Online International Trade Library - Index

ATA Carnet
A customs document which enables one to carry or send goods temporarily into certain foreign countries without paying duties or posting bonds.
Acceptance
The act of a drawee acknowledging in writing on the face of a draft, payable at a fixed or determinable future date, that he will pay the draft at maturity.
Acceptance Draft
A sight draft, documents against acceptance. See "Sight Draft," "Documents Against Acceptance."
Airwaybill
The carrying agreement between shipper and air carrier which is obtained from the airline used to ship the goods.
All Risks Clause
An insurance provision which provides additional coverage to an Open Cargo Policy, usually for an additional premium. Contrary to its name, the clause does not protect against all risks. The more common perils it does cover are theft, pilferage, non-delivery, fresh water damage, contact with other cargo, breakage, and leakage. Inherent vice, loss of market, and losses caused by delay are not covered.
Authority to Pay
A document comparable to a revocable letter of credit but under whose terms the authority to pay the seller stems from the buyer rather than from a bank.
Balance of Trade
The balance between a country's exports and imports. Beneficiary: The person in whose favor a letter of credit is issued or a draft is drawn.
Bill of Exchange
See "Draft."
Bill of Lading
A document which provides the terms of the contract between the shipper and the transportation company to move freight between stated points at a specified charge.
Bonded Warehouse
A building authorized by customs authorities for the storage of goods without payment of duties until removal.
Brussels Tariff Nomenclature
See "Nomenclature of the Customs Cooperation Council."
Buying Agent
An agent who buys in this country for foreign importers, especially for such large foreign users as mines, railroads, governments, and public utilities. Synonymous with "purchasing agent."
C. & F. - Cost and Freight: Same as C.I.F., except that insurance is covered by the buyer.
C.I.F.
Cost, Insurance, and Freight. A pricing term under which the seller pays all expenses involved in the placing of merchandise on board a carrier and in addition prepays the freight and insures the goods to an agreed destination.
Carrier
A transportation line that hauls cargo.
Certificate of Free Sale
A certificate, required by some foreign governments, stating that the goods for export, if products under the jurisdiction of the U.S. Federal Food and Drug Administration, are acceptable for sale in the United States, i.e., that the products are sold freely, without restriction. FDA will issue shippers a "letter of comment" to satisfy foreign requests or regulations.
Certificate of Inspection
A document in which certification is made as to the good condition of the merchandise immediately prior to shipment. The buyer usually designates the inspecting organization, usually an independent inspection firm or government body.
Certificate of Manufacture
A statement by a producer, sometimes notarized, which certifies that manufacture has been completed and that the goods are at the disposal of the buyer.
Certificate of Origin
A document in which certification is made as to the country of origin of the merchandise.
C.F.R. (Cost and Freight) and C.I.F. (Cost, Insurance, and Freight)—indicate that the seller will deliver the goods onto a vessel and pay all the normal charges to get the cargo to the named seaport. The buyer assumes all risks from the time the cargo is placed onto the vessel at the seaport of loading. C.I.F. also indicates that the seller arranges for insurance as an automatic condition of the contract. 
Chamber of Commerce
An association of businessmen whose purpose is to promote commercial and industrial interests in the community.
Clean Bill of Lading
A bill of lading signed by the transportation company indicating that the shipment has been received in good condition with no irregularities in the packing or general condition of all or any part of the shipment. See "Foul Bill of Lading."
Collection
The procedure involved in a bank's collecting money for a seller against a draft drawn on a buyer abroad, usually through a correspondent bank.
Collection Papers
The documents submitted, usually with a draft or against a letter of credit, for payment of an export shipment.
Commercial Attaché
The commercial expert on the diplomatic staff of his country's embassy or large consulate in a foreign country.
Commercial Invoice
A trade invoice.
Commission Agent
See "Foreign Sales Representative."
Commission Representative
See "Foreign Sales Representative."
Conference Line
A member of a steamship conference. See "Steamship Conference."
Confirmed Letter of Credit
Issued by a bank abroad whose validity and terms are confirmed to the beneficiary in the United States by a U.S. bank.
Consignee
The person, firm, or representative to whom a seller or shipper sends merchandise and who, upon presentation of the necessary documents, is recognized as the owner of the merchandise for the purpose of the payment of customs duties. This term is also used as applying to one to whom goods are shipped, usually at the shipper's risk, when an outright sale has not been made. See "Consignment."
Consignment
A term pertaining to merchandise shipped to a consignee abroad when an actual purchase has not been made, under an agreement by which the consignee is obligated to sell the goods for the account of the consignor, and to remit proceeds as goods are sold.
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 Invoice
A detailed statement regarding the character of goods shipped, duly certified by the consul of the importing country at the port of shipment.
