury to a domestic industry.

Perishable Freight

Goods subject to decay or deterioration during shipment.

Petrodollars

Hard currency, principally U.S. Dollars, earned by developing nations
production and sale of petroleum.

Phytosanitary Inspections

A certificate issued by the agency of a national government indicating that
an export shipment has been inspected and is free from harmful pests and
plant diseases.

Pickup and Delivery Service

An optional additional service for the transport of shipments from shipper's
door to originating carrier's terminal and from the terminal of destination
to receiver's door, offered by some airlines, railroads and sometimes by
other shipping modes. With some transportation services such as the postal
and small package express services, it is a standard service rather than
optional.

Pickup Order

An order to a carrier to pick up freight at a location.

Pier-to-Pier

Shipment of cargo with carrier responsibility from origin pier to discharge
pier.

Piggyback

The transportation of truck trailers and containers on specially equipped
railroad flat-cars.

Pilferage

Taking of property by stealth or clandestine theft, usually in small
quantities.

Pilot

1. A person who flies an airplane.
2. A person whose occupation is to guide ships, particularly along a coast,
or into and out of a harbor.

Plimsoll Mark

The horizontal line on the outside of a ship which represents the depth to
which a vessel may be safely loaded.

Point of Origin

1. The location in which a good is manufactured or produced.
2. The location at which a shipment is received by a transportation line
from the shipper.

Port

1. A place intended for loading and unloading the cargo or passengers of
vessels - it may be within a natural harbor on a coast, or on a river, or
within sheltered water produced by artificial jetties.
2. A place where customs officers are stationed for the collection of duties
and the control of imports and exports.

Port Charge

A charge made for various services performed at ports.

Port of Discharge

The port at which a shipment is off loaded by a transportation line.

Port of Entry

A place designated by law at which Customs is stationed and carriers from
foreign ports, foreign goods and persons are permitted to arrive.

Port of Export

A place where Customs is stationed to control departures of carriers,
passengers, and goods to foreign countries.

Port-of-Origin Air Cargo Clearance

(USA) U.S. Customs clearance at foreign airports to facilitate the
procedures before arrival in the U.S.

Portfolio Investment

In investment, the collective term for all the securities held by one person
or institution.

Post-Shipment Verifications

(USA) An inspection or other action to determine that an exported strategic
commodity is being used in the places and for the purposes for which its
export was licensed.

Postdated Check

A check delivered prior to its date, generally payable on or after the day
of its date.

Preference

1.A creditor's right to be paid before other creditors of the same debtor.
2. A trade preference is the granting of a preferred status to some or all
of the goods of a preferred country, such as lower rates of duty or
admissibility of goods in quantities over and above those normally
permitted.

Preferential Tariff

A tariff which imposes lower rates of duty on goods imported from some
countries.

Preferred Country

A country which has lower rates of duty imposed on its goods or is given
other preferential trade treatment by another country.

Premium

1. A bounty or bonus above a regular price, paid as an incentive to do
something.
2. The price of insurance protection for a specified risk for a specified
period of time.
Comment: Meaning numbered 1 above indicates that one meaning of "Premium"
is: Something in addition to the regular price. In meaning numbered 2
"Premium" is the price itself.
3. A "give-away" - a reward or prize.

Prepaid

1. A notation on a shipping document indicating that shipping charges have
already been paid by the shipper to the carrier, or it is an expression of
the intention that payment is to be made by the shipper.
2. An expense paid before it is currently due.
3. A service or good paid for before it is delivered.

Prepaid Charges

In transportation, this term may mean that all charges, including freight,
are to be paid by the shipper. Or, it may mean that only those charges
designated as "prepaid" are to be paid by the shipper with other charges to
be collected from the receiver. Which charges are which are generally
decided by prior agreement.

Price Support

Subsidy or financial aid offered to specific growers, producers, or
distributors, in accordance with governmental regulations to keep market
prices from dropping below a certain minimum level.

Priority Air Freight

Reserved air freight or air express service wherein certain shipments by
special arrangement, at extra cost, have a priority after mail and the small
package services.

Private Corporation

A business corporation with shares that are not traded among the general
public.

Procurement

The act of obtaining; attainment; acquisition; purchasing; buying.

Product Groups

Classification of products into groups for various purposes: statistics,
export control, import quotas etc.

Productivity

A measurement of the efficiency of production.

Proof of Delivery

Evidence that one party has turned over something (cargo) to another.
Commonly, in transportation, a signed, dated acknowledgement of receipt.

Proprietor

A person who has an exclusive right or interest in property or in a business
(the owner.)

Proprietorship

A business, usually unincorporated, owned and controlled by one person (sole
proprietorship.)

Protectionism

The deliberate use or encouragement of restrictions on imports to enable
relatively inefficient domestic producers to compete successfully with
foreign producers, or to protect and preserve those industries and producers
considered of critical national interest.

Protective Service

Some airlines offer a protective service where shippers can arrange to have
their shipments under carrier surveillance at each stage of transit.

Protective Tariff

A duty or tax on imported products to make them more expensive in comparison
to domestic products.

