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IC2X
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Export Reference Directory
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Quadrilateral Meetings - These are meetings involving trade ministers from
the U.S., the European Community, Canada, and Japan to discuss trade policy
matters.
Quantitative Restrictions - Explicit limits, usually by volume, on the amount
of a specified commodity that may be imported into a country, sometimes also
indicating the amounts that may be imported from each supplying country.
Compared to tariffs, the protection afforded by QR's tends to be more
predictable, being less affected by changes in competitive factors. Quotas have
been used at times to favor preferred sources of supply. The GATT generally
prohibits the use of quantitative restrictions, except in special cases, such as
those cited in Articles XX (which permits exceptions to protect public health,
national gold stocks, goods of archeological or historic interest, and a few
other special categories of goods), or Article XXI (which permits exceptions in
the interest of "national security"), or for safeguard purposes, when
the appropriate procedures in Article XIX have been followed.
Quotas and Quota System -
Absolute quotas permit a limited number of units of specified merchandise to be
entered or withdrawn for consumption during specified periods. Tariff-rate
quotas permit a specified quantity of merchandise to be entered or withdrawn at
a reduced rate during a specified period. Quotas are established by
Presidential Proclamations, Executive Orders, or other legislation. The
Quota System, a part of Customs' Automated Commercial System, controls quota
levels (quantities authorized) and quantities entered against those levels.
Visas control exports from the country of origin. Visa authorizations are
received from other countries and quantities entered against those visas are
transmitted back to them. Control of visas and quotas simplify reconciliation of
other countries' exports and U.S. imports. See: International Monetary
Fund.
Quotation - An offer to sell goods at a stated price and under specified conditions.
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Rank in Person - The personal rank that a Foreign Service officer maintains
even when occupying a job of higher or lower rank.
Reciprocal Defense Procurement Memoranda of Understanding - Reciprocal
memoranda of understanding (MOU) are broad bilateral umbrella MOUs that seek to
reduce trade barriers on defense procurement. They usually call for the waiver
of "buy national" restrictions, customs and duties to allow the
contractors of the signatories to participate, on a competitive basis, in the
defense procurement of the other country. These agreements were designed in the
late 1970's to promote rationalization, standardization, and interoperability of
defense equipment within NATO. At that time, the MOU's were also intended to
reduce the large defense trade advantage the United States possessed over the
European allies. The first agreements were signed in 1978.
Reciprocity - reduction of a country's import duties or other trade
restraints in return for comparable trade concessions from another
country. Reciprocity includes the
lowering of customs duties on imports in return for tariff concessions from
other countries; the negotiated reduction of a country's import duties or other
trade restraints in return for similar concessions from another country.
Reciprocity is a traditional principle of GATT trade negotiations that implies
an approximate equality of concessions accorded and benefits received among or
between participants in a negotiation. In practice this principle applies only
in negotiations between developed countries. Because of the frequently wide
disparity in their economic capacities and potential, the relationship between
developed and developing countries is generally not one of equivalence. The
concept of "relative reciprocity" has emerged to characterize the
practice by developed countries to seek less than full reciprocity from
developing countries in trade negotiations.
Reexports - For export control purposes: the shipment of U.S. origin products
from one foreign destination to another. For statistical reporting purposes:
exports of foreign-origin merchandise which have previously entered the United
States for consumption or into Customs bonded warehouses for U.S. Foreign Trade
Zones.
Remitting bank - The bank that sends the draft to the overseas bank for collection.
Representative - See Foreign sales agent.
Request/Offer - A negotiating approach whereby
requests are submitted by a country to a trading partner identifying the
concessions another seeks through negotiations. Compensating offers are
similarly tabled and negotiated by delegates of the countries involved.
Reserve Tranche - Member countries of the International Monetary Fund (IMF)
have a reserve tranche position to the extent that their quotas exceed the IMF's
holdings of its currency in the General Resources Account, excluding holdings
arising out of purchases made by the member under all policies on the use of the
IMF's general resources. A member may purchase up to the full amount of its
reserve tranche at any time, subject only to the requirement of balance of
payments need. A reserve tranche position does not constitute a use of IMF
credit and is not subject to charges or to an expectation or obligation to
repurchase. See: International Monetary Fund.
Residual Restrictions - Quantitative restrictions that have been maintained
by governments before they became contracting parties to GATT and, hence,
permissible under the GATT "grandfather clause." Most of the residual
restrictions still in effect are maintained by developed countries against the
imports of agricultural products.
Restrictive Business Practices - Actions in the private sector, such as
collusion among the largest international suppliers, designed to restrict
competition so as to keep prices relatively high.
Retaliation - Action taken by a country whose exports are adversely affected
by the raising of tariffs or other trade restricting measures by another
country. The GATT permits an adversely
affected contracting party (CP) to impose limited restraints on imports from
another CP that has raised its trade barriers (after consultations with
countries whose trade might be affected). In theory, the volume of trade
affected by such retaliatory measures should approximate the value of trade
affected by the precipitating change in import protection.
Returned Without Action - For export control purposes: the return of a
license application without action is used when the application is incomplete,
additional information is required, or the product is eligible for a General
License.
Reverse Preferences - Tariff advantages once offered by developing countries
to imports from certain developed countries that granted them preferences.
Reverse preferences characterized trading arrangements between the European
Community and some developing countries prior to the advent of the Generalized
System of Preferences (GSP) and the signing of the Lom Convention.
Revocable letter of credit - A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee's bank. Compare Irrevocable letter of credit.
Revocation of Antidumping Duty Order & Termination of Suspended -
Investigation - An antidumping duty order may be revoked or a suspended
investigation may be terminated upon application from a party to the proceeding.
Ordinarily the application is considered only if there have been no sales at
less than fair value for at least the two most recent years. However, the
International Trade Administration may on its own initiative revoke an
antidumping duty order or terminate a suspended investigation if there have not
been sales at less than fair value for a period of 3 years. See: Tariff Act of
1930.
Rio Group - The Rio Group is a political forum of Latin American and
Caribbean countries which promotes regional political, economic and social
cooperation. The Group is comprised of 13 countries, including 11 permanent
members: Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Mexico, Paraguay,
Peru, Uruguay and Venezuela and two rotating members which representing the
Central American countries and the Caribbean nations.
Rollback - Rollback refers to an agreement among Uruguay Round participants
to dismantle all trade-restrictive or distorting measures that are inconsistent
with the provisions of the GATT. Measures subject to rollback would be phased
out or brought into conformity within an agreed timeframe, no later than by the
formal completion of the negotiations. The rollback agreement is accompanied by
a commitment to "standstill" on existing trade-restrictive measures.
Rollback is also used as a reference to the imposition of quantitative
restrictions at levels less than those occurring in the present. See:
Standstill.
Rounds - Cycles of multilateral trade negotiations under GATT, culminating in
simultaneous agreements among participating countries to reduce tariff and
non-tariff trade barriers. - 1st Round: 1947, Geneva (creation of the
GATT) - 2nd Round: 1949, Annecy, France (tariff reduction) - 3rd Round: 1951,
Torquay, England (accession & tariff reduction) - 4th Round: 1956, Geneva
(accession and tariff reduction) - 5th Round: 1960-62, Geneva
("Dillon" Round; revision of GATT; addition of more countries) - 6th
Round: 1964-67, Geneva ("Kennedy" Round) - 7th Round: 1973-79, Geneva
("Tokyo" Round) - 8th Round: 1986-93, Geneva ("Uruguay"
Round)
Russian Project Finance Bank - The RPFB is a new financial institution set up
with the assistance of the European Community. The Bank is intended to develop
efficient financial systems in Russia capable
of channeling foreign and domestic investment into priority areas by providing
medium and long-term financial and high quality investment banking advisory
services to businesses.
