Dictionary Definitions

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safeguards

(GATT) The General Agreement on Tariffs and Trade (GATT) permits two forms of multilateral safeguards: (1) a country's right to impose temporary import controls or other trade restrictions to prevent commercial injury to domestic industry, and (2) the corresponding right of exporters not to be deprived arbitrarily of access to markets.

Article XIX of the GATT permits a country whose domestic industries or workers are adversely affected by increased imports to withdraw or modify concessions the country had earlier granted, to impose, for a limited period, new import restrictions if the country can establish that a product is "being imported in such increased quantities as to cause or threaten serious injury to domestic producers," and to keep such restrictions in effect for such time as may be necessary to prevent or remedy such injury. See General Agreement on Tariffs and Trade.

said to contain (s.t.c.); said to weigh (s.t.w.); shipper's load and count

(shipping) Clauses in transport documents which exclude liability of the carrier for the consistency of the description of the goods or the weight of the goods actually loaded, e.g., goods in containers. This provides protection to the carrier against claims by the consignee.

sales agreement

(law) A written document by which a seller agrees to convey property to a buyer for a stipulated price under specified conditions. See also contract.

sales representative

An agent who distributes, represents, services, or sells goods on behalf of sellers. See also agent; agency.

A tax placed by a state or municipality on items at the time of their purchase. It may be a tax on the sale of an item every time it changes hands (value added tax, VAT), or only upon its transfer of ownership at one specific time.

In the case of a VAT, the sales of manufacturers are taxed when the items are considered to be completed goods; the sales of wholesalers are taxed when their goods are sold to retailers; and retail sales are taxed when the goods are purchased by consumers. See value added tax.

(insurance) (a) Compensation paid for the rescue of a ship, its cargo or passengers from a loss at sea, (b) The act of saving a ship or its cargo from possible loss, (c) Property saved from a wreck or fire.

salvage loss

(insurance) A method of insurance adjustment where the underwriter pays the difference between the amount of insurance and the net proceeds of the sale of damaged goods. It is sometimes incorrectly assumed that when damaged goods are sold to determine the extent of loss, the underwriter is obligated to pay the difference between the amount of insurance and the net proceeds of the sale. The salvage loss method is regularly used only if goods are justifiably sold short of destination.

samurai bond

(banking/finance) Bond issued on the Japanese market in yen outside Japan.

(economics) An embargo imposed against an individual country by the United Nations--or a group of nations--in an effort to influence its conduct or its policies. See also embargo.

sanitary certificate

A document attesting to the absence of disease or pests in a shipment of animal or plant products, especially foodstuffs. See phytosanitary inspection certificate.

Saudi Arabian Standards Organization

(Saudi Arabia) SASO was established in April 1972 as the sole Saudi Arabian government organization to promulgate standards and measurements in the kingdom. Primarily, SASO promulgates standards for electrical equipment and some food products. Some of these standards have been adopted by the Gulf Cooperation Council. See also International Standards Organization.

The currency of:

Austria, 1S=100 groschen.

SDR

See special drawing rights.

seal

(law) A mark or sign that is used to witness and authenticate the signing of an instrument, contract, or other document. A corporation, for example, uses a seal to authenticate its contracts and records of its corporate acts.

(shipping) A small metal strip and lead fastener used for fastening or locking the doors of a container, which is usually numbered and which provides proof that a container has not been opened since the seal was applied.

sea waybill

(banking) A transport document which is not a document of title/negotiable document. The sea waybill indicates the "on board" loading of the goods and can be used in cases where no ocean bill of lading, i.e. no document of title is required. For receipt of the goods, presentation of the sea waybill by the consignee named therein is not required, which can speed up processing at the port of destination. See bill of lading; ocean bill of lading.

seaworthiness

(shipping) The fitness or safety of a vessel for its intended use.

Section 201

(U.S.) Section 201, the "escape clause" provision of the Trade Act of 1974, permits temporary import relief, not to exceed a maximum of eight years, to a domestic industry which is seriously injured, or threatened with serious injury, due to increased imports. Import relief, granted at the President's discretion, generally takes the form of increased tariffs or quantitative restrictions. To be eligible for section 201 relief, the International Trade Commission (ITC) must determine that: (1) the industry has been seriously injured or threatened to be injured and (2) imports have been a substantial cause (not less than any other cause) of that injury. Industries need not prove that an unfair trade practice exists, as is necessary under the antidumping and countervailing duty laws. However, under section 201, a greater degree of injury--"serious" injury-- must be found to exist, and imports must be a "substantial" cause (defined as not less than any other cause) of that injury.

If the ITC finding is affirmative, the President's remedy may be a tariff increase, quantitative restrictions, or orderly marketing agreements. At the conclusion of any relief action, the Commission must report on the effectiveness of the relief action in facilitating the positive adjustment of the domestic industry to import competition. If the decision is made not to grant relief, the President must provide an explanation to the Congress. See escape clause; unfair trade advantage; orderly marketing agreements; adjustment assistance; International Trade Administration. See also quantitative restrictions; International Trade Commission.

Section 232

(U.S.) Under Section 232 of the Trade Expansion Act of 1962, as amended, the U.S. Department of Commerce determines whether articles are being imported into the U.S. in quantities or circumstances that threaten national security. Based on the investigation report, the President can adjust imports of the article(s) in question.

The U.S. Department of Commerce must report on the effects these imports have on national security and make recommendations for action or inaction within 270 days after starting an investigation. Within 90 days of the report, the President decides whether to take action to adjust imports on the basis of national security. The President must notify Congress of his decision within 30 days.

