|
A
|
| Absolute quotas |
These types of quotas are quantitative, that
is, no more than the amount specified may be permitted entry during a quota period.
Imports in excess of a specified quota may be exported or warehoused (such as
in a FTZ) for entry in a subsequent quota period. |
| Ad valorem taxes |
A total prohibition on the importation of a
certain item after a certain number or value of that item has already been imported. |
| Alterations |
1. A change in the boundaries of an activated
zone or subzone.
2. Activation of a separate site of an already activated zone or subzone with
the same operator at the same port.
3. The relocation of an already activated site with the same operator. |
| Antiboycott regulations |
Regulations prohibiting any U.S. citizen from
participating in any boycott of any country or person who is considered "friendly."
An example is certain clauses often inserted in contracts with Arab countries
requiring the parties to agree not to do business with Israel. |
| Antidiversion laws |
Laws which apply to exports to ensure they go
only to certain destinations. |
| Antitrust laws |
Laws which apply to business transactions and
are designed to prevent restrictive trade practices. |
| ATA Carnet |
A document that allows import and export of
certain items used in business, good for passage through customs of the item in
more than 40 countries. The carnet is usually good for a year. |
|
B |
| Bill of lading |
A shipping document, usually provided by shipping
companies or by freight forwarders |
|
C |
| Cash in advance |
A method of paying for items which involves
giving cash before receiving anything. It is a fairly risky way to pay because
it assumes no problems with delivery or with the quality of the items, and that
there would be no difficulty in getting the cash back if problems arose. |
| Commercial invoice |
A document required for importing and exporting,
usually including all the terms of sale. |
| Conditionally admissible merchandise |
Merchandise that may be imported into the U.S.
under certain conditions, is subject to permits or licenses , or must be reconditioned
to bring it into compliance with applicable laws of the U.S |
| Consignment and countertrade |
Methods of paying infrequently used in international
trade. Highly risky and not recommended. Consignment involves placing the goods
with a seller who does not pay you unless and until your products sell. Countertrade
involves trading your goods for other goods, rather than cash. You will have to
sell the goods you receive in trade and may be stuck with unsaleable or inferior
products which are worthless. |
| Constructive transfer |
A legal fiction that permits acceptance of a
customs entry for merchandise in a zone before its physical transfer to the customs
territory. |
| Copyright |
An intellectual property right that registers
your right to certain work, such as written works such as a play or book, or photographs,
etc. |
| Countervailing duty |
A duty levied on the import of certain foreign
goods when it is felt that they were produced under conditions amounting to unfair
trade practices. |
| Country of origin or source country |
The country from which an item is imported if
that country is where the item was made. |
| Customs territory |
The territory of the U.S. in which the general
tariff laws of the U.S. apply. U. S. Customs territory includes only the states,
the District of Columbia and Puerto Rico minus any areas with in the boundaries
of foreign-trade zones. |
|
D |
| Dactivation |
Voluntary discontinuation of the activation
of a entire zone or subzone by the grantee or operator. Discontinuance of the
activated status of only part of a zone site is an alteration. |
| Default |
An act or omission that will result in a claim
for duties, taxes, charges or liquidated damages under the FTZ's bond. |
| Destination or target country |
Country to which exports will be sent for sale.
|
| Documentary collections |
a method of payment in international trade.
See infra for more details. |
| Domestic merchandise |
This is merchandise that is considered U.S origin
merchandise or merchandise that all customs duties have been paid. |
| Drawback |
Import duties or taxes repaid by a government,
in whole or in part, when the imported goods are re-exported or used in the manufacture
of exported goods. |
| Dumping |
Selling an item for less than its fair market
value. Considered an unfair trade practice. |
| Dumping duty |
A duty levied on items brought into the U.S.
when those items are believed to have been dumped in the country. May apply if
items were previously dumped, even though current prices do not indicate dumping.