Russian Union of Industrialists and Entrepreneurs - RUIE promotes commercial
links between Western firms and Soviet defense firms. The Union, an independent
agency created by the Russian Central government, consists of hundreds of major
enterprises and associations.
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Safeguards - The General Agreement on Tariffs and Trade (GATT) permits two
forms of multilateral safeguards: (a) a country's right to impose temporary
import controls or other trade restrictions to prevent commercial injury to
domestic industry, and (b) the corresponding right of exporters not to be
deprived arbitrarily of access to markets. Article XIX of the GATT permits
a country whose domestic industries or workers are adversely affected by
increased imports to withdraw or modify concessions the country had earlier
granted, to impose, for a limited period, new import restrictions if the country
can establish that a product is "being imported in such increased
quantities as to cause or threaten serious injury to domestic producers,"
and to keep such restrictions in effect for a such time as may be necessary to
prevent or remedy such injury.
Sales Representative - An agent who distributes, represents, services, or
sells goods on behalf of foreign sellers.
Saudi Arabian Standards Organization - SASO was established in April 1972 as
the sole Saudi Arabian government organization to promulgate standards and
measurements in the kingdom. Primarily, SASO promulgates standards for
electrical equipment and some food products. Some of these standards have been
adopted by the Gulf Cooperation Council.
Schedule B - Schedule B is a U.S. Bureau of the Census publication and is
based on the Harmonized Commodity Description and Coding System (Harmonized
System). Export statistics are initially collected and compiled in terms of
approxiximately 8,000 commodity classifications in Schedule B, Statistical
Classification of Domestic and Foreign Commodities Exported from the United
States. See: Tariff Schedules of the United States Annotated.
Scope Determinations - Scope determinations deal with the product coverage of
antidumping and countervailing duty orders. The Department of Commerce will
determine -- in response to an application from an interested party or on its
own initiative -- whether a certain product is included within the scope of an
antidumpting and countervailing duty order.
Secretaria de Comercio y Fomento Industrial - SECOFI
is Mexico's Ministry of Commerce and Industrial Promotion.
Section 201 - Section 201, the "escape clause" provision of the
Trade Act of 1974, permits temporary import relief, not to exceed a maximum of
eight years, to a domestic industry which is seriously injured, or threatened
with serious injury, due to increased imports. Import relief, granted at the
President's discretion, generally takes the form of increased tariffs or
quantitative restrictions. To be eligible for section 201 relief, the
International Trade Commission (ITC) must determine that: (a) the industry has
been seriously injured or threatened to be injured and (b) imports have been a
substantial cause (not less than any other cause) of that injury.
Industries need not prove that an unfair trade practice exists, as is necessary
under the antidumping and countervailing duty laws. However, under section 201,
a greater degree of injury -- "serious" injury -- must be found to
exist, and imports must be a "substantial" cause (defined as not less
than any other cause) of that injury. If the ITC finding is affirmative,
the President's remedy may be a tariff increase, quantitative restrictions, or
orderly marketing agreements. At the conclusion of any relief action, the
Commission must report on the effectiveness of the relief action in facilitating
the positive adjustment of the domestic industry to import competition. If the
decision is made not to grant relief, the President must provide an explanation
to the Congress. See: Escape clause, Trade Act of 1974.
Section 232 - Under section 232 of the Trade Expansion Act of 1962, as
amended, Commerce determines whether articles are being imported into the U.S.
in quantities or circumstances that threaten national security. Based on the
investigation report, the President can adjust imports of the article(s) in
question. Commerce must report on the effects these imports have on
national security and make recommendations for action or inaction within 270
days after starting an investigation. Within 90 days of the report, the
President decides whether to take action to adjust imports on the basis of
national security. The President must notify Congress of his decision within 30
days. See: Trade Expansion Act of 1962.
Section 301 - Under section 301, firms can complain about a foreign country's
trade policies or practices that are harmful to U.S. commerce. The section
empowers the USTR to investigate the allegations and to negotiate the removal of
any trade barriers. USTR may also self-initiate investigations. Specific
timeframes for conducting the investigations are specified by law. Section 301
requires that GATT's dispute resolution process be invoked where applicable and,
if negotiations fail, to retaliate within 180 days from the date that discovery
of a trade agreement violation took place. See: Special 301, Super
301.
Section 337 - Section 337 of the Tariff Act of 1930 requires investigations
of unfair practices in import trade. Under this authority, the International
Trade Commission applies U.S. statutory and common law of unfair competition to
the importation of products into the United States and their sale. Section 337
prohibits unfair competition and unfair importing practices and sales of
products in the U.S., when these threaten to: (a) destroy or substantially
injure a domestic industry, (b) prevent the establishment of such an industry,
or (c) restrain or monopolize U.S. trade and commerce. Section 337 also
prohibits infringement of U.S. patents, copyrights, registered trademarks, or
mask works. See: Tariff Act of 1930.
Section 416 - Section 416 of the Agricultural Act of 1949 provides for the
donation of food and feed commodities owned by Agriculture's Commodity Credit
Corporation and is focused on people in developing countries. See: Food
For Peace, Food For Progress.
Selling, General and Administrative (Expenses) - SGA is the sum of: - General
and administrative expenses (such as: salaries of non-sales personnel, rent,
heat, and light); - Direct selling expenses (that is, expenses that can be
directly tied to the sale of a specific unit, such as: credit, warranty, and
advertising expenses); and - Indirect selling expenses (that is, expenses which
cannot be directly tied to the sale of a specific unit but which are
proportionally allocated to all units sold during a certain period, such as:
telephone, interest, and postal charges).
Semiconductor Trade Arrangement - The U.S.-Japan Semiconductor Trade
Arrangement is a bilateral agreement which came into effect on August 1, 1991,
replacing the prior 1986 Semiconductor Trade Arrangement. The new Arrangement
contains provisions to: (a) increase foreign access to the Japanese
semiconductor market and (b) deter dumping of semiconductors by Japanese
suppliers into the U.S. market, as well as in third country markets. In
evaluating market access improvement, both governments agreed to pay particular
attention to market share. The expectation of a 20 percent foreign market share
by the end of 1992 is included in the Arrangement. The Arrangement explicitly
states, however, that the 20 percent figure is not a guarantee, a ceiling, or a
floor on the foreign market share.
Senior Commercial Officer - The SCO is the senior U.S. and Foreign Commercial
Officer at an embassy and reports in-country to the Ambassador. At major posts,
this position carries the title of Commercial Counselor; in key posts, Minister
Counselor. Usually reporting to the SCO are a Commercial Attache and Commercial
officers. The latter are sometimes assigned to subordinate posts throughout the
country.
Shared Foreign Sales Corporation - A shared FSC is a foreign sales
corporation consisting of more than one and less than 25 unrelated exporters.
See: Foreign Sales Corporation.
SHIELD - SHIELD is an interagency export control committee that reviews
licenses involving chemical or biological weapons.
Shipment - A shipment is all of the cargo carried under the terms of a single
bill of lading.
Shipper's Export Declaration (7525-V) - A form required for all shipments by the U.S. Treasury Department and prepared by a shipper, indicating the value, weight, destination, and other basic information about an export shipment.
For additional information, please see our companion guide: Shippers Export Declaration.
Ship's manifest - An instrument in writing, signed by the captain of a ship, that lists the individual shipments constituting the ship's cargo.
