A series of publications by the U.S. State Department providing an overview of a country's history, people, political conditions, economy, and foreign relations. Also includes map of country and travel notes. Available from: Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402; P.O. Box 371954, Pittsburgh PA 15250-7954; http://www.access.gpo.gov/su_docs;

to receive catalog, contact U.S. Fax Watch: (202) 512-1716.

back haul

(shipping) To haul a shipment back over part of a route which it has traveled.

back order

That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date when available. Also, to restock requested out-of-stock items.

back-to-back borrowing

(banking) The process whereby a bank brings together a borrower and a lender so that they agree on a loan contract.

back-to-back letter of credit

(banking) A new letter of credit opened in favor of another beneficiary on the basis of an already existing, non-transferable letter of credit. For example, a British merchant agrees to buy cotton in Egypt for sale to a Belgian shirtmaker. The Belgian establishes a non-transferable letter of credit for payment to the British merchant who then uses the strength of the letter of credit as a security with his bank for opening a letter of credit to finance payment to the Egyptian. See letter of credit.

back-to-back loan

(banking) Operations whereby a loan is made in one currency in one country against a loan in another currency in another country (e.g., a U.S. dollar loan in the U.S. against a pounds sterling loan in the U.K.).

bad faith

(law) The intent to mislead or deceive (mala fides). It does not include misleading by an honest, inadvertent or uncalled-for misstatement.

bagged cargo

(shipping) Goods shipped in sacks.

baht

The currency of Thailand. 1B=100 satangs.

bailment

(law) A delivery of goods or personal property by one person (the bailor) to another (the bailee) on an express or implied contract and for a particular purpose related to the goods while in possession of the bailee, who has a duty to redeliver them to the bailor or otherwise dispose of them in accordance with the bailor's instructions once the purpose has been accomplished. A bailment arises, for example, when a seller delivers goods to a shipping company with instructions to transport them to a buyer at a certain destination.

(a) A bailment for hire is a bailment contract in which the bailor agrees to compensate the bailee. A shipping contract is usually a bailment for hire because the shipper transports the goods for a fee. (b) A special bailment is one in which the law imposes greater duties and liabilities on the bailee than are ordinarily imposed on other bailees. Common carriers, for example, are special bailees, because the law imposes extra duties of due care with regard to the property and persons transported than are required of private carriers. See carrier.

balanced economy

(economics) A condition of national finances in which imports and exports are equal.

balance of payments

(economics) A statement identifying all the economic and financial transactions between companies, banks, private households and public authorities of one nation with those of other nations of the world over a specific time period. A transaction is defined as the transfer of ownership of something that has an economic value measurable in monetary terms from residents of one country to residents of another.

The transfer may involve: (1) goods, which consist of tangible and visible commodities or products; (2) services, which consist of intangible economic outputs, which usually must be produced, transferred, and consumed at the same time and in the same place; (3) income on investments; and (4) financial claims on, and liabilities to, the rest of the world, including changes in a country's reserve assets held by the central monetary authorities. A transaction may also involve a gift, which is the provision by one party of something of economic value to another party without something of economic value being received in return.

International transactions are recorded in the balance of payments on the basis of the double-entry principle used in business accounting, in which each transaction gives rise to two offsetting entries of equal value so that, in principle, the resulting credit and debit entries always balance. Transactions are generally valued at market prices and are, to the extent possible, recorded when a change of ownership occurs.

These transactions are divided into two broad groups: current account and capital account. The current account includes exports and imports of goods, services (including investment income) and unilateral transfers. The capital account includes financial flows related to international direct investment, investment in government and private securities, international bank transactions and changes in official gold holdings and foreign exchange reserves.

(IMF) The International Monetary Fund (IMF), which strives for international comparability, defines the balance of payments as "a statistical statement for a given period showing (1) transactions in goods, services and income between an economy and the rest of the world, (2) changes of ownership and other changes in that economy's monetary gold, special drawing rights (SDRs) and claims on and liabilities to the rest of the world, and (3) unrequited transfers and counterpart entries that are needed to balance, in the accounting sense, any entries for the foregoing transactions and changes which are not mutually offsetting."

