Dictionary Definitions

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identical merchandise

(U.S. Customs) In establishing the customs value of merchandise exported to the United States, identical merchandise is merchandise that is: (1) Identical in all respects to the merchandise being appraised, (2) Produced in the same country as the merchandise being appraised, and (3) Produced by the same person as the merchandise being appraised.

If merchandise meeting all these criteria cannot be found, then identical merchandise is merchandise satisfying the first two criteria but produced by a different person than the producer of merchandise being appraised.

Note: Merchandise can be identical to the merchandise being appraised and still show minor differences in appearance.

Exclusion: Identical merchandise does not include merchandise that incorporates or reflects engineering, development, artwork, design work, and plans and sketches provided free or at reduced cost by the buyer and undertaken in the United States.

See valuation; transaction value; computed value; similar merchandise.

immediate delivery

(U.S. Customs) An alternate U.S. Customs entry procedure which provides for immediate release of a shipment in certain cases. Application must be made to Customs for a Special Permit for Immediate Delivery on Customs Form 3461 prior to the arrival of the merchandise. If the application is approved, the shipment is released expeditiously following arrival. An entry summary must then be filed in proper form and estimated duties deposited within 10 working days of release. See entry.

immediate transportation entry

(U.S. Customs) A form of U.S. Customs entry which allows imported merchandise to be forwarded from the port of original entry to another final destination for customs clearance. Merchandise travels in bond, without appraisal, from the original port of entry to the final destination, where it is then inspected by customs. See entry.

immigration

The entry of foreign nationals into a country for the purpose of establishing permanent residence. See also green card.

implied agency

implied conditions

(insurance) Certain implied conditions are not written into marine insurance policies, but they are so basic to understanding between underwriter and assured that the law gives them much the same effect as if written. Thus, it is implied: (1) that the assured will exercise the utmost good faith in disclosing to his underwriter all facts material to the risk when applying for insurance; (2) that the generally established usages of trade applicable to the insured subject matter are followed; and (3) that the assured shall not contribute to loss through willful fault or negligence. See special marine policy.

implied volatility

See volatility.

implied warranties

(insurance) Legal decisions have established two important implied warranties in marine insurance policies, that of legality of the venture and that of seaworthiness. The latter is of little concern today since insurance policies commonly waive the warranty of seaworthiness by stating that seaworthiness is admitted as between the assured and the insurer. The insurer is not at liberty, however, to waive the implied warranty of legality. Such a waiver would be against public policy and the law of the land. See special marine policy.

(a) To receive goods and services from abroad. (b) An imported item.

import credit

(banking) A commercial letter of credit issued for the purpose of financing the importation of goods. See letter of credit.

import duty

(customs) Any tax on items imported. See also tariff; Harmonized Tariff Schedule of the United States.

The individual, firm or legal entity that brings articles of trade from a foreign source into a domestic market in the course of trade.

importer number

(U.S. Customs) An identification number assigned by the U.S. Customs Service to each importer, used to track entries and other transactions.

Importers Manual USA

(publication) A reference book detailing specific requirements for importing 135 different product groups into the United States, plus extensive sections on banking, letters of credit, foreign exchange, packing, shipping, insurance, U.S. Customs Entry, and a reference section for the 100 top exporting countries. Published by World Trade Press, 1450 Grant Ave., Novato, CA 94945; Tel: [1] (415) 898-1124; Fax: [1] (415) 898-1080; http://www.worldtradepress.com.

import license

(customs) A document required and issued by some national governments authorizing the importation of goods.

import quota

(customs) A protective ruling establishing limits on the quantity of a particular product that can be imported. Quotas are a means of restricting imports by the issuance of licenses to importers, assigning each a quota, after determination of the total amount of any commodity which is to be imported during a period. Import licenses may also specify the country from which the importer must purchase the goods. See quota; tariff quotas.

import quota auctioning

(customs) The process of auctioning the right to import specified quantities of quota-restricted goods.

import relief

Any of several measures imposed by a government to temporarily restrict imports of a product or commodity to protect domestic producers from competition.

import restrictions

Any one of a series of tariff and non-tariff barriers imposed by an importing nation to control the volume of goods coming into the country from other countries. May include the imposition of tariffs or import quotas, restrictions on the amount of foreign currency available to cover imports, a requirement for import deposits, the imposition of import surcharges, or the prohibition of various categories of imports. See tariff; non-tariff barriers.

Commodities of foreign origin as well as goods of domestic origin returned to the producing country with no change in condition, or after having been processed and/or assembled in other countries.

(U.S.) For statistical purposes, imports to the U.S. are classified by type of transaction:

(a) Merchandise entered for immediate consumption. ("duty free" merchandise and merchandise on which duty is paid on arrival);

(b) Merchandise withdrawn for consumption from U.S. Customs bonded warehouses, and U.S. Foreign Trade Zones;

(c) Merchandise entered into U.S. Customs bonded warehouses and U.S. Foreign Trade Zones from foreign countries.

import service

See export service.

import sensitive producers

Domestic producers whose economic viability is threatened by competition (quality, price or service) from imported products.

imports for consumption

(U.S. Customs) The total of merchandise that has physically cleared through U.S. Customs either entering domestic consumption channels immediately or entering after withdrawal for consumption from bonded warehouses under U.S. Customs custody or from U.S. Foreign Trade Zones. Many countries use the term "special imports" to designate statistics compiled on this basis. See also consumption entry.

imports of goods and services (U.S.)

(economics) Represent the sum of all payments for merchandise imports, military expenditures, transportation and travel costs, other private and U.S. government services, and income and service payments to foreign parent companies by their affiliates operating in the United States. By far the largest component of this category is merchandise imports, which includes all goods bought or otherwise transferred from a foreign country to the United States.

import substitution

A strategy which emphasizes the replacement of imports with domestically produced goods, rather than the production of goods for export, to encourage the development of domestic industry.

A tax, usually an import duty. See also tariff.

(law/customs) (a) To seize or hold. (b) To place in protective custody by order of a court (e.g., impounded property, impounded records).

(U.S. Customs) A procedure under which goods are transported or warehoused under customs supervision until they are either formally entered into the customs territory of the United States and duties paid, or until they are exported from the United States.