Shipping Weight - Shipping weight represents the
gross weight in kilograms of shipments, including the weight of moisture
content, wrappings, crates, boxes, and containers (other than cargo vans and
similar substantial outer containers).
Short Supply - Commodities in short supply may be subject to export controls
to protect the domestic economy from the excessive drain of scarce materials and
to reduce the serious inflationary impact of satisfying foreign demand. Items
that the U.S. controls for short supply purposes include petroleum and petroleum
products, unprocessed western red cedar, and shipment of horses by sea. The
controls are included in the Export Administration Regulations.
Sight draft (S/D) - A draft that is payable upon presentation to the
drawee. Compare Date draft and Time draft.
Singapore-Jahor-Riau Growth Triangle - SIJORI is a
subregional economic grouping composed of the nation of Singapore, the Malaysian
State of Johor, and Indonesia's Riau Province.
Single Currency Peg - See: Exchange Rate
Classifications.
Single European Act - The SEA, which entered into force in July 1987, was the
first significant revision of the Treaty of Rome. The SEA provides the legal and
procedural support for achievement of the single European Market by 1992. The
SEA revised the EEC Treaty and, where not already provided for in the Treaty,
majority decisions were introduced for numerous votes facing the Council of
Ministers, particularly those affecting establishment of the single European
Market and the European financial common market. The role of the European
Parliament was strengthened; decisions on fiscal matters remained subject to
unanimity.
Single Internal Market Information Service - SIMIS, operated by the Commerce
Department's International Trade Administration, provides information,
assistance, and advice on how to do business in the European Community's
internal market. Telephone: 202-482-5276.
Sistema de Informacion al Comercio Exterior - SICE (English: Foreign Trade
Information System) is a databank which provides foreign trade information to
the public and private sectors of member countries of the Organization of
American States (OAS). The System includes information on the U.S. import and
export markets, markets of other OAS member countries, and trade information on
the European Community and Japan.
Sistema Economico Latinoamericano - See:
Latin American Economic System.
Sociedad Anonima - S.A. (Spanish: "incorporated company") is a form
of corporation which must have at least five shareholders, who may be either
Mexican or foreign. Each shareholder is liable only up to the amount of their
contribution. No shares may be held by the company name. "S.A." must
follow the firm name, indicating that it is a corporation.
Sociedad Anonima de Capital Variable - SA de CV (Spanish: "variable
capital company"), similarly to SA, must have at least five shareholders,
who may be either Mexican or foreign. Each shareholder is liable only up to the
amount of their contribution. SA de CV differs from SA in that an SA de CV may
own its shares. "S.A. de C.V." must follow the firm name indicating
that it a corporation with variable capital.
Societ a Responsabilit Limitata - "Srl" (Italian) is a private
company.
Societ in Nome Collettivo - "Snc" (Italian) is a general
partnership in which there is no limit on the liability of the partners.
Societ Per Azioni - "SpA" (Italian: public corporation) must have
at least two shareholders at formation; after formation, the requirement is
reduced to one shareholder.
Socit Anonyme - S.A. (French: "incorporated") is a form of
corporation which must have at least seven shareholders, who may be either
French or foreign. Each member is liable only up to the amount of stock owned.
Socit Responsabilit Limite - SARL (French: limited liability company")
has features of both a corporation and a partnership. The number of partners
cannot exceed 50. Partners may be
either French or foreign. Partner liabilities are limited to the amount of their
contribution, which may be in cash or in kind but not in skills. While shares
may be freely traded among partners, they may not be transferred to third
parties without majority agreement of partners representing at least 75 percent
of the capital.
Socit en Commandit Simple - Socit en commandit simple (French: "limited
partnership") is composed of general partners, of which the managing
partner at least must have unlimited liability, and silent partners whose
liability is limited to the amount of their capital contributions. Silent
partners are not permitted to perform any management functions vis-a-vis other
partners. In a limited partnership without shares, transfer of shares of the
limited partners is only allowable with the consent of all the partners. In a
limited partnership with shares (Socit en commandit par actions), these are
transferred in a manner similar to corporations.
Socit en Nom Collectif - Socit en nom collectif, SNC, (French: "general
partnership") is organized with all partners being allocated shares for
their contributions, which may be cash, in-kind, or services. There is no
required minimum or maximum capital, nor any share par value. Shares in the firm
are not negotiable and cannot be transferred without agreement of all the
partners. Each partner is liable for
the totality of the firm's debts and obligations.
Socit Internationale Financire pour les Investissements et le Dveloppement en
Afrique - SIFIDA fosters the formation of profitable business in Africa by
identifying and nurturing productive projects, by arranging for syndicated
loans, and by providing export finance. The Society is a holding company
affiliated with the African Development Bank (AfDB); headquarters are in Chne-Bourg,
Switzerland. Major shareholders include the AfDB, the International Finance
Corporation and more than 100 financial, industrial, and commercial institutions
around the world.
Socit par Actions Simplifie - SAS (French: "private limited
company") is designed for joint ventures and permits the rights and
liability of each shareholder to be defined by mutual agreement between the
parties. Only two shareholders are required.
Society for Worldwide Interbank Financial
Telecommunications - SWIFT is a cooperative
organized under Belgian law, with headquarters in La Hulpe, near Brussels. SWIFT
provides communications services to the international banking industry,
including payments and administrative messages and, more recently, securities
settlements. Traffic in 1991 was about 362 million messages. SWIFT is owned by
the member banks -- approximately 1,600 -- including the central banks of most
countries. The U.S. Federal Reserve is not a member, but participates in certain
types of payments. Securities brokers and dealers, clearing and depository
institutions, exchanges for securities, and travellers checks issuers also
participate in SWIFT. SWIFT was organized in 1973 and started operations in
1977.
Soft Currency - The currency of a nation in which exchange may be made only
with difficulty. Soft currency countries typically have minimal exchange
reserves and deficits in their balance of
payments. See: Hard Currency.
Soft Loan - Commonly, a loan from a government or multilateral development
bank with a long repayment period and below-market interest.
South Asian Association for Regional Cooperation - SAARC promotes economi ,
technical, scientific, and social cooperation among members. The Association was
founded in 1985 by seven countries: Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan, and Sri Lanka. The Association plans to establish a South Asian
Preferential Trading Arrangement (SAPTA) by 1997 as a step toward creating an
economic community in south Asia.
South Asia Preferential Trading Arrangement - See: South Asian Association
for Regional Cooperation.
Southern Africa Development Community - SADC, established in April 1980 (as
the Southern Africa Development Coordination Conference), is a regional economic
pact comprising Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia,
Swaziland, Tanzania, Zambia, and Zimbabwe. Since a change in name and focus in
mid-1992, the Community focuses solely on development, leaving trade matters to
the Preferential Trade Agreement for Eastern and Southren Africa (PTA).
Community headquarters are in Gaborone, Botswana.
Southern African Customs Union - SACU, established in 1910, includes
Botswana, Lesotho, Namibia, South Africa, and Swaziland. SACU provides for the
free exchange of goods within the area, a common external tariff, and a sharing
of custom revenues. External tariffs,
excise duties, and several rebate and refund provisions are the same for all
SACU members. SACU's revenues are apportioned among its members according to a
set formula. These funds constitute a significant contribution to each member's
government revenues.
Southern Common Market - See: Mercosur.
Southern Cone - The southern cone consists of Argentina, Brazil, Chile,
Paraguay, and Uruguay. With the exception of Chile, these countries also
comprise the Southern Common Market.
South Group - See: Danish International Development Assistance.
South Pacific Bureau for Economic Cooperation - See: South Pacific Forum.
