Dictionary Definitions

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pa'anga

The currency of Tonga. 1T$=100 seniti.

Pacific Rim

Refers to countries and economies bordering the Pacific ocean. Pacific Rim is an informal, flexible term which generally has been regarded as a reference to East Asia, Canada, and the United States. At a minimum, the Pacific Rim includes Canada, Japan, the People's Republic of China, Taiwan, and the United States. It may also include Australia, Brunei, Cambodia, Hong Kong/Macau, Indonesia, Laos, North Korea, South Korea, Malaysia, New Zealand, the Pacific Islands, the Philippines, Russia (or the Commonwealth of Independent States), Singapore, Thailand, and Vietnam. As an evolutionary term, usage sometimes includes Mexico, the countries of Central America, and the Pacific coast countries of South America.

packing credit

(banking) A monetary advance granted by a bank in connection with shipments of storable goods guaranteed by the assignment of the payment expected later on under a documentary letter of credit.

packing list

(shipping) A document prepared by the shipper listing the kinds and quantities of merchandise in a particular shipment. A copy is usually sent to the consignee to assist in checking the shipment when received. Also referred to as a bill of parcels.

(shipping, general) A platform with or without sides, on which a number of packages or pieces may be loaded to facilitate handling. Most carriers offer container discounts for palletized loads.

(air freight) A platform with a flat metal framed undersurface on which goods are assembled and secured by nets and straps. See also aircraft pallet.

Palletization results in more efficient use of space and better cargo handling, particularly when used as part of mechanized loading systems.

palletizing

(shipping) The loading and securing of a number of sacks, bags, boxes or drums on a pallet base.

pallet loader

(shipping) A device employing one or more vertical lift platforms for the mechanical loading or unloading of palletized freight at planeside.

pallet transporter

(shipping) A vehicle for the movement of loaded pallets between the aircraft and the freight terminal or truck dock.

(foreign exchange) The official fixed exchange rate between two currencies or between a currency and a specific weight of gold or a basket of currencies. See foreign exchange.

parcel post air freight

(shipping) An airline service through which a shipper can consolidate a number of parcel post packages (with destination postage affixed by the shipper) for shipment as air freight to the postmaster at another city for subsequent delivery within local postal zones or beyond.

parent bank

(banking) A bank in a major industrial country that sets up a subsidiary in a developing country.

par exchange rate

(foreign exchange) The free market price of one country's money in terms of the currency of another.

(law) On an equal basis without preference. Creditors who receive payment pari passu, for example, are paid in proportion to their interests without regard to whether any of the claims would have taken priority over others.

Under the International Monetary Fund's (IMF) General Agreements to Borrow (GAB), established in 1962, 10 of the wealthiest industrial members of the IMF agreed to lend funds to the IMF, up to specified amounts "when supplementary resources are needed." The finance ministers of these countries comprise the Paris Club (also called the Group of 10).

The Paris Club has become a popular designation for meetings between representatives of a developing country that wishes to renegotiate its "official" debt (normally excluding debts owed by and to the private sector without official guarantees) and representatives of the relevant creditor governments and international institutions. These meetings usually occur at the request of a debtor country that wishes to consolidate all or part of its debt service payments falling due over a specified period. Meetings are traditionally chaired by a senior official of the French Treasury Department. Comparable meetings occasionally take place in London and in New York for countries that wish to renegotiate repayment terms for their debts to private banks. These meetings are sometimes called "creditor clubs." See International Monetary Fund; Group of Ten.

Paris Convention

The Paris Convention for the Protection of Industrial Property, first adopted in 1883, is the major international agreement providing basic rights for protecting industrial property. It covers patents, industrial designs, service marks, trade names, indications of source, and unfair competition. The U.S. ratified this treaty in 1903. The treaty provides two fundamental rights:

(1) The principle of national treatment provides that nationals of any signatory nation shall enjoy in all other countries of the union the advantages that each nation's laws grant to its own nationals.

(2) The right of priority enables any resident or national of a member country to, first, file a patent application in any member country and, thereafter, to file a patent application for the same invention in any of the other member countries within 12 months of the original filing and receive benefit of the original filing date.

