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Glossary of Trade Terms

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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 
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. 
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. 
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. 
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. 
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
GCC Gulf Cooperation Council
GSTP Global System of Trade Preferences among Developing Countries
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
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
JBC Joint Business Councils
JBG Joint Business Group
Kyoto Protocol  A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere. 
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.
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
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
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.
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
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
Tax Haven  A country or region imposing low or no taxes on foreign source income. 
UNCTAD United Nations Conference on Trade and Development
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Wharfage Charges assessed by docks for the handling of incoming or outgoing ocean merchandise.
WTO World Trade Organisation
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