| ACCEPTANCE |
Any agreement
to purchase goods under specified terms. An agreement to
purchase goods at a stated price and under stated
terms. |
| AD VALOREM |
According to
value |
| ADVANCE AGAINST DOCUMENTS |
A loan made on
the security of the documents covering the shipment. |
| ADVISING BANK |
A bank,
operating in the exporter's country, that handles LETTERS OF
CREDIT for a foreign bank by notifying the exporter that the
credit has been opened in his or her favor. |
| ADVISORY CAPACITY |
A term
indicating that shipper's agent or representative is not empowered
to make definitive decisions or adjustments without approval of the
group or individual represented. |
| AIR WAYBILL |
A BILL OF
LADING that covers both domestic and international flights
transporting goods to a specified destination. |
| ALONGSIDE |
A phrase
referring to the side of a ship. Goods to be delivered
"alongside" are to be placed on the dock or barge within reach of
the transport ship's tackle so that they can be loaded aboard
the ship. |
| ALTERATION |
A change in the
boundaries of an activated zone or subzone. |
| ALTERNATIVE INVENTORY CONTROL SYSTEM
(AICS) |
A former system
of inventory control, manual or automated, based on records
maintained by a zone grantee, operator or individual zone
user. |
| APPLICANT |
A corporation
applying for the right to establish, operate and maintain a
foreign-trade zone. |
| ARBITRAGE |
The process of
buying FOREIGN EXCHANGE, stocks, bonds and other commodities in one
market and immediately selling them in another market at higher
prices. |
| ASIAN DOLLARS |
U.S. dollars
deposited in Asia and the Pacific Basin. |
| ATTRIBUTIVE BASIS |
Method of
accounting for merchandise where direct identification of the goods
with the shipment as admitted to the zone has been
lost. |
| AUDIT-INSPECTION PROCEDURES |
Provide the
framework for Customs to reduce on-site supervision of zones and for
zone operators/users to increase zone operating flexibility through
the method of supervising zones. |
| BALANCE OF TRADE |
The difference
between a country's total imports and exports. |
| BARTER |
Trade in which
merchandise is exchanged directly for other merchandise without use
of money. |
| BENEFICIARY |
The person in
whose favor a LETTER OF CREDIT is issued or a DRAFT is
drawn. |
| BILL OF LADING |
A document that
establishes the terms of a contract between a shipper and a
transportation company under which freight is to be moved between
specified points for a specified charge. |
| BONDED WAREHOUSE |
A warehouse
authorized by CUSTOMS authorities for storage of goods on which
payment of DUTIES is deferred until the goods are
removed. |
| BOOKING |
An arrangement
with a steamship company for the acceptance and carriage of
freight. |
| CARNET |
A customs
document permitting the holder to carry or send merchandise
temporarily into certain foreign countries without paying duties or
posting bonds. |
| CASH AGAINST DOCUMENTS (C.A.D.) |
Payments for
goods in which a commission house or other intermediary transfers
title documents to the buyer upon payment in cash. |
| CASH IN ADVANCED (C.I.A.) |
Payment for
goods in which the price is paid in full before shipment is
made. |
| CASH WITH ORDER (C.W.O.) |
Payment for
goods in which the buyer pays when ordering and in which the
transaction is binding on both parties. |
| CERTIFICATE OF INSPECTION |
A document
certifying that merchandise was in good condition immediately prior
to its shipment. |
| CERTIFICATE OF MANUFACTURE |
A statement in
which a producer of goods certifies that manufacture has been
completed and that the goods are now at the disposal of the
buyer. |
| CERTIFICATE OF ORIGIN |
A document,
certifying the country of origin of specified goods. |
| COST AND FREIGHT (C &
F) |
A pricing term
indicating that the cost of the goods and freight charges are
included in the quoted price. |
| CHARTER PARTY |
Written
contract between the owner of a vessel and a "charterer" who rents
use of the vessel or a part of its freight space. |
| COST AND INSURANCE (C & I ) |
A pricing term
indicating that the cost of the product and insurance are included
in the quoted price. |
| COST, INSURANCE, FREIGHT |
A pricing term
indicating that the cost of the goods, insurance, and freight are
included in the quoted price. |
| CLEAN BILL OF LADING |
A receipt for
goods issued by a carrier that indicates that the goods were
received in "apparent good order and condition", without damages or
other irregularities. |
| CLEAN DRAFT |
A draft to
which no documents have been attached. |
| COLLECTION PAPERS |
All documents
submitted to a buyer for the purpose of receiving payment for a
shipment. |
