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Archive for the ‘Miscellaneous’ Category

Miscellaneous

Import Export Definitions

Sunday, November 11th, 2007

Marking

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

Marks of Origin

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

Matchmaker Events

Matchmaker trade delegations are organized and led by the International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to two weeks or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters’ services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year.

Merchandise Trade Balance. See: Balance of Payments.

Military Assistance Program. See: Conventional Arms Transfer.

Missile Technology Control Regime

The purpose of the MTCR is to limit the proliferation of missiles “capable of delivering nuclear weapons,” to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use).

Mixed Credit

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

Most Favored Nation Treatment (MFN)

A commitment that a country will extend to another country the lowest tariff rates it applies to any other country. All contracting parties undertake to apply such treatment to one another under Article I of GATT. When a country agrees to cut tariffs on a particular product imported from any other country eligible for most-favored nation treatment. This principle of non-discriminatory treatment of imports appeared in numerous bilateral trade agreements prior to the establishment of GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement.

Multi-Fiber Arrangement

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

Multilateral Agreement

An international compact in which three or more parties participate.

Multilateral Investment Fund

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

Multilateral Trade Negotiations

A term describing eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade since 1947.

NAFTA – See: North American Free Trade Agreement

NAICS – See: North American Industry Classification System

National Processing Center

The U.S. Census Bureau’s official center for keying various government documents, such as CF-214, CF-7501 and the SEDs.

National Security Controls

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

National Security Council

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

National Security Directives

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

National Security Directive #53

NSD-53 deals with the export licensing process and sets specified time periods for resolving disputes on both national security and foreign policy export license applications. Under NSD-53, exports controlled on both of these grounds are subject to explicit time tables for interagency dispute resolution at the Sub-Cabinet level by the Advisory Committee on Export Policy (ACEP), and at the Cabinet level by the Export Administration Review Board (EARB). The Directive requires escalation to the ACEP not later than 100 days from the filing date of the applicant’s application, and if the disagreement cannot be resolved by the ACEP, for review and resolution by the BARB within 35 days of the date of the ACEP meeting. Cases not resolved by the EARB must be escalated to the President for resolution. The new procedures also permit an agency to refer a case at any stage of the dispute resolution process to the NSC for a 30 day policy review.

National Security Override

In some cases, despite a finding of foreign availability of a controlled commodity, control is maintained over exporting the commodity because it is deemed a national security sensitive item. The term national security override is used to describe this circumstance. The term has also been used in other contexts. For example, under a November 16, 1990 directive, the President tasked the interagency control groups to move as many dual use items from the State Department’s International Munitions List to the Commerce Department’s Control List. In some circumstances, a national security override is applied to prevent transfer of a particular item.

National Trade Data Bank

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

National Trade Estimates Report

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

Net Foreign Investment

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

Newly Industrializing Companies

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

Miscellaneous

Import Export Definitions

Sunday, November 11th, 2007

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 drawer. Compare: Revocable Letter of Credit.

Japan Export Information Center

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

Joint Committee for Investment and Trade

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

Joint Venture

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

Kokusai Denshin Denwa

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

Less Developed Country

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

Lesser Developed Countries

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

Letter of Credit (L/C)

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

  • An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. u A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary.
  • A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults. 0 A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.

    License

    There are licenses, authorized by the Bureau of Export Administration, that permit the export of non-strategic goods to specified countries without the need for a validated license. No prior written authorization is required and no individual license is issued. There are approximately twenty different types of licenses, each represented by a symbol. The reason so many licenses exist is to accommodate the various exporting situations that the Bureau of Export Administration has determined should not require an Individual Validated License.

    Licensing

    A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over a certain technology, trademark, etc.) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment.

    Lighter

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

    Line Release System

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

    Liquidation System

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

    Lome Convention

    A 1975 agreement between the European Community (BC) and 62 African, Caribbean, and Pacific states (mostly former colonies of the BC members). The agreement covers some aid provisions as well as trade and tariff preferences for the ACP countries when shipping to the BC. Lome grew out of the 1958 Treaty of Rome’s “association” with the 18 African colonies! countries that had ties with Belgium and France. The ACP members are: Angola, Bahamas, Barbados, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Cote d’Ivoire, Djibouti, Dominica, Equatorial Guinea, Ethiopia, Fiji, Gabon, Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Jamaica, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritius, Mauritania, Mozambique, Namibia, Niger, Nigeria, Papua New Guinea, Rwanda, Saint Lucia, Saint Vincent, Samoa, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Trinidad and Tobago, Uganda, Zaire, Zambia, and Zimbabwe.

    Manifest. See: Shipper’s Manifest.

    Marine Cargo Insurance

    Broadly, insurance covering the loss or damage of goods at sea. Marine insurance will typically compensate the owner for losses sustained from fire, shipwreck, piracy, and various other causes, but excludes losses which can be legally recovered from the carrier. Compare: Credit Risk Insurance.

