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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
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.