Copyright: Copyright ©1998


"Class or Kind" of Merchandise

A term used in defining the scope of an antidumping investigation. Included in the "class or kind" of merchandise is merchandise sold in the home market which is "such or similar" to the petitioned product. "Such or similar" merchandise is that merchandise which is identical to or like the petitioned product in physical characteristics.


"J" Curve and Real Exchange Rates

The current account may initially worsen before improving in response to real depreciation in exchange rates, because it takes time for the growth of import volumes to decline in response to higher import prices. This phenomenon is known as the "J-curve effect," because the downward movement followed by an upward movement in the current account resembles the letter "J."


AAB

Arab-African Bank.


AAEI

American Association of Exporters & Importers.


ABEDA

Arab Bank for Economic Development in Africa (also BADEA) with the goal to promote economic development.


ABI

Automated Broker Interface; American Business Initiative.


ABTA

Association of British Travel Agents.


ACC

Arab Cooperation Council to promote economic cooperation and integration.


ACCT

Agency for Cultural and Technical Cooperation. It is made up of 32 members, 7 associate members and 2 participating governments with the goal of promoting cultural and technical cooperation among French-speaking countries.


ACDA

Arms Control and Disarmament Agency.


ACEP

Advisory Committee on Export Policy.


ACH

Automated Clearinghouse.


ACP

African, Caribbean and Pacific Countries. The sixty-nine member states' goal is a preferential economic and aid relationship with the EU.


ACS

Automated Commercial System.


ACTPN

Advisory Committee on Trade Policy & Negotiations.


AD

Antidumping.


ADB

Asian Development Bank.


ADF

African Development Foundation.


ADS

Agent Distributor Service.


AECA

Arms Export Control Act.


AEN

Administrative Exception Note.


AFESD

Arab Fund for Economic and Social Development.


AG

Australia Group.


AID

Agency for International Development.


AIES

Automated Information Exchange System.


AIMS

Agriculture Information & Marketing Services.


AIT

American Institute in Taiwan.


AL

Arab League.


ALADI

See Latin American Integration Association (LAIA).


AMB

Ambassador.


AMF

Arab Monetary Fund.


AMS

Automated Manifest System.


AMU

Arab Maghreb Union, with the goal of promoting cooperation and integration among the Arab states of northern Africa.


ANZUS

Australia-New Zealand-US Security Treaty.


AOSIS

Alliance of Small Island States.


APAC

Auto Parts Advisory Committee.


APEC

Asian-Pacific Economic Cooperation.


APO

Administrative Protective Order.


ASEAN

Association of Southeast Asian Nations, with the goal of promoting regional economic, social and cultural cooperation among the area's non-Communist countries.


ASIC

Application-Specific Integrated Circuit.


ATI

American Traders Index; Andean Trade Initiative.


ATP

Advanced Technology Products.


ATPI

Andean Trade Preference Initiative.


AUTOVON

Automatic Voice Network.


Absorption

Absorption is investment and consumption purchases by households, businesses and governments, both domestic and imported. When absorption exceeds production, the excess is the country's current account deficit.


Acceptance

This term has several related meanings:

(1) A time draft (or bill of exchange) which the drawee (the payer) 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.


Accession

Accession is the process by which a country becomes a member of an international agreement, such as the World Trade Organization (WTO) (formerly General Agreement on Tariffs & Trade or GATT) or the European Union. Accession to the WHO involves negotiations to determine the specific obligations a nonmember country must undertake before it will be entitled to full WTO membership benefits.


Accountee

The entity for which a letter of credit is issued.


Actual Gross Weight

See Gross Weight.


Ad Valorem

Literally: according to value. Any charge, tax, or duty that is applied as a percentage of value.


Ad Valorem Duty

Tax imposed on imported merchandise based on a percentage of the value. Also see Duty.


Administrative Exception Notes

CoCom controls exports at three levels, depending on the item and the proposed destination. At the lowest level, "national discretion" (also called "administrative exception"), a member nation may approve the export on its own, but CoCom must be notified after the fact. Administrative exception notes are appended to list categories describing commodities that can be approved solely at national discretion.


Administrative Notes

See Administrative Exception Notes.


Administrative Protective Order

An Administrative Protective Order, APO, is used to protect proprietary data that is obtained during an administrative proceeding. Within Commerce, APO is most frequently used in connection with Antidumping and Countervailing Duty investigations to prohibit opposing counsel from releasing data. The term is also applied in connection with civil enforcement of export control laws to protect against the disclosure of information provided by companies being investigated for violations.


Advance Against Collection

Short term loan credited to seller upon acceptance of the draft by the buyer.


Advance Against Documents

A payment made by a buyer prior to the delivery of shipping documents.


Advanced Technology Products

About 500 of some 22,000 commodity classification codes used in reporting US merchandise trade are identified as "advanced technology" codes and they meet the following criteria:

The code contains products whose technology is from a recognized high technology field (e.g., biotechnology);

These products represent leading edge technology in that field; and

Such products constitute a significant part of all items covered in the selected classification code.


Advice

Official notice regarding a business's transactions with a bank, i.e., advice of fate, advice of payment, credit advice, etc.


Advice, Letter of

In this document (sent by one business to another to whom they have sent a shipment, on consignment or otherwise) appears a description of the goods sent, the carrier or other means of transportation used, the date of departure and all other relevant data. (Bankers use the term "letter of advice" when notifying interested parties of such actions as the opening of credits, the drawing of drafts, the payment or non-payment of drafts.)


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.


Advisory Committee on Export Policy

The Advisory Committee on Export Policy, ACEP, is an interagency dispute resolution body that operates at the Assistant Secretary level. ACEP is chaired by Commerce; membership includes the Departments of Defense, Energy and State, the Arms Control and Disarmament Agency and the intelligence community. Disputes not resolved by the ACEP must be addressed by the cabinet-level Export Administration Review Board within specific time frames set forth under National Security Directive 53.


Advisory Committee on Trade Policy & Negotiations

The ACTPN is a group (membership of 45; two-year terms) appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements. The 1974 Trade Act requires the ACTPN's establishment and broad representation of key economic sectors affected by trade. Below the ACTPN are seven policy committees: SPAC (Services Policy Advisory Committee), INPAC (Investment), IGPAC (Intergovernmental), IPAC (Industry), APAC (Agriculture), LAC (Labor) and DPAC (Defense). Below the policy committees are sectorial, technical and functional advisory committees. See Industry Consultations Program.


Advisory Notes

See Administrative Exception Notes.


AfDB

African Development Bank. Fifty-one regional and 25 nonregional members with the goal of promoting economic and social development.


Affiliate

An affiliate is a business enterprise located in one country which is directly or indirectly owned or controlled by a person of another country to the extent of 10 percent or more of its voting securities for an incorporated business enterprise or an equivalent interest for an unincorporated business enterprise, including a branch. For outward investment, the affiliate is referred to as a "foreign affiliate"; for inward investment, it is referred to as a "US affiliate."


Affiliated Foreign Group

An affiliated foreign group means (a) the foreign parent, (b) any foreign person, proceeding up the foreign parent's ownership chain, which owns more than 50 percent of the person below it up to and including that person which is not owned more than 50 percent by another foreign person, and (c) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 percent by the person above it.


Affreightment, Contract of

An agreement by a steamship line to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.


African Development Bank

AfDB, established in 1963, has headquarters in Abidjan, Cote d'Ivoire. The AfDB provides financing through direct loans to African member states to cover the foreign exchange costs incurred in Bank-approved development projects in those countries. Fifty-one African countries are members and ordinarily receive loans. The Republic of South Africa is currently the only African country not a member.


African Development Foundation

The ADF is an independent, nonprofit government corporation established to provide financial assistance to grass-roots organizations in Africa. ADF became operational in 1984.


African, Caribbean and Pacific Countries

Abbreviated ACP, these are developing countries which are designated beneficiaries under the Lome Convention. See Lome Convention.


After Date

A phrase indicating that the date of maturity of a draft or other negotiable instrument is fixed by the date on which it was drawn. The date of maturity does not, therefore, depend on acceptance by the drawee.


After Sight

A phrase indicating that payment on a draft or other negotiable instrument is due a specified number of days after presentation of the draft to the drawee or payee.


Agency for International Development

AID was created in 1961 to administer foreign economic assistance programs of the US government. AID has field missions and representatives in approximately 70 developing countries in Africa, Latin America, the Caribbean and the Near East.


Agent/Distributor Service

The Agent/Distributor Service, ADS, is an International Trade Administration (ITA) fee-based service which locates foreign import agents and distributors. ADS provides a custom search overseas for interested and qualified foreign representatives on behalf of a US exporter. Officers abroad conduct the search and prepare a report identifying up to six foreign prospects that have examined the US firm's product literature and have expressed interest in representing the US firm's products.


Air Waybill

A bill of lading which covers both domestic and international flights transporting goods to a specified destination. Technically, it is a nonnegotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions.


All-Risk Clause

An insurance provision that all loss or damage to goods is insured except that of inherent vice (self-caused).


Alongside

A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or lighter within reach of the transport ship's tackle so that they can be loaded aboard the ship. Goods are delivered to the port of embarkation, but without loading fees.


American Business Initiative

The ABI, or American Business and Private Sector Development Initiative for Eastern Europe, emphasizes the export of American telecommunication, energy, environment, housing and agriculture products and services to Eastern European countries.


American Institute in Taiwan

The American Institute in Taiwan, AIT, is a non-profit corporation that represents US interests in Taiwan in lieu of an embassy. In 1979, the United States terminated formal diplomatic relations with Taiwan when it recognized the People's Republic of China as the sole legal government of China. AIT was authorized to continue commercial, cultural and other relations between the US and Taiwan.


American Traders Index

The American Traders Index, ATI, is the US & Foreign Commercial Service headquarters compilation of individual US&FCS domestic client files, for use by overseas posts to generate mailing lists.


Analysis Certificate

This certificate must be obtained for any goods for which the importing country requires an analysis as proof of quality, composition, etc.


Andean Group

A group of Latin American countries formed in 1969 to promote regional economic integration among medium-sized countries. Members include Bolivia, Colombia, Ecuador, Peru and Venezuela. Peru withdrew from the the Andean Group in 1997, but still maintains some ties.


Andean Trade Initiative

The ATI, the trade element of the Administration's drug policy, provides for assistance for alternative economic development to the drug producing countries of Bolivia, Colombia, Ecuador and Peru. The Andean Trade Preference Act of 1991 proposes the designation of ten years of duty-free treatment for most goods produced in one or a combination of these four countries. Currently, none of the four ATI countries has received formal designation as a beneficiary.


Antidumping

Antidumping, as a reference to the system of laws to remedy dumping, is defined as a converse of dumping. (See Dumping.)


Antidumping Duty

A tariff imposed to discourage sale of foreign goods in a market at low prices which would be detrimental to local manufacturers.


Antidumping/Countervailing Duty System

The Antidumping/Countervailing Duty System, a part of Customs' Automated Commercial System, contains a case reference database and a statistical reporting system to capture data for International Trade Commission reports on antidumping and countervailing duties assessed and paid.


Application-Specific Integrated Circuit

The ASIC is an integrated circuit, often custom- or semi-custom-designed for one narrow use, such as substituting one large integrated circuit for many small ones.


Appraisement

The determination, by a proper customs official, of the dutiable value of imported merchandise following procedures outlined in the US Tariff Act of 1930, as amended.


Arab League

The Arab League, established in March 1945, aims to improve economic, social, political and military relations among Arab nations. Headquarters are located in Cairo, Egypt. Members include: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.


Arab Maghreb Union

The AMU, established in 1989, is directed toward joining AMU and Gulf Cooperation Council states in a common market. AMU members include: Algeria, Morocco, Tunisia, Libya and Mauritania.


Arbitrage

The simultaneous buying and selling of the same commodity or foreign exchange in two or more markets in order to take advantage of price differentials. (See also Hedging.)


Arms Control & Disarmament Agency

The Arms Control & Disarmament Agency, ACDA, is an independent agency within the State Department. ACDA reviews dual-use license applications from a non-proliferation perspective -- anything that could impact on the proliferation of missiles, chemical and biological weapons and nuclear weapons. ACDA's positions need not be consonant with those of State. The agency was created in 1961, has about 200 to 250 staff, and has a fairly substantial and growing technology transfer and export control function. The Director is the principal arms control adviser to the Secretary of State, the President and the NSC on conventional arms transfer, commercial sales of munitions; nuclear, missile, chemical and biological warfare; East-West military munitions issues, CoCom and negotiating MOUs with the 3rd world on strategic trade.


Arrival Draft

Modified sight draft not requiring payment until after the arrival of the goods at the port of destination.


Arrival Notice

This notice, which advises consignees that cargoes have arrived, is issued by railroads, airlines and maritime services. The notice also identifies the shipment and can serve as the freight bill.


Asia Pacific Economic Cooperation

Asia Pacific Economic Cooperation, APEC, is an informal grouping of Asia Pacific countries that provides a forum for Ministerial level discussion of a broad range of economic issues. APEC includes the six ASEAN countries (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand), plus: Australia, Canada, China, Hong Kong, Japan, South Korea, Taiwan and the United States.


Asian Development Bank

The AsDB was formed in 1966 to foster economic growth and cooperation in Asia and to help accelerate economic development of members. AsDB headquarters are in the Philippines.


Assessment

The imposition of antidumping duties on imported merchandise.


Association of Southeast Asian Nations

ASEAN was established in 1967 to promote political, economic and social cooperation among its six member countries: Indonesia, Malaysia, Philippines, Singapore, Thailand and Brunei.


At Sight

A phrase indicating that payment on a draft or other negotiable instrument is due upon presentation or demand.


Australia Group

The Australia Group, AG, is an informal forum through which 20 industrialized nations cooperate to curb proliferation of chemical and biological weapons through a supply approach. The AG's first meeting, held at the Australian Embassy in Paris in 1986, was attended by Australia, Canada, Japan, New Zealand, the United States and the ten member nations of the European Union. Membership has expanded to include Norway, Portugal, Spain, Switzerland, Austria and representatives of the European Commission, the European Union's executive arm.


Authority to Pay

An Authority to Pay is an advice stemming from a buyer, addressed through the buyer's bank to the seller, by way of the correspondent of the buyer's bank in the seller's country, authorizing the correspondent bank to pay the seller's drafts for a stipulated amount.


Authority to Purchase

This document is similar to the Authority to Pay in that the authority stems from a buyer and not from a bank. It differs from the Authority to Pay in that under an Authority to Purchase the drafts are drawn directly on the buyer. They are purchased by the correspondent bank, usually with full recourse against the drawer.


Automated Broker Interface

ABI, a part of Customs' Automated Commercial System, permits transmission of data pertaining to merchandise being imported into the US Qualified participants include brokers, importers, carriers, port authorities and independent data processing companies referred to as service centers.


Automated Clearinghouse

The Automated Clearinghouse (ACH) is a feature of the Automated Broker Interface which is a part of Customs' Automated Commercial System. The ACH combines elements of bank lock box arrangements with electronic funds transfer services to replace cash or check for payment of estimated duties, taxes and fees on imported merchandise.


Automated Commercial System

The Customs Service's Automated Commercial System, ACS, is a joint public-private sector computerized data processing and telecommunications system linking customhouses, members of the import trade community and other government agencies with the Customs computer.

Trade users file import data electronically, receive needed information on cargo status and query Customs files to prepare submissions. Duties, taxes and fees may be paid by electronic statement, through a Treasury-approved clearinghouse bank. ACS contains the import data used by Census to prepare US foreign trade statistics. ACS began operating in 1984 and includes: (a) the Automated Broker Interface, (b) the Census Interface System, (c) the Automated Manifest Systems, (d) the Bond System, (e) the In-Bond System, (f) the Cargo Selectivity System, (g) the Line Release System, (h) the Collections System, (i) the Security System, (j) the Quota System, (k) the Entry Summary Selectivity System, (l) the Entry Summary System, (m) the Automated Information Exchange, (n) the Antidumping/Countervailing Duty System, (o) the Firms system, (p) the Liquidation System, (q) the Drawback System, (r) the Fines, Penalties and Forfeitures System, and (s) the Protest System.


Automated Information Exchange

AIES, a part of Customs' Automated Commercial System, allows for exchange of classification and value information between field units and headquarters.


Automated Manifest Systems

AMS, a part of Customs' Automated Commercial System (ACS) controls imported merchandise from the time a carrier's cargo manifest is electronically transmitted to Customs until control is relinquished to another segment of the ACS.


B/L

Bill of Lading.


BAD

See African Development Bank (AfDB).


BCIE

Central American Bank for Economic Integration.


BDEAC

Central African States Development Bank.


BEET

Business Executive Enforcement Team.


BENELUX

Belgium, Netherlands, Luxembourg Economic Union.


BFC

Business Facilitation Center.


BHC

Bank Holding Company; British High Commission.


BIA

Best Information Available.


BID

See Inter-American Development Bank.


BIE

Bureau of International Expositions.


BIO

Business Information Office.


BIS

Bank for International Settlements. Twenty-nine members with the goal of promoting cooperation among central banks in international financial settlements.


BIT(s)

Bilateral Investment Treaty(ies).


BLEU

Belgium-Luxembourg Economic Union.


BOAD

See West African Development Bank (WADB).


BOP

Balance of Payments.


BOT

Balance of Trade.


BRITE

Basic Research in Industrial Technologies in Europe.


BSA

Bilateral Steel Agreement.


BSP

Business Sponsored or Between Show Promotion.


BXA

Bureau of Export Administration.


Balance of Payments

The balance of payments is a statistical summary of international transactions. These transactions are defined as the transfer of ownership of something that has an economic value measurable in monetary terms from residents of one country to residents of another. The transfer may involve:

(a) goods, which consist of tangible and visible commodities or products;

(b) services, which consist of intangible economic outputs, which usually must be produced, transferred and consumed at the same time and in the same place;

(c) income on investments, and

(d) financial claims on, and liabilities to, the rest of the world, including changes in a country's reserve assets held by the central monetary authorities.

Generally, a transaction is the exchange of one asset for another -- or one asset for several assets -- but it may also involve a gift, which is the provision by one party of something of economic value to another party without something of economic value being received in return.

International transactions are recorded in the balance of payments on the basis of the double-entry principle used in business accounting, in which each transaction gives rise to two offsetting entries of equal value so that, in principle, the resulting credit and debit entries always balance. Transactions are generally valued at market prices and are, to the extent possible, recorded when a change of ownership occurs. Transactions in goods, services, income and unilateral transfers constitute the current account, and transactions in financial assets and liabilities constitute the capital account.


Bank Affiliate Export Trading Company: An Export Trading Company partially or wholly owned by a banking institution as provided
Bank Affiliate Export Trading Company

An Export Trading Company partially or wholly owned by a banking institution as provided under the US Export Trading Company Act.


Bank Draft

Draft payable on demand and drawn by or on behalf of the bank itself; it is regarded as cash and cannot be returned unpaid.


Bank Guarantee

An assurance, obtained from a bank by a foreign purchaser; that the bank will pay an exporter up to a given amount for goods shipped if the foreign purchaser defaults. (See Letter of Credit.)


Bank Holding Company

Any company which directly or indirectly owns or controls, with power to vote, more than five percent of voting shares of each of one or more other banks.


Bank Release

Negotiable time draft drawn on and accepted by a bank which adds its credit to that of an importer of merchandise.


Banker's Acceptance

A time draft or bill of exchange drawn on and accepted by a bank. The bank assumes an unconditional obligation to pay the face amount. Depending on the bank's creditworthiness, the acceptance becomes a financial instrument which can be discounted.


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

Draft payable on demand and drawn by or on behalf of the bank itself; it is regarded as cash and cannot be returned unpaid.


Barratry

Negligence or fraud on the part of a ship's officers or crew resulting in injury or loss to the ship's owner.


Barter

Trade in which merchandise is exchanged directly for other merchandise or services without use of money.


Basel Convention

The Basel Convention restricts trade in hazardous waste, some non-hazardous wastes, solid wastes and incinerator ash. It was adopted in 1989 by a United Nations-sponsored conference of 116 nations in Basel, Switzerland. Twenty nations must ratify the treaty before it goes into effect.


Beneficiary

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


Big Seven

Nickname for the Group of Seven.


Big Six

Canada, France, Germany, Italy, Japan, UK. Not to be confused with the Group of Six.


Bilateral Investment Treaty

A bilateral investment treaty, BIT, ensures US investments abroad of national or most favored nation treatment; prohibits the imposition of performance requirements; and allows the American investor to engage top management in a foreign country without regard to nationality. BITs ensure the right to make investment-related transfers and guarantee that expropriation takes place only in accordance with accepted international law. BITs also guarantee access by an investing party to impartial and binding international arbitration for dispute settlement.


Bilateral Steel Agreements

The US negotiated ten bilateral steel agreements, BSAs, with major steel trading partners. Under BSAs, the governments agreed to reduce or eliminate state intervention -- that is, domestic subsidies and market barriers.


Bill of Exchange

This is the same as a draft (draft is the common name in the US; under law, this document is known, however, as a bill of exchange). A bill of exchange is a written order for a certain sum of money to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the bill). Thus, it is the creditor, or the drawer, who actually draws, or in other words fills out, the bill of exchange as to the amount due and the date on which it is to be paid and addresses it to the debtor, the drawee. The bill of exchange has to be accompanied by an instruction letter which may be obtained from one's bank on request.


Bill of Lading

Bills of lading are contracts between the owner of the goods and the carrier. There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is used for letter of credit transaction. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.


Bill of Sale

A bill of sale confirms the transfer of ownership to certain goods to another person (i.e., in return for money paid or loaned).


Biological Agents

Several classes of biological agents have been identified according to their degree of pathogenic hazard and are unilaterally controlled by the United States. Applications to export certain biological agents are referred to the Department of State and the intelligence community on a case-by-case basis.


Bond System

The Bond System, a part of Customs' Automated Commercial System, provides information on bond coverage. A Customs bond is a contract between a principal, usually an importers, and a surety which is obtained to insure performance of an obligation imposed by law or regulation. The bond covers potential loss of duties, taxes and penalties for specific types of transactions. Customs is the contract beneficiary.


Bonded Exchange

Exchange which cannot be freely converted into other currencies.


Bonded Warehouse

A warehouse authorized by customs authorities for storage or manufacture of goods on which payment of duties is deferred until the goods enter customs territory. The goods are not subject to duties if reshipped to foreign points.


Bound Rate

Most-favored-nation tariff rate resulting from WTO negotiations.


Box

Refers to an ocean-freight container.


British High Commission

The term British High Commission (BHC, or High Commission, HC, or Her Majesty's High Commission, HMHC) is used in lieu of "embassy" in Commonwealth countries.


Brussels Tariff Nomenclature

A once widely used international tariff classification system which preceded the Customs Cooperation Council Nomenclature (CCCN) and the Harmonized System Nomenclature (HS).


Bulk-Freight Container

Refers to a container which allows bulk commodities to be grasped by roll loading hatches and which has front wall discharge hatch.


Bureau of International Expositions: The Bureau of International Expositions, BIE, is an international organization established
Bureau of International Expositions

The Bureau of International Expositions, BIE, is an international organization established by the Paris Convention of 1928 to regulate the conduct and scheduling of international expositions in which foreign nations are officially invited to participate. The BIE divides international expositions into different categories and types and requires each member nation to observe specified minimum time intervals in scheduling each of these categories and types of operations. Under BIE rules, member nations may not ordinarily participate in an international exposition unless the exposition has been approved by the BIE. The US became a member of the BIE in 1968. Federal participation in a recognized international exposition requires specific authorization by the Congress, based on the President's finding that participation is in the national interest.


Business Executive Enforcement Team

The Business Executive Enforcement Team, BEET, provides a channel for private sector executives to discuss export control enforcement matters with the Bureau of Export Administration.


Business Facilitation Office

This is usually a booth with a reference desk with product catalogs manned by the US Embassy Commercial Section or a qualified contractor to assist fair visitors or buyers searching for US products or services at an international trade fair.


Business Information Office

The business information office or center is a Commerce post or contract-staffed commercial reference facility, usually at a scheduled international trade exhibition.


C

Consulate or Commonwealth.


C & F or CFR

Cost and Freight. A pricing term indicating that the cost of the goods and the freight charges are included in the quoted price. Buyer arranges for and pays insurance.


C & I

Cost and Insurance. A pricing term indicating that the cost of the goods and the insurance are included in the quoted price. The buyer is responsible for the freight charges.


CACM

Central American Common Market.


CAD

See Cash Against Documents.


CAD/CAM

Computer Aided Design/Computer Aided Manufacturing


CAEU

Council of Arab Economic Unity.


CAP

Common Agricultural Policy; Country Action Plan.


CAR

Commercial Activity Report.


CARICOM

Caribbean Common Market.


CASE

Council of American States in Europe


CBD

Commerce Business Daily.


CBERA

Caribbean Basin Economic Recovery Act.


CBI

Caribbean Basin Initiative.


CBW

Chemical and Biological Weapons.


CCC

Canadian Commercial Corporation; Commodity Credit Corporation; Customs Cooperation Council.


CCCN

Customs Cooperation Council Nomenclature.


CCL

Commerce Control List (formerly: Commodity Control List).


CD-ROM

Compact Disc-Read Only Memory.


CDB

Caribbean Development Bank. Twenty regional members and five nonregional members with the goal of promoting economic development and cooperation.


CDT

Center for Defense Trade.


CEA

Council of Economic Advisors.


CEAO

West Africa Economic Community (Communaute Economique de l'Afrique).


CEE

Central and Eastern Europe.


CEEAC

Economic Community of Central African States.


CEMA

Council for Mutual Economic Assistance.


CEN

European Committee for Standardization.


CENELEC

European Committee for Electrotechnical Standardization.


CEPGL

Economic Community of the Great Lakes Countries.


CEPT

European Conference of Postal & Telecommunications Administrations


CERN

European Center for Nuclear Research (Centre Europeen de Recherche Nucleaire).


CET

Common External Tariff.


CFIUS

Committee on Foreign Investment in the US.


CFR

Code of Federal Regulations; Cost and Freight.


CFS

Country Focused Seminar.


CFTA

Canadian Free Trade Agreement.


CG

Contadora Group. Also Consul General, Consulate General.


CHG

Charge d'Affairs; US Custom House Guide.


CIA

See Cash In Advance.


CIF

Cost, Insurance, Freight. A pricing term indicating that the cost of the goods, insurance and freight are included in the quoted price.


CIF & C

Same as CIF, but also includes commission.


CIF & E

Same as CIF but also includes exchange of monies from US to foreign currency.


CIMS

Commercial Information Management System.


CIP

Commodity Import Program.


CIP_1
CIP

Carriage and Insurance Paid To (destination). The freight charges and the cargo insurance to the destination are paid by the seller.


CIS

Commonwealth of Independent States.


CISG

Convention on Contracts for the International Sale of Goods.


CIT

Court of International Trade.


CITA

Committee for the Implementation of Textile Agreements.


CITES

Convention on International Trade in Endangered Species in Wild Fauna and Flora.


CMA

Common Monetary Agreement.


CMEA

Also CEMA. Council for Mutual Economic Assistance (abolished January 1, 1991).


CMP

Country Marketing Plan.


CNUSA

Commercial News USA.


COCOM

See Coordinating Committee on Multilateral Export Controls.


COE

Council of Europe.


COFC

Container on a flat car (railway flat car).


COM

Chief of Mission; Cost of Manufacture.


COMECON

Council for Mutual Economic Assistance.


COMPRO

COMPRO (Commercial Procedure) is an on-line trade data retrieval system maintained by the International Trade Administration for the government trade community (ITA, USTR, ITC and other executive branch agencies). COMPRO includes:

US foreign trade data (detailed US merchandise trade statistics compiled by Census);

UN trade data (trade statistics of 170 countries;

International Monetary Fund and World Bank databases (international finance, direction of trade and developing country debt).

COMPRO maintains gateways to: (a) LABSTAT, a product of the Bureau of Labor Statistics and (b) OBADATA, the Economics and Statistics Administration's industrial statistics.


COP

Cost of Production.


CP:
CP

Colombo Plan.


CPE:
CPE

Centrally Planned Economy.


CPT:
CPT

Carriage Paid To (destination). The freight charges to the destination are paid by the seller. The buyer assumes responsibility for any costs and risks as soon as the goods are delivered to the carrier.


CSCE:
CSCE

Conference on Security & Cooperation in Europe.


CSIS:
CSIS

Center for Strategic & International Studies.


CSP:
CSP

Common Standard Level of Effective Protection.


CSS:
CSS

Comparison Shopping Service.


CT:
CT

Countertrade.


CTD:
CTD

Committee on Trade & Development.


CTF:
CTF

Certified Trade Fair .. Certified Event.


CTP:
CTP

Composite Theoretical Performance.


CV:
CV

Constructed Value.


CVD:
CVD

Countervailing Duty.


CWO:
CWO

See Cash With Order.


CXT:
CXT

Common External Tariff.


Cable Address

A code word of less than 10 letters, registered annually with the Central Bureau of Registered Addresses, used in lieu of the entire name and address of a firm receiving or sending cablegrams in order to reduce the number of words required in a cablegram.


Cairns Group

The Cairns Group, established in 1986, is an informal association of agricultural exporting countries. Members include: Argentina, Australia, Brazil, Canada, Chile, Colombia, Hungary, Indonesia, Malaysia, New Zealand, Philippines, Thailand and Uruguay.


Calvo Doctrine

The Calvo Doctrine (or principle) holds that jurisdiction in international investment disputes lies with the country in which the investment is located; thus, the investor has no recourse but to use the local courts. The principle, named after an Argentinean jurist, has been applied throughout Latin America and other areas of the world.


Canadian Commercial Corporation

By serving as the prime contractor in government-to-government sales transactions, the CCC facilitates exports of a wide range of goods and services from Canadian sources. In response to requests from foreign governments and international agencies for individual products or services, CCC identifies Canadian firms capable of meeting the customer's requirements, executes prime as well as back-to-back contracts, and follows through with contract management, inspection, acceptance and payment.


Capital Account

See Balance of Payments.


Cargo Selectivity System

The Cargo Selectivity System, a part of Customs' Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments of risk by filer, consignee, tariff number, country of origin and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper.


Caribbean Basin Economic Recovery Act

The CBERA affords nonreciprocal tariff preferences to developing countries in the Caribbean Basin area to aid their economic development and to diversity and expand their production and exports. The CBERA applies to merchandise entered, or withdrawn from warehouse for consumption, on or after January 1, 1984. This tariff preference program has no expiration date.


Caribbean Basin Initiative

The CBI is an inter-American program to increase economic aid and trade preferences for twenty-eight states of the Caribbean region. The Caribbean Basin Economic Recovery Act of 1983 provided for twelve years of duty-free treatment of most goods produced in the Caribbean region. The Initiative was extended permanently (CBI II), by the Customs & Trade Act of 1990. The 23 countries include Antigua and Barbuda, the Bahamas, Barbados, Belize, the British Virgin Islands, Costa Rica, Dominica, the Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Honduras, Jamaica, Montserrat, the Netherlands Antilles, Nicaragua, Panama, St. Christopher-Nevis, St. Lucia, St. Vincent & the Grenadines and Trinidad & Tobago. The following countries may be eligible for CBI benefits but have not formally requested designation: Anguilla, Cayman Islands, Suriname and the Turks & Caicos Islands.


