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Consular Declaration
A formal statement, made to the consul of a foreign country, describing goods to be shipped.
Consular Invoice
A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country’s customs officials to verify the value, quantity, and nature of the shipment.
Consular Officers
These are U.S. embassy officials who extend to U.S. citizens and their property abroad the protection of the U.S. Government. They maintain lists of local attorneys, act as liaison with police and other officials and have the authority to notarize documents.
Container
A uniform, sealed, reusable metal “box” in which merchandise is shipped by vessel, truck, or rail. Standard lengths include 10, 20, 30, and 40 feet (40 foot lengths are generally able to hold about 40,000 pounds). Containers of 45 and 48 feet are also used, as well as containers for shipment by air.
Contracting Parties
Contracting parties are the signatory countries to the GATT. These countries have accepted the specified obligations and privileges of the GATT agreement.
Conventional Arms Transfer
The transfer of non-nuclear weapons, aircraft, equipment, and military services from supplier states to recipient states. U.S. arms are transferred by grants as in the Military Assistance Program (MAP); by private commercial sales; and by government-to-government sales under Foreign Military Sales (FMS). MAP provides defense articles and defense services to eligible foreign governments on a grant basis. FMS provides credits and loan repayment guarantees to enable eligible foreign governments to purchase defense articles and defense services.
Convention on Contracts for the International Sale of Goods
The UN Convention on Contracts for the International Sale of Goods, CISG, became the law of the United States in January 1988. CISG establishes uniform legal rules governing formation of international sales contracts and the right and obligations of the buyer and seller. The CISG applies automatically to all contracts for the sale of all goods between traders from two different countries that have both ratified the CISG, unless the parties to the contract expressly exclude all or part of the CISG or expressly stipulate a law other than the CISG.
Coordinating Committee on Multilateral Export Controls
CoCom is an informal organization that cooperatively restricts strategic exports to controlled countries. CoCom controls three lists: (a) the international industrial list (synonymous with the “dual-use” or “core” list), (b) the international munitions list, and (c) the atomic energy list. The 17 CoCom members are: Australia, Belgium, Canada, Denmark, France, the Federal Republic of Germany, Greece, Italy, Japan, Luxembourg, the Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom, and the United States.
Core List
East-West controls are based largely on CoCom’s core list, which replaced the old industrial list in September 1991. The core list includes items in ten categories: (1) materials, (2) materials processing, (3) electronics, (4) computers, (5) telecommunications and cryptography, (6) sensors, (7) avionics and navigation, (8) marine technology, (9) propulsion systems and transportation equipment, and (10) miscellaneous.
Cost and Freight (C&F)
Under this term, the Seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The Seller must pay the costs and freight necessary to bring the goods to the named port of destination. The Seller must obtain the export license and pay export taxes and fees, and must furnish the Buyer a clean on-board bill of lading. The cost of insurance is left to the Buyer’s account. The risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the Seller to the Buyer when the goods pass the ship’s rail in the port of shipment. (Typically used for ocean shipments only. CPT, or carriage paid to, is a term used for shipment by modes other than water). Also, a method of import valuation that includes insurance and freight charges with the merchandise values.
Cost and Insurance (C & I)
A pricing term indicating that these costs are included in the quoted price.
Cost, Insurance and Freight (CIF)
Under this term, the seller quotes a price for the goods (including insurance), all transportation, and miscellaneous charges to the point of debarkation for the vessel. (Typically used for ocean shipments only. CIP, or carriage and insurance paid to, is a term used for shipment by modes other than water.)
Cost, Insurance, Freight, and (Currency) Exchange
A pricing term indicating that these costs are included in the quoted price.
Cost of Production
A term used to refer to the cost of materials, fabrication and/or other processing employed in producing the merchandise sold in a home market or to a third country together with appropriate allocations of general administrative and selling expenses. COP is based on the producer’s actual experience and does not include any mandatory minimum general expense or profit as in “constructed value.”
Costs of Manufacture
In the context of dumping investigations, the cost of manufacture, COM, is equal to the sum of the materials, labor and both direct and indirect factory overhead expenses required to produce the merchandise under investigation.
Counterpurchase. See: Countertrade
Countertrade
Countertrade is an umbrella term for several sorts of trade in which the seller is required to accept goods or other instruments or trade, in partial or whole payment for its products. Forms include barter, buyback or compensation, counter-purchase, offset requirements, swap, switch, or triangular trade, evidence or clearing accounts. In counterpurchase (one of the most common forms of countertrade), exporters agree to purchase a quantity of goods from a country in exchange for that country’s purchase of the exporter’s product. The goods being sold by each party are typically unrelated but are equivalent in value. In offset, the exporter agrees to use goods and services from the buyer’s country in the product being sold. Offsets may be direct or indirect, depending on whether the goods and services are integral parts of the product. In a direct offset, a U.S. manufacturer selling a product uses a component that is made in the purchasing country. In an indirect offset, the exporter would buy products that are peripheral to the manufacture of its product.