Protest

1. (USA) The procedural means by which an importer, consignee, or other
designated party may challenge a customs decision.
2. An action required to be taken in some countries in order to protect
one's rights to seek legal remedies when a collection is dishonored.

Public Corporation

1. A business corporation with shares traded among the general public, such
as through a stock exchange.
2. Also, an instrumentality of the state, founded and owned by the public
interest, supported by public funds, and governed by those deriving their
authority from the state.

Published Rate

1. The freight charges for a particular class and quantity of cargo as
published in a carrier's tariff.
2. The service charges of many kinds of public utilities (usually government
regulated enterprises) which are published in tariffs for public
information.

Purchase Order

A purchaser's written offer to a supplier formally stating all terms and
conditions of a proposed transaction.

Q

Quantitative Restrictions

Explicit limits, or quotas, on the physical amounts of particular
commodities that can be imported or exported during a specified time period,
usually measured by volume but sometimes by value. The quota may be applied on a selective basis, with varying limits set according to the country of
origin or destination, or on a quantitative global basis that only specifies
the total limit and thus tends to benefit more efficient suppliers.

Quarantine

1. The term during which an arriving ship or airplane, including its
passengers, crew and cargo, suspected of carrying a contagious disease, is
held in isolation to prevent the possible spread of the disease.
2. The place in which a person or carrier under quarantine is held.

Quay

A structure built for the purpose of mooring a vessel; also called a pier.

Queue

A line of people, vehicles etc., especially a waiting line as before a
ticket window or a toll booth.

Quid Pro Quo

1. A mutual consideration; securing an advantage or receiving a concession
in return for a similar favor.
2. A mutual consideration which passes between the parties to a contract,
and which renders it valid and binding.

Quota

A limitation on the quantity of goods that may be imported into a country
from all countries or from specific countries during a set period of time.
Export quotas have similar parameters.

Quota System

(USA) A part of the U.S. Customs' Service Automated Commercial System, which controls quota levels (quantities authorized) and quantities entered against those levels.

R

Rail Waybill

A document used to control the transportation of a shipment of goods via
rail. It is similar in content to an inland bill of lading, with freight and
other charges, and routing.

Rate Of Exchange

The price at which the money of one country can be exchanged for the money
of another country.

Real Rights

Rights in real estate or in items attached to real estate.

Realignment of Currencies

Simultaneous and mutually coordinated revaluation and devaluation of the
currencies of several countries.

Receipt

1. Any written acknowledgment of value received. It is a mere admission of a
fact without containing any affirmative obligation.
2. Receipt of goods means taking possession of goods.

Received For Shipment Bill Of Lading

A bill of lading which confirms the receipt of goods by the carrier for
transportation on a particular vessel, but not their actual loading on board
the vessel nor their actual shipment.

Receiving Papers

In transportation, paperwork that accompanies a shipment when it is brought
to a carrier.

Reciprocal Trade Agreement

An international agreement between two or more countries to establish mutual
trade concessions that are expected to be of equal value.

Reciprocity

The process by which governments extend similar concessions to each other.

Reconsignment

In transportation, a change in the name of the consignee; a change in the
place of delivery; or relinquishment of the shipment by the carrier at the
point of origin.

Redeliver

1. To yield and deliver back a thing.
2. (USA) In U.S. Customs, it is a demand by customs to return to Custom's
custody goods for reexamination, detention, re-export or destruction.

Reefer Container

A controlled temperature shipping container (usually refrigerated with a
self-contained refrigeration unit).

Reexport

The export of imported goods without appreciable added value.

Refund

1. To repay or restore. To return money in restitution or repayment. To
return overpaid charges
2. That which is refunded. The amount returned.
3. To fund again or renew; specifically to borrow in order to pay off an
existing loan with the proceeds.

Relay

In marine transportation, a procedure in which a shipment is shipped to an
intermediate port and transferred to another vessel for delivery to the
ultimate destination port.

Remittance

Funds forwarded from one person to another.

Replevin

A legal action for the recovery of property brought by the owner or party
entitled to repossess the property against a party who has wrongfully kept
it.

Request For Quotation

A negotiating approach whereby the buyer asks for a price quotation from a
potential seller for specific goods.

Rescind

To abrogate, annul, avoid, cancel a contract; declare it void in its
inception and put an end to it as though it never were.

Reserved Freight Space

A service by some carriers (airlines and ship lines) enabling shippers to
reserve freight space on designated voyages.

Restricted Letter of Credit

A letter of credit which restricts negotiation to the bank the issuing bank
has nominated in the credit.

Restrictive Business Practices

Actions in the private sector designed to restrict competition in order to
keep prices relatively high.

Retaliation

1. the return of evil for evil.
2. Action taken by a country to restrain its imports from a country that has
increased a tariff or imposed other measures that adversely affect its
exports.

Revaluation

1. The restoration of the value of a nation's currency that had once been
devalued in terms of the currency of another nation.
2. The restoration of purchasing power to an inflated currency.
3. Restoration of the value of a currency
4. Currencies of countries undergoing inflation are more often "devalued,"
meaning that either by market forces or by declaration of the issuing
government, a greater number of units of its currency are required to
purchase other currencies. When the reverse occurs, usually in an attempt to
restore the purchasing power of an inflated currency, this is called
"revaluation."