South Pacific Forum - The SPF is a regional arrangement for convening 15
governments and territories for deliberations on issues of mutual interest. The
Forum was established in 1971; headquarters are in Suva, Fiji; members include:
Australia, the Cook Islands, Fiji, Kirbati, Marshall Islands, Micronesia, Nauru,
New Zealand, Niue, Papua New Guinea, Samoa, Solomon Island, Tonga, Tuvalu, and
Vanatu. The South Pacific Bureau for Economic Cooperation (SPEC) is a subsidiary
organization which promotes regional cooperation in the development of the
island members in partnership with the more industrially developed countries of
the region: Australia and New Zealand.
Special American Business Internship Training Program - SABIT, originally the
Soviet-American Business Internship Training Program, is a cooperative program
that brings business executives and scientists from the former Soviet Union or
three-to six-month internships with American companies. The program teaches
these managers and scientists how to operate in a market economy at the same
time that American businesses development market contacts once their interns
return home. Soviet business managers are referred by the Commerce Department's
International Trade Administration to sponsoring U.S. companies, which make the
final selection of their interns. The program matches U.S. corporate sponsors
with Soviet business executives from the same industries. The Independent States
provide transportation; the companies provide living expenses and training in
management techniques (production, distribution, marketing, accounting,
wholesaling, and publishing).
Special and Differential Treatment - The principle, enunciated in the Tokyo
Declaration, that the Tokyo Round negotiations should seek to accord particular
benefits to the exports of developing countries, consistent with their trade,
financial, and development needs. Among proposals for special or differential
treatment are reduction or elimination of tariffs applied to exports of
developing countries under the Generalized System of Preferences (GSP),
expansion of product and country coverage of the GSP, accelerated implementation
of tariff cuts agreed to in the Tokyo Round for developing country exports,
substantial reduction or elimination of tariff escalation, special provisions
for developing country exports in any new codes of conduct covering nontariff
measures, assurance that any new multilateral safeguard system will contain
special provisions for developing country exports, and the principle that
developed countries will expect less than full reciprocity for trade concessions
they grant developing countries.
Special Drawing Rights - SDRs are international reserve assets, created by
the International Monetary Fund (IMF) in 1970 and allocated to individual member
nations. Within conditions set by the IMF, SDRs can be used by a nation with a
deficit in its balance of international payments to settle debts with another
nation or with the IMF. The value of SDRs is computed as a weighted average of
five currencies: deutsche mark, French franc, Japanese yen, pound sterling, and
U.S. dollar.
Specially Designated Nationals - The Office of Foreign Assets Control (OFAC),
Department of the Treasury, implements and enforces financial and trade
sanctions. FAC has the authority to include within the definition of the
sanctioned government those individuals and entities that FAC has determined are
owned by, controlled by, or acting directly or indirectly on behalf of the
target government. Parties so identified are
known as Specially Designated Nationals or SDNs. In practice, an SDN is a target
government body, representative, intermediary, or front (whether overt or
covert) that usually is located in a third country and functions as an extension
of the sanctioned government. An SDN may also be a third-party company that
otherwise becomes owned or controlled by the target government or that operates
on its behalf. No criminal linkage is necessary. Ownership by, control by,
acting on behalf of, or profiting from trade with the target government or
country would suffice to qualify a person for designation.
Special 301 - The Special 301 statute requires
the United States Trade Representative (USTR) to review annually the condition
of intellectual property protection among U.S. trading partners. Submissions are
accepted from industry after which the USTR, weighing all relevant information,
makes a determination as to whether a country presents excessive barriers to
trade with the United States by virtue of its inadequate protection of
intellectual property. If the USTR makes a positive determination, a country may
be named to the list of: (a) Priority Foreign Countries (the most egregious),
(b) the Priority Watch List, or (c) the Watch List. Special 301 (a variation of
Section 301) was created by the Omnibus Trade and Competitiveness Act of
1988. See: Section 301, Super 301.
Spot exchange - The purchase or sale of foreign exchange for immediate delivery.
Spot Transaction - See: Forward Exchange Rate.
Standard industrial classification (SIC) - A standard numerical code system used to classify products and services.
Standard international trade classification (SITC) - A standard numerical code system developed by the United Nations to classify commodities used in international trade.
Standards - As defined by the Multilateral Trade
Negotiations "Agreement on Technical Barriers to Trade" (Standards
Code), a standard is a technical specification contained in a document that lays
down characteristics of a product such as levels of quality, performance,
safety, or dimensions. Standards may include, or deal exclusively with,
terminology, symbols, testing and test methods, packaging, marking, or labeling
requirements as they apply to a product. The GATT Standards Code,
negotiated and accepted during the Tokyo Round in the 1970s, is designed to
eliminate the use of standards, technical regulations, and conformity assessment
(certification) procedures as unnecessary barriers to trade. The Standards Code
is administered by the GATT Secretariat in Geneva, Switzerland. The Commerce
Department's National Institute of Standards and Technology is responsible for
several provisions of the Standards Code which relate to the establishment of a
U.S. inquiry point, a standards information center, and a technical office for
non-agricultural products.
Stand-By Arrangements - A stand-by arrangement, like an extended arrangement,
assures a member country of the International Monetary Fund (IMF) that it will
be able to make purchases up to a specified amount from the IMF during a given
period, as long as the member has observed the performance criteria and other
terms specified in the arrangement. Stand-by arrangements extend up to three
years. See: International Monetary Fund.
Standstill - Standstill refers to a
commitment of GATT contracting parties not to impose new trade-restrictive
measures during the Uruguay Round negotiations. See: Rollback.
State Export Program Database - The SEPD is a trade lead system maintained by
the National Association of State Development Agencies (NASDA). The SEPD
includes information on state operated trade lead systems.
State/Industry-Organized, Government Approved - See: Certified Trade
Missions.
State Trading Enterprises - STEs are entities established by governments to
import, export and/or produce certain products. Examples include:
government-operated import/export monopolies and marketing boards or private
companies that receive special or exclusive privileges from their governments to
engage in trading activities.
Statistical Office of the European Community - EUROSTAT provides European
Economic Community-wide statistics on economics, finance, foreign trade,
services, transportation, industry, population, social conditions, energy,
atricutlrual, forestry, and other topics. Eurostat offices are located in
Luxembourg.
Steamship conference - A group of steamship operators that operate under mutually agreed-upon freight rates.
Straight bill of lading - A nonnegotiable bill of lading in which the goods are consigned directly to a named consignee.
Strategic Level of Controls - Commodity groupings used for export control
purposes. See: Export Control Classification Number.
Structural Adjustment Facility - See: Enhanced Structural Adjustment
Facility.
Structural Impediments Initiative - The SII was started in July 1989 to
identify and solve structural problems that restrict bringing two-way trade
between the U.S. and Japan into better balance. Both the U.S. and Japanese
governments chose issues of concern in the other's economy as impediments to
trade and current account imbalances. The
areas which the U.S. Government chose as focus included: (a) Japanese savings
and investment patterns, (b) land use, (c) distribution, (d) keiretsu, (e)
exclusionary business practices, and (f) pricing. Areas which the Japanese
Government chose as focus included: (a) U.S. savings and investment patterns,
(b) corporate investment patterns and supply capacity, (c) corporate behavior,
(d) government regulation, (e) research and development, (f) export promotion,
and (g) workforce education and training. In a June 1990 report, the U.S.
and Japan agreed to 7 meetings in the following three years to review progress,
discuss problems, and produce annual joint reports.
fiscal year 1990. Since then
support has been provided under the Foreign Assistance Act of 1991. See:
Foreign Assistance Act of 1991.
