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

AFTA (ASEAN Free Trade Area): An agreement made in 1992 by ASEAN members to gradually introduce a common effective preferential tariff and lower non-tariff trade barriers for intra-group trade.

A.T.A carnet (admission temporaire): A standardized customs document permitting duty-free, tax free, and bond-free temporary admission of certain goods such as commercial samples, medical, scientific, or other professional equipment, and advertising materials into participating countries.

Acceptance: A time draft that the drawee (the payer) has accepted and acknowledged in writing the unconditional obligation to pay it at maturity.

Accepting bank: A bank that is the drawee of a time draft and that becomes the acceptor of the draft.

Ad valorem: According to value.

Ad valorem tariff: A tariff calculated as a percentage of the value of goods cleared through customs, e.g., 15 percent ad valorem means 15 percent of the value.

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

Advising bank: A domestic bank that handles letters of credit for a foreign bank by notifying the exporters that the credit has been opened in their favor and informing them fully of the conditions and terms without assuming responsibility.

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

After sight: A term indicating that payment on a draft is due a specified number of days after presentation of the draft to the drawee or payee.

Airwaybill: A non-negotiable instrument of air transport, which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and has obligated itself to carry the consignment to the airport of destination according to specified conditions.

All risks coverage: The broadest type of standard marine insurance coverage; excludes damage caused by war, strikes, and riots.

Alongside: The side of the vessel. Goods to be delivered alongside are to be delivered to the dock or lighter from which they can be loaded aboard the ship.

Antidumping duties: Special tariffs imposed to offset price advantages resulting from imports sold below fair market value.

Asia Pacific Economic Cooperation (APEC): Informal grouping of Asia Pacific countries, including the United States; established in 1989 to provide a forum for ministerial level discussion of a broad range of economic issues related to trade and investment. The group has agreed upon a schedule to implement open and free trade among member states.

Asociacion Latinoamericana de Integracion: See Latin American Integration Association.

Association of Southeast Asian Nations (ASEAN): A regional organization established in 1967 to promote economic, political, and social cooperation among member countries.

At sight: The terms of a negotiable instrument indicating that payment is due upon presentation or demand.

B

Balance of payments: An accounting statement measuring the value of goods, services, gold, and capital exchanged between one country and all foreign countries.

Balance of trade: The difference in value between a country's merchandise imports and exports in a specified period.

Banker's acceptance: A draft drawn upon and accepted by a bank.

Banker's bank: A bank established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.

Banker's draft: A draft payable upon demand and drawn by or on behalf of the bank itself. The draft is regarded as cash and cannot be returned unpaid.

Bank guarantee: A guarantee a foreign buyer obtains from a bank that the bank will pay the seller (exporter) up to a certain amount for merchandise shipped if the buyer defaults.

Basel Convention: A convention restricting trade in hazardous waste, some non-hazardous wastes, solid wastes, and incinerator ash, adopted at a United Nations conference in 1989.

Belgium-Luxembourg Economic Union (BLEU): The union of Belgium and Luxembourg into a single customs unit with common tariff and excise tax schedules, freedom from internal tariff barriers, a joint foreign trade system, mutual acceptance of local currencies, division of customs and excise receipts on the basis of population, common exchange controls, a single balance of payments, and combined foreign trade statistics.

Beneficiary: The person in whose favor a letter of credit is issued or a draft is drawn.

Benelux Economic Union: Cooperative economic and trade effort on the part of Belgium, the Netherlands, and Luxembourg.

Berth: The place beside a pier, quay, or wharf where a vessel can be loaded or discharged.

Bill of exchange: See draft.

Bill of lading (ocean): A document signed by the vessel master or other authorized person on behalf of the carrier, furnishing written evidence for the conveyance and delivery of merchandise to a specified destination. It serves as a document of title, receipt of goods, and a contract to deliver them.

Bonded exchange: An exchange (currency) that cannot be freely converted into other currencies.