    Market Access

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

    Market Disruption

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

    Market Oriented Cooperation Plan

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

    Market Promotion Program

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

  • Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    International Atomic Energy Agency

    The International Atomic Energy Agency is the primary international organization that enforces a system of safeguards to ensure that non-nuclear weapons states do not divert shipments of sensitive equipment from peaceful applications to the production of nuclear weapons. Before a supplier state of nuclear materials or equipment may approve an export to a non-nuclear weapons NPT (Nuclear non-Proliferation Treaty) signatory state, it must receive assurances that the recipient will place the material under IAEA safeguards. Subsequent to shipment the recipient state must allow IAEA officials to verify the legitimate end use of the exported materials or equipment. IABA, established in July 1957, gives advice and technical assistance to developing countries on nuclear power development, nuclear safety, radioactive waste management, and related efforts. Safeguards are the technical means applied by the IAEA to verify that nuclear equipment or materials are used exclusively for peaceful purposes.

    International Atomic Energy List

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

    International Bank for Reconstruction and Development

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

    International Banking Facility

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

    International Commodity Agreement (ICA)

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

    International Communications Satellite Organization (COMSAT)

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

    International Congress Office (ICO)

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

    International Development Association (IDA)

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

    International Development Cooperation Agency

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

    International Finance Corporation

    The IFC was established in 1956 as a member of the World Bank Group. The 1FC promotes capital flow into private investment in developing countries.

    International Freight Forwarder. See: Freight Forwarder.

    International Investment. See: Foreign Direct Investment in the United States.

    International Labor Organization

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

    International Maritime Organization (IMO)

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

    International Maritime Satellite Organization

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

    International Market Research. See: Industry Subsector Analysis

    International Market Insights

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

    International Monetary Fund

    The IMF was established ml 946 to act as the banker of last resort for countries experiencing foreign exchange deficiencies, and to monitor currency exchange relationships among nations.

    International Munitions List

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

    International Standards Organization

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

    International Telecommunications Satellite Organization

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

    International Telecommunications Services

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

    International Trade Administration (ITA)

    The International Trade Administration is a Department of Commerce agency responsible for operating the Export Assistance Centers and offers advice on export opportunities in 18 emerging countries.

    International Trade Commission

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

    International Traffic in Arms Regulations

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

    International Value-Added Network Services

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

    Invisibles

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

    Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    Imports

    Imports of merchandise include commodities of foreign origin as well as goods of domestic origin returned to the United States with no change in condition or after having been processed and/or assembled in other countries. For statistical purposes, imports are classified by type of transaction: — Merchandise entered for immediate consumption. (“duty free” merchandise and merchandise on which duty is paid on arrival); — Merchandise withdrawn for consumption from Customs bonded warehouses, and U.S. Foreign Trade Zones; — Merchandise entered into Customs bonded warehouses and U.S. Foreign Trade Zones from foreign countries.

    Imports for Consumption

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

    In-Bond System

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

    Incoterms

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

    Independent European Program Group

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

    Individual Validated License

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

    Industrial List

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

    Industry Subsector Analysis

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

    In-Flight Survey

    The In-Flight Survey is administered to U.S. and foreign travelers departing the U.S., as a means of providing data on visitor characteristics, travel patterns and spending habits, and for supplying data on the U.S. international travel dollar accounts as well as to meet balance of payments estimation needs. The IPS covers about 70 percent of U.S. carriers and 35 percent of foreign carriers, who voluntarily choose to participate. Sample results are expanded to universe estimates to account for nonresponse of passengers on each sampled flight, for coverage of all flights on each major airline route, and for all international routes. The basis for the expansion is the number of passengers departing the United States, obtained from the Immigration and Naturalization Service.

    Informed Compliance. See: Compliance Strategy.

    Inherent Vice

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

    Initial Negotiating Right ~INR)

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

    Injury

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

    Inland Bill of Lading

    A bill of lading used in transporting goods overland to the exporter’s international carrier. Although a through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipments.

    Inspection Certification

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

    Insurance Certificate

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

    Integrated Carriers

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

    Intellectual Property Rights

    This is the ownership of the right to possess or otherwise use or dispose of products created by human ingenuity.

    INTELSAT. See: International Communications Satellite Organization.

    Interagency Group on Countertrade (IGC)

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

    Inter-American Development Bank

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

    Intermediate Consignee

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

    International Air Transport Association (IATA)

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

    International Anti-counterfeiting Coalition (IACC)

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

    Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    Freight Forwarder

    An independent business that handles export shipments for compensation. The freight forwarder is among the best sources of information and assistance on the U.S. export regulations and documentation, shipping methods, and foreign import regulations.

    Gateway

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

    GATT Panel

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

    General Agreement on Tariffs and Trade (GATT)

    A multilateral treaty whose purpose is to help reduce trade barrier between the signatory countries and to promote trade through tariff concessions.