Reverse Preferences

Tariff advantages offered by developing countries to imports from certain
developed countries that had granted them trade preferences in the past
..(This practice has generally ceased) .

Revolving Letter of Credit

A letter of credit which when drawn upon is automatically restored to its
full amount, periodically, or after a particular event prescribed in the
credit.

Risk Position

The condition of an asset or liability which is exposed to fluctuations in
value (on the international markets this would include changes in exchange
rates or interest rates as well as changes in market value)

Road Waybill

Transport document is used to control shipments of goods via truck. It
contains the same information as an inland bill of lading, with freight and
other charges, and routing.

Roll on, Roll off

A category of ships designed to load and discharge cargo which rolls on
wheels, and as the name says is driven onto the decks of the vessel and
driven off.

Rollover Credit

Short term notes or loans which may be extended after the initial due date.

Route

1. A customary or regular line of passage or travel.
2. The course or direction that a particular shipment moves.
3. To direct the routing of a shipment (and whose services shall be
employed).

Royalty

Compensation for the use of property, usually copyrighted or patented
material or natural resources, based on an agreed percentage of the income
arising from its use or an amount per unit produced.

S

Sales Agreement

A written document (a contract) by which a seller agrees to convey property
to a buyer for a stipulated price under specified conditions.

Sales Tax

A tax placed by a state or municipality on items at the time of their sale,
usually a percentage of the purchase price.

Salvage

1. Compensation paid for the rescue of a ship, its cargo or passengers from
the perils of the sea;
2. or, the act of saving a ship or its cargo from possible loss;
3. or, property saved from a wreck or fire.

Samurai Bond

Bond issued on the Japanese market in yen for non-Japanese borrowers.

Sanction

1. A punitive act taken by one or more nations against another nation which
has violated a treaty or international law.
2. A proviso in a law to secure its enforcement by imposing a penalty for
its violation or offering a reward for its observance.

Seal

A mark or sign that is used to attest the execution of an instrument,
contract, or other document.

Seaworthiness

The fitness or safety of a vessel for its intended use.

Secured

Guaranteed as to payment by the pledge of something valuable as security or
collateral.

Security

1. Property pledged as collateral to a debt.
2. Protection; assurance; indemnification.
3. A document that indicates evidence of indebtedness or of equity interest
- including notes, bonds, debentures, stocks, certificate of interest, etc.
which may be traded on an exchange.

Seizure

The act of taking possession of property.

Seller's Market

Exists when goods are in short supply compared to the demand, at which point
the economic forces of business tend to cause goods to be priced at the
vendor's estimate of value.

Selling Rate

Rate at which a bank is willing to sell foreign exchange or to lend money.

Service A Loan

To pay interest due on a loan.

Settlement Date

The date on which payment for a transaction must be made.

Shared Foreign Sales Corporation

(USA) A foreign sales corporation formed to make export sales and earn
favorable tax treatment thereon. A Shared Foreign Sales Corporation requires
more than one and less than 25 unrelated exporters.

Ship's Manifest

A list of the individual shipments constituting the ship's cargo.

Ship's Papers

The documents a ship must carry to meet the safety, health, immigration,
commercial and customs requirements of a port of call or of international
law.

Ship's Stores

The food, medical supplies, spare parts and other provisions carried for the
day-to-day running of a vessel.

Shipment

1. Delivery of cargo to a carrier for transportation.
2. The transportation of goods.
3. The property which is the subject of transportation.

Shipped On Deck

Goods shipped on the deck of a vessel. The bill of lading covering goods
shipped on deck must be annotated to that effect.

Shipper

1. One who transports goods for a charge. In normal usage, such a person
would be called a carrier, but carriers are also called "shippers"
2. One who tenders goods to a carrier for transportation.
3. The sender of goods to be transported as distinct from the receiver or
the consignee.

Shipping Order

Instructions from a shipper to a carrier for the transportation of goods.

Short Form Bill of Lading

A bill of lading on which the detailed conditions of transportation are not
listed in full, but instead there is a statement which declares them to be
incorporated by reference, and states the place where they are available.

Short of Exchange

The position of a foreign exchange trader who has sold more foreign currency
of a particular country than he has in possession to cover sales.

Short Weight

Any shipment found to weigh less than the documents indicate, be it a bill
of lading, a dock receipt, a warehouse receipt, an inspection certificate,
or a weight tally.

Shortage

A deficiency in quantity shipped, stored, or received.

Sling

A contrivance into which freight is placed to be hoisted into or out of a
ship.

Slip

A vessel's berth between two piers.

Small Package Service

A specialized service to guarantee the delivery of small parcels within
specified express time limits.

Smuggling

Moving goods across a customs frontier in a clandestine manner, evading
customs control. It may be goods on which duty and taxes have been avoided,
or it may be goods which are not permitted to be imported or exported.

Soft Currency

The currency of a country that is not readily accepted by other countries
and is not readily converted into currencies which are readily acceptable
(hard currencies).

Soft Loan

A loan made with easy or generous terms such as low or no interest and long
payback.

Sovereign Credit

A direct borrowing or a borrowing guaranteed by the government of a
sovereign state.

