A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(U.S.) A list of individuals and firms which have been disbarred from shipping or receiving U.S. goods or technology. Firms and individuals on the list may be disbarred with respect to either controlled commodities or general destination (across-the-board) exports. taka The currency of Bangladesh. 1Tk=100 paise. tala The currency of Western Samoa. 1WS$=100 sene. tare or tare weight (shipping) The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. tariff (general) A comprehensive list or "schedule" of merchandise with applicable rates to be paid or charged for each listed article. (shipping) A schedule of shipping rates charged, together with governing rules and regulations. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Individual carriers also publish their own tariffs covering special services. International tariffs containing freight rates of the U.S. international carriers are published by the U.S. flag carriers. (customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
taka
The currency of Bangladesh. 1Tk=100 paise. tala The currency of Western Samoa. 1WS$=100 sene. tare or tare weight (shipping) The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. tariff (general) A comprehensive list or "schedule" of merchandise with applicable rates to be paid or charged for each listed article. (shipping) A schedule of shipping rates charged, together with governing rules and regulations. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Individual carriers also publish their own tariffs covering special services. International tariffs containing freight rates of the U.S. international carriers are published by the U.S. flag carriers. (customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tala
The currency of Western Samoa. 1WS$=100 sene. tare or tare weight (shipping) The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. tariff (general) A comprehensive list or "schedule" of merchandise with applicable rates to be paid or charged for each listed article. (shipping) A schedule of shipping rates charged, together with governing rules and regulations. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Individual carriers also publish their own tariffs covering special services. International tariffs containing freight rates of the U.S. international carriers are published by the U.S. flag carriers. (customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tare or tare weight
(shipping) The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. tariff (general) A comprehensive list or "schedule" of merchandise with applicable rates to be paid or charged for each listed article. (shipping) A schedule of shipping rates charged, together with governing rules and regulations. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Individual carriers also publish their own tariffs covering special services. International tariffs containing freight rates of the U.S. international carriers are published by the U.S. flag carriers. (customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff
(general) A comprehensive list or "schedule" of merchandise with applicable rates to be paid or charged for each listed article. (shipping) A schedule of shipping rates charged, together with governing rules and regulations. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Individual carriers also publish their own tariffs covering special services. International tariffs containing freight rates of the U.S. international carriers are published by the U.S. flag carriers. (customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(shipping) A schedule of shipping rates charged, together with governing rules and regulations. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Individual carriers also publish their own tariffs covering special services. International tariffs containing freight rates of the U.S. international carriers are published by the U.S. flag carriers. (customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(customs) A schedule of duties or taxes assessed by a government on goods as they enter (or leave) a country. Tariffs may be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or compound. In the United States, the imposition of tariffs is made on imported goods only. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
After seven "Rounds" of General Agreement on Tariffs and Trade (GATT) trade negotiations that focused heavily on tariff reductions, tariffs are less important measures of protection than they used to be. See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
See ad valorem; specific rate of duty; variable rate of duty; compound rate of duty. tariff anomaly (customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff anomaly
(customs) A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. tariff escalation (customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff escalation
(customs) A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. tariff quotas (customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff quotas
(customs) Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. See quota. tariff schedule (customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff schedule
(customs) A comprehensive list of the goods which a country may import and the import duties applicable to each product. See Harmonized System; Harmonized Tariff Schedule of the United States. Tariff Schedule of the United States See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Tariff Schedule of the United States
See Harmonized Tariff Schedule of the United States. tariff trade barriers See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff trade barriers
See trade barriers. tariff war When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tariff war
When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner. tau (foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
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(foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility. tax haven (trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tax haven