    General Exception

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

    General Export License

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

    General Imports

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

    Generalized System of Preferences (GSP)

    The Generalized System of Preferences, GSP, is a framework under which developed countries give preferential tariff treatment to manufactured goods imported from certain developing countries. GSP is one element of a coordinated effort by the industrial trading nations to bring developing countries more fully into the international trading system. The U.S. GSP scheme is a system of non-reciprocal tariff preference for the benefit of these countries. The U.S. conducts annual GSP reviews to consider petitions requesting modification of product coverage and/or country eligibility. United States GSP law requires that a beneficiary country’s laws and practices relating to market access, intellectual property rights protection, investment, export practices, and workers rights be considered in all GSP decisions.

    General Tariff

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

    Global Export Manager

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

    Global Quota

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

    Gold Key Service

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

    Government Procurement Policies and Practices

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

    Grandfather Clause

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

    Green Line. See: China Green Line

    Grey List

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

    Gross Domestic Product (GDP)

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

    Gross National Product

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

    Gross Weight

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

    Group of

    Five Similar to the Group of Seven (G-7), with the exception of Canada and Italy. Seven This term refers to seven major economic powers (Canada, France, Germany, Great Britain, Italy, Japan, and the United States) whose finance ministers seek to promote balanced economic growth and stability among exchange rates. Ten Under the International Monetary Fund’s General Agreements to Borrow (GAB), established in 1962, 10 of the wealthiest industrial members of the 1MF “stand ready to lend their currencies to the IMF up to specified amounts when supplementary resources are needed.” The finance ministers of these countries comprise the Group of 10 (also called the Paris Club). Fifteen The G-l5, established in 1990, consists of relatively prosperous or large developing countries. The G-l5 discusses the benefits of mutual cooperation in improving their international economic positions. Members include: Algeria, Argentina, Brazil, Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria, Peru, Senegal, Venezuela, Yugoslavia, and Zimbabwe. Twenty-four A grouping of finance ministers from 24 developing country members of the International Monetary fund. The Group, representing eight countries from each of the African, Asian, and Latin American country groupings in the Group of 77, was formed in 1971 to counterbalance the influence of the Group of 10. Seventy-Seven A grouping of developing countries which had its origins in the early 1 960s. The numerical designation persists, although membership had increased to more than 120 countries. The G-77 functions as a caucus for the developing countries on economic matters in many forums including the United Nations.

    Gulf Cooperation Council (GCC)

    The six member countries (Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, Qatar, and Oman) of the Gulf Cooperation Council (GCC) control half the proven oil reserves outside the Soviet Union, and account for 40 percent of all the oil moving in international trade. The GCC was created in 1981, largely in response to the outbreak of the Iraq-Iran war. In creating the GCC, the members tried to maintain the balance of power in the Gulf by strengthening multilateral cooperation in security and economic matters. In regard to trade, the GCC is only a policy-coordinating forum; the Council cannot impose policies on members. GCC headquarters are in Riyadh, Saudi Arabia. The presidency of the GCC rotates yearly among the rulers of the member countries.

    Harmonized System

    The Harmonized Commodity Descriptions and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council. Beginning on January 1, 1989, the new HS numbers replaced previously adhered-to schedules in over 50 countries, including the United States. For the United States, the HS numbers are the numbers that are entered on the actual export and import documents. Any other commodity code classification number (SIC, SITC, end-use, etc.) are just rearrangements and transformations of the original HS numbers.

    Horizontal Export Trading Company

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

    Import Certificate

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

    Import License

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

    Import Quota

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

    Import Quota Auctioning

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

    Import Restrictions

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

    Import Substitution

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

    Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    Foreign Traders Index

    The foreign traders index is the U.S. and Foreign Commercial Service headquarters compilation of overseas contact file, intended for use by domestic businesses. The FTI includes background information on foreign companies, address, contact person, sales figures, size of company, and products by SIC code.

    Forfaiting

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

    Forwarding Agent

    The forwarding agent is the person in the United States who is authorized by the U.S. principal party in interest or, in the case of a routed transaction, the foreign principal party in interest to prepare and file the SED or its ABS electronic equivalent and/or perform the services required to facilitate the export of items from the United States. In routed export transactions, the forwarding agent and the exporter may be the same for compliance purposes under the EAR, but the forwarding agent is rarely the “exporter” in box 1 a of the SED or the exporter field of the ABS record. The forwarding agent serves a number of purposes, including arranging for transportation of the merchandise, packaging and, in some cases, is given Power of Attorney to fill out the required documentation for a particular shipment.

    Foul Bill of Lading

    A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare: Clean Bill of Lading.