The procedure is so named because the cargo moves under the carrier's bond (financial liability assured by the carrier) from the gateway sea port or airport and remains "in bond" until customs releases the cargo at the inland customs point.

This procedure is used in several ways:

(1) To postpone the payment of import duties on high duty merchandise, (such as alcoholic beverages), until they are needed,

(2) To hold goods that may or may not meet a requirement of customs until a determination is made and the importer decides to enter the goods or re-export them,

(3) To effect the transport of goods originating in one foreign country through the United States for export to a third country without having to pay customs duties.

See also temporary importation under bond.

in bond goods

in bond shipment

(customs) An import or export shipment which has not been cleared by U.S. Customs officials. See in bond.

in-bond system

(U.S. Customs) A part of U.S. Customs' Automated Commercial System, controls merchandise from the point of unloading at the port of entry or exportation. The system works with the input of departures (from the port of unlading), arrivals, and closures (accountability of arrivals). See Automated Commercial System; in bond.

(economics) A motivational force that stimulates people to greater activity or increased efficiency.

Inchmaree Clause

(insurance) An insurance policy extension to cover loss resulting from a latent defect of the carrying vessel's hull or machinery which is not discoverable by due diligence. (So-called for a celebrated legal decision involving a vessel of that name.) Latent defect is not, by law, recoverable from the vessel owner, and the Inchmaree Clause thus plugs a gap that would otherwise exist in complete insurance protection. Loss resulting from errors of navigation or management of the vessel by the master or the crew, and for which the vessel owner is likewise relieved of liability by law, is also covered by the Inchmaree Clause. See special marine policy.

(economics) Money or its equivalent, earned or accrued, arising from the sale of goods or services.

Incorporated (Inc.)

(South Africa) Designation for a private limited liability corporation with limited liability to shareholders but with joint and several liability to the directors.

(United States) Designation for a corporation with limited liability to shareholders.

Incoterms 1990

A codification of international rules for the uniform interpretation of common contract clauses in export/import transactions. Developed and issued by the International Chamber of Commerce (ICC) in Paris. The version which is currently valid is publication no. 460 from 1990. The thirteen Incoterms 1990 are:

(1) Ex Works (EXW),

(2) Free Carrier (FCA),

(3) Free Alongside Ship (FAS),

(4) Free On Board FOB),

(5) Cost and Freight CFR),

(6) Cost, Insurance and Freight (CIF),

(7) Carriage Paid To (CPT),

(8) Carriage and Insurance Paid To (CIP),

(9) Delivered At Frontier (DAF),

(10) Delivered Ex Ship (DES),

(11) Delivered Ex Quay (DEQ),

(12) Delivered Duty Unpaid (DDU), and

(13) Delivered Duty Paid (DDP).

Refer to individual listings for definitions of these terms. For a book fully describing responsibilities of the seller and the buyer in each term, contact: International Chamber of Commerce (ICC), 38, Cours Albert 1er, 75008 Paris, France; Tel: [33] (1) 49-53-28-28; Fax: [33] (1) 49-53-29-42; In U.S. contact: ICC Publishing, Inc., 156 Fifth Avenue, New York, NY 10010; Tel: [1] (212) 206-1150; Fax: [1] (212) 633-6025.

(insurance/law) To compensate for actual loss sustained. Many insurance policies and all bonds promise to "indemnify" the insureds. Under such a contract, there can be no recovery until the insured has actually suffered a loss, at which time he or she is entitled to be compensated for the damage that has occurred (i.e. to be restored to the same financial position enjoyed before the loss).

(insurance/law) An agreement to reimburse another individual or legal entity who incurs a loss that is covered by the agreement. An indemnity against loss may be partial or whole. A buyer may obtain indemnity insurance, for example, to insure against damage to or destruction of goods that may occur after title has passed to the buyer.

(finance) A bond protecting the insured against losses from others failing to fulfill their obligations.

(investments) An option to buy or sell a specific quantity of a stock at a state price within a given time period.

(law) An act of legislation, granting exemption from prosecution to certain people.

independent action

(shipping) The right of a conference member to depart from the common freight rates, terms or conditions of the conference without the need for prior approval of the conference. See conference.

indexed currency borrowings

(banking/finance) Borrowings in a foreign currency where the rate of interest is linked to an agreed scale.

indexed currency option note

(banking/finance) Note denominated and paying interest in one currency but whose redemption value is linked to an exchange rate for another currency. Also called Heaven and Hell Bond.

individual validated license

(U.S.) Written approval by the U.S. Department of Commerce granting permission, which is valid for 2 years, for the export of a specified quantity of products or technical data to a single recipient. Individual validated licenses also are required, under certain circumstances, as authorization for re export of U.S.-origin commodities to new destinations abroad. See United States Department of Commerce.

indorsement

See endorsement.

industrial list

The Coordinating Committee for Multilateral Export Controls (CoCom) industrial list contains dual-use items whose export are controlled for strategic reasons. See Coordinating Committee for Multilateral Export Controls.

industrial policy

(economics) Encompasses traditional government policies intended to provide a favorable economic climate for the development of industry in general or specific industrial sectors. Instruments of industrial policy may include tax incentives to promote investments or exports, direct or indirect subsidies, special financing arrangements, protection against foreign competition, worker training programs, regional development programs, assistance for research and development, and measures to help small business firms. Historically, the term industrial policy has been associated with some degree of centralized economic planning or indicative planning, but this connotation is not always intended by its contemporary advocates.

Industry Consultations Program

(U.S.) An advisory committee structure created by the Trade Act of 1974, expanded by the Trade Agreements Act of 1979, and amended by the Omnibus Trade and Competitiveness Act of 1988. Jointly sponsored by the U.S. Department of Commerce and the U.S. Trade Representative, the program includes over 500 industry executives who provide advice and information to the U.S. government on trade policy matters. The advisors focus on objectives and bargaining positions for multilateral trade negotiations, bilateral trade negotiations, and other trade-related matters. Members of the committees are appointed by the Secretary of Commerce and the U.S. Trade Representative.

The present structure consists of 17 Industry Sector Advisory Committees (ISACs), 3 Industry Functional Advisory Committees (IFACs), a Committee of Chairs, and an Industry Policy Advisory Committee (IPAC). The focus of the 3 Functional Advisory Committees are: (1) Customs Matters, (2) Standards, and (3) Intellectual Property Rights.

