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Business Reading Room
Glossary and Acronyms - from Con
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E F G H I J K L M N O P Q R S Sp T U VWXYZ
Confédération Internationale du Crédit
Agricole (COCA).
COCA (English: International Confederation of Agricultural Credit,
ICAC) coordinates documentation and information improvements pertaining to agricultural
credit. Confederation members are agricultural credit banks and other institutions which
provide or study agricultural credits. ICAC was established in 1932; headquarters are in
Zurich, Switzerland.
Conférence Européenne des Administrations des
Postes et des Télécommunications (CEPT).
CEPT (English: European Conference of Postal and Telecommunications
Administration) harmonizes, simplifies, and improves postal and telecommunciations
services. Many CEPT standards creating activities have been assumed by the European
Telecommunications Standards Institute. CEPT maintains offices in Paris, France and Bern,
Switzerland.
See European Telecommunications Standards Institute.
Conference on Security and Cooperation in Europe
(CSCE).
CSCE was established in 1991 as a successor to the Eastern bloc's
Council for Mutual Economic Assistance (CMEA or COMECON). CSCE administers residual
tariffs and quotas and relations with other organizations.
Confirming.
Confirming is a financial se rvice in which an independent company
confirms an export order in the seller's country and makes payment for the goods in the
currency of that country. Among the items eligible for confirmation (and thereby eligible
for credit terms) are the goods themselves, inland, air, and ocean transportation cost,
forwarding fees, custom brokerage fees, and duties .For the exporter, confirming means
that the entire export transaction from plant to end-user can be fully coordinated and
paid for over time. Confirming is common in Europe, however, it is still in its infancy in
the United States.
Confirming Order
A purchase order placed verbally or otherwise for goods or services
prior to the formal issuance of a purchase document against authorized encumbered funds.
Conformité Européene.
The CE mark signifies that a product meets specific EC-wide
conformity assessment requirements. The mark does not endorse the quality or durability of
a product, but only that it satisfies mandatory technical requirements. The designation is
needed for sale of products which become subject ot Community-wide
"new-approach" directives.
See: European Norm.
Conseil de Coopé‚ration Douanière.
See: Customs Cooperation Council.
Conseil de l'Entente.
The Conseil de l'Entente (Entente Council) is an alliance of Benin,
Burkina Faso, Côte d'Ivoire, Niger (all formerly part of French West Africa), and Togo
(which joined in 1966). The Council was established in 1959; headquarters are in Abidjan,
Côte d'Ivoire.
Consignee.
The person, fir m or representative to whom a seller or shipper
sends merchandise and who, upon presentation of the necessary documents, is recognized as
owner of the merchandise for the purpose of the declarati on and payment of customs duties
This term also is used as applying to one to whom goods are shipped, usually the shipper's
risk, when an outright sale has not been made.
Consignment.
Delivery of merchandise from an exporter (the consignor) to an
agent (the consignee) under agr eement 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.
Consolidation.
The Consolidation Endorsement may be added to an Open Cargo Policy
at an agreed premium, to provide coverage on merchandise while in transit to, and while
at, a common consolidation point for the purpose of preparing or consolidating the
merchandise for export.
Uniting into one unit or body. There is consolidation when a new
operating company is formed from the merger of two or more existing companies that
contribute their assets and then lose their own respective l egal identities.
Consortia of American Businesses in Eastern Europe.
The CABEE program, administered by the U.S. Department of Commerce,
provides grants of up to $500,000 to each of five non-profit consortia of for-profit
companies to cover up to one-half of costs of starting-up commercial operations in Eastern
Europe. Launched under the American Business and Private-Sector Development Initiative for
Eastern Europe, CABEE is intended to help overcome difficulties faced by small and
medium-sized firms in entering Eastern Europe markets. CABEE was established in June 1991.
Consortia of American Businesses in the Newly
Independent States.
CABNIS is a cooperative, cost-sharing program of government and the
private sector that helps non-profit business consortia establish a commercial presence
and pursue business in the Newly Independent States on behalf of profit-making U.S.
corporations and associations. The program provides matching government grants of up to
$500,000 to each consortia. CABNIS, established in July 1992, is administered by the
Commerce Department's International Trade Administration. CABNIS was established in July
1992.
Constant Dollars
Values adjusted to a base price level, calculated by dividing
current dollars by a price deflator. Use of constant dollars eliminates the effects of
price inflation and permits the comparison of output volumes over time. Also known as
"real" dollars.
Constructed Value.
