A
Abandonment
The act of relinquishing claim or right to property
About
About, Approx., and Circa are terms which when used in a letter of credit,
are construed to allow a difference not to exceed 10% more or 10% less
than the monetary amount, or the quantity, or the unit price stipulated in the
letter of credit.
are construed to allow a difference not to exceed 10% more or 10% less
than the monetary amount, or the quantity, or the unit price stipulated in the
letter of credit.
Absolute Advantage
An advantage of one nation or area over another in the costs of producing
an item in terms of used resources.
an item in terms of used resources.
Absorption
1. An economic term for the total expenditures by a nation's residents on
goods and services.
2. The assumption by one carrier of the charges of another without any
increase in the charges to the shipper.
goods and services.
2. The assumption by one carrier of the charges of another without any
increase in the charges to the shipper.
Accelerated Tariff Elimination
The reduction of import duties faster than originally had been agreed
upon or projected.
upon or projected.
Acceptance
1. A draft calling for payment at a future date which the drawee has agreed
to pay by signing Accepted on the draft.
to pay by signing Accepted on the draft.
2. An unconditional assent to an offer; or an assent to an offer conditioned
on only minor changes that do not affect any material terms of the offer;
on only minor changes that do not affect any material terms of the offer;
3. An agreement to purchase goods on specified terms.
4. Receipt of a shipment by a consignee thus terminating the liability of
the carrier for delivery.
the carrier for delivery.
Acceptance Letter Of Credit
A letter of credit which instead of agreeing to pay the beneficiary
immediately upon presentation of documents, requires presentation of a
time draft drawn by the beneficiary upon the issuing bank or another bank.
However, the beneficiary may, in effect, obtain prompt payment by
discounting the draft.
immediately upon presentation of documents, requires presentation of a
time draft drawn by the beneficiary upon the issuing bank or another bank.
However, the beneficiary may, in effect, obtain prompt payment by
discounting the draft.
Accepted Draft
A draft or a bill of exchange accepted by the drawee (acceptor) by putting
his signature and accepted' on its face. In doing so, he commits himself
to pay the bill upon presentation at maturity.
his signature and accepted' on its face. In doing so, he commits himself
to pay the bill upon presentation at maturity.
Accepting Bank
A bank which by signing 'accepted' on a time draft accepts responsibility
to pay when the draft becomes due.
to pay when the draft becomes due.
Acceptor
The party that signs 'accepted' on a draft or obligation, agreeing to pay the
stated sum at maturity.
stated sum at maturity.
Accession
Accession is a process by which a country becomes a member of an
international agreement (usually an agreement that has already been
accepted by other countries).
international agreement (usually an agreement that has already been
accepted by other countries).
Accessorial Charges
In transportation, those charges made for additional, supplemental, or
special services performed in addition to the basic transportation service.
special services performed in addition to the basic transportation service.
Accessorial Services
`In transportation, services performed which are additional, supplemental,
or special, in addition to the basic transportation service.
or special, in addition to the basic transportation service.
Accommodation
An arrangement or engagement made as a favor to another, not
dependent upon a consideration received.
dependent upon a consideration received.
Accommodation Note Or Paper
A bill of exchange or banker's acceptance which is endorsed, accepted, or
drawn by one party (the accommodating party) to benefit another party.
The accommodating party generally does not charge or seek
compensation for this act.
drawn by one party (the accommodating party) to benefit another party.
The accommodating party generally does not charge or seek
compensation for this act.
Accord And Satisfaction
A means of discharging a claim whereby the parties agree to give and
accept something in settlement and perform the agreement, the
agreement being the accord and its performance the satisfaction.
accept something in settlement and perform the agreement, the
agreement being the accord and its performance the satisfaction.
Account Number
An identification number assigned in its records for purposes of faster
and more accurate accounting and record keeping, by banks, institutions,
and businesses of all kind to their depositors, users, members,
subscribers, customers, vendors, or other entities.
and more accurate accounting and record keeping, by banks, institutions,
and businesses of all kind to their depositors, users, members,
subscribers, customers, vendors, or other entities.
Account Party
Same as Applicant, the party at whose request a bank issues a letter of
credit.
credit.
Accounts Payable
A current liability representing the amounts owed to creditors for
merchandise or services purchased on open account or short-term credit.
merchandise or services purchased on open account or short-term credit.