Suspension of Investigation - A decision to suspend an antidumping
investigation if the exporters who account for substantially all of the imported
merchandise agree to stop exports to the U.S. or agree to revise their prices
promptly to eliminate any dumping margin. An investigation may be suspended at
any time before a final determination is made. No agreement to suspend an
investigation may be made unless effective monitoring of the agreement is
practicable and is determined to be in the public interest. See: Tariff
Act of 1930.
Suspension of Liquidation - If affirmative, the preliminary determination of
dumping or subsidization, or final determination after a negative preliminary
determination, provides for suspension of
liquidation of all entries of merchandise subject to the determination which are
entered, or withdrawn from warehouse, for consumption, on or after the date of
the publication of the notice in the Federal
Register. Customs is directed to require a cash deposit, or the posting of a
bond or other security, for each entry affected equal to the estimated amount of
the subsidy or the amount by which the fair value exceeds the U.S. price. When
an administrative review is completed, Customs is directed to collect the final
subsidy rate or amount by which the foreign market value exceeds the U.S. price,
and to require for each entry thereafter a cash deposit equal to the newly
determined subsidy rate or margin of dumping. See: Tariff Act of 1930.
Swap Network - The swap network is a series of bilateral arrangements between
the Federal Reserve and fourteen foreign central banks and the Bank for
International Settlements providing standby reciprocal facilities for obtaining
foreign currencies. The facilities provide for the swap (simultaneous spot
purchase and forward sale) of each other's currency by the Federal Reserve and
the respective foreign central bank. Swap drawings typically have a three-month
maturity, with an understanding that they may be more or less automatically
rolled over for another three months.
Swaps - Swaps take dozens of forms but often entail the exchange of one type
of asset or payment for another. Some of the more common forms are:
cross-border; currency; debt-for-charity; debt-for-commodity; debt-for-debt;
debt-for-development; debt-for-equity; debt-for-export; debt-for-local-currency;
debt-for-nature; discount; dual currency; interest rate; inward; premium;
reverse; and vanilla. Minor variation in names is common. Currency swaps
convert principal from the lender's currency into the debtor's currency and
receiving interest payments in the debtor's currency. The
swap, made to protect the principal from future changes in foreign exchange
rates, involves a forward exchange contract to recover the currency
involved. Debt swaps entail replacing the foreign liabilities of a debtor
country with ownership or rights of value. A debt-for-equity swap replaces
foreign liabilities with a stake in the debtor country's national enterprises; a
debt-for-export swap replaces foreign liabilities with an arrangement to receive
proceeds from the overseas sale of the debtor country's products or commodities;
a debt-for-debt swap replaces an existing foreign liability with a new
commitment from the debtor country. Interest rate swaps involve agreements
on the means for exchanging future cash flows. Single currency interest rate
swaps concern exchanging future cash flow in the same currency and offer a means
for modifying the impact of future changes in interest rates on a company's
profitability. Cross currency interest rate swaps concern exchanging future cash
flows between one currency and another, traded either on a fixed or floating
rate, and offer a means for limited the risk of converting financial interests
between currencies. Swaps also involve arrangements whereby different
sellers of similar commodities swap and deliver them to each other's customer if
such action saves transportation costs. See: Derivatives.
Swedish International Development Authority - SIDA, an agency responsible to
the Ministry for Foreign Affairs, administers the greater portion of Swedish
development cooperation. Swedish development assistance is directed toward
five goals: economic growth, economic and social equality, economic and
political independence, democratic development, and environmental quality. About
50 percent of Sweden's development assistance is directed toward a limited
number of designated "program countries" in Africa, Asia, and Latin
America and involves negotiated efforts to integrate external assistance and
long-term development strategies. The remaining assistance is allocated to UN
agencies, international development banks, and about 90 countries. The Authority
was established in 1965; headquarters are in Stockholm, Sweden. See: Swedish
International Enterprise Development Corporation.
Swedish International Enterprise Development Corporation - SwedeCorp, a
government funded under Sweden's aid program, supports enterprise development
through joint venture investments in developing countries and in Central and
Eastern Europe. The Corporation also encourages the transfer of industrial and
commercial knowledge from Sweden to third world countries and promotes exports
from developing countries to Sweden. The Corporation was formed in July 1991
based on a reorganization of international industry assistance programs;
headquarters are in Stockholm, Sweden. See: Swedish International
Development Authority.
Switch Arrangements - A form of countertrade in which unused purchase rights
under government-to-government trade (clearing agreements) on unwanted goods
received by a firm in a countertrade transaction are sold at a discount to
buyers for cash.
System for Tracking Export License Applications - STELA is a BXA
computer-generated voice unit that interfaces with the BXA database: ECASS
(Export Control Automated Support System). STELA enables a caller to check on an
export license by making a telephone call. 202-482-2752
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- T -
Table of Denial Orders - The TDO is a list of individuals and firms that 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. The list is published in the Export Administration Regulations.
Tare weight - The weight of a container and packing materials without the weight of the goods it contains. Compare Gross weight.
Targeted Export Assistance Program
See: Market Promotion Program.
o Tariff
A tax assessed by a government in accordance with its tariff schedule on
goods as they enter (or leave) a country. May be imposed to protect
domestic industries from imported goods and/or to generate revenue.
Types
include ad valorem, specific, variable, or some combination.
Tariff Act of 1930
Title VII of the Tariff Act of 1930, as amended, provides for the
imposition of antidumping duties on imported merchandise found to have
been
sold in the United States at "less than fair value," if these
sales have
caused or are likely to cause material injury to, or materially retard
the
establishment of, an industry in the United States.
The following terms and phrases are commonly used in connection with
procedings under The Tariff Act of 1930, as amended.
See: Administrative Review
Antidumping Duty
Antidumping Investigation Notice
Antidumping Duty Order
Antidumping Petition
Assessment
"Class or Kind" of Merchandise
Constructed Value
Cost of Production
Critical Circumstances
Deposit of Estimated Duties
Disclosure Meeting
Dismissal of Petition
Dumping Margin
Exporter's Sales Price
Fair Value
Final Determination
Foreign Market Value
Hearing
Period of Investigation
Preliminary Determination
Protective Order
Purchase Price
Revocation of Antidumping Duty Order & Termination of Suspended
Investigation
Section 337
Summary Investigation
Suspension of Investigation
Suspension of Liquidation.
o Tariff Anomaly
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
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
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.
Tariff Schedule
A comprehensive list of the goods which a country may import and the
import
duties applicable to each product.
Tariff Schedules of the United States
See: Tariff Schedules of the United States Annotated.
Tariff Schedules of the United States Annotated
Effective 1979 to January 1989, the U.S. import statistics were
initially
collected and compiled in terms of the commodity classifications in the
Tariff Schedules of the United States Annotated (TSUSA), an official
publication of the U.S. International Trade Commission embracing the
legal
text of the Tariff Schedules of the United States (TSUS) together with
statistical annotations. This publication was superseded by the
Harmonized
Tariff Schedule of the United States Annotated for Statistical Reporting
Purposes (HTSUSA) in January 1989.
Effective 1979 to January 1989, the U.S. export statistics were
initially
collected and compiled in terms of the commodity classifications in
Schedule B, Statistical Classification of Domestic and Foreign
Commodities
Exported from the United States. Schedule B is a U.S. Bureau of the
Census
publication and, during this period, was based on the framework of the
TSUS. In January 1989, this publication was replaced by Schedule B based
on the Harmonized System.
See: Schedule B.
