PCI Worldwide -

Glossary of International Trade Terms

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

ICPO

Irrevocable Corporate Purchase Order

Identical Merchandise

Used by U.S. Customs in establishing the customs value of merchandise exported to the United States, identical merchandise is merchandise that is:
(1) Identical in all respects to the merchandise being appraised,
(2) Produced in the same country as the merchandise being appraised, and
(3) Produced by the same person as the merchandise being appraised.

Immediate Delivery

An alternate U.S. Customs entry procedure which provides for immediate release of a shipment in certain cases.

Immediate Transportation Entry

A form of U.S. Customs entry which allows imported merchandise to be forwarded from the port of original entry to another final destination for customs clearance.

Immigration

The entry of foreign nationals into a country for the purpose of establishing permanent residence.

Implied Conditions

Certain implied conditions are not written into marine insurance policies, but they are so basic to understanding between underwriter and assured that the law gives them much the same effect as if written.

Import

To bring in (goods or services) from a foreign country for trade or sale.

Import Credit

A commercial letter of credit issued for the purpose of financing the importation of goods.

Import Duty

Any tax on items imported.

Import License

A document required and issued by some national governments authorizing the importation of goods.

Import Quota

A protective ruling establishing limits on the quantity of a particular product that can be imported.

Import Quota Auctioning

The process of auctioning the right to import specified quantities of quota-restricted goods.

Import Relief

Any of several measures imposed by a government to temporally restrict imports of a product or commodity to protect domestic producers from competition.

Import Restrictions

Any one of a series of tariff and non-tariff barriers imposed by an importing nation to control the volume of goods coming into the country from other countries.

Import Sensitive Producers

Domestic producers whose economic viability is threatened by competition (quality, price or service) from imported products.

Import Substitution

A strategy which emphasizes the replacement of imports with domestically produced goods to encourage the development of domestic industry.

Importer

The individual, firm or legal entity that brings articles of trade from a foreign source into a domestic market in the course of trade.

Importer Number

An identification number assigned by the U.S. Customs Service to each importer to track entries and other transactions.

Imports

Commodities of foreign origin as well as goods of domestic origin returned to the producing country with no change in condition, or after having been processed and/or assembled in other countries.

Imports For Consumption

The total of merchandise that has physically cleared through U.S. Customs either entering domestic consumption channels immediately or entering after withdrawal for consumption from bonded warehouses under U.S. Customs custody or from U.S. Foreign Trade Zones.

Importers Manual USA

A reference book detailing specific requirements for importing 135 different product groups into the United States and other important information.

Impost

A tax, usually an import duty.

Impound

To seize or hold; or to place in protective custody by order of a court.

In Bond

A procedure under which goods are transported or warehoused under customs supervision until they are either formally entered into the customs territory of the United States and duties paid, or until they are exported from the United States.

In Bond Shipment

An import or export shipment which has not been cleared by U.S. Customs officials.

In-Bond System

A part of U.S. Customs' Automated Commercial System, controls merchandise from the point of unloading at the port of entry or exportation.

Incentive

A motivational force that stimulates people to greater activity or increased efficiency.

Income

Money or its equivalent, earned or accrued, arising from the sale of goods or services.

Incoterms

A codification of international rules for the uniform interpretation of common contract clauses in export/import transactions.The purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade.
These terms are defined as the following:

EXW	-	EX WORKS
FCA	-	FREE CARRIER
FAS	-	FREE ALONGSIDE SHIP
FOB	-	FREE ON BOARD
CFR	-	COST AND FREIGHT
CIF	-	COST, INSURANCE AND FREIGHT
CPT	-	CARRIAGE PAID TO
CIP	-	CARRIAGE AND INSURANCE PAID TO
DAF	-	DELIVERED AT FRONTIER
DES	-	DELIVERED EX SHIP
DEQ	-	DELIVERED EX QUAY
DDU	-	DELIVERED DUTY UNPAID
DDP	-	DELIVERED DUTY PAID

Indemnify

To compensate for actual loss sustained.

