Glossary of Terms and Acronyms 173
A restriction or prohibition upon exports or imports, for speciﬁc products or speciﬁc countries.
Embargoes may be ordered by governments due to warfare, or are intended for political,
economic or sanitary purposes.
Export management company, a ﬁrm that acts as a complete export arm for a company’s
exporting needs. Usually an EMC will pay all expenses and receive compensation in the form of
a discount off the U.S. price of the product. An organization which, for a commission, acts as a
purchasing agent for either a buyer or seller.
Documents which must be ﬁled with U.S. Customs ofﬁcials describing goods imported, such as
the commercial invoice, Ocean Bill of Lading or Carrier Release.
Export trading company, a business that acts as a complete export service house and, in
addition, takes title to a company’s exported goods. Unlike an EMC, which represents speciﬁc
companies, an ETC determines what U.S. products are desired in a given market and then
searches for/works with U.S. producers to satisfy the demand.
Eleven member states of the EU, Austria, Belgium, Finland, France, Germany, Ireland, Italy,
Luxembourg, the Netherlands, Portugal and Spain, adopted a single currency, the euro, on
January 1, 1999.
European Economic Community (see EEC)
Term used by exporter to describe net costs of goods at placement of the dock at the import
The Export-Import Bank of the United States, the U.S.’s ofﬁcial export credit agency.
ex-mill (ex-warehouse, ex-mine, ex-factory)
Obligates the seller to place a speciﬁed quantity of goods at a speciﬁed price at his warehouse
or plant, loaded on trucks, railroad cars or any other speciﬁed means of transport. Obligates the
buyer to accept the goods in this manner and make all arrangements for transportation.
Export Administration Regulations (see EAR)
A formal statement made to Customs at the exit port declaring full particulars about goods being
Export Control Classiﬁcation Number (see ECCN)
Glossary of Terms and Acronyms 174
The simplest export loan product offered by the Small Business Administration. Export Express
allows participating lenders to use their own forms, procedures and analyses.
Export-Import Bank of the Unites States (see Ex-Im Bank)
A US government-issued permit required to export certain commodities and quantities to certain
destinations. Export licenses are needed to export technologies such as hardware, software,
technical data and services. Information on export license regulations and other goods requiring
export license can be found at www.bis.doc.gov or, in the case of military equipment, under
ITAR administered by the Department of State.
export management company (see EMC)
Restrictions or set objectives on the export of speciﬁed goods imposed by the government
of the exporting country. Such restraints may be intended to protect domestic producers and
consumers from temporary shortages of certain materials or as a means to moderate world
prices of speciﬁed commodities. Commodity agreements sometimes contain explicit provisions
to indicate when export quotas should go into effect among producers.
A freight rate specially established for application on export trafﬁc and generally lower than the
export trading company (see ETC)
Export Working Capital Program (EWCP)
A product through which the Small Business Administration provides lenders with up to a 90%
guaranty on export loans as a credit enhancement, so that the lenders will make the necessary
export working capital available to small business exporters.
An international trade term meaning that the seller shall make the goods available to the buyer
on board the ship at the destination named in the sales contract. The seller must bear the full
cost and risk involved in bringing the goods to the buyer.
An international trade term meaning that the seller’s only responsibility is to make the goods
available at seller’s premises. The seller is not responsible for loading the goods on the vehicle
provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved
in bringing the goods from there to buyer’s desired destination. This term thus represents the
minimum obligation for the seller.
Glossary of Terms and Acronyms 175
Types of companies which purchase international accounts receivable at a discount price,
usually about two to four percent less than their face value. The fee charged the exporter is
offset by the immediate availability of payment, plus the reduction in risk for the exporter. (see
Freight on board.
F.O.B. Freight Allowed
The same as F.O.B. named inland carrier, except the buyer pays the freight charges of the inland
carrier and the seller reduces the invoice by that amount.
F.O.B. Freight Prepaid
The same as F.O.B. named inland carrier, except the seller pays the freight charges of the inland
F.O.B. Named Inland
Carrier seller must place the goods on the named carrier at the speciﬁed inland point and obtain
a bill of lading. The buyer pays for the transportation.
F.O.B. Named Port of Exportation
Seller is responsible for placing the goods at a named point of exportation at the seller’s
expense. Some European buyers use this form when they actually mean F.O.B. vessel.
Seller is responsible for goods and preparation of export documentation until actually placed
aboard the vessel.
The title of a standard clause in marine contracts relieving the parties for responsibility upon
nonfulﬁllment of their obligations resulting from conditions beyond their control (like earthquake,
ﬂoods or war).
