Terms used in export business such as License Exception,Local clearance,Local export control, Manufacture etc.
This post explains about terms used in export business such as Landing Certificate, Letter of Credit,License Exception,Local clearance,Local export control, Manufacture, Marks,Member State,Market Forces etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in export business
L/C:Letter of Credit.
Landing Certificate:A document issued by the government of country of destination, certifying a specific commodity has been arrived in the designated country. In Hong Kong, it is issued by the Census and Statistics Department. Application requirements include letter stating the reason for the application, import declaration & receipt; bill of lading, sea waybill & land manifest; supplier's invoice; and packing list (if any).
Legal Weight:The weight of goods plus any immediate wrappings which are sold along with the goods; e.g., the weight of a tin can together with its contents. See "Net Weight."
Letter of Credit (L/C): A L/C is a commitment, usually by a bank on behalf of a client, to pay a beneficiary (usually the exporter) a stated amount of money provided the beneficiary has complied with all the terms and conditions of the letter of credit. This usually involves the exporter presenting specified trade documents such as the commercial invoice, bill of lading, inspection and insurance certificates, etc. The foreign buyer applies for issuance of a letter of credit from the buyer’s bank to the exporter’s bank and therefore is called the applicant; the exporter is called the beneficiary. An Irrevocable Letter of Credit cannot be changed or amended unilaterally by either the applicant (buyer) or the beneficiary (seller) unless both parties mutually agree and is the most common form of L/C. A Confirmed Letter of Credit adds the payment guarantee of the exporter’s bank in case the buyer and the buyer’s bank cannot make payment when the exporter has complied with the terms of the L/C. A Standby Letter of Credit is a continuous “back-up” letter of credit that guarantees the exporter will receive payment by the issuing bank if the importer defaults on the order.
License – Authority issued by the Bureau of Industry and Security authorizing an export, reexport, or other regulated activity. The term "license" does not include authority represented by a "License Exception."
License Exception - An authorization described in part 740 of the EAR that allows you to export or reexport, under stated conditions, items subject to the EAR that otherwise would require a license. Unless otherwise indicated, these License Exceptions are not applicable to exports under the licensing jurisdiction of agencies other than the Department of Commerce.
Licensing: Licensing is a contractual arrangement in which the licensor’s patents, trademarks, copyrights, trade secrets, or other intellectual property may be sold or made available to a licensee for compensation that is negotiated in advance between the parties. This compensation, or royalties, may be a lump sum royalty, a running royalty (royalty that is based on volume of production), or a combination of both. US companies frequently license their technology to foreign companies that then use it to manufacture and sell products in a country or group of countries defined in the licensing agreement. Licensing is not limited to the manufacturing sector. Franchising is also an important form of technology licensing used by many service industries. In franchising, the franchisor (licensor) permits the franchisee (licensee) to employ its trademark or service mark in a contractually specified manner for the marketing of goods or services. The franchisor usually continues to support the operation of the franchisee’s business by providing advertising, accounting, training, and related services and in many instances also supplies products needed by the franchisee.
Loading list :A commercial document which may be used when more than one item is being shipped. It may be used instead o
f continuation sheets to supplement single administrative document or community transit documents.
Loading pass :A document for the purpose of obtaining authority to load local export control goods boarding a ship or aircraft, after they have been removed from the trader's approved premises.
Local clearance :Entry of imported goods into commercial records at designated premises away from the frontier.
Local clearance procedure (LCP) :A simplified procedure involving pre-shipment notification to the Customs Handling of Import and Export Freight (CHIEF) system, and entry in commercial records. A subsequent submission of a supplementary declaration to CHIEF is required within a specified period.
Local export control (LEC) :Allows exporters and freight forwarders who regularly export goods, to have their consignments cleared at their own inland premises without having to present normal pre-shipment documents at the UK port of loading/office of exit.
Main compensating product :The product which results from the processing of goods imported under inward processing relief (IPR). The main compensating product is the product which forms the basis of the IPR authorisation and which is to be exported.
Manifest - [check Ship's Manifest]
Manufacture :For the purposes of preference, this covers any processing, working, specific operations or assembly (except for certain minimal processes) carried out in the manufacture of the product in the European Union.
Marine Insurance - An insurance, which compensates the owner of goods transported overseas in the event of loss that cannot be recovered from the carrier.
Marine Insurance: Broadly, insurance covering loss or damage of goods at sea. Marine insurance will typically compensate the owner of merchandise for losses sustained from fire, shipwreck, piracy, and various other causes; but it excludes losses which can be legally recovered from the carrier. Compare CREDIT RISK INSURANCE.
Market Access:The ability of domestic providers of goods and services to penetrate a related market in a foreign country. The extent to which the foreign market is accessible generally depends on the existence and extent of trade barriers
Market Economy:The national economy of a country that relies on market forces to determine levels of production, consumption, investment, and savings without government intervention.
Market Forces:Shifts in demand and supply that are reflected in changing relative prices, thus serving as indicators and guides for enterprises that make investment, purchase, and sales decisions.
Marking (for marks) - It is the letters, numbers, and any other symbols placed on cargo packages to facilitate identification.
Marking :Letters, numbers and other symbols placed on cargo to enable it to be identified more easily.
Marks of origin - It is the physical marking on a product indicating the country of origin where the article was produced.
Marks:A set of letters, numbers and/or geometric symbols, generally followed by the name of the port of destination, placed on packages for export for identification purposes.
Master Air Waybill (MAWB) :Refers to the bill of lading on a consolidated air shipment.
Maturity Date:The date upon which a draft or acceptance becomes due for payment. Most-Favored-Nation Status: All countries having this designation receive equal treatment with respect to customs and tariffs.
MEA:Manufacturer's Export Agent. See "Export Management Company." Manufacturer's Export Agent (MEA): See "Export Management Company."
Medicines - Medicines means "drug" as defined in section 201 of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321). For purposes of the EAR, medicines includes prescription and over the counter medicines for humans and animals. Note that certain medicines, such as vaccines and immunotoxins, are on the Commerce Control List. Only items meeting the definition of "medicine" and that are classified as EAR99 are eligible for export to Iran and Sudan under the licensing procedures set forth in the appropriate regulations promulgated and administered by Treasury's Office of Foreign Assets Control.
Member State :A member state of the European Union.
Misdeclaration :Incorrect information on any declaration made to HM Revenue & Customs (HMRC).
Monitoring - Monitoring refers to the surveillance of labour practices against a standard by a person (or persons) with a continuous or frequent presence in the workplace and unobstructed access to management and staff.
The above details describes about terms called in export business such as Landing Certificate, Letter of Credit,License Exception,Local clearance,Local export control, Manufacture, Marks,Member State,Market Forces etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in export trade below this post.continue reading: Terms used in export business such as Intermediate consignee,Insurance policy,Inventory system,Joint Venture
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