Glossary of Trade & Shipping Terms

Home

Trade Library

Trade Units and Terms

Library

Glossary

Glossary of Trade & Shipping Terms - E2

a - b - c - d - e - f - g - h - i - j - k - l - m - n - o - p - q - r - s - t - u - v - w - x - y - z

European Development Fund - The EDF is the principal means by which the European Economic Community provides aid, concessionary finance, and technical assistance to developing countries. The Fund was originally established in 1958 to grant financial aid to dependencies of the six nations which founded the EEC.

European Economic Area - The EEA, which became effective in January 1994, consists of Austria, Finland, Iceland, Norway, Sweden and the 12 member nations of the European Union. The EEA, encompassing an area inhabited by 370 million people, allows for the free movement of goods, persons, services and capital throughout all 17 countries. It also opens cooperation possibilities in many areas, including research and development, environment, promotion of tourism, social, and consumer policy. Following the negative result of the Swiss referendum in December 1992, the remaining six countries of the European Free Trade Association (Austria, Finland, Iceland, Liechtenstein, Norway, and Sweden) signed an Adjusting Protocol in March 1993 with the intent to proceed without Switzerland. The Adjusting Protocol contains provisions which allow Switzerland to participate in the EEA at a later stage if it so wishes. Liechtenstein will remain a Contracting Party to the European Economic Area Agreement, but it will not be part of the EEA until the EEA Council decides that the accord's good functioning will not be impaired. Liechtenstein's status in the EEA accord was reviewed following Switzerland's negative vote on the EEA in a December 1992 referendum. In particular, Liechtenstein's customs union with Switzerland requires renegotiation. Significant differences exist between the EEA and full membership in the European Economic Community (EEC). The EEA is a free trade area, not a customs union. Border controls between the EEC and EFTA, while relaxed, are expected to continue. EFTA will not adopt the EEC's Common Customs Tariff nor participate in the Common Commercial Policy or Common Agricultural Policy. EFTA nations will continue to set their own tariffs for third countries subject to GATT and OECD agreements. Further change is anticipated with Austria, Finland, Norway, and Sweden expected to join the European Economic Community by January 1995 or shortly afterwards. See: European Economic Community European Free Trade Association European Union.
European Free Trade Association - EFTA is a regional organization established in December 1959 by the Stockholm Convention as an alternative to the Common Market. EFTA was designed to provide a free trade area for industrial products among member countries. In contrast with the EC, EFTA does not have a common external tariff and nor a common agricultural trade policy. Original EFTA members included the United Kingdom, Austria, Denmark, Norway, Portugal, Sweden, and Switzerland. The UK, Denmark, and Portugal left the Association when they joined the EC. EFTA currently has seven members: Austria, Finland, Iceland, Liechtenstein, Norway, Sweden, and Switzerland -- Austria and Sweden have applied for EC membership. Association headquarters are in Geneva, Switzerland.
European Free Trade Association (EFTA) - Formed in 1960, the regional grouping which includes Austria, Iceland, Norway, Sweden, Switzerland. and Finland (an associate member). Member countries have eliminated tariffs on manufactured goods and agricultural products that originate in and are traded among member countries.
European Investment Bank - The Luxembourg-based EIB, established in 1957, is an independent public institution set up the Treaty of Rome to contribute to balanced and steady development in the European Community. The EIB provides loans and guarantees to companies and public institutions to finance regional development, structural development, and achieve cross-border objectives. The EIB has emphasized regional development and energy, with Italy, Greece, and Ireland receiving major support.
European Monetary and Cooperation Fund - The EMCF, originally created in 1973, was revised and linked with the European Monetary System in 1979. While intended to support the European Currency Unit and support a reserve system of central banks, the Fund has been used to keep account of short-term borrowings and support currencies through intervention in foreign exchange markets at the request of member states. The Fund uses the Bank for International Settlements as its agent.
European Monetary Institute - Under provisions of the Maastricht Treaty, the EMI will manage the national currency reserves of EC central banks and encourage international acceptance of the European Currency Unit (ECU). The EMI is also intended to strengthen coordination of monetary policies among European Community member states and to study and develop the infrastructure and procedures required for the conduct of single monetary policy. The EMI will be established on January 1, 1994. See: Maastricht Treaty.
