Glossary of Trade Terms
A - B
| A |
|
| ACCs |
Air Cargo Complexes |
| ACP |
African, Caribbean, and Pacific countries. |
| Ad valorem rate |
An import duty rate determined “according to the value” (ad valorem) of the commodity entering a country, as opposed to the weight or other basis for calculation. An ad valorem tariff is a tariff calculated as a percentage of the value of the goods when clearing customs. |
| AEPC |
Apparel Export Promotion Council |
| AEZ |
Agricultural Export Zones |
| Airway Bill |
A bill of lading covering both the domestic and international portions of flights to transport goods to a specific destination. The air waybill serves as a non-negotiable receipt for the shipper. |
| Andean Pact |
A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia. |
| Anti-dumping duty |
A tariff imposed to discourage the underpriced (below foreign country's domestic market / sale of foreign goods in the U.S. Market, which might hut U.S. manufacturers. |
| APEDA |
Agricultural and Processed Food Products Export Development Authority |
| ASIDE |
Assistance to States for Development of Export Infrastructure and other activities Scheme |
| ATC |
Agreement on Textiles and Clothing |
| B |
|
| Balance of trade |
The difference between a country’s total imports and exports. |
| Benchmarking |
A systematic procedure of comparing a company’s practices against the best practice and modifying actual knowledge to achieve superior performance. |
| Bill of lading |
A document establishing the terms of a contract between a shipper and a transportation company for freight to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage and a receipt for goods. |
| BIS |
Bureau of Indian Standards |
| Bonded warehouse |
A warehouse authorized by customs authorities for storage of goods where payment of duties on the goods is deferred until they are removed from the warehouse. |
| BOT |
Board of Trade |
| Break-even analysis |
Analysis of the level of sales at which a project would make zero profit. |
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C
| C |
|
| Carnets |
Customs documents permitting the holder to carry or send merchandise temporarily into certain foreign countries for trade shows or sales meetings without paying duties or posting bonds. |
| Cartel |
An agreement among, or an organization of, suppliers of a product. |
| Certificate of origin |
A certified document detailing the origin of goods used in foreign commerce. Usually required to qualify for reduced tariffs or duties, specified in the terms of a trade agreement |
| CHEMEXCIL |
Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council |
| Codex |
Codex Alimentarius Commission (a world food standards body) |
| Comparative advantage |
A comparative advantage exists when a nation or economic region is able to produce a product at a lower opportunity cost compared to another nation or region. The rule of economics that states that each country should specialize in producing those goods |
| Convertible currency |
A currency that can be traded for other currencies at will. |
| Countertrade |
The sale of goods or services that are paid for in whole or part by the transfer of goods or services from a foreign country. |
| Countervailing duty |
A duty imposed to counter unfairly subsidized products. |
| Cover note |
Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details. |
| Credit Risk Insurance |
Insurance that covers the risk of nonpayment for delivered goods. |
D
| D |
|
| Demurrage |
Excess time taken to load or unload a vessel. A sum agreed to be paid to the shipowner for the excess time taken for loading or unloading not caused by the vessel operator, but due to the acts of a charterer or shipper. Also refers to imported cargo not picked up within prescribed time. |
| DEPB |
Duty Entitlement Pass Book |
| DFID |
Department for International Development (UK) |
| DGAD |
Directorate General of Anti-Dumping & Allied Duties |
| DGCI&S |
Directorate General of Commercial Intelligence and Statistics |
| DGFT |
Directorate General of Foreign Trade |
| DGS&D |
Directorate General of Supplies and Disposal |
| Digital divide |
The digital divide refers to the widening technological gap between the richer and the poorer countries of the world. |
| DoAC |
Department of Agriculture & Cooperation |
| DSIR |
Department of Scientific and Industrial Research |
| DSU |
Dispute Settlement Understanding |
| DTA |
Domestic Tariff Area |
| Dual pricing |
The practice of selling identical products in different markets for different prices. |
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E - F
| E |
|
| ECGC Ltd. |
Export Credit Guarantee Corporation of India Limited |
| EDI |
Electronic Data Interchange |
| EEPC |
Engineering Export Promotion Council |
| EHTP |
Electronic Hardware Technology Park Scheme |
| EIAs |
Export Inspection Agencies |
| EIC |
Export Inspection Council |
| EOUs |
Export Oriented Units |
| EPB |
Export Promotion Board |
| EPCG |
Export Promotion Capital Goods |
| EPCH |
EPC for Handicrafts |
| EPCs |
Export Promotion Councils |
| EPO |
Export Promotion Organisations |
| EPZ |
Export Processing Zone |
| ESCAP |
Economic and Social Commission for Asia and Pacific |
| ETOs |
Electronic Trading Opportunities |
| Eurobond |
A bond that is denominated in a currency other than that of the country of issue. |
| F |
|
| Factoring |
Sale of an accounts receivable balance to buyers (factors) that are willing and able to bear the costs and risks of credit and collections. |
| FIEO |