Section 301

(U.S.) Under Section 301 of the Trade Act of 1974, firms can complain about a foreign country's trade policies or practices that are harmful to U.S. commerce. The section empowers the United States Trade Representative (USTR) to investigate the allegations and to negotiate the removal of any trade barriers. The section requires that the General Agrement on Tariffs and Trade (GATT) dispute resolution process be invoked where applicable and, if negotiations fail, to retaliate within 180 days from the date that discovery of a trade agreement violation took place.

This provision enables the President to withdraw concessions or restrict imports from countries that discriminate against U.S. exports, subsidize their own exports to the United States, or engage in other unjustifiable or unreasonable practices that burden or discriminate against U.S. trade. See Super 301; Special 301.

Section 337

(U.S.) Section 337 of the Tariff Act of 1930 requires investigations of unfair practices in import trade. Under this authority, the International Trade Commission (ITA) applies U.S. statutory and common law of unfair competition to the importation of products into the United States and their sale. Section 337 prohibits unfair competition and unfair importing practices and sales of products in the U.S., when these threaten to: (1) destroy or substantially injure a domestic industry, (2) prevent the establishment of such an industry, or (3) restrain or monopolize U.S. trade and commerce. Section 337 also prohibits infringement of U.S. patents, copyrights or registered trademarks.

(law/banking) Guaranteed as to payment by the pledge of something valuable.

(general) Property pledged as collateral.

(investments) Stocks and bonds placed by a debtor with a creditor, with authority to sell for the creditor's account if the debt is not paid.

(law) (a) Any evidence of debt or right to a property. (b) An individual who agrees to make good the failure of another to pay.

(law) The act of taking possession of property.

self-insurance

(insurance) A system whereby a firm or individual, by setting aside an amount of monies, provides for the occurrence of any losses that could ordinarily be covered under an insurance program. The monies that would normally be used for premium payments are added to this special fund for payment of losses incurred.

seller's market

Exists when goods cannot easily be secured and when the economic forces of business tend to cause goods to be priced at the vendor's estimate of value.

selling, general and administrative (expenses)

(U.S. Customs) In establishing valuation of an import shipment, the sum of:

(1) General and administrative expenses (such as: salaries of non-sales personnel, rent, heat, and light);

(2) Direct selling expenses (that is, expenses that can be directly tied to the sale of a specific unit, such as: credit, warranty, and advertising expenses); and

(3) Indirect selling expenses (that is, expenses which cannot be directly tied to the sale of a specific unit but which are proportionally allocated to all units sold during a certain period, such as: telephone, interest, and postal charges).

selling rate

(banking/foreign exchange) Rate at which a bank is willing to sell foreign exchange or to lend money.

Semiconductor Trade Arrangement

The U.S.-Japan Semiconductor Trade Arrangement is a bilateral agreement which came into effect on August 1, 1991, replacing the prior 1986 Semiconductor Trade Arrangement. The new Arrangement contains provisions to: (1) increase foreign access to the Japanese semiconductor market; and (2) deter dumping of semiconductors by Japanese suppliers into the U.S. market, as well as in third country markets. In evaluating market access improvement, both governments agreed to pay particular attention to market share. The expectation of a 20 percent foreign market share by the end of 1992 is included in the Arrangement. The Arrangement explicitly states, however, that the 20 percent figure is not a guarantee, a ceiling, or a floor on the foreign market share.

senior commercial officer (SCO)

(U.S. diplomacy) The SCO is the senior U.S. and Foreign Commercial Officer at an embassy and reports in-country to the Ambassador. At major posts, this position carries the title of Commercial Counselor; in key posts, Minister Counselor. Usually reporting to the SCO are a Commercial Attaché and Commercial Officers. The latter are sometimes assigned to subordinate posts throughout the country.

sequestration

See attachment.

service a loan

(banking) To pay interest due on a loan.

service commitments

(shipping) Pickup and/or delivery commitments agreed to by carrier and shipper.

service mark

(law) A mark used in sales or advertising to identify a service offered by an individual or legal entity and to distinguish that service from services offered by others. A service mark is distinguished from a trademark in that the former identifies services, while the later identifies goods. Protection for service marks varies from country to country, and may not be available in some jurisdictions. Service marks are often, but not necessarily, regulated by the same laws that govern trademarks. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize service marks held in other jurisdictions. See trademark; patent; Paris Convention; World Intellectual Property Organization.

(economics) Economic activities--such as transportation, banking, insurance, tourism, space launching telecommunications, advertising, entertainment, data processing, consulting and the licensing of intellectual property--that are usually of an intangible character and often consumed as they are produced. Service industries have become increasingly important since the l920s. Services now account for more than two-thirds of the economic activity of the United States and about 25 percent of world trade. Traditional GATT rules have not applied to trade in services.

(law) A charge against or burden on property that benefits a person with an interest in another property. An owner of property may grant another person, for example, a right to travel over that property to reach adjoining land, in which case the owner has created a servitude against the property. See easement.

settlement date

(banking) The date on which payment for a transaction must be made.

severability clause

(law) A contract term that provides that each portion of the agreement is independent of the others, allowing a court to invalidate a clause of the contract without voiding the entire agreement.

shared foreign sales corporation

(U.S.) A foreign sales corporation consisting of more than one and less than 25 unrelated exporters. See foreign sales corporation.

The currency of Israel. 1IS=100 agorot.

The currency of:

Kenya, 1KSh=100 cents;

Somalia, 1 SoSh=100 cents;

Tanzania, 1 TSh=100 cents;

Uganda, 1USh=100 cents.