Contingency Insurance Insurance taken out by a shipper supplementary to insurance taken out by the consignee abroad; especially to cover shipments made on a "C. & F." basis.
 
Correspondent Bank
A bank which is a depository for another bank, accepting deposits and collecting items for its bank depositor.
Country of Origin
The country in which a product or commodity is manufactured or produced.
Credit Risk Insurance
A form of insurance which protects the seller against loss due to default on the part of the buyer. See "FCIA."
Customs
The agency or procedure for collecting duties imposed by a country on imports or exports.
D/A
See "Documents Against Acceptance."
D/P
See "Documents Against Payment."
Delivered at Frontier
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.
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 and may be used irrespective of the mode of transport.
Delivered Duty Unpaid
The seller must deliver the goods to the named destination and is responsible for all costs involved in transportation, including exportation. The buyer handles the import formalities.
D.E.Q. Delivered Ex Quay—indicates that the seller must deliver the goods onto the quay (dock or wharf), having cleared the goods for import and paid all taxes, duties, etc. applicable to that clearance. 
Delivery Point
See "Specific Delivery Point."
Demurrage
Excess time taken for loading or unloading a vessel as a result of acts of a shipper. Charges are assessed by the shipping company.
DISC
See "Domestic International Sales Corporation."
Discount (Financial)
A deduction from the face value of commercial paper such as bills of exchange, in consideration of receipt of cash by the seller before maturity date.
Discrepancy-Letter of Credit: When documents presented do not conform to the terms of the letter of credit, it is referred to as a "discrepancy."
Distributor
A firm that sells directly for a manufacturer, usually on an exclusive basis for a specified territory, and which maintains an inventory on hand.
Dock Receipt
A receipt issued by an ocean carrier or its agent, acknowledging that a shipment has been delivered and received at the dock or warehouse of the carrier.
Documentary Credit
See "Letter of Credit (Commercial)."
Documentary Draft
A draft to which documents are attached.
Documentation/Documents
See "Shipping Documents."
Documents Against Acceptance (D/A)
A type of payment for goods in which the documents transferring title to the goods are not given to the buyer until he has accepted the draft issued against him.
Documents Against Payment (D/P)
A type of payment for goods in which the documents transferring title to the goods are not given to the buyer until he has paid the value of a draft issued against him.
Domestic International Sales Corporation (DISC)
An export sales corporation set up by a United States company under U.S. Government authorization to promote exports from the United States by giving the exporter economic advantages not available outside such authorization.
Draft
The same as a "bill of exchange." 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 draft). See "Date Draft," "Documentary Draft," "Sight Draft," "Time Draft."
Drawback (Import)
The repayment, up to 99%, of customs duties paid on merchandise which later is exported, as part of a finished product, is known as a drawback. It refers also to a refund of a domestic tax which has been paid, upon exportation of imported merchandise.
Drawee
One on whom a draft is drawn, and who owes the stated amount. See "Draft."
Drawer
One who "draws" a draft, and receives payment. See "Draft."
Duty
The tax imposed by a government on merchandise imported from another country.
EMC
Export Management Company.
ETC
Export Trading Company.
Ex (Point of Origin)
A pricing term under which the seller's only responsibility is to clear the goods for export and make them available to the buyer at an agreed upon location (factory, warehouse, ship, etc.). The buyer then bears the full cost and risk involved in transporting the goods to his desired location. Other terms used are "Ex Works," Ex Ship," and "Ex Quay."
Exchange Permit
A governmental permit sometimes required of an importer to enable him to convert his own country's currency into a foreign currency with which to pay a seller in another country.
Exchange Regulations/Restrictions
Restrictions imposed by an importing country to protect its foreign exchange reserves. See "Exchange Permit."
Eximbank
The Export-Import Bank of the U.S. in Washington. See "Guide to Export Assistance."
Excise Tax
A domestic tax assessed on the manufacture, sale, or use of a commodity within a country. Usually refundable if the product is exported.
Expiration Date
The final date upon which the presentation of documents and drawing of drafts under a letter of credit may be made.
Export
To send goods to a foreign country or overseas territory.
Export Broker
One who brings together the exporter and importer for a fee and then withdraws from the transaction.
Export Declaration
See "Shipper's Export Declaration."
Export License
A governmental permit required to export certain products to certain destinations.
Export Management Company (EMC)
A firm which acts as local export sales agent for several non-competing manufacturers. (Term synonymous with "Manufacturer's Export Agent.")
Export Merchant
A producer or merchant who sells directly to a foreign purchaser without going through an intermediate such as an export broker.
E.X.W. Ex Works
Indicates that the buyer is responsible for cargo when it's available at the seller's factory. 
F.A.S.