(trade) A nation offering low tax rates and other incentives for individuals and businesses of other countries. Tax Information Exchange Agreement An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Tax Information Exchange Agreement
An agreement concluded between the U.S. and a beneficiary country designated pursuant to the Caribbean Basin Economic Recovery Act of 1983. This agreement generally involves an expanded version of the standard exchange of information article usually included in a bilateral income tax treaty. The U.S. has similar agreements with most major trading partners. Like the standard tax treaty exchange of information article, a TIEA imposes on the agreeing countries a mutual and reciprocal obligation to exchange information relating to the enforcement of their respective tax laws. Technical Advisory Committee(s) (U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Technical Advisory Committee(s)
(U.S.) Voluntary groups of industry and government representatives who provide guidance and expertise to the U.S. Department of Commerce on technical and export control matters, including evaluation of technical issues; worldwide availability, use and production of technology; and licensing procedures related to specific industries. TACs have been set up for: (1) materials, (2) biotechnology, (3) computer systems, (4) electronics (formerly "semiconductors"), (5) sensors (formerly "electronic instrumentation"), (6) materials processing equipment (formerly "automated manufacturing equipment"), (7) military critical technologies, (8) telecommunications equipment, and (9) transportation and related equipment. See United States Department of Commerce. technical analysis (economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
technical analysis
(economics/foreign exchange) The analysis of past price and volume trends-often with the help of chart analysis-in a market, in order to be able to make forecasts about the future price developments of the commodity being traded. Technical exchange rate analysis is often used in professional dealing for short-term foreign exchange rate forecasts. technical barrier to trade A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
technical barrier to trade
A specification which sets forth stringent standards a product must meet (such as levels of quality, performance, safety, or dimensions) in order to be imported. A technical barrier to trade has the effect of adding to the cost of an imported article, thereby making it less competitive in the marketplace when compared to domestically produced articles. technical data Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
technical data
Information of any kind that can be used, or adapted for use, in the design, production, manufacture, utilization, or reconstruction of articles or materials. All software is technical data. Technical data can be either "tangible" or "intangible." Models, prototypes, blueprints or operating manuals (even if stored on recording media) are examples of tangible technical data. Intangible technical data consists of technical services, such as training, oral advice, information, guidance and consulting. technology transfer The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
technology transfer
The transfer of knowledge generated and developed in one place to another, where is it is used to achieve some practical end. Technology may be transferred in many ways: by giving it away (technical journals, conferences, emigration of technical experts, technical assistance programs); by industrial espionage; or by sale (patents, blueprints, industrial processes, and the activities of multinational corporations). temperature controlled ground handling (air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
temperature controlled ground handling
(air freight) Many of the commodities moving in air freight must be protected against sudden changes in temperatures. The temperature of a jet freighter's cabin is ideal to maintain perishables in peak condition; but the increase in the shipment of perishables by air required new strides in ground handling to protect cargoes from spoilage induced by marked differences in temperatures often encountered on the ground at points of origin and destination. To meet these needs the airlines have, at some cities, special equipment and facilities ranging from heated vans to temperature controlled holding rooms in which 100,000 pounds of perishables can be held at one time. temporary importation under bond (TIB) (U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
temporary importation under bond (TIB)
(U.S. Customs) Temporary admission into the United States under a conditional bond for articles not imported for sale or for sale on approval. Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Certain classes of goods may be admitted into the United States without the payment of duty, under bond, for their exportation within one year from the date of importation when they are not imported for sale, or for sale on approval. Generally, the amount of the bond is double the estimated duties. The one-year period for exportation may, upon application to the district or port director of Customs, be extended for one or more further periods which, when added to the initial one year, shall not exceed a total of three years. There is an exception in the case of automobiles or any parts thereof which are subject to a total period of six months which may not be extended. Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Merchandise entered under TIB must be exported before expiration of the bond period, or any extension, to avoid assessment of liquidated damages in the amount of the bond. Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Classes of goods which may be entered under a TIB include a wide range of merchandise. Some examples are: (1) merchandise to be repaired or altered; (2) wearing apparel for use as samples; (3) articles imported by illustrators or photographers for use solely as models; (4) samples for use in taking orders; (5) articles solely for examination with a view to reproduction; (6) articles intended solely for testing; (7) automobiles and other motor vehicles, boats, balloons, racing shells etc. and the usual equipment of the forgoing, imported by non-residents for the purposes of taking part in races; (8) locomotives and railway equipment for use in clearing obstructions; (9) containers for holding merchandise; (10) articles of special design for temporary use in connection with the manufacture of articles for export; (11) animals brought into the United States for the purposes of breeding; (12) theatrical scenery, properties and costumes; (13) works of fine art brought in by lecturers; (14) automobiles, other motor vehicles, and parts thereof brought in for show purposes. Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Relief from Liability. Relief from liability under bond may be obtained in any case in which the articles are destroyed under Customs supervision, in lieu of exportation, within the original bond period. However, in the case of articles imported solely for testing or experimentation, destruction need not be under Customs supervision where articles are destroyed during the course of experiments or tests during the bond period or any lawful extension, but satisfactory proof of destruction shall be furnished to the district or port director with whom the customs entry was filed. See ATA Carnet; bond; in bond. tender (shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tender
(shipping) A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers from ship to shore. (law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(law) (a) An offer or proposal to purchase a specified quantity of a commodity for a specified price. (b) An offer of money in satisfaction of a debt or obligation. tenor (law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tenor
(law/banking) The period between the formation of a debt and the date of expected payment. terminal (shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
terminal
(shipping) An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and transfer point for cargo or passengers, and often includes storage facilities, management offices and repair facilities. terminal charge (shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
terminal charge
(shipping) A charge made for services performed at terminals (e.g., storage, drayage). terms of trade (economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
terms of trade
(economics) The volume of exports that can be traded for a given volume of imports. Changes in the terms of trade are generally measured by comparing changes in the ratio of export prices to import prices. The terms of trade are considered to have improved when a given volume of exports can be exchanged for a larger volume of imports. theta (statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
theta
(statistics/foreign exchange) A ratio expressing the price change of an option (i.e. the change in the premium) over a period of time (per time unit). Mathematically, this corresponds to the 1st derivative of the option premium according to the time factor. thing in action (law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
thing in action
(law) A right to bring a legal action to recover personal property, money, damages, or a debt. A seller, for example, who has a right to recover payment for goods and who is not in possession of the buyer's payment has a thing in action, that is, a right to procure payment by lawsuit. Third Country Meat Directive A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Third Country Meat Directive
A regulation by which the European Community (EC) controls meat imports based on sanitary requirements. The TCMD requires individual inspection and certification by EC veterinarians of meat plants wishing to export to the EC. See European Community. third-party beneficiary (law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
third-party beneficiary
(law) An individual or legal entity that benefits from, but is not a contracting party of, a contract between two or more other individuals or legal entities. A bank, for example, that loans a business owner funds to purchase specific property is a third-party beneficiary to the sales contract between the business owner and seller. third party documents (banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
third party documents
(banking) In letter of credit operations, documents which indicate a party other than the beneficiary of the credit as the consignor of the goods. Banks accept third party transport documents. See transport documents; letter of credit. third world countries (economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
third world countries
(economics) Developing countries, especially in Asia, Africa and Latin America, but excluding communist countries and industrial non-communist countries. through bill of lading (shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
through bill of lading
(shipping) A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. See bill of lading; ocean bill of lading. through rate (shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
through rate
(shipping) A shipping rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates. tick See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tick
See pips. tied aid credit The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tied aid credit
The practice of providing grants and/or concessional loans, either alone or combined with export credits, linked to procurement from the donor country. tied loan (banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tied loan
(banking) A loan made by a government agency that requires a foreign borrower to spend the proceeds in the lender's country. time arbitrage See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
time arbitrage
See arbitrage, time. time definite delivery (shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
time definite delivery
