Export Import Glossary

• Acceptance
This term has several related meanings:
(1) A time draft (or bill of exchange) that the drawee has accepted and is unconditionally obligated to pay at maturity. The draft must be presented first for acceptance - the drawee becomes the "acceptor" - then for payment. The word "accepted" and the date and place of payment must be written on the face of the draft.
(2) The drawee's act in receiving a draft and thus entering into the obligation to pay its value at maturity.
(3) Broadly speaking, any agreement to purchase goods under specified terms. An agreement to purchase goods at a stated price and under stated terms.
• Ad valorem
According to value. See Duty.
• Advance against documents
A loan made on the security of the documents covering the shipment.
• Advising bank
A bank, operating in the exporter's country, that handles letters of credit for a foreign bank by notifying the export firm that the credit has been opened in its favor. The advising bank fully informs the exporter of the conditions of the letter of credit without necessarily bearing responsibility for payment.
• Advisory capacity
A term indicating that a shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented. Compare Without reserve.
• Agent
See Foreign sales agent.
• Air waybill
A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is a nonnegotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. Compare Inland bill of lading, Ocean bill of lading, and through bill of lading.
• Alongside
The side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded aboard the ship.
• Antidiversion clause
See Destination control statement.
• Arbitrage
The process of buying foreign exchange, stocks, bonds, and other commodities in one market and immediately selling them in another market at higher prices.
• Asian dollars
U.S. dollars deposited in Asia and the Pacific Basin. Compare Eurodollars.
• ATA Carnet
See Carnet.
• Balance of trade
The difference between a country's total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.
• Barter
Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible.
• Beneficiary
person in whose favor a letter of credit is issued or a draft is drawn.
• Bill of exchange
See Draft.
• Bill of lading
A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. Also see Air waybill, Inland bill of lading, Ocean bill of lading, and through bill of lading.
• Bonded warehouse
A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
• Booking
An arrangement with a steamship company for the acceptance and carriage of freight.
• Buying agent
See Purchasing agent.
• Carnet
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds.
• Cash against documents (CAD)
Payment for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash.
• Cash in advance (CIA)
Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.
• Cash with order (CWO)
Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.
• Certificate of inspection
A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.
• Certificate of manufacture
A statement (often notarized) in which a producer of goods certifies that manufacture has been completed and that the goods are now at the disposal of the buyer.
• Certificate of origin
A document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods.
• CFR - Cost and freight
A pricing term indicating that the cost of the goods and freight charges are included in the quoted price; the buyer arranges for and pays insurance.
• Charter party
A written contract, usually on a special form, between the owner of a vessel and a "charterer" who rents use of the vessel or a part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation.
• CIF - Cost, insurance, freight
A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
• Clean bill of lading
A receipt for goods issued by a carrier that indicates that the goods were received in "apparent good order and condition," without damages or other irregularities. Compare Foul bill of lading.
• Clean draft
A draft to which no documents have been attached.
• Collection papers
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
• Commercial attache
The commerce expert on the diplomatic staff of his or her country's embassy or large consulate.
• Commercial invoice
An itemized list of goods shipped, usually included among an exporter's collection papers.
• Commission agent
See Purchasing agent.
• Common carrier
An individual, partnership, or corporation that transports persons or goods for compensation.
• Confirmed letter of credit
A letter of credit, issued by a foreign bank, the validity of which has been confirmed by a domestic bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment by the domestic bank even if the foreign buyer or the foreign bank defaults. See Letter of credit.
• Consignment
Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.
• Consular declaration
A formal statement, made to the consul of a foreign country, describing goods to be shipped.
• Consular invoice
A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity, and nature of the shipment.
• Convertible currency
A currency that can be bought and sold for other currencies at will.
• Correspondent bank
A bank that, in its own country, handles the business of a foreign bank.
• Counter trade
The sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a foreign country.
• Countervailing duty
A duty imposed to counter unfairly subsidized products.
• A duty imposed to counter unfairly subsidized products.
Pricing terms indicating that carriage, or carriage and insurance, are paid to the named place of destination. They apply in place of CFR and CIF, respectively, for shipment by modes other than water.
• Credit risk insurance
Insurance designed to cover risks of nonpayment for delivered goods. Compare Marine insurance.
• Customhouse broker
individual or firm licensed to enter and clear goods through customs.
• Customs
The authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.
• Date draft
A draft that matures in a specified number of days after the date it is issued, without regard to the date of acceptance. See Draft, Sight draft, and Time draft.
• Deferred payment credit
Type of letter of credit providing for payment some time after presentation of shipping documents by exporter.
• Demand draft
See Sight draft.
• Devaluation
The official lowering of the value of one country's currency in terms of one or more foreign currencies. For example, if the U.S. dollar is devalued in relation to the French franc, one dollar will "buy" fewer francs than before.
• DISC
Domestic international sales corporation. Discrepancy - Letter of credit - When documents presented do not conform to the letter of credit it is referred to as a discrepancy.
• Dispatch
An amount paid by a vessel's operator to a charterer if loading or unloading is completed in less time than stipulated in the charter party.
• Distributor
A foreign agent who sells for a supplier directly and maintains an inventory of the supplier's products.
• Dock receipt
A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse facilities. Also see Warehouse receipt.
• Documentary draft
draft to which documents are attached.
• Documents against acceptance (D/A)
Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance of the attached draft.
• Draft (or Bill of exchange)
An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date. See Date draft, Sight draft, Time draft.
• Drawback
Articles manufactured or produced in the United States with the use of imported components or raw materials and later exported are entitled to a refund of up to 99 percent of the duty charged on the imported components. The refund of duty is known as a drawback.
• Drawee
The individual or firm on whom a draft is drawn and who owes the stated amount. Compare Drawer. Also see Draft.
• Drawer
The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee. Compare Drawee. Also see Draft.
• Dumping
Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment.
• Duty
A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factor such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).