          
          
                            EXPORT GLOSSARY
          
          
          Acceptance -- This term has several related meanings: (1) A 
               time draft (or bill of exchange) that the drawee has 
               accepted and is unconditionally obligated to pay at 
               maturity. The draft must be presented first for 
               acceptance -- the drawee becomes the "acceptor" -- 
               then for payment. The word "accepted" and the date and 
               place of payment must be written on the face of the 
               draft. (2) The drawee's act in receiving a draft and 
               thus entering into the obligation to pay its value at 
               maturity. (3) Broadly speaking, any agreement to 
               purchase goods under specified terms. An agreement to 
               purchase goods at a stated price and under stated 
               terms.
          
          Ad valorem -- According to value. See Duty.
          
          Advance against documents -- A loan made on the security of 
               the documents covering the shipment.
          
          Advising bank -- A bank, operating in the exporter's 
               country, that handles letters of credit for a foreign 
               bank by notifying the export firm that the credit has 
               been opened in its favor. The advising bank fully 
               informs the exporter of the conditions of the letter 
               of credit without necessarily bearing responsibility 
               for payment.
          
          Advisory capacity -- A term indicating that a shipper's 
               agent or representative is not empowered to make 
               definitive decisions or adjustments without approval 
               of the group or individual represented. Compare 
               Without reserve.
          
          Agent -- See Foreign sales agent.
          
          Air waybill -- A bill of lading that covers both domestic 
               and international flights transporting goods to a 
               specified destination. This is a nonnegotiable 
               instrument of air transport that serves as a receipt 
               for the shipper, indicating that the carrier has 
               accepted the goods listed and obligates itself to 
               carry the consignment to the airport of destination 
               according to specified conditions. Compare Inland bill of
               lading, Ocean bill of lading, and Through bill of lading.
          
          Alongside -- The side of a ship. Goods to be delivered 
               "alongside" are to be placed on the dock or barge 
               within reach of the transport ship's tackle so that 
               they can be loaded aboard the ship.
          
          Antidiversion clause -- See Destination control statement.
          
          Arbitrage -- The process of buying foreign exchange, 
               stocks, bonds, and other commodities in one market and 
               immediately selling them in another market at higher 
               prices.
          
          Asian dollars -- U.S. dollars deposited in Asia and the 
               Pacific Basin. Compare Eurodollars.
          
          ATA Carnet -- See Carnet.
          
          Balance of trade -- The difference between a country's 
               total imports and exports. If exports exceed imports, 
               a favorable balance of trade exists; if not, a trade 
               deficit is said to exist.
          
          Barter -- Trade in which merchandise is exchanged directly 
               for other merchandise without use of money. Barter is 
               an important means of trade with countries using 
               currency that is not readily convertible.
          
          Beneficiary -- The person in whose favor a letter of credit 
               is issued or a draft is drawn.
          
          Bill of exchange -- See Draft.
          
          Bill of lading -- A document that establishes the terms of a
               contract between a shipper and a transportation company under
               which freight is to be moved between specified points for a
               specified charge. Usually prepared by the shipper on forms
               issued by the carrier, it serves as a document of title, a
               contract of carriage, and a receipt for goods. Also see Air
               waybill, Inland bill of lading, Ocean bill of lading, and
               Through bill of lading.
          
          Bonded warehouse -- A warehouse authorized by customs 
               authorities for storage of goods on which payment of 
               duties is deferred until the goods are removed.
          
          Booking -- An arrangement with a steamship company for the
               acceptance and carriage of freight.
          
          Buying agent -- See Purchasing agent.
          
          Carnet -- A customs document permitting the holder to carry 
               or send merchandise temporarily into certain foreign 
               countries (for display, demonstration, or similar 
               purposes) without paying duties or posting bonds.
          
          Cash against documents (CAD) -- Payment for goods in which a
               commission house or other intermediary transfers title
               documents to the buyer upon payment in cash.
          