Tax Information Exchange Agreement - A TIEA imposes on the agreeing
countries a mutual and reciprocal obligation to exchange information
relating to the enforcement of their respective tax laws. A TIEA provides a
means by which a signatory government can pursue certain tax evaders,
particularly in cases involving large tax claims or drug enforcement.
Countries that sign a TIEA agree to: (a) exhange tax information at the
government level in a form admissable to U.S. or host country courts; (b)
collect information without regard to the taxpayer's nationality; (c)
establish a means for compelling the production of tax information; and (d)
ensure that local laws do not prohibit the sharing of tax information. A
TIEA can support tourism in a signatory country because the Agreement
facilitates Internal Revenue Service approval of the destination as a
necessary business expense (deductible for Federal income tax purposes) for
U.S. citizens and companies which seek to justify attendance at business
conventions and seminars in a signatory country.
Technical Advisory Committees - The TACs are voluntary groups of industry
and government representatives who provide guidance and expertise to
Commerce on 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: (a)
materials (Materials Technical Advisory Committe, MATAC), (b) biotechnology
(Biotechnology Technical Advisory Committee, BIOTAC), (c) computer systems (CSTAC),
(d) electronics (ETAC) (formerly "semiconductors"), (e) sensors (STAC)
(formerly "electronic instrumentation"), (f) materials processing
equipment (MPETAC) (formerly "automated manufacturing equipment"),
(g) regulations and procedures (RPTAC), (h) telecommunications equipment (TETAC),
and (i) transportation and related equipment (TRANSTAC).
Technical Barrier to Trade - According to the Standards Code, a
specification which sets forth characteristics or standards a product must
meet (such as levels of quality, performance, safety, or dimensions) in
order to be imported.
Technology - BXA regulations define technical data as "information
of any kind that can be used, or adapted for use, in the design, production,
manufacture, utilization, or reconstruction of articles or materials.
Technology can be either "tangible" or "intangible."
Models, prototypes, blueprints or operating manuals (even if stored on
recording media) are examples of tangible technology. Intangible technology
consists of technical services, such as training, oral advice, information
guidance and consulting.
Technology Transfer - This term is used to characterize "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).
Temporary Importation under Bond - When an importer makes entry of
articles brought into the United States temporarily and claimed to be exempt
from duty under Chaper 98, Subchapter III, Harmonized Tariff Schedule of the
United States, a bond is posted with Customs which guarantees that these
items will be exported within a specified time frame (usually within one
year from the date of importation). Failure to export these items makes the
importer liable for the payment of liquidated damages for breach of the bond
conditions. (See 19 CFR 10.31.). The Temporary Importation under Bond (TIB)
is usually twice the amount of duties and other payments the importer would
otherwise be required to pay. Merchandise imported under TIB is usually for
sales,demonstration, testing, or repair.
Tenor (of a draft) - Designation of a payment as being due at sight, a given number of days after sight, or a given number of days after date.
Terms of Reference - TOR is
World Bank parlance referring to the preparation of a
description of the assignment for consultants to be selected
by borrowers following World Bank procedures.
Terms of Trade - Terms of trade refers to the economic
factors affecting a country's foreign trade in goods and
services, such as dependency on foreign sourcing and
relative competitiveness in production.
Textile Surveillance Body - The TSB is an international
body which meets in Geneva at the GATT to monitor the
Multi-Fiber Arrangement. The TSB receives reports of all
textile restrictions and can make recommendations to
participants. It can mediate disputes between parties to the
MFA but has no binding powers. Membership is balanced
between importing and exporting members.
Third Country Initiative - The TCI was created to help
countries establish an export control system on strategic
commodities. Such countries, while not members of CoCom,
would establish export control systems that provide levels
of protection as close as possible to those provided by
CoCom. Such systems include: (a) import certifications and
delivery verifications, (b) controls over reexports of CoCom-origin,
controlled goods and indigenous exports of CoCom-controlled
goods, (c) cooperation in pre-licensing and post-shipment
checks, and (d) cooperation on enforcement matters. The
United States supports the third country initiative through
section 5(k) of the Export Administration Act, which allows
it to provide selected non-CoCom countries with the same
licensing benefits provided to CoCom members.
Third Country Meat Directive - The TCMD is a regulation
by which the European Community controls meat imports based
on sanitary requirements. The TCMD requires individual inspection
and certification by EC veterinarians of U.S. meat plants
wishing to export to the EC.
Through bill of lading - A single bill of lading converting both the domestic and international carriage of an export shipment. An air waybill, for instance, is essentially a through bill of lading used for air shipments. Ocean shipments, on the other hand, usually require two separate documents - an inland bill of lading for domestic carriage and an ocean bill of lading for international carriage. Through bills of lading are
insufficient for ocean shipments. Compare Air waybill, Inland bill of lading, and Ocean bill of lading.
Tied Aid Credit - Tied aid
credit refers to 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 - A loan made by a government agency that
requires a foreign borrower to spend the proceeds in the
lender's country.
Time draft - A draft that matures either a certain number of days after acceptance or a certain number of days after the date of the draft. Compare Date draft and Sight draft
Title and Rank - Ambassadors-at-large have a higher rank than a regular
ambassador, depending on circumstances. If at post, the regular ambassador has
the higher rank; in other locations, an Ambassador-at-large has the higher rank;
- Heads of Mission are in three classes:
- Ambassadors or Nuncios (the papal state equivalent of an Ambassador) --
accredited to Heads of State;
- Envoys, Ministers, and Internuncios -- also accredited to Heads of State;
and
- Charg d'Affaires -- usually accredited to the Minister of Foreign Affairs;
- Envoys (or Special Envoys) represent a special interest (such as for
Inter-American Affairs), often the special interest is of limited duration (such
as Mideast peace talks);
- The Deputy Chief of Mission (DCM) is almost always a career officer;
- Principal Officers are the senior officers at constituent posts (that is,
at consular establishments);
- The Deputy Principal Officer is a position at large consulates;
- The Charg d'Affairs is the Chief of Mission (COM) at posts to which an
Ambassador is not appointed;
- The Charg d'Affaires ad Interim is the acting Ambassador (or COM) when the
Ambassador (or COM) is out of the country;
- An Attach may be either fairly high or fairly low; in terms of rank an
attach can be anything; a military attach is of at least medium rank;
- Functional designations of civilian Attachs (such as: customs, legal, or
science) and foreign service Attachs (such as: agricultural, commercial,
cultural, or science) are not part of the diplomatic title;
- A diplomatic agent is anybody that is accredited diplomatic status; -
Personna non Grata is an official term, used to designate the need for recalling
a diplomatic agent;
- An embassy is the office in country in the capital city where the
Ambassador sits;
- A consulate is a diplomatic mission which serves as a constituent post of
the embassy in country.
- Order of precedence:
- Chief of Mission (who may or may not be an Ambassador)
- Charg d'Affairs ad Interim (Designate)
- Minister (a position limited to six months under the 1980 Service Act, not
used by the U.S.)
- Minister-Counselors
- Counselors
- Army, Naval, or Air Attachs
- Civilian Attachs not of the Foreign Service (agencies may assign their
attaches with functional designation, designations include: customs, legal,
or science)
- First Secretaries
- Second Secretaries
- Foreign Service Officers with the title of Attach (these titles may or may
not include a functional designation; designations include: agricultural,
commercial, cultural, or press)
- Assistant Army, Naval, and Air Attaches
- Civilian Assistant Attaches not of the Foreign Service
- Third Secretaries and Assistant Attaches
Precedence of members of the Foreign Service and other U.S. officials depends
to a great extent on the situation and the relationship existing at any one
time. For example, Foreign Service Officers with the title of Attach are ranked
among First and Second Secretaries on the basis of salary; if salaries are the
same, they are ranked after the First or Second Secretaries, according to their
personal rank.