| COMMERCIAL ATTACHÉ |
The commerce
expert on the diplomatic staff of his/her country's embassy or large
consulate. |
| COMMERCIAL INVOICE |
An itemized
list of goods shipped, usually among an exporter's COLLECTION
PAPERS. |
| COMMON CARRIER |
An individual,
partnership, or corporation that transports persons or goods for
compensation. |
| CONFIRMED LETTER OF CREDIT |
A letter of
credit, issued by a foreign bank, whose validity has been confirmed
by a U.S. bank. |
| CONSIGNMENT |
Delivery of
merchandise from an exporter (consignor) to an agent (consignee)
under agreement that the agent sell the merchandise for the account
of the exporter. |
| CONSTRUCTIVE TRANSFER |
A legal fiction
which permits acceptance of a Customs entry for merchandise in a
zone before its physical transfer to the Customs
territory. |
| 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. |
| CONVERTIBLE CURRENCY |
A currency that
can be bought and sold for other currencies at will. |
| CORPORATION, PRIVATE |
Any corporation
which is organized for the purpose of establishing, operating and
maintaining a foreign-trade zone and which is chartered under a
special act of the State within which it is to operate such a
zone. |
| CORPORATION, PUBLIC |
A State,
political subdivision thereof, a municipality, a public agency of a
State, political subdivision thereof, or municipality, or a
corporate municipal instrumentality of one or more
States. |
| CORRESPONDENT BANK |
A bank that, in
its own country, handles the business of a foreign
bank. |
| COUNTERTRADE |
The sale of
goods or services that are paid in whole or in part by the transfer
of goods or services from a foreign country. |
| CREDIT RISK INSURANCE |
Insurance
designed to cover risks of nonpayment for delivered
goods. |
| CUSTOMS |
The authorities
designated to collect duties levied by a country on imports and
exports. |
| CUSTOMS TERRITORY |
Territory of
the U.S. in which the general tariff laws of the U.S.
apply. |
| CUSTOMHOUSE BROKER |
An individual
or firm licensed to enter and clear goods through
Customs. |
| DATE DRAFT |
A draft that
matures in a specified number of days after the date it is issued,
without regard to the date of ACCEPTANCE. |
| DEACTIVIZATION |
Voluntary
discontinuation of the activation of an entire zone or subzone by
the grantee or operator. |
| DEFAULT |
An act or
omission that will result in a claim for duties, taxes, charges or
liquidated damages under the FTZ Operator's Bond |
| DEFERRED PAYMENT CREDIT |
Type of LETTER
OF CREDIT providing for payment some time after presentation of
shipping documents by exporter. |
| DESTINATION CONTROL STATEMENT |
Any of various
statements that the U.S. Government requires to be displayed on
export shipments and that specify the destinations for which export
of the shipment has been authorized. |
| DEVALUATION |
The official
lowering of the value of one country's currency in terms of one or
more foreign currencies. |
| DISCREPANCY - LETTER OF CREDIT |
When documents
presented do not conform to the letter of credit. |
| DISPATCH |
An amount paid
by a vessel's operator to a charterer if loading or unloading is
completed in less time than stipulated in the charter
party. |
| DISTRIBUTOR |
A foreign agent
who sells for a supplier directly and maintains an inventory of the
supplier's products. |
| DISTRICT DIRECTOR |
The district
director of customs in whose district the zone is
located. |
| DISTRICT ENGINEER |
The engineer of
the Department of the Army in whose district the zone is
located. |
| DOCK RECEIPT |
A receipt
issued by an ocean carrier to acknowledge receipt of a shipment at
the carrier's dock or warehouse facilities. |
| DOCUMENTARY AGAINST ACCEPTANCE
(D/A) |
Instructions
given by a shipper to a bank indicating that documents transferring
title to goods should be delivered to the buyer only upon the
buyer's acceptance of the attached draft. |
| DRAFT |
An
unconditional order in writing from one person (the drawer) to
another (the drawee), directing the drawee to pay a specified amount
to a named drawer at a fixed or determinable future
date. |
| DRAWBACK |
Articles
manufactured or produced in the United States with the use of
imported components or raw materials and later exported are entitled
to a refund of up to 99% of the duty charged on the imported
components. |
| DRAWEE |
The individual
or firm on whom a draft is drawn and who owes the stated
amount. |
| DRAWER |
The individual
or firm that issues or signs a draft and thus stands to receive
payment of the stated amount from the drawee. |
| DUMPING |
Exporting/Importing merchandise into a country below the
costs incurred in production and shipment. |