(U.S.) The six balances that are currently published quarterly concerning the U.S. balance of payments are:

(1) The balance on merchandise trade, which measures the net transfer of merchandise exports and imports (which differs in some ways from the trade balance published monthly by the Bureau of the Census);

(2) The balance on services, which measures the net transfer of services, such as travel, other transportation, and business, professional, and other technical services (this balance was redefined in 1990 to exclude investment income);

(3) The balance on investment income, which measures the net transfer income on direct and portfolio investments;

(4) The balance on goods, services and income, which measures the net transfer of merchandise plus services and income on direct and portfolio investment (this balance is equivalent to the pre-1990 balance on goods and services; it is also conceptually comparable to net exports of goods and services included in GNP);

(5) The balance on unilateral transfers (net), which measures the net value of gifts, contributions, government grants to foreign countries and other unrequited transfers;

(6) The balance on current account (widely used for analysis and forecasting) which measures transactions in goods, services, income and unilateral transfers between residents and nonresidents.

balance of trade

(economics) The difference between a country's imports and exports over a set period. (a) A balance of trade deficit is when a country imports more than it exports. (b) A balance of trade surplus is when a country exports more than it imports.

balance on ...

See balance of payments.

balboa

The currency of Panama. 1B=100 centesimos.

bale

(shipping) A large bundle of compressed, bound and usually wrapped goods, such as cotton.

bale cargo

(shipping) Bulky cargo shipped in bales, usually of burlap.

ballast

(shipping) Heavy material strategically placed on a ship to improve its trim or stability. In most vessels water is used as ballast.

bank acceptance

(banking) A bill of exchange drawn on or accepted by a bank to pay specific bills for one of its customers when the bill become due. Depending on the bank's creditworthiness, the acceptance becomes a financial instrument which can be discounted for immediate payment. See bill of exchange.

bank affiliate export trading company

(U.S.) An export trading company partially or wholly owned by a banking institution as provided under the U.S. Export Trading Company Act. See export trading company; Export Trading Company Act.

bank draft

(banking) A check drawn by one bank against funds deposited to its account in another bank.

banker's bank

(banking) A bank that is established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.

banker's draft

(banking) A draft payable on demand and drawn by, or on behalf of, a bank upon itself. A banker's draft is considered cash and cannot be returned unpaid.

Bank for International Settlements (BIS)

(banking) Established in 1930, this organization was designed to foster cooperation among world central banks, to seek opportunities for development of financial activity among governments and to serve as an agent involving the transfer of payments. Address: Bank for International Settlements, Centralbahnplatz 2, CH-4002 Basel, Switzerland; Tel: [41] (61) 280-8080; Fax: [41] (61) 280-9100; http://www.bis.org.

bank guarantee

(banking) Unilateral contract between a bank as guarantor and a beneficiary as warrantee in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other specified event resulting in a default fails to take place. See letter of credit.

bank holding company

(banking) Any company which directly or indirectly owns or controls, with power to vote, more than five percent of voting shares of each of one or more other banks.

bank holiday

(banking) A day on which banks are closed.

bank note

(banking) Paper issued by the central bank, redeemable as money and considered to be full legal tender.

bank note rate

(banking/foreign exchange) Exchange rate used in bank note dealing.

bank release

(banking) A document issued by a bank, after it has been paid or given an acceptance, giving authority to a person to take delivery of goods.

bankruptcy

(law) (a) The status of an individual or legal entity who does not have the financial resources needed to pay debts as they come due. (b) The legal proceedings for declaring bankruptcy and discharging or restructuring debts. Laws related to these proceedings vary greatly among different countries. In the United States, bankruptcy proceedings are brought before bankruptcy courts. In some countries, a bankruptcy is dealt with through administrative agencies and a bankrupt person must first attempt to make a composition with creditors. See composition with creditors.

