(shipping) Coast-wide water transportation, navigation or trade between ports of a nation. Many nations, like the U.S., have cabotage laws which require domestic owned vessels to perform domestic interport water transportation service.

Cairns Group

An informal association of agricultural exporting countries established in August 1986. Members include: Argentina, Australia, Brazil, Canada, Chile, Colombia, Hungary, Indonesia, Malaysia, New Zealand, Philippines, Thailand and Uruguay. Address: Cairns Group, c/o Department of Foreign Affairs and Trade, Bag 8, Queen Victoria Terrace, Canberra, ACT 2600, Australia.

call

(banking) A demand of payment on a loan, often as a result of non-compliance on the part of the borrower to the terms and conditions of the loan.

call in a contract

(law) (a) Demanding payment on a contract. A seller, for example, may be entitled under the contract terms to demand payment at the time the goods are ready to ship. (b) Submitting a formal, usually written, notice to collect payment on a contract. A seller who has not received payment, for example, may send a written letter to the buyer demanding remittance of the funds owed--that is calling in the contract.

call money

(banking/finance/foreign exchange) Currency lent by banks on a very short-term basis, which can be called the same day, at one day's notice or at two days' notice. Called overnight money in Great Britain and Federal funds in the United States.

call option

(banking/finance/foreign exchange) The right (but not the obligation) to buy a fixed amount of a commodity, security or currency from the option writer (option seller) at a predetermined rate and/or exercise price within a specified time limit. See option; put option; American Option; European Option.

Calvo Doctrine

(foreign investment) The Calvo Doctrine (or principle) holds that jurisdiction in international investment disputes lies with the country in which the investment is located; thus, the investor has no recourse but to use the local courts. The principle, named after an Argentinian jurist, has been applied throughout Latin America and other areas of the world.

Canadian Commercial Corporation

(Canada) The prime contractor in government-to-government sales transactions, facilitating exports of a wide range of goods and services from Canadian sources. In response to requests from foreign governments and international agencies for individual products or services, CCC identifies Canadian firms capable of meeting the customer's requirements, executes prime as well as back-to-back contracts, and follows through with contract management, inspection, acceptance, and payment. Address: Canadian Commercial Corporation (CCC), Metropolitan Centre, 11th Floor, 50 O'Connor St., Ottawa, ON K1A 0S6, Canada; Tel: [1] (613) 996-0034; Fax: [1] (613) 995-2121; http://vvv.com/viatec/ccc.htm.

cap

(banking/finance/foreign exchange) On borrowed funds with an interest rate which is tied to the market rate, an upside limit or cap can be agreed upon, i.e. against payment of a premium, an upper interest rate limit is agreed upon, which will not be exceeded even if the market rate rises above the stated level.

capacity to contract

(law) Legal competency to make a contract. A party has capacity to contract if he or she has attained the age required by law and has the mental ability to understand the nature of contract obligations.

capital account

(economics) Juxtaposition of the long and short-term capital imports and exports of a country. See balance of payments.

capital flight

(economics) The transfer of money or other financial resources from one country to another as a hedge against inflation or poor economic or political conditions.

capital goods

(economics) Manufactured goods that are for productive industrial use. For example: machine tools. See also consumer goods.

capital market

(finance) The market for buying and selling long-term loanable funds, in the form of bonds, mortgages and the like. Unlike the money market, where short-term funds are traded, the capital market tends to center on well-organized institutions such as the stock exchange. However, there is no clear-cut distinction between the two other than that capital market loans are generally used by businesses, financial institutions and governments to buy capital goods whereas money-market loans generally fill a temporary need for working capital.

capital movements

(economics) (a) The international payments of a nation. (b) A nation's short and long-term claims and liabilities, which are entered into vis-a-vis foreign countries, including repayment of foreign debt, direct investments, portfolio investments and purchase of private real estate.

captain's protest

(shipping) A document prepared by the captain of a vessel on arrival at port, showing unusual conditions encountered during voyage. Generally, a captain's protest is prepared to relieve the ship owner of any liability for any loss to cargo, thus requiring cargo owners to look to insurance companies for reimbursement.

cargo

(shipping) Merchandise hauled by transportation lines.

cargo agent

(shipping) An agent appointed by an airline or shipping line to solicit and process international air and ocean freight for shipments. Cargo agents are paid commissions by the airline or shipping line.

cargo aircraft

See all-cargo aircraft.

cargo manifest

(shipping) A list of a ship's cargo or passengers, but without a listing of charges.

cargo, N.O.S.

(shipping) Articles not otherwise specifically provided for. In determining the freight rate, a general category of articles for shipment.

cargo selectivity system

(U.S. Customs) A part of U.S. Customs' Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments of risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper. See Automated Commercial System.

cargo tonnage

(shipping) The weight of a shipment or of a ship's total cargo expressed in tons.

Caribbean Basin Economic Recovery Act (CBERA)

(U.S.) The CBERA affords nonreciprocal tariff preferences by the United States to developing countries in the Caribbean Basin area to aid their economic development and to diversify and expand their production and exports. The CBERA applies to merchandise entered, or withdrawn from warehouse for consumption, on or after January 1, 1984. This tariff preference program has no expiration date. See Caribbean Basin Initiative.

Caribbean Basin Initiative (CBI)

(U.S.) A program providing for the duty-free entry into the United States of merchandise from designated beneficiary countries or territories in the Caribbean Basin.

This program was enacted by the United States as the Caribbean Basin Economic Recovery Act and became effective January 1, 1984.

The purpose of the program is to increase economic aid and trade preferences for twenty-eight states of the Caribbean region. The Caribbean Basin Economic Recovery Act provided for twelve years of duty-free treatment of most goods produced in the Caribbean region. The Initiative was extended permanently (CBI II), by the Customs and Trade Act of August 1990. The 23 countries include Antigua and Barbuda, the Bahamas, Barbados, Belize, the British Virgin Islands, Costa Rica, Dominica, the Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Honduras, Jamaica, Montserrat, the Netherlands Antilles, Nicaragua, Panama, St. Christopher-Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago. The following countries may be eligible for CBI benefits but have not formally requested designation: Anguilla, Cayman Islands, Suriname, and the Turks and Caicos Islands.

Caribbean Common Market (CARICOM)

A regional trade alliance composed of 13 English speaking Caribbean nations. Its purpose is to further economic development and increase social and cultural cooperation among member nations. Members include Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago). Address: Caribbean Common Market, Bank of Guyana Building, PO Box 10827, Georgetown, Guyana; Tel: [592] (2) 69-281; Telex: 2263; Fax: [592] (2) 66-091.

carnet

(customs) A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds. See ATA Carnet.

carriage and insurance paid to ...

(named port of destination)

(Incoterm) "Carriage and insurance paid to ..." (CIP) means that the seller has the same obligations as under CPT (carriage paid to), but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is only required to obtain insurance on minimum coverage. The CIP term requires the seller to clear the goods for export. This term may be used for any mode of transport including multimodal transport.

See Incoterms 1990 for a list of the thirteen Incoterms 1990; insurable interest.

Carriage of Goods by Sea Act of 1936

(shipping) A U.S. law which, among other provisions, establishes statutory responsibility for the carrier's liability for certain types of damage. Where the COGSA applies, general speaking, the vessel or carrier is responsible for damage resulting from negligence in the loading, stowing and discharge of cargo. It is not responsible for damage resulting from errors of navigation or management of the ship, from unseaworthiness of the vessel (unless caused by lack of due diligence to make it seaworthy), or from perils of the sea, fire, and a number of other listed causes. The burden of proof in establishing fault will rest at times upon the shipper and at times upon the carrier.

The degree to which a steamship company can be held responsible for damage sustained by a specific shipment is frequently difficult to determine. COGSA applies to import and export shipments and, by agreement, to much U.S. coastwise and intercoastal business a well.

carriage paid to ... (named port of destination)

(Incoterm) "Carriage paid to ..." (CPT) means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.

"Carrier" means any person who, in contract of carriage, undertakes to perform or to procure the performance of carriage, by rail, road, sea, air, inland waterway or by a combination of such modes.

If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.

The CPT term requires the seller to clear the goods for export.

This term may be used for any mode of transport including multimodal transport.

See Incoterms 1990 for a list of the thirteen Incoterms 1990.

carrier

(law/shipping) An individual or legal entity that is in the business of transporting passengers or goods for hire. Shipping lines, airlines, trucking companies and railroad companies are all carriers.

(a) A common carrier is one that by law must convey passengers or goods without refusal, provided the party requesting conveyance has paid the charge for transport.

(b) A private or contract carrier is one that transports only those persons or goods that it selects.

(U.S. shipping) By U.S. government regulation a common carrier publishes stated rates for carriage and must accept any passengers or goods for transport so long as space is available and the published rate is paid.

carrier's certificate

(U.S. Customs) A document issued by a shipping company, addressed to a District Director of Customs, which certifies that a named individual is the owner or consignee of the articles listed in the certificate. This document is often the "evidence of right to make entry" required by U.S. Customs for an individual to clear goods through Customs. See also evidence of right to make entry.

cartage agent

(shipping) A ground service operator who provides pickup and delivery of freight in areas not served directly by an air or ocean carrier.

cartage/drayage

(shipping) The local transport of goods. Also the charge(s) made for hauling freight on carts, drays or trucks.

cartel

An organization of independent producers formed to regulate the production, pricing, or marketing practices of its members in order to limit competition and maximize their market power.

casco

(insurance) Marine insurance coverage on the hull of a ship.

casus major

(law/shipping) A major casualty that is usually accidental, such as a flood or shipwreck.

catalog & video; catalog exhibitions

(U.S.) A U.S. International Trade Administration program promoting low-cost exhibits of U.S. firms' catalogs and videos, offering small, less-experienced companies an opportunity to test overseas markets for their products without travel. The International Trade Administration promotes exhibitions, provides staff fluent in the local language to answer questions, and forwards all trade leads to participating firms. Contact: Trade Fairs and Exhibitions; tel: 1 (800) USA-TRADE. See also International Trade Administration.

category groups

Groupings of controlled products. See export control classification number.

cause of action

(law) Facts that give a party a right to seek a judicial remedy against another individual or legal entity.

caveat emptor

(law) Latin for "Let the buyer beware." The purchaser buys at his own risk.

cedi

The currency of Ghana. 1¢=100 pesewas.

cell

(shipping) The on board stowage space for one shipping container on a ship

cells

(shipping) The modular construction system on board a cellular shipping vessel designed to allow containers to be stowed securely one on top of another with vertical bracing at the four corners.

cellular vessel

(shipping) A special use shipping vessel designed for the efficient stowage of ocean containers one on top of the other with vertical bracing at the four corners.

