Restricted Commodities: These are commodities that rules and regulations require special approvals and documentation for shipping.
Schedule B: A 10-digit product classification code used by the U.S. Census Bureau to collect trade statistics. The first 6-digits of this code are the standard international HS number, or Harmonized Code. The remainder further define the precise commodity being shipped. There are about 8,000 Schedule-B classifications. A good way to look-up your product’s code number is with the "Schedule-B Search Engine." (https://uscensus.prod.3ceonline.com/)
Secondary Market Research: The collection of data from various sources (mostly online), such as trade statistics for a country or a product. Secondary research is less expensive that primary research, and is often used initially to determine which regions or countries have the most potential, and thus merit primary research.
SITC (Standard International Trade Classification): The SITC recommended by the United Nations for classifying trade statistics for economic analysis, is also used in many trade statistics reports. This is all highly theoretical until you are trying to decide which market is worth investing your money in.
Sight Draft: A form of payment used when the exporter wishes to retain title to the shipment until it reaches its destination and payment is made. Before the shipment can be released to the buyer, the original “order” ocean bill of lading (the document that evidences title) must be properly endorsed by the buyer and surrendered to the carrier.
Small Business Development Center (SBDC): A government-funded national network of business counselors for small enterprises. In many states, SBDCs offer service to help exporters.
Specially Designated Nationals: The Treasury Department maintains a list of foreign nationals and companies with whom you are prohibited from doing business. (www.treasury.gov/SDN)
Subsidy: An economic benefit granted by a government to domestic producers of goods or services, often to strengthen their competitive position.
Supply: The quantity of a product that sellers will make available at a given price and time in a specific market. A supply schedule indicates the quantity of a product that might enter the market at a particular time. In a market economy, supply is principally determined by many individual firms trying to earning profits.
Surplus: The amount of a commodity that cannot be absorbed in a given market at the existing price.
Tariff: A tax imposed on a product when it is imported into a country. Tariffs may be used to raise the prices of imported products, thus making them less competitive with locally-produced goods.
Technology Licensing: A contractual arrangement under which patents, trademarks, service marks, copyrights, trade secrets, or other intellectual property are sold or made available to an overseas licensee. U.S. companies frequently license their technology to foreign companies that use it to manufacture and sell products in their country or region as defined in the licensing agreement. Technology licensing allows a company to enter a foreign market quickly and with fewer financial and legal risks than when operating a foreign production facility.
Terms of Sale: Terms that define the obligations, risks, and costs of the buyer and seller in an export transaction. These terms typically include the shipping Incoterms, and the terms of payment.
TEU (Twenty-foot Equivalent Unit): This unit is based on the carrying capacity of a twenty-foot container, and is used when calculating the carrying capacity of container vessels.
Time Draft: This is a document used when an exporter extends credit to the overseas buyer. It states that payment is due by a specific time after the buyer accepts the time draft and receives the goods. By signing and writing “accepted” on the draft, the buyer is formally obligated to pay within the stated time.
Trade Agreement: Also known as trade pact, this is a wide-ranging tax, tariff, and trade treaty that often includes investment guarantees. “Free Trade Agreements” are used to lower trade barriers, including import tariffs.
Trade Barriers: Government laws, regulations, policies or practices that either protect domestic products from foreign competition or artificially stimulate exports of particular domestic products.
Trade Fair Certification Program (TFC): A U.S. Department of Commerce program that certifies international trade events so U.S. companies can know ahead of time if an event is high quality which offers business opportunities.
Trademark: A word, symbol, name, slogan, or combination of these that identifies and distinguishes the product or company. It may also serve as a sign of the product’s quality.
Trading House: A company specializing in the export and import of goods produced by other companies.
TT (Telegraphic Transfer): This is a term used to refer to electronic bank transfers of funds, often internationally. It is initiated by the “debtor” who instructs the bank to debit its account and send money to the account of a person or firm. A transfer fee is often charged by the sending bank, and in some cases by the receiving bank
These links updated: 4/23/18. This website has been funded in part by the U.S. Commercial Service. Copyright (c) All Rights Reserved by the District Export Council of Georgia. Image: shutterstock_1069133606.