Federation of Indian Export Organizations |
| FMCG |
Fast Moving Consumer Goods |
| FOB |
Freight on Board |
| Foreign trade zone |
A physical area in which the government allows firms to delay or avoid paying tariffs on imports. |
| Free trade zone |
An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Merchandise may be stored, used or manufactured in the zone and reexported without duties being paid. |
| FTA |
Free Trade Agreement |
| FTP |
Foreign Trade Policy |
| FTWZ |
Free Trade & Warehousing Zones |
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G - H
| G |
|
| GCC |
Gulf Cooperation Council |
| GSTP |
Global System of Trade Preferences among Developing Countries |
| H |
|
| HACCP |
Hazard Analysis Critical Control Point |
| Hard currency |
A currency expected to remain at stable value or to increase in relation to other currencies; also a freely convertible currency may be called "hard". |
| HLTG |
High Level Trade Group |
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I - L
| I |
|
| ICDs / CFSs |
Inland Container Depots / Container Freight Stations |
| IIFT |
Indian Institute of Foreign Trade |
| IIP |
Indian Institute of Packaging |
| Import license |
A document required and issued by some national government authorizing the importation of goods into their individual countries. |
| Irrevocable letter of credit |
A letter of credit which obligates the issuing bank to pay the exporter provided all the terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. |
| ITC (HS) |
Indian Trade Classification (Harmonised System) |
| ITPO |
India Trade Promotion Organisation |
| J |
|
| JBC |
Joint Business Councils |
| JBG |
Joint Business Group |
| K |
|
| Kyoto Protocol |
A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere. |
| L |
|
| Landed cost |
The quoted or invoiced cost of a commodity, plus any inbound transportation charges. |
| Least-developed countries (LDCs) |
The poorest of the developing countries. They are characterized by a low gross national product per capita, a reliance on subsistence agriculture, rapid population growth, inadequate infrastructure, a weak safety net of social programs, and a low quality |
| Letter of credit |
A method of payment for goods by which the buyer establishes his/her credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required and a limit for completion of the transaction. Upon receipt of documentation, the bank is either paid by the buyer or takes title to the goods themselves and then transfers funds to the seller. The bank will insist upon exact compliance with the terms of the sale, and will not pay if there are any discrepancies. |
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M - Q
| M |
|
| MAI |
Market Access Initiative scheme |
| Management contract |
An agreement by which one firm allows another to manage its foreign activities on behalf of it. The managing firm is forbidden to make capital investment or financing decisions. |
| Marine insurance |
Insurance which will compensate the owner of goods transported overseas in the event of loss which cannot be legally recovered from the carrier. |
| Marketing mix |
The set of marketing tools that the firm uses to pursue its marketing objectives in the target market. One of the most popular classifications of marketing mix tools is called the "4 P's" of marketing: product, price, place, and promotion. |
| MDA |
Marketing Development Assistance |
| Mixed tariff |
A combination of specific and ad valorem tariffs. |
| MOFAT |
Ministry of Foreign Affairs and Trade |
| Most favored nation (MFN) |
A status granted to one country by another; the granting country then accords the recipient's imports and exports the most favorable treatment that it accords any country. |
| MPEDA |
Marine Products Exports Development Authority |
| N |
|
| NCTI |
National Centre for Trade Information |
| Non-tariff barriers |
These are factors, other than tariffs, inhibiting international trade, meant to discourage imports. They may include requiring advance deposits in import payments, requiring excessive custom adherence and excessive administrative procedures. |
| NTB |
Non-Tariff Barriers |
| O |
|
| P |
|
| Phytosanitary measure |
A piece of legislation, regulation, or procedure with the purpose of preventing the introduction or spread of pests. Phytosanitary procedures often include the performance of inspections, tests, surveillance, or other treatments. |
| Port of entry |
A port where foreign goods are admitted into the receiving country. |
| Q |
|
R - Z
| R |
|
| Royalty |
Payment made for the use of a person or business’s property based on an agreed percentage of the income arising from its use. |
| RTAs |
Regional Trade Agreements |
| S |
|
| SACU |
South Africa Customs Union |
| SAFTA |
South Asian Free Trade Area |
| SCOPE-AIR |
The Standing Committee on Promotion of Exports by Air |
| SEZ |
Special Economic Zone |
| Sight draft |
A draft that is payable on demand. |
| SMEs |
Small and medium enterprises |
| Spot market |
A market in which trades are made for immediate delivery (within two business days for most spot currencies). |
| SPS |
Sanitary & Phytosanitary Measures |
| T |
|
| Tax Haven |
A country or region imposing low or no taxes on foreign source income. |
| U |
|
| UNCTAD |
United Nations Conference on Trade and Development |
| V - W |
|
| Wharfage |
Charges assessed by docks for the handling of incoming or outgoing ocean merchandise. |
| WTO |
World Trade Organisation |
| X - Z |
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Trade Point at Nepal