Accounts Receivable
The amount of money a business expects to receive for merchandise or
services furnished by it to others on open account.
services furnished by it to others on open account.
Accrual Of Obligation
The maturing of an obligation to the date when the obligated party must
perform. (Such as a time draft which must be paid by the drawee on the
date stated.)
perform. (Such as a time draft which must be paid by the drawee on the
date stated.)
Acquisition
The act of becoming owner of a property. In finance, it is the purchase of a
company's assets or its common stock.
company's assets or its common stock.
Act Of God
A violent act of nature such as lightning, flood, earthquake or hurricane
which man can neither cause nor intervene with.
which man can neither cause nor intervene with.
Action Ex Contractu
1. A legal action for breach of a promise stated in an express or implied
contract.
2. An action arising out of a contract.
contract.
2. An action arising out of a contract.
Action Ex Delicto
1. A legal action for a breach of a duty that is not stated in a contract but
arises from the contract.
2. A legal action that arises from a wrongful act, such as fraud, fault,
misconduct or malfeasance.
arises from the contract.
2. A legal action that arises from a wrongful act, such as fraud, fault,
misconduct or malfeasance.
Ad Valorem Duty
Duty calculated on the basis of value (usually a percentage of the value.)
Address Of Record
The official or primary location for an individual, company, or other
organization.
organization.
Adhesion Contract
A contract with standard, often printed, terms for sale of goods and
services, offered to consumers who usually cannot negotiate any changes
in the terms and cannot acquire the product unless they agree to them.
services, offered to consumers who usually cannot negotiate any changes
in the terms and cannot acquire the product unless they agree to them.
Adjustment Assistance
Financial, training and re-employment technical assistance to workers,
and technical assistance to firms and industries, to help them cope with
adjustment difficulties arising from increased import competition.
and technical assistance to firms and industries, to help them cope with
adjustment difficulties arising from increased import competition.
Admiralty
Any civil or criminal matter having to do with maritime legal issues.
Admiralty Court
A court of law that has jurisdiction over maritime legal issues.
Advance Against Collection
A short term loan or credit extended to a seller (usually the exporter) by the
seller's bank once a draft has been accepted by the buyer (generally the
importer).
seller's bank once a draft has been accepted by the buyer (generally the
importer).
Advance Arrangements
In transportation, advance arrangements must be made for certain kinds
of cargo which require special handling: hazardous cargo, over weight,
over sized, over normal quantity, time sensitive, shipped unpacked, live
animals etc. Not every carrier can or will transport every kind of cargo.
of cargo which require special handling: hazardous cargo, over weight,
over sized, over normal quantity, time sensitive, shipped unpacked, live
animals etc. Not every carrier can or will transport every kind of cargo.
Advanced Technology Products
(ATP)
(ATP)
Products whose technology is from a recognized high technology field,
represent leading edge technology in that field, and constitute a
significant part of all items covered in the selected classification code.
represent leading edge technology in that field, and constitute a
significant part of all items covered in the selected classification code.
Advice
1. A report from one party to another informing them of an occurrence with
regard to some business transaction: a shipment, a collection, a
manufacture etc .
2. A notification by an advising bank on behalf of the issuing bank to a
beneficiary informing them of the terms of a letter of credit,
regard to some business transaction: a shipment, a collection, a
manufacture etc .
2. A notification by an advising bank on behalf of the issuing bank to a
beneficiary informing them of the terms of a letter of credit,
Advised Credit
A letter of credit whose terms and conditions have been notified to the
beneficiary by an advising bank on behalf of the issuing bank. The
advising bank does not thereby commit itself to pay or guarantee the
payment of the letter of credit.
beneficiary by an advising bank on behalf of the issuing bank. The
advising bank does not thereby commit itself to pay or guarantee the
payment of the letter of credit.
Advising Bank
An 'advising bank' is a correspondent of a bank which issues a letter of
credit, and, on behalf of the issuing bank, the advising bank notifies the
beneficiary of the terms of the credit, without engagement on its part to pay
or guarantee the credit.
credit, and, on behalf of the issuing bank, the advising bank notifies the
beneficiary of the terms of the credit, without engagement on its part to pay
or guarantee the credit.
Advisory Committee On Export
Policy
Policy
A U.S. government interagency dispute resolution body that operates at
the Assistant Secretary level.
the Assistant Secretary level.