Caribbean Common Market

The Caribbean Common Market, CARICOM, is composed of 13 English speaking Caribbean nations. Members include Antigua & Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent & the Grenadines and Trinidad & Tobago.


Carnets

Customs documents permitting the holder to carry or send sample merchandise temporarily into certain foreign countries without paying duties or posting bonds.


Carriage Paid To

Carriage paid to (CPT) and carriage and insurance paid to (CIP) a named place of destination. Used in place of CFR and CIF, respectively for shipment by modes other than water.


Carrier Certificate

Also known as Carriers Certificate and Release Order, this document advises Customs of shipment details such as ownership and port of lading. It is also used by the carrier to certify that the entity named in the certificate is the owner/consignee of the cargo.


Cartage

Movement of freight via trucking, draying or carting.


Cartel

An organization of independent producers formed to regulate the production, pricing or marketing practices of its members in order to limit competition and maximize their market power.


Cash Against Documents (CAD)

A method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.


Cash In Advance (CIA)

A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods are built to order, like specialized machinery.


Cash Letter of Credit

A letter addressed by a bank to its correspondent bank to make funds available to the party named in the letter. The sum is deposited within the bank before letter is issued.


Cash With Order (CWO)

A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.


Catalog & Video/Catalog Exhibitions

These promotions are low-cost exhibits of US firms' catalogs and videos which offer small, less-experienced companies an opportunity to test overseas markets for their products without travel. The International Trade Administration promotes exhibitions, provides staff fluent in the local language to answer questions and forwards all trade leads to participating firms.


Category Groups

Groupings of controlled products. See Export Control Classification Number.


Cellular Vessel

A vessel designed with internal ribbing to permit the support of stacked containers.


Census Interface System

The Census Interface System, a part of Customs' Automated Commercial System, includes edits and validations provided by the Bureau of the Census to allow for the accurate and timely collection and submission of entry summary data. Census Interface is accomplished through Automated Broker Interface entry summary transmissions.


Central African Customs and Economic Union

Six member states (Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, Gabon) with the goal of promoting the establishment of a Central African Common Market. Also UDEAC.


Central African States Development Bank

Nine member states (UDEAC plus France, Germany and Kuwait) with the goal of providing loans for economic development. Also BDEAC.


Central American Bank for Economic Development

Five member states (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) with the goal of promoting economic integration and development. Also BCIE.


Central American Common Market

In 1991, the governments of Honduras, Guatemala, El Salvador, Nicaragua and Costa Rica agreed to establish a new common market in Central America. The common market will cover all products traded within the region by the end of 1992. A second step toward regional integration will be the establishment of a common external tariff. Panama is becoming progressively more involved in the regional integration discussions.


Certificate of Inspection

A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment. Preshipment inspection is a requirement for importation of goods into many developing countries.


Certificate of Manufacture

A document (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

Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local chamber of commerce. A certificate may be required even though the commercial invoice contains the information.


Certified Trade Fair Program

The Department of Commerce Certified Trade Fair Program is designed to encourage private organizations to recruit new-to-market and new-to-export US firms to exhibit in trade fairs overseas. To receive certification, the organization must demonstrate: (1) the fair is a leading international trade event for an industry and (2) the fair organizer is capable of recruiting US exhibitors and assisting them with freight forwarding, customs clearance, exhibit design and setup, public relations and overall show promotion. The show organizer must agree to assist new-to-export exhibitors as well as small businesses interested in exporting.

In addition to the services the organizer provides, the Department of Commerce will:

Assign a Washington coordinator;

siness information office, which provides meeting space, translators, hospitality and assistance from US exhibitors and foreign customers;

Help contact buyers, agents, distributors and other business leads and provide marketing assistance;

Provide a press release on certification.


Chaebol

Chaebol are Korean conglomerates which are characterized by strong family control, authoritarian management and centralized decision making. Chaebol dominate the Korean economy, growing out of the takeover of the Japanese monopoly of the Korean economy following World War II. Korean government tax breaks and financial incentives emphasizing industrial reconstruction and exports provided continuing support to the growth of Chaebols during the 1970s and 1980s. In 1988, the output of the 30 largest Chaebol represented almost 95% of Korea's gross national product.


Charges, Statement of

This document is a complete detailed statement of all charges sent to the importer in order, to show how the sum total of the charges debited to him has been arrived at. The statement of charges normally deals with charges incurred by the shipper in connection with the shipment to the importer and which are outside of the quoted or agreed price for services to be performed by the seller.


Charter Party

A written contract between the vessel owner and a charterer, who rents use of the vessel or part of its freight space.


Chassis

The frame on which inland containers can be transported.


Chemical/Biological Weapons

The Department of Commerce maintains foreign policy export controls on certain chemical precursors useful in chemical warfare. Through the Australia Group (AG), the United States cooperates with other nations in controlling chemical weapons proliferation. The AG developed a Core List of nine chemicals (not to be confused with the CoCom "Core List") considered essential to curbing the development of chemical weapons. The AG also developed a Warning List which identifies 41 precursors which are useful for chemical weapons development. The AG also provides the forum in which the member countries share information concerning the activities of non-member countries where the proliferation of these weapons is of concern, including entities that are seeking chemical precursors and related items.

The United States controls all 50 chemical precursors designated by the AG as useful in chemical weapons production. The nine core list chemicals are controlled worldwide, except to the members of the AG and NATO. The remaining 41 chemicals are controlled to selected countries.

The US also maintains unilateral controls on certain biological organisms and requires an individual validated license to all destinations except Canada. Commerce regulations are designed in the form of a "negative" list. The list identifies those organisms that have been determined to be of no or minimal level of hazard. Any organism that is not included on the list is controlled. The Department of Commerce requires individual validated licenses for the export of Class 2, 3 and 4 organisms to all destinations except Canada. (The higher the class, the greater the toxicity.) License applications are referred to the State Department for review and recommendation. Approval or denial is determined by analysis of the application and intelligence input.


China Green Line

The China green line describes the level of technology below which a CoCom member country can unilaterally approve an export license application requiring only notification to CoCom in Paris. This level of technology is individually defined in notes to the Core List. The China green line is a substantially higher level of technology than the CoCom AEN level.


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.


Collecting Bank

Bank which receives the draft for collection.


Collection Papers

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


Collections System

The Collections System, a part of Customs' Automated Commercial System, controls and accounts for the billions of dollars in payments collected by Customs each year and the millions in refunds processed each year. Daily statements are prepared for the automated brokers who select this service. The Collections System permits electronic payments of the related duties and taxes through the Automated Clearinghouse capability. Automated collections also meet the needs of the importing community through acceptance of electronic funds transfers for deferred tax bills and receipt of electronic payments from lockbox operations for Customs bills and fees.


Colombo Plan

Twenty-six member states with the goal of promoting economic and social development in Asia and the Pacific.


Combination Export Manager

A firm which acts as an export sales agent for more than one US manufacturer, all of which are noncompetitive with the others.


Comfort Letter

In financial transactions, a parent company's notification of its intention to support the obligations of its subsidiary(s).


Commerce Business Daily

CBD is the Commerce Department's daily newspaper which lists government procurement invitations and contract awards, including foreign business opportunities and foreign government procurements.


Commerce Control List

In 1991, the Bureau of Export Administration published the new Commerce Control List (CCL) which replaced the former Commodity Control List. The CCL includes all items -- commodities, software and technical data -- subject to BXA export controls and incorporates not only the national security controlled items agreed to by CoCom (the "core" list), but also items controlled for foreign policy and other reasons. The list adopts a totally new method of categorizing commodities and is divided into 10 general categories: (0) nuclear materials, facilities, and equipment [and miscellaneous items], (1) materials, chemicals, "microorganisms" & "toxins," (2) materials processing, (3) electronics, (4) computers, (5) telecommunications and "information security," (6) sensors and lasers, (7) navigation and avionics, (8) marine and (9) propulsion systems, space vehicles and related equipment.


Commercial Activity Report

The Commercial Activity Report, CAR, is prepared annually by the economic and commercial sections of the US embassies, covering over 100 countries where the Department of Commerce is not represented. The CAR assesses the country's political, economic and business activities, and market potential and strategies for increasing US sales.


Commercial Information Management System

The Commercial Information Management System, CIMS, is a PC-based system used by International Trade Administration staff in export counseling. CIMS is a trade-related application using National Trade Data Bank CD-ROMs to disseminate market research and international economics data to US&FCS domestic offices and overseas posts. The system includes data on American and foreign traders and supports local collection and update of information on business contacts.


Commercial Invoice

The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods for the assessment of customs duties and are also used to prepare consular documentation. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used and other characteristics.


Commercial News USA

Commercial News USA, CNUSA, is an International Trade Administration (ITA) fee-based magazine, published 10 times per year. CNUSA provides exposure for US products and services through an illustrated catalog and electronic bulletin boards. The catalog is distributed through US embassies and consulates to business readers in 140 countries. Copies are provided to international visitors at trade events around the world.

The CNUSA program covers about 30 industry categories and focuses on products that have been on the US market for no longer than three years. To be eligible, products must be at least 51 percent US parts and 51 percent US labor. The service helps US firms identify potential export markets and make contacts leading to representation, distributorships, joint venture or licensing agreements, or direct sales.


Commercial Officers

Commercial officers are embassy officials who assist US business through arranging appointments with local business and government officials, providing counsel on local trade regulations, laws and customs; identifying importers, buyers, agents, distributors and joint venture partners for US firms; and other business assistance. At larger posts, International Trade Administration staff perform these functions. At smaller posts, commercial interests are represented by State's economic officers. See Economic Officers, Foreign Service.


Commercial Paper

Draft and/or other items submitted for collection (as used in international trade).


Commercial Risk

Risk of foreign purchaser's ability to pay.


Commercial Treaty

An agreement between two or more countries setting forth the conditions under which business between the countries may be transacted. May outline tariff privileges, terms on which property may be owned, the manner in which claims may be settled, etc.


Commission for Social Development

An ECOSOC organization dealing with social development programs consisting of 31 member states selected on a rotating basis.


Commission on Human Rights

An ECOSOC organization dealing with human rights consisting of 43 members selected on a rotating basis.


Commission on Narcotic Drugs

An ECOSOC organization dealing with illicit drugs consisting of 38 members selected on a rotating basis from all regions with an emphasis on producing and processing countries.


Commission on the Status of Women

An ECOSOC organization dealing with women's rights consisting of 32 members selected on a rotating basis.


Committee on Foreign Investment in the United States

The Committee on Foreign Investment in the United States, CFIUS, was created in 1975 to provide guidance on arrangements with foreign governments for advance consultations on prospective major foreign governmental investments in the United States, and to consider proposals for new legislation or regulation relating to foreign investment.

CFIUS has eight members: Treasury (the chair), State, Defense, Commerce, the Council of Economic Advisors, the US Trade Representative, the Attorney General, and the Office of Management and Budget. (See Foreign Investment.)


Committee on Trade & Development

The CTD was established in 1965 to consider how the General Agreement on Tariffs & Trade (GATT) can aid the economic development of Less Developed Country (LDC) contracting parties (that is, LDC members).


Commodity Control List

See Commerce Control List.


Commodity Credit Corporation

The CCC is a government corporation controlled by the Department of Agriculture which provides financing and stability to the marketing and exporting of agricultural commodities.


Common Agricultural Policy

The CAP is a set of regulations by which members states of the European Union (EU) seek to merge their individual agricultural programs into a unified effort to promote regional agricultural development, fair and rising standards of living for the farm population, stable agricultural markets, increased agricultural productivity and methods of dealing with food supply security. Two of the principal elements of the CAP are the variable levy (an import duty amounting to the difference between EU target farm prices and the lowest available market prices of imported agricultural commodities) and export restitutions, or subsidies, to promote exports of farm goods that cannot be sold within the EU at the target prices.


Common Carrier

An individual partnership or corporation that transports persons or goods for compensation.


Common External Tariff

A uniform tariff adopted by a customs union to be assessed on imports entering the union territory from countries outside the union; abbreviated: CET or CXT.


Common Market

A common market (as opposed to a free trade area) has a common external tariff and may allow for labor mobility and common economic policies among the participating nations. The European Union is the most notable example of a common market.


Common Monetary Agreement

South Africa, Lesotho and Swaziland are members of the CMA under which they apply uniform exchange control regulations to ensure monetary order in the region. Funds are freely transferable among the three countries and Lesotho and Swaziland have free access to South African capital markets. Lesotho also uses the South African currency, the rand. The CMA was formed in 1986 as a result of the renegotiation of the Rand Monetary Agreement (RMA) which was originally formed in 1974 by the same member countries.


Common Standard Level of Effective Protection

The common standard level of effective protection, CSP, refers to the minimum shared standards between the US and CoCom members for requiring export licenses.


Commonwealth

A commonwealth is a free association of sovereign independent states that has no charter, treaty or constitution. The association promotes cooperation, consultation and mutual assistance among members. The British Commonwealth, the most notable example, includes 48 members and 2 special members.


Commonwealth of Independent States

The CIS was established in 1991 as an association of 11 republics of the former Soviet Union. The members include: Russia, Ukraine, Belarus (formerly Byelorussia), Moldova (formerly Moldavia), Armenia, Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Kazakhstan and Kirgizstan (formerly Kirghiziya). Georgia is presently an "observer;" the Baltic states did not join.


Communications Satellite Corporation

COMSAT was established in 1963 under provision of the Communications Satellite Act of 1962. The legislation directed that COMSAT establish the world's first commercial international satellite communications system. The Act also stipulated that the company operate as a shareholder-owned "for-profit" corporation. COMSAT represents the US in International Telecommunications Satellite Organization.


Comparison Shopping Service

The Comparison Shopping Service, CSS, is a fee-based International Trade Administration service that provides firms with key marketing, pricing and foreign representation information about their specific products. Overseas staff conduct on-site interviews to provide data in nine marketing areas about the product, such as sales potential in the market, comparable products, distribution channels, going price, competitive factors and qualified purchasers.


Compensation

Within WTO (formerly GATT), the principle that any country that raises a tariff above its "bound rate" or otherwise impairs a trade concession must lower other tariffs or make other trade concessions to compensate countries whose exports are affected.


Composite Theoretical Performance

Computer hardware export license requirements are evaluated according to Composite Theoretical Performance (CTP), which replaced the former Processing Data Rate (PDR) parameter. CTP is measured in Million Theoretical Operations Per Second (MTOPS). CTP was developed by the US as a new parameter, and was adopted by CoCom during the Core List negotiations, because PDR was not applicable to certain modern computer architectures such as vector processors, massively parallel processors and array processors. CTP is designed to measure all of these architectures, as well as signal processing equipment.


Compound Duty

Tax imposed on imported merchandise based on a percentage of value and also on the net weight or number of pieces, etc. Also see Duty.


Conference

An association of ship owners operating in the same trade route.


Conference on Security & Cooperation in Europe

CSCE was established in 1991 as a successor to the Eastern bloc's Council for Mutual Economic Assistance (CMEA or COMECON). CSCE administers residual tariffs and quotas and relations with other organizations.


Confirmed Letter of Credit

A letter of credit, issued by a foreign bank, whose validity has been confirmed by an American bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.


Confirming

Confirming is a financial service in which an independent company confirms an export order in the seller's country and makes payment for the goods in the currency of that country. Among the items eligible for confirmation are the goods; inland, air and ocean transportation costs; forwarding fees; custom brokerage fees; and duties. Confirming permits the entire export transaction from plant to end user to be fully coordinated and paid for over time.


Consignee

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


Consignee Marks

A symbol placed on packages for export for identification purposes, generally consisting of a triangle, square, circle, diamond, cross, with letters and/or numbers as well as port discharge.


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 sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.


Consignor

The person or company shown on the bill of lading as the shipper.


Consolidation

The combination of many small shipments into one container, often with more than one destination/consignee.


Constructed Value

A means of determining fair or foreign market value when sales of such or similar merchandise do not exist or, for various reasons, cannot be used for comparison purposes. The "constructed value" consists of the cost of materials and fabrication or other processing employed in producing the merchandise, general expenses of not less than 10 percent of material and fabrication costs and profit of not less than 8 percent of the sum of the production costs and general expenses. To this amount is added the cost of packing for exportation to the United States.


Consul

A government official residing in a foreign country who is charged with the representation of the interests of his country and its nationals.


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.


Consular Officers

These are US embassy officials who extend to US citizens and their property abroad the protection of the US Government. They maintain lists of local attorneys, act as liaison with police and other officials and have the authority to notarize documents.


Consumption Entry

Required by US Customs for goods entering the United States. Information on the form includes cargo origin and description and estimated duties, which must be paid at the time the document is filed.


Container

A uniform, sealed, reusable metal "box" in which merchandise is shipped by vessel, truck, or rail. Standard lengths include 10, 20, 30 and 40 feet (40 foot lengths are generally able to hold about 40,000 pounds). Containers of 45 and 48 feet are also used, as well as containers for shipment by air.


Container Equivalents (FEU/TEU)

40-foot/20-foot equivalents. Standard conversion recognized internationally, used to compare the number (not weight) of containers a lot can accommodate.


Container Load

Sufficient merchandise to fill a container, whether by bulk or weight.


Container Pool

An agreement between transporters that allows for an available supply of containers.


Contents
Glossary of International Trade Terms

Use the index to search for definitions for words and acronyms used in international trade.


Contract

This document is an agreement between two or more persons or organizations to do or perform or otherwise carry out certain terms, conditions and actions. It is generally a legally binding document.


Contracting Parties

Contracting parties are the signatory countries to the WTO (formerly GATT). These countries have accepted the specified obligations and privileges of the WTO agreement.


Convention on Contracts for the International Sale of Goods

The UN Convention on Contracts for the International Sale of Goods, CISG, became the law of the United States in 1988. CISG establishes uniform legal rules governing formation of international sales contracts and the rights and obligations of the buyer and seller. The CISG applies automatically to all contracts for the sale of goods between traders from two different countries that have both ratified the CISG, unless the parties to the contract expressly exclude all or part of the CISG or expressly stipulate a law other than the CISG.


Conventional Arms Transfer

The transfer of non-nuclear weapons, aircraft, equipment and military services from supplier states to recipient states. US arms are transferred by grants as in the Military Assistance Program (MAP); by private commercial sales; and by government-to-government sales under Foreign Military Sales (FMS). MAP provides defense articles and defense services to eligible foreign governments on a grant basis.

FMS provides credits and loan repayment guarantees to enable eligible foreign governments to purchase defense articles and defense services.


Convertible Currency

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


Coordinating Committee on Multilateral Export Controls

COCOM is an informal organization that cooperatively restricts strategic exports to controlled countries. CoCom controls three lists: (a) the international industrial list (synonymous with the "dual-use" or "core" list), (b) the international munitions list, and (c) the atomic energy list. The 17 CoCom members are: Australia, Belgium, Canada, Denmark, France, the Federal Republic of Germany, Greece, Italy, Japan, Luxembourg, the Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom and the United States.

CoCom controls exports at three levels, depending on the item and the proposed destination. At the highest or "general exception" level, unanimous approval by CoCom members is necessary. At the next level, "favorable consideration," there is a presumption of approval; the export may be made if no CoCom members objects within 30 days of submission to CoCom. At the lowest level, "national discretion" (also called "administrative exception"), a member nation may approve the export on its own, but CoCom must be notified after the fact.


Core List

East-West controls are based largely on CoCom's core list, which replaces the old industrial list, effective September 1991. The core list includes items in ten categories: (1) materials, (2) materials processing, (3) electronics, (4) computers, (5) telecommunications and cryptography, (6) sensors, (7) avionics and navigation, (8) marine technology, (9) propulsion systems and transportation equipment, and (0) miscellaneous.


Correspondent Bank

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


Cost and Freight: Cost and Freight (CFR) to a named overseas port of import. Under this term, the seller quotes a price for the
Cost and Freight

Cost and Freight (CFR) to a named overseas port of import. Under this term, the seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The cost of insurance is left to the buyer's account. (Typically used for ocean shipments only. CPT, or carriage paid to, is a term used for shipment by modes other than water.)

Also, a method of import valuation that includes insurance and freight charges with the merchandise values.


Cost of Production

A term used to refer to the sum of the cost of materials, fabrication and/or other processing employed in producing the merchandise sold in a home market or to a third country together with appropriate allocations of general administrative and selling expenses. COP is based on the producer's actual experience and does not include any mandatory minimum general expense or profit as in "constructed value."


Cost, Insurance and Freight

Cost, insurance and freight (CIF) to a named overseas port of import. Under this term, the seller quotes a price for the goods (including insurance), all transportation and miscellaneous charges to the point of debarkation for the vessel. (Typically used for ocean shipments only. CIP, or carriage and insurance paid to, is a term used for shipment by modes other than water.)


Costs of Manufacture

In the context of dumping investigations, the costs of manufacture, COM, is equal to the sum of the materials, labor and both direct and indirect factory overhead expenses required to produce the merchandise under investigation.


Council for Mutual Economic Assistance

The Council for Mutual Economic Assistance, CMEA or COMECON, was established in 1949 ostensibly to create a common market. CMEA was a Soviet initiative with Bulgaria, Czechoslovakia, Hungary, Poland and Romania as founder members. The Council was later joined by the German Democratic Republic, Mongolia, Cuba and Vietnam; Yugoslavia held associate status. CMEA was succeeded in 1991 by the Organization for Economic Cooperation (OIEC).


Council of American States in Europe

This Council is composed of state representatives resident in Europe supportive of official US promotions.


Council of Arab Economic Unity

Eleven member states with the goal of promoting economic integration among Arab nations.


Council of Europe

The COE was established in 1949 to encourage unity and social and economic growth among members, which currently include: Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, the Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey and the United Kingdom.


Council of the Entente

Five member states (Benin, Burkina, Ivory Coast, Niger, Togo) with the goal of promoting economic, social and political coordination.


Council on Security and Cooperation in Europe

Members include: Albania, Armenia, Austria, Azerbaijan, Belgium, Bulgaria, Belarus, Canada, Cyprus, Czechoslovakia, Denmark, Estonia, Finland, France, Germany, Greece, the Holy See, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Russia, San Marino, Spain, Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan, Ukraine, the United Kingdom, the United States, Uzbekistan and Yugoslavia.


Counterpurchase

See Countertrade.


Countertrade

Countertrade is an umbrella term for several sorts of trade in which the seller is required to accept goods or other instruments or trade, in partial or whole payment for its products. Forms include barter, buy-back or compensation, counterpurchase, offset requirements, swap, switch or triangular trade, evidence or clearing accounts.

In counterpurchase (one of the most common forms of countertrade), exporters agree to purchase a quantity of goods from a country in exchange for that country's purchase of the exporter's product. The goods being sold by each party are typically unrelated but are equivalent in value.

In offset, the exporter agrees to use goods and services from the buyer's country in the product being sold. Offsets may be direct or indirect, depending on whether the goods and services are integral parts of the product. In a direct offset, a US manufacturer selling a product uses a component that is made in the purchasing country. In an indirect offset, the exporter would buy products that are peripheral to the manufacture of its product.

In a compensation or buy-back deal, exporters of heavy equipment, technology, or even entire facilities agree to purchase a certain percentage of the output of the facility.

Barter is a simple swap of one good for another. Switch trading is a complicated form of barter, involving a chain of buyers and sellers in different markets.


Countervailing Duty

An extra charge that a country places on imported goods to counter the subsidies or bounties granted to the exporters of the goods by their home governments. The duty is allowed by the Code on Subsidies and Countervailing Duties negotiated at the Tokyo Round, if the importing country can prove that the subsidy would cause injury to domestic industry. US countervailing duties can only be imposed after the International Trade Commission has determined that the imports are causing or threatening to cause material injury to a US industry.


Country Groups

For export control purposes, the Bureau of Export Administration of the US Commerce Department separates countries into seven country groups designated by the symbols: Q, S, T, V, W, Y, Z. (See Export Control Classification Number.)


Country of Export Destination

Country of destination for exports is the country where the goods are to be consumed, further processed, or manufactured, as known to the shipper at the time of exportation. If the shipper does not know the country of ultimate destination, the shipment is credited to the last country to which the shipper knows that the merchandise will be shipped in the same form as when exported.


Country of Origin

Country of origin is the country where the merchandise was grown, mined, or manufactured, in accordance with US Customs Regulations. In instances where the country of origin cannot be determined, transactions are credited to the country of shipment. Certain foreign trade reports show country subcodes to indicate special tariff treatment afforded some imported articles.


Credit Risk Insurance:
Credit Risk Insurance

A form of insurance which protects the seller against loss due to default on the part of the buyer.


Critical Circumstances:
Critical Circumstances

A determination made by the Assistant Secretary for Import Administration as to whether there is a reasonable basis to believe or suspect that there is a history of dumping in the United States or elsewhere of the merchandise under consideration, or that the importer knew or should have known that the exporter was selling this merchandise at less than fair value, and there have been massive imports of this merchandise over a relatively short period. This determination is made if an allegation of critical circumstances is received from the petitioner.


Current Account:
Current Account

See Balance of Payments.


Customhouse Broker:
Customhouse Broker

A person or firm licensed to enter and clear goods through Customs.


Customs Bonded Warehouse:
Customs Bonded Warehouse

A warehouse in the US where imported goods may be stored for a total of three years without the payment of duty or taxes.


Customs Cooperation Council Nomenclature:
Customs Cooperation Council Nomenclature

A customs tariff nomenclature formerly used by many countries, including most European nations but not the United States. It has been superseded by the Harmonized System Nomenclature to which most major trading nations, including the US, adhere.


Customs Cooperation Council:
Customs Cooperation Council

One hundred thirty-seven member states, including the US, Canada and Mexico, with the goal of promoting international cooperation in customs matter.


Customs Import Value:
Customs Import Value

This is the US Customs Service appraisal value of merchandise. Methodologically, the Customs value is similar to FAS value since it is based on the value of the product in the foreign country of origin, and excludes charges incurred in bringing the merchandise to the United States (import duties, ocean freight, insurance and so forth); but it differs in that the US Customs Service, not the importer or exporter, has the final authority to determine the value of the good.


Customs Invoice:
Customs Invoice

A few countries require the use of a special invoice form called a "Customs Invoice" (this is usually in place of a seller's commercial invoice). This form, besides requiring all of the usual data required in a commercial invoice, will have (in many cases) a certificate cf value and/or a certificate of origin.


Customs Union:
Customs Union

An agreement between two or more countries to remove trade barriers with each other and to establish common tariff and nontariff policies with respect to imports from countries outside of the agreement. The European Union is the most well-known example.


Customs Valuation:
Customs Valuation

The determination of the value of imported goods for the purpose of collecting ad valorem duties. This valuation is made by Customs officials, based on the declared value of the goods.


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.


D-RAM

Dynamic Random Access Memory


D/A

Documents Against Acceptance.


D/P

See Documents Against Payment.


DAF

Delivered At Frontier.


DC

Developed countries.


DCM

Deputy Chief of Mission.


DDP

Delivered Duty Paid.


DDU

Delivered Duty Unpaid.


DEC

District Export Council.


DEQ

Delivered Ex Quay (Duty Paid).


DES

Delivered Ex Ship.


DFO

Designated Federal Officer.


DISC

Domestic International Sales Corporation.


DL

Distribution License.


DMP

District Marketing Plan.


DO

District Office.


DTSA

Defense Technology Security Administration.


DTWG

Defense Trade Working Group.


Dangerous Goods

The International Maritime Consultative Organization term for hazardous materials.


Date Draft

A draft which matures a specified number of days after the date it is issued, without regard to the date of acceptance.


Defense Memoranda of Understanding

Defense MOUs are defense cooperation agreements. The MOUs are signed by DOD with allied nations and are related to research, development or production of defense equipment, or reciprocal procurement of defense items.


Defense Technology Security Administration

DTSA is the DOD organization which reviews applications for the export of items that are subject to the dual-use license controls of the Commerce Department. DTSA has about 130-to-140 staff, is located in the Office of the Secretary, and administers DOD technology security policy so that the US is not technologically surprised on the battlefield.

DTSA looks at dual-use, foreign policy, proliferation and munitions controls and reviews applications to export dual-use commodities and munitions. Items subject to proliferation controls are reviewed by the Deputy for Non-Proliferation Policy, International Security Affairs (ISA), Defense. ISA does not have the same independence within Defense that ACDA has within State. Thus, while DTSA and ISA may offer different views within their respective Operating Committees, these differences will be resolved before a dispute comes before the ACEP.


Defense Trade Controls

DTC (formerly the Office of Munitions Control, OMC) at State administers licenses for the export of items that are exclusively, or primarily, of munitions significance. These items are listed in the International Traffic in Arms Regulations (ITAR) and the US Munitions List. In circumstances in which an item may be considered either dual-use or subject to the ITAR, the State Department has the option to assert jurisdiction. In some cases, decisions about jurisdiction are made after an item has been subject to a dual-use license application sent to the Commerce Department. Commerce is never involved in State's process, unless there are matters involving dual-use or issues involving jurisdiction.


Defense Trade Working Group

The Defense Trade Working Group (DTWG), consisting of officials from Commerce, Defense, State and USTR, was established in 1990 to coordinate agency policies and resources in areas concerned with defense expenditures. The group works with industry to identify ways to target industry needs and increase the success of industry export efforts by minimizing government impediments, streamlining procedures and improve the availability of market information. The DTWG includes three subgroups:

1. The Defense Export Market Opportunity Subgroup, chaired by Commerce, which helps implement Administration defense export policy and enhances US government support for US defense exporters;

2. The European Defense Cooperation Subgroup, chaired by State, which coordinates interagency input to US-NATO International Staff for the NATO Council on National Armaments Directors (CNAD) study on defense trade; and

3. The Technology Transfer/Third Country Reexport Subgroup, chaired by Defense, which works with industry to define a more proactive technology transfer regime that could be implemented within the limits of US national security and industrial competitiveness interests.


Deferred Payment Credit

Type of Letter of Credit. Provides for payment some time after presentation of shipping documents by exporter.


Del Credere Agent

Agent who assures remittance.


Delivered at Frontier

"Delivered at Frontier" means that the seller's obligations are fulfilled when the goods have arrived at the frontier -- but before "the customs border" of the country named in the sales contract. The term is primarily intended to apply to goods by rail or road but is also used irrespective of the mode of transport.


Delivered/Duty Paid

While the term "Ex Works" signifies the seller's minimum obligation, the term "Delivered Duty Paid", when followed by words naming the buyer's premises, denotes the other extreme -- the seller's maximum obligation. The term "Delivered Duty Paid" may be used irrespective of the mode of transport. If the parties wish that the seller should clear the goods for import but that some of the cost payable upon the import of the goods should be excluded -- such as value added tax (VAT) and/or other similar taxes -- this should be made clear by adding words to this effect (e.g., "exclusive of VAT and/or taxes").


Delivery Instructions

Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused with Delivery Order, which is used for import cargo.