A means of determining fair or foreign market value when sales of
such or similar merchandise do not exist or, for various reasons, cannot be used for
comparison purposes. The "constructed value" consists of the cost of materials
and fabrication or other processing employed in producing the merchandise, general
expenses of not less than 10 percent of material and fabrication costs, and profit of not
less than 8 percent of the sum of the production costs and general expenses. To this
amount is added the cost of packing for exportation to the United States.
See: Tariff Act of 1930.
Consul.
A government official residing in a foreign country who is charged
with the representation of the interests of his country and its nationals.
Consular Declaration.
A formal statement, made to the consul of a foreign country,
describing goods to be shipped.
Consular Documents.
Bills of lading, certificates of origin or special invoice forms
that are officially signed by the consul of the country of destination.
Consular Information Sheet.
See: Travel Advisory Program.
Consular Invoice.
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.
Consultative Committee for International Telephone
and Telegraphy.
CCITT facilitates U.S. coordination of communications standards
issues. CCITT is a part of the International Telecommunications Union (ITU), which is an
international treaty organization. The State Department is responsible for coordinating
and presenting U.S. positions to the ITU.
See: International Telecommunications Union.
Consultative Group on International Agricultural
Research.
CGIAR, an informal association of public and private sector donors,
supports international agricultural research centers (IARCs) around the world. The centers
develop new ways to increase sustainable food production and improve the nutritional and
economic well-being of low-income people. CGIAR, sponsored by the World Bank and other
international organizations, was established in 1971; its Secretariat is in Washington,
D.C. The research centers include:
- Centro Internacional de Agricultura Tropical (CIAT), Colombia
- Centro Internacional de Mejoramiento de Maiz y Trigo (CIMMYT),
Mexico
- International Board for Plant Genetic Resources (IBPGR), Italy
- International Center for Agricultural Research in Dry Areas
(ICARDA), Syria
- International Centre for Research in Forestry (ICRAF), Kenya
- International Crops Research Institute for the Semi-Arid Tropics
(ICRISAT), India
- International Food Policy Research Institute (IFPRI), United
States
- International Irrigation Management Institute (IIMI), Sri Lanka
- International Institute of Tropical Agriculture (IITA), Nigeria
- International Livestock Center for Africa (ILCA), Ethiopia
- International Laboratory for Research on Animal Diseases (ILRAD),
Kenya
- International Network for the Improvement of Banana and Plantain
(INIBAP), France
- International Rice Research Institute (IRRI), Philippines
- International Service for National Agricultural Research (ISNAR),
Netherlands and
- West Africa Rice Development Association (WARDA), Côte d'Ivoire.
Consumer Price Index (CPI)
A measurement of the relative price levels of various goods and
services purchased by consumers.
Contadora Group.
The Contadora Group, which first met on the Panamanian island of
Contadora in January 1983, seeks solutions to conflict in Central America. Members include
the foreign ministers of Colombia, Mexico, Panama, and Venezuela. Group headquarters are
in Mexico City, Mexico.
Container.
A uniform, sealed, reusable metal "box" in which
merchandise is shipped by vessel, truck, or rail. Standard lengths include 10, 20, 30, and
40 feet (40 foot lengths are generally able to hold about 40,000 pounds). Containers of 45
and 48 feet are also used, as well as containers for shipment by air.
Containerization.
Shipping systems based on large cargo-carrying containers ranging
up to 48 feet long that can be easily interchanged between trucks, trains and ships
without rehandling the contents.
Contract
A written agreement between two or more authorized representatives
to perform or not to perform a specific act or acts.
Contracting Parties.
Contracting parties are the signatory countries to the GATT. These
countries have accepted the specified obligations and privileges of the GATT agreement.
Contraband.
During the time of war, materials carried aboard a vessel that
could aid a belligerent in the process of the war, such as arms, weapons or munitions.
Convention.
See: International Agreements.
Convention on Contracts for the International Sale
of Goods.
The UN Convention on Contracts for the International Sale of Goods,
CISG, became the law of the United States in January 1988. CISG establishes uniform legal
rules governing formation of international sales contracts and the rights and obligations
of the buyer and seller. The CISG applies automatically to all contracts for the sale of
goods between traders from two different countries that have both ratified the CISG,
unless the parties to the contract expressly exclude all or part of the CISG or expressly
stipulate a law other than the CISG.
Conventional Arms Transfer.
The transfer of non-nuclear weapons, aircraft, equipment, and
military services from supplier states to recipient states. U.S. arms are transferred by
grants as in the Military Assistance Program (MAP); by private commercial sales; and by
government-to-government sales under Foreign Military Sales (FMS).
MAP provides defense articles and defense services to eligible
foreign governments on a grant basis.
FMS provides credits and loan repayment guarantees to
enable eligible foreign governments to purchase defense articles and defense services.
Convertible Currency.
A currency that can be bought and sold for other currencies at
will.
Cooperative Contracts.
Any agreement to engage in joint economic activities, such as a
contract for an enterprise owned and operated by one or all of the parties who use
its facilities or services. Simple oral and written contracts may be used by companies to
begin a cooperative working relationship in an international strategic alliance. Contract
terms, conditions and covenants may be brief and should encourage close cooperation
between the companies involved for a reasonable time period, to enable their personnel to
learn more about each other's capabilities and goals before they consider moving into an
even closer more complicated and formal alliance.
Cooperator Program.
See: Foreign Market Development Program.
Coordination Council for North American Affairs.
The CCNAA, the counterpart to the American Institute in Taiwan,
unofficially represents Taiwan's interests in the United States. The Council provides
information on trade, business, and investment opportunities to the American business
community. Council headquarters are in Washington, D.C.
See: American Institute in Taiwan.
Coproduction
Coproduction is a U.S. government program implemented either by a
government-to-government arrangement or through specific licensing arrangements by
designated commercial firms. These programs enable foreign entities to acquire the
know-how to manufacture or assemble, repair, maintain, and operate all or part of a
specific defense item or weapon, communication, or support system.
Core List.
National security controls are based largely on CoCom's
international industrial list (known generally as the "core list"), which
replaced the old industrial list effective September 1991. The core list includes items in
ten categories: (1) materials, (2) materials processing, (3) electronics, (4) computers,
(5) telecommunications and cryptography, (6) sensors, (7) avionics and navigation, (8)
marine technology, (9) propulsion systems and transportation equipment, and (10)
miscellaneous.
Corporacion Andina de Fomento.
See: Andean Group.
Correspondent Bank.
A bank that, in its own country, handles the business of a foreign
bank.
Costs of Manufacture.
In the context of dumping investigations, the costs of manufacture,
COM, is equal to the sum of the materials, labor and both direct and indirect factory
overhead expenses required to produce the merchandise under investigation.
Cost of Production
A term used to refer to the sum of the cost of materials,
fabrication and/or other processing employed in producing the merchandise sold in a home
market or to a third country together with appropriate allocations of general
administrative and selling expenses. COP is based on the producer's actual experience and
does not include any mandatory minimum general expense or profit as in "constructed
value."
See: Tariff Act of 1930.
Cost and Freight
Cost and Freight (CFR) to a named overseas port of import. Under
this term, the seller quotes a price for the goods that includes the cost of
transportation to the named point of debarkation. The cost of insurance is left to the
buyer's account. (Typically used for ocean shipments only. CPT, or carriage paid to, is a
term used for shipment by modes other than water.) Also, a method of import valuation that
includes insurance and freight charges with the merchandise values.
Cost, Insurance and Freight
Cost, insurance, and freight (CIF) to a named overseas port of
import. Under this term, the seller quotes a price for the goods (including insurance),
all transportation, and miscellaneous charges to the point of debarkation for the vessel.
(Typically used for ocean shipments only. CIP, or carriage and insurance paid to, is a
term used for shipment by modes other than water.)
Cottonseed Oil Assistance Program.
COAP, one of four export subsidy programs operated by the
Department of Agriculture, helps U.S. exporters meet prevailing world prices for
cottonseed oil in targeted markets. USDA pays cash to U.S. exporters as bonuses, making up
the difference between the higher U.S. cost of acquiring cottonseed oil and the lower
world price at which it is sold.
Council for Mutual Economic Assistance.
The Council for Mutual Economic Assistance, CMEA or COMECON, was
established in 1949 ostensibly to create a common market. CMEA was a Soviet initiative
with Bulgaria, Czechoslovakia, Hungary, Poland, and Romania as founder members. The
Council was later joined by the German Democratic Republic, Mongolia, Cuba, and Vietnam;
Yugoslavia held associate status. Members normally received some products, particularly
oil and gas, from the former Soviet Union at below-market prices. CMEA was succeeded in
1991 by the Organization for Economic Cooperation (OIEC).
Council of American States in Europe.
This Council is composed of state representatives resident in
Europe supportive of official U.S. promotions.
Council of Economic Arab Unity.
CEAU fosters economic integration among Arab nations. The Council's
activities compiling statistics, conducting research, and promoting a customs union. The
Council was established in 1964; headquarters are in Amman, Jordan. The Council oversees
the Arab Common Market, which comprises Egypt, Iraq, Jordan, Libya, Mauritania, Syria, and
Yemen.