(shipping) Except as otherwise provided, cargo tendered by one shipper, on one bill of lading, from one point of departure, for one consignee, to one destination, at one time, via a single port of discharge.

shipment record

(shipping) A repository of information for each shipment that reflects all activity throughout each step of the shipment life cycle.

shipped on deck

(shipping) Annotation in a bill of lading stating that the goods have been shipped on the deck of a ship. See bill of lading.

(shipping) The company or person who ships cargo to the consignee.

shipper's export declaration

(shipping) Form required for all U.S. export shipments by mail valued at more than $500 and for non-mail shipments with declared value greater than $2,500. Also required for shipments requiring a U.S. Department of Commerce validated export license or U.S. Department of State license regardless of value of goods. Prepared by a shipper indicating the value, weight, destination, and other basic information about the shipment. The shipper's export declaration is used to control exports and compile trade statistics.

shipper's letter of instruction

(shipping) A form used by a shipper to authorize a carrier to issue a bill of lading or an air waybill on the shipper's behalf. The form contains all details of shipment and authorizes the carrier to sign the bill of lading in the name of the shipper. See bill of lading.

shipper's load and count

(shipping) A clause in, or notation on, a transport document noting that the contents of a container were loaded and counted by the shipper and not checked or verified by the carrier. Such a notation provides protection to the carrier against claims by the consignee.

shipping instructions

(shipping) Information supplied by the shipper/exporter providing detailed instructions pertaining to the shipment (e.g., shipper, consignee, bill-to party, commodity, pieces, weight, cube, etc.).

shipping order

(shipping) Instructions of shipper to carrier for forwarding of goods; usually the triplicate copy of the bill of lading.

shipping weight

(shipping) The total weight usually expressed in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

ship's manifest

(shipping) A list, signed by the captain of a ship, of the individual shipments constituting the ship's cargo. See manifest.

ship's papers

(shipping) The documents a ship must carry to meet the safety, health, immigration, commercial and customs requirements of a port of call or of international law.

ship's stores

(shipping) The food, medical supplies, spare parts and other provisions carried for the day-to-day running of a vessel.

shogun bond

(finance) Non-resident bond issues denominated in foreign currencies on the Tokyo market. Started June 1985.

(shipping) A deficiency in quantity shipped.

short form bill of lading

(shipping) A bill of lading on which the detailed conditions of transportation are not listed in full. A deviation from a regular bill of lading (long form) since it only refers to the contract terms but fails to include them. See bill of lading.

short of exchange

(banking/foreign exchange) The position of a foreign exchange trader who has sold more foreign bills than the quantity of bills he or she has in possession to cover sales.

short supply

(U.S.) Commodities in short supply may be subject to export controls to protect the domestic economy from the excessive drain of scarce materials and to reduce the serious inflationary impact of satisfying foreign demand. Two commodities which the U.S. controls for short supply purposes are crude oil and unprocessed western red cedar.

(measure) A unit of mass or weight measurement equal to 2,000 pounds. A long ton is 2,240 pounds.

short weight

(shipping) Notation of a shipment's weight as less than that noted on the original bill of lading, indicating loss during shipment.

sight draft

(banking) A financial instrument payable upon presentation or demand. A bill of exchange may be made payable, for example, at sight or after sight, which means it is payable upon presentation or demand, or within a particular period after demand is made. See bill of exchange.

signature service

(shipping) A service designed to provide continuous responsibility for the custody of shipments in transit, so named because a signature is required from each person handling the shipment at each stage of its transit from origin to destination.

silent confirmation

(banking/letters of credit) In addition to the commitment of the issuing bank of a letter of credit, the advising bank can, by silent confirmation, enter into its own, independent commitment to pay or accept. In contrast to the confirmed letter of credit, in this case there is no confirmation instruction given by the issuing bank. Silent confirmations are thus purely agreements between the beneficiary and the "silently confirming" bank. In order to enforce its claim, the "silently confirming" bank requires the assignment of all the rights of the beneficiary under the letter of credit. See letter of credit.

similar merchandise

(U.S. Customs) For purposes of establishing the customs value of imported merchandise, similar merchandise is merchandise that is:

(1) Produced in the same country and by the same person as the merchandise being appraised,

(2) Like merchandise being appraised in characteristics and component materials,

(3) Commercially interchangeable with the merchandise being appraised.

If merchandise meeting all these criteria cannot be found, then similar merchandise is merchandise having the same country of production, like characteristics and component materials, and commercially interchangeability, but produced by a different person.

In determining whether goods are similar, some of the factors to be considered are the quality of the goods, their reputation, and existence of a trademark.

Exclusion: Similar 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; identical merchandise.

Single European Act

The SEA, which entered into force in July 1987, provides the legal and procedural support for achievement of the single European Market by 1992. The SEA revised the European Economic Community (EEC) Treaty and, where not already provided for in the Treaty, majority decisions were introduced for numerous votes facing the Council of Ministers, particularly those affecting establishment of the single European Market and the European financial common market. The role of the European Parliament was strengthened; decisions on fiscal matters remained subject to unanimity.

Single Internal Market Information Service

SIMIS, run by the the European Community Affairs Office under the United States International Trade Administration (ITA), is a clearinghouse for information on European Community activities. Contact: European Community Affairs Office, United States Department of Commerce, 14th and Constitution Ave. NW, Room 3036, Washington, DC 20230; Tel: (202) 482-5276.

SITC

See standard international trade classification.

(shipping) A contrivance into which freight is placed to be hoisted into or out of a ship.

slip

(shipping) A vessel's berth between two piers.