The focus of the 17 Industry Sector Advisory Committees are: (1) Aerospace Equipment, (2) Capital Goods, (3) Chemicals and Allied Products, (4) Consumer Goods, (5) Electronics and Instrumentation, (6) Energy, (7) Ferrous Ores and Metals, (8) Footwear, Leather, and Leather Products, (9) Building Products and Other Materials, (10) Lumber and Wood Products, (11) Nonferrous Ores and Metals, (12) Paper and Paper Products, (13) Services, (14) Small and Minority Business, (15) Textiles and Apparel, (16) Transportation, Construction, and Agricultural Equipment, (17) Wholesaling and Retailing.

See Advisory Committee on Trade Policy and Negotiations.

Industry Functional Advisory Committee

See Industry Consultations Program.

Industry Policy Advisory Committee

See Industry Consultations Program.

Industry Sector Advisory Committee

See Industry Consultations Program.

Industry Subsector Analysis

(U.S.) Overseas market research for a given industry subsector (such as cardiological equipment for the medical equipment industry) that presents basic information about a foreign market such as market size, the competitive environment, primary end users, best prospect products, and market access information. Available as individual reports from the U.S. Department of Commerce, or on the National Trade Data Bank, U.S. Dept. of Commerce, Office of Business Analysis, HCHB Room 4885, Washington, DC 20230; Tel: (202) 482-1986. For individual reports, call your district Department of Commerce office.

infant industry argument

(economics) The view that "temporary protection" for a new industry or firm in a particular country through tariff and non-tariff barriers to imports can help it to become established and eventually competitive in world markets. Historically, new industries that are soundly based and efficiently operated have experienced declining costs as output expands and production experience is acquired. However, industries that have been established and operated with heavy dependence on direct or indirect government subsidies have sometimes found it difficult to relinquish that support. The rationale underlying the Generalized System of Preferences is comparable to that of the infant industry argument. See Generalized System of Preferences.

inflammable

inflammable liquids

See flammable liquids.

(economics) Loss of purchasing power of money, caused by growth of the amount of money in circulation which, if the supply of goods stays the same or only increases at a slower rate, leads to an increase in prices.

in-flight survey (IFS)

(U.S.) A survey of U.S. and foreign travelers departing the U.S. as a means of obtaining data on visitor characteristics, travel patterns and spending habits, and for supplying data on the U.S. international travel dollar accounts as well as to meet balance of payments estimation needs. The IFS covers about 70 percent of U.S. carriers and 35 percent of foreign carriers, who voluntarily choose to participate. Sample results are expanded to universe estimates to account for non response of passengers on each sampled flight, for coverage of all flights on each major airline route, and for all international routes. The basis for the expansion is the number of passengers departing the United States, obtained from the Immigration and Naturalization Service.

informal entry

(U.S. Customs) A simplified import entry procedure accepted at the option of Customs for any noncommercial shipment (baggage) and any commercial shipment not over $1,000 in value. See entry.

infrastructure

(economics) The basic structure of a nation's economy, including transportation, communications, and other public services, on which the economic activity relies.

inherent vice

(shipping/insurance) Damage to goods which one can foresee is bound to occur during any normal transit, and which arises solely because of the nature or condition of the goods shipped. Such damage is said to arise from "inherent vice" which may be defined as an internal cause rather than an external cause of damage. An example of damage from inherent vice is deterioration of imperfectly cured skins.

Exclusion of insurance coverage for inherent vice is implied in every cargo policy. This type of exclusion is reinforced by the words "from any external cause" in the "all risks" coverage. The word "risk" itself implies that only fortuitous losses are intended to be covered. Insurance protects against hazards, not certainties.

initial margin

(finance/foreign exchange) The amount of margin which has to be deposited with the clearing house both by the buyer and the seller through the respective broker and/or bank in order to establish a position in a futures contract.

initial negotiating right

(GATT) A right held by a General Agreement on Tariffs and Trade (GATT) country to seek compensation for an impairment of a given bound tariff rate by another GATT country. INRs stem from past negotiating concessions and allow the INR holder to seek compensation for an impairment of tariff concessions regardless of its status as a supplier of the product in question. See General Agreement on Tariffs and Trade.

(U.S.) A finding by the U.S. International Trade Commission that imports are causing, or are likely to cause, harm to a U.S. industry. An injury determination is the basis for a Section 201 case. It is also a requirement in all antidumping and most countervailing duty cases, in conjunction with Commerce Department determinations on dumping and subsidization. See dumping; countervailing duty; Section 201.

inland bill of lading

(shipping) A bill of lading used in transporting goods overland to the exporter's international carrier. Although a through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipments. See bill of lading.

inland carrier

(shipping) A transportation line which hauls import/export traffic between ports and inland points.

in personam

(law) Against the person. In personam jurisdiction, for example, is a court's authority in a legal action to subject a person to its order or judgment.

(law) Against the thing. In rem jurisdiction, for example, is a court's authority in a legal action to determine title to, or affect interests in, property of the parties.

See bankruptcy.

inspection certificate

A document confirming that goods have been inspected for conformity to a set of industry, customer, government or carrier specifications prior to shipment. Inspection certificates are generally obtained from independent, neutral testing organizations.

(law) Any written document that gives formal expression to a legal agreement or act. See also financial instrument.

insurable interest

(insurance) The financial interest of an individual or business in property, even if that individual is not the owner of the property.

A typical case of insurable interest is where title to goods has passed from the seller to the buyer, but where the seller has yet to receive payment, and still has exposure for loss.

Example 1: When a seller sells on FOB inland point terms, he transfers the title to the buyer before the commencement of the ocean voyage. In this case the obligation to place marine and war risk insurance rests, strictly speaking, with the buyer. However, it is customary in many trades for the seller on FOB terms (or similar terms), to obtain insurance, as well as ocean freight space, for account of the buyer.

This is, in effect, an agency relationship. It can be provided for by a policy clause reading: "to cover all shipments made by or to the assured for their own account as principals, or as agents for others and in which they have an insurable interest, or for the account of others from which written instructions to insure them have been received prior to any known or reported loss, damage or accident prior to sailing of vessel."