European Monetary System - The EMS was created in 1979 to support monetary stability, move Europe toward closer economic integration, and avoid disruptions in trade resulting from fluctuations in currency exchange rates. EMS members deposit gold and dollar reserves with the European Monetary Cooperation Fund (EMCF) in exchange for the issuance of European currency units (ecu). The EMS has three main features: the ecu, an exchange rate and intervention mechanism, and credit mechanisms to support member countries. All EC members except Greece and the United Kingdom participate in the exchange rate mechanism of the EMS. See: European Currency Unit, Exchange Rate Mechanism.
European Monetary Union - See: Maastricht Treaty.
European Norm - The "EN" mark is a designation of a stnadards directive issued by CEN (Comite Europeen de Normalisation) or CENELEC (Comite Europeen de Normalisation Electrotechnique). Notations regarding En generally don't appear on the product. See: Conformite Europeene.
European Organization for Testing and Certification - The EOTC promotes mutual recognition of tests, test and certification procedures, and quality systems within the European private sector for product areas or characteristics not covered by EC legislative requirements. The Organization was created in April 1990 by the European Community Commission under a memorandum of agreement with CEN/CENELEC and the European Free Trade Association countries. EOTC headquarters are in Brussels, Belgium.
European Patent Convention - The European Patent Convention, EPC, is an agreement between European nations to centralize and standardize patent law and procedure. The EPC, which took effect in 1977, established a single "European patent" through application to the European Patent Office in Munich. Once granted, the patent matures into a bundle of individual patents -- one in each member country designated by the patent applicant. Patent applicants must indicate the countries to which they wish to have pante protection.
European Patent Office - The EPO (German: Europaeisches Patentamt; French: Office Europeen de Brevets) promotes easier, cheaper, and more reliable patent protection by establishing a single procedure for granting patents on the basis of a single European patent law. Standards are available in English from the World Intellectual Property Organization. The Office was established in October, 1973; its headquarters are in Munich, Germany. EPO membership is not open to the U.S., but close relations are maintained through the Commerce Department's Patent and Trademark Office.
European Research Coordination Agency - The European Research Coordination Agency, EUREKA, coordinates advanced technology projects being carried out by European industry. The Agency was created in 1985; headquarters are in Brussels, Belgium; membership includes the European Community countries, plus Norway, Sweden, Finland, Switzerland, Austria, Iceland, and Turkey.
European Space Agency - The ESA designs and coordinates construction of satellite and launching systems. Members include: Austria, Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom.
European System of Central Banks - The ESCB, as envisioned by the Treaty of Maastricht, would be created for the primary purpose of maintaining price stability within the European Community. The ESCB would be composed of the European Central Bank and of the central banks of the Members States. It would be independent of national governments and Community authorities. See: Treaty of Maastricht.
European Technical Approval - An ETA is a favorable technical assessment of the fitness for use of a product for an intended use, based on the fulfillment of the essential requirements for building works for which the product is used, as provided for under the EC Construction Products Directive (89/106/EEC). A European technical approval may be granted to products for which there is neither a harmonized European standard, nor a recognized national standard, nor a mandate for a harmonized standard; and to product which differ significantly from harmonized or recognized national standards. Such approval permits free circulation of the products within the member countries of the European Community and the European Free Trade Association.
European Telecommunications Standards Institute - ETSI (French: Institut Europeen des Normes des Telecommunication; German: Europaisches Institut fur Telekummonikationsstandards) was established in March 1988 in response to the inability of the European Conference of Postal and Telecommunications Administrations (CEPT) to keep up with the schedule of work on common European standards and specifications agreed to in the 1984 Memorandum of Understanding between CEPT and the EC. ETSI has a contractual relationship with the EC to pursue standards development for telecommunications equipment and services, and it cooperates with other European standards bodies such as CEN/CENELEC. ETSI membership includes the telecommunications administrations that constitute the CEPT as well as manufacturers, service providers, and users. See: Confernece Europeenne des Administrations des Postes et des Telecommunications.
European Trade Union Confederation - ETUC, founded in 1973, is the primary organization which speaks for European trade unions. ETUC consists of more than 30 organizations in 20 Western European countries and has over 40 million members. The Confederation's principal goal is to influence European policies affecting workers; it is active with the European Community, the Council of Europe, the European Free Trade Association, and the OECD Trade Union Advisory Committee. ETUC headquarters are in Brussels, Belgium.