    Framework Agreement

  • Tokyo Round The Tokyo round called for consideration to be given “to improvements in the international framework for the conduct of the world trade.” Four separate agreements make up what is known as the frame work agreement.” They concern: (1) differential and more favorable treatment for, and reciprocity and fuller participation by, developing countries in the international framework for trade; (2) trade measures taken for balance of payments purposes; (3) safeguard actions for development purposes; and (4) an understanding on notification, consultation, dispute settlement, and surveillance in the GATT.
  • Enterprise for the Americas Initiative: Under the umbrella of the Enterprise for the Americas Initiative, the United States and interested Western hemisphere countries are negotiating bilateral framework agreements which establish agreed upon stages for eliminating counter-productive barriers to trade and investment. They also provide a forum for bilateral dispute settlement. Generally, the bilateral framework agreements contain similar objectives. They are based on a statement of agreed principles regarding the benefits of open trade and investment, increased importance of services to economies, the need for adequate intellectual property rights protection, the importance of observing and promoting internationally-recognized worker rights, and the desirability of resolving trade and investment problems expeditiously. The parties establish a Council on Trade and Investment to monitor trade and investment relations, hold consultations on specific trade and investment matters of interest to both sides, and work toward removing impediments to trade and investment flows. Framework agreements do not bind signatories to implement specific trade liberalization measures.

    Free Alongside Ship (F.A.S.) … (Named port of export)

    The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. The seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharfage. The buyer handles the cost of loading, ocean transportation, and insurance; and must bear all costs and risks of loss or damage to the goods from the moment goods are placed alongside the vessel. The buyer also must obtain the export license and pay export taxes and fees, if required.

    Free Carrier (FCA) … (Named point)

    The seller delivers the goods at the named point into the custody of the carrier named by the buyer. The seller will provide export license and pay export taxes and fees, if required, and will provide proof of delivery of the goods to the carrier. The buyer must nominate a carrier, contract for the carriage and pay the freight. The seller fulfills obligation by handing the goods over to the carrier named by the buyer. It replaces: (1) FOB named in land port; (2) FOB vessel for FCL and LCL shipments; (3) FOB airport; and (4) FOR/FOT. Delivery to the custody of an agent or freight forwarder named by the buyer fulfills the seller’s obligation.

    Free In (F.I.)

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

    Free In and Out (F.I.O.)

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

    Free on Board (F.O.B.)(Named port of shipment)

    A pricing term indicating that the quoted price includes the cost of loading the goods into transport vessels at the specified place. The seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. The seller will provide the export license and pay export taxes and fees. They will also provide a clean on-board receipt and pay the loading costs according to the custom of the port to the extent that they are not included in the freight. The buyer has to bear all the costs and risks of loss or damage when the goods pass the ship’s rail.

    FOB Airport

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

    Free of Particular Average (F.P.A)

    The title of a clause used in marine insurance, indicating that partial loss or damage to a foreign shipment is not covered. (Note: Loss resulting from certain conditions, such as the sinking or burning of the ship, may be specifically exempted from certain conditions from the effect of the clause.) Compare W.P.A.

    Free on RaiL1Free on Truck

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

    Free Out (F.O.)

    A pricing term indicating that the charterer of a vessel is responsible for the cost of unloading the goods into transport vessels at the specified place.

    Free Port

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

    Free Trade Agreement (FTA)

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

    Free Trade Area

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

    Freight Carriage-paid to

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

    Freight Carriage … and insurance paid to

    This term is the same as “Freight CarriageiPaid to …” but with the addition that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

  • Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    Food and Agricultural Organization

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

    Food For Progress

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

    Force Majeure

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

    Foreign Affiliate of a Foreign Parent

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

    Foreign Agricultural Service

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

    Foreign Assets Control

    The Treasury Department’s Office of Foreign Assets Control, OFAC, administers sanctions programs involving specific countries and restricts the involvement of U.S. persons in third country strategic exports, i.e., the Denied Parties List.

    Foreign Assistance Act of 1991

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

    Foreign Availability

    The Bureau of Export Administration conducts reviews to determine the foreign availability of selected commodities or technology subject to export control. The reviews use four criteria to determine foreign availability: comparable quality, availability in-fact, foreign source, and adequacy of available quantities that would render continuation of the U.S. control ineffective in meeting its intended purpose. A positive determination of foreign availability means that a nonU.S. origin item of comparable quality may be obtained by one more proscribed countries in quantities sufficient to satisfy their needs so that U.S. exports of such item would not make a significant contribution to the military potential of such countries. A positive determination may result in the decontrol of a U.S. product that has been under export control, or the approval of an export license. However, the control may be maintained if the President invokes the national security override provision of the Act. Beginning with the 1977 amendments to the Export Administration Act, the Congress directed that products with foreign availability be identified and decontrolled unless essential to national security. In January 1983, a program to assess the foreign availability of specific products was established within the Office of Export Administration, now the Bureau of Export Administration, or BXA. Further, 1985 amendments to the Act directed that an Office of Foreign Availability be created.