Sovereign Risk

1. The risk to a lender that the government of a sovereign state may default
on its financial obligations.
2. Also, the risk to a lender that unfavorable changes in the borrowers
overall currency exchange position might imperil the payment of a loan.
3. Also the risk to a lender that unfavorable political events in the
country of the debtor might imperil repayment.

Special Rates

Rates that apply to cargo traffic under special conditions and usually to
and from a limited number of points.

Specific Commodity Rate

With reference to freight rates, it is a favorable freight rate usually
applicable to certain classes of commodities which move in large volume
shipments.

Specific Rate of Duty

A specified amount of duty per unit of weight or other quantity.

Spot Cash

Immediate cash payment on a transaction.

Spot Exchange

The purchase and sale of foreign exchange for delivery and payment at the
time of the transaction.

Spot Exchange Rate

The price of one currency expressed in terms of another currency at a given
moment in time.

Spot Market

The market for a commodity or foreign exchange available for immediate
delivery.

Spot Operations

Foreign exchange dealings and commodity trading in which settlement of the
mutual delivery and payment commitment is made immediately.

Spot Price

The selling of goods or commodities for immediate delivery.

Spot Rate

The rate (price per unit) for purchase or sale of a commodity or foreign
exchange for immediate delivery.

Spotting

The placing (or parking) of a container in the place where required, to be
loaded or unloaded, or held for further action.

Standby Commitment

A bank commitment to loan money up to a specified amount for a specific
period, to be used only in a certain contingency.

Standby Letter of Credit

A letter of credit which a bank issues on behalf of its customer to serve as
a guarantee to the beneficiary of the letter of credit that the bank's
customer will perform a specified contract with the beneficiary. If the
customer defaults, the beneficiary may draw funds against the letter of
credit as penalties or as payments, whichever the terms of the credit
provide.

Steamship (or steamer)

Vessels powered by steam engines. However, the term is often used to
describe powered vessels in general, and companies who operate ocean going
cargo vessels are often called "steamship companies" despite the fact that
the use of steam power for ocean going vessels is obsolete, the modern
standard being diesel engines fueled by oil.

Steamship Indemnity

A contract of indemnity issued by a bank to an ocean carrier indemnifying
the carrier for any loss incurred for release of goods without surrender of
the original bill of lading properly endorsed.

Stevedore

1. A person having charge of the loading and unloading of ships in port.
2. Sometimes used to indicate those laborers who actually perform the
physical work of loading and unloading a ship (usually called longshoremen.)

Storage

The keeping of goods in a warehouse or other repository.

Storage Demurrage

A storage charge made on property remaining on the dock or terminal past the
permitted "free-time period".

Storage in Transit

The stopping of freight traffic at a point located between the point of
origin and destination to be stored and reforwarded at a later date.

Store-Door Delivery

The movement of goods to the consignee's place of business, customarily
applied to movement by truck.

Stowage

The arranging and packing of cargo in a vessel for shipment.

Stowage Instructions

Specific instructions given by the shipper or his agent concerning the way
in which cargo is to be handled or stowed. It may refer to the location in
the hold, whether a particular side is to be on top, the kind of other cargo
it may not be near, the number of pieces which may be stacked, what
implements may not be used to move it, such as "use no hooks" on bales, etc.

Stowplan

A diagram showing where cargo has been placed in a vessel (also known as a
stowage plan.)

Straight Bill of Lading

A nonnegotiable bill of lading that designates a consignee who is to receive
the goods and obligates the carrier to deliver the goods to that consignee
only.

Strike Clause

An insurance clause which may be included in policies to cover against
losses as a result of strikes, riots and civil commotions.

Stripping

The unloading of cargo from a container or truck; (also called devanning.)

Stuffing

The loading of cargo into a container.

Subsidiary

Any organization more than 50 percent of whose voting stock is owned by
another firm.

Subsidy

A grant paid by a government to producers or exporters of goods to
strengthen their competitive position.

Supply Access

Assurances sought by importing countries that they will, in the future, have
fair and equitable access at reasonable prices to supplies of raw materials
and other essential imports.

Surcharge

A charge or tax above the usual or customary charge.

Surety

A bond or other security that protects a person, corporation, or other legal
entity in case of another's default in the payment of a given obligation,
improper performance of a given contract, malfeasance of office, etc. The
one who undertakes to be the surety is primarily liable in case of the
default.

Survey

1. To examine and report on the condition of a vessel for purposes of
establishing seaworthiness, value, or dimensions.
2. To examine and report on the condition of goods or a structure.
3. To examine and report on the condition of goods or property after a
casualty to determine the extent of the loss and the probable cause. (Often
to support an insurance claim, - although there may be a claim without
insurance being involved.)
4. The reports described above, generally conducted by an independent third
party, called "a surveyor."

Sushi Bond

Eurodollar bonds issued by Japanese corporations on the Japanese market for
Japanese investors.

Swap (transactions)

A kind of financial transaction which has many variations, usually highly
complex. They generally involve a simultaneous exchange of assets (the swap)
by counterparties for other different assets of comparable value. The assets
may be commodities or they may be financial instruments involving interest
rates, cash flows, foreign exchange, debts or equities. In addition to
financial profits, the swaps have many purposes such as limiting risks,
overcoming restrictions in certain markets, or balancing portfolios.