European Union - The EU is an umbrella reference to the European Community (EC) and to two European integration efforts introduce by the Maastricht Treaty: Common Foreign and Security Policy (including defense) and Justice and Home Affairs (principally cooperation between police and other authorities on crime, terrorism, and immigration issues). The term "European Union" was introduced in November 1993 (when the Maastricht Treaty on European Union entered into force). The term "European Community" (EC) continues to exist as a legal entity within the broader framework of the EU. See: European Community Maastricht Treaty.
EUROSTAT - Statistical Office of the European Community
EUROTOM - European Atomic Energy Community
Evidence Account - An evidence account is an umbrella agreement contracted between a Western supplier and a government agency in a developing country (e.g., an industrial ministry, or a provincial or state authority), which is designed to facilitate reciprocal trade flows. The agreement stipulates trade conditions between the Western firm, other independent firms designated by it, and commercial organizations under the jurisdiction of the developing country signatory. It also requires that the cumulative payment turnovers for the trade goods, not payments of individual transactions, be balanced in an agreed-upon proportion within a specified period of time (typically 1 to 3 years). Trade flows are monitored and financial settlements occur through banks designated by the agreement's signatories.
Evidence of Origin - Information presented in the Exporter's Certificate of Origin (or Customs Form 353) that certifies that the goods described are eligible for a preferential rate of duty under a trade program.
Ex Dock (Import Usage Only) - The seller is obligated to place the specified goods at the specified price on the import dock clear of all customs and duty requirements. The buyer must do nothing further than pick up the goods within a prescribed time limit.
Ex Mill (Ex Warehouse, Ex Mine, Ex Factory) - The seller is obligated to place the specified quantity of goods at the specified price at his mill loaded on trucks, railroad cars or any other specified means of transport. The buyer must accept the goods in this manner and make all arrangements for transportation.
Ex Quay - "Ex Quay" means that the seller makes the goods available to the buyer on the quay (wharf) at the destination named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there. There are two "Ex Quay" contracts in use: (a) Ex Quay "duty paid" and (b) Ex Quay "duties on buyer's account" in which the liability to clear goods for import is to be met by the buyer instead of by the seller.
Ex Ship - "Ex Ship" means that the seller will make the goods available to the buyer on board the ship at the destination named in the sales contract. The seller bears all costs and risks involved in bringing the goods to the destination.
Ex Works - Ex Works (EXW) at a named point of origin (examples are: ex factory, ex mill, ex warehouse). Under this term, the price quoted applies only at the point of origin and the seller agrees to place the goods at the disposal of the buyer at a specified place on the date or within the period fixed. All other charges are for the account of the buyer.
Ex-"From" - When used in pricing terms such as "Ex Factory" or "Ex Dock," it signifies that the price quoted applies only at the point of origin (in the two examples, at the seller's factory or a dock at the import point). In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.
Ex. - Excluding. Examined. Exchange. Executed. Out of. Without
EXCEL - Export Credit Enhanced Leverage
Excess-Currency Country - A country where the local currency supply available to the U.S. Government for conducting official business exceeds U.S. requirements for the 2 years following the year for which the designation is made.
Exchange Controls - The internal rationing of foreign currencies, bank drafts and other financial paper to stabilize balance of payments problems. When this occurs, an importer must obtain permission from the government to expend foreign exchange. These measures can distort trade and are often viewed as a non-tariff barrier.
Exchange Rate - The price of one currency expressed in terms of another, i.e., the number of units of one currency that may be exchanged for one unit of another currency. Influences on exchange rates include differences between interest rates and other asset yields between countries; investor expectations about future changes in a currency's value; investors' views on the overall quantity of dollar-denominated assets in circulation; arbitrage; and central bank exchange rate support. See: Exchange Rate Classifications.
Exchange Rate - The rate of currency conversion between countries. For example, one American dollar can be hypothetically exchanged for six French francs.