(shipping) The range of service performance standards offered by air freight carriers which permit the customer to select a specific time frame for delivery based on requirements for service and economy. These service standards provide door-to-door (pickup and delivery) schedule patterns based on same day, next day, second or third day delivery needs. time deposits (banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
time deposits
(banking) Funds invested in a bank for a pre-determined time and at a specific interest rate. For large amounts, conditions can be freely negotiable (maturity, interest rate). time draft (banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
time draft
(banking) A financial instrument that is payable at a future fixed or determinable date. See bill of exchange. time value (finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
time value
(finance) The value of an option if the intrinsic value is zero. It merely reflects possible price fluctuations of the underlying instrument, so that at a later point in time the option could achieve an intrinsic value. Tokyo Round (GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Tokyo Round
(GATT) The seventh round of multilateral negotiations concerning the General Agreement on Tariffs and Trade (GATT). Begun in 1973, it concluded November 1979, with agreements covering the following: (1) an improved legal framework for the conduct of world trade (which includes preferential tariff and non-tariff treatment in favor of, and among, developing countries as a permanent legal feature of the world trading system); (2) non-tariff measures (subsidies and countervailing measures; technical barriers to trade; government procurement; customs valuation; import licensing procedures; a revision of the 1967 GATT anti-dumping code); (3) bovine meat; (4) dairy products; (5) tropical products; and (6) an agreement on free trade in civil aircraft. Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Participating countries (99) also agreed to reduce tariffs on thousands of industrial and agricultural products. These cuts were gradually implemented over a period of eight years ending January 1, 1987. The total value of trade affected by Tokyo Round most-favored-nation (MFN) tariff reductions, and by bindings of prevailing tariff rates, amounted to more than US$300 billion, measured on MFN imports in 1981. As a result of these cuts, the weighted average (the average tariff measured against actual trade flows) on manufactured products in the world's nine major industrial markets declined 7.0 to 4.7 percent, representing a 34 percent reduction of customs collection. This can be contrasted with the average tariff of around 40 percent at the time of GATT's establishment in the late 1940's. Since the tariff-cutting formula adopted by most industrialized countries resulted in the largest reductions generally being made in the highest duties, the customs duties of different countries were brought closer together or "harmonized." See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
See also General Agreement on Tariffs and Trade; rounds; Uruguay Round. tolar The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tolar
The currency of Slovenia. 1SiT=100 stotinev. tom/next (foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tom/next
(foreign exchange) Swap transaction where the spot side becomes due on the business day following the day on which the contract was concluded and where the forward side becomes due on the day after, i.e. on the normal spot value date. ton (measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
ton
(measure) A unit of mass or weight equal to 1.1016 metric tons, 2,240 pounds, or 1,016.06 kilograms. ton mile (shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
ton mile
(shipping) The transport of one ton of cargo for one mile. Used most often in air cargo services. to order (law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
to order
(law/banking/shipping) A term on a financial instrument or title document indicating that it is negotiable and transferable. For example, on a bill of lading "to order" means that it is negotiable and transferable by the person or entity whose name appears on the document. total cost of distribution (shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
total cost of distribution
(shipping) The sum total of all the costs incurred in the distribution of goods. The total cost of distribution includes such items as: (1) Transportation charges, (2) Inventory carrying costs, (3) Warehousing expenses, (4) Packaging, (5) Insurance, (6) Product obsolescence while en route or in storage, and (7) Pilferage. total loss (insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
total loss
(insurance) An actual total loss occurs when the goods are destroyed, when the assured is irretrievably deprived of their possession or when they arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a "loss of specie," are cement arriving as rock or textiles as rags. Disasters likely to give rise to total loss include fire, sinking or stranding of the vessel, collision and loss overboard in the course of loading or discharge. tracer (shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tracer
(shipping) (a) A request upon a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery; (b) A request for an answer to a communication, or for advice concerning the status of a subject. tracking; tracing (shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tracking; tracing
(shipping) A carrier's system of recording movement intervals of shipments from origin to destination. tractor (shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tractor
(shipping) A vehicle designed and used primarily for drawing other vehicles and not so constructed as to carry a load other than part of the weight of the vehicle and load so drawn. Trade Act of 1974 (U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Act of 1974