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

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

Bulk cargo: A shipment such as oil, grain, or ore that is not packaged, baled, bottled, or otherwise packed but is loaded without counting or marking. There are two types of carriers—the dry-bulk carrier and the liquid-bulk carrier, better known as a tanker.

C

CFR (also C & F): Cost and freight. See Incoterms above.

C & I: Cost and insurance. See Incoterms above.

CIF: Cost, insurance, and freight. See Incoterms above.

CIP: Carriage and insurance paid to. See Incoterms above.

CPT: Carriage paid to. See Incoterms above.

Capital goods:

Plant machinery and other equipment for industrial use.

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

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

Cash in advance: Payment for goods in which the price is paid in full before shipment is made.

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

Central bank: A government owned or controlled bank that oversees other banks in the nation, issues currency, and serves as a depository for government funds.

Central European Free Trade Association (CEFTA): Regional organization established in 1992 and aimed at eliminating duties on items traded among members and creating a free trade area.

Certificate of analysis: A certificate issued by a competent office regarding the quality and composition of food products or pharmaceuticals.

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

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

Certificate of origin: A document required by certain foreign countries for tariff purposes, certifying as to the country of origin of specified goods.

Clean bill of lading: A receipt for goods issued by a carrier with an indication that the goods were received in apparent good order and condition, without damages or other irregularities.

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

Clean report of findings: A report issued by an inspection agency indicating that goods subject to preshipment inspection are acceptable relative to quality, quantity, and price.

COCOM: The Coordinating Committee for Multilateral Export Controls was a multilateral organization intended to restrict strategic exports to controlled countries, including the former Soviet bloc. Replaced by the Wassenaar Arrangement.

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

Commercial invoice: An itemized list of goods shipped and their costs; a record of a transaction between a buyer and seller; bill for the goods from the seller to the buyer.

Commercial risks: Risks of non-payment for reasons other than specified political risk, such as insolvency or protracted default.

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

Common market: An economic association in which there are no tariffs on intra-group trade, a common external tariff, and free mobility of capital and labor.

Confirmed letter of credit: A letter of credit, issued by a foreign bank, with validity confirmed by a domestic bank. An exporter who requires a confirmed letter of credit from the buyer is assured of payment by the domestic bank even if the foreign buyer or the foreign bank defaults.

Consignee: The person or firm named in a freight contract to whom merchandise has been consigned or turned over. Documentation differentiates between an intermediate consignee and an ultimate consignee for export control purposes.

Consignment: A term used for merchandise shipped from an exporter (consignor) to an importer (consignee) for the importer to sell. The consignor retains title to the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.

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

Consular fee: A fee charged by a consular agent in an exporting country for certifying that an invoice for merchandise is correct. Consular fees also may be charged for other services, such as visas.

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

Container: A uniform, sealed, reusable metal box in which goods are shipped by vessel, truck, or rail.

Containerization: A method of shipping merchandise. In the broadest sense, containerization is the use of a box in which to ship merchandise. The box may be with or without wheels, with or without refrigeration equipment, ventilated or unventilated, and manufactured in varying sizes.

Contraband: Goods smuggled into a country to avoid payment of customs duty.

Convertibility: The ability to exchange a currency for another currency or gold in the open market.

Convertible currency: A currency that can be bought or sold for other currencies or gold at will.

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

Countertrade: The sale of goods or services paid for in whole or in part by the transfer of goods or services from a foreign country.

Countervailing duty: An extra duty imposed on imports to offset export grants, bounties, or subsidies paid to foreign suppliers by their government as an incentive to export.

Credit risk insurance: Insurance designed to cover risks of non-payment for delivered goods.

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

Customs broker: An individual or firm licensed to enter and clear goods through customs on behalf of an importer.

Customs classification: The particular category in a tariff nomenclature in which a product is classified for tariff purposes, or the procedure for determining the appropriate tariff category in the system used by the country for the classification, coding, and description of internationally traded goods.

Customs tariff: A schedule of charges assessed by a country on imported goods.

Customs union: A group of countries that have eliminated trade barriers among themselves and imposed a common external tariff on imports from other nations.