Free Along Side, as in "F.A.S. (Vessel)," a pricing term under which the seller must deliver the goods to a pier and place them within reach of the ship's loading equipment.
F.C.A.—Free Carrier At
—indicates that the seller delivers the goods to the named place 'free' of any transportation cost, having cleared the cargo for export. The seller accepts transportation costs, risks, and responsibilities until the cargo is handed over at the named place. 
FCIA
Foreign Credit Insurance Association.
Floating Policy
See "Open Policy."
F.O.B.
Free on Board, as in "F.O.B. (Vessel)," a pricing term under which the seller must deliver the goods on board the ship at the point named at his own expense. Similar terms are "F.O.B. (Destination)" and F.O.B. (Named Point of Exportation)."
FOR/FOT
FOR and FOT mean "Free on Rail" and "Free on Truck." These terms are synonymous since the word "truck" relates to the railway wagons. They should only be used when the goods are to be carried by rail.
Foreign Sales Representative
A representative or agent residing in a foreign country who acts as a salesman for a U.S. manufacturer, usually for a commission. Sometimes referred to as a "sales agent" or "commission agent." See "Representative."
Foreign Trade Zone
An area where goods of foreign origin may be brought in for re-export or transhipment without the payment of customs duty.
Foul Bill of Lading
A receipt for goods issued by a carrier bearing a notation that the outward containers or goods have been damaged. See "Clean Bill of Lading."
Free Carrier (...named place)
The seller must clear the goods for export, and deliver them to a carrier at a specific point determined by the buyer. The buyer then bears all costs and risks of transporting the goods to the desired destination. Also see "Named Point and "Specific Delivery Point."
Free Port
An area generally encompassing a port and its surrounding locality into which goods may enter duty-free or subject only to minimal revenue tariffs.
Free Sale
See "Certificate of Free Sale."
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 the risk 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.
Freight Carriage (and insurance paid to)
Like "Freight or Carriage paid to..." but with the addition that the seller has to procure transport insurance against the risk of loss of or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.
Freight Forwarder
An agent who assists his exporter client in moving cargo to a foreign destination.
General Agreement on Tariffs and Trade (GATT)
The General Agreements on Tariffs and Trade is a multilateral trade treaty among governments, embodying rights and obligations. The detailed rules set out in the Agreement constitute a code which the parties to the Agreement have agreed upon to govern their trading relationships.
General License (Export)
Government authorization to export without specific documentary approval.
Gross Weight
Total weight of goods, packing, and container, ready for shipment.
Handling Charges
The forwarder's fee to his shipper client.
Import
To bring merchandise into a country from another country or overseas territory.
Import License
A governmental document which permits the importation of a product or material into a country where such licenses are necessary.
In Bond
A term applied to the status of merchandise admitted provisionally into a country without payment of duties. See "Bonded Warehouse."
Inco Terms
Indicate whether the buyer or the seller carries the risk, responsibility, liability, or costs at specific points during a transaction.
Inconvertibility
The inability to exchange the currency of one country for the currency of another.
Inherent Vice
Defects or characteristics of a product that could lead to deterioration without outside influence. An insurance term. See "All Risk Clause."
Insurance Certificate
A document issued by an insurance company, usually to order of shipper, under a marine policy and in cover of a particular shipment of merchandise.
Invoice
See "Commercial Invoice," "Consular Invoice."
Irrevocable
Applied to letters of credit. An irrevocable letter of credit is one which cannot be altered or canceled once it has been negotiated between the buyer and his bank.
Joint Venture
A commercial or industrial enterprise in which principals of one company share control and ownership with principals of another.
L/C
Letter of Credit.
Legal Weight
The weight of goods plus any immediate wrappings which are sold along with the goods; e.g., the weight of a tin can together with its contents. See "Net Weight."
Letter of Credit (Commercial)
Abbreviated "L/C." A document issued by a bank at buyer's request in favor of a seller, promising to pay an agreed amount of money upon receipt by the bank of certain documents within a specified time.
License
See "Exchange License," "Export License," "Import License," "Validated License."
Licensing
The grant of technical assistance and service and/or the use of proprietary rights, such as a trademark or patent, in return for royalty payments.
MEA
Manufacturer's Export Agent. See "Export Management Company." Manufacturer's Export Agent (MEA): See "Export Management Company."
Marine Insurance
An insurance which will compensate the owner of goods transported overseas in the event of loss which cannot be legally recovered from the carrier. Also covers air shipments.
Marks
A set of letters, numbers and/or geometric symbols, generally followed by the name of the port of destination, placed on packages for export for identification purposes.
Maturity Date
The date upon which a draft or acceptance becomes due for payment. Most-Favored-Nation Status: All countries having this designation receive equal treatment with respect to customs and tariffs.