Example 2: The seller on FOB or other terms, under which the title passes to the buyer at some inland point of departure, will have a financial interest in the goods until payment has been received. This situation arises when the terms of payment call for sight draft against documents, or for acceptance at 30-60-90 days sight, or for open account. Under such circumstances, the seller will be well advised to place his own insurance to protect himself in the event that the loss or damage to the shipment impairs the buyer's desire to make payment as originally contemplated. For example, the buyer may be uninsured, or the buyer's coverage may be inadequate because of under-insurance or restricted conditions. The buyer's insurance company may be less liberal in loss adjustments than would the insurer of the seller or, because of currency restrictions, a foreign company may be hampered in its ability to transmit funds. See contingency insurance.

(general) A method whereby those concerned about some form of hazard contribute to a common fund usually an insurance company, out of which losses sustained by the contributors are paid.

(law) A contractual relationship that exists when one party (the insurer), for a consideration (the premium), agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils), or to pay in behalf of the insured all reasonable sums for which he may be liable to a third party (the claimant).

insurance broker

(insurance) An individual or firm who represents buyers of insurance and deals with insurance companies or their agents in arranging for insurance coverage for the buyer.

An insurance agent represents a single insurance company whereas an insurance broker is free to obtain insurance coverage from any insurance company.

insurance certificate

(insurance) A document indicating the type and amount of insurance coverage in force on a particular shipment. Used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.

In some cases a shipper may issue a document that certifies that a shipment has been insured under a given open policy, and that the certificate represents and takes the place of such open policy, the provisions of which are controlling.

Because of the objections that an instrument of this kind did not constitute a "policy" within the requirements of letters of credit, it has become the practice to use a special marine policy. A special marine policy makes no reference to an open policy and stands on its own feet as an obligation of the underwriting company.

See special marine policy; declaration; bordereau; open policy.

insurance company

(insurance) An organization chartered under state or provincial laws to act as an insurer. In the United States, insurance companies are usually classified as fire and marine, life, casualty, and surety companies and may write only the kinds of insurance for which they are specifically authorized by their charters.

insurance coverage

(insurance) The total amount of insurance that is carried.

insurance document

See insurance certificate.

insurance policy

(insurance) Broadly, the entire written contract of insurance. More specifically, it is the basic written or printed document, as well as the coverage forms and endorsement added to it.

insurance premium

(insurance) The amount paid to an insurance company for coverage under an insurance policy.

(insurance) The person(s) protected under an insurance contract (policy).

insured value

(insurance) The combined value of merchandise, inland freight, ocean freight, cost of packaging, freight forwarding charges, consular fees, and insurance cost, for which insurance is obtained.

(insurance) The party to the insurance contract who promises to indemnify losses or provide service; the insurance company.

integrated cargo service

(shipping) A blend of all segments of the cargo system providing the combined services of carrier, forwarder, handlers and agents.

integrated carriers

(shipping) Carriers that have both air and ground fleets; or other combinations, such as sea, rail, and truck. Since they usually handle large volumes, they are often less expensive and offer more diverse services than regular carriers.

intellectual property

(law) An original work that can be copyrighted, patented, or registered as a trademark or service mark. Ownership conferring the right to possess, use, or dispose of products created by human ingenuity, including patents, trademarks and copyrights. See copyright; patent; service mark; trademark.

intellectual property rights

(law) The ownership of the right to possess or otherwise use or dispose of products created by human ingenuity. See copyright; patent; service mark; trademark.

(shipping) A reference which may appear on marine/ocean bills of lading, non-negotiable sea waybills and multimodal transport documents where the carrier reserves the right to change the port of loading, the ship or the port of discharge. Examples: "intended port of shipment Hamburg," "intended ocean vessel MV Swissahoi," "intended port of discharge Hong Kong."

inter absentee

(law) Among absent parties. An inter absentee contract, for example, is made between parties who do not meet face-to-face.

Interagency Group on Countertrade

(U.S.) Established in December 1988 under Executive Order 12661, reviews policy and negotiates agreements with other countries on countertrade and offsets. The IGC operates at the Assistant Secretary level, with the Department of Commerce as chair. Membership includes 11 other agencies: the Departments of Agriculture, Defense, Energy, Justice, Labor, State, Treasury, the Agency for International Development, the Federal Emergency Management Agency, the U.S. Trade Representative, and the Office of Management and Budget. Contact: Assistant Secretary of Trade Development, Office for Counter Trade, U.S. Department of Commerce, 14th Street and Constitution Ave. NW, Washington, DC 20230; Tel: [1] (202) 482-1461. See countertrade; offsets.

Inter-American Development Bank

A regional financial institution established in 1959 to advance the economic and social development of 27 Latin American member countries. Address: Inter-American Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [1] (202) 623-1000; http://www.iadb.org.

interbank dealings

(banking) Dealings between the banks.

interbank offered rate (IBOR)

(banking/finance) Rate of interest offered by banks for their loans to the most creditworthy banks for a large loan, for a specific period and in a specific currency. The best known one is the London Interbank Offered Rate (LIBOR), but they also exist for Abu Dhabi (ADIBOR), Amsterdam (AIBOR), Bahrein (BIBOR), Brussels (BRIBOR), Hong Kong (HIBOR) or (HKIBOR), Kuwait (KIBOR), Luxembourg (LUXIBOR), Madrid (MIBOR), Paris (PIBOR) (occasionally known as taux interbancaire offert à Paris - TIOP), Saudi Arabia (SAIBOR), Singapore (SIBOR), 6 month SDRs (SDRIBOR), Zurich (ZIBOR) and other financial centers.

interchange agreement

(shipping) An agreement which fixes specific accountability for use and maintenance of carrier-owned equipment. It formalizes terms and conditions under which equipment will be leased, in order to protect the carrier's financial and legal interest in the operation of the leased equipment.

interchange point

(shipping) A location where one carrier delivers freight to another carrier.