| DUTY |
A tax imposed
on imports by the customs authority of a country. |
| EURODOLLARS |
U.S. dollars
placed on deposit in banks outside the United States; usually in
Europe. |
| EXCHANGE PERMIT |
A government
permit sometimes required by the importer's government to enable the
importer to convert his or her own country's currency into foreign
currency with which to pay a seller in another country. |
| EXCHANGE RATE |
The price of
one currency in terms of another, i.e., the number of units of one
currency that may be exchanged for one unit of another
currency. |
| EXHIBITION |
The showing of
merchandise within a zone, usually to prospective
buyers. |
| EXIMBANK |
The
Export-Import Bank of the United States. |
| EXPORT BROKER |
An individual
or firm that brings together buyers and sellers for a fee but does
not take part in actual sales. |
| EXPORT COMMISSION HOUSE |
An organization
which, for a commission, acts as a purchasing agent for a foreign
buyer. |
| EXPORT LICENSE |
A government
document that permits the "Licensee" to engage in the export of
designated goods to certain destinations. |
| EXPORT MANAGEMENT COMPANY |
A private firm
that serves as the export department for several manufacturers,
soliciting and transacting export business on behalf of its clients
in return for a commission, salary, or retainer plus
commission. |
| EXPORT TRADING COMPANY |
A firm similar
or identical to an export management company. |
| FIRST IN-FIRST OUT (FIFO) |
An accounting
method based on an assumption regarding the flow of goods that older
stock is disposed of first, in accordance with good merchandising
policy. |
| FORCE MAJEURE |
The title of a
standard clause in marine contracts exempting the parties for
nonfulfillment of their obligations as a result of conditions beyond
their control, such as earthquakes, floods, or war. |
| FOREIGN EXCHANGE |
The currency or
credit instruments of a foreign country. |
| FOREIGN FIRST (FOFI) |
An accounting
method based on an assumption regarding the flow of goods that
foreign status merchandise is disposed of first. |
| FOREIGN SALES AGENT |
An individual
or firm that serves as the foreign representative of a domestic
supplier and seeks sales abroad for the supplier. |
| FOREIGN-TRADE ZONE/FREE TRADE
ZONE |
A port
designated by the government of a country for duty-free entry of any
non-prohibited goods. Merchandise may be stored, displayed, or
used for manufacturing, etc., within the zone and reexported without
duties being paid. |
| FOREIGN-TRADE ZONES ACT |
The
Foreign-Trade Zones Act of June 18, 1934, (48 Stat. 998-1003; 19
U.S.C. 81a-81u) as amended. |
| FOREIGN-TRADE ZONES BOARD |
The Board which
is established to carry out the provisions of the Foreign-Trade
Zones Act. |
| FOUL BILL OF LADING |
A receipt of
goods issued by a carrier with an indication that the goods were
damaged when received. |
| FREE ALONGSIDE (F.A.S.) |
A pricing term
indicating that the quoted price includes the cost of delivering the
goods alongside a designated vessel. |
| FREE IN (F.I.) |
A pricing term
indicating that the charter of a vessel is responsible for the cost
of loading and unloading goods from the vessel. |
| FREE PORT |
An area such as
a port city into which merchandise may be legally moved without
payment of duties. |
| FREIGHT FORWARDER |
An independent
business which handles export shipments for
compensation. |
| GATT/GENERAL AGREEMENT ON TARIFFS AND
TRADE |
A multilateral
treaty intended to help reduce trade barriers between the signatory
countries and to promote trade through tariff
concessions. |
| GENERAL EXPORT LICENSE |
Any various
export licenses covering export commodities for which VALIDATED
EXPORT LICENSES are not required. |
| GRANTEE |
A corporation
to which the privilege of establishing, operating, and maintaining a
foreign-trade zone has been granted by the Foreign-Trade Zones
Board. |
| GROSS WEIGHT |
The full weight
of a shipment, including goods and packaging. |
| IMPORT LICENSE |
A document
required and issued by some national governments authorizing the
importation of goods into their individual countries. |
| INLAND BILL OF LADING |
A bill of
lading used in transporting goods overland to the exporter's
international carrier. |
| 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. |
| LETTER OF CREDIT(L/C) |
A document,
issued by a bank per instructions by a buyer of goods, authorizing
the seller to draw a specified sum of money under specified terms,
usually the receipt by the bank of certain documents within a given
time. |
| LICENSING |
A business
arrangement in which the manufacturer of a product grants permission
to some other group or individual to manufacture that product in