          Cash in advance (CIA) -- Payment for goods in which the 
               price is paid in full before shipment is made. This 
               method is usually used only for small purchases or 
               when the goods are built to order.
          
          Cash with order (CWO) -- Payment for goods in which the 
               buyer pays when ordering and in which the transaction 
               is binding on both parties.
          
          Certificate of inspection -- A document certifying that 
               merchandise (such as perishable goods) was in good 
               condition immediately prior to its shipment.
          
          Certificate of manufacture -- A statement (often notarized) 
               in which a producer of goods certifies that 
               manufacture has been completed and that the goods are 
               now at the disposal of the buyer.
          
          Certificate of origin -- A document, required by certain 
               foreign countries for tariff purposes, certifying the 
               country of origin of specified goods.
          
          CFR -- Cost and freight. A pricing term indicating that the 
               cost of the goods and freight charges are included in 
               the quoted price; the buyer arranges for and pays 
               insurance.
          
          Charter party -- A written contract, usually on a special 
               form, between the owner of a vessel and a "charterer" 
               who rents use of the vessel or a part of its freight 
               space. The contract generally includes the freight 
               rates and the ports involved in the transportation.
          
          CIF -- Cost, insurance, freight. A pricing term indicating 
               that the cost of the goods, insurance, and freight are 
               included in the quoted price.
          
          Clean bill of lading -- A receipt for goods issued by a 
               carrier that indicates that the goods were received in 
               "apparent good order and condition," without damages 
               or other irregularities.  Compare Foul bill of lading.
          
          Clean draft -- A draft to which no documents have been 
               attached.
          
          Collection papers -- All documents (commercial invoices, 
               bills of lading, etc.) submitted to a buyer for the 
               purpose of receiving payment for a shipment.
          
          Commercial attache -- The commerce expert on the diplomatic 
               staff of his or her country's embassy or large 
               consulate.
          
          Commercial invoice -- An itemized list of goods shipped, 
               usually included among an exporter's collection 
               papers.
          
          Commission agent -- See Purchasing agent.
          
          Common carrier -- An individual, partnership, or 
               corporation that transports persons or goods for 
               compensation.
          
          Confirmed letter of credit -- A letter of credit, issued by 
               a foreign bank, the validity of which has been 
               confirmed by a U.S. bank. An exporter whose payment 
               terms are a confirmed letter of credit is assured of 
               payment by the U.S. bank even if the foreign buyer or 
               the foreign bank defaults. See Letter of credit.
          
          Consignment -- Delivery of merchandise from an exporter (the
               consignor) to an agent (the consignee) under agreement that
               the agent sell the merchandise for the account of the
               exporter. The consignor retains title to the goods until the
               consignee has sold them. The consignee sells the goods for
               commission and remits the net proceeds to the consignor.
          
          Consular declaration -- A formal statement, made to the 
               consul of a foreign country, describing goods to be 
               shipped.
          
          Consular invoice -- A document, required by some foreign 
               countries, describing a shipment of goods and showing 
               information such as the consignor, consignee, and 
               value of the shipment. Certified by a consular 
               official of the foreign country, it is used by the 
               country's customs officials to verify the value, 
               quantity, and nature of the shipment.
          
          Convertible currency -- A currency that can be bought and 
               sold for other currencies at will.
          
          Correspondent bank -- A bank that, in its own country, 
               handles the business of a foreign bank.
          
          Countertrade -- The sale of goods or services that are paid 
               for in whole or in part by the transfer of goods or 
               services from a foreign country. (See Barter.)
          
          Countervailing duty -- A duty imposed to counter unfairly 
               subsidized products.
          
          CPT (carriage paid to) and CIP (carriage and insurance paid 
               to) -- Pricing terms indicating that carriage, or 
               carriage and insurance, are paid to the named place of 
               destination. They apply in place of CFR and CIF, 
               respectively, for shipment by modes other than water.
          