Census Interface System

(U.S. Customs) A part of U.S. Customs' Automated Commercial System, which includes edits and validations provided by the Bureau of the Census to allow for the accurate and timely collection and submission of entry summary data. Census Interface is accomplished through Automated Broker Interface entry summary transmissions. See Automated Commercial System.

Center for Trade and Investment Services

(U.S.) CTIS is the focal point in the Agency for International Development (AID) for the collection and dissemination of information on the agency's programs and activities that support international private enterprise in the developing countries where AID operates. CTIS is a full service, comprehensive "one-stop-shop" for information about AID's trade and investment programs and business opportunities in countries served by AID. The center's objective is to further economic development abroad by facilitating increased business activity between the private sectors of AID-assisted countries and the U.S. Address: Agency for International Development, G/EGAD/BD-Global Technology Network, 1300 Pennsylvania Avenue, Washington D.C. 20523; Tel: 1-800-USAID4U; Fax: (202) 216-3526; general AID information: http://www.info.usaid.gov; Global Network Technology: http://www.usgtn.org.

Central American Common Market

A regional trade alliance established in July 1991 comprised of Honduras, Guatemala, El Salvador, Nicaragua and Costa Rica. The common market covers all products traded within the region as of 1992. A second step toward regional integration will be the establishment of a common external tariff. Panama is becoming progressively more involved in the regional integration discussions. Address: Central American Common Market, 4A Avda 10-25, Zona 14, Apdo Postal 1237, 01901, Guatemala City, Guatemala; Tel: [502] (2) 682-151; Telex: 5676; Fax: [502] (2) 681-071.

central bank

(banking) The only institution which has the right to issue bank notes and which constitutes the monetary and credit policy authority of a currency zone. Apart from this, it supplies the economy with money and credit, regulates domestic and foreign payments transactions and maintains internal and external monetary stability.

certificate of analysis

A document issued by a recognized organization or governmental authority confirming the quality and composition of goods listed in the certificate. Certificates of analysis are often required by authorities in importing countries for animal and plant products for consumption and for pharmaceuticals. See certificate of inspection; phytosanitary inspection certificate.

certificate of inspection

A document certifying that merchandise (such as perishable goods) was in good condition at the time of inspection, usually immediately prior to shipment. Pre-shipment inspection is a requirement for importation of goods into many developing countries. Often used interchangeably with certificate of analysis. See phytosanatary inspection certificate; certificate of analysis.

certificate of insurance

See insurance certificate.

certificate of manufacture

A document (often notarized) in which a producer of goods certifies that the manufacturing has been completed and the goods are now at the disposal of the buyer.

certificate of origin

(customs) A document attesting to the country of origin of goods. A certificate of origin is often required by the customs authorities of a country as part of the entry process. Such certificates are usually obtained through an official or quasi official organization in the country of origin such as a consular office or local chamber of commerce. A certificate of origin may be required even though the commercial invoice contains the information.

Certificate of Origin Form A. A document required by customs in the United States and other developed countries to prove eligibility of merchandise under duty-free import programs such as the Generalized System of Preferences and the Caribbean Basin Initiative.

certificate of weight

(shipping) A document stating the weight of a shipment.

certification; legalization

Official certification of the authenticity of signatures or documents in connection with letter of credits, such as certificates or origin, commercial invoices, etc. by chambers of commerce, consulates and similar recognized government authorities.

Certified Trade Fair Program

(trade event) The U.S. Department of Commerce Certified Trade Fair Program is designed to encourage private organizations to recruit new-to-market and new-to-export U.S. firms to exhibit in trade fairs overseas. To receive certification, the organization must demonstrate: (1) the fair is a leading international trade event for an industry and (2) the fair organizer is capable of recruiting U.S. exhibitors and assisting them with freight forwarding, customs clearance, exhibit design and setup, public relations, and overall show promotion. The show organizer must agree to assist new-to-export exhibitors as well as small businesses interested in exporting.

In addition to the services the organizer provides, the Department of Commerce will:

(1) Assign a Washington coordinator.

(2) Operate a business information office, which provides meeting space, translators, hospitality, and assistance from U.S. exhibitors and foreign customers.

(3) Help contact buyers, agents, distributors, and other business leads and provide marketing assistance.

(4) Provide a press release on certification.

Contact the U.S. Department of Commerce, 14th St., 8 Constitution Ave. NW, Washington, DC 20230; Tel: (202) 482-2000.

See new-to-market; new-to-export.

Certified Trade Missions Program

(U.S.) (Former name: state/industry organized, government approved (S/IOGA)). The U.S. Department of Commerce, through its Certified Trade Missions Program, offers guidance and assistance to federal, state and local development agencies, chambers of commerce, industry trade associations, and other export-oriented groups that are interested in becoming more actively involved in export promotion. Certified Trade Missions open doors to government and business leaders in promising export markets around the world.

Once the sponsoring organization has selected the countries to be considered, proposed an itinerary, and outlined its mission goals and objectives, the Department of Commerce coordinates the mission itinerary with its commercial staff at U.S. embassies and consulates overseas. These posts help to arrange the mission's activities to make the most productive use of each member's time at each stop on the itinerary. Some missions also include informational or technical seminars specifically designed to exhibit and promote sales of sophisticated products, technology, or services in targeted markets. Address: Certified Trade Missions, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Room H2116, Washington, DC 20230; Tel: (202) 482-4908; Fax: (202) 482-0115.

cession of goods

(law) A surrender of goods. A relinquishment of a debtor's property to creditors when the debtor cannot pay his or her debts.

C&F

See cost and freight; Incoterms 1990.

chaebol

(Korea) Korean conglomerates which are characterized by strong family control, authoritarian management, and centralized decision making. Chaebol dominate the Korean economy, growing out of the takeover of the Japanese monopoly of the Korean economy following World War II. Korean government tax breaks and financial incentives emphasizing industrial reconstruction and exports provided continuing support to the growth of Chaebols during the 1970s and 1980s. In 1988, the output of the 30 largest chaebol represented almost 95% of Korea's gross national product.

chargeable weight

(shipping) The weight of a shipment used in determining air or ocean freight charges. The chargeable weight may be the dimensional weight or on container shipments the gross weight of the shipment less the tare weight of the container.

chargé d'affaires

(diplomacy) A subordinate diplomat who takes charge in the absence of the ambassador.

charges advanced

See advancement of charges.

charges collect

(shipping) The total transportation charges which may include pickup and/or delivery charges which are entered on the ocean or air waybill to be collected from the consignee. Equivalent terms are "freight collect" or "charges forward."

charter

(law) (a) An instrument issued by a government to the governed people, a specific part of the people, a corporation, a colony, or a dependency confirming or conferring described rights, liberties, or powers. (b) A legislative act that creates a business corporation or that creates and defines a corporate franchise.

(shipping) (a) A charter party or charter agreement is a lease or agreement to hire an airplane, vessel, or other means of conveyance to transport goods on a designated voyage to one or more locations. (b) A gross charter is a charter agreement by which the shipowner furnishes personnel and equipment and incurs other expenses, such as port costs. (c) A bareboat charter is a charter agreement under which an individual or legal entity charters a vessel without a crew, assumes full possession and control of the vessel, and is generally invested with temporary ownership powers.

chartered bank

(Canada) Financial institution licensed by the Canadian Parliament under the Bank Act to operate as a bank.

chartered ship

(shipping) A ship leased by its owner or agent for a stated time, voyage or voyages.

charter party bill of lading

(shipping) A bill of lading issued by a charter party. Charter party bills of lading are not acceptable by banks under letters of credit unless they are specifically authorized in the credit. See bill of lading.

charter party contract

(shipping) Contract according to which the precisely designated freight room of a ship or the whole ship is leased by the owner to a charterer for a specific period, specific voyage or voyages. If a ship is chartered without crew this is a bare boat charter. The freight documents issued by the current charterer or his authorized party are called charter party bills of lading.

charter service

(shipping) The temporary hiring of an aircraft, usually on a trip basis, for the movement of cargo or passengers.

chassis

(shipping) A special trailer or undercarriage on which containers are moved over the road. Chassis comes in skeletal types, parallel frame, perimeter frame and goose neck types, among others.

chattel

(law) An item of personal property.

chattel lien

(law) A lien on chattel in favor of a person who has expended labor, skill, or materials on the chattel or has furnished storage for it at the request of the owner, an agent, or a party who legally possesses it.

chattel paper

(law) A writing or a group of writings that constitute a security interest in, or a lease of, specific goods for a monetary obligation.

check digit number

(shipping) A single digit of an air waybill number used to insure that the air waybill number is correctly entered into a computer system.

chemical/biological weapons

(U.S.) The Department of Commerce maintains foreign policy export controls on certain chemical precursors useful in chemical warfare. Through the Australia Group (AG), the United States cooperates with other nations in controlling chemical weapons proliferation. The AG has developed a Core List of nine chemicals (not to be confused with the Coordinating Committee on Multilateral Export Controls (CoCom) "Core List") considered essential to the development of chemical weapons. The AG also developed a Warning List which identifies 41 precursors which are useful for chemical weapons development. The AG also provides the forum in which the member countries share information concerning the activities of non-member countries where the proliferation of these weapons is of concern, including entities that are seeking chemical precursors and related items.

The United States controls all 50 chemical precursors designated by the AG as useful in chemical weapons production. The nine core list chemicals are controlled worldwide, except to the members of the AG and NATO. The remaining 41 chemicals are controlled to selected countries.

The U.S. also maintains unilateral controls on certain biological organisms and requires an individual validated license to all destinations except Canada. U.S. Department of Commerce regulations are designed in the form of a "negative" list. The list identifies those organisms that have been determined to be of no or minimal level of hazard. Any organism that is not included on the list is controlled. The U.S. Department of Commerce requires individual validated licenses for the export of Class 2, 3, and 4 organisms to all destinations except Canada. (The higher the class, the greater the toxicity.) License applications are referred to the U.S. State Department for review and recommendation. Approval or denial is determined by analysis of the application and intelligence input.

See Australia Group.

chill a sale

(law) Combining or conspiring (of buyers or bidders) to suppress competition at a sale, in order to acquire property at less than fair value.

chose in action

See thing in action.

China green line

The China green line describes the level of technology below which a Coordinating Committee on Multilateral Export Controls (CoCom) member country can unilaterally approve an export license application requiring only notification to CoCom in Paris. This level of technology is individually defined in notes to the Core List. The China green line is a substantially higher level of technology than the CoCom AEN level. See Coordinating Committee on Multilateral Export Controls; core list.