(U.S. law) Legislation enacted late in 1974 and signed into law in January 1975, granting the President broad authority to enter into international agreements to reduce import barriers. Major purposes were to: (1) stimulate U.S. economic growth and to maintain and enlarge foreign markets for the products of U.S. agriculture, industry, mining and commerce; (2) strengthen economic relations with other countries through open and non-discriminatory trading practices; (3) protect American industry and workers against unfair or injurious import competition; and (4) provide "adjustment assistance" to industries, workers and communities injured or threatened by increased imports. The Act allowed the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favored-Nation Treatment could be extended to non-market economy countries and provided negotiating authority for the Tokyo Round of multilateral trade negotiations. See trade adjustment assistance; most favored nation; Tokyo Round. trade adjustment assistance (TAA) (U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade adjustment assistance (TAA)
(U.S.) TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by the U.S. Department of Commerce; TAA for workers is administered by the U.S. Department of Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm's workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm's sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports. See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
See United States Department of Commerce; United States Department of Labor. Trade Adjustment Assistance Centers (U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Adjustment Assistance Centers
(U.S.) TAACs are nonprofit, nongovernment organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the U.S. Department of Commerce as a primary source of technical assistance to certified firms. See trade adjustment assistance; United States Department of Commerce. Trade Agreements Act of 1979 (U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Agreements Act of 1979
(U.S.) Legislation authorizing the U.S. to implement trade agreements dealing with non-tariff barriers negotiated during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), including agreements that required changes in existing U.S. laws, and certain concessions that had not been explicitly authorized by the Trade Act of 1974. The Act incorporated into U.S. law the Tokyo Round (GATT) agreements on dumping, customs valuation, import licensing procedures, government procurement practices, product standards, civil aircraft, meat and dairy products, and liquor duties. The Act also extended the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate non-tariff barriers to trade. See General Agreement on Tariffs and Trade; Tokyo Round. Trade and Development Program (TDP) (U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade and Development Program (TDP)
(U.S.) The TDP started within the Agency for International Development but was spun off as an independent agency in 1981. TDP offers tied aid and resembles Japan's tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services. See International Development Cooperation Agency. trade balance See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade balance
See current balance; balance of payments. trade barriers Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade barriers
Any one or group of tariff or non-tariff barriers to trade often classified into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector). See technical barrier to trade; tariff; quota. trade concordance Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade concordance
Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard International Trade Classification (SITC) system. The U.S. Bureau of the Census, the United Nations, as well as individual U.S. Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data. See Harmonized System. trade deficit (economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade deficit
(economics) A nation's excess of imports over exports over a period of time. trade event A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade event
A promotional activity that may include a demonstration of products or services and brings together in one viewing area the principals in the purchase and sale of the products or services. As a generic term, trade events may include trade fairs, trade missions, trade shows, catalog shows, matchmaker events, foreign buyer missions, and similar functions. Trade Expansion Act of 1962 (U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Expansion Act of 1962
(U.S. law) The Act provided authority for U.S. participation in the Kennedy Round of the General Agreement on Tariffs and Trade (GATT). The legislation granted the President general authority to negotiate, on a reciprocal basis, reductions of up to 50 percent in U.S. tariffs. The Act explicitly eliminated the "Peril Point" provision that had limited U.S. negotiating positions in earlier GATT Rounds, and instead called on the Tariff Commission, the U.S. International Trade Commission, and other federal agencies to provide information regarding the probable economic effects of specific tariff concessions. This Act superseded the Trade Agreements Act of 1934, as amended. See General Agreement on Tariffs and Trade; peril point. trade fair A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade fair
A stage-setting event in which firms of several nationalities present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). A distinguishing factor between trade fairs and trade shows is size. A trade fair is generally viewed as having a larger number of participants than other trade events, or as an event bringing together related industries. Trade Fair Certification Program (U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Fair Certification Program
(U.S.) The U.S. Department of Commerce Trade Fair Certification program was started in 1983 to promote selected privately organized trade shows. The program helps private sector organizations in mounting certified international fairs. The Department of Commerce assistance includes promoting the fair among foreign customers and helping exhibitors to make commercial contacts. See United States Department of Commerce. Trade Information Center (U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Information Center
