- S -
Safeguards:Temporary
measures to protect an industry when it
experiences increased competition by foreign suppliers.
Safeguards
can take the form of tariffs or quantitative restrictions.
Sale-leaseback:
An arrangement whereby equipment
is purchased by a lessor from the company owning and using it. The
lessor
then becomes the owner and leases it back to the original owner, who
continues
to use the equipment.
Sales-type Lease: A
lease by a lessor who
is the manufacturer or dealer, in which the lease meets the
definitional
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.
Second
beneficiary: Where a transferable
letter of credit is used, party to whom part of the value of this
credit
is transferred.
Second issuing
bank: Bank issuing the
second letter of credit in a back-to-back letter of credit
transaction.
Usually the Advising bank to the prime letter of credit.
Ship's
manifest: An instrument in
writing, signed by the ship's captain
that lists the individual shipments that make up the entire ship's
cargo.
Shipper:
The party sending the goods,
i.e. seller.
Sight bill: Bill
of exchange payable
immediately upon presentation.
Single Investor
Lease: (See Full Payout or Finance
Lease) A tax-oriented lease whereby the lessor
achieves
its desired rate of return via a combination of the rental payments,
depreciation,
and the fair market value of the equipment at the end of the original
lease
term. This method is utilized because the value of the tax benefit
allows
the rental payments to be lower than for a finance lease which can be
an
incentive to the company leasing the property.
SME:Small
and Medium
sized business enterprises. Generally SMEs create the most jobs
and
have the highest rates of entrepreneurship.
Small-ticket
Leasing: Transactions under
$100,000. In leasing, this is usually accomplished through
conditional
sale leases or single investor true leases.
Sovereign
risk: Risk that a government
or sovereign power will default on its payment
obligations.
Spot rate: Exchange
rate for foreign exchange
transactions for immediate or
near-immediate execution.
Standard
Industrial Classification (SIC): The standardized
numerical SIC code used by the US government to classify commodities,
used
in international trade.
Standard
International trade classification (SITC): A standard numerical code system
developed by the United Nations to classify commodities transported in
international trade.
Standby letter of
credit: A letter of credit
designed to be used only when the applicant defaults on another agreed
method
of payment.
SWIFT: Society
for Worldwide Interbank
Financial Telecommunication. An organization that operates the
major
interbank electronic communication system for financial messages
(payments,
letters of credit, securities transactions etc.)
- T -
Taking in charge:
Receipt of goods by carrier
from shipper.
Tare weight:
The
weight of a container and packing materials which excludes the weight
of
the goods it contains.
Tariff:A
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
ownership
of equipment. Generally, the lease rate factor on tax leases is reduced
to reflect the lessor's recognition of this tax incentive.
Technology
Transfer: Through trade or
capital flight, the movement or
sharing of technology.
TEU:A
twenty-foot
Equivalent Unit, or 20-foot dry-cargo container.
Telegraphic
transfer: Payment instruction
sent from one bank to another by electronic means, either SWIFT or
telex.
This is generally the method of choice for urgent or high-value
payments.
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
essentially
a through bill of lading used for air shipments. On the other
hand,
ocean shipments usually require two documents - an inland bill of
lading
for domestic carriage and an ocean bill of lading for international
shipment.
Time draft: A draft
that matures either a certain numbe of days after acceptance or a
certain
number of days after the date of the draft.
Title
document: A document granting
title. It can also include a transport document in which the
bearer
has title to the goods, and so can claim them from the carrier at their
destination.
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
another
party (usually a bank). On a bill of lading, 'order' or 'to
order'
assigns title to the goods to another party.
Trac Lease:
A tax-oriented lease of motor
vehicles or trailers that contains a terminal rental adjustment clause
and
otherwise complies with the requirements of the tax laws.
Trademark: A
registration process under which a name, logo,
or characteristic can be identified as exclusive.
Transferable
letter of credit : A letter
of credit part of whose value can be transferred to another party
Transhipment:
Transfer of goods from
one vessel to another during its journey. Some letters of credit
prohibit
this.
Transparency:
The concept of making trade-related administrative
processes easier to follow, including opening them to public scrutiny
and
subject to clear methods of challenge or amendment.
Transport
document: Document given by the
carrier to the shipper (seller) This document serves as receipt
for
the goods during shipment and as evidence of a carriage contract. The
transport
document MAY also serve as a document of title.
Transaction
Statement: A document that clearly outlines the terms and
conditions
agreed upon between an importer and an exporter.
Transshipment:The
practice of shipping a good into a third country
and re-exporting it to another market as a product of the third country.
True Lease:
A type of transaction that
qualifies as a lease under the Internal Revenue Code. It allows the
lessor
to claim ownership and the lessee to claim rental payments as tax
deductions.
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
maintain
the goods-or the proceeds from their sale-distinct from the remainder
of
his assets and to hold them ready for repossession by the bank.
Trustee:
A bank or trust company that holds
title to or a security interest in leased property for the benefit of
the
lessee, lessor, and/or creditors of the lessor. A leveraged lease often
has two trustees: an owner trustee and an indenture trustee.
- U -
Unconfirmed letter
of credit: Letter of credit
bearing the payment undertaking of a single bank, the Issuing bank.
Uniform Commercial
Code (UCC): Rules
that have been adopted by many states and countries in respect to
commercial
transactions.
Uniform Customs
& Practices (UCP): ICC
rules governing the administration of letters of credit Current
revision
is UCP 500. Most letters of credit state that they are to be
governed
by this.
Uniform Rules for
Collections (URC): ICC
rules governing the administration of collections. Current revision is
URC 522, which replaces URC 322.
- V -
Value-added:The
increased value at each stage of a manufacturing
assembly process.
Value date:
Date on which a foreign exchange
contract is executed, i.e. seller delivers
foreign currency.
Vendor Leasing: A
financing vehicle between
a financing source and a vendor to provide financing to stimulate the
vendor's
sales. The financing source offers leases or conditional sales
contracts
to the vendor's customers. The vendor leasing firm substitutes as the
captive
finance company of a manufacturer or distributor through the extension
of
leasing to customers, provisions of credit checking, and performance of
collections and operational administration. Also known as a lease asset
servicing or vendor programs.
Vostro
account: How a correspondent
bank refers to funds it holds on behalf of an overseas correspondent.
- W -
Warehouse receipt:
A receipt issued by a warehouse listing good received for storage.
Warehouse-to-warehouse:
An Insurance
policy which covers goods over the entire journey from the seller's to
the
buyer's premises.
Weight note:
Document issued by either the
exporter or a third party declaring the weight of goods in a
consignment.
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.
World Trade
Organization: Created by the Uruguay
Round and successor to the GATT, this organization began operations on
Jan.
1, 1995, to oversee international trade.
|