          Credit risk insurance -- Insurance designed to cover risks 
               of nonpayment for delivered goods. Compare Marine 
               insurance.
          
          Customhouse broker -- An individual or firm licensed to 
               enter and clear goods through customs.
          
          Customs -- The authorities designated to collect duties 
               levied by a country on imports and exports. The term 
               also applies to the procedures involved in such 
               collection.
          
          
          Date draft -- A draft that matures in a specified number of 
               days after the date it is issued, without regard to 
               the date of acceptance. See Draft, Sight draft, and 
               Time draft.
          
          Deferred payment credit -- Type of letter of credit 
               providing for payment some time after presentation of 
               shipping documents by exporter.
          
          Demand draft -- See Sight draft.
          
          Destination control statement -- Any of various statements 
               that the U.S. government requires to be displayed on 
               export shipments and that specify the destinations for 
               which export of the shipment has been authorized.
          
          Devaluation -- The official lowering of the value of one 
               country's currency in terms of one or more foreign 
               currencies. For example, if the U.S. dollar is 
               devalued in relation to the French franc, one dollar 
               will "buy" fewer francs than before.
          
          DISC -- Domestic international sales corporation.
          
          Discrepancy -- Letter of credit -- When documents presented 
               do not conform to the letter of credit it is referred 
               to as a discrepancy.
          
          Dispatch -- An amount paid by a vessel's operator to a 
               charterer if loading or unloading is completed in less 
               time than stipulated in the charter party.
          
          Distributor -- A foreign agent who sells for a supplier 
               directly and maintains an inventory of the supplier's 
               products.
          
          Dock receipt -- A receipt issued by an ocean carrier to 
               acknowledge receipt of a shipment at the carrier's 
               dock or warehouse facilities. Also see Warehouse 
               receipt.
          
          Documentary draft -- A draft to which documents are 
               attached.
          
          Documents against acceptance (D/A) -- Instructions given by 
               a shipper to a bank indicating that documents 
               transferring title to goods should be delivered to the 
               buyer (or drawee) only upon the buyer's acceptance of 
               the attached draft.
          
          Draft (or Bill of exchange) -- An unconditional order in 
               writing from one person (the drawer) to another (the 
               drawee), directing the drawee to pay a specified 
               amount to a named drawer at a fixed or determinable 
               future date (see chapter 13). See Date draft, Sight 
               draft, Time draft.
          
          Drawback -- Articles manufactured or produced in the United 
               States with the use of imported components or raw 
               materials and later exported are entitled to a refund 
               of up to 99 percent of the duty charged on the 
               imported components. The refund of duty is known as a 
               drawback.
          
          Drawee -- The individual or firm on whom a draft is drawn 
               and who owes the stated amount. Compare Drawer. Also 
               see Draft.
          
          Drawer -- The individual or firm that issues or signs a 
               draft and thus stands to receive payment of the stated 
               amount from the drawee. Compare Drawee. Also see 
               Draft.
          
          Dumping -- Selling merchandise in another country at a 
               price below the price at which the same merchandise is 
               sold in the home market or selling such merchandise 
               below the costs incurred in production and shipment.
          
          Duty -- A tax imposed on imports by the customs authority 
               of a country. Duties are generally 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 (compound 
               duties).
          
          EMC -- See Export management company.
          
          ETC -- See Export trading company.
          
          Eurodollars -- U.S. dollars placed on deposit in banks 
               outside the United States; usually refers to deposits 
               in Europe.
          
          Ex -- From. When used in pricing terms such as "ex factory" 
               or "ex dock," it signifies that the price quoted 
               applies only at the point of origin (in the two 
               examples, at the seller's factory or a dock at the 
               import point). In practice, this kind of quotation 
               indicates that the seller agrees to place the goods at 
               the disposal of the buyer at the specified place 
               within a fixed period of time.
          