Switch Arrangements

A form of countertrade in which the seller sells on credit and then
transfers the credit to a third party at a discount. Or, in another type of
switch, the rights to purchase certain goods, resulting from a countertrade
operation, are sold to a third party at a discount.

T

Tare Weight

The weight of a container and/or packing materials, but without the goods
being shipped. The gross weight of a shipment less the net weight of the
goods being shipped. (In other words, the weight of the packing.)

Tariff

1. A comprehensive list or "schedule" of merchandise with applicable duty
rates to be paid or charged for each listed article; together with governing
rules and regulations.(A "customs" Tariff.)
2. A schedule of rates and charges applied by a business, especially a
common carrier, together with a description of the services offered and the
rules and regulations applicable.

Tariff Anomaly

In a customs tariff, a tariff anomaly exists when the tariff on raw
materials or semi-manufactured goods is higher than the tariff on the
finished product.

Tariff Escalation

In a customs tariff, a situation in which duties on raw materials are
nonexistent or very low; duties on semi-processed goods are moderate; and
duties on manufactured goods are relatively high.

Tariff Rate Quotas

(Customs) Application of a higher duty rate to imported goods after a
specified quantity of the item has entered the country at a lower prevailing
rate.

Tariff Schedule

(Customs) A comprehensive list of the goods which may be imported into a
country, and the import duties applicable to each product.

Tariff War

(Customs) When one nation increases the tariffs on goods imported from, or
exported to another country, and that country then follows by raising
tariffs itself in a retaliatory manner.

Tax Haven

A nation offering low tax rates and other incentives for individuals and
businesses of other countries to locate there.

Temporary Importation (Admission Temporaire)

A customs procedure under which certain goods can be brought into a customs
territory temporarily, conditionally relieved from the payment of import
duties and taxes; such goods must be imported for a permitted purpose and
must be intended for exportation within the permitted period.

Tender

1. A small vessel which serves a larger vessel in a port for the purpose of
supplying provisions and carrying passengers to and from ship to shore.
2. An offer of money. An offer to supply something. An offer to present
something.
3. To satisfy a claim, an unconditional offer to perform coupled with a
manifest ability to carry out the offer.
4. A car connected behind a steam railroad locomotive to carry coal and
water. (Almost obsolete).

Tenor

The term fixed for the payment of a draft or debt.

Terminal

An facility which is used by a rail, ship, air, or truck line as a place for
receiving and delivering cargo; loading; unloading; transferring;
temporarily storing; recoopering; and similarly handling freight; and
repairing and servicing equipment..

Terminal Charge

A charge made for services performed at transportation terminals.

Terms of Trade

The ratio of the index of export prices to the index of import prices. (Note
the difference from "Trade Terms"

Third World Countries

Developing countries, especially in Asia, Africa, and Latin America.

Through Bill of Lading

A single bill of lading covering receipt of cargo at a point of origin for
delivery to an ultimate consignee, usually involving multiple carriers and
multiple modes of transport.

Through Rate

A shipping rate applicable to transportation from point of origin to
destination where multiple carriers and multiple modes of transport may be
involved.

Tied Loan

A loan made by a government that requires a foreign borrower to spend the
proceeds in the lender's country.

To Order

A term on a financial instrument or title document indicating that it is
negotiable and transferable.

Tracer

A request upon a transportation line to trace a shipment for the purpose of
locating its whereabouts, expediting its movement or establishing delivery.

Tracking

A carrier's system of recording movements of shipments from origin to
destination.

Trade Acceptance

A draft drawn by the seller of goods upon the buyer who agrees to pay by
signing "accepted" on the draft.

Trade Deficit

A nation's excess of imports over exports over a period of time.

Trade Name

The name under which an organization conducts business, or by which the
business or its goods and services are identified.

Trade Promotion

Encouragement of the progress, growth, or acceptance of trade. (Note: Some
would define it solely as the encouragement of exports.)`

Trade Surplus

A nation's excess of exports over imports over a period of time.

Trade Terms

The setting of responsibilities of the buyer and seller in a sale including
sale price, the payment of costs such as shipping, insurance, and customs;
the arranging of the performance of these activities; and the determination
of when title passes. (Note the difference from "Terms of Trade")

Trailer

A vehicle without motor power designed to be drawn by another vehicle.

Tramp Line

A transportation line operating tramp steamers in waterborne commerce.

Tramp Steamer

A vessel which does not operate under any regular schedule from one port to
another, but calls at any port where cargo may be obtained and charges a
negotiated amount of freight. Usually they transport breakbulk or bulk
cargo.

Trans-Ship

1. To transfer goods from one transportation line to another, or from one
ship to another, or from one airline to another in order to complete a
delivery .
2. To ship to one country, and then to re-export to another. (Sometimes the
second exporting country may be incorrectly represented as the country of
origin.)

Transaction Value

(USA) The price actually paid or payable for merchandise imported.

Transfer Of Technology

The movement of modern or scientific methods of production or distribution
from one enterprise or country to another.