Bank Wire Service

(banking) A private wire service linking over 250 banks through the facilities of Western Union. This service serves as a message system for transfer of funds and information for the member banks.

banque d'affaires

(banking) A French bank involved in long-term financing and in the ownership of companies, usually industrial firms. Synonymous with merchant bank.

bareboat charter

(shipping) A charter of a vessel where the charter party has the right to use his own master and crew on the vessel.

barge

(shipping) A flat bottomed inland cargo vessel with or without propulsion usually used on rivers and canals.

barratry

(shipping) The willful misconduct of ship's master or crew including theft, intentional casting away of vessel, or any breach of trust with dishonest intent.

barter

The direct exchange of goods for other goods without the use of money as a medium of exchange and without the involvement of a third party. See also countertrade.

Basel Convention

The Basel Convention restricts trade in hazardous waste, some non-hazardous wastes, solid wastes and incinerator ash. It was adopted in 1989 by a United Nations-sponsored conference of 116 nations in Basel, Switzerland. Twenty nations must ratify the treaty before it goes into effect.

basing point

(shipping) A point (location) which is used in constructing through rates between other points.

basing rate

(shipping) A rate used only for the purpose of constructing other rates.

basket of currencies

(banking/foreign exchange) A means of establishing value for a composite unit consisting of the currencies of designated nations. Each currency is represented in proportion to its value in relation to the total. The European Currency Unit, for example, is a weighted average of the currencies of the European Community member nations, used as a unit of value in transactions among businesses in the member countries. See European Currency Unit.

battens

(shipping) The protruding fixtures of the inside walls of a vessel's hold which keep cargo away from the walls of the vessel, or to fasten the cargo to the walls of the vessel.

bearer

(general) The person in possession.

(banking/finance/law/shipping) A person who possesses a bearer document and who is entitled to payment of funds or transfer of title to property on presentation of the document to the payee or transferor. A buyer, for example, who presents bearer documents of title (such as a bill of lading) to a shipper that transported the goods is entitled to receive the shipment. A seller who presents to a bank a negotiable instrument, such as a check, that is payable to the bearer is entitled to payment of the funds. See bearer document; endorsement.

bearer document

(banking/finance/law/shipping) A negotiable instrument, commercial paper, document of title, or security that is issued payable or transferable on demand to the individual who holds the instrument, or one that is endorsed in blank. A bearer document authorizes the payment of funds or the transfer of property to the bearer when the bearer presents the document to the person, such as a bank or a shipper, that is holding the funds or property. See bearer; endorsement.

bearer instrument

See bearer document.

Beggar-Thy-Neighbor Policy

(economics) A course of action through which a country tries to reduce unemployment and increase domestic output by raising tariffs and instituting non-tariff barriers that impede imports, or by accomplishing the same objective through competitive devaluation. Countries that pursued such policies in the early 1930's found that other countries retaliated by raising their own barriers against imports, which, by reducing export markets, tended to worsen the economic difficulties that precipitated the initial protectionist action. The Smoot-Hawley Tariff Act of 1930 is often cited as a conspicuous example of this approach.

Belgium, Netherlands, Luxembourg Economic Union (BENELUX)

A cooperative organization formed by Belgium, The Netherlands and Luxembourg to encourage economic activity among the three nations. It has eight committees addressing such areas as economic relations, agriculture, commerce, industry, customs and social affairs. Address: BENELUX, 39 rue de la Régence, 1000 Brussels, Belgium; Tel: [32] (2) 519-38-11; Fax: [32] (2) 513-42-06.

belly pits or holds

(shipping) Compartments located beneath the cabin of an aircraft and used for the carriage of cargo and passenger baggage.

beneficiary

(banking/letter of credit) The individual or company in whose favor a letter of credit is opened.

(insurance) The person or legal entity named to receive the proceeds or benefits of an insurance policy.