Exchange Rate Classifications - Following are the different types of possible exchange rate regimes and how they work: - Single Currency Peg: the country pegs to a major currency -- usually the U.S. dollar or the French franc -- with infrequent adjustment of the parity; - Composite Currency Peg: the country pegs to a basket of currencies of major trading partners to make the pegged currency more stable than if a single currency peg were used. The weights assigned to the currencies in the basket may reflect the geographical distribution of trade, services, or capital flows. They may also be standardized, as in the Special Drawing Right (SDR) and the European Currency Unit (ECU); - Limited Flexibility vis-a-vis a Single Currency: the value of the currency is maintained within certain margins of the peg; - Limited Flexibility Through Cooperative Agreements: this applies to countries in the exchange rate mechanism of the European Monetary System and is a cross between a peg of individual EMS currencies to each other and a float of all these currencies jointly vis-a-vis non-EMS currencies; - Greater Flexibility Through Adjustment to an Indicator: the currency is adjusted more or less automatically to changes in selected indicators. A common indicator is the real effective exchange rate, which reflects inflation-adjusted changes in the currency vis-a-vis major trading partners; - Greater Flexibility Through Managed Float: the central bank sets the rate but varies it frequently. Indicators for adjusting the rate include, for example, the balance of payments position, reserves, and parallel market developments. Adjustments are not automatic; - Full Flexibility Through an Independent Float: rates are determined by market forces. Some industrial countries have floats -- except for the EMS countries -- but the number of developing countries in this category has been increasing. See: Crawling Peg System Exchange Rate.
Exchange Rate Mechanism - The ERM is a program through which member countries of the European Economic Community agree to maintain parity in exchange rates among their currencies. Limits are set on the amounts by which exchange rates may vary between any two currencies. If an exchange rate reaches the limit, the central banks of the two countries intervene in the market to ensure that the limit is not exceeded. The ERM was established in 1979 with agreement by Belgium, France, West Germany, Luxembourg, the Netherlands, and Denmark to limit fluctuation in the bilateral exchange rates between their currencies to ñ2.25%. Italy, which was also a member, did not limit fluctuation to ñ25% until 1990. Spain joined in 1989, the UK in 1990, and Portugal in 1992, each agreeing to a wider band of 6% fluctuation in the bilateral exchange rates in the value of their currencies against other ERM members. Disruptions in September 1992 led to the withdrawal of Italy and the UK and to some parity realignments. The ERM has since resumed, with provisions allowing currency fluctuations of 15 percent.
Exclusive Economic Zone - The EEZ refers to the rights of coastal states to control the living and nonliving resources of the sea for 200 miles off their coasts while allowing freedom of navigation to other states beyond 12 miles, as agreed at the sixth session of the Third U. N. Conference on the Law of the Sea (UNCLOS). The EEZ also gives the coastal states the responsibility for managing the conservation of all natural resources within the 200-mile limit.
Exd. - Examined
EXIMBANK - Export-Import Bank of the United States
Exon-Florio - The "Exon-Florio" provision (section 721 of the Defense Production Act) provides the President with authority to investigate proposed or pending mergers, acquisitions, and takeovers by or with foreign persons to determine their effects on national security. The provision also grants the President authority to suspend or block those transactions that lead to control of a domestic firm by a foreign person if the President determines that the foreign purchaser might take actions that would threaten the national security. See: Committee on Foreign Investment in the United States Foreign Direct Investment in the United States.
explosimeter - Instrument used to detect the presence of flammable gases in tanker tanks.
Export Administration Act - The EAA of 1979, as amended, authorizes the President to control exports of U.S. goods and technology to all foreign destinations, as necessary for the purpose of national security, foreign policy, and short supply. As the basic export administration statute, the EAA is the first big revision of export control law since enactment of the Export Control Act of 1949. The EAA is not a permanent legislation; it must be reauthorized -- usually every three years. There have been reauthorizations of the EAA in 1982, 1985 (the Export Administration Amendments Act), and 1988 (Omnibus Amendments of 1988) which have changed provisions of the basic Act. The Act was extended in 1993 until June 30, 1994.
Export Administration Regulations - The Export Administration Regulations provide specific instructions on the use and types of licenses required and the types of commodities and technical data under control.
Export Administration Review Board - The EARB is a cabinet-level export licensing dispute resolution group. The EARB was originally established in June 1970 under Executive Order 11533. Under Executive Order 12755 of March 1991, EARB membership includes Commerce (as chair), State, Defense, and Energy, and Arms Control and Disarmament Agency and, as non-voting members, the Joint Chiefs of Staff and the Central Intelligence Agency. The EARB is final review body to resolve differences among agency views on the granting of an export license. [Preceding EARB review are: (a) an interagency committee and (b) the Advisory Committee on Export Policy.] National Security Directive 53 requires escalation of disputes regarding an export license to the Advisory Committee on Export Policy (ACEP) not later than 100 days from the filing date of the applicant's application. Any cases not resolved at the ACEP level must be escalated to the EARB within a specified number of days of the date of the ACEP meeting. Cases not resolved by the EARB must be escalated to the President for resolution.