See patent; trademark; copyright; World Intellectual Property Organization; Patent Cooperation Treaty.

Paris Union

See World Intellectual Property Organization.

(general) Equality in amount or value. For example, if the price for goods sold in two different markets is the same, the price is in parity.

(foreign exchange) Exchange relationship of a currency to a legally binding reference, i.e., to a specific amount of gold, to Special Drawing Rights (SDRs) or to other currencies. See also special drawing right(s).

(foreign exchange/official parity) Predetermined exchange rate relationship between two currencies.

par of exchange

(foreign exchange) The market price of money in one national currency that is exchanged at the official rate for a specific amount in another national currency, or another commodity of value (gold, silver, etc.).

(law) Oral expression. A parol contract, for example, is one that is verbal only and that has not be put into writing by the parties.

particular average

(insurance) An insurance loss that affects specific interests only. There are two kinds of particular average losses: the total loss of a part of the goods, and the arrival of goods at destination in a damaged condition.

In the first situation, it is necessary to determine how much of the total amount insured is applicable to the missing item. In homogeneous or fungible cargo--that is, cargo which is capable of mutual substitution, like oil or coal--it is frequently a matter of simple arithmetic. The value of the unit of measurement of the cargo is found by dividing the amount of insurance by the total number of units in the shipment. This value multiplied by the number of missing units gives the value of the loss.

Where a normal or trade loss is to be expected, as in cargo subject to leakage, slackage or loss of moisture during the voyage, the method of calculation is slightly different. The value of the insurance is divided by the number of units in the "expected outturn," that is, the expected arrived quantity rather than the shipped quantity. This can be determined either by the normal percentage of trade loss for similar shipments or by examinations of sound arrived cargo forming part of the shipment in question. While this method will produce a somewhat higher insured value per unit, it naturally requires the normal or trade loss to be deducted in calculating the actual shortage sustained.

See also average; general average; with average; free of particular average; deductible average; trade loss.

parties to the credit

(banking) At least the following three parties are involved in a documentary letter of credit transaction:

(1) Applicant (buyer/importer),

(2) Issuing bank (buyers bank), and

(3) Beneficiary (seller/exporter).

As a rule, however, the issuing bank will entrust a correspondent bank with the task of advising and authenticating the credit and, if applicable, with payment, acceptance or negotiation. The issuing bank may also request the advising bank to add its confirmation.

See letter of credit; confirmation; issuing bank; advising bank.

partnership

(law) An unincorporated business owned and operated by two or more persons (partners), who may have general or limited liability in accordance with the partnership agreement. Note: The definition of status of partnership varies from country to country, and is not recognized as a business entity in some countries. See general partnership; limited partnership.

The currency of Macao. 1P=100 avos.

(law) A grant by law to an inventor of a device of the right to exclude other persons from making, using, or selling the device. The patent holder has the right to license to another person the right to make, use, or sell the device. A patent is available only for devices that embody a new idea or principle and that involve a discovery. Patent protection varies from country to country, and may not be available in some jurisdictions. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize patents held in other jurisdictions. See copyright; service mark; trademark; Paris Convention; World Intellectual Property Organization.

Patent Cooperation Treaty (PCT)

The PCT, is a worldwide convention, open to any Paris Convention country. The PCT entered into force in 1978. Unlike the Paris Convention, which addresses substantive intellectual property rights, the PCT addresses procedural requirements, aiming to simplify the filing, searching, and publication of international patent applications. See Paris Convention.

payable in exchange

(foreign exchange) The requirement that a negotiable instrument be paid in the funds of the place from which it was originally issued.

(banking) The person or organization to whom a check or draft or note is made payable. The payee's name follows the expression "pay to the order of." See also payer; negotiable; negotiable instrument.

(banking) The party primarily responsible for the payment of the amount owed as evidenced by a given negotiable instrument. See also payee; negotiable; negotiable instrument.

payments surplus

(economics) The excess of the value of a nation's exports over its imports. See also balance of trade.

