- D -
Deed of Assignment:
A banking arrangement
between the beneficiary of a letter of credit and a third party -
the supplier of the goods - who requires an assurance of
beneficiary of the credit is the assignor: part of the proceeds of the
credit are irrevocably assigned to the
Deed of protest:
Document evidencing that
a protest has been carried out.
In a collection, a bank may be asked to
do this if a bill of exchange is not
paid, accepted or honored at maturity.
Credit: A type of letter of credit which provides for payment
time after presentation of the shipping documents by the exporter (i.e.
x days after sight).
made for storing
goods at the port of destination while awaiting
collection by the buyer. These may
be incurred unintentionally if the goods arrive
before the buyer has received the document of title.
Devaluation: The official lowering of the value of one
in terms of one or more foreign currencies.
A non-leveraged lease by a lessor (not a manufacturer or dealer) in
the lease meets any of the definitional criteria of a capital lease,
certain additional criteria.
bills: Where the payee of
a term bill requires payment immediately, a bank may discount the bill,
i.e. make immediate payment, deducting an amount for
interest over the term of the bill.
amount paid by a vessel's operator to a charter if loading or unloading
is completed in less time than stipulated in the charter party.
foreign agent who sells for a supplier directly and most
often collects all payments from customers and maintains an inventory
the supplier's products.
receipt: A receipt issued by an
ocean carrier to acknowledge receipt
of a shipment at the carrier's dock or warehouse.
A receipt issued by an ocean carrier to
acknowledge the receipt
of a shipment at the carrier's dock or warehouse facilities.
Document of title:
A transport document (usually
a bill of lading) which (when appropriately made out) entitles the
to claim the goods from the carrier.
collection: Procedure in which
banks in the buyer's and seller's country act for the seller by
commercial documents to the buyer along with a payment
demand (usually a bill of exchange).
sometimes used as another
name for a letter of credit.
Another name for a bill of exchange.
Party on whom a bill of exchange
is drawn, i.e. who is required to make
payment. In the context of
collections, usually the buyer. In letters of credit, the drawee
is usually a bank.
Party drawing up the bill of exchange.
Usually also the payee, to whom the
money is due. Often
used to designate the 'seller'.
merchandise into a country below the domestic price or the costs
in production and shipment.
on imports imposed by the customs authority of a country. Duties
generally based on the value of the product being imported (ad
valorem), weight, or quantity (specific duties), or a combination of
value and other factors (compound duties). Also known as a tariff.
- E -
Life(Useful Life): The period of
time during which an asset will have economic value and be usable.
Rate: The effective rate
(to the lessee) of cash flows resulting from a lease transaction. To
this rate with a loan interest rate, a company must include in the cash
flows any effect the transactions have on federal tax liabilities.
Signing on the back of a document
so as to assign a right or benefit to
another party. Endorsement by the
seller may be necessary for transport
documents, insurance documents, bills of
exchange or many other documents.
assumption of payment
responsibility in respect of a letter of credit, e.g.
when an Advising bank agrees to add its
confirmation to a credit.
Participant: The owner participant,
trustor owner, or grantor owner.
A document that describes
in detail the equipment being leased or purchased. For a lease, it may
also state the lease term, commencement date, repayment schedule and
of the equipment.
funds deposited in banks outside the United States. This usually
banks in Europe or the European Union.
single currency of the European Economic and Monetary Union (EMU)
introduced in January 1999. EMU members are Austria, Belgium,
Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands,
Portugal, and Spain.
permit: A government permit
sometimes required by the importer's
government to enable the import firm to convert its own country's
into foreigh currency .
rate: The price of one currency
in terms of another.
Ex-works (EXW): Buyer
bears all costs and
assumes all risks for the consignment once it has left the seller's
The date when a letter of credit
is no longer valid - i.e. the date beyond which it cannot be used.
US Export/Import bank.
Export Broker: An individual or firm that brings buyers
and sellers together
for a fee, but does not rake part in the actual sales transaction.
Company (EMC): A private firm that transacts export business
of its client companies in return for a commission, salary, or retainer.
Export License: A general export license covers the
exportation of goods not
restricted under the terms of a validated export license. No
application or written authorization is needed to ship exports under a
Subsidies: Any form of
that helps an exporter or manufacturing concern to lower its export
- F -
Purchase Option: An option
to purchase leased property at the end of the lease term at its then
market value. The lessor does not have the ability to retain title to
equipment if the lessee chooses to exercise the purchase option.
Negotiating: Authority provided
U.S. Congress to the Executive Branch to negotiate amendment-proof
Equivalent Unite, or 40-foot dry cargo container.
Finance Lease (See
Single Investor Lease):
Typically, a finance lease is a full-payout, noncancellable agreement,
in which the lessee is responsible for maintenance, taxes, and
document: a document relating
to payment. The bill of exchange is the financial document most
used in collections and letters of credit. Promissory notes are
sometimes used in collections.
contract: Currency is bought
or sold at a given future date.
Investment: Foreign investment in plant
Force majeure: The
title of a standard clause in a marine contract exempting the parties
nonfulfillment of their obligations as a result of conditions beyond
control - such as floods, war, etc.
exchange: The currency of a
Requirements: Investment rules
limit foreign ownership to a minority holding is a company.
Foreign Trade Zone: Also known as Free Trade Zones, or FTZs,
they are ports designated
by the government of a country for the duty-free entry of
goods. Merchandise may be stored, displayed, assembled, packaged,
or used for manufacture within the zone and re-exported without duties
contract: A contract for the
sale or purchase of a given amount of foreign currency at a future time
at a rate of exchange that is fixed when the contract is made.
contract: Currency must be
bought or sold within a given period of time.
Foul Bill of
Lading: A receipt for goods issued by a carrier with the
that the goods were damaged when received from the shipper.
Ship(FAS): This is an incoterm
whereby the exporter and importer have the following relationship:
- delivers goods alongside ship
- provides alongside receipt
Free Carrier (FCA):
this is also an Incoterm
that may be used for any mode of transport. It is very common for
containerized shipments. Under this term, exporter and importer
have the following
- pays freight charges and
- pays for export licence and taxes
- delivers to a named place
- provides export licence
- pays export duties
- pays all costs from named
place (insurance, import duties,
Free On board
(FOB): An Incoterm whereby
the seller pays for loading the items to be purchased onto the vessel,
not for the cost of carriage or insurance.
Free Port: An area
such as a port city into which merchandise may legally be moved without
payment of duties.
Free-trade zone: A
port designated by the government of a country for duty-free entry on
non-prohibited good. Merchandise may be stored, used or
in the zone and reexported without duties being paid.
Forwarders' Receipt: Transport document
issued by Freight Forwarder. Not a document of title.
Full Payout Lease:
A lease in which the lessor
recovers, through the lease payments, all costs incurred in the lease
an acceptable rate of return, without any reliance upon the leased
future residual value.