Transfers (mail, wire, cable)

A transfer is the remittance of a sum of money to a party in another place.
This may be accomplished by mailing cash or drafts or using the services of
a commercial bank or a wire transfer company for a fee.

Transit Zone

An area in a port of entry in a coastal country that is established as a
storage and distribution center for the convenience of a neighboring country
which lacks adequate port facilities or access to the sea.

Transmittal Letter

In international commerce, a letter from the shipper or their agent
transmitting documents relative to a shipment. Usually there will be
included a list of the documents enclosed and details covering the
transportation of the shipment such as the name of the carrier, date of
departure etc.

Transparency

The extent to which laws, regulations, agreements, and practices affecting
international trade are open, clear, measurable, and verifiable.

Transport Documents

All types of documents evidencing acceptance, receipt and shipment of goods.

Transportation and Exportation Entry

(USA) Customs entry used when merchandise arrives in the U.S. and is moved
in bond to another U.S. port for re-export to a foreign country.

Traveler

One who passes from place to place, whether for pleasure, instruction,
business or health.

Traveler's Checks

A check designed for business travelers and tourists, issued by a financial
institution of sufficient importance that it will be readily accepted or
cashed by businesses and banks. For safety it is often designed to be
countersigned twice by the traveler in order to be valid, once at issuance
and once upon being cashed.

Triangular Trade

Trade between three countries which creates a more favorable flow of trade
for each than would exist between only two of them dealing directly with
each other.

Tropical Products

Agricultural goods grown in tropical zones ...coffee, tea, spices, bananas,
and tropical hardwoods etc,

Trust Receipt

A written declaration by a customer to a bank that ownership in goods
released by the bank is retained by the bank, and that the client has
received the goods in trust only. Such a trust receipt may be is given by
the customer to the bank to induce the bank to issue a letter of indemnity
to a carrier to release a shipment.

Turnkey

A term for a method of construction whereby the contractor assumes total
responsibility from design through completion of the product and release to
the client in a stage so complete that the buyer need only to turn the key
to open the door and walk into a facility that is ready to operate.

Turnkey Contract

An agreement under which a contractor agrees to complete a product so that
it is ready for use when delivered to the other contracting party.

Two-tier Market

An exchange rate regime employed in some countries with managed currency
exchange rates where the more favorable rates are maintained for selected
activities..

Tying Arrangement

A condition that a seller imposes on a buyer, requiring that if the buyer
desires to purchase one product (tying product), the buyer must also agree
to purchase another product (tied product), which the buyer may or may not
want. The laws of some countries prohibit certain tying arrangements, for
example in the U.S. the Clayton and the Sherman anti-trust Acts.

U

Ultimate Consignee

The person who is the true party in interest, receiving goods for the
designated end use.

UN/Edifact

United Nations Electronic Data Interchange for Administration, Commerce and
Transport: A United Nations approved Electronic Data Interchange standard.

Unconfirmed Letter Of Credit

A type of letter of credit bearing the obligation of the issuing bank only,
not of any other bank.

Unconscionable

Unreasonable; outrageous. Courts in many countries may refuse to enforce
contracts which they deem to be unconscionable.

Underdeveloped Country

A nation which, comparative to others, lacks industrialization,
infrastructure, developed agriculture, and developed natural resources, and
suffers from a low per capita income as a result.

Unfair Trade Practice

Unusual government support to firms, ranging from export subsidies to anti-
competitive practices by the firms themselves, such as dumping, boycotts or
discriminatory shipping arrangements, that result in competitive advantages
in international trade for the benefitting firms.

Uniform Commercial Code

(USA) A law governing commercial transactions (sales of goods, commercial
paper, bank deposits and collections, letter of credits, bulk transfers,
warehouse receipts, bills of lading, investment securities, and secured
transactions) adopted by all states in the US except Louisiana.

Unit Load

Various cargo carrying devices, or sizes of containers, which carry several
smaller shipping packages, including the banding together of a number of
individual packages on a pallet to create a single unit.

Unit Load Device

Term commonly used when referring to containers and pallets and similar
devices which consolidate packages of freight for mechanical handling.

United Nations Conference On Trade And Development

A part of the UN General Assembly which promotes international trade and
seeks to increase trade between developing countries and countries with
different social and economic systems.

United Nations Industrial Development Organization

Established in 1967, under the UN Secretariat, UNIDO serves as a specialized
agency to foster industrial development in lesser developed countries
through offering technical assistance in the form of expert services,
supplying equipment and/or training.

United States And Foreign Commercial Service

United States And Foreign Commercial Service An agency of the U.S.
Department of Commerce that helps U.S. firms be more competitive in the
global marketplace.

United States Code (USC)

A set of volumes containing the official compilation of U.S. law. are also
local offices of the U.S. Government Printing Office in major U.S. cities.

United States Customs Service (USCS)

U.S. governmental agency whose primary duties include the assessment and
collection of all duties, taxes and fees on imported merchandise, and the
enforcement of customs and related laws and treaties.

United States Department Of Agriculture

An executive department which serves as the principal adviser to the
president on agricultural policy. which works to improve and maintain farm
income, implement nutrition programs and develop and expand markets abroad
for U.S. agricultural products. It is also charged with inspecting and
grading food products for safe consumption.