CIF

See cost, insurance, freight; Incoterms 1990.

CIFCI

See cost, insurance, freight, commission and interest; Incoterms 1990.

CIM

(shipping) An internationally standardized freight document issued in rail transport. CIM stands for "Convention Internationale concernant le transport des Marchandises par chemin de fer." The agreement has been in force since January 1, 1965, and constitutes the legal basis for the conclusion of freight contracts in international rail goods transport using one freight document.

city bank

(Japan) A major Japanese commercial bank, located in a city, dealing with corporations and major accounts (as compared to a local bank).

city terminal service

(shipping) A service provided by some airlines to accept shipments at the terminals of their cartage agents or other designated intown terminals or to deliver shipments to these terminals at lower rates than those charged for the door-to-door pickup and delivery service.

Civil Aeronautics Board (CAB)

(U.S.) A U.S. Federal agency created by Congress in 1938 to promote the development of the U.S. air transport system, to award air routes, and to regulate passenger fares and cargo rates. Legislation passed by the U.S. Congress in 1978 terminated the CAB, effective January 1, 1985. Many of the CAB functions such as certificates, air carrier fitness, consumer protection, international rates and services were transferred to the U.S. Department of Transportation (DOT). See U.S. Department of Transportation.

civil law

(law) A body of law created by statutes and other enactments of legislatures and by rules and regulations adopted to give effect to those statutes and enactments. See also common law.

claim

(shipping) A demand made upon a transportation line for payment on account of a loss sustained through its negligence.

(insurance) A demand made upon an insurance company for payment on account of an insured loss.

claim tracer

(shipping) A request for an advice concerning the status of a claim.

classification

(general) The categorization of merchandise.

(shipping) The assignment of a category to a specific cargo for the purpose of applying class rates, together with governing rules and regulations.

(U.S. Customs) The categorization of merchandise according to the Harmonized Tariff Schedule of the United States (HTS or HTSUS). Classification affects the duty status of imported merchandise.

Classification and valuation of imported merchandise must be provided by commercial importers when an entry is filed. In addition, classification under the statistical suffixes of the tariff schedules must also be furnished even though this information is not pertinent to duitable status. Accordingly, classification is initially the responsibility of an importer, customs broker or other person preparing the entry papers. See Harmonized Tariff Schedule of the United States. See also valuation.

class or kind (of merchandise)

(customs) A term used in defining the scope of an antidumping investigation. Included in the "class or kind" of merchandize is merchandise sold in the home market which is "such or similar" to the petitioned product. "Such or similar" merchandise is that merchandise which is identical to or like the petitioned product in physical characteristics. See dumping.

claused bill of lading

(shipping) Notations on bills of lading which specify deficient condition(s) of the goods and/or the packaging. See bill of lading.

clean bill of exchange

(banking) A bill of exchange having no other documents, such as a bill of lading affixed to it.

clean bill of lading

(shipping) A bill of lading receipted by the carrier for goods received in "apparent good order and condition," without damages or other irregularities, and without the notation "Shippers Load and Count."

clean collection

(banking) A collection in which the demand for payment (such as a draft) is presented without additional documents. See bill of exchange.

clean draft

(banking) A sight or time draft which has no other documents attached to it. This is to be distinguished from documentary draft. See bill of exchange.

clean letter of credit

(banking) A letter of credit against which the beneficiary of the credit may draw a bill of exchange without presentation of documents. See letter of credit.

clean on board bill of lading

(shipping) A document evidencing cargo laden aboard a vessel with no exceptions as to cargo condition or quantity.

clearance

(customs) The completion of customs entry formalities resulting in the release of goods from customs custody to the importer.

close corporation

See closely held corporation.

closed conference

(shipping) A shipping conference that reserves the right to refuse membership to applying carriers. See conference. See also carrier.

closed-end transaction

(finance) A credit transaction that has a fixed amount and time for repayment.

closely held corporation

(law) A corporation with a small number of shareholders, who usually directly operate the corporation and have limited liability. A maximum number of shareholders is usually fixed by law. The minimum capitalization for a closely held corporation is less than that for a public corporation, and fewer formalities are required for managing it. The requirements for closely held corporations vary among jurisdictions. See corporation.

coastal trade

(shipping) Trade between ports of one nation.

CoCom

See Coordinating Committee on Multilateral Export Controls.

Code of Federal Regulations (CFR)

(U.S. law) A compilation of the administrative rules adopted and followed by departments and agencies of the United States federal government. Copies of the CFR are available at major public libraries in the United States and for purchase from the Superintendent of Documents, U.S. Government Printing Office, 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.

codes of conduct

International instruments that indicate standards of behavior by nation states or multi-national corporations deemed desirable by the international community. Several codes of conduct were negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT) that liberalized and harmonized domestic measures that might impede trade, and these are considered legally binding for the countries that choose to adhere to them. Each of these codes is monitored by a special committee that meets under the auspices of GATT and encourages consultations and the settlement of disputes arising under the code. Countries that are not Contracting Parties to GATT may adhere to these codes. GATT Articles III through XXlll also contain commercial policy provisions that have been described as GATT's code of good conduct in trade matters. The United Nations has also encouraged the negotiation of several "voluntary" codes of conduct, including one that seeks to specify the rights and obligations of trans-national corporations and of governments. See General Agreement on Tariffs and Trade.

coin silver

Coin or "German" silver is an alloy of silver that is 800/1000 pure. An article of coin or German silver is often marked "800."

collar

(banking) An agreement to put upper and lower (cap and floor) limits on an interest rate which will be adhered to even if the market rate lies outside this range.

collect charges

(shipping) The transportation practice under which the receiver of the goods pays charges.

collecting bank

(banking) The bank that acts as agent for the seller and seller's bank in collecting payment or a time draft from the buyer to be forwarded to the remitting bank (usually the seller's bank).

collection

(general) The presentation for payment of an obligation and the payment thereof.

(banking) The receipt of money for presentation of a draft or check for payment at the bank on which it was drawn, or presentation of any item for deposit at the place at which it is payable.

collection endorsement

See endorsement.

collection papers

(banking) All documents (invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

See documents against payment; documents against acceptance.

collections system

(U.S. Customs) A part of U.S. Customs' Automated Commercial System, controls and accounts for the billions of dollars in payments collected by Customs each year and the millions in refunds processed each year. Daily statements are prepared for the automated brokers who select this service. The Collections System permits electronic payments of the related duties and taxes through the Automated Clearinghouse capability. Automated collections also meets the needs of the importing community through acceptance of electronic funds transfers for deferred tax bills and receipt of electronic payments from lockbox operations for Customs bills and fees. See Automated Commercial System.

collective mark

(law) A trademark or service mark that a cooperative, association, or other collective group uses in commerce. A mark used to indicate membership in a union, association, or other organization.

collect on delivery (COD)

(shipping) A transportation service under which the purchase price of goods is collected by the carrier from the receiver at the time of delivery, and subsequently, payment is transmitted by the carrier to the shipper. Carriers charge a nominal fee for this service. As the term COD implies payment is due upon delivery. There are no credit provisions in COD service. Also called Cash On Delivery.

colon

The currency of:

Costa Rica, 1¢=100 centimos;

El Salvadore, 1¢=100 centavos.

colorable imitation

(law) A mark that is so similar to another registered trademark or service mark that it may be considered as calculated to deceive an ordinary person.

colorable transaction

(law) A transaction that in appearance does not correspond to the actual transaction and that is usually intended to conceal or deceive.

column 1 rates

(U.S. Customs) The Harmonized Tariff Schedules of the United States (HTS) is an organized listing of goods and their import duty rates which is used as the basis of classifying products for entry to the United States. Column 1 duty rates in the HTS are low and apply to imports from countries that have achieved Most Favored Nation (MFN) trading status with the United States. See Harmonized Tariff Schedule of the United States; column 2 rates.

column 2 rates

(U.S. Customs) The Harmonized Tariff Schedules of the United States (HTS) is an organized listing of goods and their import duty rates which is used as the basis of classifying products for entry to the United States. Column 2 duty rates in the HTS apply to imports from countries that do not have Most Favored Nation (MFN) trading status with the United States. See Harmonized Tariff Schedule of the United States; column 1 rates.

combi aircraft

See combination aircraft.

combination aircraft

(shipping) An aircraft capable of transporting both passengers and cargo on the same flight. Such a plane will generally carry unitized cargo loads on the upper deck of the aircraft forward of the passenger compartment. Some cargo is carried on virtually all scheduled passenger flights in the belly pits below the passenger cabin.

combination in restraint of trade

(law) An understanding or agreement between two or more individuals or legal entities to do the following: (1) restrict competition; (2) monopolize trade; (3) control production, distribution, and price; and (4) otherwise interfere with freedom of trade.

combined bill of lading

(shipping) A bill of lading covering a shipment of goods by more than one mode of transportation. See bill of lading.

combined transport

(shipping) Consignment sent by means of various modes of transport, such as by rail and by ocean.

combined transport bill of lading

(shipping) A bill of lading covering a shipment of goods by more than one mode of transportation. See bill of lading.

comity

(law) Courtesy, respect, and good will. Government agencies or courts in one jurisdiction, for example, may agree out of comity to give effect to court judgments or arbitration awards of other jurisdictions.

command economy

(economics) An economic system where resources and decisions about production are controlled by a central government authority.

Commanditaire Vennootschap (C.V.)

(Netherlands) Designation for a limited partnership in which at least one of the partners has general personal liability and at least one of the other partners has limited liability.

Commerce Business Daily

(publication) A daily newspaper published by the U.S. Department of Commerce which lists government procurement invitations and contract awards, including foreign business opportunities and foreign government procurements. Available from: U.S. Department of Commerce, Washington, DC 20230; Tel: (202) 482-0633.

Commerce Control List (CCL)

(U.S.) A list of all items--commodities, software, and technical data--subject to U.S. Bureau of Export Administration export controls. Incorporates not only the national security controlled items agreed to by the Coordinating Committee on Multilateral Export Controls (CoCom) (the "core" list), but also items controlled for foreign policy and other reasons. The list adopts a totally new method of categorizing commodities and is divided into 10 general categories: (1) materials, (2) materials processing, (3) electronics, (4) computers, (5) telecommunications and cryptography, (6) sensors, (7) avionics and navigation, (8) marine technology, (9) propulsion systems and transportation equipment, and (10) miscellaneous. Replaced the former Commodity Control List as of September 1, 1991. 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; see also export control classification number.