BENELUX

See Belgium, Netherlands, Luxembourg Economic Union.

Berne Convention for the Protection of Literary and Artistic Works

Formal name: The International Union for the Protection of Literary and Artistic Works. Also called the Berne Union. A part of the World Intellectual Property Organization. An international agreement that was concluded in Berne, Switzerland, by representatives of participating countries which provides copyright, patent, trademark and other intellectual property protection to countries that are signatories to the convention. See World Intellectual Property Organization; copyright; patent; trademark; service mark.

berth

(shipping) The place beside a wharf, pier or quay where a vessel is secured and can be loaded or unloaded of its cargo.

Besloten Vennootschap met Beperkte Aansprakelijkheid (B.V.B.A.)

(Belgium/Netherlands) Designation for a private limited liability corporation with limited liability to shareholders.

bid bond

Guarantee established in connection with international tenders. Guarantees fulfillment of the offer, i.e. that the contract will be signed if awarded. See bond; tender.

bilateral investment treaty (BIT)

(foreign investment) A treaty between two countries with the goals of ensuring investments abroad of national or most favored nation treatment; prohibiting the imposition of performance requirements; and allowing the investor to engage top management in a foreign country without regard to nationality. BITs ensure the right to make investment-related transfers and guarantee that expropriation takes place only in accordance with accepted international law. BITs also guarantee access by an investing party to impartial and binding international arbitration for dispute settlement.

bilateral steel agreements

(trade agreement) Agreements between governments to reduce or eliminate state intervention--that is, domestic subsidies and market barriers, in the production and sale of steel. The U.S. has negotiated ten BSAs with major steel trading partners.

bilateral trade

(economics) The commerce between two countries.

bilateral trade agreement

A formal or informal agreement involving commerce between two countries. Such agreements sometimes list the quantities of specific goods that may be exchanged between participating countries within a given period.

bill

(law) (a) A written statement of contract terms. (b) A listing of items in a transaction or demand. (c) A promissory obligation for the payment of money. (d) An account for goods sold, services, rendered, or work completed.

See bill of . . .; bill of lading.

billed weight

(shipping) The weight shown in a waybill or freight bill.

billing third party

(shipping) The invoicing of transportation charges to other than shipper or consignee.

bill of adventure

(law) A written certificate used if goods are shipped under the name of a merchant, shipmaster, or shipowner. It certifies that the property and risk in the goods belong to a person other than the shipper and that the shipper is accountable to that other person for only the proceeds.

bill of credit

(law) A written statement, commonly used by business travelers, given by one individual or legal entity to another, to authorize the recipient to receive or collect money from a foreign correspondent, such as a bank in the recipient's country. See also letter of credit.

bill of exchange

(banking) An unconditional order in writing, signed by a person (drawer) such as a buyer, and addressed to another person (drawee), typically a bank, ordering the drawee to pay a stated sum of money to yet another person (payee), often a seller, on demand or at a fixed or determinable future time.

The most common versions of a bill of exchange are:

(a) A draft, wherein the drawer instructs the drawee to pay a certain amount to a named person, usually in payment for the transfer of goods or services. Sight drafts are payable when presented. Time drafts (also called usance drafts) are payable at a future fixed (specific) date or determinable (30, 60, 90 days etc.) date. Time drafts are used as a financing tool (as with Documents against Acceptance, D/A terms) to give the buyer time to pay for his purchase.

(b) A promissory note, wherein the issuer promises to pay a certain amount.

bill of health

(general) A certificate issued by port or customs authorities attesting to the health of the crew and passengers of a vessel or airplane upon arrival or departure from the port.

(a) A clean bill of health is issued by authorities when no contagious disease(s) has been found,

(b) A suspected bill of health is issued when no contagious disease(s) has been found, but authorities fear that one may develop, and

(c) A foul bill of health is issued when a contagious disease has been found.

