Glossary of international trade terms

GLOSSARY OF INTERNATIONAL TRADE TERMS

ACCEPTANCE: Any agreement to purchase goods under specified terms. An agreement to purchase goods at a stated price and under stated terms.

AD VALOREM: According to value

ADVANCE AGAINST DOCUMENTS: A loan made on the security of the documents covering the shipment.

ADVISING BANK: A bank, operating in the exporter's country, that handles LETTERSOF CREDIT for a foreign bank by notifying the exporter that the credit has been opened in his or her favor.

ADVISORY CAPACITY: A term indicating that shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented.

AIR WAYBILL A BILL OF LADING: that covers both domestic and international flightstransporting goods to a specified destination.

ALONGSIDE: A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded aboard the ship.

ALTERATION: A change in the boundaries of an activated zone or subzone.

ALTERNATIVE INVENTORY CONTROL SYSTEM (AICS): A former system ofinventory control, manual or automated, based on records maintained by a zone grantee, operator or individual zone user.

APPLICANT: A corporation applying for the right to establish operates and maintain a foreign-trade zone.

ARBITRAGE: The process of buying FOREIGN EXCHANGE, stocks, bonds and other commodities in one market and immediately selling them in another market at higher prices.ASIAN DOLLARS: U.S. dollars deposited in Asia and the Pacific Basin.

ATTRIBUTIVE BASIS: Method of accounting for merchandise where direct identification of the goods with the shipment as admitted to the zone has been lost.

AUDIT-INSPECTION PROCEDURES: Provide the framework for Customs to reduce on-site supervision of zones and for zone operators/users to increase zone operating flexibilitythrough the method of supervising zones.

BALANCE OF TRADE: The difference between a country's total imports and exports.

BARTER: Trade in which merchandise is exchanged directly for other merchandise without use of money.

BENEFICIARY: The person in whose favor a LETTER OF CREDIT is issued or a DRAFT is drawn.

BILL OF LADING: A document that establishes the terms of a contract between ashipper and a transportation company under which freight is to be moved between specified points for a specified charge.

BONDED WAREHOUSE: A warehouse authorized by CUSTOMS authorities for storage of goods on which payment of DUTIES is deferred until the goods are removed.

BOOKING: An arrangement with a steamship company for the acceptance and carriage of freight.

CARNET: A customsdocument permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.

CASH AGAINST DOCUMENTS (C.A.D.) Payments for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash.

CASH IN ADVANCED (C.I.A.) Payment for goods in which the price is paid in full before shipmentis made.

CASH WITH ORDER (C.W.O.) Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.

CERTIFICATE OF INSPECTION A document certifying that merchandise was in good condition immediately prior to its shipment.

CERTIFICATE OF MANUFACTURE A statement in which a producer of goods certifies that manufacture has been completed and thatthe goods are now at the disposal of the buyer.

CERTIFICATE OF ORIGIN A document, certifying the country of origin of specified goods.

COST AND FREIGHT (C & F) A pricing term indicating that the cost of the goods and freight charges are included in the quoted price.

CHARTER PARTY Written contract between the owner of a vessel and a "charterer" who rents use of the vessel or a part of...