Named Point
See "Specific Delivery Point."
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. See "Legal Weight."
Nomenclature of the Customs Cooperation Council
This was known as the "Brussels Classification Nomenclature" prior to January 1, 1975. It is the customs tariff adhered to by most European countries and many other countries throughout the world, but not by the United States.
"On Board" Bill of Lading
A bill of lading in which a carrier acknowledges that goods have been placed on board a certain vessel.
Open Cargo Policy
Synonymous with "Floating Policy." An insurance policy which binds the insurer automatically to protect with insurance all shipments made by the insured from the moment the shipment leaves the initial shipping point until delivered at destination. The insuring conditions include clauses naming such risks insured against as "perils of the sea," fire, jettison, forcible theft, and barratry. See >'Perils of the Sea," "Barratry," "All Risks Clause."
"Order" Bill of Lading
A bill of lading, negotiable, made out to the order of the shipper.
Packing List
A list which shows number and kinds of packages being shipped, totals of gross, legal, and net weights of the packages, and marks and numbers on the packages. The list may be requested by an importer or may be required by an importing country to facilitate the clearance of goods through customs.
Perils of the Sea
A marine insurance term used to designate heavy weather, stranding, lightning, collision, and sea water damage.
Piggybacking
The assigning of export marketing and distribution functions by one manufacturer to another.
Port Marks
See "Marks."
Pro Forma Invoice
An invoice forwarded by the seller of goods prior to shipment to advise the buyer of the weight and value of the goods.
Quota
The total quantity of a product or commodity which may be imported into a country without restriction or the penalty of additional duties or taxes.
Quotation
An offer to sell goods at a stated price and under stated terms.
Rate of Exchange
The basis upon which money of one country will be exchanged for that of another. Rates of exchange are established and quoted for foreign currencies on the basis of the demand, supply, and stability of the individual currencies. See "Exchange."
Revocable
Applied to letters of credit. A revocable letter of credit is one which can be altered or canceled by the buyer after he has opened it through his bank. See "Irrevocable."
Royalty Payment
The share of the product or profit paid by a licensee to his licenser. See "Licensing."
S/D
See "Sight Draft."
S.I.T.C.
See "Standard International Trade Classification."
Sales Agent
See "Foreign Sales Representative."
Sales Representative
See "Foreign Sales Representative."
Sanitary Certificate
A certificate which attests to the purity or absence of disease or pests in the shipment of food products, plants, seeds, and live animals.
Schedule B
Refers to "Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States." A seven-digit Schedule B number must be entered on the shipper's U.S. Export Declaration for every commodity shipped.
Shipper's Export Declaration
A form required by the U.S. Treasury Department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as Schedule B identification number.
Shipping Documents
Commercial invoices, bills of lading, insurance certificates, consular invoices, and related documents.
Ship's Manifest
A true list in writing of the individual shipments comprising the cargo of a vessel, signed by the captain.
Sight Draft (S/D)
A draft so drawn as to be payable upon presentation to the drawee or at a fixed or determinable date thereafter. See "Documents Against Acceptance," "Documents Against Payment."
Specific Delivery Point
A point in sales quotations which designates specifically where and within what geographical locale the goods will be delivered at the expense and responsibility of the seller; e.g., F.A.S. named vessel at named port of export.
Standard Industrial Classification (SIC)
A numerical system developed by the U.S. Government for the classification of commercial services and industrial products. Also classifies establishments by type of activity.
Standard International Trade Classification (SITC)
A numerical system developed by the United Nations to classify commodities used in international trade as an aid to reporting trade statistics.
Steamship Conference
A group of vessel operators joined together for the purpose of establishing freight rates. A shipper may receive reduced rates if the shipper enters into a contract to ship on vessels of Conference members only.
Stocking Distributor
A distributor who maintains an inventory of goods of a manufacturer.
Straight Bill of Lading
A bill of lading, non-negotiable, in which the goods are consigned directly to a named consignee.
Tare Weight
The weight of packing and containers without the goods to be shipped.
Tariff
A schedule or system of duties imposed by a government on goods imported or exported; the rate of duty imposed in a tariff.
Tenor
The time fixed or allowed for payment, as in "the tenor of a draft."
Time Draft
A draft so drawn as to mature at a certain fixed time after presentation or acceptance.
U.S. Standard Master
A single business form with combined stencil which includes space for information required on many different export forms. Use of this form eliminates multiple typing.
Validated License
A government document authorizing the export of commodities within the limitations set forth in the document.
Visa: A signature of formal approval on a document. Obtained from Consulates.  Wharfage
Charge assessed by carrier for the handling of incoming or outgoing ocean cargo. 

GLOSSARY OF INTERNATIONAL TRADE TERMS

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.