International Trade Finance Terms from TEFO - M

M

Macroeconomics

The study of large scale economic factors affecting an economy as a whole.

Mail Entry

A means of shipping and entering goods into a Customs Territory through the postal system.

Mala Fides

In bad faith. (A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not.)

Manifest

1. A document listing and describing the cargo contents of a carrier, container or warehouse.
2. Evident to the senses, especially to the sight, obvious to the understanding, evident to the mind, open, clear, visible, unmistakable, indubitable, indisputable, self-evident.

Manufacturer's Identification Number (MID)

(USA) An identification number used by U. S. Customs in its electronic data processing system for each manufacturer whose goods are shipped to the United States.

Maquiladora

A Mexican factory, usually located in a zone close to the US border, which has special privileges from the Mexican government to produce goods for the US market. Much of the work performed in these factories is the assembly of imported components.

Margin

1. In commercial terms the difference between the cost of goods sold and the total net sales price.
2. The purchase of a stock or a commodity with payment of only part of the purchase price in cash (called the margin) and the balance by loan (usually made by the broker.)

Marginal Cost

The increase in the total costs of a producer of producing one more unit of output, or the decrease in producing one less unit of output.

Maritime

Business pertaining to commerce or navigation by sea.

Market Access

The openness of a national market to foreign products and services.

Market Disruption

A situation where a surge of imports of a certain product causes a sharp decline in the domestic sales of that product and creates a hardship for domestic producers.

Market Economy

An economic system where resources are allocated and production of goods determined by market forces rather than by government decree.

Market Price

The price established in the market where buyers and sellers compete with each other to negotiate the best prices and terms.

Marking: Country of Origin

The physical markings on a product that indicate the country of origin where the article was produced. (With very few exceptions, the U.S. requires every imported article to be so marked.)

Marks

Identification placed on the outer surface of shipping containers or packages. At one time it consisted of pictures, letters and numbers. With the advent of computers, pictures are no longer used. Instructions on the packages for their proper handling, such as "This side up" may also be considered part of the marks. Also the weight and measurements of the packages.

Matador Bond

Bond issued on the Spanish market by an obligor who is not domiciled in Spain.

Mate's Receipt

A declaration issued by an officer of a vessel stating that certain goods have been received on board his vessel.

Material Contract Terms

Terms in a purchase/sale contract that are considered essential; they describe the goods, fix the price, fix the quantity, and set the delivery date.

Measurement Cargo

A cargo on which the transportation charge is assessed on the basis of size or dimensions, instead of upon the gross weight.

Medium of Exchange

Anything which is widely accepted in payment for goods and services and in settlement of debts. Its acceptability is based upon the fact that it can provide a common basis of measurement of the value of things.

Memorandum Bill of Lading

Sometimes the duplicate (non-original) copies of bills of lading are marked "Memorandum" and are intended for informational purposes only.

Memorandum of Understanding

An informal record, document, or instrument that serves as the basis of a future contract.

Merchant's Credit

A form of commercial letter of credit which the buyer, with no commitment on the part of a bank, sends to the seller via a bank in the district of the buyer. The seller presents his bill of sale and evidence of shipment in order to obtain payment from the buyer.

Microbridge

An intermodal movement of cargo which involves a vessel leg to a port and then a movement via another transportation mode, truck or rail, to an inland point where the movement terminates. In the reverse direction, the cargo is picked up at a point inland for transport via truck or rail to a port where a vessel loads the cargo and transports it to an overseas port. The land portion of the two intermodal moves described is the "microbridge".

Minibridge

An intermodal movement of cargo involving a vessel leg from one country to a port in another country, and then a movement via truck or rail to another port in that country, and there the voyage is terminated. The traversing of the land in the second country from discharge port to destination port is the "minibridge" portion of the movement. There could be a similar but opposite combined "minibridge" movement in the other direction.

Minimum Charge

The lowest amount that will be charged regardless of the amount of service rendered.

MOD Act

(USA) Customs Modernization and Informed Compliance Act: Passage 1992, HR 3935.

Money

Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange.

Money Creation

The increase in money supply by the central or commercial banks.

Money Market

The market for short term financial instruments (i.e. commercial paper, treasury bills, discount notes).

Money Market Operations

Creating, investing in, buying and selling short term obligations in the market for short term debt instruments.

Money Supply

The amount of cash and bank deposits available in an economy.

Moor

To secure a vessel to an anchor, buoy, or pier.

Moorage

Charges assessed for mooring a vessel to a pier or wharf.

Most Favored Nation

A trade policy commitment on the part of one nation to extend to another nation tariff rates as low as applies to any other "most favored nations," and to treat imports from that nation without discrimination.

Motor Carrier's Terminal

The place where a motor carrier receives freight, delivers freight to other motor carriers, temporarily stores freight, loads trucks and containers, and generally does all the things which a carrier has to do regarding freight handling and servicing of its trucks and equipment.

Multilateral Agreement

An agreement among more than two persons, firms, or governments.

Multimodal Transport

Transportation which includes at least two modes of transport, such as shipping by rail and by sea.

Multinational Corporation

A corporation having subsidiaries in more than one country.