Export Assistance Center - An Export Assistance Center (EAC) system was established by the state of Texas to link agencies, associations, and local governments in efforts to increase exports by assisting current and prospective exporters. The US&FCS has been considering using the Texas model to develop similar export assistance networks.
Export Broker - An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transaction provides mailing lists of prospective overseas customers from ITA's file of foreign firms (the Foreign Traders Index). The ECLS identifies manufacturers, distributors, retailers, service firms, and government agencies. A summary of the information on the company includes contact informatiostem currently provides: - electronic submission of application forms directly with the use of value-added network vendors; - optical character recognition of applications submitted on paper; - paperless workstations for all licensing officers to review the application, route it to other officers, branches, or exte workloads, average processing times, counts and times by license type, destination country, commodity code, and other data.
Export Control Classification Number - Every product has an export control classification number (formerly: Export Control Commodity Number) within the Commerce Control List. Each ECCN ication Number.
Export Credit Enhanced Leverage - The export credit enhanced leverage, EXCEL, program was developed in 1990 by the World Bank in conjunction with a working group of the International Union of Credit and Investment Insurers (the Berne Union). The objective of EXCEL is to provide export credits at consensus rates for private sector borrowers in highly indebted countries, which would previously have been too great a risk for most agencies to cover.
Export Credit Guarantee Department - The ECGD of the Department of Industry and Trade is the primary source of official British export credit. The ECGD helps exporters by providing: (a) insurance against the risk of not being paid for exports and (b) guarantees to banks for exporters of capital goods, under which finance can be obtained for export business, often at a favorable rate of interest. Subject to Parliamentary approval, ECDG's short-term underwriting division, the Insurance Service Group, is to be privatized. The medium and long-term underwriting group is introducing a new system for assessing premiums which will more realistically reflect the risk involved. The Department was originally established in 1919; headquarters are in London, England.
Export Credit Guarantee Programs - See: General Sales Manager.
Export Declaration - See: Shipper's Export Declaration.
Export Declaration - A formal statement made to the Director of Customs at a port of exit declaring full particulars about goods being exported.
Export Development Corporation - EDC is Canada's official export credit agency, responsible for providing export credit insurance, loans, guarantees, and other financial services to promote Canadian export trade.
Export Development Office - Export Development Offices (EDOs) in seven cities (Tokyo, Sydney, Seoul, Milan, London, Mexico City, and Sao Paulo) provide services to U.S. exporters, including market research to identify specific marketing opportunities and products with the greatest sales potential; and to organize export promotion events. EDOs are staffed by U.S. and Foreign Commercial Service officers. When not in use for trade exhibitions, EDOs with exhibit and conference facilities are made available to individual firms or associations.
Export Disincentives - Export disincentives are policies which may serve to deter U.S. exports, such as sanctions, export controls, and domestic and regulatory policies with a coincidental impact of handicapping U.S. competitiveness.
Export Enhancement Act of 1992 - The Export Enhancement Act of 1992 required the Trade Promotion Coordinating Committee (TPCC) to issue by September 30, 1993, and annually thereafter, a report containing "a governmentwide strategic plan for Federal trade promotion efforts" and describing its implementation. The legislation requires the TPCC to establish in the strategic plan priorities for federal trade promotion and explain the rationale for these priorities. The act also requires the TPCC to include in the plan a strategy for bringing federal trade promotion activities into line with the new priorities and for improving their coordination. The TPCC is also required to propose in the plan a means for eliminating overlap among federal trade promotion activities and increasing cooperation between state and federal trade promotion efforts. The act requires that the TPCC include in the strategic plan a proposal to the President for an annual unified budget for federal trade promotion activities. This budget is to: (a) reflect the new priorities and improved interagency coordination and (b) eliminate funding for areas of overlap and duplication among federal agencies. See: Trade Promotion Coordinating Committee.
Export Enhancement Program - The EEP, one of four export subsidy programs operated by the Department of Agriculture, is intended to enhance U.S. trade policy strategies and objectives and to expand U.S. agricultural exports. Under the EEP, the Agriculture Department's Commodity Credit Corporation provides bonuses to U.S. exporters to enable them to be price competitive and thereby sell U.S. agricultural products in targeted overseas markets in which competitor countries are making subsidized sales. EEP-eligible commodities have included: wheat, wheat flour, rice, frozen poultry, barley, barley malt, table eggs, feed grains and vegetable oil.
