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General Exim Terms (Export Import)


Absolute advantage - A country has an absolute advantage if its output per unit of input of all goods and services produced is higher than that of another country.

Acceptance - (1) It is a term used for a time draft (or bill of exchange) which has been accepted by the drawee and is unconditionally obligated to pay at maturity. The said draft should be presented first for acceptance - the drawee becomes the "acceptor" - then for the payment. The word "accepted" and the date and place must be written on the face of the draft. (2) A term for the drawee's act in receiving a draft and entering into the obligation to pay the mentioned value at maturity. (3) Any agreement to purchase goods under specified terms.

Ad-valorem duty - It is a duty fixed according to the value of the goods.

Ad valorem tax - (in Latin: to the value added) - a tax based on the value (or assessed value) of property.

Advance against documents - It is a loan made on security of the documents covering the shipment.

Advising bank - It is a bank in the exporter's country which handles letters of credit for a foreign bank by notifying the export firm of the credit opened in its favor. The advising bank completely informs the exporter of the conditions of the letter of credit without bearing responsibility for the payment.

Advisory capacity - It is a term, which indicates that a shipper's agent or representative is not empowered to make any of the definitive decisions or adjustments without the approval of the group or individual represented.

Agent - [ check Foreign Sales Agent]

Aggregate demand - is the sum of all demand in an economy. This can be computed by adding the expenditure on consumer goods and services, investment, and not exports (total exports minus total imports).

Aggregate supply - is the total value of the goods and services produced in a country, plus the value of imported goods less the value of exports.

Air Waybill - It is the shipping document used for the transportation of airfreight that includes conditions, limitations of liability, shipping instructions, description of commodity, and the applicable transportation charges. It is usually similar to a non-negotiable bill of lading and is used for similar purposes.

Anti-dumping duties - It is an additional duties which are imposed on imported goods when these goods are sold to the importing country at a lower price than what it is charged in the home market.

Arbitrage - It is a term used for the process of buying foreign exchange, stocks, bonds or any other commodities in one market and selling them immediately in another market at a higher price.

ATA carnet - [check Carnet]

Autarky - An autarky is an economy that does no trade with the outside world, or an ecosystem not affected by influences from its outside, and relies entirely on its own resources.

Average propensity to consumer - is the proportion of income the average family spends on goods and services.

Average propensity to save - is the proportion of income the average family saves (does not spend on consumption).

Average total cost - is the sum of all the production costs divided by the number of units produced.

Assessment - A study to determine whether, and to what extent, labour practices comply with the provisions of a code of labour practice. The term can refer to the study of a workplace but can also apply to more general studies such as to an industry within a country.

Audit - A thorough formal examination of the labour practices of a particular workplace or company, based on corroborated evidence.

AFTA - (otherwise known as the Andean-FTA): The Andean Free Trade Agreement is being negotiated between the United States, Colombia, Ecuador, and Peru (with the possibility of including Bolivia at a later time).