- Consular establishments: A consular establishment, usually located in
an area of the host country outside the seat of government, is a place where
representatives of the foreign government represent legal interests of their
nationals;
-- A consulates is headed by a Principal Officer; a Consulate General is
headed by a Principal Officer who is also a Consul General; the distinction
between Consulates and Consulates General is often (but not necessarily) one of
size of the establishment; status is another factor;
-- A consular section is always attached to an embassy (even though it may be
located in a separate facility). The section is headed by a Counsular Chief who
oversees that section and any other consular establishments in the country.
Consular Officers extend the protection of the U.S. government to U.S. citizens
and their property abroad. Their responsibilities include adjudication of visas
and passports and assistance to U.S. citizens (birth and death certificates,
notarizing documents, maintaining lists of attorneys, and acting as liaison with
police and other officials;
-- Order of precedence:
- Consul General
- Deputy Consul General
- Consul
- Vice Consul
- Consular Agent (a title reserved for use in locations where there is no
consular establishment)
- Different benefits and different levels of diplomatic immunity flow to
officials at diplomatic missions than to officials at consular establishments.
This enters into terms of art, resulting from two primary conventions:
- The Vienna Convention on Diplomatic Relations (23 UST 3227) and
- The Vienna Convention on Consular Relations (TIAS 6820).
Trade Act of 1974 - 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: (a) stimulate U.S.
economic growth and to maintain and enlarge foreign markets for the products of
U.S. agriculture, industry, mining and commerce; (b) strengthen economic
relations with other countries through open and non-discriminatory trading
practices; (c) protect American industry and workers
against unfair or injurious import competition; and (d) 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.
Trade Adjustment Assistance
TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms
is administered by Commerce; TAA for workers is administered by 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.
Trade Adjustment Assistance Centers - TAACs are
nonprofit, nongovernment organizations established to help firms qualify for and
receive assistance in adjusting to import competition. TAACs are funded by
the Commerce Department as a primary source of technical assistance to certified
firms.
Trade Agreements Act of 1979 - Legislation
authorizing the U.S. to implement trade agreements dealing with non-tariff
barriers negotiated during the Tokyo Round, 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 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.
Trade and Development Agency - TDA grants funds for feasibility studies for
large projects on the condition that U.S. firms are used to do the study. Should
the project sponsor (usually a foreign government) agree to this condition, the
opportunity to do the feasibility study generally is competed among all
interested U.S. companies. The project sponsor chooses the company it wants to
do the study and enters into a contractual relationship with that company, with
TDA underwriting expenses.
- Orientation Visits OVs): TDA occasionally sponsors visits by foreign
officials interested in procuring U.S. goods and services for specific
projects. Sometimes called "reverse trade missions," OVs provide
an opportunity to resolve issues concerning purchases.
- Definitional Missions (DMs): DMs appraise and clarify proposed projects
submitted to the TDA. After receiving a request to fund a major study for a
new project, TDA usually hires a technically qualified consultant to visit
the country and discuss the plan with the project sponsors. The DM is a
preliminary report of the feasibility of the project, its potential
financing source, possible foreign competition, and the size and scope of
the feasibility study which TDA might fund. The information developed by the
DM assists TDA in determining whether to provide feasibility study funding
to a project. In addition to making recommendations as to whether the
project should be funded or not, the DM consultant works with the project
sponsor to define the work program for the proposed feasibility study.
- Feasibility Studies (FSs): FSs assess the economic, financial, and
technical viability of potential projects submitted to the Trade and
Development Agency. The host countries must hire U.S. firms to undertake the
detailed studies of the technical and economic feasibility of the proposed
projects. After a foreign grantee has chosen the U.S. firm that will conduct
the feasibility study, the grantee and the U.S. company enter into a
contract for the feasibility study. The U.S. firms must prepare final
reports for TDA. The reports are technical and often hundreds of pages of
pages in length. U.S. firms interested in learning about the project during
the feasibility study stage, or the potential for supplying goods and
services to the project, are free to contact the U.S. firm conducting the
feasibility study.
Formerly known as the Trade and Development Program, TDA was renamed in
October 1992 under legislation which expanded the Agency's authority by
authorizing it to fund architectural and engineering design, support conceptual
and detail design studies, and to provide more resources to support procurement
opportunities for U.S. companies at the World Bank and other multilateral
lending institutions.
Trade Balance - See: Balance of Payments.
Trade Barriers - The United States Trade Representative classifies trade
barriers into eight general categories:
- Import policies (tariffs and other import charges, quantitative
restrictions, import licensing, and customs barriers);
- standards, testing, labeling, and certification;
- government procurement
- export subsidies;
- lack of intellectual property protection;
- service barriers;
- investment barriers;
- other barriers (e.g., barriers encompassing more than one category or
barriers affecting a single sector).
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 Bureau of the Census, the United Nations, as
well as individual Federal and private organizations, maintain trade
concordances for the purpose of relating trade and production data.
Trade Diversion - Trade diversion refers to the situation in which imports
from free trade agreement member countries increase, displacing (or
substituting) imports from nonmember countries.
Trade Event - A trade event is 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 - The Act provided
authority for U.S. participation in the Kennedy Round of the 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.
Trade Fair - A trade fair is 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 - The Commerce
Department 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. Commerce assistance
includes promoting the fair among foreign customers and helping exhibitors to
make commercial contacts.
Trade Information Center - The Trade Information
Center, TIC, is a one-stop source for information on Federal programs to assist
U.S. exporters. Telephone: 1-800-USA-TRADE (1-800-872-8723).
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. 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 Negotiations Committee - The TNC is the steering group which manages
the Uruguay Round negotiations. The TNC is comprised of all countries
participating in the current negotiations (that is, it is not limited simply to
members of the GATT). Functioning at the non-ministerial level, the TNC
serves as a vehicle for transparency.
Trade Policy Information System - The TPIS serves as a primary electronic
repository of detailed current and historical trade data, including: (a) U.S.
foreign trade data -- the detailed U.S.
merchandise trade statistics compiled by the Bureau of the Census, (b) United
Nations trade data -- trade statistics of over 170 reporting countries on a
comparable basis, and (c) International Monetary Fund and World Bank databases
-- multi-country statistics on international finance, direction of trade, and
developing country debt. TPIS provides a processing capabilities to: (a) obtain
and disseminate trade data required for formulating and implementing U.S. trade
policy and for export development, (b) provide analytical support to the Trade
Promotion Coordinating Committee, and (c) meet the information needs of the U.S.
Government trade community and the private sector.
Trade Policy Committee - The TPC is a cabinet-level, interagency trade
committee established by the Trade Expansion Act of 1962 (chaired by the USTR)
to provide broad guidance on trade issues. 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. The Trade Policy Review Group (TPRG) is a
subcabinet group which meets about once a week. The TPRG is an ad hoc creation
that was not established by law. TPRG membership is fairly fluid; so that
agencies which want to participate in a particular discussion can sit at the
table. The Trade Policy Staff Committee (TPSC) has met perhaps once a year
since 1988. TPSC was established by law to obtain advice from the private sector
on topics such as retaliation; it generally serves as a paper clearance
structure. Beneath the TPSC is a large number (60-to-100, exact counts are
not maintained) of TPSC subcommittees. Subcommittees are not independent;
they are established ad referendum, to deal with topics of interim interest and
are sometimes no more than phone and fax lists of interested parties on a given
issue.