Demurrage

Excess time taken 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.


Deposit of Estimated Duties

This refers to antidumping duties which must be deposited upon entry of merchandise which is the subject of an antidumping duty order for each manufacturer, producer or exporter equal to the amount by which the foreign market value exceeds the United States price of the merchandise.


Destination Control Statement

Any of various statements which the US Government requires to be displayed on export shipments and which 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. Thus, if the US dollar is devalued in relation to the French franc, one dollar will "buy" fewer francs than before the devaluation.


Devanning

The removal of freight.


Direct Investment

Direct investment is defined in the International Monetary Fund's Balance of Payments Manual as "investment that is made to acquire a lasting interest in an enterprise operating in an economy other than that of the investor, the investor's purpose being to have an effective voice in the management of the enterprise."

In the United States, direct investment is defined for statistical purposes as the ownership or control, directly or indirectly, by one person of 10 percent of more of the voting securities of an incorporated business enterprise or an equivalent interest in an unincorporated business enterprise. Direct investment transactions are not limited to transactions in voting securities. The percentage ownership of voting securities is used to determine if direct investment exists, but once it is determined that it does, all parent-affiliate transactions, including those not involving voting securities, are recorded under direct investment. (See Foreign Direct Investment in the United States Person.)


Disclosure Meeting

An informal meeting at which ITA discloses to parties to the proceeding the methodology used in determining the results of an antidumping investigation or administrative review.


Dismissal of Petition

A determination made by the International Trade Administration that the petition does not properly allege the basis on which antidumping duties may be imposed, does not contain information deemed reasonably available to the petitioner supporting the allegations, or is not filed by an appropriate interested party.


Dispatch

An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter agreement.


Distribution License

The distribution license is a bulk license that allows the holder to make multiple exports of authorized commodities to foreign consignees who are approved in advance by the Bureau of Export Administration. The procedure also authorizes approved foreign consignees to reexport among themselves and to certain approved countries.


Distributor

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


District Export Councils

DECs serve as a voluntary auxiliary of US&FCS district offices to support export expansion activities. There are 51 DECs with 1800 members which help with workshops and also provide counseling to less experienced exporters.


Diversionary Dumping

This occurs when foreign producers sell to a third country market at less than fair value and the product is then further processed and shipped to another country.


Dock Receipt

A dock receipt is used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export.


Document Collections

Documents Against Payment stipulate that the exporter ships goods to the importer without a letter of credit or another form of guaranteed payment. The importer must sign a sight draft before receiving the necessary documents to pick up the goods. Documents Against Acceptance (D/A) are instructions given by a shipper to a bank stating that the documents transferring title to goods should be delivered to the buyer only upon the signing of a time draft. In this manner an exporter extends credit to the importer and agrees to accept payment at a readily determined future date.


Documentary Draft

Draft accompanied by documents having commercial value. Disposition instructions typically accompany the draft.


Documentary Sight Draft

Sight draft accompanied by documents.


Documentary Time Draft

Time draft accompanied by documents.


Documents Against Acceptance

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.


Documents Against Payment

Instructions given by an exporter stating that documents attached to a draft are deliverable to the importer only upon payment of the draft.


Domestic Exports

Exports of domestic merchandise include commodities which are grown, produced, or manufactured in the United States, and commodities of foreign origin which have been changed in the United States, including US Foreign Trade Zones, from the form in which they were imported, or which have been enhanced in value by further manufacture in the United States.


Domestic International Sales Corporation

The predecessor of the Foreign Sales Corporation which took on a new definition as a result of the 1984 Tax Reform Act. DISCs can now provide a tax deferral on up to $10 million of exports so long as the funds remain in export-related investments.


Domicile

The place where a draft or acceptance is made payable.


Door-to-Door

Through delivery of cargo from shipper to receiver.


Downstream Dumping

This occurs when foreign producers sell at below cost to a producer in its domestic market and the product is then further processed and shipped to another country.


Draft

An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a special amount to a named drawer at a fixed or determinable future date.


Draft Bill of Exchange

A written, unconditional order for payment from one person (the drawer) to another (the drawee). It directs the drawee to pay a specified sum of money, in a given currency, at a specific date to the drawer. A Sight Draft calls for immediate payment (on sight) while a Time Draft calls for payments at a readily determined future date.


Drawback

Repayment by a government, in whole or in part, of customs duties assessed on imported merchandise that is subsequently manufactured into a different article or reexported in the same service, or the refund, upon the exportation of an article, or a domestic tax to which it has been subjected.


Drawback System

The Drawback System, a part of Customs' Automated Commercial System, provides the means for processing and tracking of drawback claims.


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.


Drayage Charge

The charge of pick up and delivery by the trucker.


Dual Pricing

The selling of identical products in different markets for different prices. This often reflects dumping practices.


Dumping

The sale of a commodity in a foreign market at less than fair value. Dumping is generally recognized as an unfair because the practice can disrupt markets and injure producers of competitive products in an importing country. Article VI of the WTO (formerly GATT) permits imposition of antidumping duties equal to the difference between the price sought in the importing country and the normal value of the product in the exporting country.

With price-price dumping, the foreign producer can use its sales in the high-priced market (usually the home market) to subsidize its sales in the low-priced export market. The price difference is often due to protection in the high-priced market.

Price-cost dumping indicates that the foreign supplier has a special advantage. Sustained sales below cost are normally possible only if the sales are somehow subsidized.


Dumping Margin

The amount by which the imported merchandise is sold in the United States below the home market or third country price or the constructed value (that is, at less than its "fair value"). For example, if the US "purchase price" is $200 and the fair value is $220, the dumping margin is $20. This margin is expressed as a percentage of the United States price. In this example, the margin is 10 percent.


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 factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).


EAA

Export Administration Act.


EAAA

Export Administration Amendments Act.


EAC

Export Assistance Center.


EADB

East African Development Bank.


EAEC

European Atomic Energy Community.


EAI

Enterprise for the Americas Initiative.


EAR

Export Administration Regulations.


EARB

Export Administration Review Board.


EBB

Economic Bulletin Board.


EBRD

European Bank for Reconstruction & Development.


EC

European Community (now the European Union).


ECA

Economic Commission for Africa.


ECASS

Export Control Automated Support System.


ECAs

Export Credit Agencies.


ECCN

Export Control Classification Number (formerly Export Commodity Classification Number).


ECE

Economic Commission for Europe.


ECLS

Export Contact List Service.


ECO/COM

Economic/Commercial Section.


ECOSOC

Economic and Social Council.


ECOWAS

Economic Community of West African States.


ECSC

European Coal and Steel Community.


ECU

European Currency Unit.


EDC

Export Development Corporation.


EDIFACT

Electronic Data Interchange for Administration, Commerce and Transportation.


EDO

Export Development Office.


EEA

European Economic Area.


EEBIC

Eastern Europe Business Information Center.


EEC

European Economic Community.


EEP

Export Enhancement Program.


EEPROM

Electronically Erasable Programmable Read-Only Memory.


EEZ

Exclusive Economic Zones.


EFTA

European Free Trade Association.


EIB

European Investment Bank.


ELAIN

Electronic License Application and Information Network.


ELAN

Export Legal Assistance Network.


ELVIS

Export License Voice Information System.


EMC

Export Management Company.


EMS

European Monetary System.


EOTC

European Organization for Testing & Certification.


EP

European Parliament.


EPC

Economic Policy Council; European Patent Convention.


EPCI

Enhanced Proliferation Control Initiative.


EPROM

Erasable Programmable Read-Only Memory.


EPS

Export Promotion Services.


EPZ

Export Processing Zone.


ERLC

Export Revolving Line of Credit. (See EWCP)


ERM

Exchange Rate Mechanism.


ESA

European Space Agency.


ESCAP

Economic and Social Commission for Asia and the Pacific (also ECAFE).


ESCWA

Economic and Social Commission for Western Asia (also ECWA).


ESP

Exporter's Sale Price.


ESPRIT

European Strategic Program for Research & Development in Information Technologies.


ETC

Export Trading Company.


ETSI

European Telecommunications Standards Institute.


EU

European Union.


EUCLID

European Cooperation for the Long-Term in Defense.


EURAM

European Research in Advanced Materials.


EURATOM

European Atomic Energy Community.


EUREKA

European Research Coordination Agency.


EWCP

Export Working Capital Program.


EXCEL

Export Credit Enhanced Leverage


EXW

Ex Works


East African Development Bank

ESCAP consists of Kenya, Tanzania and Uganda. The three member states have the common goal of promoting economic development.


Eastern Europe Business Information Center

The Eastern Europe Business Information Center (EEBIC) is a Department of Commerce facility that was opened in 1990 to provide information on trade and investment opportunities in Eastern Europe.


Economic Bulletin Board

The EBB is a personal computer-based economic bulletin board operated by the US Department of Commerce in Washington, DC. The EBB is an on-line source for trade leads and statistical releases from the Bureau of Economic Analysis, the Census Bureau, the International Trade Administration, the Bureau of Labor Statistics, the Federal Reserve Board, Department of the Treasury and other Federal agencies.


Economic Commission for Africa

Fifty-two member states with the goal of promoting economic development as a regional commission of ECOSOC.


Economic Commission for Europe

ECE consists of 33 member states with the goal of promoting economic development as a regional commission of ECOSOC.


Economic Commission for Latin America and the Caribbean

ECLAC consists of 41 members and 5 associate members with the goal of promoting economic development as a regional commission of ECOSOC.


Economic Community of Central African States

CEEAC, established in October, 1983, consists of 10 member states and 1 observer state with the goal of promoting economic cooperation and establishing a Central African Common Market.


Economic Community of West African States

ECOWAS, established in 1975 by the Treaty of Lagos, brought together 16 West African countries in an economic association aimed at creating a full customs union (not yet achieved). Members include: Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo.


Economic Community of the Great Lakes Countries

CEPGL, established in September, 1976, consists of Burundi, Rwanda and Zaire.


Economic Officers

Embassy officials who analyze and report on macroeconomic trends and trade policies and their implications for US policies and programs. Economic Officers represent US interests and arrange and participate in economic and commercial negotiations. (See Commercial Officers, Foreign Service.)


Economic Policy Council

The EPC was established by Executive Order in 1985 to address major trade policy issues in a single forum as a means of reducing tensions between different groups, such as the Trade Policy Committee and the Senior Interagency Group. The Council was modified in the Omnibus Trade and Competitiveness Act of 1988. Membership includes Treasury (chair pro tem), State, Agriculture, Commerce, Labor, Transportation, the OMB, the US Trade Representative, the Council of Economic Advisers and the Assistant to the President for Science and Technology.


Economic and Social Commission for Western Asia

A regional ECOSOC commission consisting of 12 member states with the goal of promoting economic development.


Economic and Social Council

ECOSOC is made up of 54 member states on a rotating basis with the goal of promoting the economic and social work of the United Nations through five regional commissions and six functional commissions.


Edge Act Corporations

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


Electronic Data Interchange for Administration, Commerce and Transportation

EDIFACT is an international syntax used in the interchange of electronic data. Customs uses EDIFACT to interchange data with the importing trade community.


Electronic License Application and Information Network

ELAIN is a BXA 24-hour on-line service which allows exporters to submit license applications.


Enabling Clause

Part I of the World Trade Organization (formerly General Agreement on Tariffs & Trade or GATT) framework which permits developed country members to give more favorable treatment to developing countries and special treatment to the least developed countries, notwithstanding the most-favored-nation provisions of the WTO.


Enhanced Proliferation Control Initiative

EPCI is a series of measures to tighten export controls on goods and technologies useful in the production of chemical and missile weapons systems. EPCI allows Commerce greater authority to deny exports of low-level goods and technologies to nations of proliferation concern.


Entente

Council of the Entente.


Enterprise for the Americas Initiative

The EAI, which was launched in 1990, is intended to develop a new economic relationship of the US with Latin America. The EAI has trade investment, debt and environment aspects. With regard to trade, the EAI involves an effort to move towards free trade agreements with markets in Latin America and the Caribbean, particularly with groups of countries that have associated for purposes of trade liberalization.

To begin the process of creating a hemispheric free trade system, the US seeks to enter into "framework" agreements on trade and investment with interested countries or groups of countries. These agreements set up intergovernmental councils to discuss and, where appropriate, to negotiate the removal of trade and investment barriers.


Entrepot

An intermediary storage facility where goods are kept temporarily for distribution within a country or for reexport.


Entry Summary Selectivity System

The Entry Summary Selectivity System, a part of Customs' Automated Commercial System, provides an automated review of entry data to determine whether team or routine review is required. Selectivity criteria include an assessment of risk by importer, tariff number, country of origin, manufacturer and value. Summaries with Census warnings, as well as quota, antidumping and countervailing duty entry summaries are selected for team review. A random sample of routine review summaries is also automatically selected for team review.


Entry Summary System

An entry is the minimum amount of documentation needed to secure the release of imported merchandise. The Entry Summary System, a part of Customs' Automated Commercial System, contains data on release, summary, rejection, collection, liquidation and extension or suspension.


Escape Clause

The escape clause, which can be invoked under WTO (formerly GATT) Article XIX, allows countries to temporarily violate their WTO obligations to the degree and time necessary to protect a domestic industry from serious injury. Countries taking such actions, however, must consult with affected contracting parties to determine appropriate compensation for the violation of WTO rights, or be subject to retaliatory trade actions.

Section 201 of the Trade Act of 1974 requires the US International Trade Commission to investigate complaints filed by domestic industries or workers claiming that they are injured or threatened by rapidly rising imports.

Section 203 of the Act provides that if the ensuing investigation establishes that the complaint is valid, relief may be granted in the form of adjustment assistance, which may be training, technical and financial assistance, or temporary import restrictions in the form of tariffs, quotas, tariff rate quotas and/or orderly marketing agreements. Import restrictions imposed under the escape clause authority are limited in duration. They may last no longer than five years but can be extended by the President for a three-year period.


Eurodollars

US dollar-denominated deposits in banks and other financial institutions outside of the United States. Originating from, but not limited to, the large quantity of US dollar deposits held in western Europe.


European Bank for Reconstruction & Development

The EBRD provides assistance through direct loans. The loans are designed to facilitate the development of market-oriented economies and to promote private and entrepreneurial initiatives. EBRD began financing operations in 1991. EBRD headquarters are in London.


European Commission

One of the five major institutions of the European Union, the Commission is responsible for ensuring the implementation of the Treaty of Rome and Union rules and obligations; submission of proposals to the Council of Ministers; execution of the Council's decisions; reconciliation of disagreements among Council members; administration of EU policies, such as the Common Agricultural Policy and coal and steel policies; taking necessary legal action against firms or member governments; and representing the Union in trade negotiations with non-member countries.


European Committee for Electrotechnical Standardization

The European Committee for Electrotechnical Standardization, CENELEC, is a non-profit-making international organization under Belgian law. CENELEC seeks to harmonize electrotechnical standards published by the national organizations and to remove technical barriers to trade that may be caused by differences in standards. CENELEC members include: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.


European Committee for Standardization

The European Committee for Standardization, or CEN (from Comite Europeen de Normalisation), is an association of the national standards organizations of 18 countries of the European Economic Communities (EEC) and of the European Free Trade Association (EFTA). CEN membership is open to the national standards organization of any European country which is, or is capable of becoming, a member of the EEC or EFTA. CEN develops voluntary standards in building, machine tools, information technology and in all sectors excluding the electrical ones covered by CENELEC. CEN is involved in accreditation of laboratories and certification bodies as well as quality assurance.


European Community

Now known as the EU, or "European Union.'' A regional organization created in 1958 providing for gradual elimination of intraregional customs duties and other trade barriers, applying a common external tariff against other countries, and providing for gradual adoption of other integrating measures, including a Common Agricultural Policy and guarantees of free movement of labor and capital. The original 6 members were Belgium, France, West Germany, Italy, Luxembourg and the Netherlands. Denmark, Ireland and the United Kingdom became members in 1973, Greece acceded in 1981 and Spain and Portugal in 1986. Austria, Finland and Sweden joined in 1995.

The term European Union is used to refer to three separate regional organizations consisting of the European Coal and Steel Community (ECSC), the European Atomic Energy Community (EURATOM) and the European Economic Community. These have been served since 1967 by common institutions -- the EU Commission, the EU Council, the European Parliament and the Court of Justice of the European Communities. The present 15 member states of the EU are also members of the ECSC and Euratom.

The three European Communities operate under separate treaties: the European Coal and Steel Community (ECSC), the European Atomic Energy Community (Euratom) and the European Economic Community (EEC). Due to the existence of three separate entities, the expression "European Union" -- abbreviated "EU" -- is used to refer to the three Communities in legal documents and official designations, i.e., the Commission of the European Communities. However, since the three Communities function as a single political institution, use of the expression "European Union" -- also abbreviated "EU" -- has become common usage except for legal texts.


European Cooperation for the Long-Term in Defense

EUCLID is a coordinated defense R&D initiative which was approved in a 1989 meeting of the Independent European Program Group (IEPG). EUCLID was designed to overcome deficiencies in European defense R&D spending, minimize individual nation's duplicative efforts, improve planning and overcome legal and administrative obstacles. EUCLID is divided into 11 technological categories: (a) modern radar technology, (b) microelectronics, (c) composite structures, (d) modular avionics, (e) electric gun, (f) artificial intelligence, (g) signature manipulation, (h) opto-electronic devices, (i) satellite surveillance technologies (including verification), (j) underwater acoustics, and (k) "human factors," including technology for training and simulation. Each of the 11 categories is assigned a lead coordinating nation.


European Currency Unit

The ecu is a "basket" of specified amounts of each EU currency. Amounts are determined according to the economic size of EU member and are revised every five years. The value of the ecu is determined by using the current exchange rate of each member currency. All the member states' currencies participate in the ecu basket. The ecu is the Community's accounting unit and is a popular private financial instrument.


European Economic Area

The European Economic Area, EEA, joins the member nations of the European Union (EU) and the European Free Trade Association (EFTA). The EEA would comprise 19 nations, nearly 380 million people and approximately 40 percent of world trade. The EEA is considered a major step towards eventually encompassing all 19 countries in the European Community.


European Free Trade Association

A regional organization established in 1959 by the Stockholm Convention as an alternative to the Common Market, EFTA was designed to provide a free trade area for industrial products among member countries. Unlike the EU however, EFTA members did not set up a common external tariff and did not include agricultural trade. The original members were the United Kingdom, Austria, Denmark, Norway, Portugal, Sweden and Switzerland. The United Kingdom, Denmark and Portugal left EFTA when they joined the EU. EFTA currently has seven members: Austria, Finland, Iceland, Liechtenstein, Norway, Sweden and Switzerland -- Austria and Sweden have applied for EU membership.


European Investment Bank

The EIB is an independent public institution set up the Treaty of Rome to contribute to balanced and steady development in the European Community. The EIB provides loans and guarantees to companies and public institutions to finance regional development, structural development and achieve cross-border objectives. The EIB has emphasized regional development and energy, with Italy, Greece and Ireland receiving major support.


European Monetary System

A monetary system intended to move Europe toward closer economic integration and avoid the disruptions in trade that can result from fluctuations in currency exchange rates. The EMS member countries deposit gold and dollar reserves with the European Monetary Cooperation Fund in exchange for the issuance of European currency units. Established in 1979; all EU members except Greece and the United Kingdom participate in the exchange rate mechanism of the EMS.


European Organization for Nuclear Research

CERN consists of 13 members and 2 observers with the goal of fostering nuclear research for peaceful purposes only.


European Organization for Testing & Certification

The EOTC was created in 1990 by the European Community Commission under a memorandum of agreement with CEN/CENELEC and the European Free Trade Association countries. EOTC promotes mutual recognition of tests, test and certification procedures and quality systems within the European private sector for product areas or characteristics not covered by EU legislative requirements.


European Patent Convention

The European Patent Convention, EPC, is an agreement between European nations to centralize and standardize patent law and procedure. The EPC, which took effect in 1977, established a single "European patent" through application to the European Patent Office in Munich. Once granted, the patent matures into a bundle of individual patents -- one in each member country.


European Research Coordination Agency

The European Research Coordination Agency, EUREKA, coordinated advanced technology projects being carried out by European industry. Created in 1985, EUREKA includes the European Community countries, plus Norway, Sweden, Finland, Switzerland, Austria, Iceland and Turkey.


European Space Agency

ESA consists of 13 member states and one associate member, with the goal of promoting peaceful cooperation in space research and technology.


European Telecommunications Standards Institute

ETSI was established in 1988 in response to the inability of the Council of European Post and Telecommunications Administration (CEPT) to keep up with the schedule of work on common European standards and specifications agreed to in the 1984 Memorandum of Understanding between CEPT and the EU. ETSI has a contractual relationship with the EU to pursue standards development for telecommunications equipment and services, and it cooperates with other European standards bodies such as CEN/CENELEC. ETSI membership includes the telecommunications administrations that constitute the CEPT as well as manufacturers, service providers and users.


European Union

Since 1993, the name of the former EC. A regional organization created in 1958 providing for gradual elimination of intraregional customs duties and other trade barriers, applying a common external tariff against other countries, and providing for gradual adoption of other integrating measures, including a Common Agricultural Policy and guarantees of free movement of labor and capital. The original 6 members were Belgium, France, West Germany, Italy, Luxembourg and the Netherlands. Denmark, Ireland and the United Kingdom became members in 1973, Greece acceded in 1981 and Spain and Portugal in 1986. Austria, Finland and Sweden joined in 1995.


Evidence of Right To Make Entry and Power of Attorney

Since goods can be entered in the US only by the buyer or a licensed customhouse broker, a power of attorney form is required to give customhouse brokers permission to represent their clients in matters pertaining to Customs.


Ex Quay

"Ex Quay" means that the seller makes the goods available to the buyer on the quay (wharf) at the destination named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there. There are two "Ex Quay" contracts in use: (a) Ex Quay "duty paid" and (b) Ex Quay "duties on buyer's account" in which the liability to clear goods for import is to be met by the buyer instead of by the seller.


Ex Ship

"Ex Ship" means that the seller will make the goods available to the buyer on board the ship at the destination named in the sales contract. The seller bears all costs and risks involved in bringing the goods to the destination.


Ex Works

Ex Works (EXW) at a named point of origin (examples are: ex factory, ex mill, ex warehouse). Under this term, the price quoted applies only at the point of origin and the seller agrees to place the goods at the disposal of the buyer at a specified place on the date or within the period fixed. All other charges are for the account of the buyer.


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 License

Exchange licenses serve a similar purpose as import licenses but protect, instead, a country's foreign exchange reserves or allocate such reserves so they may be used advantageously.


Exchange Rate

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

Influences on exchange rates include differences between interest rates and other asset yields between countries; investor expectations about future changes in a currency's value; investors' views on the overall the overall quantity of dollar-denominated assets in circulation; arbitrage; and central bank exchange rate support.


Exclusive Economic Zone

The EEZ refers to the rights of coastal states to control the living and nonliving resources of the sea for 200 miles off their coasts while allowing freedom of navigation to other states beyond 12 miles, as agreed at the sixth session of the Third UN Conference on the Law of the Sea (UNCLOS). The EEZ also gives the coastal states the responsibility for managing the conservation of all natural resources within the 200-mile limit.


Eximbank

US Government agency responsible for assisting in the export of US goods and services through a variety of programs.


Export

To ship goods out of one country for sale in another country.


Export Administration Act

The EAA of 1979, as amended, authorizes the President to control exports of US goods and technology to all foreign destinations, as necessary for the purpose of national security, foreign policy and short supply.

As the basic export administration statute, the EAA is the first big revision of export control law since enactment of the Export Control Act of 1949. The EAA is not a permanent legislation; it must be reauthorized -- usually every three years. There have been reauthorizations of the EAA in 1982, 1985 (the Export Administration Amendments Act) and 1988 (Omnibus Amendments of 1988) which have changed provisions of the basic Act. The Export Administration Act of 1990 was pocket vetoed by the President, charging that provisions involved micro management.


Export Administration Amendments Act

See Export Administration Act.


Export Administration Regulations

The Export Administration Regulations provide specific instructions on the use and types of licenses required and the types of commodities and technical data under control.


Export Administration Review Board

The EARB is a cabinet-level export licensing dispute resolution group. The EARB was originally established in 1970 under Executive Order 11533. Under Executive Order 12755 of 1991, EARB membership includes Commerce (as chair), State, Defense and Energy, and Arms Control and Disarmament Agency and, as non-voting members, the Joint Chiefs of Staff and the Central Intelligence Agency. The EARB is final review body to resolve differences among agency views on the granting of an export license. [Preceding EARB review are: (a) Operating Committees and (b) the Advisory Committee on Export Policy.] National Security Directive 53 requires escalation of disputes regarding an export license to the Advisory Committee on Export Policy (ACEP) not later than 100 days from the filing date of the applicant's application. Any cases not resolved at the ACEP level must be escalated to the EARB within 35 days of the date of the ACEP meeting. Cases not resolved by the EARB must be escalated to the President for resolution.


Export Assistance Center

An Export Assistance Center (EAC) system was established by the state of Texas to link agencies, associations and local governments in efforts to increase exports by assisting current and prospective exporters. The US&FCS has been considering using the Texas model to develop similar export assistance networks.


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 Commodity Classification Number

See Export Control Classification Number.


Export Contact List Service

The ECLS is an ITA service that provides mailing lists of prospective overseas customers from ITA's file of foreign firms. The ECLS identifies manufacturers, distributors, retailers, service firms and government agencies. A summary of the information on the company includes contact information, product and service interests and other data.


Export Control Automated Support System

ECASS was implemented by the Commerce Department in 1985 to automate a paper-based system. The system currently provides:

- electronic submission of application forms directly by exporters;

- optical character recognition of applications submitted on paper;

- paperless workstations for all licensing officers to review the application, route it to other officers, branches, or external agencies and to enter their final action along with riders and conditions;

- automated audit of all licenses issued; and

- real time management reporting on Licensing Officer workloads, average processing times, counts and times by license type, destination country, commodity code and other data.

Commerce's Bureau of Export Administration is expanding ECASS to include export enforcement activities.


Export Control Classification Number

Every product has an export control classification number (formerly: export commodity classification number) within the Commerce Control List. The ECCN consists of a five character number that identifies categories, product groups, strategic level of control and country groups.


Export Credit Enhanced Leverage

The export credit enhanced leverage, EXCEL, program was developed in 1990 by the World Bank in conjunction with a working group of the International Union of Credit and Investment Insurers (the Berne Union). The objective of EXCEL is to provide export credits at consensus rates for private sector borrowers in highly indebted countries, which would previously have been too great a risk for most agencies to cover.


Export Declaration

Also known at the Shipper's Export Declaration (SED), this form includes complete particulars on an individual shipment and is required by Commerce to control exports and act as a source document for export statistics.


Export Development Corporation

EDC is Canada's official export credit agency, responsible for providing export credit insurance, loans, guarantees and other financial services to promote Canadian export trade.


Export Development Office

Export Development Offices (EDOs) in seven cities (Tokyo, Sydney, Seoul, Milan, London, Mexico City and Sao Paulo) provide services to US exporters, including market research to identify specific marketing opportunities and products with the greatest sales potential; and to organize export promotion events. EDOs are staffed by US & Foreign Commercial Service officers. When not in use for trade exhibitions, EDOs with exhibit and conference facilities are made available to individual firms or associations.


Export Legal Assistance Network

The Export Legal Assistance Network, ELAN, sponsored by SBA, is a nationwide group of attorneys with experience in international trade who provide free initial consultations to small businesses on export-related matters. Telephone: 202-778-3080.


Export License

A government document authorizing exports of specific goods in specific quantities to a particular destination. This document may be required in some countries for most or all exports and in other countries only under special circumstances.


Export License Voice Information System

ELVIS is a BXA 24-hour on-line service which allows exporters to obtain recorded information on such topics as commodity classifications, emergency handling procedures and seminars as well as to order information.


Export License_1

A government document which permits the licensee to engage in the export of designated goods to certain destinations.


Export License_2

A government document authorizing exports of specific goods in specific quantities to a particular destination. This document may be required in some countries for most or all exports and in other countries only under special circumstances.


Export Management Company

An EMC is 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 a commission, salary, or retainer plus commission.


Export Merchant

A company that buys products directly from manufacturers, then packages and marks the merchandise for resale under its own name.


Export Processing Zone

Export Processing Zones are industrial parks designated by a government to provide tax and other incentives to export firms.


Export Quotas

Specific restrictions or target objectives on the value or volume of exports of specified goods imposed by the government of the exporting country. These restraints may be intended to protect domestic producers and consumers from temporary shortages of certain materials, or as a means to moderate world prices of specified commodities. Commodity agreements sometimes contain explicit provisions to indicate when export quotas should go into effect among producers. Export quotas are also used in connection with orderly marketing agreements and voluntary restraint agreements.


Export Restraint Agreements

See Voluntary Restraint Agreements.


Export Revolving Line of Credit

The Export Revolving Line of Credit, ERLC, a form of financial assistance provided by the Small Business Administration (SBA), has since been replaced by the Export Working Capital Program (EWCP) which offers more flexible terms.


Export Statistics

Export statistics measure the total physical quantity or value of merchandise (except for shipments to US military forces overseas) moving out of the United States to foreign countries, whether such merchandise is exported from within the US Customs territory or from a US Customs bonded warehouse or a US Foreign Trade Zone.


Export Subsidies

Generally, direct government payments or other economic inducements given to domestic producers of goods that are sold in foreign markets. The WTO (formerly GATT) recognizes the export subsidies may distort trade, unduly disturb normal commercial competition and hinder the achievement of WTO fair trade objectives; but it does not clearly define what practices constitute export subsidies. (See Subsidies.)


Export Trade Certificate of Review

A certification of partial immunity from US antitrust laws that can be granted based on the Export Trading Company Act legislation by the Department of Commerce with Department of Justice concurrence. Any prospective or present US-based exporter with antitrust concerns may apply for certification.


Export Trading Company

A firm that purchases foreign goods for resale in its own local market.


Export Trading Company Act

The Export Trading Company Act of 1982: initiates the Export Trade Certificate of Review program that provides antitrust preclearance for export activities; permits bankers' banks and bank holding companies to invest in ETCs; establishes a Contact Facilitation Service within the Commerce Department designed to facilitate contact between firms that produce exportable goods and services and firms that provide export trade services.


Export Trading Company_1

An export trading company (ETC) is a company doing business in the US principally to export goods or services produced in the US or to facilitate such exports by unaffiliated persons. The ETC can be owned by foreigners and can import, barter and arrange sales between third countries, as well as export.


Export Trading Company_2

A firm that purchases foreign goods for resale in its own local market.


Export Working Capital Program

The Export Working Capital Program, EWCP, is a form of financial assistance provided by the Small Business Administration (SBA). The EWCP replaces SBA's Export Revolving Line of Credit (ERLC) program. The EWCP guarantees loans to US firms to help bridge the working capital gap between the time inventory and production costs are disbursed, and payment is received from a foreign buyer. SBA guarantees repayment of up to 90 percent of the EWCP subject, up to a specified dollar limit.