Customs value: The value of imported goods on which duties are assessed.

D

DAF: Delivered at frontier. See Incoterms above.

DDP: Delivered duty paid. See Incoterms above.

Date draft: A draft that matures a specified number of days after the date issued, without regard to the date of acceptance.

Deferred payment credit: Type of letter of credit providing for payment some time after presentation of shipping documents.

Deferred rebate: The return of a portion of the freight charges by a carrier or a conference to shippers in exchange for giving all or most of their shipments to the carrier or conference over a specified period, usually six months. The deferred rebate system is illegal in U.S. foreign commerce, but it generally is accepted and used in foreign countries.

Delivery verification certificate: A form that tracks delivery of goods from the custody of an importer to the custody of a manufacturer. It may be required to substantiate a manufacturing drawback claim or to verify delivery.

Demand draft: A draft payable on demand from the date of issue.

Demurrage: Penalty for exceeding the time allotted for loading or unloading a vessel. Demurrage refers only to situations in which the charter or shipper, rather than the vessel's operator, is at fault.

Destination control statement: Any of various statements that the U.S. government requires to be displayed on documents covering controlled export shipments specifying the destinations for which export of the shipment has been authorized.

Devaluation: The official lowering of the value of one country's currency in terms of one or more foreign currencies.

Discharge: To unload the cargo of a ship.

Dishonor: Refusal of the drawee to accept a financial instrument.

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

Dock receipt: A receipt issued by an ocean carrier or its agent to acknowledge receipt of a shipment at the carrier's dock or warehouse facilities.

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

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

Domicile: The place where a draft or acceptance is made payable.

Draft (or bill of exchange): An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named payee at a fixed or determinable future date.

Drawback: A refund of duties paid on imported goods at the time of their re-exportation.

Drawee: The individual or firm on whom a draft is drawn and who owes the indicated amount.

Drawer: The individual or firm that issues or signs a draft and thus stands to receive payment of the indicated amount from the drawee.

Durable goods: Furniture, machinery, appliances, and similar goods that are not processed or consumed by their users.

Duty: A tax imposed on imports by the customs authority of a country. Duties generally are based on the value of the goods (ad valorem duties), some other factor such as weight or quantity (specific duties), or a combination of value and other factors.

E

Economic sanctions: A foreign policy tool used to punish and/or influence a target nation. Sanctions can include prohibiting trade, economic assistance, financial transactions, or even all economic relations.

Embargo: A restriction or prohibition on exports or imports with respect either to specific products or specific countries.

Entrepot: An intermediary storage facility housing merchandise temporarily for distribution within a country or for re-export.

Eurobond: A bond denominated in a currency and traded in a market outside the issuing country.

European Commission: A major institution of the European Union. The commission is responsible for initiating proposals for legislation, insuring the implementation of treaties to which the EU is party, executing EU policies, and representing the union in trade negotiations with non-member countries.

European Community (EC): A regional organization under the umbrella of the European Union; created to eliminate intra-regional barriers to trade, erect a common external tariff, and gradually adopt various integrating measures such as a common agricultural policy (CAP).

European currency unit (ECU): A basket of European currencies used by the EC for accounting purposes. The ECU is not used by people but by banks. See also European Monetary System, European Monetary Union and Exchange Rate Mechanism.

European Monetary System (EMS): A system established to promote monetary stability and economic integration in Europe. The EMS uses the European currency unit (ECU) to set central rates in the exchange rate mechanism and as a reserve instrument and means of settlement among EMS banks. All members of the EU use the system except Greece and the United Kingdom.

European Monetary Union (EMU): The system under which EU members seek to adopt a single currency and other monetary policies under provisions of the Maastrict Treaty.

European Union (EU): An umbrella organization created by the Maastrict Treaty to include the European Community, as well as integration efforts under the Common Foreign and Security Policy, and Justice and Home Affairs.

Ex: The point at which the price is quoted, such as Ex factory, Ex mill, or Ex warehouse.

Exchange permit: A government permit sometimes required to enable the importer to convert domestic currency into foreign currency with which to pay a seller in another country.