Export Information System - The EIS is a classified automated system for export licensing operations maintained by the Department of Energy. See: Export Control Automated Support System.
Export Legal Assistance Network - The Export Legal Assistance Network, ELAN, sponsored by SBA, is a nationwide group of attorneys with experience in international trade who provide free initial consultations to small businesses on export-related matters. Telephone: 202-778-3080.
Export License - A government document (also known as an "Individual Validated License") authorizing exports of specific goods in specific quantities to a particular destination. This document may be required in some countries for most or all exports and in other countries only under special circumstances.
Export License - A permit required to engage in the export of certain commodities and quantities to certain destinations. List of such goods are found in the comprehensive Export Schedule issued by the Bureau of Foreign Commerce.
Export License Voice Information System - ELVIS is a BXA 24-hour on-line service which allows exporters to obtain recorded information on such topics as commodity classifications, emergency handling procedures, and seminars as well as to order information. 202-482-4811
Export Limitation - A provision that limits the recipient country's volume of exports of commodities that are the same as, or like, the commodities being furnished by the United States under a P.L. 480 ("Food for Peace") sales agreement. The export of the actual commodities is also prohibited, with the latter prohibition being termed an export restriction.
Export Limitation Period - The period during which the receipient country must restrict exports of commodities which are considered to be the same as, or like, those supplied under P.L. 480 ("Food for Peace").
Export Management Company - An EMC is a private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission. An EMC maintains close contact with its clients and is supply-driven. An EMC may take title to the goods it sells, making a profit on the markup, or it may charge a commission, depending on the type of products being handled, the overseas market, and the manufacturer-client's needs.
Export Management Company - An organization which, for a commission, acts as a purchase agent for either a buyer or seller.
Export Merchant - A company that buys products directly from manufacturers, then packages and marks the merchandise for resale under its own name. A producer or merchant who sells directly to a foreign purchaser without going through an intermediate such as an export broker.
Export Processing Zones - EPZs are a form of free trade zone which provide incentives for industrial or commercial export activity. Export processing zones are located in developing countries and are usually in defined areas, industrial parks, or facilities which provide free trade zone benefits and usually offer additional incentives, such as exemption from normal tax and business regulations. The zones, which began appearing around 1975, are sometimes referred to as Special Economic Zones or Development Economic Zones. See: Free Trade Zones.
Export Promotion - Export promotion refers to the collective programs a nation has to help companies sell products abroad. These programs may include business counseling, training, and representational assistance, as well as providing market research information, trade fair opportuntities, and export financing assistance.
Export Quotas - Specific restrictions or target objectives on the value or volume of exports of specified goods imposed by the government of the exporting country. These restraints may be intended to protect domestic producers and consumers from temporary shortages of certain materials, or as a means to moderate world prices of specified commodities. Commodity agreements sometimes contain explicit provisions to indicate when export quotas should go into effect among producers. Export quotas are also used in connection with orderly marketing agreements and voluntary restraint agreements.
Export Quotas - Specific restraints imposed by an exporting country on the value or quantity of a good for export purposes.
Export Rate - A freight rate specially established for application on export traffic and generally lower than the domestic rate.
Export Restraint Agreements - See: Voluntary Restraint Agreements.
Export Restraints - A restriction by an exporting country of the quantity of exports to a specified importing country. Usually this is a result of a request (formal or informal) of the importing country.
Export Revolving Line of Credit - The Export Revolving Line of Credit, ERLC, is a form of financial assistance provided by the Small Business Administration (SBA). The ERLC guarantees loans to U.S. firms to help bridge the working capital gap between the time inventory and production costs are disbursed until payment is received from a foreign buyer. SBA guarantees 85 percent of the ERLC subject to a $750,000 guarantee limit. The ERLC is granted on the likelihood of a company satisfactorily completing its export transaction. The guarantee covers default by the exporter, but does not cover default by a foreign buyer; failure on the buyer's side is expected to be covered by letters of credit or export credit insurance. Under SBA's ERLC program, any number of withdrawals and repayments can be made as long as the dollar limit on the line of credit is not exceeded and disbursements are made within the stated maturity period (not more than 18 months). Proceeds can be used only to finance labor and materials needed for manufacturing, to purchase inventory to meet an export order, and to penetrate or develop foreign markets. Examples of eligible expenses for developing foreign markets include professional export marketing advice or services, foreign business travel, and trade show participation. Under the ERLC program, funds may not be used to purchase fixed assets.