Under SBA's EWCP, any number of withdrawals and repayments can be made as long as the dollar limit on the line of credit is not exceeded and disbursements are made within the stated maturity period (not more than 18 months). Loans cover pre-shipment working capital, post-shipment exposure or a combination of the two. Under the EWCP, funds may not be used to establish operations overseas, purchase fixed assets or pay existing debt.


Export-Import Bank of Japan

The Export-Import Bank of Japan, JEXIM, is Japan's official provider of export credits. About 10 percent of JEXIM's business is providing export credits. The bank's main role is to disburse about half the funds available under the trade surplus recycling program (the Nakasone facility).


Export-Import Bank of the United States

Eximbank was chartered in 1934 as an independent agency to finance the export of US goods and services. Eximbank offers four major export finance support programs: loans, guarantees, working capital guarantees and insurance. Eximbank undertakes some of the risk associated with financing the production and sale of American-made goods; provides financing to overseas customers for American goods when lenders are not prepared to finance the transactions; and enhances a US exporter's ability to match foreign government subsidies by helping lenders meet lower rates, or by giving financing incentives directly to foreign buyers.


Exporters Sales Price

A statutory term used to refer to the United States sales prices of merchandise which is sold or likely to be sold in the United States, before or after the time of importation, by or for the account of the exporter. Certain statutory adjustments are made to permit a meaningful comparison with the foreign market value of such or similar merchandise, e.g., import duties, United States selling and administrative expenses and freight are deducted from the United States price.


F/X

Foreign Exchange.


FAAS

Foreign Affairs Administrative Support.


FAK

Freight All Kind.


FAM Tour

Familiarization tour for travel agents or journalists planned and executed by a destination or region, usually in cooperation with an international airline.


FAO

Food & Agricultural Organization.


FAS

Foreign Agricultural Service; Free Alongside Ship.


FBIS

Foreign Broadcast Information Service.


FBP

Foreign Buyer Program.


FCA

Free Carrier.


FCIA

Foreign Credit Insurance Association.


FCPA

Foreign Corrupt Practices Act.


FDIUS

Foreign Direct Investment in the United States.


FEMA

Federal Emergency Management Agency.


FET

Foreign Economic Trends.


FFP

Food For Progress.


FI

Free In. Contract term which specifies that loading costs shall be paid by the buyer of the cargo and not by the charterer.


FIO

Free In and Out. Contract term which specifies that loading and unloading costs shall be paid by the buyer of the cargo and not by the charterer.


FIT

Foreign Independent Tour.


FLS

Front Line States.


FMS

Foreign Military Sales.


FMV

Foreign Market Value.


FO

Free Out. Contract term which specifies that unlading costs shall be paid by the buyer of the cargo and not by the charterer.


FOB

Free on Board. The price quoted applies only at inland shipping point, and the seller arranges for loading of the goods on, or in, railway cars, trucks, lighters, barges, aircraft or other conveyance furnished for transportation.


FOB Airport

FOB Airport is based on the same principle as the ordinary FOB term. The seller's obligations include delivering the goods to the air carrier at the airport of departure. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been so delivered.


FOB Freight Allowed

The same as FOB Named Inland Carrier, except the buyer pays the transportation charge and the seller reduces his invoice by a like amount.


FOB Freight Prepaid

The same as FOB Named Inland Carrier, except the seller pays the freight charges of the inland carrier.


FOGS

Functioning of the WTO (formerly GATT) System.


FOR/FOT

Free on Rail/Free on Truck.


FOREX

Foreign Exchange.


FSC

Foreign Sales Corporation.


FSI

Foreign Service Institute.


FSN

Foreign Service National.


FSO

Foreign Service Officer.


FTA

Free Trade Agreement/Area.


FTC

Federal Trade Commission.


FTI

Foreign Traders Index.


FTO

Foreign Trade Organization.


FTZ

Foreign Trade Zone.


FTZ-SZ

Foreign Trade Zone-Subzone.


FZ

Franc Zone.


Factoring

Factoring is the discounting of a foreign account receivable that does not involve a draft. The exporter transfers title to its foreign accounts receivable to a factoring house (an organization that specializes in the financing of accounts receivable) for cash at a discount from the face value. Factoring is often done without recourse to the exporter. Factoring of foreign accounts receivable is less common than with domestic receivables.


Factoring Houses

Certain companies which purchase export receivables (e.g., the invoices to foreign buyers) at a discounted price, usually about two to four percent less than their face value.


Fair Value

The reference against which US purchase prices of imported merchandise are compared during an antidumping investigation. Generally expressed as the weighted average of the exporter's domestic market prices, or prices of exports to third countries during the period of investigation.

In some cases fair value is the constructed value. Constructed value is used if there are no, or virtually no, home market or third country sales or if the number of such sales made at prices below the cost of production is so great that remaining sales above the cost of production provide an inadequate basis for comparison.


Fast Track

Fast track procedures for approval of trade agreements were included by Congress in trade legislation in 1974, in 1979 and again in the 1988 Trade Act. Fast track provides two guarantees essential to the successful negotiation of trade agreements: (1) a vote on implementing legislation within a fixed period of time, and (2) a vote, up or down, with no amendments to that legislation.

Provisions in the Omnibus Trade and Competitiveness Act of 1988 include that the foreign country request negotiation of an FTA and that the President give the Congress a 60-legislative-day notice of intent to negotiate an FTA. During the 60-legislative-day period, either committee can disapprove fast track authority by a majority vote. Disapproval would likely end the possibility of FTA negotiations. The 60-legislative-days can translate into five to ten months of calendar time, depending on the Congressional schedule. Formal negotiations would begin following this 60-day Congressional consideration period.


Feeder Service

A service which incorporates a small vessel to transport containers to the "mother ship."


Final Determination

The International Trade Administration makes a final determination after the investigation of sales at "less than fair value" and the receipt of comments from interested parties. This determination usually is made within 75 days after the date a preliminary determination is made. However, if the preliminary determination was affirmative, the exporters who account for a significant proportion of the merchandise under consideration may request, in writing, a postponement of this determination.

If the preliminary determination was negative, the petitioner may likewise request a postponement. In neither case can this postponement be more than 135 days after the date of the preliminary determination. If the final determination is affirmative and follows a negative preliminary determination, the matter is referred to the International Trade Commission for a determination of the injury caused or threatened by the sales at less than fair value. (Had the preliminary determination been affirmative, the ITC would have begun its investigation at that time.)

Not later than 45 days after the date the International Trade Administration makes an affirmative final determination, in a case where the preliminary determination also was affirmative, the International Trade Commission must render its decision on injury. Where the preliminary determination was negative, the ITC must render a decision not later than 75 days after the affirmative final determination. A negative final determination by the Assistant Secretary for Import Administration terminates an antidumping investigation.


Fines, Penalties & Forfeitures System

The Fines, Penalties & Forfeitures System, FPFS, a part of Customs' Automated Commercial System, is used to assess, control and process penalties resulting from violations of law or Customs regulations. FPFS provides retrieval of case information for monitoring case status.


Five-K Countries .... 5(k) Countries

Those countries as defined under Section 5(k) of the Export Administration Amendments Act of 1985. Such countries are eligible for the same treatment as CoCom countries in relation to export control requirements if those countries maintain comparable export control programs.


Food & Agricultural Organization

The FAO was established in 1945, as a specialized agency of the United Nations to combat hunger and malnutrition. The FAO serves as a coordinating body between government representatives, scientific groups and non-governmental organizations to carry out development programs relating to food and agriculture.


Food For Progress

The Food for Progress program is carried out by the Department of Agriculture, using the authority of either Public Law 480 or Section 416 of the Agricultural Act of 1949. The program provides commodities to needy countries to encourage agricultural reform. In fiscal year 1991, no agreements were signed under the FFP program. Public Law 480 is a food aid and market development program which focuses on the needs of developing countries and is aimed at establishing a US presence in such markets and supporting their economic growth. Section 416 of the Agricultural Act of 1949 provides for the donation of food and feed commodities owned by Agriculture's Commodity Credit Corporation and is focused on people in developing countries.


Force Majeure

The title of a standard clause in marine contract exempting the parties for nonfulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.


Foreign Affiliate

See Affiliate.


Foreign Affiliate of a Foreign Parent

A foreign affiliate of a foreign parent is, with reference to a given US affiliate, any member of the affiliated foreign group owning the US affiliate that is not a foreign parent of the US affiliate.


Foreign Agricultural Service

The Foreign Agricultural Service (FAS) is an agency of the Department of Agriculture. FAS maintains a global network of agricultural officers as well as a Washington-based staff to analyze and disseminate information on world agriculture and trade, develop and expand export markets and represent the agricultural trade policy interests of US producers in multilateral forums. FAS also administers USDA's export credit and concessional sales programs.


Foreign Assets Control

The Treasury Department's Office of Foreign Assets Control (OFAC) administers sanctions programs involving specific countries and restricts the involvement of US persons in third country strategic exports.


Foreign Assistance Act of 1991

This Act replaced the Support for East European Democracy (SEED) Act. The Foreign Assistance Act allows support to 26 countries, including all East European nations and most of the Soviet republics, but not to the Soviet Union itself.


Foreign Availability

The Bureau of Export Administration conducts reviews to determine the foreign availability of selected commodities or technology subject to export control. The reviews use four criteria to determine foreign availability: comparable quality, availability-in-fact, foreign source and adequacy of available quantities that would render continuation of the US control ineffective in meeting its intended purpose. A positive determination of foreign availability means that a non-US origin item of comparable quality may be obtained by one or more proscribed countries in quantities sufficient to satisfy their needs so that US exports of such item would not make a significant contribution to the military potential of such countries. A positive determination may result in the decontrol of a US product that has been under export control, or the approval of an export license. However, the control may be maintained if the President invokes the national security override provision of the Act.

Beginning with the 1977 amendments to the Export Administration Act, the Congress directed that products with foreign availability be identified and decontrolled unless essential to national security. In 1983, a program to assess the foreign availability of specific products was established within the Office of Export Administration, now the Bureau of Export Administration, or BXA. Further, 1985 amendments to the Act directed that an Office of Foreign Availability be created.


Foreign Buyer Program

The Foreign Buyer Program, FBP, is a joint industry-International Trade Administration program to assist exporters in meeting qualified foreign purchasers for their product or service at trade shows held in the United States. ITA selects leading US trade shows in industries with high export potential. Each show selected for the FBP receives promotion through overseas mailings, US embassy and regional commercial newsletters and other promotional techniques. ITA trade specialists counsel participating US exhibitors.


Foreign Corrupt Practices Act

The FCPA prohibits US individuals, companies and direct foreign subsidiaries of US companies from offering, promising, or paying anything of value to any foreign government official in order to obtain or retain business.


Foreign Credit Insurance Association

The FCIA is an agency of the Export-Import Bank which offers insurance covering political and commercial risks on export receivables. FICA was founded in 1961 as a partnership of Eximbank and a group of private insurance companies. Eximbank is responsible for the political risk and may underwrite or reinsure the commercial risk. FCIA acts as an agent responsible for the marketing and daily administration of the program.


Foreign Direct Investment in the United States

Foreign direct investment in the United States is the ownership or control, directly or indirectly, by a single foreign person (an individual, or related group of individuals, company or government) of 10 percent or more of the voting securities of an incorporated US business enterprise or an equivalent interest in an unincorporated US business enterprise, including real property. Such a business is referred to as a US affiliate of a foreign direct investor. (See Committee on Foreign Investment in the United States; Foreign Person; Portfolio Investment.)


Foreign Economic Trends

FETs are reports prepared by US embassies abroad to describe foreign country economic and commercial trends and trade and investment climates. The reports describe current economic conditions; provide updates on the principal factors influencing developments and the possible impacts on American exports; review newly announced foreign government policies as well as consumption, investment and foreign debt trends.


Foreign Exchange

The trading, buying or selling of foreign currencies in relation to US currencies.


Foreign Exports

Exports of foreign merchandise (re-exports), consist of commodities of foreign origin which have entered the United States for consumption or into Customs bonded warehouses or US Foreign Trade Zones, and which, at the time of exportation, are in substantially the same condition as when imported.


Foreign Flag

A reference to a carrier not registered in the United States that flies the American flag. The term applies to air and sea transportation.


Foreign Independent Tour

A foreign independent tour, FIT, is a prepaid travel arrangement, tailored to meet a traveler's specific wishes.


Foreign Investment

See Committee on Foreign Investment in the United States, Net Foreign Investment.


Foreign Market Research

See Industry Subsector Analysis.


Foreign Market Value

The price at which merchandise is sold, or offered for sale, in the principal markets of the country from which it is exported. If information on foreign home market sales is not useful, the foreign market value is based on prices of exports to third countries or constructed value. Adjustments for quantities sold, circumstances of sales and differences in the merchandise can be made to those prices to ensure a proper comparison with the prices of goods exported to the United States.


Foreign Military Sales

See Conventional Arms Transfer.


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. The foreign parent consists only of the first person or entity outside the United States in the affiliate's ownership chain; all other affiliated foreign persons are excluded.


Foreign Parent Group

A foreign parent group (FPG) consists of: (1) the foreign parent, (2) any foreign person or entity, proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the party below it, up to and including the ultimate beneficial owner (UBO), and (3) any foreign person or entity, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the party above it. A particular US affiliate may have several ownership chains above it, if it is owned at least 10 percent by more than one foreign party. In such cases, the affiliate may have more than one foreign parent, UBO and/or foreign parent group.


Foreign Person

A foreign person is any person resident outside the United States or subject to the jurisdiction of a country other than the United States.

"Person" is any individual, branch, partnership, association, associated group, estate, trust, corporation, or other organization (whether or not organized under the laws of any State) and any government (including a foreign government, the US Government, a State or local government and any agency, corporation, financial institution, or other entity or instrumentality thereof, including a government sponsored agency.)


Foreign Policy Controls

Foreign policy controls are distinct from national security controls (CoCom or other international agreements) and are imposed to further US foreign policy. The controls are typically imposed in response to developments in a country or countries -- such as considerations regarding terrorism and human rights -- or to developments involving a type or types of commodities and their related technical data. Foreign policy controls expire annually, unless extended.


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

A corporation created to secure US tax exemption on a portion of earnings derived from the sale of US products in foreign markets. To qualify for special tax treatment, a FSC must be a foreign corporation, maintain an office outside the US territory, maintain a summary of its permanent books of account at the foreign office and have at least one director resident outside of the US.


Foreign Service

The Foreign Service supports the President and the Secretary of State in pursuing America's foreign policy objectives. Foreign service functions include: representing US interests; operating US overseas missions; assisting Americans abroad; public diplomacy and reporting; communicating and negotiating political, economic, consular, administrative, cultural and commercial affairs. The Foreign Service comprises officers from the Departments of State, Commerce and Agriculture and the United States Information Service. (See Commercial Officers, Economic Officers.)


Foreign Service Institute

FSI was founded in 1946 to train US foreign and civil service officials. Training courses cover administrative, consular, economic, commercial and political work, foreign languages and diplomatic life overseas.


Foreign Trade Zone Entry

A form declaring goods which are brought duty-free into a Foreign Trade Zone for further processing or storage and subsequent exportation.


Foreign Trade Zones

FTZs (or free zones, free ports, or bonded warehouses) are special commercial and industrial areas in or near ports of entry where foreign and domestic merchandise, including raw materials, components and finished goods, may be brought in without being subject to payment of customs duties. Merchandise brought into these zones may be stored, sold, exhibited, repacked, assembled, sorted, graded, cleaned or otherwise manipulated prior to reexport or entry into the national customs territory.

FTZs are restricted-access sites in or near ports of entry, which are licensed by the Foreign-Trade Zones Board and operated under the supervision of the Customs Service. Zones are operated under public utility principles to create and maintain employment by encouraging operations in the US which might otherwise have been carried on abroad.

Quota restrictions do not normally apply to foreign goods stored in zones, but the Board can limit or deny zone use in specific cases on public interest grounds. Domestic goods moved into a zone for export may be considered exported upon entering the zone for purposes of excise tax rebates and drawback. "Subzones" are a special-purpose type of ancillary zone authorized by the Board, through grantees of public zone when it can be demonstrated that the activity will result in significant public benefit and is in the public interest. Goods in a zone for a bona fide Customs reason are exempt from state and local ad valorem tax. (See Free Trade Agreement, Free Trade Area.)


Foreign Traders Index

The Foreign Traders Index was the US & Foreign Commercial Service headquarters compilation of overseas contact files, intended for use by domestic businesses. The FTI included background information on foreign companies, address, contact person, sales figures, size of company and products by SIC code. The name of this index was changed to Commerical Service International Contacts, but has since been phased out, as of late 1997.


Foreign-Owned Affiliate in the US

A business in the United States in which there is sufficient foreign investment to be classified as direct foreign investment. To determine fully the foreign owners of a US affiliate, three entities must be identified: the foreign parent, the ultimate beneficial owner and the foreign parent group. All these entities are "persons" in the broad sense: thus, they may be individuals; business enterprises; governments; religious, charitable and other nonprofit organizations; estates and trusts; and associated groups.

A US affiliate may have an ultimate beneficial owner (UBO) that is not the immediate foreign parent; moreover, the affiliate may have several ownership chains above it, if it is owned at least 10 percent by more than one foreign person. In such cases, the affiliate may have more than one foreign parent, UBO and/or foreign parent group.


Forfaiting

Forfaiting is the selling, at a discount, of longer term accounts receivable or promissory notes of the foreign buyer. These instruments may also carry the guarantee of the foreign government. Forfaiting emerged after the Second World War to expedite finance transactions between Eastern and Western European countries. More recently, it has become popular in Asian and Third world countries. Both US and European forfaiting houses, which purchase the instruments at a discount from the exporters, are active in the US market.


Foul Bill of Lading

A receipt for goods issued by a carrier with an indication that the goods were damaged when received.


Four Dragons

The four small Asian LDCs that have experienced unusually rapid economic growth. Also known as the Four Tigers, this group consists of Hong Kong, South Korea, Singapore and Taiwan.


Four Tigers

See "Four Dragons.''


Framework Agreement

•	Tokyo Round: The Tokyo Round called for consideration to be given "to improvements in the international framework for the conduct of world trade." Four separate agreements make up what is known as the "framework agreement." They concern: (1) differential and more favorable treatment for, and reciprocity and fuller participation by, developing countries in the international framework for trade; (2) trade measures taken for balance of payments purposes; (3) safeguard actions for development purposes; and (4) an understanding on notification, consultation, dispute settlement and surveillance in the WTO (formerly GATT).

•	Enterprise for the Americas Initiative: Under the umbrella of the Enterprise for the Americas Initiative the United States and interested Western hemisphere countries are negotiating bilateral framework agreements which establish agreed upon stages for eliminating counter-productive barriers to trade and investment. They also provide a forum for bilateral dispute settlement.

Generally, the bilateral framework agreements contain similar objectives. They are based on a statement of agreed principles regarding the benefits of open trade and investment, increased importance of services to economies, the need for adequate intellectual property rights protection, the importance of observing and promoting internationally-recognized worker rights, and the desirability of resolving trade and investment problems expeditiously. The parties establish a Council on Trade & Investment to monitor trade and investment relations, hold consultations on specific trade and investment matters of interest to both sides, and work toward removing impediments to trade and investment flows. Framework agreements do not bind signatories to implement specific trade liberalization measures.


Franc Zone

Consisting of 15 member states, the Franc Zone is the monetary union among countries whose currencies are linked to the French franc.


Free Alongside Ship, Free Alongside Ship, FAS, at a named port of export

Under FAS, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharfage; loading, ocean transportation, and insurance are left to the buyer. FAS is also a method of export and import valuation.


Free Carrier ... (named point)

Free Carrier, FCA, to a named place. This term replaces the former "FOB named inland port" to designate the seller's responsibility for the cost of loading goods at the named shipping point. It may be used for multimodal transport, container stations, and any mode of transport, including air.


Free In

A pricing term indicating that the charterer of a vessel is responsible for the cost of loading goods onto the vessel.


Free In and Out

A pricing term indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods from the vessel.


Free Out

A pricing term indicating that the quoted prices includes the cost of unloading the goods from the vessel.


Free Port

An area, such as a port city, into which merchandise may legally be moved without payment of duties.


Free Sale, Certificate of

The US Government does not issue "certificates of free sale." However, on request, the Food and Drug Administration, Silver Springs, MD, will issue a "letter of comment" to US manufacturers whose products are subject to the Federal Food, Drug and Cosmetic Act or other acts administered by the agency to take the place of the "free sale certificate."


Free Time

Period of time allowed for loading/unloading of cargo before demurrage or detention charges begin accruing.


Free Trade Agreement

An FTA is an arrangement which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders. An FTA does not (as opposed to a common market) address labor mobility across borders or other common policies such as taxes. Member countries of a free trade area apply their individual tariff rates to countries outside the free trade area.


Free Trade Area

A cooperative arrangement by a group of nations whereby trade barriers are removed among the members, but each may maintain its own trade regime with nonmember nations. A free trade area allows member countries to maintain individually separate tariff schedules for external countries; members of a customs union employ a common external tariff.


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.


Free on Board

Free On Board (FOB) at a named port of export. The seller quotes the buyer a price that covers all costs up to and including delivery of goods aboard a vessel at a port. FOB is also a method of export valuation.


Free on Rail/Free on Truck

These terms are synonymous, since the word "truck" relates to the railway wagons. The terms should only be used then the goods are to be carried by rail.


Freight Carriage ... and insurance paid to

This term is the same as "Freight/Carriage Paid to ..." but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.


Freight Carriage ... paid to

Like C & F, "Freight/Carriage paid to ..." means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. The term can be used for all modes of transport including multi-modal operations and container or "roll on-roll off" traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.


Freight Forwarder

An independent business which handles export shipments for compensation.


Freight Release

Also referred to as Freight Bill Receipt, proof that freight charges have been paid for the shipment.


Front Line States

FLS consists of 7 South African states with the goal of achieving black majority rule in South Africa.


G-10

Group of Ten.


G-11

Group of Eleven.


G-15

Group of Fifteen.


G-19

Group of Nineteen.


G-2

Group of Two.


G-24

Group of Twenty-Four.


G-30

Group of Thirty.


G-33

Group of Thirty-Three.


G-5

Group of Five.


G-6

Group of Six.


G-7

Group of Seven.


G-77

Group of Seventy-Seven.


G-8

Group of Eight.


G-9

Group of Nine.


G-BAGGAGE

General License Baggage.


G-COCOM

General License COCOM.


G-DEST

General License Destination.


G-NNR

General License Non-Naval Reserve.


G-TEMP

General License Temporary Export.


GATT

General Agreement on Tariffs & Trade; now WTO (World Trade Organization).


GATT Panel

A panel of neutral representatives that may be established by the WTO Secretariat under the dispute settlement provisions of the WTO to review the facts of a dispute and render findings of WTO law and recommend action.


GCC

Gulf Cooperation Council.


GDP

Gross Domestic Product.


GEM

Global Export Manager.


GFW

General License Free World.


GL

General License.


GLR

General License Return (Replacement).


GLV

General License Shipments of Limited Value.


GNP

Gross National Product.


GSP

Generalized System of Preferences.


GTDA

General License Technical Data.


GTDR

General License Technical Data Restricted.


Gateway

In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place.


General Agreement on Tariffs & Trade

The GATT, now called the World Trade Organization (WTO), is a binding contract among 103 governments. GATT was established in 1947 as an interim measure pending the establishment of the International Trade Organization, under the Havana Charter. The International Trade Organization (ITO) was never ratified by Congress. Operating in the absence of an explicit international organization, GATT has provided the legal framework for international trade with its primary mission being the reduction of trade barriers. (See Rounds.)


General Exception

CoCom controls exports at three levels, depending on the item and the proposed destination. At the highest or "general exception" level, unanimous approval by CoCom members is necessary.


General Export License

Any of various US export licenses covering export commodities for which Validated Export Licenses are not required. No formal application or written authorization is needed to ship exports under a General Export License.


General Imports

"General Imports" measure the total physical arrivals of merchandise from foreign countries, whether such merchandise enters consumption channels immediately or is entered into bonded warehouses or Foreign Trade Zones under Customs custody.


General License

These are licenses, authorized by the Bureau of Export Administration, that permit the export of non-strategic goods to specified countries without the need for a validated license. No prior written authorization is required and no individual license is issued.

There are over twenty different types of general licenses, each represented by a symbol. The reason so many general licenses exist is to accommodate the various exporting situations that the Bureau of Export Administration has determined should not require an Individual Validated License. These licenses include:

•	General license BAGGAGE;

•	General license CREW

•	General license GATS;

•	General license GCG;

•	General license G-COCOM;

•	General license GCT;

•	General license G-DEST;

•	General license GFW;

•	General license GIFT;

•	General license GIT;

•	General license GLR;

•	General license GLV;

•	General license G-NNR

•	General license GTDA;

•	General license GTDR;

•	General license G-TEMP;

•	General license GTF-US;

•	General license GUS;

•	General license PLANE STORES;

•	General license RCS;

•	General license SAFEGUARDS; and

•	General license SHIP STORES.


General License BAGGAGE

General license BAGGAGE authorizes individuals leaving the United States for any destination to take with them as personal baggage the following items: personal effects, household effects (including personal computers), vehicles, and tools of the trade (including highly technical ones), provided that certain conditions concerning these items pertain.


General License CREW

With limitations, general license CREW authorizes a member of the crew on an exporting carrier to export personal and household items among his/her effects.


General License Free World

General license Free World (GFW) authorizes exports of certain low level commodities subject to national security controls. In most cases, these commodities have performance characteristics that permit the United States to approve exports to controlled countries with only notification to other CoCom governments.


General License G-COCOM

General license G-COCOM authorizes exports to CoCom participating countries, Austria, Finland, Ireland and Switzerland, for use or consumption therein, of commodities that the United States may approve for export to controlled countries with only notification to the CoCom governments, as well as commodities within the China "Green Zone."


General License G-DEST

General license shipments of commodities to destinations not requiring a validated license. The majority of all items exported fall under the provisions of General License G-DEST.


General License G-TEMP

Subject to conditions and exceptions, general license G-TEMP authorizes the temporary export of commodities and software for temporary use abroad for a period generally not to exceed 12 months.


General License GATS

General license Aircraft on Temporary Sojourn (GAT) authorizes the departure form the United States of foreign registry civil aircraft on temporary sojourn in the United States and of US civil aircraft for temporary sojourn abroad.


General License GCG

With limitations, general license Shipments to Agencies of Cooperating Governments (GCG) authorizes the export of commodities for official use of any agency of a cooperating government within the territory of the cooperating government.


General License GCT

General license GCT authorizes exports to eligible countries of all "A" level commodities except those specifically excluded by the "Commodities Not Eligible for GCT" paragraphs in certain Export Control Classification Numbers (ECCNs) on the Commerce Control List. Exports may be made under GCT only when intended for use or consumption within the importing country, reexport among and consumption within eligible countries, or reexport in accordance with other provisions of the Export Administration Regulations.


General License GIFT

Subject to various provisions and limitations, general license Shipment of Gift Parcels (GIFT) authorizes the export of gift parcels by an individual in the United States.


General License GIT

With limitations, general license in-transit shipments (GIT) authorizes the export from the United States of commodities that originate in one foreign country and are destined to another foreign country.


General License GLR

Subject to various provisions, general license Return or Replacement of Certain Commodities (GLR) authorizes the return or repair of commodities and the replacement of parts.


General License GLV

General license Shipments of Limited Value (GLV) authorizes a "single shipment" of a commodity when the shipment does not exceed the value limit specified in the GLV paragraph of the ECCN.


General License GTDA

General license Technical Data (GTDA) available to all destinations. Authorizes exports to all destinations of technical data that are in the public domain and generally available.


General License GTDR

When exporting technical data to free world destinations and the information does not qualify under GTDA and an IVL is not required, an exporter may use GTDR. GTDR shipments must be accompanied by a written assurance from the foreign consignee stating that neither the technical data nor the direct product thereof will be shipped to Country Groups Q, S, W, Y or Z, the People's Republic of China or Afghanistan.


General License GTF-US

General license Goods Imported for Display at US Exhibitions or Trade Fairs (GTF-US) authorizes the export of commodities that were: (1) imported into the United States for display at an exhibition or trade fair; and (2) either entered under bond or permitted temporary free importation under bond providing for their export and are being exported in accordance with the terms of such bond.


General License GUS

With limitations, general license shipments to personnel and agencies of the US Government (GUS) authorizes the export of commodities and software for personal or official use to any destination.


General License Plane Stores

With limitations, general license plane stores authorizes the export on aircraft of US or foreign registry departing from the United States of usual and reasonable kinds and quantities of commodities necessary to support the operation of an aircraft, provided the commodities are not intended for unlading in a foreign country and are not exported under a bill of lading as cargo.


General License Safeguards

With limitations, general license safeguards authorizes exports to the International Atomic Energy Agency (IAEA) and the European Atomic Energy Community (EURATOM).


General License Ship Stores

With limitations, general license Ship Stores authorizes the export of usual and reasonable kinds and quantities of the commodities to support the operations of a vessel, provided the commodities are not intended for unlading in a foreign country and are not exported under a bill of lading as cargo.


General Tariff

A tariff that applies to countries that do not enjoy either preferential or most-favored-nation tariff treatment. Where the general tariff rate differs from the most-favored-nation rate, the general tariff rate is usually the higher rate.


Generalized System of Preferences

The Generalized System of Preferences (GSP) is a framework under which developed countries give preferential tariff treatment to manufactured goods imported from certain developing countries. GSP is one element of a coordinated effort by the industrial trading nations to bring developing countries more fully into the international trading system. The US GSP scheme is a system of nonreciprocal tariff preferences for the benefit of these countries.

The US conducts annual GSP reviews to consider petitions requesting modification of product coverage and/or country eligibility. United States GSP law requires that a beneficiary country's laws and practices relating to market access, intellectual property rights protection, investment, export practices, and workers rights be considered in all GSP decisions.


Global Export Manager

The Global Export Manager (GEM) is an electronic system for collecting and disseminating trade leads and business opportunities. GEM is maintained by the National Association of State Development Agencies (NASDA).


Global Quota

A global quota is a quota on the total imports of a product from all countries.


Gold Key Service

The Gold Key Service is an International Trade Administration service that provides customized information for US firms visiting a country -- market orientation briefings, market research, introductions to potential business partners, an interpreter for meetings, assistance in developing a market strategy, and help in putting together a follow-up plan. Trade Specialists design an agenda of meetings, screen and select the right companies, arrange meetings with key people, and go with US representatives to ensure that no unforeseen difficulties occur.


Government Procurement Policies and Practices

The term refers to a nontariff barrier to trade involving the discriminatory purchase by official government agencies of goods and services from domestic suppliers, despite their higher prices or inferior quality as compared with competitive goods that could be imported.


Grandfather Clause

The General Agreement on Tariffs & Trade (GATT) provision that allows the original contracting parties to exempt from general GATT obligations mandatory domestic legislation which is inconsistent with GATT provisions, but which existed before the GATT was signed. Newer members may also "grandfather" domestic legislation if that is agreed to in negotiating the terms of accession. (US legislation also provides for "grandfather clauses.")