Commercial Activity Report (CAR)

(U.S.) An assessment of a country's political, economic, and business activities, and its market potential and strategies, with an eye to increasing U.S. sales. The CAR is prepared annually by the economic and commercial sections of U.S. embassies, covering over 100 countries where the Department of Commerce is not represented. Available as individual reports from the Department of Commerce, 14th St. & Constitution Ave. NW, Washington, DC 20230; Tel: (202) 482-2867; or on the National Trade Data Bank, U.S. Department of Commerce, Office of Business Analysis, HCHB Room 4885, Washington, DC 20230; Tel: (202) 482-1986; http://www.stat-usa.gov; For individual reports, call your district Department of Commerce office.

commercial bank

(banking) A bank that specializes in accepting demand deposits (deposits that can be withdrawn on demand by the depositor) and granting loans.

commercial bill of exchange

See bill of exchange.

commercial credit

(banking) A letter of credit used to facilitate a sale of goods by insuring that the seller will be paid once the seller has complied with the terms of credit that the buyer obtains. A letter of credit is usually issued by a bank (the issuer) on the request of its client (the buyer) to assure the seller that the buyer will pay for the goods sold. See letter of credit.

commercial frustration

(law) A legal theory that implies a condition or term into a contract, if no express provision was made, to excuse the parties when performance becomes impossible because an event occurs that the contracting parties could not have reasonably foreseen or controlled. Commercial frustration may arise, for example, if a seller's shipment is lost in a shipwreck or if a manufacturer cannot obtain raw materials because war has broken out in the country supplying them. See force majeure.

commercial impracticability

(law) A legal theory that implies a condition or term into a contract, if no express provision was made, to excuse either party when performance becomes impossible in practice because of the occurrence of a contingency, the nonoccurrence of which was a basic assumption for making the contract. A manufacturer, for example, who contracts to sell goods at a specific price in reliance on a subcontractor's bid to provide certain components at a low price may claim commercial impracticability if the subcontractor defaults and the manufacturer can only procure comparable components at a much higher price.

Commercial Information Management System (CIMS)

(U.S.) CIMS is a trade-related application using National Trade Data Bank CD-ROMs to disseminate market research and international economic data to U.S. & Foreign Commercial Service (US&FCS) domestic offices and overseas posts. The system includes data on American and foreign traders and supports local collection and update of information on business contacts. Not available to the public.

commercial invoice

(general) A document identifying the seller and buyer of goods or services, identifying numbers such as invoice number, date, shipping date, mode of transport, delivery and payment terms, and a complete listing and description of the goods or services being sold including prices, discounts and quantities.

(customs) A commercial invoice is often used by governments to determine the true (transaction) value of goods for the assessment of customs duties and also to prepare consular documentation. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used, and other characteristics.

(U.S. Customs) U.S. Customs requires that a commercial invoice provide the following information: (1) The port of entry, (2) If merchandise is sold or agreed to be sold, the time, place and names of buyer and seller; if consigned, the time and origin of shipment, and names of shipper and receiver, (3) Detailed description of the merchandise, including the name by which each item is known, the grade or quality, and the marks, numbers, and symbols under which sold by the seller or manufacturer to the trade in the country of exportation, together with the marks and numbers of the packages in which the merchandise is packed, (4) The quantities in weights and measures, (5) If sold or agreed to be sold, the purchase price of each item in the currency of the sale, (6) If consigned, the value for each item, in the currency in which the transactions are usually made or, in the absence of such value, the price in such currency that the manufacturer, seller, shipper, or owner would have received, or was willing to receive, for such merchandise if sold in the ordinary course of trade and in the usual wholesale quantities in the country of exportation, (7) The kind of currency, (8) All charges upon the merchandise, itemized by name and amount including freight, insurance, commission, cases, containers, coverings, and cost of packing; and, if not included above, all charges, costs, and expenses incurred in bringing the merchandise from alongside the carrier at the first U.S. port of entry. The cost of packing, cases, containers, and inland freight to the port of exportation need not be itemized by amount if included in the invoice price and so identified. Where the required information does not appear on the invoice as originally prepared, it shall be shown on an attachment to the invoice, (9) All rebates, drawbacks, and bounties, separately itemized, allowed upon the exportation of the merchandise, (10) The country of origin, and (11) All goods or services furnished for the production of the merchandise not included in the invoice price. The invoice and all attachments must be in the English language.

commercial letter of credit

(banking) An instrument by which a bank lends its credit to a customer to enable him to finance the purchase of goods. Addressed to the seller, it authorizes him to draw drafts on the bank under the terms stated in the letter. See letter of credit.

Commercial News USA (CNUSA)

(publication) A U.S. & Foreign Commercial Service fee-based magazine, published 10 times per year. CNUSA provides exposure for U.S. products and services through an illustrated catalog and electronic bulletin boards. The catalog is distributed through U.S. embassies and consulates to business readers in 140 countries. Copies are provided to international visitors at trade events around the world.

The CNUSA program covers about 30 industry categories and focuses on products that have been on the U.S. market for no longer than three years. To be eligible, products must be at least 51 percent U.S. parts and 51 percent U.S. labor. The service helps U.S. firms identify potential export markets and make contacts leading to representation, distributorships, joint venture or licensing agreements, or direct sales. To order Commercial News USA, contact: Associated Business Publishers International, 317 Madison Avenue, New York NY, 10017-5391; Tel: (212) 490-3999; Fax: (212) 986-7864;

http://www.cnewsusa.com.

commercial officers

(diplomacy) Embassy officials who assist businesses through arranging appointments with local business and government officials, providing counsel on local trade regulations, laws, and customs; identifying importers, buyers, agents, distributors, and joint venture partners; and other business assistance. See economic officers.

commercial paper

(banking/law) Negotiable instruments used in commerce. Examples of commercial paper are bills of exchange, promissory notes, and bank checks. See negotiable instrument; bill of exchange.

commercial set

(law) The primary documents for a shipment of goods. A commercial set usually includes, for example, an invoice, bill of lading, bill of exchange, and certificate of insurance.

commercial treaty

An agreement between two or more countries setting forth the conditions under which business between the countries may be transacted. May outline tariff privileges, terms on which property may be owned, the manner in which claims may be settled, etc.

commingling

(U.S. Customs) The packing or mingling of various articles subject to different rates of duty in such a way that the quantity or value of each class of articles cannot readily be ascertained by Customs without the physical segregation of the shipment or the contents of any package thereof. Commingled articles are subject to the highest rate of duty applicable to any part of the commingled lot, unless the consignee or his agent segregates the articles under Customs supervision.

commission

(general) The amount paid to an agent, which may be an individual, a broker, or a financial institution, for consummating a transaction involving sale or purchase of assets or services.

(banking) Agents and brokers are usually compensated by being allowed to retain a certain percentage of the premiums they produce, known as a commission.

Committee on Foreign Investment in the United States (CFIUS)

(U.S) Created in 1975 to provide guidance on arrangements with foreign governments for advance consultations on prospective major foreign governmental investments in the United States, and to consider proposals for new legislation or regulation relating to foreign investment.

The authority of the Committee was amended by Section 5021 (the Exon-Florio provision) of the Omnibus Trade and Competitiveness Act of 1988 (Section 721 of the Defense Production Act), which gives the President authority to review mergers, acquisitions, and takeovers of U.S. companies by foreign interests and to prohibit, suspend, or seek divesture in the courts of investments that may lead to actions that threaten to impair the national security.

By Executive Order in December 1988, the U.S. Treasury has authority to implement the Exon-Florio provision. CFIUS has eight members: Treasury (the chair), State, Defense, Commerce, the Council of Economic Advisors, the U.S. Trade Representative, the Attorney General, and the Office of Management and Budget.

The Assistant Secretary for Trade Development serves as Commerce's representative to CFIUS. The Commerce working group includes the Bureau of Export Administration, the Economics and Statistics Administration, the Technology Administration, and the Office of the General Counsel. Address: Committee on Foreign Investment in the United States, 1440 New York Avenue NW, Room 4209, Washington D.C. 20220; Tel: (202) 622-1860.

commodity

Broadly defined, any article exchanged in trade, but most commonly used to refer to raw materials, including such minerals as tin, copper and manganese, and bulk-produced agricultural products such as coffee, tea and rubber.

commodity code

(shipping) A system for identifying a given commodity by a number in order to establish its commodity rate in freight transport. See Harmonized System.

commodity control list

See Commerce Control List.

Commodity Credit Corporation

(U.S.) A U.S. government corporation controlled by the Department of Agriculture which provides financing and stability to the marketing and exporting of agricultural commodities. Address: Commodity Credit Corporation, USDA, 1400 Independence Avenue SW Stop 0581, Washington D.C. 20250-0581; Tel: (703) 305-1386.

commodity rate

(shipping) The rate (charges) applicable to shipping a specific commodity between certain specified points.

common agricultural policy (CAP)

(EC) A set of regulations by which members states of the European Community (EC) seek to merge their individual agricultural programs into a unified effort to promote regional agricultural development, raise standards of living for the farm population, stabilize agricultural markets, increase agricultural productivity, and establish methods of dealing with food supply security. Two of the principal elements of the CAP are the variable levy (an import duty amounting to the difference between EC target farm prices and the lowest available market prices of imported agricultural commodities) and export restitutions, or subsidies, to promote exports of farm goods that cannot be sold within the EC at the target prices.

common carrier

See carrier.

common external tariff (CXT)

(customs) A uniform tariff rate adopted by a customs union or common market such as the European Community, to imports from countries outside the union. For example, the European Common Market is based on the principle of a free internal trade area with a common external tariff (sometimes referred to in French as the Tarif Exterieur Commun--TEC) applied to products imported from non-member countries. "Free trade areas" do not necessarily have common external tariffs.

common law

(law) The body of law derived from usages, customs, and judicial decisions, as distinguished from statutes. See civil law; stare decisis.

common market

(economics) A common market (as opposed to a free trade area) has a common external tariff and may allow for labor mobility and common economic policies among the participating nations. The European Community is the most notable example of a common market.

Common Monetary Agreement

A regional economic alliance of South Africa, Lesotho, and Swaziland under which member states apply uniform exchange control regulations to ensure monetary order in the region. Funds are freely transferable among the three countries, and Lesotho and Swaziland have free access to South African capital markets. Lesotho also uses the South African currency, the rand. The CMA was formed in 1986 as a result of the renegotiation of the Rand Monetary Agreement (RMA) which was originally formed in 1974 by the same member countries.

common point

(shipping) A point (location) serviced by two or more transportation lines.

common standard level of effective protection

The minimum shared standards between the U.S. and Coordinating Committee on Multilateral Export Controls (CoCom) members for requiring export licenses. See Coordinating Committee on Multilateral Export Controls.

common tariff

(shipping) A tariff published by or for the account of two or more transportation lines as issuing carriers. See tariff.

commonwealth

A free association of sovereign independent states that has no charter, treaty, or constitution. The association promotes cooperation, consultation, and mutual assistance among members. The British Commonwealth, the most notable example, included 50 states at the beginning of 1991.