In the cases of issuance of a suspected bill of health or a foul bill of health, the vessel, airplane, or its passengers must enter a quarantine. See quarantine.

bill of lading

(shipping) A document issued by a carrier to a shipper, signed by the captain, agent, or owner of a vessel, furnishing written evidence regarding receipt of the goods (cargo), the conditions on which transportation is made (contract of carriage), and the engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading.

A bill of lading is, therefore, both a receipt for merchandise and a contract to deliver it as freight. There are a number of different types of bills of lading.

(a) A straight bill of lading indicates that the shipper will deliver the goods to the consignee. The document itself does not give title to the goods (non-negotiable). The consignee need only identify himself to claim the goods. A straight bill of lading is often used when payment for the goods has been made in advance.

(b) A shipper's order bill of lading is a title document to the goods, issued "to the order of" a party, usually the shipper, whose endorsement is required to effect its negotiation. Because it is negotiable, a shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is commonly used for letter-of-credit transactions. The buyer usually needs the original or a copy as proof of ownership to take possession of the goods.

(c) An air waybill is a form of bill of lading used for the air transport of goods and is not negotiable. See air waybill for a fuller explanation.

(d) A clean bill of lading is a bill of lading where the carrier has noted that the merchandise has been received in apparent good condition (no apparent damage, loss, etc.) and which does not bear such notations as "Shipper's Load and Count," etc.

(e) A claused bill of lading is a bill of lading which contains notations which specify deficient condition(s) of the goods and/or packaging.

bill of parcels

(law) A statement that lists the descriptions and prices of goods in a parcel and that is sent to the buyer with the goods. This bill is often referred to as a packing slip.

bill of sale

(law) A written document by which an individual or legal entity assigns or transfers title to goods to another.

bill of sight

(U.S. Customs) A document used by U.S. Customs that permits a consignee of goods to see them before paying duties.

bill-to party

(shipping) Refers to the party designated on a bill of lading as the one responsible for payment of the freight charges; this can be the shipper, freight forwarder, consignee, or another person.

binder

(insurance) A document certifying temporary insurance coverage. A binder is issued by an insurance company or its agent pending the issuance of an insurance policy.

binding decisions

(U.S. Customs) A binding tariff classification ruling (decision), which can be relied upon for placing or accepting orders or for making other business determinations. May be obtained by writing to a local Customs district director or to the Area Director of Customs, New York Seaport, 6 World Trade Center, New York, NY 10048. The rulings will be binding at all ports of entry unless revoked by the Customs Service's Office of Regulations and Rulings. Note that while the port and district offices of Customs are, for many purposes, your best sources of information, informal information obtained on tariff classification is not binding.

biological agents

A biologically active material. Several classes of biological agents have been identified according to their degree of pathogenic hazard, and are unilaterally controlled by various governments. In the United States applications to export certain biological agents are referred to the Department of State and the intelligence community on a case-by-case basis.

biomedical materials

(shipping) Items that can cause human disease (infectious/etiological agent). (UN CLASS 6) Examples are live virus vaccines and etiologic agents. Hazards/precautions are: may be ignited if carrier is flammable; contact may cause infection/disease; and damage to outer container may not affect inner container.

birr

The currency of Ethiopia. 1Br (or 1E$)=100 cents.

black market

Buying or selling of products and commodities, or engaging in exchange of foreign currencies in violation of government restrictions.

blank endorsement

(law/banking/shipping) The signature or endorsement of a person or firm on any negotiable instrument (such as a check, draft or bill of lading), usually on the reverse of the document, without designating another person to whom the endorsement is made. The document therefore becomes bearer paper. In shipping, for example, the holder of a blank endorsed bill of lading can take possession of the merchandise. See endorsement; bearer document.

blanket rate

(shipping) (a) A rate applicable from and/or to a group of points; (b) A special single rate applicable to different articles in a single shipment.

blockade

The act of preventing commercial exchange with a country or port, usually during wartime, by physically preventing carriers from entering a specific port or nation. See also embargo.