(U.S.) A U.S. government one-stop source for information on Federal programs to assist U.S. exporters; Tel: (800) USA-TRADE ((800) 872-8723). Address: Trade Information Center, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. trade loss (insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade loss
(insurance) The ordinary and unavoidable loss of weight caused by evaporation as in ore shipments. May also include shortages due to other causes which are considered normal and unavoidable. These losses are generally uninsurable. trademark (law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trademark
(law) A distinctive identification of a manufactured product or of a service taking the form of a name, logo, motto, and so on; a trademarked brand has legal protection and only the owner can use the mark. A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
A trademark is distinguished from a servicemark in that the former identifies products while the later identifies services. Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trademark protection varies from country to country, and may not be available in some jurisdictions. If trademark protection is available under the laws of a particular country, a trademark may usually be registered only if it is distinguishable from other registered trademarks and if it contains a name, brand, label, signature, word, letter, numeral, device, or any combination of these items. A country that is a member the Paris Convention for the Protection of Industrial Property may recognize trademarks held in other jurisdictions. (U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(U.S.) Organizations that file an application at the U.S. Patent Office and use the brand for five years may be granted a trademark. A firm may lose a trademark that has become generic. Generic names are those which consumers use to identify the product, rather than to specify a particular brand (e.g., escalator, aspirin and nylon). See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
See copyright; service mark; patent; World Intellectual Property Organization; Patent Cooperation Treaty. trade mission Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade mission
Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. (U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(U.S.) International Trade Administration (ITA) trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. ITA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies. trade name (law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade name
(law) The name under which an organization conducts business, or by which the business or its goods and services are identified. It may or may not be registered as a trademark. Trade Negotiations Committee (GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Negotiations Committee
(GATT) The steering group which managed the General Agreement on Tariffs and Trade (GATT) Uruguay Round negotiations. The TNC is comprised of all countries participating in the Uruguay Round negotiations (that is, it is not limited simply to members of the GATT). The TNC functions at the non-ministerial level. See General Agreement on Tariffs and Trade; rounds; Uruguay Round. tradeoffs (shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tradeoffs
(shipping) Interaction between related activities such as the offsetting of higher costs in one area with reduced costs or other benefits in another. In air freight, for example, the classic "tradeoff" is one of time (quick delivery) versus money (greater expense). Trade Opportunities Program (U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Opportunities Program
(U.S.) An International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including specifications, quantities, end use, and delivery deadlines. TOP leads are telexed to Washington and listed on the Commerce Department's Economic Bulletin Board and redistributed by the private sector. Contact Economic Bulletin Board office at Tel: (202) 482-1986; Fax: (900) 786-2329 (at a cost of $0.65 per minute). Trade Policy Committee (TPC) (U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Policy Committee (TPC)
(U.S.) A cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the U.S. Trade Representative) to provide broad guidance on trade issues. Members include the Secretaries of Commerce, State, Treasury, Agriculture, and Labor. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and the other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. See Economic Policy Council. Trade Policy Review Mechanism The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Policy Review Mechanism
The TPRM was created at the General Agreement on Tariffs and Trade (GATT) Uruguay Round mid-term ministerial meeting in Montreal. Under the TPRM, the trade policies of any GATT contracting party are subject to regularly scheduled review by the GATT Council. Reviews may lead to recommendations on ways to improve a contracting party's trade policies. See General Agreements on Tariffs and Trade; Uruguay Round. Trade Promotion Coordinating Committee (U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Promotion Coordinating Committee
(U.S.) The President established the TPCC in May 1990 to unify and streamline the government's decentralized approach to export promotion. TPCC members include Departments of Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the Office of Management and Budget, the U.S. Trade Representative, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration. The TPCC chair office is at the U.S. Department of Commerce. 19 agencies are on the committee. The Trade Information Center ((800) USA-TRADE) was created as one of the main missions of the TPCC. The TPCC is not a body which would be contacted by the general public. If you have questions about what they do, or how it works, call (800) USA-TRADE. trade-related aspects of intellectual property rights (TRIPs) (U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade-related aspects of intellectual property rights (TRIPs)