return for specified royalties. |
| MANIPULATION |
Processing
wherein merchandise is packed, unpacked, repacked, cleaned, sorted,
graded or otherwise changed in condition but not
manufactured. |
| MANUFACTURE |
Generally, the
production of articles for use from raw or prepared materials by
substantially transforming such materials into new
forms. |
| MARINE INSURANCE |
Insurance that
compensates the owners of goods transported overseas in the event of
loss that cannot be legally recovered from the carrier. |
| MARKING |
Letters,
numbers, and other symbols on cargo packages to facilitate
identification. |
| MERCHANDISE |
Includes goods,
wares, and chattels of every description except Prohibited
Merchandise, building materials, production equipment and supplies
for use in operation of a zone. |
| MERCHANDISE, DOMESTIC |
Merchandise
which has been produced in the U.S. and not exported
therefrom. |
| MERCHANDISE, FOREIGN |
Imported
Merchandise which has not been properly released from Customs
custody into the Customs territory of the U.S. |
| MERCHANDISE, FUNGIBLE |
Merchandise
which for commercial purposes is identical and interchangeable in
all situations. |
| MERCHANDISE, MIXED STATUS |
Foreign
Merchandise which has been combined with Domestic Merchandise in the
zone. |
| MERCHANDISE/OPERATIONS,
PROHIBITED |
Merchandise,
the importation of which is prohibited by law on grounds of public
policy or morals, or excluded by order of the Foreign-Trade Zones
Board.. |
| MERCHANDISE/OPERATIONS,
RESTRICTED |
Merchandise
which may not be authorized for delivery from Customs custody
without a special permit, or a waiver thereof by an agency of the
U.S. Government. |
| NONPRIVILEGED FOREIGN (NPF) |
Foreign
Merchandise or non-tax-paid domestic merchandise upon which the duty
and applicable taxes will be determined at the time of entry from
the zone for consumption. |
| OCEAN BILL OF LADING |
A bill of
lading indicating that the exporter consigns a shipment to an int'l
carrier for transportation to a specified foreign
market. |
| ON BOARD BILL OF LADING |
A bill of
lading in which a carrier certifies that goods have been placed on
board a certain vessel. |
| OPEN ACCOUNT |
A trade
arrangement in which goods are shipped to a foreign buyer without
guarantee of payment. |
| OPEN INSURANCE POLICY |
A marine
insurance policy that applies to all shipments made by an exporter
over a period of time rather than to one shipment only. |
| OPERATOR |
A corporation,
partnership, or person that operates a zone or subzone under the
terms of an agreement with the Grantee. |
| OPERATOR'S BOND |
All zone
operators must submit to Customs a bond to assure compliance with
Customs regulations. |
| ORDER BILL OF LADING |
A negotiable
bill of lading made out to the order of the shipper. |
| PACKING LIST |
A list showing
the number and kinds of items being shipped, as well as other
information needed for transportation purposes. |
| PARCEL POST RECEIPT |
The postal
authorities' signed acknowledgment of delivery to receiver of a
shipment made by parcel post. |
| PRIVATE EXPORT FUNDING CORPORATION
(PEFCO) |
Lends to
foreign buyers to finance exports from U.S. |
| PERILS OF THE SEA |
A marine
insurance term used to designate heavy weather, stranding,
lightning, collision, and seawater damage. |
| PHYTOSANITARY INSPECTION
CERTIFICATE |
A certificate,
issued by the U.S. Department of Agriculture to satisfy import
regulations for foreign countries, indicating that a U.S. shipment
has been inspected and is free from harmful pests and plant
diseases. |
| POLITICAL RISK |
In export
financing the risk of loss due to such causes as currency,
inconvertibility, government action preventing entry of goods,
expropriation or confiscation, war, etc. |
| PRIVILEGED FOREIGN (PF) |
Foreign
merchandise or non-tax paid domestic merchandise upon which the duty
and applicable taxes have been determined at the time this status is
approved. |
| 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. |
| PURCHASING AGENT |
An agent who
purchases goods in his or her own country on behalf of foreign
importers such as government agencies and large private
concerns. |
| QUOTA |
The quantity of
goods of a specific kind that a country permit to be imported
without restriction or imposition of additional DUTIES. |
| QUOTATION |
An offer to
sell goods at a stated price and under specified
conditions. |
| REACTIVATION |
A resumption of
the activated status of an entire area that was previously
deactivated without any change in the operator or the area
boundaries. |
| REGIONAL COMMISSIONER |
The Regional
Commissioner of Customs for the Customs Region in which the zone is