Green Line

See China Green Line.


Grey List

This is a list of disreputable end users in nations of concern for missile proliferation from the intelligence community. Licensing officials in Commerce and State use this list as a cross-reference when reviewing export license applications for commodities listed in the MTCR Equipment and Technology Annex.


Gross Domestic Product

A measure of the market value of all goods and services produced within the boundaries of a nation, regardless of asset ownership. Unlike gross national product, GDP excludes receipts from that nation's business operations in foreign countries, as well as the share of reinvested earning in foreign affiliates of domestic corporations.


Gross National Product

A measure of the market value of goods and services produced by the labor and property of a nation. Includes receipts from that nation's business operation in foreign countries, as well as the share of reinvested earnings in foreign affiliates of domestic corporations.


Gross Weight

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


Group of ...

Two: Informal term that came into being in about 1986 and refers to Japan and the US.

Three: Mechanism for policy coordination that consists of Colombia, Mexico and Venezuela.

Five: Similar to the Group of Seven (G-7), with the exception of Canada and Italy.

Six: Not to be confused with the Big Six, this refers to Argentina, Greece, India, Mexico, Sweden, Tanzania, whose aim is to achieve nuclear disarmament.

Seven: This term refers to seven major economic powers (Canada. France, Germany, Great Britain, Italy, Japan and the United States) whose finance ministers seek to promote balanced economic growth and stability among exchange rates.

Eight: The DCs that participated in the Conference on International Economic Cooperation in 1975, consisting of Australia, Canada, the EU (as one member), Japan, Spain, Sweden, Switzerland and US.

Nine: An informal group that discusses matters of mutual interest, consisting of Austria, Belgium, Bulgaria, Denmark, Finland, Hungary, Romania, Sweden and the former Yugoslavia.

Ten: Under the International Monetary Fund's General Agreements to Borrow (GAB), established in 1962, 10 of the wealthiest industrial members of the IMF "stand ready to lend their currencies to the IMF up to specified amounts when supplementary resources are needed." The finance ministers of these countries comprise the Group of 10 (also called the Paris Club).

Eleven: Also known as the Cartagena Group, the G-11 is a forum for the largest debtor nations in Latin America. Its members include: Argentina, Bolivia, Brazil, Chile, Columbia, Dominican Republic, Ecuador, Peru, Uruguay and Venezuela.

Fifteen: The G-15, established in 1990, consists of relatively prosperous or large developing countries. The G-15 discusses the benefits of mutual cooperation in improving their international economic positions. Members include: Algeria, Argentina, Brazil, Egypt, India, Indonesia, Jamaica, Malaysia (a very active member), Mexico, Nigeria, Peru, Senegal, Venezuela, Yugoslavia and Zimbabwe.

Nineteen: The less-developed countries (LDCs) that participated in the Conference on International Economic Cooperation (CIEC), held in several sessions between 1975 and 1977. Its members include: Algeria, Argentina, Brazil, Cameroon, Egypt, India, Indonesia, Zimbabwe, Iraq, Jamaica, Mexico, Nigeria, Pakistan, Peru, Saudi Arabia, Venezuela, Zaire, Zambia (Yugoslavia was also a member).

Twenty-four: A grouping of finance ministers from 24 developing country members of the International Monetary Fund. The Group, representing eight countries from each of the African, Asian, and Latin American country groupings in the Group of 77, was formed in 1971 to counterbalance the influence of the Group of 10.

Thirty: Informal group of 30 leading international bankers, economists, financial experts and businessmen organized by the former managing director of the IMF with the purpose of discussing and proposing solutions to the world's economic problems.

Thirty-three: The leading economists from 13 countries with the aim of promoting solutions to international economic problems.

Seventy-Seven: A grouping of developing countries which had its origins in the early 1960s. This numerical designation persists, although membership had increased to more than 120 countries. The G-77 functions as a caucus for the developing countries on economic matters in many forums including the United Nations.


Gulf Cooperation Council

The six member countries (Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, Qatar, and Oman) of the Gulf Cooperation Council (GCC) control half the proven oil reserves outside the Soviet Union, and account for about 40 percent of all the oil moving in international trade. The GCC was created in 1981, largely in response to the outbreak of the Iran-Iraq war.

In creating the GCC, the members tried to maintain the balance of power in the Gulf by strengthening multilateral cooperation in security and economic matters. As regards trade, the GCC is only a policy-coordinating forum; the Council cannot impose policies on the members. GCC headquarters are in Riyadh, Saudi Arabia. The presidency of the GCC rotates yearly among the rulers of the member countries.


HG

Hexagonal Group.


HS

Harmonized System.


HTS

Harmonized Tariff Schedule.


HTWG

High Technology Working Group.


Habitat:

See "UNCHS.''


Hard Currency

Currency that, because of its soundness, is generally accepted in international transactions.


Harmonized System

The Harmonized Commodity Description & Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council. Beginning on January 1, 1989, the new HS numbers replaced previously adhered-to schedules in over 50 countries, including the United States.

For the United States, the HS numbers are the numbers that are entered on the actual export and import documents. Any other commodity code classification number (SIC, SITC, end-use, etc.) are just rearrangements and transformations of the original HS numbers.


Hazardous Material

Material designated as hazardous by 49 CFR.


Hedging

Taking a position in a futures market opposite to one's position in the cash market in order to minimize price risk.


Hexagonal Group

The old Pentagonal Group plus one, with the goal of forming an economic and political cooperation group for the region between the Adriatic and the Baltic Seas. Its members are Austria Czechoslovakia, Hungary, Italy, Poland and the former Yugoslavia.


Holder in Due Course

Any entity whose endorsement appears on a negotiable instrument.


Horizontal Export Trading Company

An export trading company which exports a range of similar or identical products supplied by a number of manufacturers or other producers. Webb-Pomerene Organizations, trade-grouped organized export trading companies, and an export trading company formed by an association of agricultural cooperatives are the prime examples of horizontally organized export trading companies.


House Air Waybill

Contains all the information of an air waybill but is not a financial document. This is a contract between the shipper and freight forwarder. All the shipments covered by the individual house air waybills are consolidated and a single air waybill is issued to cover the consolidated shipment.


I/D Entry

Immediate Delivery Entry. Procedure allowing cargo to be delivered up to ten days prior to the payment of estimated duties. Includes merchandise such as fresh fruits and vegetables for human consumption from Mexico and Canada.


I/T Entry

Immediate Transportation Entry. Permits shipment to be moved, by a bonded domestic carrier, from the port-of-entry to an inland destination without payment of duty or finalization of entry at port-of-entry.


IACC

International Anticounterfeiting Coalition.


IADB

Inter-American Development Bank.


IAEA

International Atomic Energy Agency.


IAEL

International Atomic Energy List.


IATA

International Air Transport Association.


IBEC

International Bank for Economic Cooperation.


IBRD

International Bank for Reconstruction & Development.


IC

Import Certificate; Integrated Circuit.


ICA

International Cocoa Agreement; International Coffee Agreement; International Commodity Agreement.


ICAO

International Civil Aviation Organization.


ICC

International Chamber of Commerce.


ICEM

See IOM.


ICFTU

International Federation of Free Trade Unions.


ICO

International Congress Office.


ICRC

International Committee of the Red Cross.


ICS

Investment Climate Statement.


ICSID

International Center for the Settlement for Investment Disputes.


ICSU

International Council of Scientific Unions.


IDA

International Development Association.


IDB

Islamic Development Bank.


IDCA

International Development Cooperation Agency.


IEA

International Energy Agency.


IEC

International Electrotechnical Commission.


IEEPA

International Emergency Economic Powers Act.


IEPG

Independent European Program Group.


IESC

International Executive Service Corps.


IFAC

Industry Functional Advisory Committee.


IFAD

International Fund for Agricultural Development.


IFC

International Finance Corporation.


IFRB

International Frequency Registration Board.


IFS

Industry Focused Seminar; In-Flight Survey.


IGADD

Inter-Governmental Authority on Drought and Development.


IGC

Interagency Group on Countertrade.


IIB

International Investment Bank.


IL

Industrial List.


ILO

International Labor Organization.


IMCO

See IMO.


IMF

International Monetary Fund.


IMI

International Market Insight.


IML

International Munitions List.


IMO

International Maritime Organization.


INMARSAT

International Maritime Satellite Organization.


INR

Initial Negotiating Right.


INTELSAT

International Telecommunications Satellite Organization.


INTERPOL

International Criminal Police Organization.


IOC

International Olympic Committee.


IOGA

Industry-Organized, Government-Approved Mission.


IOM

International Organization of Migration.


IPAC

Industry Policy Advisory Committee.


IPR

Intellectual Property Rights.


ISA

Industry Sub-Sector Analysis; International Sugar Agreement.


ISAC

Industry Sector Advisory Committee.


ISDN

Integrated Services Digital Network.


ISO

International Standards Organization.


ITA

International Tin Agreement; International Trade Administration.


ITAR

International Traffic in Arms Regulations.


ITC

International Trade Commission.


ITU

International Telecommunication Union.


IVL

Individual Validated License.


IWC

International Whaling Commission.


Import

To bring foreign goods into a country.


Import Certificate

The import certificate is a means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.


Import License

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


Import Permit

Some countries use this term interchangeably with import license. Permits are usually required for items which might affect the public health morals, or animal life/vegetation, etc., in other words, foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment, seeds, plants, various written material (including tapes, cassettes, movies, TV tapes or TV movies).


Import Quota

A means of restricting imports by the issuance of licenses to importers, assigning each a quota, after determination of the total amount of any commodity which is to be imported during a period. Import licenses may also specify the country from which the importer must purchase the goods.


Import Quota Auctioning

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


Import Restrictions

Import restriction, applied by a country with an adverse trade balance (or for other reasons), reflect a desire to control the volume of goods coming into the country from other countries may include the imposition of tariffs or import quotas, restrictions on the amount of foreign currency available to cover imports, a requirement for import deposits, the imposition of import surcharges, or the prohibition of various categories of imports.


Import Substitution

A strategy which emphasizes the replacement of imports with domestically produced goods, rather than the production of goods for export, to encourage the development of domestic industry.


Imports

Imports of merchandise include commodities of foreign origin as well as goods of domestic origin returned to the United States with no change in condition or after having been processed and/or assembled in other countries. For statistical purposes, imports are classified by type of transaction:

•	Merchandise entered for immediate consumption. ("duty free" merchandise and merchandise on which duty is paid on arrival);

•	Merchandise withdrawn for consumption from Customs bonded warehouses, and US Foreign Trade Zones;

•	Merchandise entered into Customs bonded warehouses and US Foreign Trade Zones from foreign countries.


Imports for Consumption

"Imports for Consumption" measure the total of merchandise that has physically cleared through US Customs either entering consumption channels immediately or entering after withdrawal for consumption from bonded warehouses under Customs custody or from Foreign Trade Zones. Many countries use the term "special imports" to designate statistics compiled on this basis.


In-Bond System

The In-Bond System, a part of Customs' Automated Commercial System, controls merchandise from the point of unloading at the port of entry or exportation. The system works with the input of departures (from the port of unlading), arrivals, and closures (accountability of arrivals).


In-Flight Survey

The In-Flight Survey is administered to US and foreign travelers departing the US as a means of providing data on visitor characteristics, travel patterns and spending habits, and for supplying data on the US international travel dollar accounts as well as to meet balance of payments estimation needs. The IFS covers about 70 percent of US carriers and 35 percent of foreign carriers, who voluntarily choose to participate.

Sample results are expanded to universe estimates to account for nonresponse of passengers on each sampled flight, for coverage of all flights on each major airline route, and for all international routes. The basis for the expansion is the number of passengers departing the United States, obtained from the Immigration and Naturalization Service.


Incoterms

Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred.


Independent European Program Group

The IEPG is an intergovernmental organization that is not formally part of NATO but whose membership includes all the EU members of the alliance, plus Norway and Turkey. Established in 1976, IEPG's objectives are to promote European cooperation in research, development, and production of defense equipment; improve transatlantic armaments cooperation; and maintain a healthy European defense industrial base.


Indirect Exporting

Sale by the exporter to the buyer through a domestically located intermediary.


Individual Validated License

Written approval by the US Department of Commerce granting permission, which is valid for 2 years, for the export of a specified quantity of products or technical data to a single recipient. Individual validated licenses also are required, under certain circumstances, as authorization for reexport of US-origin commodities to new destinations abroad.


Industrial List

The CoCom industrial list contains dual-use items whose export are controlled for strategic reasons.


Industry Consultations Program

The Industry Consultations Program for Trade Policy Matters is an advisory committee structure created by the Trade Act of 1974; expanded by the Trade Agreements Act of 1979; and amended by the Omnibus Trade and Competitiveness Act of 1988. The program is operated jointly by Commerce and the US Trade Representative. Members of the committees are appointed by the Secretary of Commerce and the US Trade Representative.

The present structure consists of 17 Industry Sector Advisory Committees (ISACs), 3 Industry Functional Advisory Committees (IFACs), a Committee of Chairs, and an Industry Policy Advisory Committee (IPAC). The focus of the 3 Functional Advisory Committees are: (1) Customs Matters, (2) Standards, and (3) Intellectual Property Rights.

The focus of the 17 Industry Sector Advisory Committees are:

1. Aerospace Equipment

2. Capital Goods

3. Chemicals and Allied Products

4. Consumer Goods

5. Electronics and Instrumentation

6. Energy

7. Ferrous Ores and Metals

8. Footwear, Leather and Leather Products

9. Building Products and Other Materials

10. Lumber and Wood Products

11. Nonferrous Ores and Metals

12. Paper and Paper Products

13. Services

14. Small and Minority Business

15. Textiles and Apparel

16. Transportation, Construction and Agricultural Equipment

17. Wholesaling and Retailing

See Advisory Committee on Trade Policy and Negotiations.


Industry Functional Advisory Committee

See Industry Consultations Program.


Industry Policy Advisory Committee

See Industry Consultations Program.


Industry Sector Advisory Committee

See Industry Consultations Program.


Industry Subsector Analysis

As used by the International Trade Administration, an industry subsector analysis is overseas market research for a given industry subsector (such as cardiological equipment for the medical equipment industry) that presents basic information about a foreign market such as market size, the competitive environment, primary end users, best prospects products and market access information.


Inherent Vice

An insurance term referring to any defect or other characteristic of a product which could result in damage to the product without external cause (for example, instability in a chemical that could cause it to explode spontaneously). Insurance policies may specifically exclude losses caused by inherent vice.


Initial Negotiating Right

A right held by one WTO (formerly GATT) country to seek compensation for an impairment of a given bound tariff rate by another WTO country. INRs stem from past negotiating concessions and allow the INR holder to seek compensation for an impairment of tariff concessions regardless of its status as a supplier of the product in question.


Injury

In US law, a finding by the International Trade Commission that imports are causing, or are likely to cause, harm to a US industry. An injury determination is the basis for a Section 201 case. It is also a requirement in all antidumping and most countervailing duty cases, in conjunction with Commerce Department determinations on dumping and subsidization.


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.


Inspection Certification

Some purchasers and countries may require a certificate of inspection attesting to the specifications of the goods shipped, usually performed by a third party. Inspection certificates are often obtained from independent testing organizations.


Insurance Certificate

This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.


Integrated Carriers

Carriers that have both air and ground fleets; or other combinations, such as sea, rail and truck. Since they usually handle thousands of small parcels an hour, they are less expensive and offer more diverse services than regular carriers.


Intellectual Property

Term that describes inventions or other discoveries that have been registered with government authorities for the sale or use by their owner. Intellectual property rights is the ownership of the right to possess or otherwise use or dispose of products created by human ingenuity. See Copyright, Mask Work, Patent, Trademark, Unfair Competition.


Inter Alia

Among other things.


Inter-American Development Bank

A regional financial institution established in 1959 to advance the economic and social development of 27 Latin American member countries. IADB headquarters are in Washington, DC.


Inter-Governmental Authority on Drought and Development

IGADD consists of Djibouti, Ethiopia, Kenya, Somalia, Sudan and Uganda, with the common goal of promoting cooperation on drought-related matters.


Interagency Group on Countertrade

The IGC, established in 1988 under Executive Order 12661, reviews policy and negotiates agreements with other countries on countertrade and offsets. The IGC operates at the Assistant Secretary level, with the Department of Commerce as chair. Membership includes 11 other agencies: Agriculture, Defense, Energy, Justice, Labor, State, Treasury, the Agency for International Development, the Federal Emergency Management Agency, the US Trade Representative, and the Office of Management and Budget.


Interchange Agreement

Document authorizing exchange of containers/equipment in intermodal transit (e.g., ocean carrier releasing a container to a railroad).


Intermediate Consignee

An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) which acts in a foreign country as an agent for the exporter, the purchaser or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.


Intermodal Transport

Moving of cargo through more than one mode of transportation (i.e., ocean to rail to road).


International Air Transport Association

The International Air Transport Association, IATA, is a trade association serving airlines, passengers, shippers, travel agents, and governments. IATA headquarters are in Geneva, Switzerland.


International Anticounterfeiting Coalition

The IACC, founded in 1978, is a nonprofit organization located in Washington, DC. The IACC seeks to advance intellectual property rights (IPR) protection on a worldwide basis by promoting laws, regulations, and directives designed to render theft of IPR unattractive and unprofitable.


International Atomic Energy Agency

The International Atomic Energy Agency is the primary international organization that enforces a system of safeguards to ensure that non-nuclear weapons states do not divert shipments of sensitive equipment from peaceful applications to the production of nuclear weapons. Before a supplier state of nuclear materials or equipment may approve an export to a non-nuclear weapons NPT (Nuclear non-Proliferation Treaty) signatory state, it must receive assurances that the recipient will place the material under IAEA safeguards. Subsequent to shipment, the recipient state must allow IAEA officials to verify the legitimate end use of the exported materials or equipment.

IAEA, established in 1957, gives advice and technical assistance to developing countries on nuclear power development, nuclear safety, radioactive waste management, and related efforts. Safeguards are the technical means applied by the IAEA to verify that nuclear equipment or materials are used exclusively for peaceful purposes.


International Atomic Energy List

The International Atomic Energy List is one of three lists maintained by CoCom. The AEL, comprised strictly of nuclear-related items that are also of commercial value, consists of: materials, facilities, nuclear-related equipment and software. State, which has the lead in US negotiations concerning the AEL, relies on DOE experts.


International Bank for Reconstruction & Development

The International Bank for Reconstruction & Development (or World Bank) was established in 1944 to help countries reconstruct their economies after World War II. IBRD now assists developing member countries by lending to government agencies, or by guaranteeing private loans for such projects as agricultural modernization or infrastructural development.


International Banking Facility

An International Banking Facility (IBF) is one of four categories of foreign banking in the United States. An IBF is a set of asset and liability accounts that is segregated and limited to financing international trade.


International Centre for Settlement of Investment Disputes

The International Centre for Settlement of Investment Disputes (ICSID) is a separate organization of the World Bank which was established in 1966. The ICSID encourages greater flows of investment capital by providing facilities for the conciliation and arbitration of disputes between governments and foreign investors. The ICSID also conducts and publishes research in foreign-investment law.


International Chamber of Commerce

Fifty-eight national councils with the goal of promoting free trade and private enterprise and the represent business interests at national and international levels.


International Civil Aviation Organization

A United Nations specialized agency consisting of 164 member states with the goal of promoting international cooperation in civil aviation.


International Coffee Agreement

An agreement presently signed by 67 countries, representing all of the world's major exporters and importers of coffee. The United States is a party to the agreement.


International Committee of the Red Cross

The ICRC is made up of 25 individuals (all Swiss nationals) with the aim of providing humanitarian aid in wartime.


International Commodity Agreement

An ICA is an international understanding, usually reflected in a legal instrument, relating to trade in a particular basic commodity, and based on terms negotiated and accepted by most of the countries that export and import commercially significant quantities of the commodity. Some commodity agreements (such as exists for coffee, cocoa, natural rubber, sugar and tin) center on economic provisions intended to defend a price range for the commodity through the use of buffer stocks or export quotas or both. Other commodity agreements (such as existing agreements for jute and jute products, olive oil and wheat) promote cooperation among producers and consumers through improved consultation, exchange of information, research and development, and export promotion.


International Communications Satellite Organization

The organization formed under a multilateral agreement which owns, maintains, and operates the global satellite system used by over 100 participating countries. COMSAT is the United States' representative to and participant in Intelsat.


International Confederation of Free Trade Unions

ICFTU consists of 144 national organizations with the goal of promoting the trade union movement.


International Congress Office

The ICO is a US Travel & Tourism Administration office that persuades international associations to select the US as venues for their meetings. The ICO operates out of the American Embassy in Paris.


International Court of Justice

ICJ, also known as the World Court, is made up of 15 judges elected by the United Nations General Assembly and Security Council to represent all principal legal systems. It is the primary judicial organ of the UN.


International Criminal Police Organization

INTERPOL is made up of 152 members with the goal of promoting international cooperation between criminal police authorities.


International Development Association

The IDA is an affiliate of the World Bank Group that was created in 1959 to lend money to developing countries at no interest and for a long repayment period. By providing development assistance through soft loans, IDA meets the needs of many developing countries that cannot afford development loans at ordinary rates of interest and in the time span of conventional loans.


International Development Cooperation Agency

Coordinating body of all aspects of US economic assistance and cooperation with LDCs. IDCA consists of three parts: AID, TDP and the Overseas Private Investment Corporation (OPIC). The Administrator of AID currently serves as the Acting Director of IDCA.


International Electrotechnical Commission

The International Electrotechnical Commission was established in 1906 to deal with questions related to international standardization in the electrical and electronic engineering fields. The members of the IEC are the national committees, one for each country, which are required to be as representative as possible of all electrical interests in the country concerned: manufacturers, users, governmental authorities, teaching, and professional bodies. They are composed of representatives of the various organizations which deal with questions of electrical standardization at the national level. Most of them are recognized and supported by their governments.


International Emergency Economic Powers Act

The International Emergency Economic Powers Act (IEEPA) was enacted in 1977 to extend emergency powers previously granted to the President by the Trading with the Enemy Act of 1917 (which still authorized the President to exercise extraordinary powers when the United States is at war). IEEPA enables the President, after declaring that a national emergency exists because of a threat from a source outside the United States, to investigate, regulate, compel or prohibit virtually any economic transaction involving property in which a foreign country or national has an interest.


International Energy Agency

The IEA was founded in 1974 as a forum for energy cooperation among 21 member nations. The IEA helped participating countries prepare to reduce the economic risks of oil supply disruptions and to reduce dependence on oil through coordinated and cooperative research efforts.


International Finance Corporation

The IFC was established in 1956 as a member of the World Bank Group. The IFC promotes capital flow into private investment in developing countries.


International Frequency Registration Board

The International Frequency Registration Board (IFRB) is an organizational entity under the International Telecommunication Union (ITU). Located in Geneva, IFRB is composed of five full-time elected officials with a rotating chairmanship. IFRB maintains the International Frequency Register, monitors and analyzes all ITU records of frequency use around the world, and makes determinations as to whether or not certain systems are in compliance with the Radio Regulations.


International Fund for Agricultural Development

The IFAD is an UN specialized agency that promotes agricultural development. It is made up of 144 members divided into three categories.


International Investment

See Foreign Direct Investment in the United States.


International Labor Organization

The ILO, set up in 1919, became a specialized agency of the United Nations in 1946. The ILO seeks to promote improved working and living conditions by establishing standards that reduce social injustice.


International Maritime Organization

The International Maritime Organization, IMO, was established as a specialized agency of the United Nations in 1948. The IMO facilitates cooperation on technical matters affecting merchant shipping and traffic.


International Maritime Satellite Organization

INMARSAT is an international partnership of signatories from 62 nations. The partnership provides mobile satellite capacity to its signatories, who, in turn, use the capacity to provide worldwide mobile satellite services to their maritime, aeronautical and land-mobile customers -- including shipping, cruise, fishing, research and offshore exploration industries and airlines. INMARSAT began service in 1976. COMSAT is the US signatory to INMARSAT.


International Market Insights

International Market Insight, IMI, reports are prepared by staff at American embassies and consulates. An IMI covers developments in a single country that are of interest to traders and investors. Topics may include: new laws, policies and procedures, new trade regulations and marketplace changes.


International Market Research

See Industry Subsector Analysis.


International Monetary Fund

The IMF was established in 1946 to act as the banker of last resort for countries experiencing foreign exchange deficiencies, and to monitor currency exchange relationships among nations.


International Munitions List

The International Munitions List, IML, is one of three lists controlled by the 17-member Coordinating Committee on Multilateral Export Controls (CoCom). The IML contains 23 categories and is similar in coverage, but less restrictive, than the US Munitions List (USML).


International Olympic Committee

The IOC, established in 1894, consists of 167 members with the goals of promoting the Olympic ideals and administer the Olympic games.


International Organization for Migration

The IOM consists of 39 members and 25 observers with the aim of facilitating orderly international emigration and immigration.


International POW WOW

The International POW WOW promotes foreign tourism to the United States. It is an annual trade fair, sponsored by the Travel Industry Association of America, which brings together over 1,200 international buyers (tour operators and wholesalers) from 55 countries. The buyers are chosen through international selection criteria and purchase packages which they sell to their respective travel retailers.


International Standards Organization

The ISO, established in 1947, is a worldwide federation of national bodies, representing approximately 90 member countries. The scope of the International Standards Organization covers standardization in all fields except electrical and electronic engineering standards, which are the responsibility of the IEC, International Electrotechnical Commission. Together, the ISO and IEC form the specialized system for worldwide standardization -- the world's largest nongovernmental system for voluntary industrial and technical collaboration at the international level.

The result of ISO technical work is published in the form of International Standards. There are, for example, ISO standards for the quality grading of steel; for testing the strength of woven textiles; for storage of citrus fruits; for magnetic codes on credit cards; for automobile safety belts; and for ensuring the quality and performance of such diverse products as surgical implants, ski bindings, wire ropes, and photographic lenses.


International Telecommunication Union

The ITU is a specialized agency of the United Nations with responsibilities for developing operational procedures and technical standards for the use of the radio frequency spectrum, the satellite orbit, and for the international public telephone and telegraph network. There are over 160 member nations of the ITU. The Radio Regulations that result from ITU conferences have treaty status and provide the principal guidelines for world telecommunications. In the case of the US, they are the framework for development of the US national frequency allocations and regulations.

The ITU has four permanent organs: the General Secretariat, the International Frequency Registration Board (IFRB), the International Radio Consultative Committee (CCIR), and the International Telegraph and Telephone and Consultative Committee ITTCC).


International Telecommunications Satellite Organization

INTELSAT, created in 1964 under a multilateral agreement, is a nonprofit cooperative of (presently) 116 countries that jointly own and operate a global communications satellite system serving the world. The system is used primarily for international communications, and by many countries for domestic communications. In 1991, the INTELSAT system comprised a network of 16 satellites in geosynchronous orbit over the Atlantic, Indian and Pacific Ocean regions, with service to about 1,500 international and domestic earth station antennas.


International Telecommunications Services

These are transborder services provided via cable, radio, or satellite. These service offerings have traditionally been international message telephone service (IMTS), telex and telegraph, but during the 1980s have grown to include private leased lines, overseas value-added services, and international 800 services.


International Trade Commission

An independent US Government fact-finding agency with six commissioners who review and make recommendations concerning countervailing duty and antidumping petitions submitted by US industries seeking relief from imports that benefit unfair trade practices. Known as the US Tariff Commission before its mandate was broadened by the Trade Act of 1974.


International Traffic in Arms Regulations

The International Traffic in Arms Regulations, ITAR, are administered by the State Department to control the export of weapons and munitions.


International Value-Added Network Services

IVANS include advanced telecommunications services, such as voice mail and electronic banking. IVANS agreements play a growing role in maintaining the competitiveness of American firms and provide benefits for consumers worldwide.


Investment Climate Statements

Investment climate statements, ICSs, are prepared occasionally by the commercial sections of the US embassies for the US & Foreign Commercial Service, covering 67 individual countries. The ICSs provide statistics and analysis of policies and issues effecting the climate for direct investment in the individual country.


Invisibles

This refers to areas of non-merchandise "invisible trade" that include expenses such as freight and insurance and most types of services and investment.


Invoice, Final

This invoice will take the place of the preliminary invoice after goods have arrived at destination and true weight/quantity/value is determined and agreed upon.


Invoice, Memorandum

Sometimes a memo (sent by the exporter to the importer in order to place a specific shipment and/or value on record) ends up being accepted as the final and correct statement of amount due and/or purchase or shipment made.


Invoice, Preliminary Provisional

Circumstances sometimes require that a so-called "preliminary" or "provisional" invoice be issued instead of a final, definitive invoice (e.g., when it is not possible at the time of shipment to determine the final weight/quantity/value of the goods being shipped, when settlement can only be made after importer receives goods and weighs them, etc.).


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.


Islamic Development Bank

IDB consists of 44 members with the goal of promoting Islamic economic aid and social development.


JCIT

Joint Committee for Investment & Trade.


JDB

Japan Development Bank.


JEIC

Japan Export Information Center.


JETRO

Japan External Trade Organization.


JEXIM

The Export-Import Bank of Japan.


JICA

Japan International Cooperation Agency.


Japan Corporate Program

The Japan Corporate Program was initiated (by the US Department of Commerce) to help increase US exports to Japan. The program was initiated in 1991, following selection of 20 companies to participate in a five-year pilot project to improve US knowledge of, and access to, the Japanese market.

As part of the five-year commitment to the program, the companies arrange four visits a year to Japan, including two by their chief executives; publish their product literature in Japanese; participate in at least one trade promotion event in Japan each year; and modify products to enhance consumer acceptance and promote sales in Japan.

Commerce supports the 20 firms with market data, arranges introductory meetings with prospective Japanese buyers, and recommends market development strategies.


Japan Development Bank

The Japan Development Bank was founded in 1951 to aid in developing and diversifying the Japanese economy. The JDB is a non-profit organization owned entirely by the Japanese Government. US companies may participate in JDB funding activity under the Bank's Loan Division in the International Department. The International Department disburses loans to foreign companies under two primary loan programs: Promotion of Foreign Direct Investment in Japan and Facilities for Import Products. The other loan programs of JDB are also available to foreign-owned companies under the principle of equal treatment of clients regardless of nationality.


Japan Export Information Center

The Japan Export Information Center (JEIC) provides information on doing business in Japan, market entry alternatives, market information and research, product standards and testing requirements, tariffs and nontariff barriers. The Center maintains a commercial library and participates in private- and government-sponsored seminars on doing business in Japan. JEIC is operated by the International Trade Administration of the Department of Commerce.


Japan External Trade Organization

Although legally under the aegis of the Ministry of International Trade and Industry (MITI), JETRO administers the export programs of the Japanese Government independently. MITI subsidizes about 60 percent of JETRO's total annual expenditures and, technically, has final decision-making authority over JETRO management and programs. Originally established to help Japanese firms export, JETRO also assists American companies seeking to export to Japan and promotes Japanese direct investment in the United States and US direct investment in Japan.