          Exchange permit -- A government permit sometimes required 
               by the importer's government to enable the import firm 
               to convert its own country's currency into foreign 
               currency with which to pay a seller in another 
               country.
          
          Exchange rate -- The price of one currency in terms of 
               another, that is, the number of units of one currency 
               that may be exchanged for one unit of another 
               currency.
          
          Eximbank -- Export-Import Bank of the United States.
          
          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 which, for a 
               commission, acts as a purchasing agent for a foreign 
               buyer.
          
          Export declaration -- See Shipper's export declaration.
          
          Export license -- A government document that permits the 
               licensee to export designated goods to certain 
               destinations. See General export license and 
               Individually validated export license. 
          
          Export management company -- A private firm that serves as 
               the export department for several producers of goods 
               or services, either by taking title or by soliciting 
               and transacting export business on behalf of its 
               clients in return for a commission, salary, or 
               retainer plus commission.
          
          Export trading company -- A firm similar or identical to an 
               export management company.
          
          Factoring houses -- Finance companies which buy or loan 
               against export documents.
          
          FAS -- Free alongside ship. A pricing term indicating that 
               the quoted price includes the cost of delivering the 
               goods alongside a designated vessel.
          
          FCA -- "Free carrier" to named place. Replaces the former 
               term "FOB named inland port" to designate the seller's 
               responsibility for the cost of loading goods at the 
               named shipping point. May be used for multimodal 
               transport, container stations, and any mode of 
               transport, including air.
          
          FCIA -- Foreign Credit Insurance Association.
          
          FI -- Free in. A pricing term indicating that the charterer 
               of a vessel is responsible for the cost of loading and 
               unloading goods from the vessel.
          
          Floating policy -- See Open policy.
          
          FO -- Free out. A pricing term indicating that the 
               charterer of a vessel is responsible for the cost of 
               loading goods from the vessel.
          
          FOB -- "Free on board" at named port of export. A pricing 
               term indicating that the quoted price covers all 
               expenses up to and including delivery of goods upon an 
               overseas vessel provided by or for the buyer.
          
          Force majeure -- The title of a standard clause in marine 
               contracts exempting the parties for nonfulfillment of 
               their obligations as a result of conditions beyond 
               their control, such as earthquakes, floods, or war.
          
          Foreign exchange -- The currency or credit instruments of a 
               foreign country. Also, transactions involving purchase 
               or sale of currencies.
          
          Foreign freight forwarder -- See Freight forwarder.
          
          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 trade zone -- See Free-trade zone.
          
          Foul bill of lading -- A receipt for goods issued by a 
               carrier with an indication that the goods were damaged 
               when received.  Compare Clean bill of lading.
          
          Free port -- An area such as a port city into which 
               merchandise may legally be moved without payment of 
               duties.
          
          Free-trade zone -- A port designated by the government of a 
               country for duty-free entry of any nonprohibited 
               goods. Merchandise may be stored, displayed, used for 
               manufacturing, etc., within the zone and reexported 
               without duties being paid. Duties are imposed on the 
               merchandise (or items manufactured from the 
               merchandise) only when the goods pass from the zone into an
               area of the country subject to the customs authority.
          
          Freight forwarder -- An independent business that handles 
               export shipments for compensation. 
          
          GATT -- General Agreement on Tariffs and Trade. A 
               multilateral treaty intended to help reduce trade 
               barriers between signatory countries and to promote 
               trade through tariff concessions.
          
          General export license -- Any of various export licenses 
               covering export commodities for which Individually 
               validated export licenses are not required. No formal 
               application or written authorization is needed to ship 
               exports under a general export license.
          
          Gross weight -- The full weight of a shipment, including 
               goods and packaging. Compare Tare weight.
          
          Import license -- A document required and issued by some 
               national governments authorizing the importation of 
               goods into their individual countries.
          
          Individually validated export license -- A required 
               document issued by the U.S. Government authorizing the 
               export of specific commodities. This license is for a 
               specific transaction or time period in which the 
               exporting is to take place. Compare General export 
               license.
          