Commonwealth of Independent States (CIS)

An association of 11 republics of the former Soviet Union established in December 1991. The members include: Russia, Ukraine, Belarus (formerly Byelorussia), Moldova (formerly Moldavia), Armenia, Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Kazakhstan, and Kirgizstan (formerly Kirghiziya). Georgia is presently an "observer"; the Baltic states did not join.

Communications Satellite Corporation

(U.S.) COMSAT was established in 1963 under provision of the Communications Satellite Act of 1962. The legislation directed that COMSAT establish the world's first commercial international satellite communications system. The Act also stipulated that the company operate as a shareholder-owned "for-profit" corporation. COMSAT represents the U.S. in the International Telecommunications Satellite Organization. Address: COMSAT, 6560 Rock Spring Drive, Bethesda, MD 20817; Tel: (301) 214-3000; Fax: (301) 214-7100; http://www.comsat.com.

Compagnie (Cie.)

(France, Luxembourg) General designation for a business organization.

Company (Co.)

(South Africa, United States) General designation for a business organization.

comparative advantage

(economics) A central concept in international trade theory which holds that a country or a region should specialize in the production and export of those goods and services that it can produce relatively more efficiently than other goods and services, and import those goods and services in which it has a comparative disadvantage. This theory was first propounded by David Ricardo in 1817 as a basis for increasing the economic welfare of a population through international trade. The comparative advantage theory normally favors specialized production in a country based on intensive utilization of those factors of production in which the country is relatively well endowed (such as raw materials, fertile land or skilled labor); and perhaps also the accumulation of physical capital and the pace of research.

compensatory trade

(economics) A form of countertrade where any combination of goods and services are bartered. See countertrade.

competitive rate

(shipping) Rate established by a transportation line to meet competition of another transportation line.

complementary imports

(economics) Imports of raw materials or products which a country itself does not possess or produce.

composite theoretical performance

(U.S.) Computer hardware export license requirements are evaluated according to composite theoretical performance (CTP), which replaced the former processing data rate (PDR) parameter. CTP is measured in million theoretical operations per second (MTOPS). CTP was developed by the U.S. as a new parameter, and was adopted by the Coordinating Committee on Multilateral Export Controls (CoCom) during the Core List negotiations, because PDR was not applicable to certain modern computer architectures such as vector processors, massively parallel processors, and array processors. CTP is designed to measure all of these architectures, as well as signal processing equipment. See Coordinating Committee on Multilateral Export Controls.

composition with creditors

(law) An agreement between an insolvent debtor and one or more creditors under which the creditors consent to accept less than the total amount of their claims in order to secure immediate payment. Creditors will usually prefer a composition if a debtor threatens to declare bankruptcy, because otherwise the creditors are likely to incur costs in making a legal claim against the debtor in a bankruptcy proceeding, payment of debts will be delayed during the proceeding, and the amount paid to each creditor will depend on the judicial decision in that proceeding.

compound rate of duty

(customs) A combination of both a specific rate of duty and an ad valorem rate of duty. For example: 0.7 cents per pound plus 10 per cent ad valorem. See also duty; ad valorem; specific rate of duty.

compradore

An intermediary, agent or advisor in a foreign country employed by a domestic individual or company to facilitate transactions with local individuals or businesses in the foreign country.

compressed gases

(shipping) Items requiring storage and handling under pressure in compressed gas cylinders. (UN CLASS 2.) Examples are acetylene and chlorine. Hazards/precautions are: container may explode in heat or fire; contact with liquid may cause frostbite; may be flammable, poisonous, explosive, irritating, corrosive or suffocating; may be EXTREMELY HAZARDOUS.

COMPRO

(information system) An on-line trade data retrieval system maintained by the International Trade Administration within the U.S. Department of Commerce. The system is exclusively for use within the federal government trade community (ITA, USTR, ITC, and other executive branch agencies). COMPRO includes:

(1) U.S. foreign trade data (detailed U.S. merchandise trade statistics compiled by Census);

(2) UN trade data (trade statistics of 170 countries;

(3) International Monetary Fund and World Bank databases (international finance, direction of trade, and developing country debt). COMPRO also maintains gateways to LABSTAT, a product of the Bureau of Labor Statistics.

computed value

(U.S. Customs) Generally, the Customs value of all merchandise exported to the United States is the transaction value for the goods. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are:

(1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests.

Computed value consists of the sum of the following items:

(1) Materials, fabrication, and other processing used in producing the imported merchandise, (2) Profit and general expenses, (3) Any assist, if not included in items 1 and 2, (4) Packaging costs.

See valuation; transaction value; identical merchandise; similar merchandise; assist; deductive value.

concealed damage

(shipping) Damage to the contents of a package which is in good order externally. See also inherent vice.

concealed loss

(shipping) Loss from a package bearing concealed damage. See also inherent vice.

concord

(law) An agreement between two parties that states the terms of a settlement of a right of action for a breach or wrongdoing that one of the parties has against the other. A buyer who has paid for goods but has not received them, for example, may agree to forgo the right to sue the seller for breach if the seller agrees to return the money paid. See accord and satisfaction.

conditional endorsement

See endorsement.

conditions of carriage

See contract of carriage.

conference

(shipping) A group of ocean freight carriers banding together, voluntarily, for the purpose of limiting and regulating competition among themselves. It may establish uniform tariff freight charges and terms and conditions of service. Conference establishment in the United States requires Federal Maritime Commission approval. Conferences in the United States are exempt from anti-trust regulation. See open conference; closed conference.

conference line

(shipping) Ocean shipping companies whose ships travel according to firmly established schedules along fixed routes. Uniform transport rates are established between the shipping lines. Such agreements are usually called conferences. The conference lines are therefore the shipping routes agreed by the conferences. See conference; open conference; closed conference.

Conference on Security and Cooperation in Europe

An economic and defense alliance whose members include all recognized countries of Europe, Canada, the USA, and the former republics of the USSR. Included are: Albania, Armenia, Austria, Azerbaijan, Belgium, Bulgaria, Byelarus, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, the Holy See, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Russia, San Marino, Slovakia, Spain, Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan, Ukraine, the United Kingdom, the United States, Uzbekistan and Yugoslavia. Note: The Federal Republic of Yugoslavia (Serbia & Montenegro) was suspended in July 1992. Address: Conference on Security and Cooperation in Europe, Thunovská 12, Malá Strana, 110 00 Prague 1, Czech Republic; Tel: [420] (2) 311-9793; Fax: [420] (2) 311-6215.

conference rate

(shipping) Rates arrived at by conference of carriers applicable to transportation--generally water transportation. See conference.

confirmation

(law) A contract or written memorandum that ratifies, renders valid, and makes binding an agreement that was difficult to prove, invalid, or otherwise unenforceable. Parties who orally agree to a sale of goods, for example, may formalize that agreement by signing a written confirmation that contains all of the oral terms. See contract.

confirmed letter of credit

(banking) A letter of credit which contains a guarantee on the part of both the issuing and advising banks of payment to the seller so long as the seller's documentation is in order and the terms of the letter of credit are met.

Confirmation is only added to irrevocable letters of credit, usually available with the advising bank. If confirmation of the letter of credit is desired, the applicant must state this expressly in his/her letter of credit application. The confirming bank assumes the credit risk of the issuing bank as well as the political and transfer risks of the purchaser's country.

If a letter of credit does not contain a confirmation request by the issuing bank, in certain circumstances the possibility exists of confirming the letter of credit "by silent confirmation," i.e. without the issuing bank's knowledge. Without confirmation of the letter of credit, the advising bank will forward the letter of credit to the beneficiary without taking on its own commitment. See letter of credit.

confirming

A financial service in which an independent company confirms an export order in the seller's country and makes payment for the goods in the currency of that country. Among the items eligible for confirmation are the goods; inland, air, and ocean transportation costs; forwarding fees; custom brokerage fees; and duties. Confirming permits the entire export transaction from plant to end user to be fully coordinated and paid for.

confirming bank

(banking) In letter of credit transactions, the bank that assumes responsibility to the seller (usually exporter) for payment from the issuing bank (buyer's bank) so long as the terms and conditions of the letter of credit have been met by the seller/exporter. See letter of credit.

conflict of laws

(law) Differences between the laws of different countries or other jurisdictions that become significant in determining which law will apply when individuals or legal entities have acquired rights, incurred obligations, suffered injuries or damages, or made contracts in two or more jurisdictions. The rules that courts apply to resolve conflicts of laws vary among countries. In addition, different rules apply depending on the subject matter of a controversy--that is, whether a controversy involves property or personal rights. See governing law clause; lex loci actus; lex loci solutionis.

connecting carrier

(shipping) A carrier which has a direct physical connection with another carrier or forms a connecting link between two or more carriers.

consideration

(law) The price or other motivation that induces a party to make a contract. A buyer may agree, for example, to pay a sum of money or to furnish certain products as consideration for receiving the seller's goods. A contracting party may also promise to forgo a legal right, such as a right to sue for breach of contract, as consideration for the other party's promise to pay damages that resulted from the breach.

consignee

(shipping) The person or firm named in a freight contract to whom goods have been shipped or turned over for care. See also consignor.

consignee marks

(shipping) A symbol placed on packages for export, generally consisting of a square, triangle, diamond, circle, cross, etc., with designed letters and/or numbers for the purpose of identification.

consignment

(shipping) Shipment of one or more pieces of property, accepted by a carrier for one shipper at one time, receipted for in one lot, and moving on one bill of lading.

(commerce) Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

consignment contract

(law) An agreement by a seller (consignor) to deliver goods to an individual or legal entity (consignee) who will pay the seller for any goods sold, less a commission, and will return goods not sold. See consignment.

consignor

(shipping) The individual, company or entity that ships goods, or gives goods to another for care. The consignor is usually the exporter or his agent. See also consignee; consignment.

consolidated container

(shipping) A shipping container containing cargo from a number of shippers for delivery to a number of different consignees.

consolidation

(shipping) The combining of less than truckload (LTL) shipments of cargo from a number of shippers at a centrally located point of origin by a freight consolidator, and transporting them as a single shipment to a destination point. Consolidation of cargo often results in reduced shipping rates.

consolidator

(shipping) A company that provides consolidation services. Freight forwarders perform the functions of a consolidator. See consolidation.

consolidator's bill of lading

(shipping) A bill of lading issued by a consolidating freight forwarder to a shipper. See also bill of lading; house air waybill.

constructed value

(U.S. Customs) In customs valuation, a means of determining fair or foreign market value when sales of such or similar merchandise do not exist or, for various reasons, cannot be used for comparison purposes. The "constructed value" consists of the cost of materials and fabrication or other processing employed in producing the merchandise, general expenses of not less than 10 percent of material and fabrication costs, and profit of not less than 8 percent of the sum of the production costs and general expenses. To this amount is added the cost of packing for exportation. See valuation; transaction value.

constructive total loss

(insurance) An insurance loss where the expense of recovering or repairing the insured goods would exceed their value after this expenditure had been incurred.