Small Business Administration (SBA)

(U.S. government) An independent government organizations which acts as an advocate to small business, providing aid, counseling, assistance and protection. The SBA's Office of International Trade plans, develops and implements programs to encourage small business participation in international trade. The Office also coordinates the Administrations' International Trade Program with the Departments of Commerce and Agriculture, the Export-Import Bank of the United States, the Agency for International Development, and with other Federal and State agencies with private organizations concerned with international trade. Address: Small Business Administration, 409 Third St. SW, Suite 8000, Washington, DC 20416; Tel: (202) 606-4000; http://www.sba.gov.

small package service

(shipping) A specialized service to guarantee the delivery of small parcels within specified express time limits, e.g., same day or next day. This traffic is subject to size and weight limitations. Air carriers that also transport passengers often accept these packages at airport ticket counters with delivery at destination baggage claim area. Many carriers provide door-to-door service on a 24-hour basis.

Smoot Hawley Tariff Act of 1930

(U.S.) The Tariff Act of 1930, also commonly known as the Smoot Hawley Tariff, was protectionist legislation that raised tariff rates on most articles imported by the United States, triggering comparable tariff increases by U.S. trading partners.

(customs) Conveying goods or persons, without permission, across the borders of a country or other political entities (e.g., cigarette smuggling across state lines).

snake system

(banking/foreign exchange) An international agreement between Belgium, The Netherlands, Luxembourg, Denmark, Sweden, Norway, and West Germany, linking the currencies of these countries together in an exchange system. The signatories have agreed to limit fluctuations in exchange rates among their currencies to 2.25 percent above or below set median rates. The snake was designed to be the first stage in forming a uniform Common Market currency. Members maintain fairly even exchange rates among themselves by buying or selling their currencies when the rates threaten to drop or rise beyond the 2.25 percent limits specified.

Sociedad Anónima (S.A.)

(Latin America, Mexico, Spain) Designation for a joint stock company with limited personal liability to shareholders.

Sociedad a Responsabilidad Limitada (S.R.L.)

(Latin America, Mexico, Spain) Designation for a private limited liability corporation with limited liability to shareholders.

Sociedad por Quota (S.Q.)

(Portugal) Designation for a private limited liability corporation with limited liability to shareholders. See Limitada.

Società a Garanzia Limitata (S.G.L.)

(Switzerland) Designation for a private limited liability corporation with limited liability to shareholders.

Società Cooperativa a Responsabilità (SCaRL)

(Italy, Switzerland) Designation for an incorporated association with limited liability for its members, unless its articles provide otherwise.

Società in Accomandita Semplice (S.A.S.)

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

Società per Azioni (S.p.A.)

(Italy) Designation for a joint stock company with limited personal liability to shareholders.

Société (Sté.)

(France, Luxembourg, Switzerland) General designation for a corporation, partnership, or association.

Société Anonyme (S.A.)

(Belgium, France, Luxembourg, Switzerland) Designation for a joint stock company with limited personal liability to shareholders.

Société à Responsabilité Limitée (S.R.L.)

(France, Luxembourg, Switzerland) Designation for a private limited liability corporation with limited liability to shareholders.

Société en Commandité par Actions (S.C.)

(France, Luxembourg) Designation for a limited partnership in which the partners have limited liability.

Société en Commandité Simple (S.C.S.)

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

Société Cooperative (Sté. Cve.)

(Belgium, Switzerland) Designation for an incorporated association with limited liability for its members, unless its articles provide otherwise.

Société de Personnes à Responsabilité Limitée (S.P.R.L.)

(Belgium) Designation for a private limited liability company with limited liability to shareholders.

Société en Nom Collectif (S.N.C.)

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

soft clause

(banking) Clauses in a documentary letter of credit which make it impossible for the beneficiary (seller) to meet the conditions of the documentary letter of credit on his own and independently of the purchaser.

Example: "The goods must be accepted prior to shipment by a representative of the purchaser." The name of the representative is made known via an amendment in the documentary letter of credit at a later stage when it is either too late or very inconvenient to follow through on the requirement. It is not recommended for exporters to agree to this type of request.

soft currency

(banking/foreign exchange) The funds of a country that are controlled by exchange procedures, thereby having limited convertibility into gold and other currencies.

(general) A loan made with easy or generous terms such as low or no interest and long payback.

(banking) This term refers to the no-interest loans granted to developing countries by the International Development Association. Such a "soft loan" carries no interest (although there is a small annual service charge), is payable in 50 years, and has an amortization rate of 1% repayable annually for the 10 years following an initial 10-year grace period, followed by 3% repayable annually for the remaining 30 years.

(banking/finance) Regional finance institutions in Japan, dealing chiefly with smaller enterprises.

sol

The currency of Peru. 1S=100 centavos.

Southern Africa Development Community (SADC)

A regional economic pact comprising Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, Zambia, and Zimbabwe. Note: The Southern Africa Development Coordinating Conference (SADCC) became the Southern Africa Development Community (SADC) in August, 1992, when the 10 member countries signed a treaty to establish it and replace the SADCC. The SADC placed binding obligations on member countries with the aim of promoting economic integration towards a fully developed common market. Address: Southern Africa Development Community, Private Bag 0095, Gaborone, Botswana; Tel: (31) 351863; Fax: (31) 372848.

Southern Africa Development Coordination Conference

Note: The Southern Africa Development Coordinating Conference (SADCC) became the Southern Africa Development Community (SADC) in August, 1992, when the 10 member countries signed a treaty to establish it and replace the SADCC. See Southern Africa Development Community.