(customs) The charges assessed or action taken by customs in response to a violation of a customs-enforced regulation or law.

perfect competition

(economics) A description for an industry or market unit consisting of a large number of purchasers and sellers all involved in the buying and selling of a homogeneous good, with awareness of prices and volume, no discrimination in buying and selling, and a mobility of resources.

performance

(law) The proper fulfillment of a contract or obligation.

performance bond

(insurance) A bond which guarantees proper fulfillment of the terms of a contract. In practice, the beneficiary of the bond (usually the buyer of services and/or goods), will claim financial restitution under the bond if the principal (supplier of the services and/or goods) fails to comply with the terms and conditions of the contract. See bond; surety.

peril point

(economics) A hypothetical limit beyond which a reduction in tariff protection would cause serious injury to a domestic industry.

(U.S.) U.S. legislation in 1949 that extended the Trade Agreements Act of 1934 required the Tariff Commission to establish such "peril points" for U.S. industries, and for the President to submit specific reasons to Congress if and when any U.S. tariff was reduced below those levels. This requirement, which was an important constraint on U.S. negotiating positions in early General Agreement on Tariffs and Trade (GATT) tariff-cutting Rounds, was eliminated by the Trade Expansion Act of 1962.

perils of the sea

(insurance) Marine insurance coverage that includes unusual action of wind and waves (often described as "stress of weather" or "heavy weather"), stranding, lightning, collision and damage by sea water when caused by insured perils such as opening of the seams of the vessel by stranding or collision. See also special marine policy; all risk.

perishable freight

(shipping) Freight subject to decay or deterioration.

(law) An individual or legal entity recognized under law as having legal rights and obligations. In the United States, for example, corporations and partnerships are examples of legal entities that are recognized as persons under the law. In countries that allow the formation of limited and unlimited liability companies, those companies are recognized as persons under the law.

personal income

(economics) National income less various kinds of income not actually received by individuals, non-profit institutions, and so on (e.g., undistributed corporate profits, corporate taxes, employer contributions for social insurance), plus certain receipts that do not arise from production (i.e., transfer payments and government interest).

The currency of:

Andorra (uses Spanish peseta);

Spain, 1Pts=100 centimos.

peso

The currency of:

Argentina, 1$a=100 centavos;

Chile, 1Ch$=100 centavos;

Columbia, 1Col$=100 centavos;

Cuba, 1$=100 centavos;

Dominican Republic, 1RD$=100 centavos;

Guinea-Bissau, 1PG=100 centavos;

Mexico, 1Mex$=100 centavos;

Philippines, 1P=100 centavos;

Uruguay, 1UR$=100 centesimos.

petrodollars

(foreign investment/banking) Huge sums of money from oil-producing nations other than the United States or Great Britain. These funds are initially converted into Eurocurrency and deposited with international banks to be used for future investment and for paying debts. These banks traditionally set limits on the sum they will accept from any one country.

phytosanitary inspection certificate

(U.S.) A certificate, issued by the U.S. Department of Agriculture to satisfy import regulations of foreign countries, indicating that a U.S. export shipment has been inspected and is free from harmful pests and plant diseases.

pickup and delivery service

(shipping) An optional service for the surface transport of shipments from shipper's door to originating carrier's terminal and from the terminal of destination to receiver's door. Pickup service, at an additional charge, is provided upon shipper's request. In air cargo shipments delivery service is provided automatically by the air carrier at an additional charge unless the shipper requests otherwise. PU&D service is provided between all airports and all local points of such airports. For service beyond the terminal area See truck/air service.

pickup order

(shipping) An order from a broker (working as the agent of a consignee) to a carrier to pick up freight at a location.

pier-to-pier

(shipping) Shipment of cargo by carrier from origin pier to discharge pier. Applies to container yard (CY) cargo. Drayage to/from pier is borne by customer.

(shipping) The transportation of truck trailers and containers on specially equipped railroad flat-cars.

(shipping/insurance) The loss of goods due to steady theft in small amounts.