Japan International Cooperation Agency

The Japan International Cooperation Agency, JICA, was established in 1974 to administer the bilateral grant portion of Japan's Official Development Assistance (ODA). JICA covers both: (a) grant aid cooperation (offered without the obligation of repayment) and (b) technical cooperation (offering trainees, experts, equipment, project-type technical cooperation, and development studies).


Joint Committee for Investment & Trade

The JCIT was established in 1990 to demonstrate US and Mexican commitment to greater economic cooperation. The Committee identifies trade and investment opportunities and coordinates trade promotion events.


Joint Venture

A business undertaking in which more than one firm share ownership and control of production and/or marketing.


KDD

Kokusai Denshin Denwa.


Keidanren

Keidanren (the Japanese Federation of Economic Organizations) was established in 1946 as a private, non-profit economic organization representing virtually all branches of economic activity in Japan.


Keiretsu

Keiretsu refers to the horizontally and vertically linked industrial structure of post-war Japan. The horizontally linked groups include a broad range of industries linked via banks and general trading firms. There are eight major industrial groups, sometimes referred to as "Kigyo Shudan": Mitsubishi, Mitsui, Sumitomo, Fuyo, DKB, Sanwa, Tokai and IBJ. The vertically linked groups (such as Toyota, Matshushita and Sony) are centered around parent companies, with subsidiaries frequently serving as suppliers, distributors, and retail outlets.

Common characteristics among the groups include crossholding of company shares, intra-group financing, joint investment, mutual appointment of officers, and other joint business activities. The keiretsu system emphasizes mutual cooperation and protects affiliates from mergers and acquisitions. Ties within groups became looser after the oil shocks of the 1970s as a result of decreasing dependence on banks for capital.


Kokusai Denshin Denwa

The Kokusai Denshin Denwa Company (KDD) was established in 1953 but traces its history back to 1871 and the establishment of its predecessor organizations. For more than a century, the company was Japan's sole supplier of international telecommunications services and today remains Japan's leading international carrier. KDD is Japan's signatory to INTELSAT and INMARSAT.


L/C

Letter of Credit.


LAES

Latin American Economic System.


LAFTA

Latin American Free Trade Association.


LAIA

Latin American Integration Association.


LAS

League of Arab States.


LASH

Lighter-Aboard-Ship. A specially constructed vessel equipped with an overhead crane for lifting barges.


LCL

Less than Container Load.


LDC

Less Developed Country.


LIBOR

London Interbank Offered Rate.


LLDCs

Least Developed Countries.


LORCS

League of Red Cross and Red Crescent Societies.


LTFV

Less Than Fair Value.


Land Bridge

The movement of goods from one port to another partially by land and partially by water.


Landing Certificate

This certificate is issued by consular officials of some importing countries at the point or place of export when the subject goods are exported under bond.


Latin American Economic System

LAES consists of 26 member states with the goal of promoting economic and social development through regional cooperation.


Latin American Free Trade Association

See Latin American Integration Association.


Latin American Integration Association

LAIA was created by the 1980 Montevideo Treaty as a replacement to the Latin American Free Trade Association (LAFTA). LAFTA was rejected because members felt its rules governing integration trends were too rigid. LAIA, an association involving Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela, since has declined as a major Latin American integration effort in favor of regional efforts, such as Mercosur.


League of Arab States

See Arab League.


League of Red Cross and Red Crescent Societies

LORCS, established in 1919, is made up of 147 members and 2 associate members with the goal of providing humanitarian aid in peacetime.


Legal Weight

The weight of the goods plus any immediate wrappings which are sold along with the goods (e.g., the weight of a tin can as well as its contents).


Less Developed Country

An LDC is a country with low per capita gross national product. Terms such as third world, poor, developing nations and underdeveloped have also been used to describe less developed countries.


Lesser Developed Countries

The classification LLDC was developed by the United Nations to give some guidance to donor agencies and countries about an equitable allocation of foreign assistance. The criteria for designating a country an LLDC, originally adopted by the UN Committee for Development Planning in 1971, have been modified several times. Criteria have included low: per-capita-income, literacy, and manufacturing share of the country's total gross domestic product. There is continuing concern that the criteria should be more robust and less subject to the possibility of easy fluctuation of a country between less developed and least developed status.


Letter of Advice

See Advice, Letter of.


Letter of Credit

A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made.

•	An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit.

•	A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary.

•	A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a US bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the US bank in case the foreign buyer or bank defaults.

•	A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.


Letter of Hypothecation

When a bank discounts a draft, it obtains only the documents and not the goods as collateral. However, if the bank requires the drawer to sign a "letter of hypothecation" the bank obtains possession of the goods themselves and can dispose of them if the drawee does not honor the draft. When this happens, the bank sends the "letter of hypothecation" to its agents or branch abroad, who can then sell the goods if the draft is not honored.


Letter of Indemnity

When a bank does not wish to accept a so-called "foul bill of lading" the shipper (so that there shall be nothing to prevent the draft in question from being discounted, or for any other reason) may obtain a clean bill of lading. To do so, the shipper signs a so-called "letter of indemnity," on the basis of which the shipper may obtain the clean bill of lading although the dock or mate's receipt, given on delivery of the goods to dock or ship, showed that the shipment was damaged or in bad condition.


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.


Life-Cycle Processing

An accounting approach in which a company sets product prices based on recovering costs over the life cycle of the product. US authorities dispute the validity of this approach because projections of future yield improvements cannot be verified at the time of dumping calculations.


Lighter

An open or covered barge towed by a tugboat and used mainly in harbors and inland waterways.


Limited Appointment

Limited appointees to the US & Foreign Commercial Service (or to other foreign services) are persons from the private sector or from the federal government who are non-career officers assigned overseas for a limited time.


Line Release System

The Line Release System, a part of Customs' Automated Commercial System, is designed for the release and tracking of shipments through the use of personal computers and bar code technology. To qualify for line release, a commodity must have a history of invoice accuracy, and be selected by local Customs districts on the basis of high volume. To release the merchandise, Customs reads the bar code into a personal computer, verifies that the bar code matches the invoice data, and enters the quantity. The cargo release is transmitted to the Automated Commercial System, which establishes an entry and the requirement for an entry summary, and provides the Automated Broker Interface system participants with release information.


Linear Tariff Cut

A reduction in all tariff rates by the same percentage.


Liquidation System

The Liquidation System, a part of Customs' Automated Commercial System, closes the file on each entry and establishes a batch filing number which is essential for recovering an entry for review or enforcement purposes. An entry liquidation is a final review of the entry. P.L. 95-410 (Customs Procedural Reform and Simplification Act of 1978) requires that all liquidations be performed within one year from the date of consumption entry or final withdrawal on a warehouse entry. Three one-year extensions are permitted.


Lome Convention

A 1975 agreement between the European Union (EU) and 68 African, Caribbean and Pacific states (mostly former colonies of the EU members). The agreement covers some aid provisions as well as trade and tariff preferences for the ACP countries when shipping to the EU. Lome grew out of the 1958 Treaty of Rome's "association" with the 18 African colonies/countries that had ties with Belgium and France. The ACP members are: Angola, Bahamas, Barbados, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Cote d'Ivoire, Djibouti, Dominica, Equatorial Guinea, Ethiopia, Fiji, Gabon, Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Jamaica, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius,  Mozambique, Namibia, Niger, Nigeria, Papua New Guinea, Rwanda, St. Lucia, St. Vincent & the Grenadines, Samoa, Sao Tome & Principe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Trinidad & Tobago, Uganda, Zaire, Zambia and Zimbabwe.


London Interbank Offered Rate

Abbreviated as LIBOR, the interest rate that major international banks charge each other for large-volume loans of Eurodollars or dollars on deposit outside the United States.


MC

Minister Counsellor.


MCTL

Militarily Critical Technologies List.


MDB

Multilateral Development Bank.


MFA

Multi-Fiber Arrangement.


MFN

Most Favored Nation Treatment.


MHW

Ministry of Health & Welfare.


MIF

Multilateral Investment Fund.


MIGA

Multinational Investment Guarantee Agency.


MIPRO

Manufactured Imports Promotion Organization.


MITI

Ministry of International Trade & Industry.


MKR

Matchmaker Program.


MOCP

Market-Oriented Cooperation Plan.


MOFERT

Ministry of Foreign Economic Relations & Trade.


MOSS

Market-Oriented, Sector-Selective.


MOU

Memorandum of Understanding.


MPA

Major Projects Agreement.


MPP

Market Promotion Program.


MPT

Ministry of Posts & Telecommunications.


MRA

Mutual Recognition Agreement.


MTAG

Missile Technology Advisory Group.


MTCR

Missile Technology Control Regime.


MTEC

Missile Technology Export Control Group.


MTN

Multilateral Trade Negotiations.


MTO

Multilateral Trade Organization.


Manifest

This document lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargo of a vessel, which is used principally for customs purposes.


Manufactured Imports Promotion Organization

MIPRO is a nonprofit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector, to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (a) holding imported product trade exhibitions for buyers and the general public; (b) disseminating information regarding imported products and the Japanese market; and (c) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods.


Maquiladora

The maquiladora (or "in-bond" industry) program allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports).

In 1989, the Mexican government liberalized the maquiladora program to make this a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment.


Marine Cargo Insurance

Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy and various other causes.


Market Access

Market access refers to the openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods.


Market Disruption

Market disruption refers to the situation which is created when a surge of imports in a given product line causes sales of domestically produced goods in a particular country to decline to an extent that the domestic producers and their employees suffer major economic hardship.


Market Promotion Program

The Market Promotion Program (MPP) was authorized by the Food, Agriculture, Conservation & Trade Act of 1990 and is administered by the US Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.)


Market-Oriented Cooperation Plan

The MOCP, established in 1990, is aimed at improving long-term business relations between Japan's automotive manufacturers and US auto parts suppliers.


Market-Oriented Sector-Selective

The MOSS talks were begun in 1985 as bilateral trade discussions between the US and Japan in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (a) telecommunications, (b) medical equipment and pharmaceuticals, (c) electronics, (d) forest products, and (e) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes.


Marking (or Marks)

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


Marks of Origin

The physical markings on a product that indicate the country of origin where the article was produced. Customs rules require marks of origin of most countries.


Mask Work

This is a new type of intellectual property. It is, in essence, the design of an electrical circuit, the pattern of which is transferred and fixed in a semiconductor chip during the manufacturing process.


Matchmaker Events

Matchmaker trade delegations are organized and led by the International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit US firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office.

The program includes US embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year.


Mate's Receipt

The mate's receipt is a receipt signed by a mate of the vessel, acknowledging receipt of cargo by the vessel. The individual in possession of the mate's receipt is entitled to the bill of lading which in due course is issued in exchange for that receipt.


Merchandise Trade Balance

See Balance of Payments.


Mercosur

Mercosur (Spanish; Mercosul in Portuguese; or Southern Common Market) is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Union's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. While in the Southern Cone, Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits.


Micro-Bridge

Cargo moving on one bill of lading from a foreign port to an inland destination.


Military Assistance Program

See Conventional Arms Transfer.


Military Critical Technologies List

The MCTL is a document listing technologies that the US Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application and maintenance know-how. Military justification for each entry is included in a classified version of the list.


Mini-Bridge

Cargo moving on one bill of lading from a foreign port through two US ports and to an inland destination.


Minimum Stocking Order

The smallest number of units that must be bought by a foreign entity to qualify as an export sales representative. Can also refer to the dollar value of the purchase.


Ministry of Foreign Economic Relations & Trade

The People's Republic of China (PRC) Ministry of Foreign Economic Relations & Trade (MOFERT) was established in 1982 by combining former separate ministries. MOFERT implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. MOFERT does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do.


Ministry of Health & Welfare

Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures.


Ministry of International Trade & Industry

MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO).

The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan.


Ministry of Posts & Telecommunications

MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market.


Missile Technology Control Regime

The purpose of the MTCR is to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue.

In 1987, Canada, France, Germany, Japan, the UK and the US agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway and Spain. The MTCR does not have permanent organizations but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls.

Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use).


Mixed Credit

Mixed credit refers to the practice of combining concessional and market-rate export credit as an export promotion mechanism.


Most Favored Nation Treatment

A commitment that a country will extend to another country the lowest tariff rates it applies to any other country. All contracting parties undertake to apply such treatment to one another under Article I of GATT. When a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment.

This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs & Trade or MFN treatment is specified in a bilateral agreement.


Motor Carrier

Refers to a trucking company.


Multi-Fiber Arrangement

An international umbrella compact, authorized by WTO (formerly GATT), that allows contracting parties to negotiate bilaterally quantitative restrictions on textile imports (which normally would be considered contrary to WTO provisions) to the extent the importing country considers them necessary to prevent market disruption. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand.


Multilateral Agreement

An international compact in which three or more parties participate.


Multilateral Investment Fund

Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms and encourages domestic and foreign investment in Latin America and the Caribbean.


Multilateral Investment Guarantee Agency

MIGA was established in 1988 as a part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues.


Multilateral Trade Negotiations

A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs & Trade since 1947. (See Rounds.)


Multiple Consignee Container

A container with cargo for more than one consignee.


NACC

North Atlantic Cooperation Council.


NAFTA

North American Free Trade Agreement.


NAM

Non-Aligned Movement.


NASDA

National Association of State Development Agencies.


NATO

North Atlantic Treaty Organization.


NC

Nordic Council.


NDAA

National Defense Authorization Act.


NDER

National Defense Executive Reserve.


NIB

Nordic Investment Bank.


NIC

National Intelligence Council.


NICs

Newly Industrializing Countries.


NIE

Newly Industrialized Economy


NIPA

National Income and Product Accounts.


NME

Non-Market Economy.


NNPA

Nuclear Non-Proliferation Act.


NNPT

Nuclear Non-Proliferation Treaty.


NPIS

New Product Information Service.


NPT

Nuclear Non-Proliferation Treaty.


NRPB

Natural Resource Based Products.


NSC

National Security Council.


NSD

National Security Directive.


NSG

Nuclear Suppliers Group (also LSG).


NSO

National Security Override.


NTBs

Nontariff Barriers.


NTDB

National Trade Data Bank.


NTE

National Trade Estimates Report; New-To-Export.


NTM

New-To-Market.


NTMs

Nontariff Measures


NTT

Nippon Telegraph & Telephone Corporation


NVOCC

Non-Vessel Operating Common Carrier.


National Association of State Development Agencies

The National Association of State Development Agencies, NASDA, was formed in 1946 to provide a forum for directors of state economic development agencies to exchange information, compare programs, and deal with issues of mutual interest. NASDA's organization includes International Trade and Foreign Investment components. Trade activities include maintenance of a State Export Program Database.


National Intelligence Council

The NIC is comprised of the US National Intelligence Officers and concentrates on problems of particular geographic regions and functional areas such as economics and chemical/biological warfare.


National Security Controls

National security controls restrict exports of US goods and technology which would make a significant contribution to the military potential of another country and thus be detrimental to Western countries' national security.


National Security Council

The NSC was established by the National Security Act of 1947 to advise the President with respect to the integration of domestic, foreign and military policies relating to national security.


National Security Directive #53

NSD-53 deals with the export licensing process and sets specified time periods for resolving disputes on both national security and foreign policy export license applications. Under NSD-53, exports controlled on both of these grounds are subject to explicit timetables for interagency dispute resolution at the Sub-Cabinet level by the Advisory Committee on Export Policy (ACEP), and at the cabinet level by the Export Administration Review Board (EARB).

The Directive requires escalation to the ACEP not later than 100 days from the filing date of the applicant's application, and if the disagreement cannot be resolved by the ACEP, for review and resolution by the EARB within 35 days of the date of the ACEP meeting. Cases not resolved by the EARB must be escalated to the President for resolution. The new procedures also permit an agency to refer a case at any stage of the dispute resolution process to the NSC for a 30 day policy review.


National Security Directives

NSDs provide policy or procedural guidance and are signed by the President. In 1989, the President reorganized the national security council committee process (separate from the EARB). As reorganized, under the NSC, there are committees for CoCom, terrorism, nonproliferation, etc. NSDs were known as National Security Decision Directives, NSDDs, before President Bush's reorganization. NSD-1 reorganized the process; NSD-10 established the committees. The scope of coverage and the players are about the same under the NSD and NSDD processes.


National Security Override

In some cases, despite a finding of foreign availability of a controlled commodity, control is maintained over exporting the commodity because it is deemed a national security sensitive item. The term national security override is used to describe this circumstance.

The term has also been used in other contexts. For example, under a 1990 directive, the President tasked the interagency control groups to move as many dual use items from the State Department's International Munitions List to the Commerce Department's Commerce Control List. In some circumstances, a national security override is applied to prevent transfer of a particular item.


National Tourism Policy Act

Legislation, passed in 1981, that created the US Travel and Tourism Administration and required the establishment of the Tourism Policy Council and the Travel and Tourism Advisory Board.


National Trade Data Bank

The NTDB contains international economic and export promotion information supplied by 15 US agencies. Data are updated monthly and are presented in one of three standard formats: text, time series or matrix. The NTDB contains data from the Departments of Agriculture (Foreign Agricultural Service), Commerce (Bureau of the Census, Bureau of Economic Analysis, International Trade Administration, and National Institute for Standards & Technology), Energy, Labor (Bureau of Labor Statistics), the Central Intelligence Agency, Eximbank, Federal Reserve System, US International Trade Commission, Overseas Private Investment Corporation, Small Business Administration, the US Trade Representative and the University of Massachusetts (MISER data on state origins of exports).


National Trade Estimates Report

An annual report by USTR that identifies significant foreign barriers to and distortions of trade.


National Treatment

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


Natural Resource Based Products

This GATT Negotiating Group was formed as a direct result of pressure from resource-rich LDCs to have an additional forum to deal with their special concerns, including the removal of barriers to trade in natural resource-based products. There are different interpretations among participants as to whether this group includes only three traditional product areas examined during the early 1980s GATT Work Program on NRBPs: non-ferrous metals and minerals; fish and fish products; and wood and wood products, or whether the Group may also discuss barriers in nontraditional product areas such as energy-based products.


Net Foreign Investment

Net foreign investment is the sum of US exports of goods and services, receipts of factor income, and capital grants received by the United States (net), less the sum of imports of goods and services by the United States, payments of factor income and transfer payments to foreigners (net). It may also be viewed as the acquisition of foreign assets by US residents, less the acquisition of US assets by foreign residents. It includes the BPA statistical discrepancy.


Net Tare Weight

See Net Weight.


Net Weight (Actual Net Weight)

Weight of the goods alone without any immediate wrappings (e.g., the weight of the contents of a tin can without the weight of the can).


New-To-Export

As defined by the International Trade Administration, a new-to-export action is one that results from documented assistance to a company that assists the client's first verifiable export sale. Either the company has not exported to any destination during the past 24 months or prior exports have resulted from unsolicited orders or were received through a US-based intermediary.


New-To-Export Firms

Used to describe entities that have never exported previously, or that have sold minimum quantities of goods/services in foreign markets.


New-To-Market

As defined by the International Trade Administration, a reportable new-to-market export action is one that results from documented assistance to an exporter that facilitates a verifiable sale in a new foreign market. Either the company has not exported to that market during the past 24 months or previous exports to that market have resulted from unsolicited orders or were received through a US based intermediary.


Newly Industrializing Countries

The term, originated by the Organization for Economic Cooperation & Development (OECD), describes nations of the Third World that have enjoyed rapid economic growth and can be described as "middle-income" countries (such as Singapore and the Republic of Korea).


Nippon Telegraph & Telephone Corporation

NTT is Japan's largest telecommunications enterprise and was converted from a public corporation to a private enterprise in 1985. Although competition has been allowed, the Japanese Government still owns the majority of NTT stock and postponement of a decision in NTT divestiture is an issue of considerable importance to market access by foreign companies. NTT was established in 1952.


Nomenclature of the Customs Cooperation Council

The customs tariff used by many countries worldwide. It was formerly known as the Brussels Tariff Nomenclature.


Non-Dumping Certificate

Some countries may require, for protection against the dumping of certain types of merchandise or products, the issuance of so-called certificates of non-dumping.


Non-Vessel Operating Common Carrier (NVOCC)

A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port.


Nonaligned Movement

NAM consists of 102 members, 9 observers and 11 guests with the goal of political and military cooperation apart from the traditional East or West blocs.


Nontariff Barriers

NTBs are market access barriers that result from prohibitions, restrictions, conditions or specific requirements and make exporting products difficult and/or costly. The term covers any restriction or quota, charge, or policy, other than traditional customs duties, domestic support programs, discriminatory labeling and health standards, and exclusive business practices which limit the access of imported goods. NTBs may result from government or private sector actions.


Nontariff Measures

While there is no specific definition of an NTM, some of the most commonly-used NTMs include import quotas or other quantitative restrictions, non-automatic import licensing, customs surcharges or other fees and charges, customs procedures, export subsidies, unreasonable standards or standards-setting procedures, government procurement restrictions, inadequate intellectual property protection, and investment restrictions.

Participants in the Tokyo Round attempted to address these barriers through the negotiations of a number of WTO (formerly GATT) codes, open for signature to all WTO members. Seven codes were negotiated during the Tokyo Round, covering customs valuations, import licensing, subsidies and countervailing duties, antidumping duties, standards, government procurement and trade in civil aircraft.

Although the Tokyo Round codes had alleviated some of the problems caused by non-tariff measures, overall use of NTMs has increased since conclusion of the Tokyo Round.


Nordic Council

The Nordic Council, established in 1952, is directed toward supporting cooperation among Nordic countries in communications, cultural, economics, environmental,, fiscal, legal and social areas. Members include: Denmark, Finland, Iceland, Norway and Sweden.


Nordic Investment Bank

NIB's goal is the promotion of economic cooperation and development among its members (Denmark, Finland, Iceland, Norway and Sweden).


North American Free Trade Agreement

NAFTA is a proposed free trade agreement that would comprise Canada, the US and Mexico, exceeding 360 million consumers and a combined output of $6 trillion -- 20 percent larger than the European Union.


North Atlantic Cooperation Council

NACC, established in 1991, is an extension of NATO made up of 35 members with the purpose of forming a forum to discuss cooperation concerning mutual political and security issues.


North Atlantic Treaty Organization

NATO members include Belgium, Canada, Denmark, France (which has only partial membership), Greece, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Turkey, United Kingdom and Germany. With the end of the "cold war," NATO's role, originally defense-oriented is being redefined.


Nuclear Energy Agency

The NEA, with headquarters in Paris, is a companion organization to the IEA and an element of OECD. NEA promotes the safe and effective use of nuclear energy through the exchange of information among technical experts, the sharing of analytical studies, and undertaking joint research and development projects by member countries.


Nuclear Non-Proliferation Act

Among other actions, this Act made the US Energy Department responsible for approving arrangements for nuclear exports and transfers. Each arrangement requires State Department concurrence, as well as consultations with the Arms Control and Disarmament Agency, the NRC, and the Departments of Defense and Commerce.


Nuclear Non-Proliferation Treaty

The NPT became effective in 1970 and was intended to limit the number of states with nuclear weapons to five: the US, the Soviet Union, Britain, France and China. In doing so, the NPT attempts to: (a) prevent nuclear weapons sales by not assisting other nations with nuclear weapons development; (b) halt the nuclear weapons development programs of non-nuclear weapons states; and (c) promote nuclear disarmament and the peaceful use of nuclear technologies and materials. Over 140 states have pledged not to acquire nuclear weapons and to accept the safeguards of the International Atomic Energy Agency over all their nuclear materials.

The treaty, however, is not of indefinite duration. One of the provisions of the treaty was to convene a conference 25 years after entry into force to decide whether the treaty would continue indefinitely or be extended for a specified time.


Nuclear Regulatory Commission

The NRC regulates the transfer of nuclear facilities, materials and parts with uniquely nuclear applications (such as items associated with nuclear reactors). Energy regulates the transfer of information relating to nuclear technology. The State Department controls defense articles and services, such as nuclear weapons design and test equipment. Commerce controls a range of dual-use items with potential nuclear application.

Validated licensing controls are in effect for commodities and technical data identified to be useful in the design, development, production or use of nuclear weapons or nuclear explosive purposes. These commodities compose the "Nuclear Referral List" (NRL). Any item under national security-based licensing requirements and intended for a nuclear-related end-use/end-user is also subject to review. In addition, any commodity that will be used in a sensitive nuclear activity is also subject to validated licensing controls.

License applications for the export of NRL items as well as applications that may involve possible nuclear uses are reviewed by Commerce in consultation with Energy. When either Department believes that the application requires further review, the application is referred to the Subgroup on Nuclear Export Coordination (SNEC). The SNEC is comprised of representatives from State, Defense, ACDA and the NRC. See Nuclear Suppliers Group; Zangger Committee.


Nuclear Suppliers Group

The NSG is an organization of nuclear supplier nations which coordinates exports of nuclear materials and equipment with the International Atomic Energy Agency (IAEA) inspectorate regime. The reason for creating the NSG was to allow member states some flexibility (which they do not enjoy in the Zangger Committee) in controlling items to non-nuclear weapons states.

The NSG's independence from the NPT enables NSG to enlist the cooperation of supplier states that are not signatories to the NPT and thus not involved in the nuclear export control activities of the Zangger Committee. The NSG's control list is more comprehensive than the Zangger Committee's "trigger list"; it requires the imposition of safeguards on exports of nuclear technology in addition to nuclear materials and equipment.


OAPEC

Organization of Arab Petroleum Exporting Countries.


OAS

Organization of American States.


OAU

Organization of African Unity.


OBR

Overseas Business Report.


OC

Operating Committee.


ODA

Official Development Assistance.


OECD

Organization for Economic Cooperation & Development.


OECS

Organization of East Caribbean States.


OEL

Office of Export Licensing.


OFAC

Office of Foreign Assets Control.


OIC

Organization of the Islamic Conference.


OMA

Orderly Marketing Agreement.


OMC

Office of Munitions Control.


OPANAL

Organization for the Prohibition of Nuclear Weapons in Latin America and the Caribbean.


OPEC

Organization of Petroleum Exporting Countries.


OPIC

Overseas Private Investment Corporation.


OTM

Old-To-Market.


Obligor

One that places himself under a legal obligation.


Ocean Bill of Lading

A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership which can be bought, sold, or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order" Bill-of-Lading.

•	A Clean Bill-of-Ladingis issued when the shipment is received in good order. If damaged or a shortage is noted, a clean bill-of-lading will not be issued.

•	An On Board Bill-of-Ladingcertifies that the cargo has been placed aboard the named vessel and is signed by the master of the vessel or his representative. On letter of credit transactions, an On Board Bill-of-Lading is usually necessary for the shipper to obtain payment from the bank. When all Bills-of-Lading are processed a ship's manifest is prepared by the steamship line. This summarizes all cargo aboard the vessel by port of loading and discharge.

•	An Inland Bill-of-Lading(a waybill on rail or the "pro forma" bill-of-lading in trucking) is used to document the transportation of the goods between the port and the point of origin or destination. It should contain information such as marks, numbers, steamship line, and similar information to match with a dock receipt.


Office of Munitions Control

See Defense Trade Controls.


Official Development Assistance

Financial flows to developing countries and multilateral institutions provided by official agencies of national, state or local governments. Each transaction must be:

Administered with the promotion of the economic development and welfare of developing countries as its main objective; and

Concessional in character and contain a grant element of at least 25 percent.


Offsets

In trade of defense items, "offsets" are industrial compensation practices mandated by many foreign governments when purchasing US defense systems. Types of offsets include mandatory coproduction, subcontractor production, technology transfer, countertrade, and foreign investment. Countries require offsets for a variety of reasons: to ease (or "offset") the burden of large defense purchases on their economies, to increase domestic employment, to obtain desired technology or to promote targeted industrial sectors.

In non-defense trade, governments sometimes impose offset requirements on foreign exporters, as a condition for approval of major sales agreements in an effort to either reduce the adverse trade impact of a major sale or to gain specified industrial benefits for the importing country. In these circumstances, offset requirements generally take one of two forms. In one formulation, an exporter may be required to purchase a specified amount of locally-produced goods or services from the importing country.

For example, a commercial aircraft manufacturer seeking sales to an airline in another country might be required to purchase products as different from airplanes as canned hams. In other instances, an exporter might be required to establish manufacturing facilities in the importing country or to secure a specified percentage of the components used in manufacturing his product from established local manufacturers.


Old-To-Market

As defined by the International Trade Administration, old-to-market is a term which refers to committed/experienced larger-scale firms. A significant portion of manufacturing capability may be foreign sourced. Export sales volume is often in excess of 15 percent of total sales.


Open Account

A trade arrangement in which goods are shipped to a foreign buyer before, and without written guarantee of, payment. Because this method poses an obvious risk to the supplier, it is 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 a single shipment.


Operating Committees

There are four Operating Committees (OCs) which are the first step in resolving interagency disputes over the disposition of export license applications. The Operating Committees are: (a) the State Department's Subgroup on Nuclear Export Coordination (SNEC), (b) State's working group on Missile Technology, (c) State's working group on Chemical and Biological Warfare, and (d) Commerce's operating committee on all other dual-use items. Operating Committees must make recommendations within 90 days of the date of the filing of an export license application. Operating Committees generally meet a couple of times per month.


Operation Exodus

Operation Exodus is a US Customs Service export enforcement program that was developed in 1981 to help stem the flow of the illegal export of US-sourced arms and technology to the Soviet bloc and other prohibited destinations.


Orderly Marketing Agreement

A bilateral agreement between governments by which one government limits exports to the other. Similar to a voluntary export restriction agreement or a voluntary restraint agreement. Used to address injury to a domestic industry.

Contracts negotiated between two or more governments, in which the exporting nation undertakes to ensure that international trade in specified "sensitive" products will not disrupt, threaten or impair competitive industries or workers in importing countries.


Organization for Economic Cooperation & Development

The OECD is the primary forum for the discussion of common economic and social issues confronting the United States, Canada, Western Europe, Japan, Australia and New Zealand. It was founded in 1960 as the successor to the Organization for European Economic Cooperation which oversaw European participation in the Marshall Plan. The OECD's fundamental objective is "to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries while maintaining financial stability and thus contribute to the world economy." Members currently include: Australia, Austria, Belgium-Luxembourg, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.


Organization of African Unity

The OAU was founded in 1963 with 32 African countries as original members; it had 51 members in 1990. The Organization aims to further African unity and solidarity, to coordinate political, economic, cultural, scientific and defense policies; and to eliminate colonialism in Africa. Members include: Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central Africa Republic, Chad, Comoros, Congo, Cote d'Ivoire, Egypt, Equatorial Guinea, Ethiopia, Gabon, the Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome & Principe, Senegal, Seychelles, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zaire, Zambia, Zimbabwe.


Organization of American States

The OAS is a regional organization established in 1948 which promotes Latin American economic and social development. Members include the United States, Mexico and most Central American, South American and Caribbean nations. Members include: Antigua & Barbuda, Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba (participation suspended), Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, St. Christopher-Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, the United States, Uruguay and Venezuela.


Organization of Arab Petroleum Exporting Countries

OAPEC members include: Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria and the United Arab Emirates.