Southern African Customs Union

SACU, established in 1910, includes Botswana, Lesotho, Namibia, South Africa, and Swaziland. SACU provides for the free exchange of goods within the area, a common external tariff, and a sharing of custom revenues. External tariffs, excise duties, and several rebate and refund provisions are the same for all SACU members. SACU's revenues are apportioned among its members according to a set formula. These funds constitute a significant contribution to each member's government revenues.

Southern Common Market

southern cone

The southern cone consists of Argentina, Brazil, Chile, Paraguay, and Uruguay. With the exception of Chile, these countries also comprise the Southern Common Market.

sovereign credit

(finance) A borrowing guaranteed by the government of a sovereign state.

sovereign risk

(finance) The risk to a lendor that the government of a sovereign state may default on its financial obligations.

sovereignty

The rights of a nation to self determination over all that transpires within its boundaries, especially concerning the rights of its people, immigration policy, business dealings, and jurisdiction over airspace, land and maritime matters.

space arbitrage

See arbitrage, space.

Special 301

(U.S.) The Special 301 statute requires the United States Trade Representative (USTR) to review annually the condition of intellectual property protection among U.S. trading partners. Submissions are accepted from industry after which the USTR, weighing all relevant information, makes a determination as to whether a country presents excessive barriers to trade with the United States by virtue of its inadequate protection of intellectual property. If the USTR makes a positive determination, a country may be named to the list of: (1) Priority Foreign Countries (the most egregious), (2) the Priority Watch List, or (3) the Watch List. See Section 301; Super 301.

special agency

Special American Business Internship Training Program

(U.S. government agency) SABIT, formerly the Soviet-American Business Internship Training Program, is a program in which American companies give managers from the Confederation of Independent States (CIS) an opportunity to work in a U.S. corporate setting for up to six months. CIS business managers are referred by the U.S. Department of Commerce to sponsoring U.S. companies, which make the final selection of their interns. The SABIT program matches U.S. corporate sponsors with CIS business executives from the same industries. The CIS provides transportation; the companies provide living expenses and training in management techniques (production, distribution, marketing, accounting, wholesaling, and publishing). SABIT is funded by the U.S. Agency for International Development. Contact: U.S. Department of Commerce, SABIT, Room 3413, 14th and Constitution NW, Washington, DC 20230; Tel: (202) 482-0073; Fax: (202) 482-2443.

special and differential treatment

(GATT) The principle, enunciated in the Tokyo Declaration, that the Tokyo Round of the General Agreement on Tariffs and Trade (GATT) negotiations should seek to accord particular benefits to the exports of developing countries, consistent with their trade, financial, and development needs. Among proposals for special or differential treatment are reduction or elimination of tariffs applied to exports of developing countries under the Generalized System of Preferences (GSP), expansion of product and country coverage of the GSP, accelerated implementation of tariff cuts agreed to in the Tokyo Round for developing country exports, substantial reduction or elimination of tariff escalation, special provisions for developing country exports in any new codes of conduct covering nontariff measures, assurance that any new multilateral safeguard system will contain special provisions for developing country exports, and the principle that developed countries will expect less than full reciprocity for trade concessions they grant developing countries.

See General Agreement on Tariffs and Trade; Generalized System of Preferences.

special drawing right(s) (SDR)

(banking) Reserve assets of the member states of the International Monetary Fund, (IMF) (Bretton-Woods system), for which they can draw an amount of SDRs proportional to their predetermined quota in the IMF. The value of an SDR is based on a currency basket (the last realignment was in January 1991: $=40%, DM=21%, Yen=17%, GB£ = 11%, FF=11%.) Some countries define the parity of their currencies in SDRs.

(banking/foreign exchange) The amount by which each member state of the IMF is permitted to have its international checking account with the International Monetary Fund go negative before the nation must ask for additional loans.

SDRs were established at the Rio de Janeiro conference of 1967. SDRs are available to governments through the Fund and may be used in transactions between the Fund and member governments.

IMF member countries have agreed to regard SDRs as complementary to gold and reserve currencies in settling their international accounts. The unit value of an SDR reflects the foreign exchange value of a "basket" of currencies of several major trading countries (the U.S. dollar, the German mark, the French franc, the Japanese yen, and the British pound). The SDR has become the unit of account used by the IMF and several national currencies are pegged to it. Some commercial banks accept deposits denominated in SDR's (although they are unofficial and not the same units transacted among governments and the fund). See International Monetary Fund.

special marine policy

(insurance) An insurance policy which is issued to cover a single shipment. The special marine policy form calls for the name of the vessel and sailing date, points of shipment and destination, nature of commodity, description of units comprising the shipment, and the amount of insurance desired. In addition, it calls for the marks and numbers of the shipment, the name of the party to whom loss shall be payable (usually the assured "or orders" thus making the instrument negotiable upon endorsement by the assured), and the applicable policy provisions. Some of these provisions are standard clauses and are incorporated by reference only, while others are specific and apply to the individual shipment in question.

A special marine policy is usually utilized on export shipments when the sale is financed through a bank by letter of credit and evidence of insurance is a part of the required documentation.

The special marine policy is generally prepared in four or more copies. The original (and duplicate if necessary) is negotiable and is forwarded with the shipping documents to the consignee. The remaining documents serve as office copies for the assured and for the insurance company.

The terms "special marine policy" and "certificate" are often used interchangeably. The practical effect of the two is the same, but a word as to their difference will be of interest.

In former years the use of "certificate" was customary. This, as the name implies, 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. This makes no reference to an open policy and stands on its own feet as an obligation of the underwriting company.

In some cases, exporters insure through freight forwarders when arranging for forwarding, warehousing, documentation, ocean freight space and the other requirements of overseas trade. While this method may have the merit of simplicity, it should be emphasized that there are definite advantages in having one's own policy and that this need not entail burdensome clerical detail.