(shipping) A person whose office or occupation is to steer ships, particularly along a coast, or into and out of a harbor.

pips

(foreign exchange) In foreign exchange dealing, the last decimal places of a price quotation are called pips for purposes of simplicity (1/100th of 1 percent or 0.0001 of a unit). In futures trading the smallest possible price fluctuation upwards or downwards (1 pip) is called a tick.

plimsoll mark

(shipping) The depth to which a vessel may safely load is identified by a horizontal line painted on the outside of the ship. This "plimsoll mark" must remain above the surface of the water. See also draft or draught.

point of origin

(shipping) The location at which a shipment is received by a transportation line from the shipper.

point-to-point; door-to-door

(shipping) Designates service and rates for shipments in door-to-door service. Originating carrier spots (places) empty container at shipper's facility at carrier's expense for loading by and at expense of shipper, the delivering carrier spots the loaded container at consignee's facility at carrier's expense for unloading by and at expense of consignee. See also demurrage; detention.

poisonous material

(shipping) Items that are extremely toxic to man and animals. (UN CLASS 6.) Examples are cyanogen gas, lead cyanide and parathion. Hazards/precautions are: may cause death quickly if breathed, swallowed or touched; may be flammable, explosive, corrosive or irritating; may be EXTREMELY HAZARDOUS. Look for the "Skull and Crossbones" on the label; degree of hazard key words: poison, danger, warning, highly toxic, moderately toxic, least toxic; and read the label carefully for storage and safety information.

political risk

(economics) Extraordinary measures of foreign countries and political events abroad which make it impossible for a debtor to comply with a contract or which lead to the loss, confiscation of or damage to goods belonging to the exporter, e.g., war, revolution, annexation, civil war, which can have detrimental effect upon the exporter. An exporter may be able to cover this risk by utilizing a confirmed letter of credit or by applying for cover from export credit agencies.

port

(shipping) (a) A harbor or haven where ships may anchor and discharge or receive cargo. (b) The left side of a ship when one is facing the bow.

port charge

(shipping) A charge made for services performed at ports.

portfolio investment

(foreign investment) In general, any foreign investment that is not direct investment is considered portfolio investment. Foreign portfolio investment includes the purchase of voting securities (stocks) at less than a 10 percent level, bonds, trade finance, and government lending or borrowing, excluding transactions in official reserves.

port of discharge

(shipping) The port at which a shipment is off-loaded by a transportation line, not to be confused with destination which may be a point further inland.

port of embarkation

See port of export.

port of entry

(shipping/customs) A port at which foreign goods are admitted into the receiving country. Ports of entry are officially designated by the importing country's government.

(U.S. Customs) Any place designated by act of U.S. Congress, executive order of the President of the United States, or order of the U.S. Secretary of the Treasury, at which a U.S. Customs officer is assigned with authority to accept entries of merchandise, to collect duties, and to enforce the various provisions of the U.S. Customs laws.

port of export

(shipping) The port, airport or customs point from which an export shipment leaves a country for a voyage to a foreign country.

port-of-origin air cargo clearance

(shipping) For the convenience of exporters moving goods by air from inland U.S. cities, certain U.S. Customs formalities can now be handled at the originating airport city. This avoids delaying such procedures until the export reaches a gateway point sometimes hundreds of miles from the exporter's business.

postdated check

(banking) A check bearing a date that has not yet arrived. Such a check cannot be paid by a bank before the date shown and must be returned to the maker or to the person attempting to use it. If presented on or after the date shown, the same check will be honored if the account contains sufficient funds.

post-shipment verifications (PSV)

(U.S.) An inspection to determine that an exported strategic commodity is being used for the purposes for which its export was licensed. Firms or individuals representing the end user, intermediate consignees, or the purchaser may be subject to inquiries pertaining to the post-shipment verification. As part of the PSV process, the Bureau of Export Administration (BXA) forwards a cable to the U.S. embassy or consulate in the respective geographical location to conduct an on-site inspection to ensure that the commodity is physically present and used as stated in the application. Post-shipment verifications are usually conducted six-to-eight months subsequent to export of the commodity. See Bureau of Export Administration.

The currency for:

Cyprus, 1£C=100 cents;

Egypt, 1LE (or 1E£)=100 piasters=1,000 milliemes;

Falkland Islands, 1£F=100 pence;

Ireland, (pound or punt), 1RE=100 pence;

Lebanon, 1LL (or 1L£) =100 piasters;

St. Helena (uses U.K. pound);

Syria, 1S£=100 piasters;

United Kingdom, 1£=100 pence.

power of attorney

(law) A written legal document by which one person (principal) authorizes another person (agent) to perform stated acts on the principal's behalf. For example: to enter into contracts, to sign documents, to sign checks, and spend money, etc.

A principal may execute a special power of attorney authorizing an agent to sign a specific contract or a general power of attorney authorizing the agent to sign all contracts for the principal.

(U.S. Customs) Importers often give a limited power of attorney to their customs broker to conduct business with U.S. Customs on their behalf.

Tip: When you set up a power of attorney, make sure that it is broad enough in its language to cover the types of situations likely to arise, but not so broad that it gives more power to that individual than you intend. Power of attorney falls under "agency" law, which varies from country to country. Before giving someone power of attorney in a foreign country, be sure you understand what the local legal ramifications are. See agent; agency.

See International POW WOW.

Pow Wow Selection Committee

See International POW WOW.

(banking/letters of credit) At the request of an applicant to a letter of credit, the issuing bank may give a pre-advice of issuance and/or amendment of the letter of credit. A pre-advice is usually marked with a reference such as "Full details to follow." Unless otherwise stated, the pre-advice irrevocably commits the issuing bank to issue/amend the credit in a manner consistent with said pre-advice. See letter of credit; advice; advising bank; issuing bank; amendment.

preferences

(law) A creditor's right to be paid before other creditors of the same debtor. A creditor who holds a secured note, for example, generally has preference over one who holds an unsecured note.

Preferential Trade Agreement for Eastern and Southern Africa

PTA was founded in 1981 in order to improve commercial and economic cooperation in Eastern and Southern Africa; transform the structure of national economies in the region; promote regional trade; support inter-country cooperation, cooperation in agricultural development, and improvement of transport links. Accomplishments include: tariff reductions, multilateral trade, common travellers checks, a federation of chambers of commerce, a federation of commercial banks, and a commercial Arbitration board. The PTA Trade and Development Bank is in Burundi. Current goals include monetary harmonization and the establishment of a commodity futures market and stock exchange.

The PTA's members are: Burundi, Comoros, Djibouti, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Rwanda, Somalia, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe. Address: Preferential Trade Area for Eastern and Southern Africa, PO Box 30051, Lotti House, Cairo Rd., Lusaka, Zambia; Tel: [260] (1) 229725; Telex: 40127; Fax: [260] (1) 225107.

pre-license checks (PLC)

(U.S.) Pre-license checks are conducted to determine that a request for a license to export a controlled commodity represents a legitimate order. Firms or individuals representing the licensee (the applicant), a consignee, the purchaser, an intermediate consignee, or the end user may be subject to inquiries pertaining to the pre-license check. As part of the process, the Bureau of Export Administration (BXA) forwards a cable to the U.S. embassy or consulate in the respective geographical location to conduct an inspection or meet with company representatives to conduct inquiries on BXA's behalf. See Bureau of Export Administration.

preliminary determination

(U.S.) The determination announcing the results of a dumping investigation conducted within 160 days (or, in extraordinarily complicated cases, 210 days) after a petition is filed or an investigation is self-initiated by the International Trade Administration (ITA). If it is determined that there is a reasonable basis to believe or suspect that the merchandise under consideration is being sold or is likely to be sold at less than fair value, liquidation of all affected entries is suspended, and the matter is referred to the International Trade Commission. "Preliminary determination" also refers to the decision by the ITC where there is a reasonable indication that an industry in the United States is materially injured, or threatened with material injury, or the establishment of an industry in the United States is materially retarded by reason of the imports of the merchandise which is the subject of the petition. The ITC must make its decision within 45 days after the date on which the petition is filed or an investigation is self-initiated by the International Trade Administration. If this determination is negative, the investigation is terminated. See dumping; International Trade Administration; fair value.

(general) The amount above a regular price, paid as an incentive to do something. For example, a buyer might pay a premium for quick delivery. Opposite of discount.

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

(foreign exchange) (a) Premium, markup (forward premium) or contango of a forward rate against the spot rate. (b) The price at which an option sells.

(shipping) (a) A notation on a shipping document indicating that shipping charges have already been paid by the shipper or his agent to the carrier. (b) Also, that shipping charges are to be paid by the consignee or his agent prior to release of the shipment.

prepaid charges

(shipping) The transportation trade practice under which the shipper pays transportation charges.

prescription period

See limitation period.

President's Export Council (PEC)

(U.S.) Advises the President on government policies and programs that affect U.S. trade performance; promotes export expansion; and provides a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor, and government sectors.

The Council was established by Executive Order of the President in 1973 and was originally composed only of business executives. The Council was reconstituted in 1979 to include leaders of the labor and agricultural communities, Congress, and the Executive branch.

Twenty-eight private sector members serve "at the pleasure of the President" with no set term of office. Other members include five U.S. Senators and five Members of the House, the Secretaries of Agriculture, Commerce, Labor, State, and Treasury, the Chairman of the Export-Import Bank, and the U.S. Trade Representative. The Council reports to the President through the Secretary of Commerce.

price support

(economics) Subsidy or financial aid offered to specific growers, producers, or distributors, in accordance with governmental regulations to keep market prices from dropping below a certain minimum level.

pricing (of a loan)

(banking/finance) Fixing the cost of a loan, i.e., the interest rate and any other charges, such as front end fees.

prima facie

(law) A presumption of fact as true unless contradicted by other evidence. For example, unless an agreement assigning contract rights clearly states that outstanding interest payments are retained by the assignor, the right to collect such payments is deemed transferred prima facie to the assignee.

(law) An individual or legal entity who authorizes another party (agent) to act on the principal's behalf. See agency; agent; power of attorney.

priority air freight

(shipping) Reserved air freight or air express service wherein shipments have a priority after mail and the small package services. Any size or weight allowed within air freight service limits is acceptable. Advanced reservations are permitted for movement on a given flight and in some cases a partial refund is paid the shipper if the shipment is not moved on the flight specified.

priority foreign countries

See Special 301.

priority logistics management

(shipping) The application of the just in time transportation theory. See just in time.

priority watchlist

See Special 301.

private corporation

(law) (a) A business corporation with shares that are not traded among the general public. (b) A corporation that is established by individuals to conduct business or other activities and that does not perform government functions. See corporation; close corporation; public corporation.

Private Export Funding Corporation

(U.S.) PEFCO works with the Export-Import Bank in using private capital to finance U.S. exports. PEFCO acts as a supplemental lender to traditional commercial banking sources by making loans to public and private borrowers located outside of the United States who require medium and/or longer-term financing of their purchases of U.S. goods and services. See Export-Import Bank of the United States.

Private Limited (Pte. Ltd.)

(India, Rhodesia, Singapore) Designation for a private limited liability corporation with limited liability to shareholders.

private limited liability corporation

See closely held corporation.

procurement and lead time

The time required by the buyer to select a supplier and to place and obtain a commitment for specific quantities of material at specified times.

product groups

(U.S.) Commodity groupings used for export control purposes. See export control classification number.

productivity

(economics) A measurement of the efficiency of production. A ratio of output to input (e.g., 10 units per man-hour).

profit, gross

(economics/accounting) (gross profit/gross margin) Net sales less cost of goods sold (before consideration of selling and administrative expenses). Gross profit is expressed in dollar figures; gross margin is expressed as a percentage of net sales.

(U.S. Customs) For the purposes of constructed value in an antidumping duty investigation or review, the profit used is the profit normally earned by a producer, from the country of export, of the same or similar product as that under investigation. By statute, the amount of profit shall not be less than 8 percent of the sum of general expenses and cost.

See dumping; countervailing duty.

When coupled with the title of another document (pro forma invoice, pro forma manifest), it means an informal document presented in advance of the arrival or preparation of the required document in order to satisfy a requirement, usually a customs requirement.

pro forma invoice

An invoice provided by a supplier prior to a sale or shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, and similar characteristics). A pro forma invoice is used: (1) as a preliminary invoice together with a quotation; (2) for customs purposes in connection with shipments of samples, advertising material, etc.

(U.S. Customs) An invoice provided by the importer in lieu of a commercial invoice when a commercial invoice is not available at the time of merchandise entry. In such cases the importer must present a bond to Customs guaranteeing production of the required commercial invoice not later than 120 days from the date of entry. If the invoice is needed by Customs for statistical purposes, it must generally be produced within 50 days from the date the entry summary is required to be filed.

If the required commercial invoice is not presented to Customs before the expiration of the 120-day period, the importer incurs a liability under his bond for failure to file.

See also invoice; commercial invoice; entry; bond.

project license

(U.S.) A license which authorizes large-scale exports of a wide variety of commodities and technical data for specified activities. Those activities can include capital expansion, maintenance, repair or operating supplies, or the supply of materials to be used in the production of other commodities for sale. See Bureau of Export Administration.

promissory note

(banking) (a) Any written promise to pay. (b) A negotiable instrument that is evidence of a debt contracted by a borrower from a creditor, known as a lender of funds. If the instrument does not have all the qualities of a negotiable instrument, it cannot legally be transferred. See negotiable instrument.

promoter of corporation

(law) Individual or entity that organizes a corporation.

promotional rate

(shipping) A rate applying to traffic under special conditions and usually confined to movement between a limited number of cities. Early rates on fresh farm produce which helped develop increased air freight volumes from the West Coast to eastern cities are examples of promotional rates. See special rates.

proof of delivery

(shipping) Information provided to payor containing name of person who signed for the package with the date and time of delivery.

Proprietary Limited (Pty. Ltd.)

(Australia, South Africa) Designation for a private limited liability corporation with limited liability to shareholders.

(law) A person who has an exclusive right or interest in property or in a business.

proprietorship

(law) A business owned by one person. The individual owner has all the rights to profits from the business as well as all the liabilities and losses. Synonymous with "individual proprietorship."

protectionism

(economics) The deliberate use or encouragement of restrictions on imports to enable relatively inefficient domestic producers to compete successfully with foreign producers.

protective order

(U.S. Customs) With regard to antidumping cases, a term for the order under which most business proprietary information is made available to an attorney or other representative of a party to the proceeding. See dumping.

protective service

(shipping) Many airlines offer a protective service where shippers can arrange to have their shipments under carrier surveillance at each stage of transit from origin to destination. This service can be extended to pickup and delivery. Shippers can also arrange for armed guard protection. There is usually an extra charge for various levels of protective service. See signature service.

protective tariff

(customs/economics) A duty or tax imposed on imported products for the purpose of making them more expensive in comparison to domestic products, thereby giving the domestic products a price advantage. See tariff.

(U.S. Customs) The means by which an importer, consignee, or other designated party may challenge decisions, (usually regarding the duitable status of imported goods) made by a District Director of Customs. The importer files a protest and an application for further review on Customs Form 19 within 90 days after liquidation. If the Customs Service denies a protest, an importer has the right to litigate the matter by filing a summons with the U.S. Court of International Trade within 180 days after denial of the protest. The rules of the court and other applicable statutes and precedents determine the course of Customs litigation.

While the Customs ascertainment of duitable status is final for most purposes at the time of liquidation, a liquidation is not final until any protest which has been filed against it has been decided. Similarly, the administrative decision issued on a protest is not final until any litigation filed against it has become final.