Countervailing Duty
An extra duty imposed by the Secretary of the Treasury to offset export grants, bounties, or subsidies paid to foreign suppliers in certain countries by the governments of those countries as an incentive to exports.
Country of Export Destination
Country of destination for exports is the country where the goods are to be consumed, further processed, or manufactured, as known to the shipper at the time of exportation. If the shipper does not know the country of ultimate destination, the shipment is credited to the last country in which the shipper knows that the merchandise will be shipped in the same form as when exported.
Country Groups
For export control purposes, the Bureau of Export Administration of the U.S. Commerce Department separates countries into seven groups designated by the symbols: Q, 5, T, V. W, Y, Z. See: Export Control Classification Number
Country of Origin
Country of origin is the country where the merchandise was grown, mixed, or manufactured, in accordance with U.S. Customs Regulations. In instances where the country of origin cannot be determined, transactions are credited to the country of shipment. Certain foreign trade reports show country subcodes to indicate special tariff treatment afforded some imported articles.
Credit Risk Insurance
Insurance designed to cover risks of nonpayment for delivered goods. Compare: Marine Insurance.
Critical Circumstances
A determination made by the Assistant Secretary for Import Administration as to whether there is a reasonable basis to believe or suspect that there is a history of dumping in the United States or elsewhere of the merchandise under consideration. Of concern also is whether the importer knew or should have known that the exporter was selling this merchandise at a less than fair value and there have been massive imports of this merchandise over a relatively short period. This determination is made if an allegation of critical circumstances is received from the petitioner. o Current Account. See: Balance of Payments.
Customs
The authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.
Customs Bonded Warehouse(s)
Authorized by Customs for storage or manufacturing of goods on which payment of duties is deferred until the goods are removed into Customs Territory. These goods are not subject to duties if reshipped to foreign ports.
Customs Cooperation Council Nomenclature
A customs tariff nomenclature formerly used by many countries, including most European nations, but not the United States. It has been superseded by the Harmonized System Nomenclature to which most major trading nations, including the U.S., adhere.
Customs Form 214 (CF-214)
The U.S. Customs document used by the foreign trade zones to officially admit merchandise into aFTZ.
Customs Form 7501 (CF-7501)
The U.S. Customs document used by the importer or Customs Broker to officially admit merchandise into United States commerce.
Customs House Broker
An individual or firm licensed to enter and clear goods through Customs.
Customs Import Value
This is the U.S. Customs Service appraisal value of merchandise. Methodologically, the Customs value is similar to FAS value since it is based on the value of the product in the foreign country of origin, and excludes charges incurred in bringing the merchandise to the United States (import duties, ocean freight, insurance, and so forth). It differs in that the U.S. Customs Service, not the importer or the exporter, has the final authority to determine the value of the good.
Customs Union
An agreement between two or more countries to remove trade barriers with each other to establish common tariff and non-tariff policies with respect to imports from countries outside of the agreement. The European Community is the most well known example.
Date Draft
A draft that matures a specified number of days after the date it is issued, without regard to the date of Acceptance (Definition 2). Compare: Sight Draft, Time Draft.
Defense Memoranda of Understanding
Defense MOU’s are defense cooperation agreements. The MOU’s are signed by DOD with allied nations and are related to research, development, or production of defense equipment or reciprocal procurement of defense items.
Defense Technology Security Administration
DTSA is the DOD organization that reviews applications for the export of items that are subject to the dual-use license controls of the Commerce Department. DTSA has about 130 to 140 staff, is located in the Office of the Secretary, and administers the DOD technology security policy so that the U.S. is not technologically surprised on the battlefield. DTSA looks at dual-use, foreign policy, proliferation, and munitions controls and reviews applications to export dual-use commodities and munitions. Items subject to proliferation controls are reviewed by the Deputy for Non-Proliferation Policy, International Security Affairs (ISA), and Defense. ISA does not have the same independence within Defense that ACDA has within State. Thus, while DTSA and ISA may offer different views with their respective Operating Committees, these differences will be resolved before a dispute comes before the ACEP.
Defense Trade Controls, Office of (ODTC)
ODTC (formerly the Office of Munitions Control, OMC) at the Department of State administers licenses for the export of items that are exclusively, or primarily, of munitions significance. These items are listed in the International Traffic in Arms Regulations (ITAR) and the U.S. Munitions List. In circumstances in which an item may be considered dual-use or subject to the ITAR, the State Department has the option to assert the jurisdiction. In some cases, jurisdictions are made after an item has been subject to a dual-use license application sent to the Commerce Department. Commerce is never involved in State’s process, unless there are matters involving dual-use or issues involving jurisdiction.
Defense Trade Working Group
The Defense Trade Working Group (DTWG), consisting of officials from Commerce, Defense, State and USTR, was established in FY 1990 to coordinate agency policies and resources in areas concerned with defense expenditures. The group works with industry to identify ways to target industry needs and increase the success of industry export efforts by minimizing government impediments, streamlining procedures, and improving the availability of market information. The DTWG includes three subgroups: