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BEM 
See under Big Emerging Markets.    

BNC 
See under Binational Commission.    

BOT - see Build-Operate-Transfer .  

Back Order 
That portion of an order which the vendor cannot deliver on schedule and which has been re-entered for shipment when available.  

Balance of Payment. 
The balance of payments is a statistical summary of international transactions. These transactions are defined as the transfer of ownership of something that has an economic value measurable in monetary terms from residents of one country to residents of another. The transfer may involve:
(a) goods, which consist of tangible and visible commodities or products;
(b) services, which consist of intangible economic outputs, which usually must be produced, transferred, and consumed at the same time and in the same place;
(c) income on investments; and
(d) financial claims on, and liabilities to, the rest of the world, including changes in a country's reserve assets held by the central monetary authorities.
Generally, a transaction is the exchange of one asset for another -- or one asset for several assets -- but it may also involve a gift, which is the provision by one party of something of economic value to another party without something of economic value being received in return. 

International transactions are recorded in the balance of payments on the basis of the double-entry principle used in business accounting, in which each transaction gives rise to two offsetting entries of equal value so that, in principle, the resulting credit and debit entries always balance. Transactions are generally valued at market prices and are, to the extent possible, recorded when a change of ownership occurs. Transactions in goods, services, income, and unilateral transfers constitute the current account, and transactions in financial assets and liabilities constitute the capital account. 

The International Monetary Fund, which strives for international comparability, defines the balance of payments as "a statistical statement for a given period showing
(1) transactions in goods, services, and income between an economy and the rest of the world;
(2) changes of ownership and other changes in that economy's monetary gold, special drawing rights (SDRs), and claims on and liabilities to the rest of the world; and
(3) unrequited transfers and counterpart entries that are needed to balance, in the accounting sense, any entries for the foregoing transactions and changes which are not mutually offsetting."   

The U.S. balance of payments presentation does not contain a specific number that indicates an overall "balance," although several partial balances are published. In an accounting sense, an overall balance is not possible, because, the net sum of credit and debit entries in the balance of payments accounts is conceptually zero, in accordance with the principles of double-entry accounting. If the entries do not balance exactly, the net amount of missing credits or debits is entered as a statistical discrepancy in order to bring the two parts of the statement into equilibrium. 

The seven balances that are currently published quarterly are: 
- the balance on merchandise trade, which measures the net transfer of merchandise exports and imports; 
- the balance on services, which measures the net transfer of services, such as travel, other transportation, and business, professional, and other technical services (this balance was redefined in 1990 to exclude investment income);    
- the balance on goods and services, which measures the sum of the balance on merchandise trade and the balance on services;   
- the balance on investment income, which measures the net transfer income on direct and portfolio investments; 
- the balance on goods, services, and income, which measures the net transfer of merchandise plus services and income on direct and portfolio investment (this balance is equivalent to the pre-1990 balance on goods and services; it is also conceptually comparable to net exports of goods and services included in GNP);    
- the balance on unilateral transfers (net), which measures the net value of gifts, contributions, government grants to foreign countries, and other unrequited transfers;  
- the balance on current account (widely used for analysis and forecasting) which measures transactions in goods, services, income, and unilateral transfers between residents and nonresidents. 

Balance of trade. 
The difference between a country's imports and exports during a specific time period.  

Balance on ... 
- Current account; 
- Goods, services, and income; 
- Investment income; 
- Merchandise trade; 
- Services; 
- Unilateral transfers 
See Balance of Payments. 

Balance sheet. 
Financial statement that lists a company's assets and liabilities as of a specified date.  

Banco Centroamericano de Integracion Economico.     
See Central American Bank for Economic Integration.    

Banco Interamericano de Desarollo.  
See Inter-American Development Bank.    

Banco Latinoamericano de Exportaciones (BLADEX).     
BLADEX (English: Latin American Export Bank) is a multinational bank which provides short- (95%+) and medium-term financing. Operations are conducted in U.S. dollars. Borrowers are primarily Latin American commercial banks of member countries which finance specific trade transactions for their customers. The bank was incorporated in 1978 (began operations in January 1979); headquarters are in Panama City, Panama. Shareholders includes Latin American central and commercial banks, international commercial banks, and the International Finance Corporation.    

Banco Nacional de Comercio Exterior (BANCOMEXT).     
BANCOMEXT, Mexico's national foreign trade bank, provides credits, guarantees, and promotion services to support Mexico's foreign trade. BANCOMEXT also assists Mexican importers by providing short-term loans to support importation of selected commodities and medium-term credits (up to five years) for imporation of capital goods. Headquarters are in Mexico City. 

Bank Advisory Committee. 
The Bank Advisory Committee, which in some respects has replaced the London Club, is not a structured or formal organization. The Bank Advisory Committee consists mostly of lead bankers in an individual debtor country. The lead bankers, representing the interests of the debtor country's banking industry, develop retructuring plans which the committee proposes to their government. The debtor country government, in turn, proposes the plan to foreign lending governments. See London Club.    

Bank Affiliate Export Trading Company. 
An Export Trading Company partially or wholly owned by a banking institution as provided under the U.S. Export Trading Company Act.    

Banker's Acceptance. 
A banker's acceptance is a draft drawn on and accepted by a bank. Depending on the bank's creditworthiness, the acceptance becomes a financial instrument which can be discounted.  

Banker's Bank. 
A bank that is established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.    

Banker's Draft. 
Draft payable on demand and drawn by or on behalf of the bank itself; it is regarded as cash and cannot be returned unpaid.    

Bank for International Settlements (BIS).    
BIS, established in 1930, promotes cooperation among central banks in international financial settlements. Members include: Australia, Austria, Belgium, Bulgaria, Canada, Czechoslovakia, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Netherlands, Norway, Poland, Portugal, Romania, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom, the United States, and Yugoslavia. Bank headquarters are in Basle, Switzerland. 

Bank Guarantee. 
An assurance, obtained from a bank by a foreign purchaser; that the bank will pay an exporter up to a given amount for goods shipped if the foreign purchaser defaults. See Letter of Credit. 

Bank Holding Company. 
Any company which directly or indirectly owns or controls, with power to vote, more than five percent of voting shares of each of one or more other banks.  

Bank of Central African States (BEAC). 
The bank (French: Banque des Etats de l'Afrique Centrale, BEAC) issues a common currency unit, the Central African Franc. Members include The Cameroon, Central African Republic, Chad, People's Republic of Congo, Gabon, and Equitarial Guinea. France participates in management of the bank and provides guarantees for the currency. BEAC was established in April 1973; headquarters are in Yaoundé, Cameroon.  

Bank Release. 
Negotiable time draft drawn on and accepted by a bank which adds its credit to that of an importer of merchandise. 

Banker's acceptance. 
A time draft under an irrevocable letter of credit confirmed by a prime U.S. bank presents relatively little risk of default. Also, some banks or other lenders may be willing to buy time drafts that a creditworthy foreign buyer has accepted or agreed to pay at a specified future date. In some cases, banks agree to accept the obligations of paying a draft, usually of a customer, for a fee; this is called a banker's acceptance. 

Banque Arabe pour le Développement Economique en Afrique (BADEA). 
See Arab Bank for Economic Development in Africa.    

Banque Centrale des Etats de l'Afrique de l'Ouest (BECAO).   
BECAO, which operates as a central bank under authority of the West African Monetary Union, issues the common currency for member states: Benin, Burkina Faso, Côte d'Ivoire, Mali, Niger, Senegal, and Togo. 

Banque de Développement des Etats de l'Afrique Centrale (BDEAC). 
See Central African States Development Bank.    

Banque de Développement des Etats du Grand Lac (BDEGL).   
See Development Bank of the Great Lakes States.    

Banque des Etats de l'Afrique Centrale (BEAC).     
See Bank of Central African States.    

Banque Française du Commerce Extérieur (BFCE).     
BFCE, a government-owned agency, is the French Government lender for officially supported export credits at preferential interest rates. The Bank, which provides financing for international trade, plays a coordinating role between exporters and the French government. BFCE services include:
(a) offering fixed-rate interim credit and payment plans during the manufacture of goods or performance of services;
(b) providing endorsements to gain access to refinancing and special low-interest loans and rediscounting the available portion of such credit with the Banque de France; and
(c) using funds borrowed in France and overseas under State guarantees to finance buyer credits running more than seven years as well as refinancing supplier credits for the same term. BFCE also manages Treasury guarantees on French overseas investment.  
See Compagnie Française d'Assurance pour le Commerce Extérieur.  

Banque Quest-Africaine de Développement (BOAD).     
See West African Development Bank.   

Bargaining Power.  
Each party negotiating to participate in an international business strategic alliance that can bring complementary skills and assets to the alliance which urgently needs them has real bargaining power. The goal in negotiations is to find ways for each partner to win short, medium and long term potential benefits thereby bringing forth its best creative powers, unique talent and significant advantages.    

Barter. 
Barter is a one-time transaction bound under a single contract that specifies the direct exchange of selected goods or services for another of equivalent value. Barter is the oldest form of reciprocal trade. No financial transfers are involved in barter transactions. The time interval between exchanges is short and does not usually exceed 12 months. The limited flexibility of barter transactions makes these arrangements a rare occurence in international commerce. 

Basel Convention. 
The Basel Convention restricts trade in hazardous waste, some non-hazardous wastes, solid wastes, and incinerator ash. It was adopted in 1989 by a United Nations-sponsored conference of 116 nations in Basel, Switzerland. Twenty nations must ratify the treaty before it goes into effect. 

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

Belgium-Luxembourg Economic Union (BLEU).     
BLEU (French: UEBL, from Union Economique Belgo-Luxembourgeoise), established in July 1921, introduced a system of monetary association between Belgium and Luxembourg. 

Benelux Economic Union. 
Benelux (acronym for Belgium, Netherlands, and Luxembourg) is an economic union originally established in January 1948 and revised in January 1960. Benelux continues as an internal regional association within the European Community (EC) because the association's aims do not conflict with EC goals. 

Best Information Available.  
Under GATT rules, when a respondent in an antidumping or countervailing duty case either declines to provide information, or provides inadequate information, the investigating authority has the right to resort to other information, a practice known as best information available. Determinations of BIA may be made on a case-by-case basis; in some cases, it may be information submitted be petitioners.    

Bidder 
Any person, company who offers a bid.    

Bidder list 
A list maintained by an organization giving names and addresses of suppliers of various goods and services from whom bids and proposals can be solicited.  

Big Emerging Markets (BEM)  
A group of fast-growing economies that the Department of Commerce has identified as major U.S. export markets in the future: Argentina, Brazil, the Chinese Economic Area (China, Hong Kong, and Taiwan), India, Indonesia, Mexico, Poland, South Africa, South Korea, and Turkey. In 1994, the total population of the BEMs was 2.8 billion, about half of world population.   
Market demand on the part of the BEMs is growing rapidly. Between 1990 and 1995, Big Emerging Market nation's imports surged, garnering 30 percent of the world's import share in 1995 compared to 22 percent in 1990. The BEM countries accounted for 44 percent of the dollar growth in world imports between 1990 and 1995. (U.S. Department of Commerce) 

Bilateral Clearing Agreement.  
Government-to-government reciprocal trade arrangement whereby two nations agree to a trade turnover of specified value over one or more years. The value of the products traded under the agreement is denominated in accounting units expressed in major currencies--such as clearing U.S. dollars, clearing Swiss francs, etc. Exporters in each country are paid by designated local banks in domestic currencies.  

Bilateral Investment Treaty (BIT).  
A bilateral investment treaty, BIT, ensures U.S. investments abroad of national or most favored nation treatment; prohibits the imposition of performance requirements; and allows the American investor to engage top management in a foreign country without regard to nationality. BITs ensure the right to make investment-related transfers, and guarantee that expropriation takes place only in accordance with accepted international law. BITs also guarantee access by an investing party to impar ti al and binding international arbitration for dispute settlement.   

Bilateral Steel Agreements (BSA).  
The U.S. negotiated ten bilateral steel agreements, BSAs, with major steel trading partners. Under BSAs, the governments agreed to reduce or eliminate state intervention -- that is, domestic subsidies and market barriers.    

Bill of exchange. 
A signed, written order by one business that instructs another business to pay a third business a specific amount.
See also draft.  

Bill of Lading. 
Bills of lading are contracts between the owner of the goods and the carrier. There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is used for many types of financing transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.    

Binational Commission (BNC)  
U.S.-Mexico commission which provides a forum to further promote closer economic and commercial ties between the U.S. and Mexico.    

Biological Agents. 
Several classes of biological agents have been identified according to their degree of pathogenic hazard, and are controlled by the United States in accord with provisions of the Australia Group. Applications submitted to the Department of Commerce for the export of certain biological agents are generally referred to the Department of State and the intelligence community on a case-by-case basis.

Blanket Order 
See open-end contract. 

Blocked Currency.  
Currency that cannot be freely transferred into convertible currencies and expatriated. Usually synonymous with foreign-owned funds or earnings in countries where government exchange regulations prohibit their expatriation.  

Blue Lantern. 
Blue Lantern, a procedure pertaining to U.S. Munitions List items, is intended to verify that information stated on export license applications is valid and that the use of the commodity or service exported is consistent with the terms of the license. It includes prelicense and postshipment checks of export applications conducted by designated officials at U.S. embassies. Blue Lantern was initiated in September 1990 by the State Department's Office of Defense Trade Controls   

Bond. 
A debt instrument that pays a set amount of interest on a regular basis. The issuer promises to repay the debt on time and in full. Bonds are bought and sold on the market.  

Bond (performance) 
A bond executed in connection with a contract that secures the performance and fulfillment of all conditions and terms written into the purchase order.  

Bond System. 
The Bond System, a part of Customs' Automated Commercial System, provides information on bond coverage. A Customs bond is a contract between a principal, usually an importers, and a surety which is obtained to insure performance of an obligation imposed by law or regulation. The bond covers potential loss of duties, taxes, and penalties for specific types of transactions. Customs is the contract beneficiary.  

Bonded Exchange. 
Exchange which cannot be freely converted into other currencies.

Bonded Warehouse.  
A building authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Book-to-bill ratio. 
A measure of sales trends of a company or industry. A number above 1 indicates an expanding market, and a number below 1 is a contracting market. For example, abook-to-bill ratio of 1.03 means that for every $100 of products shipped, $103 in new orders was received. 

Book value. 
The difference between a company's assets and its liabilities, usually expressed in per-share terms. It takes into account all money invested in the company since its founding, as well as retained earnings. It is calculated by substracting liabilities from assets and dividing the result by the number of shares outstanding. Comparing book value to share price is one way to gauge if a company'stock is undervalued or overvalued. 

Border Cargo Selectivity (BCS).  
BCS is an automated cargo selectivity system based on historical and other information. The system is designed to facilitate cargo processing and to improve Customs enforcement capabilities by providing targeting information to border locations. The system is used for the land-border environment.    

Border Environment Cooperation Commission (BECC).     
The BECC is a U.S.-Mexican binational commission intended to facilitate border environmental clean-up and to provide additional support for community adjustment and investment related to the North American Free Trade Agreement. The BECC will assist border states and local communities in coordinating, designing, and financing environmental infrastructure projects with cross-border impact. To be eligible, projects must observe the environmental laws for the place where the project is located or carried out. The BECC will certify projects to the North American Development Bank (NADBank) and will seek to mobilize financing from the NADBank, federal, state, and local grants, loans, and guarantees, and the private sector. 
See North American Development Bank.    

Bottom line. 
Accounting term for the net profit or loss.    

Boundaryless Organization.  
A business organization that eliminates inefficient boundaries between organizational levels and functions of its workers; a supplier which enters into alliances to better serve its customers; an information system that has connections to any country in the world---are examples of the strong trend toward future flexible operations for better growth potential. 

Brand NAme Specification 
A specification that cites a brand name, model name, model number or some other designation that identifies a specific product as an example of the desired quality of merchandise. 

Break Bulk.  
Loose cargo, such as cartons, stowed directly in the ship's hold as opposed to containerized or bulk cargo. See "Containerization."  

British High Commission (BHC).  
The term British High Commission (BHC, or High Commission, HC, or Her Majesty's High Commission, HMHC) is used in lieu of "embassy" in Commonwealth countries. 

British Overseas Trade Board (BOTB). 
The BOTB, located in the Department of Trade and Industry (DTI), advises on international trade and guides the government's export promotion program, including policy, financing, and overseas projects. The Board is composed of industry and government representatives; the chairman is an industrialist, the Chief Executive is a member of DTI. The export departments of the BOTB's regional offices work together with commercial staff from the Foreign and Commonwealth Office (FCO) to provide commercial assistance through UK overseas offices. 

Brussels Tariff Nomenclature.  
A once widely used international tariff classification system which preceded the Customs Cooperation Council Nomenclature (CCCN) and the Harmonized System Nomenclature (HS). The BTN was changed in name only to the CCCN in 1976 to avoid confusion with the tariff of the European Community. 

Build-Operate-Transfer (BOT).  
Debt and equity financing of a major turnkey project, such as a nuclear power plant.  
The foreign supplier constructs and then operates the completed plant for profit over a contracted number of years. Until the plant is transferred to local ownership, the revenues derived from its operations serve to service debt and generate returns for the supplier.  

Bulk Cargo. 
Bulk cargo is unbound as loaded and carried aboard ship; it is without mark or count, in a loose unpackaged form, and has homogeneous characteristics.    

Bulk Shipments.  
Shipments which are not packaged, but are loaded directly into the vessel's holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap, iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers, and similar commodities.  

Bundesbank. 
The Bundesbank is the German central bank. The main functions of the Bundesbank are to regulate the money supply, support the general economic policy of the federal government, and issue banknotes. It sets the key discount rate, the Lombard rate, and minimum reserve requirements. Bank headquarters are in Frankfurt, Germany.  

Bundesstelle für Aussenhandelsinformation.     
See Bundesministerium für Wirtschaft.    

Bundesministerium für Wirtschaft.  
The BMWi (German: Ministry for Economic Affairs) gathers and distributes market information and supports semiprivate and private organizations, such as overseas chambers of commerce. Within the BMWi is the Federal Office for Foreign Trade (Bundesstelle fr Aussenhandelsinformation, BfAi), the government's primary agency for gathering and disseminating information. BfAi collects and distributes market information through a worldwide network. 

Bureau of International des Expositions (BIE).     
The Bureau of International Expositions, BIE, is an international organization established by the Paris Convention of 1928 to regulate the conduct and scheduling of international expositions in which foreign nations are officially invited to participate. The BIE divides international expositions into different categories and types and requires each member nation to observe specified minimum time intervals in scheduling each of these categories and types of operations. Under BIE rules, member nations may not ordinarily participate in an international exposition unless the exposition has been approved by the BIE. The United States became a member of the BIE in April 1968. Federal participation in a recognized international exposition requires specific authorization by the Congress, based on the President's finding that participation is in the national interest. 

Business Council for International Understanding (BCIU).   
The BCIU is an independent, non-partisan, business association which was formed at the initiative of President Eisenhower. BCIU operates the U.S. Ambassadorial and Senior Diplomat Industry Program in which most U.S. Ambassadors come to BCIU after appointment and again in mid tour for briefings with top management of companies active or interested in the diplomat's country of assignment. While originally focused exclusively on U.S. diplomats, BCIU now also sponsors discussions with visiting Chiefs of Government, Ministers of Finance and Industry, Central Bank Governors, and other foreign officials.  

Business Executive Enforcement Team (BEET).     
The Business Executive Enforcement Team, BEET, provides a channel for private sector executives to discuss export control enforcement matters with the Bureau of Export Administration. 

Business Facilitation Office (BFO).  
This is usually a booth with a reference desk with product catalogs manned by the Commercial Section or a qualified contractor to assist fair visitors or buyers searching for U.S. products or services at an international trade fair.    

Business Information Office.  
The business information office or center is a post or contract-staffed commercial reference facility usually at a scheduled international trade exhibition. 

Business Information Service for the Newly Independent States (BISNIS). 
BISNIS is a one-stop shop for U.S. firms interested in obtaining assistance on selling in the markets of the Newly Independent States of the former Soviet Union (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan). BISNIS provides nformation on trade regulations and legislation, defense conversion opportunities, commercial opportunities, market data, sources of financing, government and industry contacts, and U.S. government programs supporting trade and investment in the region. BISNIS, established in June 1992, maintains a 24-hour automated flashfax system through which U.S. companies can receive information on doing business in the NIS via fax (202-482-3145). 

Buy American Restrictions (BAR).  
BARs were derived from the Buy American Act (BAA) of March 1933 and amended by the Buy American Act of 1988. Restrictions may take several forms, including: (a) straightforward prohibition of public sector bodies from purchasing goods from foreign suppliers, (b) establishing local content requirements of anything up to 100% of the value of the product, (c) extending preferential terms to domestic suppliers, and (d) setting up of manufacturing or assembly facilities in the United States. The BAA contains four exceptions which permit an executive agency to procure foreign materials when: (a) items are for use outside the United States, (b) domestic items are not available, (c) procurement of domestic items is determined to be inconsistent with the public interest, and (d) the cost of domestic items is determined to be unreasonable. The Trade Act of 1979 (which addressed implementation of the Tokyo Round) waives the BAA for certain designated countries which grant reciprocal access to U.S. suppliers.    

Buyback (or Compensation).  
Buyback is an agreement whereby the primary supplier accepts as full or partial repayment products derived from the original exported product. Buyback arrangements support the financing of production facilities - e.g., the export of machinery and capital equipment, manufacturing processes, and technology.    

Buyer credit. 
Some export sales, especially sales of capital equipment, may sometimes require financing terms tailored to the buyer's cash flow and may involve payments over several years. Often the buyer obtains a loan from its own bank or arranges for other financing to enable it to pay cash to the exporter. U.S. exporters frequently benefit from such buyer credits when federal agencies such as the U.S. Export-Import Bank and Overseas Investment Corporation participate.

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