blocking or bracing

(shipping) Wood or metal supports to keep shipments in place in or on containers.

board foot (fbm, BF, bd ft)

(measurement) A unit of measurement used for lumber. One board foot is 12 inches by 12 inches by 1 inch, or one square foot of lumber one inch thick.

bolivar

The currency of Venezuela. 1B=100 centimos.

boliviano

The currency of Bolivia. 1$b=100 centavos.

bona fide

(law) In or with good faith, honesty and sincerity. A bona fide purchaser, for example, is one who buys goods for value and without knowledge of fraud or unfair dealing in the transaction. Knowledge of fraud or unfair dealing may be implied if the facts are such that the purchaser should have reasonably known that the transaction involved deceit, such as when goods that are susceptible to copyright piracy are provided without product documentation as to their origin.

bond

(general) An interest-bearing certificate of debt, usually issued in series, by which the issuer obligates itself to pay the principal amount at a specified time and to pay interest periodically,

(banking) An instrument used as proof of a debt.

(finance) The obligation to answer for the debt of another person.

(insurance) A contract between a principal and a surety (insurance company or their agent) which is obtained to insure performance of an obligation (often imposed by law or regulation).

(U.S. Customs) A bond required by the federal government in connection with the payment of duties or to produce documentation. U.S. Customs entries must be accompanied by evidence that a surety bond is posted with Customs to cover any potential duties, taxes and penalties which may accrue. Bonds may be secured through a resident U.S. surety company, but may also be posted in the form of United States money or certain United States government obligations. In the event that a customs broker is employed for the purpose of making entry, the broker may permit the use of his or her bond to provide the required coverage. See bond system; surety; in bond.

bonded

(U.S. Customs) Goods stored under supervision of customs until the import duties are paid or the goods are exported.

bonded exchange

(foreign exchange) Foreign exchange which cannot be freely converted into other currencies. See foreign exchange.

bonded stores

(customs) A place (usually a secured storeroom) on a vessel or airplane where non-customs entered goods are placed under seal until the vessel leaves the port or country.

bonded terminal

(customs) An airline terminal approved by the U.S. Treasury Department for storage of goods until Customs duties are paid or the goods are otherwise properly released.

bonded warehouse

(U.S. Customs) A warehouse owned by persons approved by the Treasury Department, and under bond or guarantee for the strict observance of the revenue laws of the United States; utilized for storing goods until duties are paid or goods are otherwise properly released. Payment of customs duties is deferred until the goods enter the Customs Territory of the United States. The goods are not subject to duties if reshipped to foreign points. See bond; in bond.

bond of indemnity

(shipping) An agreement made with a carrier relieving it from liability for any action on its part for which it would otherwise be liable.

bond system

(U.S. Customs) A part of the U.S. Customs' Automated Commercial System, provides information on bond coverage. A Customs bond is a contract between a principal, usually an importer, and a surety which is obtained to insure performance of an obligation imposed by law or regulation. The bond covers potential loss of duties, taxes, and penalties for specific types of transactions. Customs is the contract beneficiary. See Automated Commercial System.

booking

(shipping) The act of recording arrangements for the movement of goods by vessel.

bordereau

(insurance) (a) A method of reporting shipments to an insurance company under an open insurance policy. (b) An insurance form, similar to a declaration, which provides for insurance coverage of multiple shipments within a prescribed reporting period, usually a month.

This form calls for the name of the vessel and sailing date, points of shipment and destination, nature of commodity, the amount of insurance desired, and the number of the open policy under which the shipment is made. The bordereau form is prepared by the assured and is forwarded within a prescribed reporting period, usually monthly. The forms are forwarded to the insurance agent or broker for transmission to the insurance company. The premium is billed monthly in accordance with the schedule of rates provided by the policy.