(U.S.) TRIPs refers to U.S. intellectual property rights objectives in the General Agreement on Tariffs and Trade (GATT) Uruguay Round. These objectives include achieving a comprehensive GATT agreement that would include: (1) substantive standards of protection for all areas of intellectual property (patents, trademarks, copyrights, etc.); (2) effective enforcement measures (both at the border and internally); and (3) effective dispute settlement provisions. See Uruguay Round. trade show A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade show
A trade show is a stage-setting event in which firms present their products or services to prospective customers in a pre-formatted setting (usually a booth of a certain size which is located adjacent to other potential suppliers). The firms are generally in the same industry but not necessarily of the same nationality. A distinguishing factor between trade fairs and trade shows is size. A trade show is generally viewed as a smaller assembly of participants. trade surplus (economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade surplus
(economics) A nation's excess of exports over imports over a period of time. Trade Tariff Act of 1930 (U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
Trade Tariff Act of 1930
(U.S. law) U.S. statutes originally enacted in 1930 and amended periodically that impose duties payable for the importation of articles into the United States and that contain schedules of the duties for specific merchandise. The Act is found at 19 United States Code, sections 1202, et seq. trade terms (a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade terms
(a) The terms of a sale. The setting of responsibilities of the buyer and seller in a sale, including: sale price, responsibility for shipping, insurance and customs duties. (b) One of the several recognized sets of definitions of trade terms. The most widely used trade terms are Incoterms 1990, which are published by the International Chamber of Commerce, which have replaced the now obsolete Revised American Foreign Trade Definitions. See Incoterms 1990; International Chamber of Commerce. trade-weighted revaluation rate (foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trade-weighted revaluation rate
(foreign exchange) The change in value of a currency is ascertained in terms of an index against a basket of currencies. The make-up of the currencies in the basket and their weighting are determined according to the percentage of exports of the country whose currency is to be valued with its trading partners. trailer (shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
trailer
(shipping) A vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle. tramp line (shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tramp line
(shipping) A transportation line operating tramp steamers. tramp steamer (shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
tramp steamer
(shipping) A steamship which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained. transaction value (general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
transaction value
(general) The price actually paid or payable for merchandise. (U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(U.S. Customs) U.S. Customs officers are required by law to determine the value of imported merchandise. Valuation is necessary for statistical purposes as well as to determine the amount of import duty which must be paid if the duty rate is stated as a percentage of value (ad valorem duty). The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price: (1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(1) The packing costs incurred by the buyer. (2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(2) Any selling commission incurred by the buyer, (3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(3) The value of any assist, (4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(4) Any royalty or license fee that the buyer is required to pay as a condition of the sale, and (5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(5) The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise. The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
The amounts for the above items are added only to the extent that each is not included in the price actually paid or payable and information is available to establish the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined and the next basis of value, in order of precedence, must be considered for appraisement. If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
If the transaction value cannot be used, then certain secondary bases are considered. The secondary bases of value, listed in order of precedence for use, are: (1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(1) Transaction value of identical merchandise, (2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(2) Transaction value of similar merchandise, (3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(3) Deductive value, and (4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
(4) Computed value. The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
The order of precedence of the last two values can be reversed if the importer so requests. See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
See valuation; identical merchandise; similar merchandise; computed value; deductive value; assist. transferable letter of credit (banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
transferable letter of credit
(banking) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary. A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.
A letter of credit can only be transferred if it is expressly designated as "transferable" by the issuing bank. This type of letter of credit enables intermediaries (first beneficiaries) to offer security in the form of a letter of credit to their suppliers (second beneficiaries). See letter of credit.