    Foreign Buyer Program

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

    Foreign Corrupt Practices Act

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

    Foreign Credit Insurance Association

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

    Foreign Direct Investment in the United States

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

    Foreign Economic Trends

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

    Foreign Exchange

    The currency or credit instruments of a foreign country. Also, transactions involving purchase and/or sale of currencies.

    Foreign Exports

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

    Foreign Flag

    A reference to a carrier not registered in the United States that flies the American flag. The term applies to air and sea transportation. See: Foreign Freight Forwarder; Freight Forwarder.

    Foreign Independent Tour

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

    Foreign Investment. See: Committee on Foreign Investment in the United States;

    Net Foreign Investment

    Foreign Market Research. See: Industry Subsector Analysis

    Foreign Market Value

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

    Foreign Military Sales. See: Conventional Arms Transfer

    Foreign Parent

    The first foreign person or entity outside of the United States in an affiliate’s ownership chain that has direct investment in the affiliate. The foreign parent consists ~j.y of the first person or entity outside the United States in the affiliate’s ownership chain; all other affiliated foreign persons are excluded.

    Foreign Parent Group

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

    Foreign Person

    A foreign person is any person resident outside the United States or subject to the jurisdiction of a country other than the United States. “Person” is any individual, branch, partnership, association, associated group, estate, trust, corporation, or other organization (whether or not organized under the laws of any State), and any government (including a foreign government, the U.S. Government, a State or local government, and any agency, corporation, financial institution, or other entity or instrumentality thereof, including a government sponsored agency.)

    Foreign Policy Controls

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

    Foreign-Owned Affiliate in the U.S.

    A business in the United States in which there is sufficient foreign investment to be classified as direct foreign investment. To determine fully the foreign owners of a U.S. affiliate, three entities must be identified: the foreign parent, the ultimate beneficial owner, and the foreign parent group. All these entities are “persons” in the broad sense: thus, they may be individuals; business enterprises; governments; religious, charitable, and other nonprofit organizations; estates and trusts; and associated groups. An U.S. affiliate may have an ultimate beneficial owner (UBO) that is not the immediate foreign parent; moreover, the affiliate may have several ownership chains above it, if it is owned at least 10 percent by more than one foreign person. In such cases, the affiliate may have more than one foreign parent, UBO, and/or foreign parent group.

    Foreign Sales Agent

    An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.

    Foreign Sales Corporation

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

    Foreign Service

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

    Foreign Service Institute (FSI)

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

    Foreign Trade Statistics Regulations (FTSR)

    Legal definitions and requirements for SEDs and the AES, including information relating to the who, what, where, and when of the exportation.

    Foreign Trade Zones (FTZ)

    FTZs (or free zones, free ports, or bonded warehouses) are special commercial and industrial areas in or near ports of entry where foreign and domestic merchandise, including raw materials, components, and finished goods, may be brought in without being subject to payment of customs duties. Merchandise brought into these zones may be stored, sold, exhibited, repacked, assembled, sorted, graded, cleaned, or otherwise manipulated prior to reexport or entry into the national customs territory. FTZs are restricted-access sites in or near ports of entry, which are licensed by the Foreign-Trade Zones Board and operated under the supervision of the Customs Service. Zones are operated under public utility principles to create and maintain employment by encouraging operations in the U.S. that might otherwise have been carried on abroad. Quota restrictions do not normally apply to foreign goods stored in zones, but the Board can limit or deny zone use in specific cases on public interest grounds. Domestic goods moved into a zone for export may be considered exported upon entering the zone for purposes of excise tax rebates and drawback. “Subzones” are a special-purpose type of ancillary zone authorized by the Board, through grantees of public zone when it can be demonstrated that the activity will result in significant public benefit and is in the public interest. Goods in a zone for a bona fide Customs reason are exempt from state and local ad valorem tax. See: Free Trade Agreement; Free Trade Area

    Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    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 Merchant

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

    Export Processing Zone

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

    Export Quantity Verifications (EQV)

    The physical verification of all cargo laden onboard a vessel.

    Export Quotas

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

    Export Restraint Agreements. See: Voluntary Restraint Agreements

    Export Revolving Line of Credit

    The Export revolving Line of Credit, ERLC, is a form of financial assistance provided by the Small Business Administration (SBA). The ERLC guarantees loans to U.S. firms to help bridge the working capital gap between the time inventory and production costs are disbursed until payment is received from a foreign buyer. SBA guarantees 85 percent of the BRLC subject to a $750,000 guarantee limit. The ERLC is granted on the likelihood of a company satisfactorily completing its export transaction. The guarantee covers default by the exporter, but does not cover default by a foreign buyer; failure on the buyer’s side is expected to be covered by letters of credit or export credit insurance. Under SBA’s ERLC program, any number of withdrawals and repayments can be made as long as the dollar limit on the line of credit is not exceeded and disbursements are made within the stated maturity period (not more than 18 months). Proceeds can be used only to finance labor and materials needed for manufacturing, to purchase inventory to meet an export order, and to penetrate or develop foreign markets. Examples of eligible expenses for developing foreign markets include professional export marketing advice or services, foreign business travel, and trade show participation. Under the BRLC program, funds may not be used to purchase fixed assets.

