The difference between a country's total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.

Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible.

The person in whose favor a letter of credit is issued or a draft is drawn.

See Draft.

A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. Also see Air waybill, Inland bill of lading, Ocean bill of lading, and Through bill of lading.

A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

An arrangement with a steamship company for the acceptance and carriage of freight.

See Purchasing agent.

A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds.

Payment for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash.

The person in whose favor a letter of credit is issued or a draft is drawn.

Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.

A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.

A statement (often notarized) in which a producer of goods certifies that manufacture has been completed and that the goods are now at the disposal of the buyer.

A document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods.

Cost and freight. A pricing term indicating that the cost of the goods and freight charges are included in the quoted price; the buyer arranges for and pays insurance.

A written contract, usually on a special form, between the owner of a vessel and a "charterer" who rents use of the vessel or a part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation.

A receipt for goods issued by a carrier that indicates that the goods were received in "apparent good order and condition," without damages or other irregularities. Compare Foul bill of lading.

A draft to which no documents have been attached.

All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

The commerce expert on the diplomatic staff of his or her country's embassy or large consulate.

An itemized list of goods shipped, usually included among an exporter's collection papers.

Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.

A formal statement, made to the consul of a foreign country, describing goods to be shipped.

A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity, and nature of the shipment.

A currency that can be bought and sold for other currencies at will.

A bank that, in its own country, handles the business of a foreign bank.

The sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a foreign country.

A duty imposed to counter unfairly subsidized products.

Pricing terms indicating that carriage, or carriage and insurance, are paid to the named place of destination. They apply in place of CFR and CIF, respectively, for shipment by modes other than water.

Insurance designed to cover risks of nonpayment for delivered goods. Compare Marine insurance.

An individual or firm licensed to enter and clear goods through customs.

The authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.