In the adjustment of constructive total losses, the value of any remaining salvage abandoned to underwriters may, by agreement, be taken into consideration, with payment to the assured upon a net basis. Otherwise, underwriters pay full insured value and may then dispose of the salvage for their own account, provided they have elected to accept abandonment.

If the loss was due to sea peril, a "master's protest" (also called "captain's protest) will usually be required. This certifies the fact that unusually heavy weather or other exceptional circumstance was encountered during the voyage and is extended to confirm the loss of the shipment in question. In claims for total loss, it is especially necessary that a full set of insurance certificates and bills of lading be submitted to the insurance company representative. See abandonment; captain's protest.

consular declaration

A formal statement, made in a country of export by the consul of an importing country, describing goods to be shipped to the importing country. See consular invoice.

consular invoice

(customs) An invoice covering a shipment of goods certified (usually in triplicate) by the consul of the country for which the merchandise is destined. This invoice is used by customs officials of the country of entry to verify the value, quantity, and nature of the merchandise imported. See also commercial invoice.

consular officers

(diplomacy) Embassy officials of a country who extend to its citizens and their property abroad the protection of their home government. They maintain lists of local attorneys, act as liaison with police and other officials and have the authority to notarize documents.

consular visa

(travel/customs) Any one of several official endorsements by a consul of a country. A consular visa can be issued for travel, consular invoices, certificates of origin, shipping documents and other legal documents.

consulate

(diplomacy) The offices representing the commercial interests of the citizens of one country in another country.

consumer goods

(economics) Any goods produced to satisfy the needs of individuals rather than those produced for the manufacturing or production of other goods. Examples of consumer goods are food, clothing and entertainment products. See also capital goods.

consumption entry

(U.S. Customs) (a) A U.S. Customs entry where the importer pays applicable duty and merchandise is released from customs custody at a U.S. port, foreign trade zone or from a customs bonded warehouse. (b) The formal U.S. Customs process for entering commercial shipments of goods into the Customs territory of the United States. A "formal entry."

The entry of goods is a two-part process consisting of (1) filing the documents necessary to determine whether merchandise may be released from Customs custody, and (2) filing the documents which contain information for duty assessment and statistical purposes. In certain instances, such as the entry of merchandise subject to quotas, all documents must be filed and accepted by Customs prior to the release of goods. See entry.

container

(shipping) A single rigid, sealed, reusable metal "box" in which merchandise is shipped by vessel, truck, or rail.

All containers will have construction fittings, or fastenings able to withstand, without permanent distortion, all stresses that may be applied in normal service use of continuous transportation.

Standard lengths include 10, 20, 30, and 40 feet (40 foot lengths are generally able to hold about 40,000 pounds). Containers of 45 and 48 feet are also used, as well as containers for shipment by air. Container types include: standard, high cube, hardtop, open top, flat, platform, ventilated, insulated, refrigerated, bulk.

container freight charge

(shipping) Charge made for the packing or unpacking of cargo into or from ocean freight containers.

container freight station

(shipping) A facility used by ocean carriers to load/unload cargo to and from containers. Most less than container load lots of cargo are either packed into or devanned at a container freight station.

containerization

(shipping) The practice or technique of using a boxlike device (container) in which a number of packages are stored, protected, and handled as a single unit in transit. Advantages of containerization include: less handling of cargo, more protection against pilferage, less exposure to the elements, and reduced cost of shipping.

(air freight) Container descriptions have been broadened to include a unitized load on a carrier- owned pallet, loaded by shippers, and unloaded by receivers at places other than on airline premises, and restrained and contoured so as to permit proper positioning and tiedown aboard the aircraft.

container load

(shipping) A shipment of cargo that in either volume or weight is sufficient to fill any one of many standard containers.

container on flatcar

(shipping) A container without wheels put on railcars for transport.

container part load

(shipping) A shipment of cargo that in either volume or weight is not sufficient to fill any one of many standard containers.

container number

(shipping) An up to seven-digit number (six plus a check digit) used to identify the size and type of container; usually preceded by a four-letter alpha (letter) code prefix designating container ownership.

container vessel

(shipping) An ocean going vessel designed specifically to easily handle the loading, stowage and off-loading of ocean freight containers. Containers may be stowed either below deck or on deck.

container yard

(shipping) The area adjacent to the vessel berth where containers are delivered to and received from the vessel, and delivered to and received from inland carriers.

contango

(banking/finance/foreign exchange) The amount (generally a percentage) a buyer pays a seller to delay transfer of a stock, security or foreign exchange to the next or any future day. The opposite of backwardation.

contingency insurance

(insurance) Also called difference in conditions insurance. Insurance which protects the interests of the insured in the event another party's insurance fails or falls short. Commonly used in both import and export situations:

Example 1: Exporting

There are several countries whose laws require that marine insurance on shipments to those countries be placed with local insurance companies. This has the effect of requiring the importer to furnish the insurance. The quality and extent of coverage of this insurance, however, may be in question. If the exporter feels that he has insurable interest he can still protect himself by the purchase of contingency or difference in conditions insurance which protects his own interests in the event the importer's insurance fails or falls short. While the cost of this is naturally less than the cost of primary insurance, it must be borne by the exporter.

Example 2: Importing

A domestic buyer on C.I.F. (Cost, Insurance, Freight) terms must rely upon foreign underwriters, since the insurance will have been placed by the seller in the country of origin. Once again, the quality and extent of coverage of this insurance may be in question. If the importer feels that he has insurable interest he can still protect himself by the purchase of "contingency" or "difference in conditions" insurance which protects his own interests in the event the exporter's insurance fails or falls short. Note: By purchasing on FOB, C & F or similar terms, the domestic importer can control his own insurance. He will then be able to deal with his own underwriters in case of loss or in case of demand for general average security. See insurable interest.

contra; contra account

(banking) An account with an offsetting credit or debit entry. In accounting, a contra account is generally the right-hand or credit side of a balance sheet in which the liabilities appear.

contraband

(customs) Any product which a nation has deemed to be unsuitable to produce, possess or transport. Any product that a country has deemed to be unsuitable for entry into that country. Contraband is subject to interdiction, possible forfeiture and possible destruction by customs authorities. Examples of contraband are, narcotic drugs (most countries), alcohol (certain Islamic countries), seditious literature (many countries), sexually oriented goods and literature (many countries).

contract

(law) An agreement made between two or more parties who promise to perform or not to perform specified acts, which agreement creates for each party a legal duty and the right to seek a remedy for breach of that duty.

(a) A constructive or implied contract is an agreement that is implied by law from the circumstances of a business dealing and in accordance with the common understanding between reasonable persons in order to carry out the intent of the parties and do justice between them. (b) An express contract is an oral or written agreement the terms of which are explicitly declared when the contract is made. (c) An executory contract is one that has not been performed.

contract carrier

(shipping) Any person not a common carrier who under special and individual contracts or agreements, transports passengers or property for compensation. See also carrier.

contracting parties

(law) Two or more individuals, companies or groups who are signatories to an agrement or contract.

(GATT) The signatory countries to the General Agreement on Tariffs and Trade (GATT). These countries have accepted the specified obligations and privileges of the GATT agreement. See General Agreement on Tariffs and Trade; multilateral trade negotiations.

contract manufacturing

(a) An agreement whereby a company agrees to manufacture a product to the specifications of another company or individual. This can be on an exclusive or non-exclusive sales basis. (b) An agreement by two companies to manufacture separate components of a product and jointly manufacture and sell the finished product in their respective markets.

contract of carriage

(shipping) The contract between the shipper (consignor) and carrier (shipping firm) for the transport of freight, including the terms and conditions of carriage and costs to the shipper. These conditions are printed on the bill of lading or air waybill and include such items as limits of liability, claims limitations, indemnity and dimensional weight rules. See bill of lading.

conventional arms transfer

The transfer of non-nuclear weapons, aircraft, equipment, and military services from supplier states to recipient states.

(U.S.) U.S. arms are transferred by grants as in the U.S. Military Assistance Program (MAP); by private commercial sales; and by government-to-government sales under Foreign Military Sales (FMS). MAP provides defense articles and defense services to eligible foreign governments on a grant basis.

FMS provides credits and loan repayment guarantees to enable eligible foreign governments to purchase defense articles and defense services.

Convention on Contracts for the International Sale of Goods

(law) A United Nations convention which establishes uniform legal rules governing formation of international sales contracts and the rights and obligations of the buyer and seller. The CISG applies automatically to all contracts for the sale of goods between traders from two different countries that have both ratified the CISG, unless the parties to the contract expressly exclude all or part of the CISG or expressly stipulate a law other than the CISG. The CISG became the law of the United States in January 1988.

Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

An international convention that controls and/or prohibits trade in endangered and threatened species of fauna and flora. Over 100 nations participate in the treaty that took effect in May 1977. The United States is a signatory to the treaty.

convertibility

(banking/foreign exchange) Ease of exchanging one currency for that of another nation or for gold.

convertible currency

(foreign exchange) Currency that can be easily exchanged, bought and sold for other currencies.

coordinated movement

(shipping) The extending of freight transportation systems to intermediate and smaller size communities through the use of interline agreements and the use of combined services of truck/air, helicopters, regional, and commuter airlines. In many cases such traffic moves under a joint freight rate. The success of such combined service hinges on pre-planning on the part of the carriers, and often on the part of shippers, with regard to production and distribution schedules.

Coordinating Committee on Multilateral Export Controls

An informal organization established in 1951 by NATO member countries that cooperatively restricts strategic exports (products and technical data) to controlled countries. To date, CoCom consists of NATO countries plus Japan, minus Iceland.

CoCom controls three lists: (1) the international industrial list (synonymous with the "dual-use" or "core" list), (2) the international munitions list, and (3) the atomic energy list. The 17 CoCom members are: Australia, Belgium, Canada, Denmark, France, Germany, Greece, Italy, Japan, Luxembourg, the Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom and the United States.