located. |
| REMITTING BANK |
Bank that sends
the draft to overseas bank for collection. |
| RESIDENT MEMBER |
The official
that has been delegated authority by the Secretary of the Army to
act on nondiscretionary zone matters. |
| RETAIL TRADE |
Generally,
sales or offers to sell goods or services to individuals for
personal use. |
| REVOCABLE LETTER OF CREDIT |
A letter of
credit that can be canceled or altered by the drawee (buyer) after
it has been issued by the drawee's bank. |
| SCHEDULE B |
Refers to
Schedule B, Statistical Classification of Domestic and Foreign
Commodities Exported from the United States. |
| SHIPPER'S EXPORT DECLARATION |
A form required
for all shipments by the U.S. Treasury Department and prepared by a
shipper, indicating the value, weight, destination, and other basic
information about an export shipment. |
| SHIP'S MANIFEST |
An instrument
in writing, signed by the captain of a ship, that lists the
individual shipments constituting the ship's cargo. |
| SIGHT DRAFT |
A draft that is
payable upon presentation to the drawee. |
| SPOT EXCHANGE |
The purchase or
sale of foreign exchange for immediate delivery. |
| STANDARD INDUSTRIAL CLASSIFICATION
(SIC) |
A standard
numerical code system used by the U.S. Government to classify
products and services. |
| STANDARD INTERNATIONAL TRADE CLASSIFICATION
(SITC) |
A standard
numerical code system developed by the U.N. to classify commodities
used in international trade. |
| STATE |
Any State, the
District of Columbia, and Puerto Rico. |
| STEAMSHIP CONFERENCE |
A group of
steamship operators that operate under mutually agreed upon freight
rates. |
| STRAIGHT BILL OF LADING |
A nonnegotiable
bill of lading in which the goods are consigned directly to a named
consignee. |
| SUBZONE |
A special
purpose zone established as part of a zone project for a limited
purpose, that cannot be accommodated within an existing
zone. |
| TARE WEIGHT |
The weight of a
container and packing materials without the weight of the goods it
contains. |
| TENOR |
Designation of
a payment as being due at sight, a given number of days after sight,
or a given number of days after date. |
| THROUGH BILL OF LADING |
A single bill
of lading covering both the domestic and international carriage of
an export shipment. |
| TIME DRAFT |
A draft that
matures either a certain number of days after acceptance or a
certain number of days after the date of the draft. |
| TRAMP STEAMER |
A ship not
operating on regular routes or schedules. |
| TRANSACTION STATEMENT |
A document that
delineates the terms and conditions agreed upon between the importer
and exporter. |
| TRANSFER |
To take
merchandise with zone status from a zone for consumption,
transportation, exportation, warehousing, cartage or lighterage,
vessel supplies and equipment, admission to another zone, and like
purposes. |
| TRUST RECEIPT |
Release of
merchandise by a bank to a buyer in which the bank retains title to
the merchandise. |
| UNIQUE IDENTIFIER NUMBER (UIN) |
This inventory
method controls merchandise in a zone by unique numbers and/or
letters that identify merchandise admitted to a zone. |
| USER |
A person or
firm using a zone for storage, handling or processing of
merchandise. |
| VALIDATED EXPORT LICENSE |
A required
document issued by the U.S. Government authorizing the export of
specific commodities. |
| VESSEL/AIRCRAFT SUPPLY |
The supply of
goods or equipment free of duties and taxes under section 309 of the
Tariff Act, to eligible vessels or aircraft for use while actually
engaged in foreign trade, or in transit to any U.S.
possession. |
| WAREHOUSE RECEIPT |
A receipt
issued by a warehouse listing goods received for
storage. |
| WHARFAGE |
A charge
assessed by a pier or dock owner for handling incoming or outgoing
cargo. |
| WITHOUT RESERVE |
A term
indicating that a shipper's agent or representative is empowered to
make definitive decisions and adjustments abroad without approval of
the group or individual represented. |
| ZONE LOT NUMBER (ZLN) |
A collection of
merchandise maintained under an inventory control method based on
specific identification of merchandise admitted to a zone by lot and
lot number. |
| ZONE PROJECT |
All of the zone
and subzone sites under a single grantee, normally in a single port
of entry. |
| ZONE RESTRICTED (ZR) |
Merchandise
admitted to a zone for the sole purpose of exportation or
destruction. |
| ZONE SITE |
The physical
location of a zone or subzone. |
| ZONE STATUS |
The status of
merchandise admitted to a Foreign-Trade Zone, i.e., domestic (D),
non-privileged foreign (NPF), privileged foreign (PF), or zone
restricted (ZR)
status. |