United States Department Of Commerce (DOC)

An executive department which encourages and promotes the United States'
economic growth, international trade, and technological advancement.

United States Department Of Defense

A civilian executive department providing the military forces needed to
deter war and protect the security of the U.S.

United States Department Of Energy (DOE)

An executive department created in 1977 to consolidate all major Federal
energy functions into one department. The principal programmatic missions
are energy programs, weapons and waste clean-up programs, and science and
technology programs.

United States Department Of Labor (DOL)

An executive department which promotes and develops the welfare of U.S. wage earners, improves working conditions, and advances opportunities for
profitable employment. The DOL keeps track of changes in employment, prices,
and other national economic measures.

United States Department Of State

An executive department which directs U.S. foreign relations and negotiates
treaties and agreements with foreign nations. Activities of the State
Department are coordinated with foreign activities of other U.S. departments
and agencies.

United States Department Of The Interior (DOI)

An executive department that has responsibility for most U.S. federal
government owned public lands and natural resources; the principal U.S.
conservation agency. The office of Territorial and International Affairs
oversees activities pertaining to U.S. territorial lands and the Freely
Associated States and coordinates the international affairs of the
Department.

United States Department Of The Treasury

An executive department which performs four basic functions: formulating and
recommending economic, financial, tax and fiscal policies; serving as
financial agent for the U.S. government; enforcing the law; and,
manufacturing coins and currency.

United States Department Of Transportation (DOT)

An executive department of the U.S. government which is responsible for the
development of national transportation policies.

United States Information Agency (USIA)

Responsible for the U.S. government overseas information and cultural
programs, including Voice of America. Conducts a wide variety of
communication activities-academic and cultural exchanges to press, radio,
television and library programs abroad in order to strengthen foreign
understanding of American society, obtain greater support of U.S. policies,
and increase understanding between the U.S. and other countries.

United States International Trade Commission

An independent fact-finding agency of the U.S. government that studies the
effects of tariffs and other restraints to trade on the U.S. economy. It
conducts public hearings to assist in determining whether particular U.S.
industries are injured or threatened with injury by dumping, export
subsidies in other countries, or rapidly rising imports.

United States Price

(USA) In the context of investigations regarding dumping, this term refers
to the price at which goods are sold to the U.S. compared to the sale price
in the home market or in 3rd countries. The comparisons are used in the
process of determining whether the imported merchandise is sold to the
United States at less than fair value.

United States Trade And Development Agency

The U.S. Trade and Development Agency assists in the creation of jobs for
Americans by helping U.S. companies pursue overseas business opportunities.
Through the funding of feasibility studies, orientation visits, specialized
training grants, business workshops, and various forms of technical
assistance, we help American businesses compete for infrastructure and
industrial projects in middle-income and developing countries.

United States Trade Representative

A cabinet-level official with the rank of Ambassador who is the principal
adviser to the President on international trade policy, and has
responsibility for setting and administering overall trade policy. The U.S.
Trade Representative is concerned with the expansion of U.S. exports.

United States Travel And Tourism Administration

An organization within the Department of Commerce which: stimulates demand
internationally for travel to the United States, coordinates marketing
projects and programs with U.S. and international travel interests,
encourages and facilitates promotion in international travel markets by U.S.
travel industry principals, works to increase the number of new-to-market
travel businesses participating in the export market, generates cooperative
marketing opportunities for private industry and regional and local
governments, researches and provides timely and pertinent data, carries on
training programs in international marketing for U.S. professionals, and
works to remove government imposed travel barriers.

United States-Canada Free Trade Agreement

The provisions of the US/Canada Free Trade Agreement were adopted by the US with the enactment of the FTA Implementation Act of 1988. The FTA reduced
tariffs on imported merchandise between Canada and the U.S. and opened up
new areas of trade in investment. It was followed by the North American Free
Trade Agreement (NAFTA) which also includes Mexico.

Unitization

The practice or technique of consolidating many small pieces of
freight into a single unit for easier handling.

Universal Copyright Convention

An international agreement that affords copyright protection to literary and
artistic works in all countries that voluntarily agree to be bound by the
Convention terms.

Unloading

1. The physical removal of cargo from a vessel, a truck, an airplane, a
railroad car.
2. The physical removal of cargo from a container; also called devanning.

Unrestricted Letter Of Credit

A letter of credit which may be negotiated through any bank of the
beneficiary's choice.

Uruguay Round

The eighth round of multilateral trade negotiations under the General
Agreement on Tariffs and Trade (GATT). The Uruguay Round (so named because meetings began in Punta de Este, Uruguay in 1987) concluded in December, 1993 after seven years of talks between 117 member nations. From these negotiations the World Trade Organization came into being.

Usance

The common period fixed for payment by usage, custom, or habit of dealings
between the country where a bill of exchange is drawn and that where it is
payable. It varies according to the countries involved.

Users Fee

(USA) Assessments collected by the U.S. Customs Service to help defray
various costs to Customs involved in the handling of shipments.

V

Validity

1. Validity - Legal sufficiency. Mere regularity in the execution of
documents may not be enough for "legal sufficiency."
2. The time period for which a letter of credit is valid.