See open policy; declaration; bordereau.

special rates

(shipping) Rates that apply to cargo traffic under special conditions and usually at a limited number of cities. Examples of such rates are container rates, exception ratings, surface-air rates, and import rates.

specific commodity rate

(shipping) Rate applicable to certain classes of commodities, usually commodities moving in volume shipments. Hence, specific commodity rates are usually lower than the general commodity rate between the same pair of cities.

specific rate of duty

(customs) A specified amount of duty per unit of weight or other quantity. For example 5.9 cents per pound, or 8 cents per dozen. See also ad valorem; compound rate of duty.

spot

See spot operations.

(banking) Immediate cash payment in a transaction, as opposed to payment at some future time.

spot exchange

(foreign exchange) The purchase and sale of foreign exchange for delivery and payment at the time of the transaction.

spot exchange rate

(foreign exchange) The price of one currency expressed in terms of another currency at a given moment in time.

spot market

(foreign exchange) The market (or exchange) for a commodity or foreign exchange available for immediate delivery (usually one or two days after the transaction date).

(foreign exchange) Swap transaction, the spot side of which has the normal spot value date while the forward side becomes due one business day later.

spot operations

(foreign exchange) Foreign exchange dealing in which settlement of the mutual delivery commitments is made at the latest two days (normally on the second business day) after the transaction was carried out.

A price quotation for immediate sale and delivery of a commodity or currency.

The rate for purchase or sale of a commodity for immediate delivery.

(shipping) The placing of a container where required to be loaded or unloaded.

spot trading

See spot market; spot operations.

squaring (positions)

(finance/foreign exchange) Covering an open position (securities, foreign exchange or commodities) by means of corresponding contra business.

standard industrial classification (SIC)

(U.S.) The classification standard underlying all establishment-based U.S. economic statistics classified by industry.

standard international trade classification (SITC)

One of a number of numerical commodity codes developed by the United Nations and used solely by international organizations for reporting international trade. The SITC has been revised several times; the current version is Revision 3. See also Harmonized System.

standard of living

(economics) The level of material affluence of a nation as measured by per capita output.

As defined by the Multilateral Trade Negotiations "Agreement on Technical Barriers to Trade" (Standards Code), a standard is a technical specification contained in a document that lays down characteristics of a product such as levels of quality, performance, safety, or dimensions. Standards may include, or deal exclusively with, terminology, symbols, testing and test methods, packaging, marking, or labeling requirements as they apply to a product. See International Standards Organization; American National Standards Institute.

standby commitment

(banking) A bank commitment to loan money up to a specified amount for a specific period, to be used only in a certain contingency.

standby letter of credit

(banking) The standby letter of credit is very similar in nature to a guarantee. The beneficiary can claim payment in the event that the principal does not comply with its obligations to the beneficiary. Payment can usually be realized against presentation of a sight draft and written statement that the principal has failed to fulfill his obligations.

With this instrument the following payments and performances, among others, can be supported:

(1) repay funds borrowed or advanced,

(2) fulfill subcontracts, and

(3) undertake payment of invoices made on open account. See letter of credit.

standing to sue

(law) A party's interest in a controversy that is sufficient to allow the party to request a judicial resolution. A buyer who suffers damages because of the seller's breach of contract, for example, has standing to sue, but a friend of the buyer who was not a party to the contract and who has not suffered damages from the breach has no standing to sue.

(GATT) Standstill refers to a commitment of the General Agreement on Tariffs and Trade (GATT) contracting parties not to impose new trade-restrictive measures during the Uruguay Round negotiations. See rollback; General Agreement on Tariffs and Trade; Uruguay Round.

(shipping) The right side of a ship when one is facing the bow.

stare decisis

(law) A legal doctrine under which courts, in resolving current disputes, follow cases decided previously. This doctrine is followed in countries that adhere to common law principles. See common law.

State Export Program Database

(U.S.) The SEPD is a trade lead system maintained by the National Association of State Development Agencies (NASDA). The SEPD includes information on state operated trade lead systems. See National Association of State Development Agencies.

state/industry-organized, government approved (S/IOGA)

Note: the name of this program has recently been changed to Certified Trade Missions Program. See Certified Trade Missions Program.

state trading enterprises

Entities established by governments to import, export and/or produce certain products. Examples include: government-operated import/export monopolies and marketing boards, or private companies that receive special or exclusive privileges from their governments to engage in trading activities.

state trading nations

(economics) Countries such as the former Soviet Union, the People's Republic of China, and nations of Eastern Europe that rely heavily on government entities, instead of the private sector, to conduct trade with other countries. Some of these countries, (e.g., Cuba) have long been Contracting Parties to the General Agreement on Tariffs and Trade (GATT), whereas others (e.g., Poland, Hungary, and Romania), became Contracting Parties later under special Protocols of Accession. The different terms and conditions under which these countries acceded to GATT were designed in each case to ensure steady expansion of the country's trade with other GATT countries taking into account the relative insignificance of tariffs on imports into state trading nations.

statute of frauds

(U.S. law) A law that requires designated documents to be written in order to be enforced by a court. Contracting parties, for example, may orally agree to transfer ownership of land, but a court may not enforce that contract, and may not award damages for breach, unless the contract is written.

steamship indemnity

(shipping) An indemnity received by an ocean carrier issued by a bank indemnifying him for any loss incurred for release of goods to the buyer without presentation of the original bill of lading.

(a) The money of Great Britain. (b) An article made from sterling silver. Sterling silver is an alloy of silver that is 925/1000 pure. An article of sterling silver is generally marked "925".