    Export Statistics

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

    Export Subsidies

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

    Export Trade Certificate of Review

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

    Export Trading Company

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

    Export Trading Company Act

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

    Export Transaction. See: Routed Export Transaction.

    The U.S. party in interest takes on most or all of the export documentation responsibilities, including retaining a forwarding or other agent to act on their behalf

  • U.S. Principal Party Responsibilities for Export Transaction > Submit export information or authorize a Forwarding Agent to file export data with a power of attorney, written authorization, or signature on the SBD > Provide information to the Forwarding Agent for reporting complete data > Maintain documentation to substantiate the shipment.
  • Forwarding Agent Responsibilities for Export Transaction ~’ Report accurate and complete export information > Obtain appropriate authorization from the principal party in interest > Provide the U.S. principal party in interest with a copy of the export information filed in the form of a completed SED, electronic facsimile, or in a manner prescribed by the U.S. principal party in interest > Maintain documentation to support the export information reported

    Exporter

    For purposes of completing the SED or AES, the exporter is the U.S. principal party in interest that receives the primary benefit, monetary or otherwise of the transaction. Generally that person is the U.S. seller, manufacturer, order party, or foreign entity, if in the U.S. when signing the SED. See: Principal Parties in Interest

    Exporters Sales Price

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

    ExQuay

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

    ExShip

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

    Ex Works (Named place)

    The seller makes the goods available at seller’s premises to the buyer, and is not responsible for loading the goods on the vehicle provided by the buyer. The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination.

    Factoring

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

    Factoring Houses

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

    Fair Value

    The reference against which U.S. purchase prices of imported merchandise is compared during an antidumping investigation. Generally expressed as the weighted average of the exporter’s domestic market prices or prices of exports to third world countries during the period of investigation. In some cases fair value is the constructed value. Constructed value is used if there are no, or virtually no, home market or third country sales or if the number of such sales made at prices below the cost of production is so great that remaining sales above the cost of production provide and inadequate basis for comparison.

    Fast Track

    Fast track procedures for approval of trade agreements were included by Congress in trade legislation in 1974, in 1979, and again in the 1988 Trade Act. Fast track provides two guarantees essential to the successful negotiation of trade agreements: (1) a vote implementing legislation within a fixed period of time, and (2) a vote, up or down, with no amendments to that legislation. Provisions in the Omnibus Trade and Competitiveness Act of 1988 include requirements that the foreign country request negotiations of an FTA and that the President give the Congress a 60- legislative-day notice of intent to negotiate an FTA. During the 60-day-legislative period, either committee can disapprove fast track authority by a majority vote. Disapproval would likely end the possibility of FTA negotiations. The 60-legislative-days can translate into five to ten months of calendar time, depending on the Congressional schedule. Formal negotiations would begin following this 60-day Congressional consideration period.

    Final Determination

    The International Trade Administration makes a final determination after the investigation of sales at “less than fair value” and the receipt of comments from interested parties. This determination usually is made within 75 days after the date a preliminary determination is made. However, if the preliminary determination was affirmative, the exporters who account for a significant proportion of the merchandise under consideration may request, in writing, a postponement of this determination. If the preliminary determination was negative, the petitioner may likewise request a postponement. In neither case can this postponement be more than 135 days after the date of the preliminary determination. If the final determination is affirmative and follows a negative preliminary determination, the matter is referred to the International Trade Commission for a determination of the injury caused or threatened by the sales at less than fair value. (Had the preliminary determination been affirmative, the ITC would have begun its investigation at that time.) Not later than 45 days after the date the International Trade Administration makes an affirmative final determination, in a case where the preliminary determination also was affirmative, the International Trade Commission must render its decision on injury. Where the preliminary determination was negative, the ITC must render a decision not later than 75 days after the affirmative final determination. A negative final determination by the Assistant Secretary for Import Administration terminates an antidumping investigation.

    Fines, Penalties, and Forfeitures System

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

    Five-K Countries – 5(k) Countries

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

  • Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    Entry Summary Selectivity System

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

    Escape Clause

    The escape clause, which can be invoked under GATT Article XIX, allows countries to temporarily violate their GATT obligations to the degree and time necessary to protect a domestic industry from serious injury. Countries taking such actions, however, must consult with affected contracting parties to determine appropriate compensation for the violation of GATT rights, or be subject to retaliatory trade actions. Section 201 of the Trade Act of 1974 requires the U.S. International Trade Commission to investigate complaints filed by domestic industries or workers claiming that they are injured by rapidly rising imports. Section 203 of the Act provides that if the ensuing investigation establishes that the complaint is valid, relief may be granted in the form of adjustment assistance, which may be training, technical, and financial assistance, or temporary import restrictions in the form of tariffs, quotas, and/or marketing agreements. Import restrictions imposed under the escape clause authority are limited in duration. They may last no longer than five years but can be extended by the President for a three-year period.

