- G -
G-7(Group of Seven): Seven industrial countries - the US,
Japan, Germany, France,
The United Kingdom, Italy and Canada - whose leaders have met at annual
economic summits since 1975 to coordinate economic policies.
Generalized Agreement on tariffs and Trade, a multilateral treaty
designed to help reduce trade barriers between the signatory countries
and to promote trade through tariff concessions.
license: A type of export license for
which individually validated
export licenses are not required. No individual authorization is
needed to ship exports under a general export license.
of Preferences (GSP): A. U.S.
program that grants duty-free treatment, on a product-by-product basis,
to developing countries. This program is intended to help
developing nations start selling to U.S. markets.
Product (GDP) - A measure of the market value of goods and services
by a nation. Unlike Gross National Product, GDP excludes profits
made by U.S. firms overseas, as well as the share of reinvested earning
in U.S. firms' foreign-based operations.
Gross weight: The total
weight of a shipment, including goods and packing.
Guideline Lease: A
lease written under criteria
established by the IRS to determine the availability of tax benefits to
- H -
A globally developed schedule of tariff
nomenclature arranged in six-digit codes so that all participating
can classify traded goods on a common basis. Beyond the six digit
level, countries are free to introduce national distinctions for tariff
and statistical purposes. The U.S. adaptation of this system is
Harmonized Tariff Scheduled of the United States.
- I -
Import Licenses: Licenses required by some countries
to bring in
a foreign-made good. In many cases, import licenses are also used
by the issuing country to control the quantity of imported items.
commercial terms used nearly universally
in letters of credit, international contracts and other
These include who pays for carriage, loading, unloading, insurance,
etc. The common Incoterms are CIF, FOB, CFR, and Ex Works.
They are compiled and published by the International chamber of
Clause: A clause
in which the one party indemnifies the other. In leasing,
a clause whereby the lessee indemnifies the lessor from loss of tax
Trust: (Indenture) An agreement
between the owner trustee and the indenture trustee: The owner trustee
mortgages the equipment and assigns the lease and rental payments under
the lease as security for amounts due to the lenders. Same as a
agreement or mortgage.
Inland bill of
lading: A bill of lading used in
transporting good overland to
the exporter's international carrier.
Clauses: Standard conditions
of insurance cover for goods, established by the Institute of London
This is also referred to as clauses A, B and C.
certificate:Document giving details
of insurance cover for a consignment.
The certificate will cross-reference a
master insurance policy and must be
note:- Insurance document
evidencing that insurance cover for a consignment has been taken out,
not giving full details.
Insurance policy: Document
setting out full
details of insurance in force. A policy MAY refer to a single
and be sent with the other commercial documents. More commonly there is
an open policy for all the shipper's consignments. For each consignment
an insurance certificate is issued, cross-referencing the policy.
Property: Intangible items protected by patents,
and copyrights, such as creative works and inventions. There are
organizations that deal solely with intellectual property, and
protection of intellectual property, and increased protection of
properly rights is an issue of discussion in GATT, WTO and other talks.
of two or more modes of transportation to complete a cargo move;
truck/rail/ship, or truck/air, for example.
Chamber of Commerce: International
non-governmental body concerned with promotion of trade and
of trading practice. Responsible for drafting and publishing:
How a Collecting or Presenting
bank will refer to a collection.
The collection that
has been received from an overseas bank or exporter for
presentation to a buyer in this country
Inward letter of
credit: How an Advising
or Confirming bank will refer to a letter of credit. A letter of
issued by an overseas bank for advice to a seller in this
of Credit: A letter of credit in which the specified payment
by the bank if all terms and conditions are met by the drawee.
opposite of a revocable letter of credit, which can be canceled or
by the drawee, or buyer, after it has been issued by the drawee's bank.
Under UCP 500 all credits are
irrevocable unless explicitly
stated to be revocable.
Issuing bank: Bank
giving the primary payment
undertaking for a letter of credit, acting on
behalf of a buyer.
- J -
Joint venture: An international business collaboration
between foreign interests
and private parties from the host country, in which two or more parties
establish a new business enterprise to which each contributes and in
which ownership and control are shared.
- L -
contract in which one party conveys
the use of an asset to another party for a specific period of time at a
(Rental Payment) The periodic
rental payment to a lessor for the use of assets. Others may define
rate as the implicit interest rate in minimum lease payments.
The person gaining use of the property
or equipment being leased.
party to a lease agreement
who has legal or tax title to the equipment, grants the lessee the
to use the equipment for the lease term, and is entitled to the rentals.
date: Date on a letter
of credit by which the goods must have been shipped. When the
of Credit is presented, this date will be checked against the date on
Letter of Credit: A document issued by a bank per
instructions from a buyer
of goods, authorizing the seller to draw a specified amount of money
specified terms, usually the receipt by the bank of certain documents
a given time.
In this type of lease, the
lessor provides an equity portion (usually 20 to 40 percent) of the
cost and lenders provide the balance on a nonrecourse debt basis. The
receives the tax benefits of ownership.
Licensing: A business arrangement in which the manufacturer of a
product (or a firm controlling
a technology or product) grants permission to some other group,
or corporation to manufacture that product in return for specified
Local Content: The percentage of a good that is made