Advisory Committee On Trade
Policy And Negotiation
Policy And Negotiation
A U.S. government group appointed by the President to provide advice on
matters of trade policy and related issues, including trade agreements.
matters of trade policy and related issues, including trade agreements.
Affiliate
A condition of being united, allied, associated, or attached. An affiliate
company is one effectively controlled by another.
company is one effectively controlled by another.
Affreightment Contract
A contract with a ship owner to hire all or part of a ship for transporting
goods - may involve a charter.
goods - may involve a charter.
Afloat
Refers to a shipment of cargo which is currently on board a vessel
between ports
between ports
Aft
At or towards the stern of the ship or the tail of the aircraft.
After Date
A notation used on financial instruments (such as drafts or bills of
exchange) to fix the maturity date as a fixed number of days past the date
of drawing of the draft.
exchange) to fix the maturity date as a fixed number of days past the date
of drawing of the draft.
After Sight
A notation on a draft that indicates that payment is due a stated number of
days after the draft has been presented to the drawee.
days after the draft has been presented to the drawee.
Agent
A person or legal entity authorized to act on behalf of another.
Agent Bank
1. A bank acting on behalf of another bank.
2. A bank acting for lenders and bondholders, similar to an indenture
trustee.
2. A bank acting for lenders and bondholders, similar to an indenture
trustee.
Aggregated Shipments
Several shipments intended for one consignee from various shippers that
are consolidated and treated as a single consignment.
are consolidated and treated as a single consignment.
Agreed Valuation
The value of a shipment that is agreed upon by both the shipper and the
carrier to define the freight rate and/or the liability of the carrier.
carrier to define the freight rate and/or the liability of the carrier.
Air Cargo
Property of any kind that is transported by aircraft (excluding passenger
baggage and mail).
baggage and mail).
Air Express
Expedited air freight service.
Air Parcel Post
Parcels shipped through the mails to be transported by air.
Airwaybill
The shipping document used for the transportation of air freight: includes
conditions, limitations of liability, shipping instructions, description of
commodity, and applicable transportation charges. It is generally similar
to a straight non-negotiable bill of lading and is used for similar purposes.
conditions, limitations of liability, shipping instructions, description of
commodity, and applicable transportation charges. It is generally similar
to a straight non-negotiable bill of lading and is used for similar purposes.
Alienable
Ability to be transferred or conveyed.
All-Cargo Aircraft
Any aircraft that is used for the sole purpose of transporting cargo or mail.
Allowance
A deduction or discount from the price permitted by a seller.
Alternative Tariff
In transportation, a tariff with two or more rates for the same goods, to and
from the same points, with the opportunity available to the shipper to use
the lowest of the charges.
from the same points, with the opportunity available to the shipper to use
the lowest of the charges.
Amendment
An addition, deletion, or modification of a document.
Amidships
The area of a vessel midway between the front (the bow) and the rear (the
stern). When the term applies to an airplane, it is midway between the
nose and the tail.
stern). When the term applies to an airplane, it is midway between the
nose and the tail.
Amortization
1. The provision to pay a debt over a period of time.
2. The gradual repayment of borrowings in a series of installments.
3. A transaction or security where the principal reduces over the life of the
agreement.
4. The writing off or reduction in value of an intangible asset over time
(c.f.depreciation)
5. Allocation of the cost of an asset over its estimated useful life.
2. The gradual repayment of borrowings in a series of installments.
3. A transaction or security where the principal reduces over the life of the
agreement.
4. The writing off or reduction in value of an intangible asset over time
(c.f.depreciation)
5. Allocation of the cost of an asset over its estimated useful life.
Antidumping Duties
Additional duties which are assessed on imported goods when those
goods are sold to the importing country at a price that is less than fair
value, (fair value usually being defined as the price on the exporting
country's domestic market or to third countries), and when those imported
goods are found to cause or to threaten material injury to industry of the
importing country.
goods are sold to the importing country at a price that is less than fair
value, (fair value usually being defined as the price on the exporting
country's domestic market or to third countries), and when those imported
goods are found to cause or to threaten material injury to industry of the
importing country.
Any Quantity
A cargo freight rate that applies to an article without regard to the weight or
quantity shipped.
quantity shipped.