Council of Europe.
The COE (also: CE; French: Conseil de l'Europe)) was established in
May 1949 to encourage unity and social and economic growth among members, which currently
include: Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary,
Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, the Netherlands, Norway,
Portugal, San Marino, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. COE
headquarters are in Strasbourg, France.
Council on Security and Cooperation in Europe
Members include: Albania, Armenia, Austria, Azerbaijan, Belgium,
Bulgaria, Byelarus, Canada, Cyprus, Czechoslovakia, Denmark, Estonia, Finland, France,
Germany, Greece, the Holy See, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kyrgyzstan,
Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaco, Netherlands, Norway,
Poland, Portugal, Romania, Russia, San Marino, Spain, Sweden, Switzerland, Tajikistan,
Turkey, Turkmenistan, Ukraine, the United Kingdom, the United States, Uzbekistan, and
Yugoslavia.
Counterpurchase.
See: Countertrade.
Countertrade.
Countertrade is an umbrella term for several sorts of trade in
which the seller is required to accept goods, serivces, or other instruments or trade, in
partial or whole payment for its products. Forms include barter, buy-back or compensation,
offset requirements, swap, switch, or triangular trade, evidence or bilateral clearing
accounts. Some include offsets as a form of countertrade; others make a distinction based
on the view that countertrade is a reciprocal exchange of goods and services used to
alleviate foreign exchange shortages of importers and that offsets are used as a means for
advancing industrial development objectives and may include equity investments.
In counterpurchase (one of the most common forms of
countertrade), exporters agree to purchase a quantity of goods from a country in exchange
for that country's purchase of the exporter's product. The goods being
sold by each party are typically unrelated but may be equivalent in
value.
In a compensation or buy-back deal, exporters of
heavy equipment, technology, or even entire facilities agree to purchase a certain
percentage of the output of the facility.
Barter is a simple swap of one good for another.
Switch trading is a complicated form of barter, involving a chain of buyers and sellers in
different markets.
See: Offsets.
Countertrade Ratio.
Percent of the value of the original export that is offset by
counterdeliveries.
Countervailing Duty.
An extra charge that a country places on imported
goods to counter the subsidies or bounties granted to the exporters of the goods by their
home governments. The duty is allowed by the Code on Subsidies and Countervailing Duties
negotiated at the Tokyo Round, if the importing country can prove that the subsidy would
cause injury to domestic industry. U.S. countervailing duties can only be imposed after
the International Trade Commission has determined that the imports are causing or
threatening to cause material injury to a U.S. industry.
Country of Export Destination.
Country of destination for exports is the country where the goods
are to be consumed, further processed, or manufactured, as known to the shipper at the
time of exportation. If the shipper does not know the country of ultimate destination, the
shipment is credited to the last country to which the shipper knows that the merchandise
will be shipped in the same form as when exported.
Country Groups.
For export control purposes, the Bureau of Export Administration of
the U.S. Commerce Department separates countries into seven country groups designated by
the symbols: Q, S, T, V, W, Y, Z. Canada and Antartica are not included in any country
group. Canada is referred to by name throughout the Export Administration Regulations.
Antartica is controlled according to the country that occupies the area in Antartica where
the items proposed for export or reexport will be used.
See: Export Control Classification Number.
Country of Origin.
The U.S. Customs Service defines country of origin as the country
where an article was wholly grown, manufactured or produced, or, if not wholly grown,
cultivated or produced in one country, the last country in which the article underwent a
substantial transformation. Duty rates vary according to the country of origin.
Court of International Trade.
The CIT has jurisdiction over any civil action against the United
States arising from Federal laws governing import transactions. The court hears
antidumping, product classification, and countervailing duty matters as well as appeals of
unfair trade practice cases from the International Trade Commission. The court was
originally established in 1890; principal offices are located in New York City, but the
court is empowered to hear and determine cases arising at any port or place within the
jurisdiction of the United States. The judges are appointed for life by the President,
subject to Senate confirmation.
Crawling Peg System.
The crawling peg is a procedure in which a currency exchange rate
is altered frequently (multiple times a year), generally to adjust for rapid inflation.
Between changes, the exchange rate for the currency remains fixed.
See: Exchange Rate Classifications.
Credit for Countertrade/Offsets.
Procedure that reduces the size of the countertrade/offset
commitment of a primary supplier on the basis of prescribed or approved commercial
initiatives that the primary supplier and/or its designated agents undertake. Decisions
related to the approval and the amount of countertrade/offset credit to be granted to the
primary supplier rests with special government agencies that are responsible for
monitoring the supplier's performance.