    Eurodollars

    U.S. dollars placed on deposit in banks outside the United States (primarily in Europe).

    European Bank for Reconstruction and Development

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

    European Commission

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

    European Community

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

    European Free Trade Association

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

    Ex – “From.”

    When used in pricing terms such as “Ex Factory” or “Ex Dock,” it signifies that the price quoted applies only at the point of origin (in the two examples, at the seller’s factory or a dock at the import point). In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.

    Exchange Rate

    The price of one currency expressed in terms of another, i.e., the number of units of one currency that may be exchanged for one unit of another currency. Influences on exchange rates include differences between interest rates and other asset yields between countries; investor expectations about future changes in a currency’s value; investors’ views on the on the overall quantity of dollar-denominated assets in circulation; arbitrage; and central bank exchange rate support.

    Export

    To send or transport goods out of a country for sale in another country. In international sales, the exporter is usually the seller or the seller’s agent. Compare: Import.

    Export Administration Act

    The BAA of 1979, as amended, authorizes the President to control exports of U.S. goods and technology to all foreign destinations, as necessary for the purpose of national security, foreign policy, and short supply. As the basic export administration statute, the EAA is the first big revision of export control law since enactment of the Export Control Act of 1949. The EAA is not a permanent legislation; it must be reauthorized-usually every three years. There have been reauthorizations of the BAA in 1982, 1985 (the Export Administration Amendments Act), and 1988 (Omnibus Amendments of 1988) which have changed provisions of the basic Act. The Export Administration Act of 1990 was pocket vetoed by the President, charging that provisions involved micro management.

    Export Administration Amendments Act. See: Export Administration Act

    Export Administration Regulations

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

    Export Administration Review Board

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

    Export Assistance Center

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

    Export Broker

    An individual or firm that brings together buyers and sellers for a fee, but does not take part in actual sales transactions.

    Export Commodity Classification Number. See: Export Control Classification Number

    Export Contact List Service

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

    Export Control Automated Support System

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

  • electronic submission of application forms directly by exporters;
  • optical character recognition of applications submitted on paper;
  • paperless workstations for all licensing officers to review the application, route it to other officers, branches, or external agencies, and to enter their final action along with riders and conditions;
  • automated audit of all licenses issued; and
  • real time management reporting on Licensing Officer workloads, average- processing times, counts and times by license type, destination country, commodity code, and other data.

    Export Control Classification Number

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

    Export Credit Enhanced Leverage

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

    Export Declaration

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

    Export Development Corporation

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

    Export Development Office

    Export Development Office (EDO5) in seven cities (Tokyo, Sydney, Seoul, Milan, London, Mexico City, and Sao Paulo) provide services to U.S. exporters, including market research to identify specific marketing opportunities and products with the greatest sales potential; and to organize export promotion events. EDOs are staffed by U.S. and Foreign Commercial Service officers. When not in use for trade exhibitions, EDOs with exhibit and conference facilities are made available to individual firms or associations.

    Export Information Codes

    These codes are used by AES to distinguish between shipments requiring complete information from those requiring either limited or no information. Also, AES will allow exporters the option of reporting shipments for which an SED is not required. For a list of Export Information Codes with detailed information relating to these requirements, call the Foreign Trade Division, Customs Systems Requirements Branch, (301) 457-2207.

    Export-Import Bank of the United States

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

    Export Legal Assistance Network

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

    Export License

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

    Export License Voice Information System

    ELVIS is a BXA 24-hour on-line service which allows exporters to obtain recorded information on such topics as commodity classifications, emergency handling procedures, and seminars as well as to order information (202) 482-4811.

  • Miscellaneous

    Import Export Definitions

    Sunday, November 11th, 2007

    Delivered at Frontier (Named place)

    A term used primarily for movement of shipments between contiguous countries. The Seller is to deliver the goods, cleared for export, assuming all risks and costs up to the named place at the frontier. The Buyer assumes all costs and risks at the named place at the frontier including import clearance.

    Delivered Duty Paid (Named place of destination)

    In this situation, the Seller is to deliver the goods assuming all costs and risks to the named place of destination (including duties and import clearance). The Buyer is to take delivery of the goods at the named place of destination upon clearance of the goods.

    Delivered Duty Unpaid (Named place of destination)

    The Seller is to deliver the goods assuming all costs and risks to the named place of destination (excluding duty and import clearance). The Buyer is to take delivery of the goods at the named place of destination and to assume all risks and costs (including import clearance and duties).

    Delivered Ex Quay, Duty Paid (Named port of destination)

    The Seller is to deliver the goods, cleared for import, assuming all costs and risks on the quay at the named port of destination including offloading and import clearance, duty paid. The Buyer is to take delivery of the goods and assume all costs and risks upon clearance of the goods.