Applicant (also Account Party)
1. The party at whose request a bank issues a letter of credit.
2. A person who applies for something: a job, a passport, a visa, a license,
a ticket etc. etc.
2. A person who applies for something: a job, a passport, a visa, a license,
a ticket etc. etc.
Appreciation
An increase in the value of something, - of goods, of currency, of shares of
stock, etc,.
stock, etc,.
Approx. (Approximately)
Same as about and circa; terms which when used in a letter of credit are
construed to allow a difference not to exceed 10% more or 10% less than
the monetary amount, or the quantity, or the unit price.
construed to allow a difference not to exceed 10% more or 10% less than
the monetary amount, or the quantity, or the unit price.
Appurtenance
An accessory, adjunct, or appendage connected to a primary property and
used in conjunction therewith.
used in conjunction therewith.
Apron
1. Area of the airport where planes are parked. May be used for loading
and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used for
loading and unloading of vessels.
and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used for
loading and unloading of vessels.
Arbitrage
A method of taking advantage of the fact that there may be different prices
in different markets for identical goods such as gold, foreign exchange or
commodities. Simultaneously, one buys in the lower price market and
sells in the higher one.
in different markets for identical goods such as gold, foreign exchange or
commodities. Simultaneously, one buys in the lower price market and
sells in the higher one.
As Is
Indicates goods for sale do not include a warranty , implied or expressed;
the buyer takes the entire risk as to the quality or condition of the goods
involved and must trust to his own inspection. In sum, the sale is without
recourse.
the buyer takes the entire risk as to the quality or condition of the goods
involved and must trust to his own inspection. In sum, the sale is without
recourse.
Assembly Service
A service under which a carrier or a forwarder or a warehouse combines
multiple shipments from multiple shippers into one shipment for one
receiver.
multiple shipments from multiple shippers into one shipment for one
receiver.
Assessment
1. The valuation, or determination as to value, of property.
2. The act of apportioning amounts to be paid.
3. An amount assessed or charged, for example: taxes or dues.
2. The act of apportioning amounts to be paid.
3. An amount assessed or charged, for example: taxes or dues.
Assignment of Proceeds of a
Letter Of Credit
Letter Of Credit
If the bank agrees, the beneficiary assigns all or part of the proceeds to be
paid to another party after the required documents have been presented.
paid to another party after the required documents have been presented.
At Sight
A notation on a draft which indicates that payment is due upon its
presentation.
presentation.
Athwartships
Across a vessel form side to side.
Automated Broker Interface (ABI)
(USA) A module of the U. S. Customs Automated Commercial System
which provides a communications link for the transmission of entry and
entry summary data on imported merchandise between ABI users and
Customs.
which provides a communications link for the transmission of entry and
entry summary data on imported merchandise between ABI users and
Customs.
Automated Commercial
Environment (ACE)
Environment (ACE)
(USA) A US Customs electronic data system, which provides support for
enforcing trade and contraband laws, ensuring trade compliance, and
providing service and information to the international trade community.
When completed, it will cover the full gamut of Customs activities.
enforcing trade and contraband laws, ensuring trade compliance, and
providing service and information to the international trade community.
When completed, it will cover the full gamut of Customs activities.
Automated Commercial System
(ACS)
(ACS)
(USA) The comprehensive electronic data system of U. S. Customs for
tracking, controlling, and processing commercial importations.
tracking, controlling, and processing commercial importations.
Automated Information Exchange
System (AIES)
System (AIES)
(USA) A module of the Automated Commercial System of U. S. Customs
which provides an automated method of exchanging information between
Field Import Specialists and National Import Specialists.
which provides an automated method of exchanging information between
Field Import Specialists and National Import Specialists.
Automated Manifest System
(AMS)
(AMS)
(USA) A module of the Automated Commercial System of U. S. Customs
designed to control imported merchandise from the time a carrier's cargo
manifest is electronically transmitted to U.S. Customs until the cargo is
properly entered, released by customs and delivered.
designed to control imported merchandise from the time a carrier's cargo
manifest is electronically transmitted to U.S. Customs until the cargo is
properly entered, released by customs and delivered.
Avoidance Of Contract
The legal cancellation of a contract because an event occurs that makes
performance of the contract terms impossible or inequitable and that
releases the parties from their obligations.
performance of the contract terms impossible or inequitable and that
releases the parties from their obligations.
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