CoCom controls exports at three levels, depending on the item and the proposed destination. (1) At the highest or "general exception" level, unanimous approval by CoCom members is necessary. (2) At the next level, "favorable consideration," there is a presumption of approval; the export may be made if no CoCom members objects within 30 days of submission to CoCom. (3) At the lowest level, "national discretion" (also called "administrative exception"), a member nation may approve the export on its own, but CoCom must be notified after the fact. See core list.

copyright

(law) An intangible right granted by law to the creator of a literary, musical, or artistic production to prevent any other person from copying, publishing, and selling those works. A copyright owner holds the sole and exclusive privilege to copy, publish, and sell the copyrighted work for the period specified by law. In general, copyright protection is available only after the work is fixed in a tangible medium, such as on paper, tape, canvas, or other materials, from which the work can be seen, reproduced, or otherwise communicated. It is not available to protect an idea, concept, procedure, process, system, operation method, principle, or discovery, but only the work as presented in a tangible medium. The works that can be copyrighted, the requirements for claiming a copyright, the extent of enforcement, and the time during which a copyright is effective varies from country to country. In the United States, for example, a copyright remains effective until 50 years after the death of the creator. In an effort to standardize copyright protection worldwide, many countries have become members of several international conventions on copyrights, including the Berne Convention for the Protection of Literary and Artistic Works, the Universal Copyright Convention, the UNESCO Treaty, the Convention for Protection of Producers of Phonograms against Unauthorized Duplication of Their Phonograms, and the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations. See Berne Convention for the Protection of Literary and Artistic Works; Universal Copyright Convention.

cordoba

The currency of Nicaragua. 1C$=100 centavos.

core inflation

(economics) The basic level of inflation over a period of time (e.g., a decade) as opposed to temporary fluctuations in the rate.

core list

A categorization and listing of export controlled strategic products by the Coordinating Committee on Multilateral Export Controls (CoCom). East-West controls are based largely on CoCom's core list, which replaced the old industrial list effective September 1991. The core list includes items in ten categories: (1) materials, (2) materials processing, (3) electronics, (4) computers, (5) telecommunications and cryptography, (6) sensors, (7) avionics and navigation, (8) marine technology, (9) propulsion systems and transportation equipment, and (10) miscellaneous. See Coordinating Committee on Multilateral Export Controls.

corporate dumping

The practice of exporting banned or out-of-date products from a domestic market to another national market where they are not banned or where regulations are more lax than in the domestic market. Out-of-date pharmaceuticals, for example, might be shipped from the U.S. to an Asian country that does not impose the same restrictions on the product.

corporation

(law) An association or entity created by persons under the authority of the laws of a particular jurisdiction. A corporation is treated as distinct from the persons (referred to as shareholders) who created it, and therefore the shareholders enjoy limited liability and the corporation has certain legal rights, such as the right to own property, enter contracts, and bring suit, similar to those given to individuals. See person.

correspondent bank

(banking) A bank that acts as a depository, for another bank, accepting deposits and collecting items (such as drafts) on a reciprocal basis. Correspondent banks are often in different countries.

corrosives

(shipping) Items include materials that cause destruction to human tissue and corrode metal (i.e. steel) upon contact. (UN CLASS 8.) Examples are sodium hydroxide, hydrochloric acid, alkaline liquid. Hazards/precautions are: contact causes burns to skin and eyes; may be harmful if breathed; fire may produce poisonous fumes; may react violently with water; may ignite combustibles; and explosive gasses may accumulate.

cost and freight ...

(named port of destination)

(Incoterm) "Cost and Freight" (CFR) means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR (Cost and Freight) term requires the seller to clear the goods for export.

This term can only by used for sea and inland waterway transport. When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the CPT (Carriage Paid To) term is more appropriate to use.

See Incoterms 1990 for a list of the thirteen Incoterms 1990.

cost, insurance, freight, commission, and interest (cifci)

(trade term) The same as cif (cost, insurance and freight), plus commission and interest.

cost, insurance and freight ... (named port of destination)

(Incoterm) "Cost, Insurance and Freight" (CIF) means that the seller has the same obligations as under cost and freight (CFR) but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.

The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage. The CIF term requires the seller to clear the goods for export.

This term can only be used for sea and inland waterway transport. When the ship's rail serves no practical purpose such as in the case of roll-on/roll-off or container traffic, the carriage and insurance paid to (CIP) term is more appropriate to use. See Incoterms 1990 for a list of the thirteen Incoterms 1990.

cost of goods sold

(economics/accounting) The purchase price of goods sold during a specified period, including transportation costs.

cost of production

(economics) The sum of the cost of materials, fabrication and/or other processing employed in producing the merchandise sold in a home market or to another country together with appropriate allocations of general administrative and selling expenses. COP is based on the producer's actual experience and does not include any mandatory minimum general expense or profit as in "constructed value." See valuation; constructed value.

cost plus

A pricing method whereby the purchaser agrees to pay the vendor an amount determined by the costs incurred by the vendor to produce the goods or services purchased, plus a fixed percentage of that cost for profit.

costs of manufacture (COM)

(U.S. Customs) In the context of dumping investigations, the costs of manufacture, COM, is equal to the sum of the materials, labor and both direct and indirect factory overhead expenses required to produce the merchandise under investigation. See dumping.

cottage industry

(economics) An industry dependent upon a labor force that works out of their own homes and often with their own equipment.

Council of Economic Advisers

(U.S. government) A three-member executive office of the president which analyzes the U.S. economy, advises the president on economic developments, appraises programs and policies, and recommends policies for economic growth to the president. Address: Council of Economic Advisors, Old Executive Office Building, 17th St. & Pennsylvania Ave. NW, Washington, DC 20502; Tel: (202) 395-5084; http://www.whitehouse.gov/WH/EOP/CEA/html/CEA.html, (case-sensitive).

Council of Europe

A regional alliance established in May 1949 to encourage unity and social and economic growth among members, which currently include: Austria, Belgium, Bulgaria, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, the Netherlands, Norway, Poland Portugal, San Marino, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Address: The Council of Europe, Point 1, F67075 Strasbourg Cedex, FranceTel: [33] (3) 88-41-20-00; Fax: [33] (3) 88-41-27-81; http://www.coe.fr/index.asp.

Council on Security and Cooperation in Europe

See Conference on Security and Cooperation in Europe.

counteroffer

(law) A reply to an offer that adds to, limits, or modifies materially the terms of the offer. A seller, for example, who accepts a buyer's offer, but informs the buyer that the goods will be of a different color has made a counteroffer. See acceptance; offer.

counterpurchase

See countertrade.

countertrade

An umbrella term for several sorts of trade in which the seller is required to accept goods or other instruments or trade, in partial or whole payment for its products.

Countertrade transactions include barter, buy-back or compensation, counterpurchase, offset requirements, swap, switch, or triangular trade, evidence or clearing accounts.

The main types are:

(a) Counterpurchase (one of the most common forms of countertrade), where an exporter agrees to purchase a quantity of unrelated goods or services from a country in exchange for and in approximate value to the goods he has sold.

(b) Offset, where the exporter agrees to use goods and services from the buyer's country in the product being sold. Offsets may be direct or indirect, depending on whether the goods and services are integral parts of the product. In a direct offset, a U.S. manufacturer selling a product in a country uses a component that is made in the purchasing country. In an indirect offset, the exporter would buy products made in the purchasing country that are peripheral to the manufacture of its product.

(c) Compensation or buy-back, where exporters of heavy equipment, technology, or even entire facilities agree to purchase a certain percentage of the output of the new facility once it is in production.

(d) Barter, which is a simple swap of one good for another. Two parties directly exchange goods deemed to be of approximately equivalent value without any flow of money taking place.

(e) Switch trading, is a more complicated form of barter, that involves a chain of buyers and sellers in different markets. A switch arrangement permits the sale of unpaid balances in a clearing account to be sold to a third party, usually at a discount, that may be used for producing goods in the country holding the balance.

(f) Swap, where products from different locations are traded to save transportation costs. For example, Russian oil may be "swapped" for oil from a Latin American producer, so the Russian oil can be shipped to a country in South Asia, while the Latin American oil is shipped to Cuba.

(g) Reverse countertrade where an importer (a U.S. buyer of machine tools from Poland, for example) is required to export goods equivalent in value to a specified percentage of the value of the imported goods--an obligation that can be sold to an exporter in a third country.

(h) Clearing agreements between two countries, which is an agreement to purchase specific amounts of each other's products over a specified period of time, using a designated "clearing currency" in the transactions.

countervailing duties

(customs) Special duties imposed on imports to offset the benefits of subsidies to producers or exporters in the exporting country.

(GATT) The General Agreement on Tariffs and Trade (GATT) Article VI permits the use of such duties if the importing country can prove that the subsidy would cause injury to domestic industry.

(U.S.) The Executive Branch of the U.S. government has been legally empowered since the 1890s to impose countervailing duties in amounts equal to any "bounties" or "grants" reflected in products imported into the United States. Under U.S. law and the Tokyo Round Agreement on Subsidies and Countervailing Duties (of the GATT), a wide range of practices are recognized as constituting subsidies that may be offset through the imposition of countervailing duties. The Trade Agreements Act of 1979, through amendments to the Tariff Act of 1930 (both U.S. laws) established rigorous procedures and deadlines for determining the existence of subsidies in response to petitions filed by interested parties such as domestic producers of competitive products and their workers. In all cases involving subsidized products from countries recognized by the United States as signatories to the Agreement on Subsidies and Countervailing Duties, or countries which have assumed obligations substantially equivalent to those under the Agreement, U.S. law requires that countervailing duties may be imposed only after the U.S. International Trade Commission has determined that the imports are causing or threatening to cause material injury to an industry in the United States.

Countervailing duties in the U.S. can only be imposed after the International Trade Commission has determined that the imports are causing or threatening to cause material injury to a U.S. industry.