(shipping) The rear part of a ship, boat or airplane.

(shipping) A person having charge of the loading and unloading of ships in port. See also longshoreman; gang.

stop loss order

(foreign exchange) An order to buy (on a short position) or to sell (on a long position) foreign exchange if the rate rises above or falls below a specific limit. As soon as the rate reaches the prescribed limit, the order will be carried out at the next rate. Depending on the market situation, this rate can differ considerably from the limit rate.

(shipping) The keeping of goods in a warehouse.

storage demurrage

(shipping) A charge made on property remaining on the dock past the prescribed "free-time period." See demurrage.

storage in transit

(shipping) The stopping of freight traffic at a point located between the point of origin and destination to be stored and reforwarded at a later date.

store-door delivery

(shipping) The movement of goods to the consignee's place of business, customarily applied to movement by truck.

See ship's stores.

(shipping) The arranging and packing of cargo in a vessel for shipment.

stowage instructions

(shipping) Specific instructions given by the shipper or his agent concerning the way in which cargo is to be stowed. For example, a shipper may require that his shipment be placed below deck if it may be damaged by exposure to the elements above deck, or midships if it may be damaged by the greater movement of the vessel in fore and aft sections.

stowplan or stowage plan

(shipping) A diagram showing how cargo or containers have been placed on a vessel.

straight bill of lading

(shipping) A nonnegotiable bill of lading that designates a consignee who is to receive the goods and that obligates the carrier to deliver the goods to that consignee only. A straight bill of lading cannot be transferred by endorsement. See bill of lading; negotiable instrument; ocean bill of lading.

strategic level of controls

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

strike clause

(insurance) An insurance clause included in policies to cover against losses as a result of strikes.

strike price

(finance/foreign exchange) Price at which the option buyer obtains the right to purchase (call option) or sell (put option) the underlying security or currency.

strikes, riots and civil commotion

(insurance) An insurance policy endorsement, usually referred to as S.R.&C.C. (strikes, riots and civil commotion) coverage, which extends the insurance policy to cover damage, theft, pilferage, breakage or destruction of the insured property directly caused by strikers, locked-out workmen or persons taking part in labor disturbances, riots or civil commotions.

Destruction of and damage to property caused by vandalism, sabotage and malicious acts of person(s) regardless of (political/ideological/terroristic) intent be it accidental or otherwise is also held covered under S.R.&C.C. unless so excluded in the F.C.&S. (free of capture and seizure) warranty in the policy.

The S.R.&C.C. endorsement excludes coverage for any damage or deterioration as a result of delay or loss of market, change in temperature/humidity, loss resulting from hostilities or warlike operations, absence/shortage/withholding power, fuel, labor during a strike (riot or civil commotion) or weapons of war that employ atomic or nuclear fusion/fission.

In order to eliminate the war cover from the marine policy it became customary to add a "free of capture and seizure" clause, stating that the policy did not cover warlike operations or its consequences, whether before or after the actual declaration of war. Currently, most open policies omit war perils from its insuring conditions and in all cases will include a F.C.&S. clause. War coverage is customarily furnished in conjunction with an open cargo policy and is written under a separate, distinct policy-the War Risk Only Policy.

See war risk; war risk insurance; open policy.

striking price; exercise price

See strike price.

(shipping) The unloading of cargo from a container. Also called devanning.

Structural Impediments Initiative (SII)

(U.S./Japan) The SII was started in July 1989 to identify and solve structural problems that restrict bringing two-way trade between the U.S. and Japan into better balance.

Both the U.S. and Japanese governments chose issues of concern in the other's economy as impediments to trade and current account imbalances. The areas which the U.S. government chose included: (1) Japanese savings and investment patterns, (2) land use, (3) distribution, (4) keiretsu, (5) exclusionary business practices, and (6) pricing. Areas which the Japanese Government chose included: (1) U.S. savings and investment patterns, (2) corporate investment patterns and supply capacity, (3) corporate behavior, (4) government regulation, (5) research and development, (6) export promotion, and g) workforce education and training.

In a June 1990 report, the U.S. and Japan agreed to seven meetings in the following three years to review progress, discuss problems, and produce annual joint reports.

(shipping) The loading of cargo into a container.

subrogation

(insurance) The right of the insurer, upon payment of a loss, to the benefit of any rights against third parties that may be held by the assured himself. This usually involves recoveries from carriers that handled the shipment.

(law) Any organization more than 50 percent of whose voting stock is owned by another firm.

(economics) A bounty, grant or economic advantage paid by a government to producers of goods for the manufacture, production, or export of an article, often to strengthen their competitive position. Export subsidies are contingent on exports; domestic subsidies are conferred on production without reference to exports.

The subsidy may be direct (a cash grant), or indirect, low-interest export credits guaranteed by a government agency, for example), or take a less direct form (R&D support, tax breaks, loans on preferential terms, and provision of raw materials at below-market prices).

(GATT) The payment of subsidies by a national government to export producers in a major trade issue. See General Agreement on Tariffs and Trade.

(U.S. foreign trade zones) A special purpose foreign trade zone established as part of a foreign trade zone project for a limited purpose that cannot be accommodated within an existing zone. Subzones are often established to serve the needs of a specific company and may be located within an existing facility of the company. See foreign trade zone; Foreign Trade Zone Board; Foreign Trade Zone Act; operator; grantee; zone user.