The bordereau is generally not used in cases where evidence of insurance must be supplied to a customer, to banks or to other third parties in order to permit collection of claims abroad. This calls for a special marine policy, occasionally referred to as a certificate. The bordereau, therefore, is mainly used for import shipments, not export shipments.

See special marine policy. See also declaration.

bounties or grants

Payments by governments to producers of goods, often to strengthen their competitive position.

bow

(shipping) The front of a vessel.

box

(shipping) Colloquial term referring to a trailer, semi-trailer or container.

box car

(shipping) A closed freight car.

boycott

A refusal to deal commercially or otherwise with a person, firm or country.

breakage

(a) A monetary allowance or credit that a manufacturer agrees to give a buyer to compensate for damage caused to goods during transit or storage. (b) A fractional amount due as part of a payment to a party, such as pennies that result from a computation of interest on a loan or deposit.

breakbulk

(shipping) To unload and distribute a portion or all of the contents of a consolidated shipment for delivery or reconsignment.

breakbulk cargo

(shipping) Cargo which is shipped as a unit but which is not containerized. Examples are any unitized cargo placed on pallets, or in boxes.

breakbulk vessel

(shipping) A general cargo vessel designed to efficiently handle breakbulk loads. Breakbulk cargo vessels are usually self-sustaining in that they have their own loading and unloading machinery.

break-even point

(banking/foreign exchange) The price of a financial instrument at which the option buyer recovers the premium, meaning that he makes neither a loss nor a gain. In the case of a call option, the break-even point is the exercise price plus the premium, and in the case of a put option, the exercise price minus the premium. See option; call option; put option.

Bretton-Woods Agreement of 1944

(banking/foreign exchange) Articles of agreement adopted by the international monetary conference of 44 nations which met at Bretton Woods, New Hampshire. The International Monetary Fund and the International Bank for Reconstruction and Development were created as a result of this agreement. The Fund's major responsibility is to maintain orderly currency practices in international trade, while the Bank's function is to facilitate extension of long-term investments for productive purposes. Periodic meetings are held at Bretton Woods to amend the original agreement.

See Bretton-Woods System; International Monetary Fund; International Bank for Reconstruction and Development.

Bretton-Woods System

(banking/foreign exchange) A system of fixed exchange rates with fluctuation grids, in which every member of the International Monetary Fund (IMF) sets a specific parity for its currency relative to gold or the dollar, and undertaking to keep fluctuations within 1% of parity by central bank market interventions.

See Bretton-Woods Agreement of 1944; International Monetary Fund; International Bank for Reconstruction and Development.

bribe

A payment resulting in the payer's receiving some right, benefit, or preference to which he has no legal right and which he would not have obtained except with the payment of the money. A bribe is a criminal offense. See Foreign Corrupt Practices Act.

British High Commission (BHC)

(diplomacy) The term British High Commission (BHC, or High Commission, HC, or Her Majesty's High Commission, HMHC) is used in lieu of "embassy" in Commonwealth countries.

broken cross rates; triangular arbitrage

(banking/foreign exchange) A forward foreign exchange arrangement which is not for a standard maturity period. Standard periods are: 1 week; 2 weeks; 1, 2, 3, 6 and 12 months.

(banking/foreign exchange) In foreign exchange, disparity among three or more rates; e.g., if DM 1=30 cents and FF 1.5 while FF 1=22 cents, a Deutschmark will bring 30 cents if converted directly but 33 cents if converted first into francs and then into dollars.

broker

An individual or firm that acts as an intermediary, often between a buyer and seller, usually for a commission. Often an agent.

(a) Customs broker--An individual or firm licensed to enter and clear goods through Customs for another individual or firm. See customs broker.

(b) Insurance broker--An individual or firm which acts as an intermediary between an insurance company and the insured. See insurance broker.

brokerage license, domestic

(U.S.) Authority granted by the U.S. Interstate Commerce Commission to persons to engage in the business of arranging for transportation of persons or property in interstate commerce.