See dumping; General Agreement on Tariffs and Trade; International Trade Commission.

country desk officers

(U.S. government) Country-specific export trade specialists working at the U.S. Department of Commerce in Washington, DC. Country desk officers provide assistance to U.S. exporters on a country specific, rather than commodity specific basis. Their responsibility is to remain current on any issues that would affect U.S. exporters and travelers in the specific country. For information call the United States Department of Commerce, Tel: (202) 482-2000, or the Trade Information Center, Tel: (800) USA-TRADE. See U.S. Department of Commerce.

country groups

(U.S. export control) The U.S. Bureau of Export Administration of the U.S. Commerce Department separates countries into seven country groups designated by the symbols: Q, S, T, V, W, Y, Z. See export control classification number; Bureau of Export Administration.

country marketing plan

(U.S.) An analysis of a country's business and economic climate, giving emphasis to marketing and trade issues. Usually prepared by the U.S. embassy in the subject country and published by the U.S. Department of Commerce, International Trade Administration. Also available on CD-ROM in the National Trade Data Bank, and available from the U.S. Department of Commerce, 14th Street and Constitution Ave., Washington, DC 20230; Tel: (202) 482-2000.

country of departure

(shipping) The country from which a ship or shipment has or is scheduled to depart.

country of destination

(shipping) The country that is the ultimate destination for a ship or shipment of goods.

country of dispatch

(shipping) The country from which cargo was shipped.

country of exportation

(shipping) Usually, but not necessarily, the country in which merchandise was manufactured or produced and from which it was first exported. For example, merchandise made in Switzerland and shipped to the United States through Frankfurt, Germany, has as the country of exportation Switzerland.

country of export destination

The country where the goods are to be consumed, further processed, or manufactured, as known to the shipper at the time of exportation. If the shipper does not know the country of ultimate destination, the shipment is credited for statistical purposes to the last country to which the shipper knows that the merchandise will be shipped in the same form as when exported.

country of origin

The country where merchandise was grown, mined, or manufactured.

(U.S. Customs) In instances where the country of origin cannot be determined, transactions are credited to the country of shipment. Certain foreign trade reports show country subcodes to indicate special tariff treatment afforded some imported articles. See certificate of origin.

country risk

(economics) The financial risks of a transaction which relate to the political, economic or social instability of a country.

courier

(shipping) Attendant who accompanies shipment(s). Also, some courier companies provide a full transportation function, without accompanying attendants, offering door-to-door air service for time-sensitive documents or small packages on a same-day or next-day basis. Examples are DHL, Federal Express and TNT.

courtage

(banking) A European term for brokerage fee.

cover; coverage

See insurance coverage.

cover note

(insurance) Often also called "broker's cover note." Document issued by insurance companies or insurance brokers in lieu of insurance policies or insurance certificates which serves as proof of usual insurance notification and represents cover approval. Cover notes may be accepted under letters of credit only when they are expressly permitted.

credit arrangements

A series of programs under which service providers (such as ocean and air carriers, trucking companies, customs brokers and freight forwarders) extend credit to shippers and consignees for the payment of charges.

creditor nation

(economics) A nation that is owed more foreign currency obligations that it owes other nations. See also debtor nation.

credit risk insurance

(insurance) Insurance designed to cover risks of nonpayment for delivered goods.

critical circumstances

(U.S. Customs) A determination made by the Assistant Secretary for Import Administration as to whether there is a reasonable basis to believe or suspect that there is a history of dumping in the United States or elsewhere of the merchandise under consideration, or that the importer knew or should have known that the exporter was selling this merchandise at less than fair value, and there have been massive imports of this merchandise over a relatively short period. This determination is made if an allegation of critical circumstances is received from the petitioner. See dumping.

cross-currency exchange risk

(banking/foreign exchange) The exchange risk inherent in carrying out foreign exchange transactions in two or more currencies.

crossed check

(banking) A check that bears on its face two parallel transverse lines and that cannot be presented for cash. A bank that accepts the check may pay the proceeds only to another bank, which will credit the money to the account of the payee of the check. A crossed check may also include the words "and company." A specially crossed check contains in the crossing lines the name of the bank that will honor the check.

cross rate

(foreign exchange) Exchange rate parities which are not quoted against the dollar.

cruzeiro real

The currency of Brazil. 1Cr$=100 centavos.

cubic capacity

(shipping) The carrying capacity of a container according to measurement in cubic feet, cubic centimeters or cubic meters.

cubic foot

(measurement) A unit of volume measurement equal to 1,728 cubic inches.

currency

(banking/foreign exchange) Name given to the material form of a country's payment medium, for example, "Swiss francs, divided up into 100 centimes."

currency adjustment factor

(shipping) A surcharge on freight charges by a carrier to offset foreign currency fluctuations.

currency area

See currency zone.

currency basket

(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.

currency snake

See snake system.

currency swap

(banking/foreign exchange) System whereby an institution with funds in one currency converts them into another and enters into a forward exchange contract to recover the currency borrowed.

currency (term) of insurance

(insurance) A statement of insurance coverage expressed either in time, or for transit from two physical points. For example: one year commencing on a specific date and time, or, from point a to point b.

Formerly, the marine insurance policy covered only from the time goods were actually loaded on board an ocean vessel at the port of shipment until they were "discharged and safely landed" at the port of destination. This was later extended by adding the words "including transit by craft, raft and/or lighter to and from the vessel."

More recently, insurance coverage has included risks to a shipment of goods from the time the goods leave the warehouse for commencement of transit and continue during ordinary course of transit until delivered to final warehouse (warehouse-to-warehouse coverage) at destination, or until the expiration of 15 days (30 if destination is outside the limits of the port), whichever shall first occur. In the case of delay in excess of the time limit specified, if it arises from circumstances beyond his control, the assured is "held covered" if he gives prompt notice and pays additional premium. See also all risk; Marine Extension Clause 1943 & 1952.

currency translation

(accounting/foreign exchange) The recording in accounts of assets (or liabilities) in once currency when they are actually in another. No actual exchange of funds takes place. The World Bank, for example, translates all their assets and liabilities into U.S. dollar amounts, regardless of the actual currency in which they are denominated.

currency zone

(banking/foreign exchange) Area of validity in spatial terms of a currency; normally coincides with the national frontiers of a country because it is defined by the monetary order. A supranational currency zone arises when different currencies are connected either through convertibility or fixed exchange rates. Examples are the Franc zone and the Sterling zone.

current account

(economics) That portion of a country's balance of payments that records current (as opposed to capital) transactions, including visible trade (exports and imports), invisible trade (income and expenditures for services), profits earned from foreign operations, interest and transfer payments. See balance of payments.

current balance

(economics) The value of all exports (goods plus services) less all imports of a country over a specific period of time, equal to the sum of the trade (visible) and invisible balances plus net receipts of interest, profits and dividends from abroad. See balance of payments.

custody bill of lading

(shipping) A bill of lading issued by American warehouses as a receipt for goods stored. See bill of lading.

customer automation

(shipping) The use of carrier automation equipment on the customer's premises that aids in the processing of shipments, i.e., airbill preparations, invoicing, weighing, and tracing.

custom house

(customs) The government office where duties, tolls, or taxes placed on imports or exports are paid and vessels entered or cleared.

customized sales survey

(U.S.) A fee-based International Trade Administration service that provides firms with key marketing, pricing, and foreign representation information about their specific products. Overseas staff conduct on-site interviews to provide data in nine marketing areas about the product, such as sales potential in the market, comparable products, distribution channels, going price, competitive factors, and qualified purchasers. Address: Product Manager, Customized Sales Survey, 14th and Constitution Avenue, Room 1517, Washington, DC 20230; Tel: (202) 482-3334; Fax: (202) 482-0973.

customs

(a) A government authority designated to regulate flow of goods to/from a country and to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection. (b) The United States Customs Service. See United States Customs Service. (c) Taxes imposed by a government on the import or export of items. See also tariff.

customs bond

See bond, surety.

customs bonded warehouse

(customs) A federal warehouse where goods remain until duty has been collected from the importer. Goods under bond are also kept here. See surety; bond; in bond; bonded warehouse.

customs broker

(U.S. Customs) An individual or firm licensed by the U.S. Customs Service to act for importers in handling the sequence of custom formalities and other details critical to the legal and speedy exporting and importing of goods.

customs classification

(customs) The particular category in a tariff nomenclature in which a product is classified for tariff purposes; or, the procedure for determining the appropriate tariff category in a country's nomenclature system used for the classification, coding and description of internationally traded goods. See Harmonized System; Harmonized Tariff Schedule of the United States.

Customs Cooperation Council (CCC)

An intergovernmental organization created in 1953 and headquartered in Brussels, through which customs officials of participating countries seek to simplify, standardize, and conciliate customs procedures. The Council has sponsored a standardized product classification, a set of definitions of commodities for customs purposes, a standardized definition of value and a number of recommendations designed to facilitate customs procedures. See Harmonized System.

Customs Cooperation Council Nomenclature

A customs tariff system formerly used by many countries, including most European nations but not the United States. It has been superseded by the Harmonized System Nomenclature to which most major trading nations, including the U.S., adhere. See Harmonized System; Harmonized Tariff Schedule of the United States.

customs court

(U.S. Customs) A U.S. Customs Service court based in New York, NY, consisting of three 3-party divisions to which importers may appeal or protest classification and valuation decisions and certain other actions taken by the U.S. Customs Service.

customs declaration

(U.S. Customs) An oral or written statement attesting to the correctness of description, quantity, value, etc., of merchandise offered for importation into the United States. See entry.

customs duty

(customs) A tax levied and collected by custom officials in discharging the tariff regulations on imports. See also tariff.

customs harmonization

(customs) International efforts to increase the uniformity of customs nomenclatures and procedures in cooperating countries. The Customs Cooperation Council has developed an up-to-date and internationally accepted "Harmonized Commodity Coding and Description System" for classifying goods for customs, statistical, and other purposes. See Customs Cooperation Council; Harmonized System; Harmonized Tariff Schedule of the United States.

customshouse broker

See customs broker.

customs import value

(U.S. Customs) U.S. Customs Service appraisal value of merchandise. Methodologically, the Customs value is similar to Free Alongside Ship (FAS) value since it is based on the value of the product in the foreign country of origin, and excludes charges incurred in bringing the merchandise to the United States (import duties, ocean freight, insurance, and so forth); but it differs in that the U.S. Customs Service, not the importer or exporter, has the final authority to determine the value of the good. See valuation.

Customs Information Exchange

A clearing house of information for U.S. Customs Service officers. See United States Customs Service.

customs invoice

(customs) An invoice made out on a special form prescribed by the customs authorities of the importing country. Used only in a few countries. See also commercial invoice.

customs tariff

(customs) A schedule of charges assessed by government on imported or exported goods. See Harmonized System; Harmonized Tariff Schedule of the United States.

customs territory

(U.S. Customs) The customs territory of the United States consists of the 50 states, the District of Columbia, and Puerto Rico. Foreign trade zones are not considered customs territory of the United States. See United States Customs Service; foreign trade zone.

customs union

(customs) An agreement by two or more trading countries to dissolve trade restrictions such as tariffs and quotas among themselves, and to develop a common external policy or trade (e.g., trade agreement).