Entries must be liquidated within one year of the date of entry unless the liquidation needs to be extended for another one-year period not to exceed a total of four years from the date of entry. The Customs Service will suspend liquidation of an entry when required by statute or court order. A suspension will remain in effect until the issue is resolved. Notifications of extensions and suspensions are given to importers, surety companies and customs brokers who are parties to the transaction.

See entry; liquidation.

(banking) Legal procedure noting the refusal of the drawee to accept a bill of exchange (protest for non-acceptance) or to pay it (protest for non-payment). Essential in order to preserve the right of recourse on the endorser.

protest system

(U.S. Customs) A part of U.S. Customs' Automated Commercial System, tracks protests from the date they are received through final action. See Automated Commercial System.

(diplomacy) (a) A preliminary document or memorandum signed by diplomatic or commercial negotiators which is used as a basis for final negotiations, agreements conventions or treaties. (b) The etiquette and ranking of diplomatic personnel.

(U.S.) U.S. diplomatic ranking is as follows: (1) Ambassadors-at-large have a higher rank than a regular Ambassador and are higher ranked on protocol than, say, the head of the C.I.A.; (2) The Deputy Chief of Mission, almost always a career officer, has the personal rank of Minister which is one rank down from Ambassador; (3) The rank of Minister-Counselor is just a little step below Minister; (4) The Chargé d'Affaires may either be acting, or indefinite, and is regarded as the acting Ambassador when the Ambassador is out of the country or when, for political reasons, an Ambassador is not appointed to a country; (5) An Attaché may be either fairly high or fairly low; in terms of rank an Attaché can be anything; a Military Attaché is of at least medium rank, but the military hold no diplomatic rank; (6) A consulate is not a diplomatic mission, nor is it autonomous; it is established by an international organization (such as U.S. Mission to the European Communities (USEC) or NATO) or is used for reasons of diplomatic snobbery or pique.

Protocol of Provisional Application

(GATT) A legal device that enabled the original contracting parties to accept General Agreement on Tariffs and Trade (GATT) obligations and benefits, despite the fact that some of their existing domestic legislation at that time discriminated against imports in a manner that was inconsistent with certain GATT provisions. Although meant to be "temporary," the Protocol has remained in effect; and countries that signed the PPA in 1947 continue to invoke it to defend certain practices that are otherwise inconsistent with their GATT obligations. Countries that acceded to the GATT after 1947 have also done so under the terms of the Protocol. See General Agreement on Tariffs and Trade.

publication

(law) (a) Offering or distributing information or materials to the public generally. (b) Communicating defamatory information to a third person.

public corporation

(law) (a) A business corporation with shares traded among the general public, such as through a stock exchange. (b) A corporation created by a government to administer its operations. See corporation; close corporation; private corporation.

Public Limited Company (PLC)

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

published rate

(shipping) The charges for a particular class of cargo as published in a carrier's tariff.

pula

The currency of Botswana. 1P=100 thebe.

purchase order

A purchaser's written offer to a supplier formally stating all terms and conditions of a proposed transaction.

purchase price

(U.S. Customs) A statutory term used in dumping investigations to refer to the United States sales price of merchandise which is sold or likely to be sold prior to the date of importation, by the producer or reseller of the merchandise for exportation to the United States. Certain statutory adjustments (e.g., import duties, commissions, freight) are made, if appropriate, to permit a meaningful comparison with the foreign market value of such or similar merchandise. See dumping.

(U.S.) Within the context of export controls, the purchaser is that person abroad who has entered into the export transaction with the applicant to purchase the commodities or technical data for delivery to the ultimate consignee.

purchasing agent

(law) An agent who purchases goods in his/her own country on behalf of foreign buyers such as government agencies and private businesses. See agent; agency.

pure market economy

(economics) A competitive economic system of numerous buyers and sellers, where prices are determined by the free interaction of supply and demand.

put

(banking/finance) A right to redeem a debt instrument before maturity at par under specific circumstances outlined in the original agreement. See option; put option; call; call option.

(banking/finance) A contract which entitles one party, at his option, to sell a specified amount of a commodity, security or foreign exchange to another party, at the price fixed in the contract, during the life of the contract. See option; call option; American Option; European Option.

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