Interessantelskab (I/S)

(Denmark, Norway) Designation for a general partnership, in which all partners have joint and several liability.

interest arbitrage

(banking) The attempt to make a profit out of differing interest rates for various maturities and/or various instruments. See arbitrage.

interline shipping

(shipping) The movement of a single shipment of freight via two or more carriers. See intermodal; coordinated movement; intermodal compatibility.

interlocutory

(law) Temporary or interim. An interlocutory injunction, for example, may be granted pending trial as a temporary restraint against a party before final judgment is rendered.

intermediate consignee

A bank, forwarding agent, or other intermediary (if any) which acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.

intermodal transport

(shipping) The coordinated transport of freight, especially in connection with relatively long-haul movements using any combination of freight forwarders, piggyback, containerization, air-freight, ocean freight, assemblers, motor carriers.

intermodal compatibility

(shipping) The capability which enables a shipment to be transferred from one form of transport to another, as from airplane to highway truck, to railway freight car, to ocean vessel.

International Air Transport Association (IATA)

A trade association serving airlines, passengers, shippers, travel agents, and governments. Address: International Air Transport Association, 800 Place Victoria, P.O. Box 113, Montreal, Quebec H4Z 1M1; Tel: [1] (514) 874-0202; Fax: [1] (514) 874-9632; www.iata.org.

International Anticounterfeiting Coalition

A non-profit organization located in Washington, DC that seeks to advance intellectual property rights protection on a worldwide basis by promoting laws, regulations, and directives designed to render theft of intellectual property rights unattractive and unprofitable. Address: International Anticounterfeiting Coalition, 1620 L Street NW, Washington D.C. 20036; Tel: [1] (202) 223-5728; Fax: (202) 872-5848; http://iacc.org/iacc.

International Atomic Energy Agency (IAEA)

The primary international organization that enforces a system of safeguards to ensure that non-nuclear weapons states do not divert shipments of sensitive equipment from peaceful applications to the production of nuclear weapons. Before a supplier state of nuclear materials or equipment may approve an export to a non-nuclear weapons NPT (Nuclear Non-Proliferation Treaty) signatory state, it must receive assurances that the recipient will place the material under IAEA safeguards. Subsequent to shipment, the recipient state must allow IAEA officials to verify the legitimate end use of the exported materials or equipment.

IAEA, established in July 1957, gives advice and technical assistance to developing countries on nuclear power development, nuclear safety, radioactive waste management, and related efforts. Safeguards are the technical means applied by the IAEA to verify that nuclear equipment or materials are used exclusively for peaceful purposes. Address: International Atomic Energy Agency, Vienna International Centre, Wagramerstrasse 5, Postfach 100, A-1400 Vienna, Austria; Tel: [43] (1) 23-600; Telex: 112645 ATOMA; Fax: [43] (1) 23-4564.

International Atomic Energy List

One of three lists maintained by the Coordinating Committee on Multilateral Export Controls (CoCom). The IAEL, comprised strictly of nuclear-related items that are also of commercial value, consists of: materials, facilities, nuclear-related equipment, and software. See Coordinating Committee on Multilateral Export Controls.

International Bank for Reconstruction and Development (The World Bank)

(banking) The International Bank for Reconstruction and Finance (IBRF) was proposed at Bretton Woods on July 1944, commencing operation in June 1946. Originally established to help countries reconstruct their economies after World War II. IBRD, commonly referred to as the World Bank, now assists developing member countries by lending to government agencies, or by guaranteeing private loans for such projects as agricultural modernization or infrastructural development. Address: International Bank for Reconstruction and Development, 1818 H Street NW, Washington, DC 20433; Tel: [1] (202) 477-1234. See also International Monetary Fund; World Bank; World Bank Group; http://www.worldbank.org.

international banking facility (IBF)

(U.S.) One of four categories of foreign banking in the United States. An IBF is a set of asset and liability accounts that is segregated and limited to financing international trade.

International Buyer Program

(U.S.) (Formerly Foreign Buyer Program) A joint industry-U.S. International Trade Administration program to assist exporters in meeting qualified foreign purchasers for their product or service at trade shows held in the United States. ITA selects leading U.S. trade shows in industries with high export potential. Each show selected for the FBP receives promotion through overseas mailings, U.S. embassy and regional commercial newsletters, and other promotional techniques. ITA trade specialists counsel participating U.S. exhibitors. Contact: International Buyer Program, International Trade Administration, Department of Commerce, Washington, DC 20230; Tel: [1] (202) 482-0481; http://www.ita.doc.gov/uscs/uscsibp.html.

International Center for Settlement of Investment Disputes (ICSID)

(banking) A separate organization of the World Bank which encourages greater flows of investment capital by providing facilities for the conciliation and arbitration of disputes between governments and foreign investors. The ICSID also conducts and publishes research in foreign-investment law. Address: International Centre for Settlement of Investment Disputes, 1818 H Street NW, Washington, DC 20433; Tel: [1] (202) 477-1234; Fax: [1] (202) 477-1269.

International Chamber of Commerce (ICC)

A non-governmental organization serving as a policy advocate for world business. Members in 110 countries comprise tens of thousands of companies and business organizations. The ICC aims to facilitate world trade, investment, and an international free market economy through consultation with other inter-governmental organizations.

The ICC was founded in Atlantic City in 1919. It now encompasses associations and companies from all branches of industry. As an institution of international economic self-administration, it operates through expert commissions, sub-committees and working groups to address questions which are of importance for the international business community. These include, for example, contract and delivery clauses (Incoterms 1990); standardization of means of payment, (Uniform Rules for Collection, Uniform Customs and Practice for Documentary Credits, Uniform Rules for Demand Guarantees); arbitral jurisdiction (Rules of Conciliation and Arbitration); questions relating to such issues as competition, foreign investments, and transportation.

The ICC also offers various services to the business community such as the ATA Carnet system. The ICC publishes many books and references which are valuable to the international trade community. Address: International Chamber of Commerce, 38 Cours Albert 1er , 75008 Paris, France; Tel: (1) 49-53-28-28; Fax: (1) 49-53-29-42; http://www.uscib.org; For U.S. representative, contact: U.S. Council for International Business, 1212 Avenue of the Americas, New York, NY 10036; Tel: (212) 354-4480, or, for ICC publications in the U.S. contact ICC Publishing, Inc., 156 Fifth Avenue, New York, NY 10010; Tel: [1] (212) 206-1150; Fax: [1] (212) 633-6025. Refer to the Appendix for a list of ICC publications.