Trade Policy Review Group - See: Trade Policy Committee.
Trade Policy Review Mechanism - The TPRM was created at the 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.
Trade Policy Staff Committee - See: Trade Policy Committee.
Trade Promotion Coordinating Committee - The TPCC provides a means for all
Federal agencies to coordinate their trade promotion activities, eliminate
duplication, and to provide a more focused U.S. Government approach to trade
promotion. Committee members include 19 Federal agencies: the Departments of
Commerce (as chair), Agriculture, Defense, Energy, Interior, Labor, State,
Transportation, and Treasury, the Agency for International Development, the
Council of Economic Advisers, the Environmental Protection Agency, Eximbank, the
Office of Management and Budget, the Overseas Private Investment Corporation,
the Small Business Administration, the Trade and Development Agency, the U.S.
Information Agency, and the U.S. Trade Representative. The TPCC formed working
groups to aid in coordinating trade promotion programs. Thirteen working groups
were operating at the end of 1992: (1) Trade Finance, (2) Food Production,
Machinery and Processing, (3) Energy, Environment and Infrastructure, (4)
Technology and Aerospace, (5) Services, (6) Enterprise for the Americas, (7)
Eastern Europe, (8) Asia and Pacific, (9) State and Local, (10) Minority
Business, (11) U.S. Asia Environmental Partnership, (12) Russia, Ukraine, and
the Newly Independent States, and (13) Small Business. The TPCC was originally
established by Executive Order of the President in May 1990. The Export
Enhancement Act of (October) 1992 codified the TPCC. See: Advocacy Center,
Export Enhancement Act of 1992.
Trade-Related Aspects of Intellectual Property Rights - TRIPs refers to U.S.
intellectual property rights objectives in the Uruguay Round. These objectives
include achieving a comprehensive GATT agreement that would include: (a)
substantive standards of protection for all areas of intellectual property
(patents, trademarks, copyrights, etc.); (b) effective enforcement measures
(both at the border and internally); and (c) effective dispute settlement
provisions.
Trade-Related Investment Measures - TRIMs require the use of specified
amounts of local inputs rather than imported goods, and requirements to export a
certain amount of production. The developed countries (with the exception of
Australia) favor prohibiting certain TRIMs; virtually all developing countries
oppose prohibiting any TRIMs.
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 with Foreign Countries - Puerto Rico is a Customs district within the
U.S. Customs territory, and its trade with foreign countries is included in the
U.S. export and import statistics. The U.S. export and import statistics include
merchandise trade between the U.S. Virgin Islands and foreign countries even
though the Virgin Islands of the United States are not officially a part of the
U.S. Customs territory. Data on trade of
other U.S. outlying possessions with foreign countries is not compiled by the
United States.
Tramp steamer - A ship not operating on regular routes or schedules.
Tranches - See: Credit Tranches.
Transshipment - Transshipment refers to the act of sending an exported
product through an intermediate country before routing it to the country
intended to be its final destination. See: Pass-through.
Transit Zones - Transit zones, a form of free trade zone, are ports of
entry in coastal countries that are established as storage and distribution
centers for the convenience of a neighboring country lacking adequate port
facilities or access to the sea. A transit zone is administered so that
goods in transit to and from the neighboring country are not subject to the
customs duties, import controls or many of the entry and exit formalities of
the host country. Transit zones are more limited facilities then a foreign
trade zone or a free port. See: Free Trade Zones.
Transmittal Letter - A list of the particulars of the shipment and a
record of the documents being transmitted together with instructions for
disposition of documents. Any special instructions are also included.
Transnational Corporation - A TNC is a company which operates in a home
country and has an affiliate overseas. The terms transnational corporation
and multinational corporation are now used synonymously. Through the 1970s
and 1980's the United Nations attempted to assess the impact of TNCs on
development and international relations in the world economy. These efforts
resulted in considerable complexity in attempting to define a TNC, including
associations with impact on developing countries, size, ownership, and other
characteristics. Agreement on a specialized definition was never
achieved.
Transparency - The extent to which
laws, regulations, agreements, and practices affecting international trade
are open, clear, measurable, and verifiable.
Transaction statement - A document that delineates the terms and conditions agreed upon between the importer and exporter.
Travel Advisory Program - The Department of State manages a travel advisory
program which publicizes: - travel warnings which are issued when State decides
to recommend that Americans avoid travel to a certain country; and consular
information sheets, issued for every country, which advise travelers of health
concerns, immigration and currency regulations, crime and security conditions,
areas of unrest or instability, and the location of U.S. embassies or
consulates. Both travel warnings and
consular information sheets are available through the Citizens' Emergency
Center's automated answering system: 202-647-5225 or via the US Department of
State website at www.state.gov .
Traveler - A traveler is a person who stays for a period of less than 1 year
in a country of which he or she is not a resident. Military and other government
personnel and their dependents stationed outside their country of residence are
not considered travelers, regardless of the length of their stay abroad; they
are considered to have remained within the economy of their home country. The
definition of travelers also excludes owners or employees of business
enterprises who temporarily work abroad in order to further the enterprise's
business, but intend to return to their country of residence within a reasonable
period of time.
Travel Mission - A travel mission is a marketing activity carried out in
foreign markets which usually involves trade information, presentations, and
media activities.
Travel Warning - See: Travel Advisory Program.
Treaties and Other International Acts Series - When a treaty or an executive
agreement is first published by the United States, it is assigned a TIAS number
and published in slip form in the Treaties and other International Acts Series.
TIAS, published by the Department of State, is a series of individual pamphlets.
Treaties in Force - Treaties In Force, published annually by the Department
of State, lists all treaties and executive agreements, both bilateral and
multilateral, which are considered to be in force for the United States as of
January 1 of the respective year.
Treaty - See: Interntional Agreements.
Treaty of European Union - See: Maastricht Treaty.
Treaty of Rome - The Treaty of Rome, enacted in March 1957, established a
European customs union and required the elimination of all quantitative
restrictions and other measures having an equivalent effect on trade among the
European signatory member states. It was intended to create a single market with
free movement of goods, persons, services, and capital and envisioned a single
internal European market. It became the founding charter for the European
Economic Community, which came into being on January 1, 1958. The Treaty had no
provisions for monetary arrangements. Accomplishments following the treaty
included completion of the customs union and establishment of the Common
Agricultural Policy (CAP). See: Maastricht Treaty.
Trigger Price Mechanism - The TPM is an antidumping mechanism designed to
protect U.S. industries from underpriced imports. First used in 1978 to protect
the steel industry, the TPM is the price of the lowest cost foreign producer.
Imports priced below the trigger price are assessed a duty equal to the
difference between their price and the trigger price.
Tropical Products - Traditionally, agricultural goods of export interest to
developing countries in the tropical zones of Africa, Latin America, and East
Asia (coffee, tea, spices, bananas, and tropical hardwoods).
Trust receipt - Release of merchandise by a bank to a buyer in which the bank retains title to the merchandise. The buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods (or the proceeds from their sale) distinct from the remainder of his or her assets and to hold them ready for repossession by the bank.
Turnkey - A method of construction whereby the contractor assumes total
responsibility from design through completion of the project.
Twenty-Foot Equivalent Unit - TEU is a a measure of a ship's cargo-carrying
capacity. One TEU measures twenty feet by eight feet by eight feet -- the
dimensions of a standard twenty-foot container. An FEU (forty-foot equivalent
unit) equals two TEUs.
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Date
Updated:
October 02, 2008
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