Valuation

The act of ascertaining the worth of a thing. The estimated worth of a
thing.

Valuation Charges

Transportation charges assessed shippers who declare for carriage a value of
goods higher than the carriers' limits of liability. They may be in lieu of
or in addition to regular freight charges.

Value Added

The amount by which the value of an article is increased at each stage of
its production, exclusive of initial costs.

Value Added Tax

An indirect tax on consumption that is assessed on the increased value of
goods at each discrete point in the chain of production and distribution,
from the raw material stage to final consumption. The tax on processors or
merchants is levied on the amount by which they increase the value of items
they purchase and resell.

Vendor

A company or individual that sells goods or services. A merchant, a retail
dealer; a supplier; one who buys to sell.

Vessel Ton

A unit of measurement of vessels which provides that 100 cubic feet of
vessel volume equals one ton.

Visa

A stamp, seal or endorsement on a document validating it for a particular
use such as on a passport admitting the holder to a country, or on a license
issued by the government of an exporting country for the export to a
specific importing country of a certain quantity of a quota controlled
commodity subject to a voluntary export restriction or a voluntary restraint
agreement.

Volume Rate

A freight rate assessed in connection with a specified volume of freight
based upon the premise that it will be substantial in total over a period of
time. It is generally a lower rate than normally assessed for smaller lots
of cargo.

Voluntary Export Restriction

An understanding between trading partners in which the exporting nation, in
order to reduce trade friction, agrees to limit exports of a particular good
to the other partner.

Voluntary Restraint Agreements

Informal bilateral or multilateral arrangements through which the exporting
nations voluntarily restrain certain exports, usually through export quotas,
to avoid economic dislocation in an importing country and to avert the
possible imposition of mandatory import restrictions by the importing
country.

W

War Clause

A marine insurance provision excluding the liability of an insurer if a loss
is caused by war or hostile action. Bills of Lading and charter parties may
contain a "War Clause" giving the vessel options to maintain it's safety in
case of hostilities.

War Risk

The risk to a vessel, its cargo and passengers by aggressive actions of a
hostile nation or group.

War Risk Insurance

Insurance covering loss or damage caused by war or other hostile actions.
Usually a separate policy from a marine insurance policy, or a special
attachment to it.

Warehouse Receipt

A document issued by a warehouse listing the goods or commodities deposited
in the warehouse. It is a receipt for the commodities listed, and for which
the warehouse is the bailee. Warehouse receipts may be either non-negotiable
or negotiable.

Warehouse, U.S. Customs Bonded

(USA) A privately owned and operated warehouse which has posted bond and has been approved by U. S. Customs where goods remain until duty has been
collected from the importer.

Warranty

A promise by a contracting party that the other party can rely on certain
facts or representations as being true.

Warsaw Convention

An international multilateral treaty which set the conditions of
international transportation by air.

Waybill

A document prepared by a transportation line at the point of shipment for
use in the handling of the shipment showing the point of origin,
destination, route, consignor, consignee, description of shipment and amount
charged for the transportation service and other services connected with the
transport It is similar in point of information to a bill of lading..

Webb-Pomerene Act Of 1918

(USA) Federal legislation exempting certain exporters' associations from
certain antitrust regulations.

Webb-Pomerene Association

(USA) Associations engaged in exporting that handle the products of similar
producers for overseas sales. These associations have partial exemption from
U.S. anti-trust laws but the associations may not engage in import, domestic
or third country trade, or combine to export services.

Weight Break

The point at which the weight of a shipment is large enough to be assessed
the lower freight rates which are applicable to larger shipments, as per the
carrier's tariff.

Wharfage

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

Without Reserve

A term applied to a sale by auction indicating that no price is reserved
(there is no minimum price.)

World Bank

The International Bank for Reconstruction and Development (IBRD), commonly
referred to as the World Bank, is an intergovernmental financial institution
located in Washington, DC. Its objectives are to help raise productivity and
incomes and reduce poverty in developing countries through the granting of
loans.

World Bank Group

An integrated group of international institutions that provides financial
and technical assistance to developing countries.

World Trade Clubs

Local or regional based organizations in the United States and around the
world of importers, exporters, customs brokers, freight forwarders,
attorneys, bankers, manufacturers and shippers.

World Trade Organization

The international organization which resulted from the Uruguay Round of GATT
negotiations. It is intended to promote world trade and to settle disputes
among member nations.

Z

Zip Code

(USA) A numerical code, established by the U.S. Postal Service, used for the
purpose of routing mail and to identify delivery zones. Some foreign
countries have a similar system. Carriers often apply this code in the same
manner in the handling of freight and the determination of freight charges.

Zone Status

(USA) Merchandise admitted to a U. S. Foreign Trade Zone may be given a
special status which affects what may done with it. For example: when
entered into the U. S. Customs territory it may be dutiable at rates and
values applicable at that time; or it may be given a status which fixes the
applicable rates and values at those in effect at the time when it was
admitted to the zone; or it may have a status which denies entry to the
U.S.A. altogether.

Zone User

(USA) A corporation, partnership or party that uses a U.S. foreign trade
zone for storage, handling, processing, or manufacturing merchandise,
whether foreign or domestic.