International Cocoa Agreement

See international commodity agreement.

International Coffee Agreement

See international commodity agreement.

international commodity agreement

An international understanding, usually reflected in a legal instrument, relating to trade in a particular basic commodity, and based on terms negotiated and accepted by most of the countries that export and import commercially significant quantities of the commodity. Some commodity agreements (such as exists for coffee, cocoa, natural rubber, sugar, and tin) center on economic provisions intended to defend a price range for the commodity through the use of buffer stocks or export quotas or both. Other commodity agreements (such as existing agreements for jute and jute products, olive oil, and wheat) promote cooperation among producers and consumers through improved consultation, exchange of information, research and development, and export promotion.

International Communications Satellite Organization (Intelsat)

The organization formed under a multilateral agreement which owns, maintains, and operates the global satellite system used by over 100 participating countries. COMSAT is the United States' representative to and participant in Intelsat. Address: International Communications Satellite Organization (Intelsat), 3400 International Drive NW, Washington, DC 20008-3098; Tel: [1] (202) 944-6800; Fax: [1] (202) 944-7898.

International Congress Office (ICO)

A U.S. Travel and Tourism Administration office that persuades international associations to select the U.S. as venues for their meetings. The ICO operates out of the American Embassy in Paris. Address: International Congress Office, Embassy of the United States, 2 Avenue Gabriel, 75382 Paris Cedex 08, Paris, France; Tel: [33] (1) 42-96-12-02.

International Dairy Agreement

See international commodity agreement.

International Development Association (IDA)

An affiliate of the World Bank Group that was created in 1959 to lend money to developing countries at no interest and for a long repayment period. By providing development assistance through soft loans, IDA meets the needs of many developing countries that cannot afford development loans at ordinary rates of interest and in the time span of conventional loans. Address: International Development Association, World Bank, 1818 H Street NW, Room E1227, Washington DC 20433; Tel: [1] (202) 712-4310; Fax:[1] (202) 477-6391.

International Development Cooperation Agency (IDCA)

The U.S. coordinating body of all aspects of U.S. economic assistance and cooperation with lesser developed countries. The IDCA consists of three parts: Agency for International Development (AID), Trade and Development Program (TDP) and the Overseas Private Investment Corporation (OPIC). The Administrator of AID currently serves as the Acting Director of IDCA. Address: International Development Cooperation Agency, 320 21st St. NW, Washington, DC 20523-0001; Tel: [1] (202) 647-1850.

International Electrotechnical Commission (IEC)

The IEC was established in 1906 to deal with questions related to international standardization in the electrical and electronic engineering fields. The members of the IEC are the national committees, one for each country, which are required to be as representative as possible of all electrical interests in the country concerned: manufacturers, users, governmental authorities, teaching, and professional bodies. They are composed of representatives of the various organizations which deal with questions of electrical standardization at the national level. Most of them are recognized and supported by their governments. Address: International Electrotechnical Commission, 3 rue de Varembé, PO Box 131, 1211 Geneva 20, Switzerland; Tel: [41] (22) 34-01-50.

International Emergency Economic Powers Act (IEEPA)

(U.S. law) The IEEPA was enacted in 1977 to extend emergency powers previously granted to the President by the Trading with the Enemy Act of 1917 (which still authorized the President to exercise extraordinary powers when the United States is at war). IEEPA enables the President, after declaring that a national emergency exists because of a threat from a source outside the United States, to investigate, regulate, compel or prohibit virtually any economic transaction involving property in which a foreign country or national has an interest.

International Energy Agency (IEA)

The IEA was founded in 1974 as a forum for energy cooperation among 21 member nations. The IEA helps participating countries prepare to reduce the economic risks of oil supply disruptions and to reduce dependence on oil through coordinated and cooperative research efforts. Headquarters address: International Energy Agency, 2 rue André Pascal, 75775 Paris Cedex 16, France. U.S. office: International Energy Agency, 2001 L St. NW, Suite 700, Washington, DC 20036; Tel: [1] (202) 785-6323.

International Finance Corporation (IFC)

The IFC was established in 1956 as a member of the World Bank Group. The IFC promotes capital flow into private investment in developing countries. See World Bank Group.

International Frequency Registration Board (IFRB)

An organizational entity under the International Telecommunication Union (ITU). Located in Geneva, IFRB is composed of five full-time elected officials with a rotating chairmanship. IFRB maintains the International Frequency Register, monitors and analyzes all ITU records of frequency use around the world, and makes determinations as to whether or not certain systems are in compliance with the Radio Regulations. See International Telecommunications Union.

international investment

See foreign direct investment in the U.S.

International Jute Agreement

See international commodity agreement.

International Labor Organization (ILO)

The ILO, set up in 1919, became a specialized agency of the United Nations in 1946. The ILO seeks to promote improved working and living conditions by establishing standards that reduce social injustice. Address: International Labor Organization, 4, rue des Morillons, CH-1211, Geneva 22, Switzerland; Tel: [41] (22) 799-6111; Telex: 415647 ILO CH; Fax: [41] (22) 798-8685.

International Maritime Organization (IMO)

The International Maritime Organization, IMO, was established as a specialized agency of the United Nations in 1948. The IMO facilitates cooperation on technical matters affecting merchant shipping and traffic. It publishes "Guidelines for Packing and Securing Cargoes in Containers for Transport by Land or Sea" (Container Packing Guidelines). Address: International Maritime Organization, 4 Albert Embankment, London SE1 7SR, England; Tel: [44] (71) 735-7611; Telex: 23588; Fax: [44] (71) 587-3210.

International Maritime Satellite Organization (IMSO or INMARSAT)

An international partnership of signatories from 62 nations. The partnership provides mobile satellite capacity to its signatories, who, in turn, use the capacity to provide worldwide mobile satellite services to their maritime, aeronautical and land-mobile customers--including shipping, cruise, fishing, research and offshore exploration industries, and airlines. INMARSAT began service in 1976. COMSAT is the U.S. signatory to INMARSAT. Address: International Maritime Satellite Organization, 40 Melton Street, London NW1 2EQ, UK; Tel: [44] (171) 387-9089; Telex: 297201 INMSATG; Fax: [44] (171) 728-1044.