An individual or ﬁrm serving as the foreign representative of U.S. suppliers, locating buyers for
them in the foreign market.
foreign branch ofﬁce
A sales (or other) ofﬁce maintained in a foreign country and staffed by direct employees of the
Foreign Corrupt Practices Act
Act making it unlawful for persons or ﬁrms subject to US jurisdiction to offer, pay, or promise to
pay money or anything of value to any foreign ofﬁcial for the purpose of obtaining or retaining
business, or to make a payment to any person while knowing that all or a portion of that
payment will be used in this manner.
C# Word - Search and Find Text in Word
view, Annotate,Convert documents online using ASPX. edit, C#.NET PDF pages extract, copy, paste, C#.NET rotate PDF pages, C#.NET search text in PDF, C#.NET converting pdf to searchable text format; pdf find text
Glossary of Terms and Acronyms 176
foreign sales agent
An agent residing in a foreign country who acts as a sales representative for your company’s
foreign trade zone entry
A form declaring goods which are brought duty-free into a Foreign Trade Zone for further
processing or storage and subsequent exportation and/or consumption.
Forfaiting, similar to factoring, is an arrangement under which exporters actually forfeit their rights
to future payment in return for immediate cash. The arrangement is commonly used for sales of
capital equipment with terms of one to ﬁve years.
Free Alongside (F.A.S., or free alongside steamer)
The seller must deliver the goods to a pier and place them within reach of the ship’s loading
equipment. The buyer arranges ship space and informs the seller when and where the goods are
to be placed.
Free of Capture and Seizure (F.C. & S.)
An insurance clause providing that loss is not insured if due to capture, seizure, conﬁscation and
like actions, whether legal or not, or from such acts as piracy, civil war, rebellion and civil strife.
free trade agreement
A treaty between two or more countries that permits commerce in goods/services to be
conducted across their borders without the imposing of tariffs. NAFTA is an example of a
free trade agreement. Export.gov offers an online resource for free trade agreement and tariff
information at www.export.gov/FTA/FTATariffTool.
free trade zone
An area designated by the government of a country to which goods may be imported for
processing and subsequent export on duty-free basis.
A corporation carrying on the business of forwarding who is not a shipper or consignee. The
foreign freight forwarder receives compensation from the shipper for preparing documents and
arranging various transactions related to the international distribution of goods. Also, a brokerage
fee may be paid to the “forwarder” from steamship lines if the forwarder performs at least two of
the following services: (1) coordination of the movement of the cargo to shipside; (2) preparation
and processing of the Ocean Bill of Lading; (3) preparation and processing of dock receipts or
delivery orders; (4) preparation and processing of consular documents or export declarations;
and (5) payment of the ocean freight charges on shipments.
freight to (named destination)
The seller must pay to forward the goods to the agreed destination by road, rail or inland
waterway and is responsible for all risks of the goods until they are delivered to the ﬁrst carrier.
General Agreement on Tariffs and Trade, now renamed the World Trade Organization.
Glossary of Terms and Acronyms 177
A deliberate loss or damage to goods in the face of a peril, which sacriﬁce is made for the
preservation of the vessel and other goods. The cost of the loss is shared by the owners of all
goods on board up to time of peril.
general license (export)
Authorization to export goods/services without speciﬁc documentary approval.
general license, limited value (GLV)
Authorization to export a limited value amount of a good without speciﬁc documentary
A Customs term by which if proper entry has not been made for merchandise within ﬁve working
days after arrival in a port of entry, the goods are sent to a general order warehouse. All costs are
charged to the importer.
Government Printing Ofﬁce, which provides publishing and dissemination services for the ofﬁcial
and authentic government publications to Congress, Federal agencies, Federal depository
libraries, and the American public. More information can be found at www.gpo.gov.
Entire weight of goods, packing and container, ready for shipment.
Government Printing Ofﬁce (see GPO)
A currency expected to remain at stable value or to increase in relation to other currencies; also,
a freely convertible currency may be called “hard.”
The harmonized system (HS) is a classiﬁcation system for goods in international trade that
provides a uniform system of product classiﬁcation for all major trading countries.
International Chamber of Commerce, established in Paris in 1919, this is a non-governmental
organization serving world business. The ICC has members in 110 countries that include
companies, industrial associations, banking bodies and chambers of commerce. The ICC
International Court of Arbitration was founded in 1923 to settle international business disputes; it
is the leading international arbitration institution. ICC publishes Incoterms.
The Inter-American Development Bank, which provides resources to ﬁnance Latin American
development. The IDB also serves as administrator for special funds provided by several
member and nonmember countries. The largest of these funds is the U.S. Social Progress
Glossary of Terms and Acronyms 178
International Finance Corporation. A separately organized member of the World Bank group,
receiving its funds through stock subscriptions from member countries, revolving loans, and
earnings. The IFC encourages the ﬂow of capital into private investment in developing countries.
It makes loans at commercial interest rates, usually as a lender of last resort when sufﬁcient
capital cannot be obtained from other sources on reasonable terms.
