Dictionary Definitions

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validated export license

(U.S.) A document issued by the U.S. government authorizing the export of commodities for which written export authorization is required by law. For more information on export licensing in general, call Exporter Assistance at: (202) 482-4811. Address: Bureau of Export Administration, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230; Tel: [1] (202) 482-2721; Fax: (202) 482-2387.

(banking) The time period for which a letter of credit is valid. After receiving notice of a letter of credit opened in his behalf, the seller/exporter/beneficiary must meet all the requirements of the letter of credit within the period of validity. See letter of credit.

The fixing of value to anything. Synonymous with "appraising."

(customs) The appraisal of the worth of imported goods by customs officials for the purpose of determining the amount of duty payable in the importing country. The GATT Customs Valuation Code obligates governments that sign it to use the "transaction value" of imported goods--or the price actually paid or payable for them--as the principal basis for valuing the goods for customs purposes.

(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).

Generally, the Customs value of all merchandise exported to the United States is the transaction value for the goods. 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.

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 transaction value; deductive value; computed value.

valuation charges

(shipping) Transportation charges assessed shippers who declare a value of goods higher than the value of carriers' limits of liability. See declared value for carriage.

valuation clause

(insurance) A clause in an insurance policy stating the value of the policy. A valuation clause commonly in use reads:

"valued premium included at amount of invoice, including all charges in the invoice and including prepaid and/or advanced and/or guaranteed freight, if any, plus _____%." (This is usually 10% on exports.)

value added

(economics) That part of the value of produced goods developed in a company. It is determined by subtracting from sales the costs of materials and supplies, energy costs, contract work, and so on, and it includes labor expenses, administrative and sales costs, and other operating profits. See also value-added tax.

value added counseling

Valued added (export) counseling is defined as assessing a company's current international business operations and assisting a client in one or more of the following: (1) identifying and selecting the most viable markets; (2) developing an export market strategy; (3) implementing the export market strategy; and (4) increasing market presence.

value-added tax (VAT)

(taxation) An indirect tax on consumption that is assessed on the increased value of goods at each discrete point in the chain of production and distribution, from the raw material stage to final consumption. The tax on processors or merchants is levied on the amount by which they increase the value of items they purchase and resell.

(banking) Fixing of a value date for accounting purposes on banking operations, i.e. the date on which the interest accrual for the respective accounting entry begins or ends.

variable levy

See variable rate of duty.

variable rate of duty

(customs) A tariff subject to alterations as world market prices change, the alterations are designed to assure that the import price after payment of the duty will equal a predetermined "gate" price.

vatu

The currency of Vanuatu. 1VT=100 centimes.

vega

(statistics/foreign exchange) The price change of a foreign exchange option for a 1 percent change in the implied volatility.

A company or individual that supplies goods or services.

Vennootschap onder firma

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

vertical export trading company

An export trading company that integrates a range of functions taking products from suppliers to consumers.

(shipping/measurement) A unit of measurement in the shipping industry assuming that 100 cubic feet of cargo equals one ton.

visa

(general) A certificate or stamp placed in a passport by a foreign government's embassy, consular office or other representative. It permits the holder to either visit (tourist visa) conduct business in (business visa), work (work permit or visa) in, or immigrate (residency or immigration visa) to the issuing country for a specified time.

(customs) A license issued by the government of an exporting country for the export to a specific importing country of a certain quantity of a quota controlled commodity (such as textiles) subject to a voluntary export restriction or a voluntary restraint agreement.

visa waiver

A program of selected countries to eliminate their visa requirement on a test basis.

(law) A major force or disturbance, usually a natural cause, that a person cannot prevent despite exercise of due care. Floods and labor strikes are examples of vis major events.

void ab initio

(law) Invalid from the time of initiation. A contract, for example, that violates law or public policy is void ab initio, that is, it is invalid when it is made.

voidable contract

(law) An agreement that is valid but that one party may declare invalid because of a defect or illegality in making it. A contract that is entered into in reliance on a fraudulent misrepresentation, for example, will be enforced against the party that committed the fraud, but the party harmed by the misrepresentation may elect to void the contract.

void contract

(law) An agreement that has no legal effect and that cannot be ratified or otherwise made effective. A contract that requires the performance of an illegal act, for example, is void and cannot become effective.

(foreign exchange) The measure of the relative deviation of a price from the mean.

volume rate

(shipping) A rate applicable in connection with a specified volume of freight.

voluntary export restriction

An understanding between trading partners in which the exporting nation, in order to reduce trade friction, agrees to limit its exports of a particular good. Also called voluntary restraint agreement. See voluntary restraint agreements.

voluntary restraint agreements (VRA's)

Informal bilateral or multilateral arrangements through which exporters voluntarily restrain certain exports, usually through export quotas to avoid economic dislocation in an importing country and to avert the possible imposition of mandatory import restrictions.

These arrangements do not involve an obligation on the part of the importing country to provide "compensation" to the exporting country, as would be the case if the importing country unilaterally imposed equivalent restraints on imports. See voluntary export restriction; quota; visa.

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