Organization of Eastern Caribbean States

OECS is made up of 8 members (Antigua and Barbuda, British Virgin Islands, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines) with the goal of promoting political, economic and defense cooperation.


Organization of Petroleum Exporting Countries_1

OPEC is made up of 13 member states (Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE and Venezuela) whose goal is the coordination of petroleum policies.


Organization of Petroleum Exporting Countries_2

An association of the world's oil-producing countries, formed in 1960. The chief purpose of OPEC is to coordinate the petroleum policies of its members: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.


Organization of the Islamic Conference

The OIC, established in 1971, promotes cooperation in cultural, economics, scientific and social areas among Islamic nations. Headquarters are located in Jeddah, Saudi Arabia. Members include: Afghanistan, Algeria, Bahrain, Bangladesh, Benin, Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cyprus, Djibouti, Egypt, Gabon, the Gambia, Guinea, Guinea-Bissau, Indonesia, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Niger, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Syria, Tunisia, Turkey, Uganda, the United Arab Emirates and Yemen.


Overseas Business Reports

These are marketing studies of America's major trading partners which provide updated export and economic outlooks, industrial trends, trade regulations, distribution and sales channels, transportation, and credit situation in individual countries.


Overseas Private Investment Corporation

OPIC is a government corporation which assists US private investments in less developed nations. These investments may include distributorships owned by US manufacturers which are consistent with the economic interests of both the United States and the developing country involved.


PCA

Permanent Court of Arbitration.


PCT

Patent Cooperation Treaty.


PEC

President's Export Council.


PEFCO

Private Export Funding Corporation.


PIP

Post-Initiated Promotion.


PLC

Pre-License Check.


POW WOW

The POW WOW is a trade show (held annually in the US and annually in Europe) which brings together US sellers and foreign buyers of travel-related services pertaining to travel to the United States.


PP

Purchase Price.


PPA

Protocol of Provisional Application.


PSV

Post-Shipment Verification.


PTA

Preferential Trade Agreement for Eastern and Southern Africa.


Pacific Rim

The Pacific Rim, referring to countries and economies bordering the Pacific ocean, is an informal, flexible term which generally has been regarded as a reference to East Asia, Canada, and the United States. At a minimum, the Pacific Rim includes Canada, Japan, the People's Republic of China, Taiwan and the United States. It may also include Australia, Brunei, Cambodia, Hong Kong/Macau, Indonesia, Laos, North Korea, South Korea, Malaysia, New Zealand, the Pacific Islands, the Philippines, Russia (or the Commonwealth of Independent States), Singapore, Thailand and Vietnam. As an evolutionary term, usage sometimes includes Mexico, the countries of Central America, and the Pacific coast countries of South America.


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 acknowledgement of delivery to them of a shipment made by parcel post.


Parcel Receipt

A parcel receipt shipment is an arrangement whereby a steamship company will, under rules and regulations established in the freight tariff of a given trade, accept small packages at rates below the minimum bill of lading, issuing a parcel receipt instead of a bill of lading.


Paris Club

Under the International Monetary Fund's General Agreements to Borrow (GAB), established in 1962, 10 of the wealthiest industrial members of the IMF agreed to lend funds to the IMF, up to specified amounts when supplementary resources are needed." The finance ministers of these countries comprise the Paris Club (also called the Group of 10).

The Paris Club has become a popular designation for meetings between representatives of a developing country that wishes to renegotiate its "official" debt (normally excluding debts owed by and to the private sector without official guarantees) and representatives of the relevant creditor governments and international institutions. These meetings usually occur at the request of a debtor country that wishes to consolidate all or part of its debt service payments falling due over a specified period. Meetings are traditionally chaired by a senior official of the French Treasury Department. Comparable meetings occasionally take place in London and in New York for countries that wish to renegotiate repayment terms for their debts to private banks. These meetings are sometimes called "creditor clubs."


Paris Convention

The Paris Convention for the Protection of Industrial Property, first adopted in 1883, is the major international agreement providing basic rights for protecting industrial property. It covers patents, industrial designs, service marks, trade names, indications of source, and unfair competition. The US ratified this treaty in 1903. The treaty provides two fundamental rights:

1. The principle of national treatment provides that nationals of any signatory nation shall enjoy in all other countries of the union the advantages that each nation's laws grant to its own nationals.

2. The right of priority enables any resident or national of a member country to, first, file a patent application in any member country and, thereafter, to file a patent application for the same invention in any of the other member countries within 12 months of the original filing and receive benefit of the original filing date.


Patent

A government grant of certain rights given to an inventor for a limited time in exchange for the disclosure of the invention. The most important of these rights is the one under which the patented invention can be made, used or sold only with the authorization of the patent owner.


Patent Cooperation Treaty

The Patent Cooperation Treaty (PCT) is a worldwide convention, open to the member of any Paris Convention country. The PCT entered into force in 1978. Unlike the Paris Convention, which addresses substantive intellectual property rights, the PCT addresses procedural requirements, aiming to simplify the filing, searching and publication of international patent applications.


Payload

The revenue producing part of the cargo.


Perils of the Sea

Those causes of loss of goods for which the carrier is not legally liable; the elemental risks of ocean transport.


Period of Investigation

The period, usually 6 months, beginning at least 150 days before and continuing 30 days after the first day of the month when an antidumping petition is filed, during which an exporter's home market (or third country) and United States prices and other appropriate facts are investigated to determine whether sales to the United States have been at less than fair value.


Permanent Court of Arbitration

PCA is made up of 75 member states with the goal of facilitating the settlement of international disputes.


Person

See Foreign Person.


Petrodollars

This term refers to oil earnings of petroleum-exporting countries in excess of their domestic needs and deposited in dollars in Western banks. However, a large part of the revenues that OPEC countries were unable to spend has been recycled to oil-importing countries in an attempt to balance international accounts.


Phytosanitary Inspection Certificate

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


Piggy Back (Pig)

To transport trailers via railway flat cars.


Pilferage

Refers to the stealing of part of the cargo.


Pool

A common supply of containers available to the shippers.


Population Commission

An ECOSOC organization dealing with population matters, made up of 27 members selected on a rotating basis.


Port Marks

An identifying set of letters, numbers and/or geometric symbols followed by the name of the port of destination, which are placed on export shipments.


Port of Entry

A port at which foreign goods are admitted into the receiving country.


Portfolio Investment

In general, any foreign investment that is not direct investment is considered portfolio investment. Foreign portfolio investment includes the purchase of voting securities (stocks) at less than a 10 percent level, bonds, trade finance, and government lending or borrowing, excluding transactions in official reserves.


Post-Initiated Promotion

This is a scheduled low budget trade promotion totally within resources at post, such as BIO, BFC or BSP.


Post-Shipment Verifications

PSVs conducted to determine that a commodity is being used for the purposes for which its export was licensed. Firms or individuals representing the end user, intermediate consignees or the purchaser may be subject to inquiries pertaining to the post-shipment verification. As part of the PSV process, BXA forwards a cable to the US embassy or consulate in the respective geographical location to conduct an on-site inspection to ensure that the commodity is physically present and used as stated in the application. Post-shipment verifications are usually conducted six-to-eight months subsequent to export of the commodity.


Pow Wow Selection Committee

A committee of private industry representatives in foreign countries which is responsible for selecting invitees to the International POW WOW.


Pre-License Checks

PLCs are conducted to determine that a request for a license to export a controlled commodity represents a legitimate order. Firms or individuals representing the licensee (the applicant), a consignee, the purchaser, an intermediate consignee or the end user may be subject to inquiries pertaining to the pre-license check. As part of the process, BXA forwards a cable to the US embassy or consulate in the respective geographical location to conduct an inspection or meet with company representatives to conduct inquiries on BXA's behalf.


Preferential Trade Agreement for Eastern and Southern Africa

PTA, established in 1981, has headquarters in Lusaka, Zambia. The PTA's 19 members are: Burundi, Comoros, Djibouti, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Rwanda, Somalia, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.


Preliminary Determination

The dumping determination by the International Trade Administration announcing the results of the investigation conducted within 160 days (or, in extraordinarily complicated cases, 210 days) after a petition is filed or an investigation is self-initiated by the International Trade Administration. If the International Trade Administration determines that there is a reasonable basis to believe or suspect that the merchandise under consideration is being sold or is likely to be sold at less than fair value, liquidation of all affected entries is suspended, and the matter is referred to the International Trade Commission.

"Preliminary determination" also refers to the decision by the ITC where there is a reasonable indication that an industry in the United States is materially injured, or threatened with material injury, or the establishment of an industry in the United States is materially retarded by reason of the imports of the merchandise which is the subject of the petition. The ITC must make its decision within 45 days after the date on which the petition is filed or an investigation is self-initiated by the International Trade Administration. If this determination is negative, the investigation is terminated.


President's Export Council

The President's Export Council (PEC) advises the President on government policies and programs that affect US trade performance; promote export expansion; and provide a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor and government sectors.

The Council was established by Executive Order of the President in 1973 and was originally composed only of business executives. The Council was reconstituted in 1979 to include leaders of the labor and agricultural communities, Congress and the Executive branch.

Twenty-eight private sector members serve "at the pleasure of the President" with no set term of office. Other members include five US Senators and five Members of the House, the Secretaries of Agriculture, Commerce, Labor, State, and Treasury, the Chairman of the Export-Import Bank and the US Trade Representative. The Council reports to the President through the Secretary of Commerce.


Private Export Funding Corporation

PEFCO works with Eximbank in using private capital to finance US exports. PEFCO acts as a supplemental lender to traditional commercial banking sources by making loans to public and private borrowers located outside of the United States who require medium and/or longer-term financing of their purchases of US goods and services.


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.).


Product Groups

Commodity groupings used for export control purposes. See Export Control Classification Number.


Profit

For the purposes of constructed value in an antidumping duty investigation or review, the profit used is the profit normally earned by a producer, from the country of export, of the same or similar product as that under investigation. By statute, the amount of profit shall not be less than 8 percent of the sum of general expenses and cost.


Project License

The Bureau of Export Administration uses the project license to authorize large-scale exports of a wide variety of commodities and technical data for specified activities. Those activities can include capital expansion, maintenance, repair or operating supplies or the supply of materials to be used in the production of other commodities for sale.


Protective Order

With regard to antidumping cases, a term for the order under which most business proprietary information is made available to an attorney or other representative of a party to the proceeding.


Protest System

The Protest System, a part of Customs' Automated Commercial System, tracks protests from the date they are received through final action. A protest is the legal means by which an importer, consignee or other designated part may challenge decisions made by a District Director of Customs.


Protocol

Ambassadors-at-large have a higher rank than a regular ambassador and are higher ranked on protocol than say the head of the CIA;

The Deputy Chief of Mission, almost always a career officer, has the personal rank of minister which is one rank down from Ambassador;

The rank of Minister-Counselor is just a little step below Minister;

The Deputy Principal Officer is a position at large consulates;

The Charge d'Affairs may either be acting, or indefinite, and is regarded as the acting Ambassador when the Ambassador is out of the country or when, for political reasons, an Ambassador is not appointed to a country;

An Attache may be either fairly high or fairly low; in terms of rank an attache can be anything; a military attache is of at least medium rank, but the military holds no diplomatic rank;

A consulate is not a diplomatic mission, nor is it autonomous; it is established at international organizations (such as USEC or NATO) or is used for reasons of diplomatic snobbery or pique.


Protocol of Provisional Application

A legal device that enabled the original contracting parties to accept general WTO (formerly GATT) obligations and benefits, despite the fact that some of their existing domestic legislation at that time discriminated against imports in a manner that was inconsistent with certain WTO provisions. Although meant to be "temporary," the Protocol has remained in effect; and countries that signed the PPA in 1947 continue to invoke it to defend certain practices that are otherwise inconsistent with their WTO obligations. Countries that acceded to the GATT after 1947 have also done so under the terms of the Protocol.


Purchase Price

A statutory term used in dumping investigations to refer to the United States sales price of merchandise which is sold or likely to be sold prior to the date of importation, by the producer or reseller of the merchandise for exportation to the United States. Certain statutory adjustments (e.g., import duties, commissions, freight) are made, if appropriate, to permit a meaningful comparison with the foreign market value of such or similar merchandise.


Purchaser

Within the context of export controls, the purchaser is that person abroad who has entered into the export transaction with the applicant to purchase the commodities or technical data for delivery to the ultimate consignee.


Purchasing Agent

An agent who purchases goods in his/her own country on behalf of large foreign buyers such as government agencies and large private corporations.


QRs

Quantitative Restrictions.


Quadrilateral Meetings

These are meetings involving trade ministers from the US, the European Union, Canada and Japan to discuss trade policy matters.


Quantitative Restrictions

Explicit limits, usually by volume, on the amount of a specified commodity that may be imported into a country, sometimes also indicating the amounts that may be imported from each supplying country. Compared to tariffs, the protection afforded by QRs tends to be more predictable, being less affected by changes in competitive factors. Quotas have been used at times to favor preferred sources of supply.

The WTO (formerly GATT) generally prohibits the use of quantitative restrictions, except in special cases, such as those cited in Articles XX (which permits exceptions to protect public health, national gold stocks, goods of archaeological or historic interest, and a few other special categories of goods), or Article XXI (which permits exceptions in the interest of "national security"), or for safeguard purposes, when the appropriate procedures in Article XIX have been followed


Quota

The quantity of goods which may be imported without restriction or additional duties or taxes.


Quotas and Quota System

Absolute quotas permit a limited number of units of specified merchandise to be entered or withdrawn for consumption during specified periods. Tariff-rate quotas permit a specified quantity of merchandise to be entered or withdrawn at a reduced rate during a specified period. Quotas are established by Presidential Proclamations, Executive Orders or other legislation.

The Quota System, a part of Customs' Automated Commercial System, controls quota levels (quantities authorized) and quantities entered against those levels. Visas control exports from the country of origin. Visa authorizations are received from other countries and quantities entered against those visas are transmitted back to them. Control of visas and quotas simplify reconciliation of other countries' exports and US imports.


Quotation

An offer to sell goods at a stated price and under stated terms.


RACE

Research in Advanced Communications in Europe.


RBPs

Restrictive Business Practices.


RCS

Regular Catalog Show.


RG

Rio Group. A consultation mechanism on regional Latin American issues.


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RWA

Returned Without Action.


Railroad Through Bill of Lading

The railroad in the US will issue a through export bill of lading (when goods originate in stipulated places in the US usually in the Midwest) for delivery overseas out of US West Coast ports.


Reciprocal Defense Procurement Memoranda of Understanding

Reciprocal memoranda of understanding (MOU) are broad bilateral umbrella MOUs that seek to reduce trade barriers on defense procurement. They usually call for the waiver of "buy national" restrictions, customs and duties to allow the contractors of the signatories to participate, on a competitive basis, in the defense procurement of the other country.

These agreements were designed in the late 1970s to promote rationalization, standardization, and interoperability of defense equipment within NATO. At that time, the MOUs were also intended to reduce the large defense trade advantage the United States possessed over the European allies. The first agreements were signed in 1978.


Reciprocity

The reduction of a country's import duties or other trade restraints in return for comparable trade concessions from another country.

Reciprocity includes the lowering of customs duties on imports in return for tariff concessions from other countries; the negotiated reduction of a country's import duties or other trade restraints in return for similar concessions from another country. Reciprocity is a traditional principle of WTO (formerly GATT) trade negotiations that implies an approximate equality of concessions accorded and benefits received among or between participants in a negotiation. In practice this principle applies only in negotiations between developed countries. Because of the frequently wide disparity in their economic capacities and potential, the relationship between developed and developing countries is generally not one of equivalence. The concept of "relative reciprocity" has emerged to characterize the practice by developed countries to seek less than full reciprocity from developing countries in trade negotiations.


Reconsignment

Changing the destination or consignee of a shipment while it is in transit.


Recourse

Defines the rights of a holder in due course of a negotiable instrument to force prior endorsers to meet their legal obligations by making payment on the instrument if it is dishonored by the maker, drawee or acceptor.


Reefer

A container with temperature controls.


Reexports

For export control purposes: the shipment of US origin products from one foreign destination to another.

For statistical reporting purposes: exports of foreign-origin merchandise which have previously entered the United States for consumption or into Customs bonded warehouses for US Foreign Trade Zones.


Request/Offer

A negotiating approach whereby requests are submitted by a country to a trading partner identifying the concessions another seeks through negotiations. Compensating offers are similarly tabled and negotiated by delegates of the countries involved.


Residual Restrictions

Quantitative restrictions that have been maintained by governments before they became contracting parties to WTO (formerly GATT) and, hence, permissible under the WTO "grandfather clause." Most of the residual restrictions still in effect are maintained by developed countries against the imports of agricultural products.


Restrictive Business Practices

Actions in the private sector, such as collusion among the largest international suppliers, designed to restrict competition so as to keep prices relatively high.


Retaliation

Action taken by a country whose exports are adversely affected by the raising of tariffs or other trade restricting measures by another country. The WTO permits an adversely affected contracting party (CP) to impose limited restraints on imports from another CP that has raised its trade barriers (after consultations with countries whose trade might be affected). In theory, the volume of trade affected by such retaliatory measures should approximate the value of trade affected by the precipitating change in import protection.


Returned Without Action

For export control purposes: the return of an export license application without action because the application is incomplete, additional information is required, or the product is eligible for a general license.


Reverse Preferences

Tariff advantages once offered by developing countries to imports from certain developed countries that granted them preferences. Reverse preferences characterized trading arrangements between the European Union and some developing countries prior to the advent of the Generalized System of Preferences (GSP) and the signing of the Lome Convention.


Revocable Letter of Credit

A letter of credit which can be cancelled or altered by the drawee (buyer) after it has been issued by the drawee's bank.


Revocation of Antidumping Duty Order & Termination of Suspended Investigation

An antidumping duty order may be revoked or a suspended investigation may be terminated upon application from a party to the proceeding. Ordinarily the application is considered only if there have been no sales at less than fair value for at least the two most recent years. However, the International Trade Administration may on its own initiative revoke an antidumping duty order or terminate a suspended investigation if there have not been sales at less than fair value for a period of 3 years.


Rollback

Rollback refers to an agreement among Uruguay Round participants to dismantle all trade-restrictive or distorting measures that are inconsistent with the provisions of the WTO (formerly GATT). Measures subject to rollback would be phased out or brought into conformity within an agreed time frame, no later than by the formal completion of the negotiations. The rollback agreement is accompanied by a commitment to "standstill" on existing trade-restrictive measures. Rollback is also used as a reference to the imposition of quantitative restrictions at levels less than those occurring in the present. See Standstill.


Rounds

Cycles of multilateral trade negotiations under WTO (formerly GATT), culminating in simultaneous agreements among participating countries to reduce tariff and non-tariff trade barriers.

•	1st Round: 1947, Geneva (creation of the GATT)

•	2nd Round: 1949, Annecy, France (tariff reduction)

•	3rd Round: 1951, Torquay, England (accession and tariff reduction)

•	4th Round: 1956, Geneva (accession and tariff reduction)

•	5th Round: 1960-62, Geneva ("Dillon" Round; revision of GATT; addition of more countries)

•	6th Round: 1964-67, Geneva ("Kennedy" Round)

•	7th Round: 1973-79, Geneva ("Tokyo" Round)

•	8th Round: 1986-93, Geneva ("Uruguay" Round)


S & D

Special and Differential Treatment.


S/IOGA

State/Industry-Organized, Government-Approved.


SAARC

South Asian Association for Regional Cooperation.


SABIT

Special American Business Internship Training Program.


SACU

Southern African Customs Union.


SADCC

Southern Africa Development Coordination Conference.


SASO

Saudi Arabian Standards Organization.


SCO

Senior Commercial Officer.


SDRs

Special Drawing Rights.


SEA

Single European Act.


SED

Shipper's Export Declaration.


SEED

Support for East European Democracy.


SELA

See LAES.


SEM

Seminar Mission.


SEPD

State Export Program Database.


SFO

Solo Fair (overseas-procured).


SFSC

Shared Foreign Sales Corporation.


SFW

Solo Fair (Washington-procured).


SGA

Selling, General and Administrative (Expenses).


SIC

Standard Industrial Classification.


SII

Structural Impediments Initiative.


SIMIS

Single Internal Market Information Service.


SIMS

Single Internal Market Service.


SITC

Standard International Tariff Classification.


SMSA

Standard Metropolitan Statistical Area.


SNEC

Sub-Group on Nuclear Export Coordination.


SOGA

State-Organized, Government-Approved Mission.


SPC

South Pacific Commission.


SPF

South Pacific Forum.


SSA

Sub-Saharan Africa.


STELA

System for Tracking Export License Applications.


STEs

State Trading Enterprises.


STM

State Trade Mission.


Safeguards

The WTO (formerly GATT) permits two forms of multilateral safeguards: (a) a country's right to impose temporary import controls or other trade restrictions to prevent commercial injury to domestic industry, and (b) the corresponding right of exporters not to be deprived arbitrarily of access to markets.

Article XIX of the WTO permits a country whose domestic industries or workers are adversely affected by increased imports to withdraw or modify concessions the country had earlier granted, to impose, for a limited period, new import restrictions if the country can establish that a product is "being imported in such increased quantities as to cause or threaten serious injury to domestic producers," and to keep such restrictions in effect for a such time as may be necessary to prevent or remedy such injury.


Sales Representative

An agent who distributes, represents, services or sells goods on behalf of foreign sellers.


Saudi Arabian Standards Organization

SASO was established in 1972 as the sole Saudi Arabian government organization to promulgate standards and measurements in the kingdom. Primarily, SASO promulgates standards for electrical equipment and some food products. Some of these standards have been adopted by the Gulf Cooperation Council.


Schedule B

Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported From the United States.


Section 201

Section 201, the "escape clause" provision of the Trade Act of 1974, permits temporary import relief, not to exceed a maximum of eight years, to a domestic industry which is seriously injured, or threatened with serious injury, due to increased imports. Import relief, granted at the President's discretion, generally takes the form of increased tariffs or quantitative restrictions.

To be eligible for section 201 relief, the International Trade Commission (ITC) must determine that: (a) the industry has been seriously injured or threatened to be injured and (b) imports have been a substantial cause (not less than any other cause) of that injury. Industries need not prove that an unfair trade practice exists, as is necessary under the antidumping and countervailing duty laws. However, under section 201, a greater degree of injury -- "serious" injury -- must be found to exist, and imports must be a "substantial" cause (defined as not less than any other cause) of that injury.

If the ITC finding is affirmative, the President's remedy may be a tariff increase, quantitative restrictions, or orderly marketing agreements. At the conclusion of any relief action, the Commission must report on the effectiveness of the relief action in facilitating the positive adjustment of the domestic industry to import competition. If the decision is made not to grant relief, the President must provide an explanation to the Congress. See Escape clause.


Section 232

Under section 232 of the Trade Expansion Act of 1962, as amended, Commerce determines whether articles are being imported into the US in quantities or circumstances that threaten national security. Based on the investigation report, the President can adjust imports of the article(s) in question.

Commerce must report on the effects these imports have on national security and make recommendations for action or inaction within 270 days after starting an investigation. Within 90 days of the report, the President decides whether to take action to adjust imports on the basis of national security. The President must notify Congress of his decision within 30 days.


Section 301

Under section 301, firms can complain about a foreign country's trade policies or practices that are harmful to US commerce. The section empowers the USTR to investigate the allegations and to negotiate the removal of any trade barriers. The section requires that WTO's dispute resolution process be invoked where applicable and, if negotiations fail, to retaliate within 180 days from the date that discovery of a trade agreement violation took place. See Super 301.


Section 337

Section 337 of the Tariff Act of 1930 requires investigations of unfair practices in import trade. Under this authority, the International Trade Commission applies US statutory and common law of unfair competition to the importation of products into the United States and their sale. Section 337 prohibits unfair competition and unfair importing practices and sales of products in the US, when these threaten to: (a) destroy or substantially injure a domestic industry, (b) prevent the establishment of such an industry, or (c) restrain or monopolize US trade and commerce. Section 337 also prohibits infringement of US patents, copyrights, registered trademarks, or mask works.


Selling, General and Administrative (Expenses)

SGA is the sum of:

General and administrative expenses (such as salaries of nonsales personnel, rent, heat and light);

Direct selling expenses (that is, expenses that can be directly tied to the sale of a specific unit, such as credit, warranty and advertising expenses); and

Indirect selling expenses (that is, expenses which cannot be directly tied to the sale of a specific unit but which are proportionally allocated to all units sold during a certain period, such as: telephone, interest and postal charges).


Semiconductor Trade Arrangement

The US-Japan Semiconductor Trade Arrangement is a bilateral agreement which came into effect in 1991, replacing the prior 1986 Semiconductor Trade Arrangement. The new Arrangement contains provisions to: (a) increase foreign access to the Japanese semiconductor market; and (b) deter dumping of semiconductors by Japanese suppliers into the US market, as well as in third country markets. In evaluating market access improvement, both governments agreed to pay particular attention to market share. The expectation of a 20 percent foreign market share by the end of 1992 is included in the Arrangement. The Arrangement explicitly states, however, that the 20 percent figure is not a guarantee, a ceiling, or a floor on the foreign market share.


Senior Commercial Officer

The SCO is the senior US & Foreign Commercial Officer at an embassy and reports in-country to the Ambassador. At major posts, this position carries the title of Commercial Counselor; in key posts, Minister Counselor. Usually reporting to the SCO are a Commercial Attache and Commercial officers. The latter are sometimes assigned to subordinate posts throughout the country.


Shared Foreign Sales Corporation

A shared FSC is a foreign sales corporation consisting of more than one and less than 25 unrelated exporters. See Foreign Sales Corporation.


Ship's Manifest

A list, signed by the captain of a ship, of the individual shipments constituting the ship's cargo.


Shipper's Export Declaration

The Shipper's Export Declaration (SED) is used to control exports and compile trade statistics and must be prepared and submitted to the customs agent for shipments by mail valued at more than $500 and for shipments by means other than mail valued at more than $2,500. An SED must be prepared for all shipments covered by an individual validated license, regardless of value.


Shipper's Letter of Instructions for Issuing Air Waybill

This document is required by the carrier or freight forwarders in order to obtain (besides the data needed) authorization to issue and sign the air waybill in the name of the shipper.


Shipping Permit

The shipping permit, issued by a shipping or carrier company, authorizes the receiving clerk at pier, dock, warehouse, or airport, or on board, to receive a stipulated amount of goods or materials from a specified firm.


Shipping Weight

Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes and containers (other than cargo vans and similar substantial outer containers).


Short Supply

Commodities in short supply may be subject to export controls to protect the domestic economy from the excessive drain of scarce materials and to reduce the serious inflationary impact of satisfying foreign demand. Two commodities which the US controls for short supply purposes are crude oil and unprocessed western red cedar.


Sight Draft

A draft which is payable upon presentation to the drawee.


Single European Act

The SEA, which entered into force in 1987, provides the legal and procedural support for achievement of the single European Market by 1992. The SEA revised the EEC Treaty and, where not already provided for in the Treaty, majority decisions were introduced for numerous votes facing the Council of Ministers, particularly those affecting establishment of the single European Market and the European financial common market. The role of the European Parliament was strengthened; decisions on fiscal matters remained subject to unanimity.


Single Internal Market Information Service

SIMIS, run by the International Trade Administration, is a clearinghouse for information on EU 1992 activities.


Soft Currency

Currency not freely convertible.


Soft Loan

This term refers to the no-interest loans granted to developing countries by the International Development Association. A "soft loan" carries no interest (although there is a small annual service charge), is payable in 50 years, and has an amortization rate of 1% repayable annually for the 10 years following an initial 10-year grace period, followed by 3% repayable annually for the remaining 30 years.


South Asian Association for Regional Cooperation

SAARC is made up of 7 members (Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) with the goal of promoting economic, social and cultural cooperation.


South Pacific Commission

The SPC is made up of 27 members with the goal of promoting regional cooperation in economic and social matters.


South Pacific Forum

SPF consists of 15 member states and 1 observer with the goal of promoting regional cooperation in political matters.


Southern Africa Development Coordination Conference

The Southern Africa Development Coordination Conference, SADCC, is a regional economic pact comprising Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe.


Southern African Customs Union

SACU, established in 1910, includes Botswana, Lesotho, Namibia, South Africa and Swaziland. SACU provides for the free exchange of goods within the area, a common external tariff and a sharing of custom revenues. External tariffs, excise duties and several rebate and refund provisions are the same for all SACU members. SACU's revenues are apportioned among its members according to a set formula. These funds constitute a significant contribution to each member's government revenues.


Southern Common Market

See Mercosur.


Southern Cone Common Market

MERCOSUR consists of Argentina, Brazil, Chile, Paraguay and Uruguay. With the exception of Chile, these countries also comprise the Southern Common Market.


Special 301

The Special 301 statute requires the United States Trade Representative (USTR) to review annually the condition of intellectual property protection among US trading partners. Submissions are accepted from industry after which the USTR, weighing all relevant information, makes a determination as to whether a country presents excessive barriers to trade with the United States by virtue of its inadequate protection of intellectual property. If the USTR makes a positive determination, a country may be named to the list of: (a) Priority Foreign Countries (the most egregious), (b) the Priority Watch List, or (c) the Watch List.


Special American Business Internship Training Program

SABIT, formerly the Soviet-American Business Internship Training Program, is an International Trade Administration program in which American companies give Soviet managers an opportunity to work in a US corporate setting for up to six months. Soviet business managers are referred by Commerce to sponsoring US companies, which make the final selection of their interns. The SABIT program matches US corporate sponsors with Soviet business executives from the same industries. The Soviets provide transportation; the companies provide living expenses and training in management techniques (production, distribution, marketing, accounting, wholesaling, and publishing).


Special Drawing Rights

SDRs are international reserve assets, created by the International Monetary Fund (IMF) and allocated to individual member nations. Within conditions set by the IMF, SDRs can be used by a nation with a deficit in its balance of international payments to settle debts with another nation or with the IMF.


Special and Differential Treatment

The principle, enunciated in the Tokyo Declaration, that the Tokyo Round negotiations should seek to accord particular benefits to the exports of developing countries, consistent with their trade, financial and development needs. Among proposals for special or differential treatment are reduction or elimination of tariffs applied to exports of developing countries under the Generalized System of Preferences (GSP), expansion of product and country coverage of the GSP, accelerated implementation of tariff cuts agreed to in the Tokyo Round for developing country exports, substantial reduction or elimination of tariff escalation, special provisions for developing country exports in any new codes of conduct covering nontariff measures, assurance that any new multilateral safeguard system will contain special provisions for developing country exports, and the principle that developed countries will expect less than full reciprocity for trade concessions they grant developing countries.


Specific Duty

Tax imposed on imported merchandise without regard to value. Usually based on the net weight or number of pieces, etc. Also see Duty.


Spot Exchange

The purchase or sale of foreign exchange for immediate delivery.


Spot Price

Quoted price for immediate commodity sale and delivery.


Standard Industrial Classification

The SIC is the classification standard underlying all establishment-based US economic statistics classified by industry.


Standard International Trade Classification

The SITC was developed by the United Nations in 1950 and is used solely by international organizations for reporting international trade. The SITC has been revised several times; the current version is Revision 3.