          Inland bill of lading -- A bill of lading used in 
               transporting goods overland to the exporter's 
               international carrier. Although a through bill of 
               lading can sometimes be used, it is usually necessary 
               to prepare both an inland bill of lading and an ocean 
               bill of lading for export shipments. Compare Air 
               waybill, Ocean bill of lading, and Through bill of lading.
          
          International freight forwarder -- See Freight forwarder.
          
          Irrevocable letter of credit -- A letter of credit in which 
               the specified payment is guaranteed by the bank if all 
               terms and conditions are met by the drawee. Compare 
               Revocable letter of credit.
          
          Letter of credit (L/C) -- A document, issued by a bank per 
               instructions by a buyer of goods, authorizing the 
               seller to draw a specified sum of money under 
               specified terms, usually the receipt by the bank of 
               certain documents within a given time.
          
          Licensing -- A business arrangement in which the 
               manufacturer of a product (or a firm with proprietary 
               rights over certain technology, trademarks, etc.) 
               grants permission to some other group or individual to 
               manufacture that product (or make use of that 
               proprietary material) in return for specified 
               royalties or other payment.
          
          Manifest -- See Ship's manifest.
          
          Marine insurance -- Insurance that compensates the owners 
               of goods transported overseas in the event of loss 
               that cannot be legally recovered from the carrier. 
               Also covers air shipments.  Compare Credit risk 
               insurance.
          
          Marking (or marks) -- Letters, numbers, and other symbols 
               placed on cargo packages to facilitate identification.
          
          Ocean bill of lading -- A bill of lading (B/L) indicating 
               that the exporter consigns a shipment to an 
               international carrier for transportation to a 
               specified foreign market. Unlike an inland B/L, the 
               ocean B/L also serves as a collection document. If it 
               is a "straight" B/L, the foreign buyer can obtain the 
               shipment from the carrier by simply showing proof of 
               identity. If a "negotiable" B/L is used, the buyer 
               must first pay for the goods, post a bond, or meet 
               other conditions agreeable to the seller. Compare Air 
               waybill, Inland bill of lading, and Through bill of 
               lading.
          
          On board bill of lading -- A bill of lading in which a 
               carrier certifies that goods have been placed on board 
               a certain vessel.
          
          Open account -- A trade arrangement in which goods are 
               shipped to a foreign buyer without guarantee of 
               payment. The obvious risk this method poses to the 
               supplier makes it essential that the buyer's integrity 
               be unquestionable.
          
          Open insurance policy -- A marine insurance policy that 
               applies to all shipments made by an exporter over a 
               period of time rather than to one shipment only.
          
          Order bill of lading -- A negotiable bill of lading made 
               out to the order of the shipper.
          
          Packing list -- A list showing the number and kinds of 
               items being shipped, as well as other information 
               needed for transportation purposes.
          
          Parcel post receipt -- The postal authorities' signed 
               acknowledgment of delivery to receiver of a shipment 
               made by parcel post.
          
          PEFCO -- Private Export Funding Corporation. A corporation 
               that lends to foreign buyers to finance exports from 
               the United States.
          
          Perils of the sea -- A marine insurance term used to 
               designate heavy weather, stranding, lightning, 
               collision, and sea water damage.
          
          Phytosanitary inspection certificate -- A certificate, 
               issued by the U.S. Department of Agriculture to 
               satisfy import regulations for foreign countries, 
               indicating that a U.S. shipment has been inspected and 
               is free from harmful pests and plant diseases.
          
          Political risk -- In export financing, the risk of loss due 
               to such causes as currency inconvertibility, 
               government action preventing entry of goods, 
               expropriation or confiscation, and war.
          
          Pro forma invoice -- An invoice provided by a supplier 
               prior to the shipment of merchandise, informing the 
               buyer of the kinds and quantities of goods to be sent, 
               their value, and important specifications (weight, 
               size, etc.).
          