Export Statistics - Export statistics measure the total physical quantity or value of merchandise (except for shipments to U.S. military forces overseas) moving out of the United States to foreign countries, whether such merchandise is exported from within the U.S. Customs territory or from a U.S. Customs bonded warehouse or a U.S. Foreign Trade Zone.
Export Subsidies - Generally, direct government payments or other economic inducements given to domestic producers of goods that are sold in foreign markets. The GATT recognizes the export subsidies may distort trade, unduly disturb normal commercial competition, and hinder the achievement of GATT fair trade objectives; but it does not clearly define what practices constitute export subsidies. See: Subsidies.
Export Subsidies - Any form of government payment or benefit to an exporter or manufacturing concern contingent upon the export of goods. Under the GATT (Article XVI) subsidies, especially export subsidies, are seen as a tool that distorts the normal behavior of the market. The Tokyo Round produced an agreement on subsidies and countervailing duties that prohibits export subsidies by developed countries on manufactured and semi-manufactured goods.
Export Trade Certificate of Review - A certification of partial immunity from U.S. antitrust laws that can be granted based on the Export Trading Company Act legislation by the Department of Commerce with Department of Justice concurrence. Any prospective or present U.S.-based exporter with antitrust concerns may apply for certification.
Export Trading Company - An ETC is a company doing business in the United States principally to export goods or services produced in the United States or to facilitate such exports by unaffiliated persons. The ETC can be owned by foreigners and can import, barter, and arrange sales between third countries, as well as export. An ETC is demand-driven and transaction-oriented. Generally, an ETC takes title to the products involved, but may work on a commission basis.
Export Trading Company Act - The Export Trading Company Act of 1982: initiates the Export Trade Certificate of Review program that provides antitrust preclearance for export activities; permits bankers' banks and bank holding companies to invest in ETCs; establishes a Contact Facilitation Service within the Commerce Department designed to facilitate contact between firms that produce exportable goods and services and firms that provide export trade services.
Export-Import Bank of Japan - JEXIM is Japan's official provider of export credits. About 10 percent of JEXIM's business is providing export credits. The bank's main role is to disburse about half the funds available under the trade surplus recycling program (the Nakasone facility). See: Japan International Cooperation Agency Overseas Economic Cooperation Fund.
Export-Import Bank of the United States - Eximbank was chartered in 1934 as an independent agency to finance the export of U.S. goods and services. Eximbank offers four major export finance support programs: loans, guarantees, working capital guarantees, and insurance. Eximbank undertakes some of the risk associated with financing the production and sale of American-made goods; provides financing to overseas customers for American goods when lenders are not prepared to finance the transactions; and enhances a U.S. exporter's ability to match foreign government subsidies by helping lenders meet lower rates, or by giving financing incentives directly to foreign buyers. Eximbank's information hotline number is 1-800-424-5201. See: Commercial Risk Political Risk Private Export Funding Corporation.
Exporter Data Base - The EDB, operating on a pilot basis in 1992, provides data on the number of exporters, their distribution in cities and states, and their economic characteristics. The EDB, developed by the Commerce Department's International Trade Administration and the Census Bureau links commodity data from millions of U.S. export declarations to the Bureau's various databases on the business characteristics of U.S. firms.
Exporter's Certificate of Origin - The U.S. Customs Service defines an Exporter's Certificate of Origin (also known as Customs Form 353) as a document completed by the exporter, certifying that the goods described therein are eligible for a preferential rate of duty under some trade program such as the U.S.-Canada Free-Trade Agreement. (See 19 CFR 10.37(d)(1).)
Exporter's Sales Price - ESP is a statutory term used to refer to the United States sales prices of merchandise which is sold or likely to be sold in the United States, before or after the time of importation, by or for the account of the exporter. Certain statutory adjustments are made to permit a meaningful comparison with the foreign market value of such or similar merchandise, e.g., import duties, United States selling and administrative expenses, and freight are deducted from the United States price. See: Tariff Act of 1930.
Extended Fund Facility - The EEF is an arrangement by which the International Monetary Fund (IMF) may provide assistance to its members to enable them to meet their balance of payments needs for longer periods and in larger amounts than are available under the IMF's credit tranche policies. See: International Monetary Fund.
EXW - Ex Works

<< PREVIOUS PAGE (E1)