Brussels Tariff Nomenclature

(customs) A once widely used international tariff classification system which preceded the Customs Cooperation Council Nomenclature (CCCN) and the Harmonized System Nomenclature (HS). See Harmonized Tariff Schedule; Customs Cooperation Council Nomenclature.

bulk cargo

(shipping) Cargo that consists entirely of one commodity and is usually shipped without packaging. Examples of bulk cargo are grain, ore and oil.

bulk carrier

(shipping) A vessel specifically designed to transport bulk cargo. There are two types of bulk carriers: those designed to transport dry bulk cargo such as grain or ore, and those designed to transport liquid bulk cargo such as oil.

bulk freight

(shipping) Freight not in packages or containers. For example: grain, ore, timber.

bulkhead

(shipping) (a) A partition separating one part of a ship between decks from another. (b) A structure to resist the pressure of earth or water.

bulk liquids

(shipping) Liquid cargo shipped in intermodal tank containers.

bulk sale or transfer

(law) A transfer of substantially all of the inventory or property of an enterprise to one individual or legal entity in a single transaction not in the ordinary course of the business of the enterprise. In some countries, bulk sales and transfers are regulated by law in an effort to reduce the potential for defrauding creditors through this type of transaction.

bulk solids

(shipping) Dry cargo shipped loose in containers.

Bundesbank

(banking) Established in 1875, the central bank of Germany, located in Frankfurt.

bunker

(shipping) A compartment on a ship for storage of fuel.

bunker adjustment factor (BAF)

(shipping) An adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel.

bunker charge

See bunker adjustment factor.

bunker fuel

(shipping) The fuel used to power a ship.

Bureau of Alcohol, Tobacco and Firearms (ATF)

(U.S. government) An agency of the U.S. Department of Treasury, the ATF regulates the alcohol, firearms and explosives industry, ensures the collection of federal taxes imposed on alcohol and tobacco, investigates violations of federal firearms, explosives and tobacco laws. Address: Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury, 650 Massachusetts Ave. NW, Washington, DC 20226; Tel: (202) 927-7777; http://www.atf.treas.gov.

Bureau of Customs

See United States Customs Service.

Bureau of Export Administration

(U.S. government) Responsible for control of exports for reasons of national security, foreign policy and short supply. Licenses on controlled exports are issued and seminars on U.S. export regulations are held domestically and overseas. Address: Bureau of Export Administration, Office of Public Affairs, Room 3897, 14th Street and Constitution Avenue NW, Washington, DC 20226; Tel: (202) 482-2721; http://www.bxa.doc.gov.

Bureau of International Expositions

An international organization established by the Paris Convention of 1928 to regulate the conduct and scheduling of international expositions in which foreign nations are officially invited to participate. The BIE divides international expositions into different categories and types and requires each member nation to observe specified minimum time intervals in scheduling each of these categories and types of operations. Under BIE rules, member nations may not ordinarily participate in an international exposition unless the exposition has been approved by the BIE. The U.S. became a member of the BIE in April 1968. Federal participation in a recognized international exposition requires specific authorization by the Congress, based on the President's finding that participation is in the national interest.

Business Executive Enforcement Team

(U.S. government) A channel for private sector U.S. business executives to discuss export control enforcement matters with the Bureau of Export Administration. See Bureau of Export Administration.

Buy American acts

U.S. federal and state government statutes that give a preference to U.S. produced goods in government contracts. These statutes are designed to protect domestic industry and labor, but tend to increase the price paid for goods and services government agencies buy. See also non-tariff barriers or measures; trade barriers.

buyback

(economics) A form of countertrade that involves the exportation of technological know-how, specialized machinery and the construction of an entire factory in exchange for a set percentage of the factory's production over a five to twenty-five year period. Buyback is also known as compensation trading. See countertrade.

buying rate (bid rate)

(banking/foreign exchange) Rate at which a bank is prepared to buy foreign exchange or to accept deposits. The opposite of selling (or asked) rate.