Indemnity

An agreement to reimburse another individual or legal entity who incurs a loss that is covered by the agreement.

Independent Action

The right of a conference member to depart from the common freight rates, terms or conditions of the conference without the need for prior approval of the conference.

Indexed Currency Borrowings

Borrowings in a foreign currency where the rate of interest is linked to an agreed scale.

Indexed Currency Option Note

Note denominated and paying interest in one currency but whose redemption value is linked to an exchange rate for another currency.

Individual Validated License

Written approval by the U.S. Department of Commerce to export a specified quantity or good to a single recipient.

Industrial List

The Coordinating Committee for Multilateral Export Controls industrial list contains dual-use items whose export are controlled for strategic reasons.

Industrial Policy

Encompasses traditional government policies intended to provide a favorable economic climate for the development of industry in general or specific industrial sectors.

Infant Industry Argument

"The view that "temporary protection" for a new industry or firm in a particular country through tariff and non-tariff barriers to imports can help it to become established and eventually competitive in world markets."

Inflation

Loss of purchasing power of money caused by growth of the amount of money in circulation.

Informal Entry

A simplified import entry procedure accepted at the option of Customs for any baggage or commercial shipment that does not exceed $1000.

Informed Compliance

A term that describes the improved ability of a entity (such as a company) to comply with Federal rules and regulations through easy access to up-to-date information.

Infrastructure

The basic structure of a nation's economy.

Inherent Vice

Internal cause of damage to goods during shipping; damage caused by the qualities of the goods themselves.

Injury

A finding by the U.S. International Trade Commission that an import is causing harm or going to cause harm to a U.S. industry.

Inland Bill of Lading

A bill of lading used in transporting goods overland to the exporter's international carrier.

Inland Carrier

A transportation line which hauls import/export traffic between ports and inland points.

Inspection Certificate

A document confirming that goods have been inspected for conformity.

Instrument

Any written document that gives formal expression to a legal agreement or act.

Integrated Cargo Service

A blend of all segments of the cargo system providing the combined services of carrier, forwarder, handlers, and agents.

Integrated Carriers

Carriers that have multiple varieties of fleets (i.e. air and ground, truck and rail, etc.).

Intellectual Property

An original piece of work that can be copyrighted or trademarked to confirm ownership.

Interbank Dealings

Dealings between the banks.

Interchange Agreement

An agreement that specifically lays out the terms of leasing equipment from a carrier.

Interchange Point

A location where one carrier delivers freight to another carrier.

Interline Shipping

The movement of a single shipment in two or more carriers.

Intermodal Compatibility

The capability of a shipment of goods to be transported from one form of transportation to another.

Intermodal Transport

Coordinated transport of freight using multiple methods of transportation.

International Trade

The business of buying and selling commodities outside of national boarders.

International Trade Data System

A proposed electronic system that would integrate the different government trade and transportation data processes into a system that provides a standard means of gathering, processing, storing and disseminating import and export trade data. See IT06.

Interstate Carrier

A common carrier whose business extends beyond the boundaries of one state.

Interstate Commerce

Trade between or among several states of the United States; includes facsimile across state lines or transport by rail and roads.

Invisible Barriers to Trade

Government regulations that do not directly restrict trade but hinder imports with excessive and obscure requirements.

Invisible Trade Balance

The balance of trade created by the import and export of services.

Invoice

A document identifying the buyer and seller; includes all relevant information such as number, date, shipping date, mode of transport, etc.

Inward Foreign Manifest (IFM)

A U.S. Customs mandated document requiring the complete listing by bill of lading numbers of an arriving ship's freight being imported into the United States.

Irrevocable Letter of Credit

A letter of credit which cannot be amended or canceled without prior mutual consent of all parties to the credit.

Issuance

The establishment of a letter of credit by the issuing bank based on the buyer's application and credit relationship with the bank.

Issuance Date of the Documents

The date of shipment or loading on board of goods.

IT06

An initiative calling for the development of an international trade data system sponsored by the US Government that will meet the needs of Federal agencies involved in international trade as well as the trade information needs of businesses and the general public.

To the Top