Exchange rate: The price of one currency in terms of another, i.e., the number of units of one currency that may be exchanged for one unit of another currency.

Eximbank: The Export-Import Bank. The U.S. Eximbank is an independent agency that finances the export of U.S. goods and services through loans, guarantees, working capital guarantees, and insurance.

Export Administration Act: Statutory authority for the president to restrict or to suspend U.S. exports in order to protect the national security, to protect short supplies, or to further foreign policy objectives.

Export broker: An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transactions.

Export commission house: An organization acting on commission as a purchasing agent for a foreign buyer.

Export control: Any restriction or regulation of exports, such as licensing requirements and embargoes.

Export Control Classification Number (ECCN): A number assigned to every product exported from the United States; it identifies the category, product group, type of control, and country group level of control for the product. ECCN was formerly called Export Control Commodity Number.

Export credits: Direct credits or loans to facilitate exports.

Export declaration: See Shipper's Export Declaration.

Export license: A government document permitting the licensee to engage in the export of designated goods to a certain destination.

Export management company: A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for commission, salary, or retainer plus commission.

Export trading company: A firm principally engaged in exporting goods and services or in facilitating exports by unaffiliated persons.

F

FAS: Free alongside. See Incoterms above.

FCA: Free carrier... (named point). See Incoterms above.

FOB: Free on board. See Incoterms above.

F.P.A.: Free of Particular Average. The minimum level of marine insurance available covering loss when a ship carrying goods is involved in collision or is stranded or sunk.

Fast track: Procedures adopted by the U.S. Congress to approve trade legislation in an up or down vote, with no amendments, and within a fixed period of time.

Flag of convenience: A ship registered under the flag of a country that offers conveniences regarding taxes, crew, and safety requirements.

Foreign Credit Insurance Association (FCIA): An association of leading private insurance companies in the United States that underwrite the risks of Eximbank.

Foreign sales agent: An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.

Foreign Sales Corporation (FSC): Replaced the earlier Domestic International Sales Corporation (DISC). A corporate entity under which a certain portion of export related income may be exempt from U.S. taxation in order to promote exports.

Foreign trade zone: A restricted-access site in or near a port designed by the government of a country for duty-free entry of non-prohibited goods; merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties being paid.

Forwarder: See freight forwarder.

Free port: An area such as a port city into which merchandise may be stored without payment of duties pending re-export or sale.

Free trade zone: A generic term to describe special commercial and industrial areas located in or near ports of entry where foreign merchandise may be imported without the immediate payment of duty. Merchandise brought into the zone may be stored, exhibited, assembled, processed, or used in manufacture prior to re-export or entry into the national customs territory. Free trade zones are also known as customs free zones and duty free zones.

Freight forwarder: An independent business that handles export shipments for compensation.

G

GATT: General Agreement on Tariffs and Trade. A multilateral treaty whose purpose is to help reduce trade barriers among signatory countries and to promote trade.

General cargo: Miscellaneous goods carried in units or small quantities and varying in weight, size, condition, nature, and class.

General export license: Authority to export without the need for a specific or validated export license.

General tariff: A tariff applied to imports from countries that do not enjoy either preferential or most-favored-nation tariff treatment.

H

Hard currency: A currency that is sound enough to be accepted at face value internationally.

Harmonized Commodity Description and Coding System (HS): The international classification system for goods implemented in 1988; used for tariff classification, trade statistics, and transport documentation in an effort to increase the uniformity of customs nomenclature and procedures in cooperating countries.

Hedging: The forward purchase or sale of foreign exchange to avoid or minimize losses in the event of an unfavorable change in the currency exchange rate.

I

Import certificate: A means by which the government of the ultimate destination exercises legal control over the internal channeling of the goods covered by the certificate.

Import license: A document required and issued by some national governments authorizing the importation of goods.

Import quota: A means of restricting imports by licensing importers and assigning each a limited import ceiling. Such licenses may also specify the country from which the importer must purchase the goods.

