- S -
measures to protect an industry when it
experiences increased competition by foreign suppliers.
can take the form of tariffs or quantitative restrictions.
An arrangement whereby equipment
is purchased by a lessor from the company owning and using it. The
then becomes the owner and leases it back to the original owner, who
to use the equipment.
Sales-type Lease: A
lease by a lessor who
is the manufacturer or dealer, in which the lease meets the
criteria of a capital lease or direct financing lease.
Schedule B: Short form of Schedule B, Statistical
Classification of Domestic
and Foreign Commodities Exported from the United States. All
commodities exported from the US must be assigned a seven-digit
Schedule B number.
beneficiary: Where a transferable
letter of credit is used, party to whom part of the value of this
bank: Bank issuing the
second letter of credit in a back-to-back letter of credit
Usually the Advising bank to the prime letter of credit.
manifest: An instrument in
writing, signed by the ship's captain
that lists the individual shipments that make up the entire ship's
The party sending the goods,
Sight bill: Bill
of exchange payable
immediately upon presentation.
Lease: (See Full Payout or Finance
Lease) A tax-oriented lease whereby the lessor
its desired rate of return via a combination of the rental payments,
and the fair market value of the equipment at the end of the original
term. This method is utilized because the value of the tax benefit
the rental payments to be lower than for a finance lease which can be
incentive to the company leasing the property.
sized business enterprises. Generally SMEs create the most jobs
have the highest rates of entrepreneurship.
Leasing: Transactions under
$100,000. In leasing, this is usually accomplished through
sale leases or single investor true leases.
risk: Risk that a government
or sovereign power will default on its payment
Spot rate: Exchange
rate for foreign exchange
transactions for immediate or
Industrial Classification (SIC): The standardized
numerical SIC code used by the US government to classify commodities,
in international trade.
International trade classification (SITC): A standard numerical code system
developed by the United Nations to classify commodities transported in
Standby letter of
credit: A letter of credit
designed to be used only when the applicant defaults on another agreed
for Worldwide Interbank
Financial Telecommunication. An organization that operates the
interbank electronic communication system for financial messages
letters of credit, securities transactions etc.)
- T -
Taking in charge:
Receipt of goods by carrier
weight of a container and packing materials which excludes the weight
the goods it contains.
tax applied to goods transported from one customs
area to another, or on imported products. Tariffs can be imposed
to raise income for a country or to limit import competition.
Tax Lease: A
lease wherein the lessor recognizes
the tax incentives provided by the tax laws for investment and
of equipment. Generally, the lease rate factor on tax leases is reduced
to reflect the lessor's recognition of this tax incentive.
Transfer: Through trade or
capital flight, the movement or
sharing of technology.
Equivalent Unit, or 20-foot dry-cargo container.
transfer: Payment instruction
sent from one bank to another by electronic means, either SWIFT or
This is generally the method of choice for urgent or high-value
Term bill: A
bill of exchange on which
payment is due at a future date.
This is sometimes called a tenor bill.
Through bill of
lading: A single bill of lading
converting both the domestic and
international carriage of an export shipment. An air waybill is
a through bill of lading used for air shipments. On the other
ocean shipments usually require two documents - an inland bill of
for domestic carriage and an ocean bill of lading for international
Time draft: A draft
that matures either a certain numbe of days after acceptance or a
number of days after the date of the draft.
document: A document granting
title. It can also include a transport document in which the
has title to the goods, and so can claim them from the carrier at their
To order: Usually
means a direction transferring
ownership rights - an endorsement. On a bill of exchange 'order'
or 'to order' means that the drawer directs payment to be made to
party (usually a bank). On a bill of lading, 'order' or 'to
assigns title to the goods to another party.
A tax-oriented lease of motor
vehicles or trailers that contains a terminal rental adjustment clause
otherwise complies with the requirements of the tax laws.
registration process under which a name, logo,
or characteristic can be identified as exclusive.
letter of credit : A letter
of credit part of whose value can be transferred to another party
Transfer of goods from
one vessel to another during its journey. Some letters of credit
The concept of making trade-related administrative
processes easier to follow, including opening them to public scrutiny
subject to clear methods of challenge or amendment.
document: Document given by the
carrier to the shipper (seller) This document serves as receipt
the goods during shipment and as evidence of a carriage contract. The
document MAY also serve as a document of title.
Statement: A document that clearly outlines the terms and
agreed upon between an importer and an exporter.
practice of shipping a good into a third country
and re-exporting it to another market as a product of the third country.
A type of transaction that
qualifies as a lease under the Internal Revenue Code. It allows the
to claim ownership and the lessee to claim rental payments as tax
Trust Receipt: Release
of merchandise by a bank to a buyer in which
the bank retains title to the goods. The buyer is obligated to
the goods-or the proceeds from their sale-distinct from the remainder
his assets and to hold them ready for repossession by the bank.
A bank or trust company that holds
title to or a security interest in leased property for the benefit of
lessee, lessor, and/or creditors of the lessor. A leveraged lease often
has two trustees: an owner trustee and an indenture trustee.
- U -
of credit: Letter of credit
bearing the payment undertaking of a single bank, the Issuing bank.
Code (UCC): Rules
that have been adopted by many states and countries in respect to
& Practices (UCP): ICC
rules governing the administration of letters of credit Current
is UCP 500. Most letters of credit state that they are to be
Uniform Rules for
Collections (URC): ICC
rules governing the administration of collections. Current revision is
URC 522, which replaces URC 322.
- V -
increased value at each stage of a manufacturing
Date on which a foreign exchange
contract is executed, i.e. seller delivers
Vendor Leasing: A
financing vehicle between
a financing source and a vendor to provide financing to stimulate the
sales. The financing source offers leases or conditional sales
to the vendor's customers. The vendor leasing firm substitutes as the
finance company of a manufacturer or distributor through the extension
leasing to customers, provisions of credit checking, and performance of
collections and operational administration. Also known as a lease asset
servicing or vendor programs.
account: How a correspondent
bank refers to funds it holds on behalf of an overseas correspondent.
- W -
A receipt issued by a warehouse listing good received for storage.
policy which covers goods over the entire journey from the seller's to
Document issued by either the
exporter or a third party declaring the weight of goods in a
This must agree with the weight declared on the transport document and
shown on the invoice.
Without reserve: A
term indicating that a shipper's agent or representative is empoered to
make definitive decision and adjustments abroad without approval of the
group or individual represented.
Organization: Created by the Uruguay
Round and successor to the GATT, this organization began operations on
1, 1995, to oversee international trade.