|
| Duties |
Fees paid on items as they pass the border of
a country. Duties are based on many things, sometimes on the value of the item,
as a percentage of the value, or based on quantity, or both. |
|
E |
| Embargoes |
Complete prohibitions on trade with another
country. Embargoes usually prohibit or restrict even travel to that country. |
| Exhibition |
The showing of merchandise within a zone, usually
to prospective buyers. Customs supervision may be required when such exhibition
involves packing, unpacking, repacking, assembly or reconditioning of the goods
for showing. |
| Export license |
A license required for exporting ANY product
from the U.S. Both general and validated licenses exist. |
| Exporting |
Taking products (goods or services) from one
country and selling them in another country. |
|
F |
| First in-first out (FIFO) |
An accounting method based on the assumption
that order stock is disposed first. This requires merchandise to be fungible without
regard to the source. e.g.,foreign or domestic and a perpetual inventory system
which identifies the merchandise by a unique identifier number(UIN) that distinguishes
the goods from all other goods. |
| Foreign-first (FOFI) |
An accounting method based on the assumption
that foreign status merchandise is disposed of first,e.g., if 100 domestic units
and 100 foreign units are commingled in a zone, the first 100 units withdrawn
would be identified as the foreign units. Permission to use FOFI must be obtained
from customs and is granted on a case-by-case basis. |
| Foreign-trade zone |
An isolated , enclosed and policed area operated
as a public utility, in or adjacent to a port of entry, furnished with facilities
for lading, unlading, handling, storing, manipulating, manufacturing and exhibiting
goods and for reshipping them by land, water or air. Any merchandise, except that
which is prohibited by law or other applicable regulations, may be brought into
a zone without being subject to the customs laws of the United States and may
stored, exhibited , manufactured, mixed or manipulated in any manner as provided
in applicable laws and regulations. Merchandise is subject to customs duties if
it is sent into customs territory from the zone, or it may escape such duties
if it is exported from or destroyed in the zone. |
| Foreign-Trade Zone Act |
The Foreign-Trade Zone Act of June 18, 1934
(48 Stat. 998-1003; 19 U.S.C 81a-81u) as amended. |
| Foreign merchandise |
Imported merchandise that has not been properly
released from customs custody into the Customs Territory of the United States. |
| Freight forwarder |
A company or person who handles the shipping
of items from one country to another. Usually handles all documentation requirements.
|
|
G |
| General export license |
A license for all exporters to export a certain
item from the U.S. The individual exporter does not need to apply for the license
but such a license MUST exist. |
| Grant |
The authorization issued by the Foreign-Trade
Zones Board to the public body to function as a foreign-trade zone. |
| Grantee |
The entity that is awarded the privilege of
establishing and operating a foreign-trade zone pursuant to the grant. |
|
I |
| Import license |
License required to import certain items into
the U.S. |
| Importing |
Bringing products (goods or services) from a
foreign country into another country for sale. |
| Intangibles |
Items, other than goods, which have economic
value and are sold. Examples include copyrights, trade secrets, services, etc. |
| Incoterms |
International business terms used throughout
the world |
| Intellectual property |
Rights to certain information owned by a company
or the company's name, symbols registered to the company, or other intangibles.
Examples include copyright, trademark, patents, etc. |
| International law |
There are two kinds of international law generally
recognized. Public international law is the law created when countries agree to
treaties. Private international law is the law created between private parties,
for example when they write a contract. |
| Inverted tariff structure |
Where imported inputs (parts) are dutiable at
a higher rate than the finished product into which they are incorporated. |
| Irrevocable confirmed letter of credit |
A method of payment commonly used in international
trade. A letter of credit is essentially a promise by a bank that it will pay
for the account of someone when certain requirements are met. A letter of credit
is irrevocable when it cannot be revoked by either party, and it is confirmed
when a U.S. bank agrees to pay the amount due even if the foreign, issuing bank
defaults. |
|
J |
| Joint ventures |
Arrangements between businesspeople (and sometimes
government entities) to participate together in a business deal. |
|
L |
| Letters of credit |
The most common method of payment in international
trade. Irrevocable, confirmed letters of credit only are recommended. Letters
of credit involve bank guarantees of payment. |
|
M |
| Manipulation |
As defined in Section 562 of the Tariff Act
Processing wherein merchandise is packed, unpacked, repacked, cleaned, sorted
or otherwise changed in condition. The precise distinction between manipulation
and manufacturing is subject to interpretation and enjoys a long history of case
law. |
| Manufacturing |
The U.S. Customs Services determines what constitutes
manufacturing on a case by case basis distinguishing it from other such operations
as manipulation, processing, production and blending. The FTZ Board has defined
it as any process that results in a change in customs classification of the merchandise,
and therefore, requires prior clearance from the board pursuant to the manufacturing
conditions in specific foreign-trade grants. |
| Merchandise |
Includes goods, wares and chattels of every