          Purchasing agent -- An agent who purchases goods in his or 
               her own country on behalf of foreign importers such as 
               government agencies and large private concerns.
          
          Quota -- The quantity of goods of a specific kind that a 
               country permits to be imported without restriction or 
               imposition of additional duties.
          
          Quotation -- An offer to sell goods at a stated price and 
               under specified conditions.
          
          Remitting bank -- The bank that sends the draft to the 
               overseas bank for collection.
          
          Representative -- See Foreign sales agent.
          
          Revocable letter of credit -- A letter of credit that can 
               be canceled or altered by the drawee (buyer) after it 
               has been issued by the drawee's bank. Compare 
               Irrevocable letter of credit.
          
          Schedule B -- Refers to Schedule B, Statistical 
               Classification of Domestic and Foreign Commodities 
               Exported from the United States. All commodities 
               exported from the United States must be assigned a 
               seven-digit Schedule B number.
          
          Shipper's export declaration -- A form required for all 
               shipments by the U.S. Treasury Department and prepared 
               by a shipper, indicating the value, weight, 
               destination, and other basic information about an 
               export shipment.
          
          Ship's manifest -- An instrument in writing, signed by the 
               captain of a ship, that lists the individual shipments 
               constituting the ship's cargo.
          
          Sight draft (S/D) -- A draft that is payable upon 
               presentation to the drawee. Compare Date draft and 
               Time draft.
          
          Spot exchange -- The purchase or sale of foreign exchange 
               for immediate delivery.
          
          Standard industrial classification (SIC) -- A standard 
               numerical code system used by the U.S. government to 
               classify products and services.
          
          Standard international trade classification (SITC) -- A 
               standard numerical code system developed by the United 
               Nations to classify commodities used in international 
               trade.
          
          Steamship conference -- A group of steamship operators that 
               operate under mutually agreed-upon freight rates.
          
          Straight bill of lading -- A nonnegotiable bill of lading 
               in which the goods are consigned directly to a named 
               consignee.
          
          Tare weight -- The weight of a container and packing 
               materials without the weight of the goods it contains. 
               Compare Gross weight.
          
          Tenor (of a draft) -- Designation of a payment as being due 
               at sight, a given number of days after sight, or a 
               given number of days after date.
          
          Through bill of lading -- A single bill of lading 
               converting both the domestic and international 
               carriage of an export shipment.  An air waybill, for 
               instance, is essentially a through bill of lading used 
               for air shipments. Ocean shipments, on the other hand, 
               usually require two separate documents -- an inland 
               bill of lading for domestic carriage and an ocean bill 
               of lading for international carriage. Through bills of 
               lading are insufficient for ocean shipments. Compare 
               Air waybill, Inland bill of lading, and Ocean bill of 
               lading.
          
          Time draft -- A draft that matures either a certain number 
               of days after acceptance or a certain number of days 
               after the date of the draft. Compare Date draft and 
               Sight draft.
          
          Tramp steamer -- A ship not operating on regular routes or
               schedules.
          
          Transaction statement -- A document that delineates the 
               terms and conditions agreed upon between the importer 
               and exporter.
          
          Trust receipt -- Release of merchandise by a bank to a 
               buyer in which the bank retains title to the 
               merchandise.  The buyer, who obtains the goods for 
               manufacturing or sales purposes, is obligated to 
               maintain the goods (or the proceeds from their sale) 
               distinct from the remainder of his or her assets and 
               to hold them ready for repossession by the bank.
          
          Warehouse receipt -- A receipt issued by a warehouse 
               listing goods received for storage.
          
          Wharfage -- A charge assessed by a pier or dock owner for 
               handling incoming or outgoing cargo.
          
          Without reserve -- A term indicating that a shipper's agent 
               or representative is empowered to make definitive 
               decisions and adjustments abroad without approval of 
               the group or individual represented. Compare Advisory 
               capacity.
          
          