Standards

As defined by the Multilateral Trade Negotiations "Agreement on Technical Barriers to Trade" (Standards Code), a standard is a technical specification contained in a document that lays down characteristics of a product such as levels of quality, performance, safety or dimensions. Standards may include, or deal exclusively with, terminology, symbols, testing and test methods, packaging, marking or labeling requirements as they apply to a product.


Standstill

Standstill refers to a commitment of WTO (formerly GATT) contracting parties not to impose new trade-restrictive measures during the Uruguay Round negotiations. See Rollback.


State Export Program Database

The SEPD is a trade lead system maintained by the National Association of State Development Agencies (NASDA). The SEPD includes information on state operated trade lead systems.


State Trading Enterprises

STEs are entities established by governments to import, export and/or produce certain products. Examples include: government-operated import/export monopolies and marketing boards or private companies that receive special or exclusive privileges from their governments to engage in trading activities.


State-Controlled Trading Company

In a country with a state trading monopoly, a trading entity authorized by that country's government to conduct export business.


State/Industry-Organized, Government Approved

The State/Industry-Organized, Industry Approved (S/IOGA) trade missions are planned and organized by state development agencies, trade associations, chambers of commerce, and other export-oriented groups. To qualify for US government sponsorship, organizers of this type of trade mission must agree to follow International Trade Administration criteria in planning and recruiting the mission.

ITA offers guidance and assistance from planning through completion of the mission and coordinates the support of all relevant offices and the assistance of overseas commercial officers in each foreign city on the itinerary. The missions are normally led by a representative of the sponsoring organization. Organizers of S/IOGA missions recruit for the event and cover the expenses of the event incurred by ITA's overseas post. S/IOGA missions may use the seminar format, the exhibit format, the traditional trade mission format, or a combination, such as a seminar/mission or exhibit/mission.


Statistical Commission

An ECOSOC organization dealing with development and standardization of national statistics, made up of 25 members selected on a rotating basis.


Steamship Conference

A group of vessel operators joined together for the purpose of establishing freight rates.


Strategic Level of Controls

Commodity groupings used for export control purposes. See Export Control Classification Number.


Structural Impediments Initiative

The SII was started in 1989 to identify and solve structural problems that restrict bringing two-way trade between the US and Japan into better balance.

Both the US and Japanese governments chose issues of concern in the other's economy as impediments to trade and current account imbalances. The areas which the US Government chose as focus included: (a) Japanese savings and investment patterns, (b) land use, (c) distribution, (d) keiretsu, (e) exclusionary business practices, and (f) pricing. Areas which the Japanese Government chose as focus included: (a) US savings and investment patterns, (b) corporate investment patterns and supply capacity, (c) corporate behavior, (d) government regulation, (e) research and development, (f) export promotion, and (g) workforce education and training.

In a 1990 report, the US and Japan agreed to 7 meetings in the following three years to review progress, discuss problems, and produce annual joint reports.


Sub-Group on Nuclear Export Coordination

The SNEC is an interagency review panel including State (as chair), Energy (as secretariat), the Nuclear Regulatory Commission, Commerce, Defense, the Arms Control and Disarmament Agency, and as necessary the intelligence community. SNEC operates on the basis of unanimity.


Subsidies

WTO (formerly GATT) does not directly define subsidies. The US regards a subsidy as a bounty or grant paid for the manufacture, production, or export of an article. Export subsidies are contingent on exports; domestic subsidies are conferred on production without reference to exports. While governments sometimes make outright payments to firms; subsidies usually take a less direct form (R&D support, tax breaks, loans on preferential terms and provision of raw materials at below-market prices).


Summary Investigation

A 20-day investigation conducted by the International Trade Administration immediately following filing of an antidumping petition to ascertain if the petition contains sufficient information with respect to sales at "less than fair value" and the injury or threat of material injury to a domestic industry caused by the alleged sales at "less than fair value" to warrant the initiation of an antidumping investigation.


Summit Conference

A summit conference is an international meeting at which heads of government are the chief negotiators, major world powers are represented, and the meeting serves substantive rather than ceremonial purposes. The term first came into use in reference to the Geneva Big Four Conference of 1955.


Super 301

This provision was enacted due to Congressional concern that the regular Section 301 procedures narrowly limit US attention to the market access problems of individual sectors or companies. Super 301 sets procedures to identify and address within three years certain "priority", systemic trade restriction policies of other nations. Super 301 authority expired May 30, 1990.


Supply Access

Assurances that importing countries will, in the future, have fair and equitable access at reasonable prices to supplies of raw materials and other essential imports. Such assurances should include explicit constraints against the use of the export embargo as an instrument of foreign policy.


Support for East European Democracy

The SEED Act, signed into law in 1989, contained 25 distinct actions to support structural adjustment, private sector development, trade and investment, and educational, cultural and scientific activities in Poland and Hungary. Funding for most of the actions was provided by the Agency for International Development. The SEED Act expired at the end of fiscal year 1990. Since then support has been provided under the Foreign Assistance Act of 1991. See Foreign Assistance Act of 1991.


Surety

Proof that funds are available to cover potential duties.


Suspension of Investigation

A decision to suspend an antidumping investigation if the exporters who account for substantially all of the imported merchandise agree to stop exports to the US or agree to revise their prices promptly to eliminate any dumping margin. An investigation may be suspended at any time before a final determination is made. No agreement to suspend an investigation may be made unless effective monitoring of the agreement is practicable and is determined to be in the public interest.


Suspension of Liquidation

If affirmative, the preliminary determination of dumping or subsidization, or final determination after a negative preliminary determination, provides for suspension of liquidation of all entries of merchandise subject to the determination which are entered, or withdrawn from warehouse, for consumption, on or after the date of the publication of the notice in the Federal Register. Customs is directed to require a cash deposit, or the posting of a bond or other security, for each entry affected equal to the estimated amount of the subsidy or the amount by which the fair value exceeds the US price. When an administrative review is completed, Customs is directed to collect the final subsidy rate or amount by which the foreign market value exceeds the US price, and to require for each entry thereafter a cash deposit equal to the newly determined subsidy rate or margin of dumping.


Switch Arrangements

A form of countertrade in which the seller sells on credit and then transfers the credit to a third party.


Switch Transactions

The practice of exporting (or importing) goods through an intermediary country to final destination.


System for Tracking Export License Applications

STELA is a BXA computer-generated voice unit that interfaces with the BXA database: ECASS (Export Control Automated Support System). STELA enables a caller to check on an export license by making a telephone call.


T/E Entry

Transportation and Exportation Entry. Allows goods to be entered into the US for re-export to a third country.


TA

Trade Assistant.


TAA

Trade Adjustment Assistance.


TAC

Technical Advisory Committee.


TAPO

Trade Assistance & Planning Office.


TCI

Third Country Initiative.


TCMD

Third Country Meat Directive.


TDO

Table of Denial Orders.


TDP

Trade & Development Program.


TFC

Trade Fair Certification.


TFO

Trade Fair (Overseas-Recruited).


TFW

Trade Fair (Washington-Recruited).


TIC

Trade Information Center.


TIEA

Tax Information Exchange Agreement.


TIFTs

Trade and Investment Facilitation Talks.


TIMS

Textiles Information Management System.


TM

Trade Mission.


TNC

Trade Negotiations Committee.


TOFC

Trailer or Flat Car. The movement of cargo on a railroad flatcar.


TOP

Trade Opportunities Program.


TPC

Trade Policy Committee.


TPCC

Trade Promotion Coordinating Committee.


TPIS

Trade Policy Information System.


TPM

Trigger Price Mechanism.


TPRG

Trade Policy Review Group.


TPRM

Trade Policy Review Mechanism.


TPSC

Trade Policy Staff Committee.


TRA

Trade Reference Assistant.


TRIMs

Trade-Related Investment Measures.


TRIPs

Trade-Related Aspects of Intellectual Property Rights.


TRO

Temporary Restraining Order.


TS

Trade Specialist.


TSB

Textile Surveillance Body.


TSUSA

Tariff Schedules of the United States Annotated.


TWEA

Trading With the Enemy Act.


Table of Denial Orders

The TDO is a list of individuals and firms which have been disbarred from shipping or receiving US goods or technology. Firms and individuals on the list may be disbarred with respect to either controlled commodities or general destination (across-the-board) exports.


Tare Weight

The weight of a container and/or packing materials without the weight of the goods it contains.


Tariff

A tax assessed by a government in accordance with its tariff schedule on goods as they enter (or leave) a country. May be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable or some combination. Also, the rates imposed by a company.


Tariff Anomaly

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

A situation in which tariffs on manufactured goods are relatively high, tariffs on semiprocessed goods are moderate, and tariffs on raw materials are nonexistent or very low.


Tariff Quotas

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


Tariff Schedule

A comprehensive list of the goods which a country may import and the import duties applicable to each product.


Tax Information Exchange Agreement

A TIEA is an agreement concluded between the US and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The US has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws.


Technical Advisory Committee

The TACs are voluntary groups of industry and government representatives who provide guidance and expertise to Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries.

TACs have been set up for: (a) materials, (b) biotechnology, (c) computer systems, (d) electronics (formerly "semiconductors"), (e) sensors (formerly "electronic instrumentation") (f) materials processing equipment (formerly "automated manufacturing equipment"), (g) military critical technologies, (h) telecommunications equipment, and (i) transportation and related equipment.


Technical Barrier to Trade

According to the Standards Code, a specification which sets forth characteristics or standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported.


Technical Data

BXA regulations define technical data as "information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization or reconstruction of articles or materials. All software is technical data." Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information guidance and consulting.


Technology Transfer

This term is used to characterize "the transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end." Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations).


Third Country Initiative

The TCI was created to help countries establish an export control system on strategic commodities. Such countries, while not members of CoCom, would establish "CoCom-like" controls.


Third Country Meat Directive

The TCMD is a regulation by which the European Union controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EU veterinarians of US meat plants wishing to export to the EU.


Through Bill of Lading

A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation.


Through Rate

The total rate from the point of origin to final destination.


Tied Aid Credit

Tied aid credit refers to the practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country.


Tied Loan

A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country.


Time Draft

A draft which matures either a certain number of days after acceptance or a certain number of days after the date of the draft.


Trade & Development Program

The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of US goods and services.


Trade Act of 1974

Legislation enacted late in 1974 and signed into law in 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (a) stimulate US economic growth and to maintain and enlarge foreign markets for the products of US agriculture, industry, mining and commerce; (b) strengthen economic relations with other countries through open and non-discriminatory trading practices; (c) protect American industry and workers against unfair or injurious import competition; and (d) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations.


Trade Adjustment Assistance

TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by Commerce; TAA for workers is administered by Labor.

Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management.

Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports.


Trade Adjustment Assistance Centers

TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the Commerce Department as a primary source of technical assistance to certified firms.


Trade Agreements Act of 1979

Legislation authorizing the US to implement trade agreements dealing with nontariff barriers negotiated during the Tokyo Round, including agreements that required changes in existing US laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into US law the Tokyo Round agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade.


Trade Balance

See Balance of Payments.


Trade Barriers

The United States Trade Representative classifies trade barriers into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector).


Trade Concordance

Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The Bureau of the Census, the United Nations, as well as individual Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data.


Trade Event

A trade event is a promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions and similar functions.


Trade Expansion Act of 1962

The Act provided authority for US participation in the Kennedy Round of the GATT (now WTO). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in US tariffs.

The Act explicitly eliminated the "Peril Point" provision that had limited US negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the US International Trade

Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions.

This Act superseded the Trade Agreements Act of 1934, as amended.


Trade Fair

A trade fair is a stage-setting event in which firms of several nationalities present their products or services to prospective customers in a preformatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries.


Trade Fair Certification Program

The Commerce Department Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts.


Trade Information Center

The Trade Information Center (TIC) is a one-stop source for information on Federal programs to assist US exporters.


Trade Mission

Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers.

ITA trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State or local agencies.


Trade Negotiations Committee

The TNC is the steering group which manages the Uruguay Round negotiations. The TNC is comprised of all countries participating in the current negotiations (that is, it is not limited simply to members of the WTO (formerly GATT)). Functioning at the non-ministerial level, the TNC serves as a vehicle for transparency.


Trade Opportunities Program

The Trade Opportunities Program (TOPs) is an International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent US products and services. Through overseas channels, US foreign commercial officers gather leads and details, including as specifications, quantities, end use and delivery deadlines. TOPs are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector.


Trade Policy Committee

The TPC is a cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the USTR) to provide broad guidance on trade issues. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions.

The Trade Policy Review Group (TPRG) is a subcabinet group which meets about once a week. The TPRG is an ad hoc creation that was not established by law. TPRG membership is fairly fluid; so that agencies which want to participate in a particular discussion can sit at the table.

The Trade Policy Staff Committee (TPSC) has met perhaps once a year since 1988. TPSC was established by law to obtain advice from the private sector on topics such as retaliation; it generally serves as a paper clearance structure.

Beneath the TPSC is a large number (60-to-100, exact counts are not maintained) of TPSC subcommittees. Subcommittees are not independent; they are established ad referendum, to deal with topics of interim interest and are sometimes no more than phone and fax lists of interested parties on a given issue.


Trade Policy Information System

TPIS generally includes: US foreign trade data (detailed US merchandise trade statistics), UN trade data, the IMF and World Bank databases, and the Trade and Tariff Library project for use in the General Agreement on Tariffs & Trade.


Trade Policy Review Group

See Trade Policy Committee.


Trade Policy Review Mechanism

The TPRM was created at the Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any WTO (formerly GATT) contracting party are subject to regularly scheduled review by the WTO Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies.


Trade Policy Staff Committee

See Trade Policy committee.


Trade Promotion Coordinating Committee

The President established the TPCC in 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the OMB, the USTR, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the US Information Agency, the Agency for International Development, the Trade & Development Program and the Small Business Administration.


Trade Show

A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality since trade fairs are international. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants.


Trade with Foreign Countries

Puerto Rico is a Customs district within the US Customs territory, and its trade with foreign countries is included in the US export and import statistics. The US export and import statistics include merchandise trade between the US Virgin Islands and foreign countries even though the Virgin Islands of the United States are not officially a part of the US Customs territory. Data on trade of other US outlying possessions with foreign countries is not compiled by the United States.


Trade-Related Aspects of Intellectual Property Rights

TRIPs refers to US intellectual property rights objectives in the Uruguay Round. These objectives include achieving a comprehensive WTO (formerly GATT) agreement that would include: (a) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (b) effective enforcement measures (both at the border and internally); and (c) effective dispute settlement provisions.


Trade-Related Investment Measures

TRIMs require the use of specified amounts of local inputs rather than imported goods, and requirements to export a certain amount of production. The developed countries (with the exception of Australia) favor prohibiting certain TRIMs; virtually all developing countries oppose prohibiting any TRIMs.


Trademark

Relates to any work, name or symbol which is used in trade to distinguish a product from other similar goods.


Transit Zone

A port of entry in a coastal country that is established as a storage and distribution center for the convenience of a neighboring country lacking adequate port facilities or access to the sea. A zone is administered so that goods in transit to and from the neighboring country are not subject to the customs duties, import controls or many of the entry and exit formalities of the host country. A transit zone is a more limited facility then a free trade zone or a free port.


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.


Transparency

The extent to which laws, regulations, agreements, and practices affecting international trade are open, clear, measurable and verifiable.


Transship

A system under which cargo is transferred from one transportation line to another.


Travel Mission

A travel mission is a marketing activity carried out in foreign markets which usually involves trade information, presentations and media activities.


Traveler

A traveler is a person who stays for a period of less than 1 year in a country of which he or she is not a resident. Military and other government personnel and their dependents stationed outside their country of residence are not considered travelers, regardless of the length of their stay abroad; they are considered to have remained within the economy of their home country.

The definition of travelers also excludes owners or employees of business enterprises who temporarily work abroad in order to further the enterprise's business, but intend to return to their country of residence within a reasonable period of time.


Treaty of Rome

The 1957 Treaty of Rome was intended to create a single market for the European Union, with free movement of goods, persons, services and capital. Article 30 of the Treaty prohibited not only quantitative restrictions on imports but also all measures having an equivalent effect.


Trigger Price Mechanism

The TPM is an antidumping mechanism designed to protect US industries from underpriced imports. First used in 1978 to protect the steel industry, the TPM is the price of the lowest cost foreign producer. Imports priced below the trigger price are assessed a duty equal to the difference between their price and the trigger price.


Tropical Products

Traditionally, agricultural goods of export interest to developing countries in the tropical zones of Africa, Latin America and East Asia (coffee, tea, spices, bananas and tropical hardwoods).


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/her assets and to hold them ready for repossession by the bank.


Turnkey

A method of construction whereby the contractor assumes total responsibility from design through completion of the project.


UCP

Uniform Customs and Practices.


UDEAC

Central African Customs and Economic Union.


UN

United Nations. The largest international organization in the world with 178 members, the UN's aim is to maintain international peace and security as well as promote cooperation involving economic, social, cultural and humanitarian problems.


UNAVM

United Nations Angola Verification Mission.


UNCDF

United Nations Capital Development Fund.


UNCHS

United Nations Center for Human Settlements (also Habitats).


UNCSTD

United Nations Conference on Science & Technology for Development.


UNCTAD

United Nations Conference on Trade & Development.


UNDOF

United Nations Disengagement Observer Force.


UNDP

United Nations Development Program.


UNDRO

United Nations Disaster Relief Organization.


UNEP

United Nations Environment Program.


UNESCO

United Nations Educational, Scientific & Cultural Organization.


UNFICYP

United Nations Force in Cyprus.


UNFPA

United Nations Fund for Population Activities.


UNGA

United Nations General Assembly.


UNHCR

United Nations High Commissioner for Refugees.


UNICEF

United Nations Children's Fund.


UNIDO

United Nations Industrial Development Organization.


UNIFIL

United Nations Interim Force in Lebanon.


UNIIMOG

United Nations Iran-Iraq Observer Group.


UNITAR

United Nations Institute for Training & Research.


UNMOGIP

United Nations Military Observer Group in India and Pakistan.


UNRISD

United Nations Research Institute for Social Development.


UNRWA

United Nations Relief and Works Agency.


UNTSO

United Nations Truce Supervision Organization.


UPU

Universal Postal Union.


US & FCS

United States & Foreign Commercial Service.


US Affiliate

A US affiliate is a US business enterprise in which there is foreign direct investment -- that is, in which a single foreign person owns or controls, directly or indirectly, 10 percent or more of its voting securities if the enterprise is incorporated or an equivalent interest if the enterprise is unincorporated. The affiliate is called a US affiliate to denote that the affiliate is located in the US (although it is owned by a foreign person). (See Foreign Person.)


US Munitions List

The USML identifies those items or categories of items considered to be defense articles and defense services subject to export control. The USML is similar in coverage to the International Munitions List (IML), but is more restrictive in two ways. First, the USML currently contains some dual-use items that are controlled for national security and foreign policy reasons (such as space-related or encryption-related equipment). Second, the USML contains some nuclear-related items. Under Presidential directive, most dual-use items are to be transferred from the USML to the Commerce Department's dual-use list. State, with the concurrence of Defense, designates which articles will be controlled under the USML. Items on the Munitions List face a stricter control regime and lack the safeguards to protect commercial competitiveness that apply to dual-use items.


US-Japan Semiconductor Trade Arrangement

See Semiconductor Trade Arrangement.


USC

United States Code.


USDA

United States Department of Agriculture.


USDIA

US Direct Investment Abroad.


USEC

US Mission to the European Communities.


USIS

United States Information Service.


USITC

United States International Trade Commission.


USML

US Munitions List.


USP

United States Price.


USTR

United States Trade Representative.


USUN

US Mission to the United Nations.


Ultimate Beneficial Owner

The UBO of a US affiliate is that person, proceeding up the affiliate's ownership chain beginning with and including the foreign parent, that is not owned more than 50 percent by another person. The UBO consists of only the ultimate owner, other affiliated persons are excluded. If the foreign parent is not owned more than 50 percent by another person, the foreign parent and the UBO are the same. A UBO, unlike a foreign parent, may be a US person.


Ultimate Consignee

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


Unclean Bill of Lading

Bill which has exceptions to the receipt of merchandise noted on it. Also known as foul bill of lading.


Unfair Competition

A broad term defining legal standards of business conduct. It provides protection against such things as simulation of trade packaging, using similar corporate and professional names, misappropriation of trade secrets, and palming off one person's goods as those of another.


Unfair Trade Practice

This term refers to any act, policy, or practice of a foreign government that: (a) violates, is inconsistent with, or otherwise denies benefits to the US under any trade agreement to which the United States is a party; (b) is unjustifiable, unreasonable, or discriminatory and burdens or restricts United States commerce; or (c) is otherwise inconsistent with a favorable section 301 determination by the US Trade Representative.


United Nations

Made up of 178 members and 4 observers, the UN's goal is to maintain international peace and security as well as promote cooperation involving economic, social, cultural and humanitarian problems.


United Nations Conference on Trade & Development

UNCTAD was set up in 1964 as a permanent organ of the UN General Assembly. UNCTAD promotes international trade and seeks to increase trade between developing countries and countries with different social and economic systems. UNCTAD also examines problems of economic development within the context of principles and policies of international trade and seeks to harmonize trade, development, and regional economic policies.


United Nations Secretariat

Secretary General appointed for a five-year term by the General Assembly on the recommendation of the Security Council; the primary administrative organ of the UN.


United Nations Security Council

Made up of five permanent members (China, France, Russia, UK and the US) and 10 non-permanent members with the goal of maintaining international peace and security.


United Nations Trusteeship Council

Five members (China, France, Russia, UK and the US) that supervise the administration of the UN trust territories, of which only 1 of the original 11 remained.


United States Foreign & Commercial Service

The State Department's Foreign Commercial Service was transferred to Commerce in 1980. This group was merged with Commerce's domestic field operations in 1982, creating the US & Foreign Commercial Service.


United States International Trade Commission

See International Trade Commission.


United States Price

In the context of dumping investigations, this term refers to the price at which goods are sold in the US compared to their foreign market value. The comparisons are used in the process of determining whether imported merchandise is sold at less than fair value.


United States Trade Representative

The USTR is a cabinet-level official with the rank of Ambassador who advises the President on trade policy. The USTR coordinates the development of US trade policy initiatives; leads US international trade negotiations; and seeks to expand US exports by promoting removal or reduction of foreign trade barriers.


Universal Postal Union

UPU is a specialized UN agency, made up of 168 members, that promotes international postal cooperation.


Uruguay Round

See Rounds.


VAT

Value-Added Tax.


VER

Voluntary Export Restriction.


VL

Variable Levy.


VOA

Voice of America.


VRA

Voluntary Restraint Agreement.


Validated Export License

A document issued by the US government authorizing the export of commodities for which written export authorization is required by law.


Value Added Counseling

Valued added counseling is defined as assessing a company's current international business operations and assisting a client in one or more of the following: (a) identifying and selecting the most viable markets; (b) developing an export market strategy; (c) implementing the export market strategy; and (d) increasing market presence.


Value Certificate

This certifies that the value declared and accounts charged on the shipper's invoice are accurate.


Value-Added Tax

A European Union (EU) tax assessed on the increased value of goods as they pass from the raw material stage through the production process to final consumption. The tax on processors or merchants is levied on the amount by which they increase the value of items they purchase. The EU charges a tax equivalent to the value added to imports and rebates value-added taxes on exports.


Variable Levy

A tariff subject to alterations as world market prices change, the alterations are designed to assure that the import price after payment of the duty will equal a predetermined "gate" price.


Vertical Export Trading Company

An export trading company that integrates a range of functions taking products from suppliers to consumers.


Visa

Visas are required by many countries for entry of a foreigner. A visa is a stamp in a foreign national's passport issued by a US consular officer which creates a legal presumption that there are no apparent reason to deny entry into the US. Regardless of the stamp, the final decision to grant admission is made by an officer of the US Immigration Service at the port of entry.


Visa Waiver

A program of selected countries to eliminate the visa requirement on a test basis.


Visit USA Committee

A committee of US tourism managers located in foreign markets. Visit USA Committees work with USTTA and the US & Foreign Commercial Service in planning and promoting travel to the US.


Voluntary Export Restriction

An understanding between trading partners in which the exporting nation, in order to reduce trade friction, agrees to limit its exports of a particular good. Also called voluntary restraint agreement.


Voluntary Restraint Agreement

Informal bilateral or multilateral understandings in which exporters voluntarily limit exports of certain products to a particular country destination in order to avoid economic dislocation in the importing country and the imposition of mandatory import restrictions. These arrangements do not involve an obligation on the part of the importing country to provide "compensation" to the exporting country, as would be the case if the importing country unilaterally imposed equivalent restraints on imports. (See Voluntary Export Restriction.)


WA

Without Average. Marine insurance term. Shipment is protected from partial damage when the damage exceeds a specified percentage.


WADB

West Africa Development Bank.


WAMU

West African Monetary Union.


WARC

World Administrative Radio Conference.


WCL

World Confederation of Labor.


WEU

Western European Union.


WFC

World Food Council.


WFP

World Food Program.


WFTU

World Federation of Trade Unions.


WHO

World Health Organization.


WIPO

World Intellectual Property Organization.


WMO

World Meteorological Organization.


WTDR

World Traders Data Report.


WTM

World Tourism Market.


WTO

World Tourism Organization; World Trade Organization.


War Risk

Insurance coverage for loss of goods resulting from any act of war.


Warehouse Receipt

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


Warsaw Pact

The WP was established in 1955 to promote the mutual defense of member states (Bulgaria, Czechoslovakia, Hungary, Poland, Romania and the USSR) and was dissolved on July 1, 1991.


Waste Cube

An empty space in a container resulting from cargo meeting the weight restrictions of the container before the container is full, or from the cargo not adequately filling or fitting the container.


Waybill

A detailed description of the shipment sent to the transfer point. Also see Air Waybill.


Webb-Pomerene Association

Associations engaged in exporting that combine the products of similar producers for overseas sales. These associations have partial exemption from US anti-trust laws but may not engage in import, domestic or third country trade or combine to export services.


Weight Certificate

This is usually issued by an official weigher on the dock with the weight (as well as measurements) then being entered on the back of the second and third copies of the dock receipt by clerk on the dock.


West Africa Economic Community

CEAO (Fr. Communaute Economique de l'Afrique), created in 1974, includes: Benin, Burkina Faso, Cote d'Ivoire, Mali, Mauritania, Niger and Senegal. (Togo has observer status). The CEAO operates as a free trade area for agricultural products and raw materials and as a preferential trading area for approved industrial products, with a regional cooperation tax (TCR) replacing import duties and encouraging trade among member states.

In order to ensure that benefits of the regional grouping flow to all members, especially the least developed ones (Mali, Mauritania, Niger and Burkina Faso), the CEAO has established a fund (FOSIDEC) to provide financial services and guarantees to development lenders in both public and private sectors for projects in member states. In addition, CEAO has the long-term objective of creating a customs union with extensive harmonization of fiscal policies between member states, though no concrete achievements in this direction have been recorded.


West African Development Bank

WADB is made up of 7 member states (Benin, Burkina, Ivory Coast, Mali, Niger, Senegal and Togo) with the goal of promoting economic development and integration.


West African Monetary Union

WAMU (French: Union Monetaire Ouest Africaine, UMOA) was created by treaty signed in 1962. WAMU comprises seven French-speaking African countries: Benin, Burkina Faso, Cote d'Ivoire, Mali, Niger, Senegal and Togo. Within WAMU, these countries share a common currency (CFA Franc) freely convertible into the French Franc at a fixed parity, and a common Central Bank (BCEAO) responsible for the conduct of the Union's monetary and credit policies. There is a common regional development bank, the Banque Ouest Africaine de Development (BOAD).


Western European Union

WEU is made up of 10 members with the goal of promoting their mutual defense and progressive political unification.


Wharfage

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


With Average

A marine insurance term meaning that a shipment is protected from partial damage whenever the damage exceeds 3 percent (or some other percentage).


Without Recourse

Used on negotiable instruments to indicate the endorser is not liable to subsequent holders.


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 Administrative Radio Conference

WARC refers to the conference convened regularly by the United Nations' International Telegraphic Union (ITU) to allocate and regulate radio frequencies for the purposes of television and radio broadcasting, telephone data communications, navigation, maritime and aeronautical communication, and satellite broadcasting.


World Bank Group

An integrated group of international institutions that provides financial and technical assistance to developing countries. The group includes the International Bank for Reconstruction & Development, the International Development Association, and the International Finance Corporation.


World Confederation of Labor

WCL is made up of 96 member states with the common goal of promoting the trade union movement.


World Federation of Trade Unions

WFTU is made up of 36 members with the common goal of promoting the trade union movement.


World Food Council

An ECOSOC organization that studies world food problems and recommends solutions, made up of 36 members selected on a rotating basis.


World Food Program

An ECOSOC organization that provides food aid to assist in development or disaster relief, made up of 30 members selected on a rotating basis.


World Intellectual Property Organization

WIPO, a specialized agency, is a part of the United Nations system of organizations. Located in Geneva, WIPO promotes protection of intellectual property around the world through cooperation among states, and administers various "Unions," each founded on a multilateral treaty and dealing with the legal and administrative aspects of intellectual property.


World Meteorological Organization

Originally established under another name in 1875, the WMO was reconstituted and renamed in 1951. The WMO facilitates worldwide cooperation in establishing a network for meteorological, hydrological, and geophysical observations, for exchanging meteorological and related information, and for promoting standardization in meteorological measurements.


World Tourism Organization

The WTO, established in 1974, is an intergovernmental technical body dealing with all aspects of tourism. The WTO promotes and develops tourism as a means of contributing to economic development, international understanding, peace, and prosperity. WTO headquarters are in Madrid.


World Traders Data Reports

WTDRs is an International Trade Administration fee-based service which provides a background report on a specific foreign firm, prepared by commercial officers overseas. WTDRs provide information about the type of organization, year established, relative size, number of employees, general reputation, territory covered, language preferred, product lines handled, principal owners, financial references and trade references. WTDRs include narrative information about the reliability of the foreign firm.


Zangger Committee

The Zangger Committee of the Nonproliferation Treaty Exporters examines controls enacted pursuant to the Nuclear Nonproliferation Treaty by refining the list of items requiring nuclear safeguards. The Zangger Committee consists of 23 Nuclear Non-Proliferation Treaty (NPT) nuclear supplier nations which includes all nuclear weapons states except France and China.

Through a series of consultations in the early 1970s, the countries of the Zangger Committee compiled a "trigger list" of nuclear materials and equipment. The shipment of any item on the list to a non-nuclear weapons state "triggers" the requirement of International Atomic Energy Agency (IAEA) safeguards. Since the Zangger Committee is associated with the NPT, its members are obligated to treat all non-nuclear weapons parties to the treaty alike.

For fear of discrediting the NPT, the Zangger countries cannot target strict nuclear controls toward certain nations with questionable proliferation credentials; the NPT binds them to assist non-nuclear weapons states with peaceful atomic energy projects.