In bond: A term applied to the status of merchandise admitted provisionally to a country, without payment of duties, either for storage in a bonded warehouse or for transshipment to another point where duties will be imposed.

Incoterms: International rules published by the International Chamber of Commerce for the interpretation of foreign trade terms.

Inland bill of lading: A bill of lading used to transport goods over land to the international carrier.

Insurance certificate: A document that assures the consignee that the merchandise is insured to cover loss or damage while in transit.

International Chamber of Commerce (ICC): An organization founded to promote free trade and private enterprise and to represent business interests at the national and international level. The ICC is composed of national councils from over 60 countries.

International Standards Organization (ISO): A worldwide non-governmental federation of national standards groups concerned with standardization in all areas except electrical and electronic engineering, which is handled by the International Electrotechnical Commission.

Irrevocable letter of credit: A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawer.

Issuing bank: The bank that issues a letter of credit; also called the opening bank.

J

Joint venture: A business undertaking in which more than one firm share ownership and control.

K

L

Latin America Free Trade Association (LAFTA): Replaced by Latin American Integration Association.

Letter of credit (L/C): A document that substitutes the credit standing of the issuing bank for that of the buyer assuring the beneficiary (exporter) that the (exporter's) draft will be honored when presented if the terms of the credit are complied with.

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

M

Maquiladora: A program established by the Mexican government allowing foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent re-export. Also known as the in-bond industry program.

Marine insurance: Insurance covering loss or damage of goods at sea. Marine insurance typically will compensate the owner of merchandise for losses sustained from fire, shipwreck, piracy, and various other causes but will exclude losses that legally can be recovered from the carrier.

Market access: The openness of a national market to foreign products, reflecting a government's willingness to permit imports to compete unimpeded with domestically produced items.

Marking: Letters, numbers, and other symbols placed on cargo packages to facilitate identification.

Marks of origin: Physical markings on a product indicating the country where the merchandise was produced.

MERCOSUR (Mercado Commun del Sur—Southern Cone Common Market): A preferential trade agreement among countries of the southern cone of South America that aims to establish free trade and increased economic cooperation among members. The acronym in Portuguese is MERCOSUL.

Most-favored-nation treatment: A commitment that a country will extend to another country the lowest tariff rates or the most favorable non-tariff policies it applies to any third country. All GATT contracting parties undertake to apply such treatment to each other.

N

NAFTA (North American Free Trade Agreement): A regional preferential trade agreement that aims to eliminate tariffs and other trade, services, and investment barriers among its members.

Non-tariff barriers: Import quotas, variable levies, foreign exchange controls, performance requirements, discriminatory labeling, quality standards, and other non-tariff measures imposed by the government to restrict or to prevent the international exchange of goods.

O

Open account: A trade arrangement in which goods are shipped to a foreign buyer without guarantee of receiving payment.

Opening bank: The bank that issues the letter of credit. Same as issuing bank.

Overseas Private Investment Corporation (OPIC): An U.S. government agency that provides investment guarantees to U.S. companies investing in other countries.

P

Packing list: A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.

Phytosanitary inspection certificate: A plant health certificate issued to satisfy import regulations of foreign countries, indicating that a shipment has been inspected and is free from harmful pests and plant diseases.

Political risk: The risk of loss due to currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, hostilities, blocking of exchange, and other risks outside the commercial sphere.

Port authority: The government body responsible for maintaining airport and pier facilities, including transit sheds, loading equipment, and warehouses.

Power of attorney: An affidavit authorizing a party to act on one's behalf; usually stating the specific authority granted to the agent. It usually must be notarized and certified by a chamber of commerce.

Pro forma invoice: A model invoice that the buyer can use when arranging financing or applying for an import license or exchange control permit.

Q

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

R

Rate of exchange: The value of one country's currency in terms of another.

Reciprocity: The reduction of one country's import tariffs or other trade restraints in return for comparable trade concessions from another country.

Remittance: The transmittal of payment in the form of cash or negotiable instruments from one party to another.

Remitting bank: Bank that sends the draft to overseas bank for collection.