To bring foreign goods or services into a country.
A license required and issued by some governments authorizing the entry of foreign goods into
A restricted amount of certain types of goods entering a country, usually maintained through
licensing importers, assigning to each a quota, after determining the amount of goods or
commodities allowed for that period. The license may also state the country from which the
importer is allowed to buy, thus restricting free trade, but many times adopted by governments
because of internal pressures from certain industries worried about competition.
A term applied to the status of merchandise admitted provisionally to a country without payment
of duties—either for storage in a bonded warehouse or for transshipment to another point,
where duties will eventually be imposed.
Incoterms (International Commercial Terms)
Also known as “terms of sale,” incoterms deﬁne the obligations, risks, and costs of the buyer
and seller related to the delivery of goods/services that comprise the export transaction.
A requisition for goods, stating conditions of the sale. Acceptance of an indent by a seller means
his agreement to the conditions of the sale.
Sale by the exporter to the buyer through an intermediary in the domestic market.
inland bill of lading
A bill of lading used in transporting goods overland to the exporter’s international carrier, where
the ocean bill of lading becomes applicable. Although a through bill of lading can sometimes be
used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for
A transportation line which hauls export or import freight between ports of entry and inland
Glossary of Terms and Acronyms 179
Carriers that have both air and ground ﬂeets. Since they usually handle thousands of small
parcels an hour, they have more competitive prices and offer more diverse services than regular
The patents, trademarks, service marks, copyrights and trade secrets of a business are
considered intellectual property.
Inter-American Development Bank (see IDB)
International Chamber of Commerce (see ICC)
International Commercial Terms (see Incoterms)
International Finance Corporation (see IFC)
irrevocable Letter of Credit
A Letter of Credit which obligates the issuing bank to pay the exporter provided all the terms
and conditions of the letter of credit have been met. None of the terms and conditions may be
changed without the consent of all parties to the Letter of Credit (see Letter of Credit).
The time allowed a ship to load or unload. If this number of days is exceeded, demurrage is
The weight of the goods plus any immediate wrappings which are sold along with the goods;
e.g., the weight of a tin can as well as its contents (see net weight).
Letter of Credit (L/C)
A method of payment for goods by which the buyer establishes his/her credit with a local bank,
clearly describing the goods to be purchased, the price, the documentation required and a limit
for completion of the transaction. Upon receipt of documentation, the bank is either paid by the
buyer or takes title to the goods themselves and then transfers funds to the seller. The bank
will insist upon exact compliance with the terms of the sale, and will not pay if there are any
The cost of loading or unloading a vessel by means of barges alongside.
The ﬁnal determination of the duties due.
The maquiladora (or “in-bond” industry) program allows foreign manufactures to ship
components into Mexico duty-free for assembly and subsequent re-export.
Glossary of Terms and Acronyms 180
marine bill of lading (see ocean bill of lading)
Insurance that will compensate the owner of goods transported overseas in the event of loss
which cannot be legally recovered from the carrier.
multiple exchange rates
A number of countries operate systems by which different exchange rates are used for different
National Association of Credit Managers.
The North American Free Trade Agreement, the largest free trade area in the world, 340 million
people and $6 trillion in GDP, encompassing Canada, the United States and Mexico. This free
trade pact was passed by the U.S. Congress in November 1993 and began implementation in
January 1994. NAFTA follows the model of the U.S.-Canada Free Trade Agreement and lowers
trade barriers among the three countries.
net weight (actual)
The weight of the goods without any immediate wrappings; e.g., the weight of the contents of a
tin can without the weight of the can (see legal weight).
These are factors, other than tariffs, inhibiting international trade, meant to discourage imports.
They may include requiring advance deposits in import payments, requiring excessive customs
adherence and excessive administrative procedures.
Non-Vessel Operating Common Carrier (NVOCC)
A cargo consolidator of small shipments in ocean trade, generally soliciting business and
arranging for or performing containerization functions at the port.
ocean bill of lading
A contract between an exporter and an international carrier for transportation of goods to
a speciﬁed foreign port. Unlike an inland bill of lading, the ocean bill of lading is a collection
document, an instrument of ownership which can be bought, sold or traded while the goods are
There are two types of ocean bills of lading used to transfer ownership:
straight (non-negotiable): provides for delivery of goods to the person named in the bill of
lading. The bill must be marked “non-negotiable.”
shipper’s order (negotiable): provides for delivery of goods to the person named in the bill of
lading or anyone designated. The shipper’s order is used with draft or Letter-of-Credit shipments
and enables the bank involved in the export transaction to take title to the goods if the buyer
defaults. The bank does not release title to the goods to the buyer until payment is received.
The bank does not release funds to the exporter until conditions of sale have been satisﬁed.
Documents you may be interested
Documents you may be interested