Credit Risk Insurance.
Insurance designed to cover risks of nonpayment for delivered
goods. See also Marine insurance.
Credit Tranches.
The credit tranche policy is the International Monetary Fund's
(IMF) basic policy on the use of its general resources. Credit is made available in four
tranches, each equivalent to 25 percent of a member's quota.
A first credit tranche purchase raises the IMF's
holdings of the purchasing member's currency to no more than 25 percent of quota.
Generally, a member may reuest use of the IMF's resources in the first credit tranche if
it demonstrates that it is making reasonable efforts to overcome its balance of payments
difficulties. Also, a member may request use of the first credit tranche as part of a
stand-by arrangement.
Subsequent purchases are made in the upper credit
tranches. These resources are made available if a member adopts policies that provide
appropriate grounds for expecting that the member's balance of payments difficulties will
be resolved within a reasonable period. Use of these resources is almost always made under
a stand-by or an extended arrangement.
See: International Monetary Fund.
Critical Circumstances.
A determination made by the Assistant Secretary for Import
Administration (of the Commerce Department's International Trade Administration) as to
whether there is a reasonable basis to believe or suspect that there is a history of
dumping in the United States or elsewhere of the merchandise under consideration, or that
the importer knew or should have known that the exporter was selling this merchandise at
less than fair value, and there have been massive imports of this merchandise over a
relatively short period. This determination is made if an allegation of critical
circumstances is received from the petitioner.
See: Tariff Act of 1930.
Currency Swaps.
See: Swaps.
Current Account.
See: Balance of Payments.
Current Dollars
The actual dollar amount paid in sales transactions.
Customized Sales Survey.
The CSS is a fee-based International Trade Administration service
that provides firms with key marketing, pricing, and foreign representation information
about their specific products. Overseas staff conduct on-site interviews to provide data
in nine marketing areas about the product, such as sales potential in the market,
comparable products, distribution channels, going price, competitive factors, and
qualified purchasers. Additional information may be provided to clients at additional
charge. This product was formerly known as the Comparison Shopping Service.
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.
Customs Broker - Customhouse Broker.
Licensed by U.S. Customs to clear shipments for clients, also can
forward goods "In Bond" to y our port.
Customs Cooperation Council.
The CCC (French: Conseil de Coop‚ration DounaiŠre, CCD)
is an international organization consisting of representatives of about 150 countries. The
Council serve as a technical body which studies and seeks to resolve the various
countries' customs problems in an attempt to harmonize customs operations and promote
trade. The Council was established in 1950; headquarters are in Brussels, Belgium.
Customs Cooperation Council Nomenclature.
A customs tariff nomenclature formerly used by many countries,
including most European nations but not the United States. It has been superseded by the
Harmonized System Nomenclature to which most major trading nations, including the U.S.,
adhere.
Customs Electronic Bulletin Board.
The CEEB provides information on rulings, quotas, currency
conversion rates, customs valuation provisions, directives, and other customs news. The
CEBB is available without charge, 7 days each week at 202-376-7100 (9600 baud) with PC
communication switches set to no parity, 8 bit words and 1 stop bit. Voice information may
be obtained by calling 202-376-7039.
Customs Free Zone.
See: Free Trade Zone.
Customshouse Broker.
The U.S. Customs Service defines a CHB, or Customs Broker, as any
person who is licensed in accordance with Part III of Title 19 of the Code of Federal
Regulations (Customs regulations) to transact Customs business on behalf of others.
Customs business is limited to those activities involving transactions with Customs
concerning the entry and admissibility of merchandise; its classification and valuation;
the payment of duties, taxes, or other charges assessed or collected by Customs upon
merchandise by reason of its importation, or the refund, rebate, or drawback thereof. (See
19 CFR 111.1(b) and (c).)
Customs Import Value.
This is the U.S. Customs Serviceappraisal value of merchandise.
Methodologically, the Customs value is similar to f.a.s. (free alongside ship) value since
it is based on the value of the product in the foreign country of origin, and excludes
charges incurred in bringing the merchandise to the United States (import duties, ocean
freight, insurance, and so forth); but it differs in that the U.S. Customs Service, not
the importer or exporter, has the final authority to determine the value of the good.
Customs Union.
An agreement between two or more countries to remove trade barriers
with each other and to establish common tariff and nontariff policies with respect to
imports from countries outside of the agreement. The European Community is the most
well-known example. The two primary trade effects of a customs union are: (a) trade
creation -- the shift from consumption of domestic production toward consumption of member
imports and (b) trade diversion -- the shift from trade with non-member countries in favor
of trade with member countries.
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