International Market Insights (IMI)

(U.S.) Reports prepared by staff at American embassies and consulates covering developments in a single country that are of interest to traders and investors. Topics may include: new laws, policies and procedures, new trade regulations, and marketplace changes. Available from the National Trade Data Bank CD-ROM, online via the Economic Bulletin Board, or as individual reports from the Department of Commerce. For address information, see National Trade Data Bank; Economic Bulletin Board; United States Department of Commerce.

international market research

See Industry Subsector Analysis.

International Monetary Fund (IMF)

(banking/finance/foreign exchange) An international financial institution proposed at the 1944 Bretton Woods Conference and established in 1946 that seeks to stabilize the international monetary system as a sound basis for the orderly expansion of international trade. Specifically, among other things, the Fund monitors exchange rate policies of member countries, lends them foreign exchange resources to support their adjustment policies when they experience balance of payments difficulties, and provides them financial assistance through a special "compensatory financing facility" when they experience temporary shortfalls in commodity export earnings. Membership in the fund is a prerequisite to membership in the International Bank for Reconstruction and Development.

Address: International Monetary Fund, 700 19th Street NW, Washington, DC 20431; Tel: [1] (202) 623-7430; Fax: [1] (202) 623-4661.

See Bretton-Woods Agreement; International Bank for Reconstruction and Development; World Bank Group.

International Munitions List (IML)

The IML is one of three lists controlled by the 17-member Coordinating Committee on Multilateral Export Controls (CoCom). The IML contains 23 categories and is similar in coverage, but less restrictive, than the U.S. Munitions List (USML). See Coordinating Committee on Multilateral Export Controls, United States Munitions List.

International Olive Oil Agreement

See international commodity agreement.

International Organization for Standardization.

See International Standards Organization.

International POW WOW

(U.S.) An annual trade fair, coordinated by the Travel Industry Association of America (TIA) to promote foreign tourism to the United States, which brings together over 1,200 international buyers (tour operators and wholesalers) from 55 countries. The buyers are chosen through international selection criteria and purchase packages which they sell to their respective travel retailers.

Each non-U.S. country has a chairman and the chairman has a selection committee. Each country has a quota of buyers they can send to either the U.S. or the European POW WOW. If a buyer wants to go and hasn't already been selected, they can try contacting the selection committee via the chairman. One way to find out who this is, would be to contact the Travel Industry Association of America (see address below.) U.S. sellers do not need to go through such a process. However, to have a booth at the European POW WOW they must be TIA members. They do not have to be TIA members to participate in the U.S. POW WOW. Organizer: Travel Industry Association of America, 1100 New York Ave. NW, Suite 450, Washington, DC 20005-3934; Tel: [1] (202) 408-8422; Fax: [1] (202) 408-1255. The TIA coordinates the POW WOW with the U.S. Travel and Tourism Administration of the U.S. Department of Commerce, Tel: (202) 482-0137.

International Rubber Agreement (IRA)

An international agreement among natural rubber exporting and importing nations whose purpose is to stabilize the price of rubber through import quotas, thereby protecting rubber exporting countries in the developing world from the effects of extreme price fluctuations. See international commodity agreement.

International Standards Organization (ISO)

The ISO, established in 1947, is a worldwide federation of national bodies, representing approximately 90 member countries. The scope of the International Standards Organization covers standardization in all fields except electrical and electronic engineering standards, which are the responsibility of the International Electrotechnical Commission (IEC). Together, the ISO and IEC form the specialized system for worldwide standardization--the world's largest nongovernmental system for voluntary industrial and technical collaboration at the international level.

The result of ISO technical work is published in the form of International Standards. There are, for example, ISO standards for the quality grading of steel; for testing the strength of woven textiles; for storage of citrus fruits; for magnetic codes on credit cards; for automobile safety belts; and for ensuring the quality and performance of such diverse products as surgical implants, ski bindings, wire ropes, and photographic lenses.

ISO 9000 is a new series of voluntary international quality standards. Its formal name is ISO 9000 Series of Standards. Adoption of ISO standards has become a virtual prerequisite for doing business internationally. Address: International Standards Organization, 1 rue de Varembé, PO Box 56, CH-1211 Geneva 20, Switzerland; Tel: [41] (22) 749-0111; Fax: [41] (22) 733-3430. In the United States contact: International Organization for Standards, The American National Standards Institute, 11 West 42nd St., New York, NY 10036; Tel: (212) 642-4900.

International Sugar Agreement

See international commodity agreement.

International Telecommunications Union

A specialized agency of the United Nations with responsibilities for developing operational procedures and technical standards for the use of the radio frequency spectrum, the satellite orbit, and for the international public telephone and telegraph network. There are over 160 member nations of the ITU. The Radio Regulations that result from ITU conferences have treaty status and provide the principal guidelines for world telecommunications. In the case of the U.S., they are the framework for development of the U.S. national frequency allocations and regulations. The ITU has four permanent organs: the General Secretariat, the International Frequency Registration Board (IFRB), the International Radio Consultative Committee (CCIR), and the International Telegraph and Telephone and Consultative Committee (ITTCC). Address: International Telecommunications Union, Place des Nations, CH-1211 Geneva 20, Switzerland; Tel: [41] (22) 730-5111; Fax: [41] (22) 733-7256.

International Telecommunications Satellite Organization (INTELSAT)

Created in 1964 under a multilateral agreement, INTELSAT is a nonprofit cooperative of (presently) 116 countries that jointly own and operate a global communications satellite system serving the world. The system is used primarily for international communications, and by many countries for domestic communications. In 1991, the INTELSAT system comprised a network of 16 satellites in geosynchronous orbit over the Atlantic, Indian, and Pacific Ocean regions, with service to about 1,500 international and domestic earth station antennas.

International Tin Agreement

See international commodity agreement.

International Trade Administration (ITA)

(U.S.) The trade unit of the U.S. Department of Commerce, ITA was established in 1980 to carry out the U.S. government's nonagricultural foreign trade activities and support the policy negotiations of the U.S. Trade Representative. It encourages and promotes U.S. exports of manufactured goods, administers U.S. statutes and agreements dealing with foreign trade, and advises on U.S. international trade and commercial policy. An important arm of the ITA is the United States and Foreign Commercial Service. Address: International Trade Administration, 14th Street and Constitution Avenue NW, Washington, DC 20230; Tel: [1] (202) 482-2867. See also United States Department of Commerce; United States and Foreign Commercial Service; United States Trade Representative.