description, except prohibited merchandise, building materials, production equipment
and supplies for use in operation of a zone. |
|
N |
| Non-privileged foreign (NPF) merchandise
|
Merchandise that is appraised and classified
for purposes of customs duties at the time the merchandise enters the U. S. Customs
Territory from the foreign-trade zone. |
|
O |
| Open account |
Method of paying in international trade which
involves keeping an account for a seller or buyer. Fairly risky. |
| Operator |
An entity that is authorized by the grantee
to operate the foreign-trade zone. |
| Operator's bond |
A bond submitted to customs, on Customs Form
(CF)301, to assure compliance with customs regulations as set forth 19 CFR 113.73 |
|
P |
| Privileged foreign (PF) merchandise |
Merchandise appraised and classified for purposes
of custom duties at the time o f admission into the foreign-trade zone. However,
the customs duties are not to be paid until the identified merchandise is transferred
to U.S. Customs Territory. |
| Pro forma invoice |
Document generally required for shipping, whether
importing or exporting. Contains the information of the agreement between the
parties. |
| Prohibited merchandise/operations |
Merchandise of which importation is prohibited
by law (e.g., literature urging treason or insurrection against the U.S., obscene
pictures, etc.); or certain operations involving specific merchandise (e.g., tobacco
, cigars, cigarettes, firearms, distilled spirits/alcohol, etc.);or retail sales
in a zone. |
|
Q |
| Quota |
Quantity control on imported merchandise for
a certain period of time. |
|
R |
| Reactivation |
A resumption of the activated status of an entire
area that was previously deactivated with out any change in the operator or the
area or the area boundaries, as opposed to an alteration (boundaries are different)
or an activation (operator is different). |
|
S |
| Services |
A "performance" product i.e. a product which
is not a good and which involves mostly the provision of assistance, advice or
other help to the customer. Examples include accounting, legal services, architectural
services, and engineering. |
| Subsidies |
Payments or benefits given by one country to
the manufacturers or producers of a particular product in their country to help
them compete internationally or to give them an advantage. |
| Subzone |
A special purpose zone established as part of
zone project for a limited purpose that cannot be accommodated within an existing
zone. |
|
T |
| Target country |
Country to which you are planning to export.
|
| Tariff rate quota |
This type of quota provides for the entry of
a specified quantity of the quota product at a reduced rate of duty during the
quota period. There is no limitation on the amount of the product which may be
entered during the quota period, but quantities entered in excess of the quota
for the period are subject to higher duty rates. |
| Trade deficit |
Commonly used to describe the situation in which
a country purchases more goods imported from other countries (imports) than that
country sells in foreign countries (exports). |
| Trade shows |
Events at which industry or other professionals
display and sell their wares. There are many variations, including industry-specific
trade shows, country-specific trade shows, and others. |
| Trade surplus |
Commonly used to describe the situation in which
a country exports more products (sells more products in foreign country) than
it imports (buys from foreign countries). |
| Trademark |
A mark or symbol or sometimes even a name that
is "owned" by a company which has registered the right to exclusive use of it.
|
| Transshipment |
Where a product made in one country is taken
to another country for sale, sometimes without identifying the originating country.
Sometimes used to get around foreign buyers' hesitations to buy items made in
particular countries, especially if the buyer's home country forbids trade with
the originating country. |
|
U |
| Unfair trade practices |
Activities considered to be unfair because they
influence or affect the free trade of goods and services. Examples include subsidies,
regulations prohibiting foreigners from selling certain products, or other limits.
The rules on which countries can use trade practices generally seen as unfair
are complex, because some less developed countries have been allowed to keep some
trade programs intact even though the programs may have some "unfair" aspects
to them. The U.S. Trade Representative examines unfair trade practices and publishes
a yearly summary of those practices (available through the government printing
office). |
| Unique identifier number (UIN) |
Unique numbers and/or letters that identify
merchandise admitted to a zone. This cumulative identification method allows inventory
levels to be more readily adjusted on a FIFO or FOFI basis. |
| User |
A person or firm using a zone for storage handling
or processing of merchandise. |
|
V |
| Validated export license |
A specific license for export which is issued
to a particular exporter for export of a particular good. |
|
Z |
| Zone project |
All of the zone and subzone sites under a single
grantee, normally a single port of entry. |
| Zone restricted (ZR) merchandise |
Merchandise that is transferred to a foreign-trade
zone under special circumstances and for special customs reasons. This merchandise
is usually transferred to a zone to satisfy a legal requirement such a completing
a Temporary Importation Bond. This merchandise cannot be manufactured in the zone. |
| Zone status |
The status of merchandise admitted to a FTZ.
i.e., domestic (D),non-privileged foreign (NPF), privileged foreign (PF), or zone
restricted (ZR) status. |
Foreign
Trade Terms (Glossary) • Combined Nomenclature
• Incoterms (Sharing of expenses) •
Incoterms