The currency of Ecuador. 1S/=100 centavos.

sue and labor

(insurance) The responsibility of the assured to act to keep his insured loss at a minimum. The sue and labor clause of the open cargo policy reads essentially as follows:

"In case of any loss or misfortune it shall be lawful and necessary to and for the assured, his or their factors, servants and assigns to sue, labor, and travel, for, in and about the defense, safeguard and recovery of the goods and merchandise or any part thereof ... to the charges whereof this company will contribute according to the rate and quantity of the sum herein insured."

Reasonable charges incurred for this purpose are generally collectible under the insurance policy. For example, when a shipment of canned goods arrives with some leaking cans in each of several cartons, the leaking cans must be taken out if rusting and label damage are to be minimized. The expense insured in this operation may be recovered under the insurance policy.

summary investigation

(U.S.) A 20-day investigation conducted immediately following filing of an antidumping petition to ascertain if the petition contains sufficient information with respect to sales at "less than fair value" and the injury or threat of material injury to a domestic industry caused by the alleged sales at "less than fair value" to warrant the initiation of an antidumping investigation. See dumping.

summit conference

(diplomacy) An international meeting at which heads of government are the chief negotiators, major world powers are represented, and the meeting serves substantive rather than ceremonial purposes. The term first came into use in reference to the Geneva Big Four Conference of 1955.

(U.S.) This provision was enacted due to U.S. Congressional concern that the regular Section 301 procedures narrowly limit U.S. attention to the market access problems of individual sectors or companies. Super 301 sets procedures to identify and address within three years certain "priority," systemic trade restriction policies of other nations. Super 301 authority expired May 30, 1990. See Section 301; Special 301.

superdeductive

See deductive value.

superficies

(law) A right to build on the surface of real property. A landowner may transfer a superficies right, for example, to a developer who agrees to build on the property in exchange for an annual rent to the landowner.

Superintendent of Documents

(U.S.) Official supplier of U.S. government documents, publications, books, etc. Government Periodicals and Subscription Services is a catalog of products and prices. Address: Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402; Tel: (202) 512-1800.

supply access

(economics/customs) Assurances that importing countries will, in the future, have fair and equitable access at reasonable prices to supplies of raw materials and other essential imports. Such assurances should include explicit constraints against the use of the export embargo as an instrument of foreign policy.

Support for East European Democracy

(U.S. law) The SEED Act, signed into law in November 1989, contained 25 distinct actions to support structural adjustment, private sector development, trade and investment, and educational, cultural, and scientific activities in Poland and Hungary. Funding for most of the actions was provided by the Agency for International Development. The SEED Act expired at the end of fiscal year 1990. Since then support has been provided under the Foreign Assistance Act of 1991. See Foreign Assistance Act of 1991.

(shipping) A charge above the usual or customary charge.

(insurance) A bond, guaranty, or other security that protects a person, corporation, or other legal entity in cases of another's default in the payment of a given obligation, improper performance of a given contract, malfeasance of office, and others.

(law) A surety is usually a party to the contract with the principal debtor and the third person, making the surety equally liable with the debtor. In contrast, a guarantor is usually not a party to the contract between the debtor and the third person.

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

(shipping) To examine the condition of a vessel for purposes of establishing seaworthiness and/or value.

(insurance) To inspect goods as to their condition, weight and/or value in order to establish the extent of an insured loss.

survey report

Report of an expert, issued by an independent party. See inspection certificate.

(banking/finance) Eurodollar bonds issued by Japanese corporations on the Japanese market for Japanese investors.

suspension of investigation

(U.S.) A decision to suspend an antidumping investigation if the exporters who account for substantially all of the imported merchandise agree to stop exports to the U.S. or agree to revise their prices promptly to eliminate any dumping margin. An investigation may be suspended at any time before a final determination is made. No agreement to suspend an investigation may be made unless effective monitoring of the agreement is practicable and is determined to be in the public interest. See dumping.

suspension of liquidation

(U.S. Customs) When a preliminary determination of dumping or subsidization, or final determination after a negative preliminary determination is affirmative, there is a provision for suspension of liquidation of all entries of merchandise subject to the determination which are entered, or withdrawn from warehouse, for consumption, on or after the date of the publication of the notice in the Federal Register. Customs is directed to require a cash deposit, or the posting of a bond or other security, for each entry affected equal to the estimated amount of the subsidy or the amount by which the fair value exceeds the U.S. price. When an administrative review is completed, Customs is directed to collect the final subsidy rate or amount by which the foreign market value exceeds the U.S. price, and to require for each entry thereafter a cash deposit equal to the newly determined subsidy rate or margin of dumping. See liquidation; dumping.

swap (transaction)

(banking/finance/foreign exchange) A spot purchase of foreign exchange (currency swaps), fixed or floating rate funds (interest rate swaps) or assets (asset swaps) with simultaneous forward sale or vice versa.

Pase financiero is an Argentinian system, related to the swap system, whereby persons or institutions making capital investments are given an "exchange guarantee," which guarantees that the funds can be reexchanged at a predetermined exchange rate on a specific date. The French government is recommending the term crédit croisé but it is fighting a losing battle.

(foreign exchange) Sale of one currency against another currency at a specific maturity and the simultaneous repurchase from the same counterparty at a different maturity. Normally, one of the maturity dates will be that of spot operations.

See also countertrade.

switch arrangements

A form of countertrade in which the seller sells on credit and then transfers the credit to a third party. See countertrade.

System for Tracking Export License Applications (STELA)

(U.S.) STELA is a U.S. Department of Commerce, Bureau of Export Administration (BXA) computer-generated voice unit that interfaces with the BXA database: ECASS (Export Control Automated Support System). STELA enables a caller to check on an export license by making a telephone call to (202) 482-2752. See Bureau of Export Administration.

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