    Delivered Ex Ship (Named port of destination)

    The Seller is to deliver the goods, uncleared for import, on board the vessel assuming all costs and risks up to the named port of destination. The Buyer is to take delivery of the goods at the named port of destination and arrange for offloading, import clearance and delivery to destination.

    Delivery Instructions

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

    Demurrage

    Penalty for excess time taken for loading or unloading a vessel. Demurrage refers only to situations in which the charter or shipper, rather than the vessel’s operator, is a fault.

    Deposit of Estimated Duties

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

    Direct Investment

    Direct Investment is defined in the international Monetary Fund’s Balance of Payments Manual as “investment that is made to acquire a long lasting interest in an enterprise operating in an economy other than that of the investor, the investor’s purpose being to have an effective voice in the management of the enterprise.” In the United States, direct investment is defined for statistical purposes as the ownership or control, directly or indirectly, by one person of 10 percent or more of the voting securities of an incorporated business enterprise, or an equivalent interest in an unincorporated business enterprise. Direct investment transactions are not limited to transactions in voting securities. The percentage ownership of voting securities is used to determine if direct investment exists, but once it is determined that it does, all parent-affiliate transactions, including those not involving voting securities, are recorded under direct investment. See: Foreign Direct Investment in the United States

    Destination Control Statement

    Any of various statements which the U.S. Government requires to be displayed on export shipments (controlled), and which specify the destinations for which export of the shipment has been authorized.

    Devaluation

    The official lowering of the value of one country’s currency in terms of one or more foreign currencies. Thus, if the U.S. dollar is devalued in relation to the French franc, one dollar will “buy” lower francs than before.

    Disclosure Meeting

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

    Dismissal of Petition

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

    Dispatch

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

    Distribution license

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

    Distributor

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

    District Export Councils (DEC)

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

    Diversionary Dumping

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

    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.

    Documents Against Acceptance (DIA)

    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.

    Documents Against Payment (D/P)

    Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer’s payment of the attached draft.

    Domestic Exports

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

    Domestic International Sales Corporation

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

    Domicile

    The place where a draft acceptance is made payable.

    Downstream Dumping

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

    Draft (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 payee at a fixed or determinable future date.

    Drawback

    A refund of duties paid on imported goods which is provided at the time of their reexportation.

    Drawback System

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

    Drawee

    The individual or firm on whom a draft is drawn and who owes the indicated 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 indicated amount from the drawee. Compare: Drawee. Also see: Draft.

    Dual Pricing

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

    Dumping

    Importing merchandise into a country (e.g., the United States) at low prices that are detrimental to local producers of the same kind of merchandise.

    Dumping Margin

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

    The Eastern Europe Business Information Center

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

    Economic Bulletin Board

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

    Economic Officers

    Embassy officials who analyze and report on macroeconomic trends and trade policies and their implications for U.S. policies and programs. Economic officers represent U.S. interests and arrange and participate in economic and commercial negotiations. See: Commercial Officers; Foreign Service

    Economic Policy Council

    The EPC was established by Executive Order in 1985 to address major trade policy issues in a single forum as a means of reducing tensions between different groups, such as the Trade Policy Committee and the Senior Interagency Group. The Council was modified in the Omnibus Trade and Competitiveness Act of 1988. Membership includes the Treasury, (chair pro tem), State, Agriculture, Commerce, Labor, Transportation, the 0MB, the U.S. Trade Representative, the Council of Economic Advisers, and the Assistant to the President for Science and Technology.

    Electronic Data Interchange for Administration, Commerce, and Transportation

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

    Electronic License Application and Information Network

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

    EMC See: Export Management Company.

    Enabling Clause

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

    End-Use Codes

    The HTSA and Schedule B classifications are summarized into six principal “end-use” categories and further subdivided into about 140 broad commodity groupings. The concept of end-use demand was developed for balance of payments purposes by the Bureau of Economic Analysis.

    End-user

    The person abroad that receives and ultimately uses the exported or reexported items. The end- user is not a forwarding agent or intermediary, but may be the purchaser or ultimate consignee.

    Enforced Compliance. See: Compliance Strategy.

    Enhanced Proliferation Control Initiative

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

    Enterprise for the Americas Initiative

    The EAT, which was launched in June 1990, is intended to develop a new economic relationship of the U.S. with Latin America. The EAT has trade investment, debt, and environment aspects. With regard to trade, the EM involves an effort to move towards free trade agreements with markets in Latin America and the Caribbean, particularly with groups of countries that have associated for purposes of trade liberalization. To begin the process of creating a hemispheric free trade system, the U.S. seeks to enter into “framework” agreements on trade and investment with interested countries or groups of countries. These agreements set up intergovernmental councils to discuss and, where appropriate, to negotiate the removal of trade and investment barriers.

    Entrepot

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

    Entry Summary System

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