International Trade Commission (ITC)

(U.S.) An independent U.S. government fact-finding agency with six commissioners who review and make recommendations concerning countervailing duty and antidumping petitions submitted by U.S. industries seeking relief from imports that benefit unfair trade practices. Known as the U.S. Tariff Commission before its mandate was broadened by the Trade Act of 1974. Address: U.S. Department of Commerce, International Trade Commission, 500 E. Street SW, Washington, D.C. 20436; Tel: [1] (202) 205-2000. See dumping; countervailing duty.

International Traffic in Arms Regulations

(U.S.) Regulations administered in the United States by the U.S. State Department to control the export of weapons and munitions.

International Union for the Protection of Literary and Artistic Works

See Berne Convention; World Intellectual Property Organization.

International Wheat Agreement

See international commodity agreement.

interstate carrier

(shipping-U.S.) A common carrier whose business extends beyond the boundaries of one state. See carrier; common carrier.

interstate commerce

(U.S.) Trade between or among several states of the United States. A seller that uses a telephone or facsimile across state lines in its transactions, or transports goods by rail or interstate roads is using interstate commerce.

Interstate Commerce Act of 1887

(U.S. law) Federal legislation regulating the practices, rates, and rules of transportation for carriers engaged in handling interstate shipments or the movement for a fee of people across state lines.

intervention

(banking/foreign exchange) Efforts by central banks and national governments to influence the exchange rates for its currency. Intervention is usually done in one of two ways: (1) The purchase of large amounts of a currency in order to bolster the price, or (2) The sale of large amounts of a currency to lower the price of the currency. Central banks can also raise interest rates in order to attract capital into the country or lower interest rates to discourage the flow of capital into the country.

intervention currency

(banking/foreign exchange) The foreign currency a country uses to ensure by means of official exchange transactions that the permitted exchange rate margins are observed. Intervention usually takes the form of purchases and sales of foreign currency by the central bank or exchange equalization fund in domestic dealings with commercial banks.

in-the-money

(foreign exchange) An option is in-the-money in the following cases: (1) Call option: market price is greater than the strike price; and (2) Put option: market price less than the strike price. For European options, replace the market price by the forward price of the underlying instrument on the expiry date of the option. See also call option; put option; strike price; European option; out-of-the-money.

intrinsic value

(banking/finance/foreign exchange) The difference between the strike price of an option and the forward price of the underlying security up to maturity, as long as the option is in-the-money. The premium of an option is made up of the time value and the intrinsic value.

in trust (goods/documents)

(banking) In documentary collections, when a bank releases documents to the importer/buyer to allow him to inspect them prior to payment.

investment climate statements

(U.S.) Reports prepared occasionally by the commercial sections of U.S. embassies for the U.S. and Foreign Commercial Service, covering 67 individual countries. The ICSs provide statistics and analysis of policies and issues effecting the climate for direct investment in the individual country. See United States and Foreign Commercial Service.

investment performance requirements

(foreign investment) Special conditions imposed on direct foreign investment by recipient governments, sometimes requiring commitments to export a certain percentage of the output, to purchase given supplies locally, or to ensure the employment of a specified percentage of local labor and management.

invisible balance

See invisible trade balance.

invisible barriers to trade

Government regulations that do not directly restrict trade, but indirectly impede free trade by imposing excessive or obscure requirements on goods sold within a country, especially imported goods. These regulations are often known to business owners within the country, because they may be required to comply with them, but are often not known by foreign businesses seeking to export their products, and therefore such regulations are "invisible." Examples include labelling requirements, sanitary standards, and size or measurement standards.

invisibles; invisible trade

(economics) Non-merchandise items such as freight, insurance, and financial services that are included in a country's balance of payments accounts (in the "current" account), even though they are not recorded as physically visible exports and imports. See balance of trade.

invisible trade balance

(economics) As contrasted with the import and export of goods--the trade balance created by the import and export of services, including consulting and advisory services, transportation services, income and expenditure on travel services, insurances, licenses, earnings and interest income from international capital movements. See balance of trade.

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. See commercial invoice.

inward foreign manifest (IFM)

(U.S. Customs) A U.S. Customs mandated document requiring the complete listing by bill of lading numbers of an arriving ship's freight being imported into the United States.

(law) By operation of law. Contract terms that are implied by a court from the conduct of the parties, for example, are enforceable ipso jure.

irrevocable letter of credit

(banking) A letter of credit which cannot be amended or canceled without prior mutual consent of all parties to the credit. Such a letter of credit guarantees payment by the bank to the seller/exporter so long as all the terms and conditions of the credit have been met.

Documentary letters of credit issued subject to the Uniform Customs and Practice for Documentary Credits (UCPDC) Publication No. 500 are deemed to be irrevocable unless expressly marked as revocable. See letter of credit.

irritating material

(shipping) Items capable of causing discomfort such as tearing, choking, vomiting and skin irritation. (UN CLASS 6.) Examples are tear gas and riot control agents. Hazards/precautions are: may cause difficulty in breathing; may burn but do not ignite readily; exposure in enclosed areas may be harmful; may cause tearing of the eyes, choking, nausea or skin irritation.

A new series of voluntary international quality standards. Its formal name is ISO 9000 Series of Standards. Adoption of ISO standards has become a virtual prerequisite for doing business internationally. See International Standards Organization. See also American National Standards Institute.

(banking) The establishment of a letter of credit by the issuing bank (buyer's bank) based on the buyer's application and credit relationship with the bank. See letter of credit; advice; amendment.

issuance date of the documents

(shipping) Unless otherwise stipulated in a transport document, the date of issuance is deemed to be the date of shipment or loading on board of the goods.

(banking) Unless prohibited by the documentary letter of credit, documents bearing a date of issuance prior to that of the letter of credit are acceptable.

issuing bank

(banking) The buyer's bank which establishes a letter of credit at the request of the buyer, in favor of the beneficiary (seller/exporter). Also called the buyer's bank or the opening bank. See also advising bank; negotiating bank.

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