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Miscellaneous

Import Export Definitions


Absorption

Absorption includes investment and consumption purchases by households, businesses, and governments, both domestic and imported. When absorption exceeds production, the excess is the country’s current account deficit.

Acceptance

This term has several related meanings.

  • A time draft (or bill of exchange) which the drawee (the Payer) has accepted and is unconditionally obligated to pay at maturity. The draft must be presented first for acceptance (the drawee then becomes the “acceptor”), and then for payment. The word “accepted” and the date and place of payment must be written on the face of the draft.
  • The drawee’s act in receiving a draft and thus entering into the obligation to pay its value at maturity.
  • (Broadly speaking) Any agreement to purchase goods under specified terms.

    Accession

    Accession is the process by which a country becomes a member of an international agreement, such as the General Agreement on Tariffs and Trade (GATT) or the European Community (EC). Accession to the GATT involves negotiations to determine the specific obligations a nonmember country must undertake before it will be entitled to full GATT membership benefits.

    Administrative Exception Notes

    CoCom controls exports at three levels, depending on the item and the proposed destination. At the lowest level, “national discretion” (also called “administrative exception”), a member nation may approve the export on its own, but CoCom must be notified after the fact. Administrative exception notes are appended to list categories describing commodities that can be approved solely at national discretion.

    Administrative Notes. See: Administrative Exception Notes.

    Administrative Protective Order

    An Administrative Protective Order (APO), is used to protect proprietary data that is obtained during an administrative proceeding. Within Commerce, APO is most frequently used in connection with Antidumping and Countervailing Duty investigations to prohibit opposing counsel from releasing data. The term is also applied in connection with civil enforcement of export control laws to protect against the disclosure of information provided by companies being investigated for violations.

    Ad Valorem

    Literally: according to value. Any charge, tax, or duty that is applied as a percentage of value. See: Duty

    Advanced Technology Products

    About 500 of some 22,000 commodity classification codes used in reporting U.S. merchandise trade are identified as “advanced technology” codes and they meet the following criteria:

  • The code contains products whose technology is from a recognized high technology field (e.g., biotechnology);
  • These products represent leading edge technology in that field; and
  • Such products constitute a significant part of all items covered in the selected classification code.

    Advisory Capacity

    A term indicating that a shipper’s agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented. Compare: Without Reserve.

    Advisory Committee on Export Policy

    The Advisory Committee on Export Policy (ACEP), is an interagency dispute resolution body that operates at the Assistant Secretary level. ACEP is chaired by Commerce; membership includes the Departments of Defense, Energy, and State, the Arms Control and Disarmament Agency, and the intelligence community. Disputes not resolved by the ACEP must be addressed by the cabinet-level Export Administration Review Board withinspecific timeframes set forth under National Security Directive 53.

    Advisory Committee on Trade Policy and Negotiations

    The ACTPN is a group (membership of 45; two-year terms) appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements. The 1974 Trade Act requires the ACTPN’s establishment and broad representation of key economic sectors affected by trade. Below the ACTPN are seven policy committees: SPAC (Services Policy Advisory Committee), INPAC (Investment), IGPAC (Intergovernmental), IPAC (Industry), APAC (Agriculture), LAC (Labor), and DPAC (Defense). Below the policy committees are sectoral, technical, and functional advisory committees. See: Industry Consultations Program.

    Advisory Notes. See: Administrative Exception Notes.

    Affiliate

    An affiliate is a business enterprise located in one country that is directly or indirectly owned or controlled by a person of another country. Ownership may extend to 10 percent or more of its voting securities for an incorporated business enterprise or an equivalent interest for an unincorporated business enterprise, including a branch. For outward investment, the affiliate is referred to as a “foreign affiliate”; for inward investment, it is referred to as a “U.S. affiliate.”

    Affreightment (Contract of)

    An agreement between a steamship line (or similar carrier) and an importer or exporter in which cargo space is reserved on a vessel for a specified time and at a specified price. The importer/exporter is obligated to make payment whether or not the shipment is made.

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