Revocable letter of credit: A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee's bank.

S

Sales representative: An agent responsible for distributing, representing, servicing, or selling merchandise for foreign sellers.

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

Shipper's Export Declaration (SED): A form required by the U.S. Commerce Department indicating value, weight, destination, and other basic information about an export shipment.

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

Shipping weight: The gross weight of a shipment, including moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

Sight draft: A draft payable upon presentation.

Soft currency: Currency that is not fully convertible to all currencies but only to some other soft currencies.

Special drawing rights (SDR): A monetary instrument established by the International Monetary Fund to take the place of gold as a supplemental international monetary reserve asset. The unit of value of an SDR reflects the daily exchange value of a basket of five major currencies.

T

T.I.R. carnet (transit international routier): A customs document that simplifies, facilitates, and expedites customs procedures related to the transborder movement of containerized goods without the payment of duties, taxes, and deposits and without customs examination.

Tariff quotas: Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at the usual tariff rate during a specified period. Tariff quotas do not limit the quantity of goods that may be imported but limit the quantity of the imported goods subject to the lower duty rate.

Tariff schedule: A comprehensive list of the commodities that a nation may import with the applicable import duties.

Tenor (or Usance): Term fixed for payment of a draft; e.g., 90 days after sight.

Through bill of lading: A bill of lading covering goods being moved on various means of transportation.

Time draft: A draft that matures either a certain number of days after sight by the drawee or a certain number of days after the date of the draft.

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

Transshipment: The act of sending an exported product through an intermediate country before routing it to the intended country of final destination.

Transit zone: A type of free trade zone. Transit zones are ports of entry established as storage and distribution centers for neighboring countries that lack adequate port facilities or access to the sea.

Transmittal letter: A list of the particulars of the shipment and a record of the documents being transmitted together with instructions for disposition of documents. Any special instructions are also included.

Trust receipt: An agreement signed by a buyer against which a bank releases merchandise to the buyer but retains title thereto. The buyer is obliged to maintain the identity of the goods or the proceeds thereof distinct from the rest of the assets and to hold them subject to repossession by the bank.

U

UCP (Uniform Customs and Practice for Commercial Documentary Credits): Universally accepted set of rules governing letters of credit transactions in more than 160 countries around the world.

Ultimate consignee: The person located abroad who is the true party of interest, receiving the export for the designated end-use.

Unclean bill of lading: A bill of lading containing reservations on the condition of the goods, the packaging, or both.

Unfair trade practices: Unusual government support to firms, such as export subsidies, or certain anti-competitive practices by firms themselves like dumping, boycotts, or discriminatory shipping arrangements that result in competitive advantages for the benefiting firms in international trade.

Unilateral: An action taken by a country acting singly and not dependent on, or conditional on, any action by another country.

United States Council for International Business Inc.: The American affiliate of the International Chamber of Commerce, the Business and Advisory Council to the Organization for Economic Cooperation and Development, and the International Organization of Employers.

United States Munitions List (USML): A list of items or categories of items considered to be defense articles and defense services subject to export control.

V

Validated export license: A document issued by the U.S. government authorizing the export of specific commodities that, by law, require written export authorization.

Value-added tax (VAT): An indirect tax assessed on the increase in value of goods from the raw material stage through the production process to final consumption. The tax to each processor or merchant is levied on the amount by which the merchant has increased the value of items purchased for resale.

Visa: An official stamp in a traveler's passport granting entry into a country.

W

Warehouse receipt: A receipt issued by a warehouse listing goods deposited there; it may be specified as negotiable or non-negotiable.

Wharfage: A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock.

Without reserve: A term indicating that a shipper's agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented.

World Trade Organization (WTO): An international organization established under the Uruguay Round of the General Agreement on Tariffs and Trade to replace GATT and to facilitate implementation of trade agreements reached in the Uruguay Round by bringing them under one institutional umbrella, requiring the full participation of all countries in one trading system, and providing a forum to discuss new issues facing the international trading system.

X Y Z

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