International Trade Finance Terms from TEFO - T

T

Tare Weight

The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. (In other words, the weight of the packing.)

Tariff

1. A comprehensive list or "schedule" of merchandise with applicable duty rates to be paid or charged for each listed article; together with governing rules and regulations.(A "customs" Tariff.)
2. A schedule of rates and charges applied by a business, especially a common carrier, together with a description of the services offered and the rules and regulations applicable.

Tariff Anomaly

In a customs tariff, a tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product.

Tariff Escalation

In a customs tariff, a situation in which duties on raw materials are nonexistent or very low; duties on semi-processed goods are moderate; and duties on manufactured goods are relatively high.

Tariff Rate Quotas

(Customs) Application of a higher duty rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate.

Tariff Schedule

(Customs) A comprehensive list of the goods which may be imported into a country, and the import duties applicable to each product.

Tariff War

(Customs) When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner.

Tax Haven

A nation offering low tax rates and other incentives for individuals and businesses of other countries to locate there.

Temporary Importation (Admission Temporaire)

A customs procedure under which certain goods can be brought into a customs territory temporarily, conditionally relieved from the payment of import duties and taxes; such goods must be imported for a permitted purpose and must be intended for exportation within the permitted period.

Tender

1. A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers to and from ship to shore.
2. An offer of money. An offer to supply something. An offer to present something.
3. To satisfy a claim, an unconditional offer to perform coupled with a manifest ability to carry out the offer.
4. A car connected behind a steam railroad locomotive to carry coal and water. (Almost obsolete).

Tenor

The term fixed for the payment of a draft or debt.

Terminal

An facility which is used by a rail, ship, air, or truck line as a place for receiving and delivering cargo; loading; unloading; transferring; temporarily storing; recoopering; and similarly handling freight; and repairing and servicing equipment..

Terminal Charge

A charge made for services performed at transportation terminals.

Terms of Trade

The ratio of the index of export prices to the index of import prices. (Note the difference from "Trade Terms"

Third World Countries

Developing countries, especially in Asia, Africa, and Latin America.

Through Bill of Lading

A single bill of lading covering receipt of cargo at a point of origin for delivery to an ultimate consignee, usually involving multiple carriers and multiple modes of transport.

Through Rate

A shipping rate applicable to transportation from point of origin to destination where multiple carriers and multiple modes of transport may be involved.

Tied Loan

A loan made by a government that requires a foreign borrower to spend the proceeds in the lender's country.

To Order

A term on a financial instrument or title document indicating that it is negotiable and transferable.

Tracer

A request upon a transportation line to trace a shipment for the purpose of locating its whereabouts, expediting its movement or establishing delivery.

Tracking

A carrier's system of recording movements of shipments from origin to destination.

Trade Acceptance

A draft drawn by the seller of goods upon the buyer who agrees to pay by signing "accepted" on the draft.

Trade Deficit

A nation's excess of imports over exports over a period of time.

Trade Name

The name under which an organization conducts business, or by which the business or its goods and services are identified.

Trade Promotion

Encouragement of the progress, growth, or acceptance of trade. (Note: Some would define it solely as the encouragement of exports.)`

Trade Surplus

A nation's excess of exports over imports over a period of time.

Trade Terms

The setting of responsibilities of the buyer and seller in a sale including sale price, the payment of costs such as shipping, insurance, and customs; the arranging of the performance of these activities; and the determination of when title passes. (Note the difference from "Terms of Trade")

Trailer

A vehicle without motor power designed to be drawn by another vehicle.

Tramp Line

A transportation line operating tramp steamers in waterborne commerce.

Tramp Steamer

A vessel which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained and charges a negotiated amount of freight. Usually they transport breakbulk or bulk cargo.

Trans-Ship

1. To transfer goods from one transportation line to another, or from one ship to another, or from one airline to another in order to complete a delivery .
2. To ship to one country, and then to re-export to another. (Sometimes the second exporting country may be incorrectly represented as the country of origin.)

Transaction Value

(USA) The price actually paid or payable for merchandise imported.

Transfer Of Technology

The movement of modern or scientific methods of production or distribution from one enterprise or country to another.

Transfers (mail, wire, cable)

A transfer is the remittance of a sum of money to a party in another place. This may be accomplished by mailing cash or drafts or using the services of a commercial bank or a wire transfer company for a fee.

Transit Zone

An area in a port of entry in a coastal country that is established as a storage and distribution center for the convenience of a neighboring country which lacks adequate port facilities or access to the sea.

Transmittal Letter

In international commerce, a letter from the shipper or their agent transmitting documents relative to a shipment. Usually there will be included a list of the documents enclosed and details covering the transportation of the shipment such as the name of the carrier, date of departure etc..

Transparency

The extent to which laws, regulations, agreements, and practices affecting international trade are open, clear, measurable, and verifiable.

Transport Documents

All types of documents evidencing acceptance, receipt and shipment of goods.

Transportation and Exportation Entry

(USA) Customs entry used when merchandise arrives in the U.S. and is moved in bond to another U.S. port for re-export to a foreign country.

Traveler

One who passes from place to place, whether for pleasure, instruction, business or health.

Traveler's Checks

A check designed for business travelers and tourists, issued by a financial institution of sufficient importance that it will be readily accepted or cashed by businesses and banks. For safety it is often designed to be countersigned twice by the traveler in order to be valid, once at issuance and once upon being cashed.

Triangular Trade

Trade between three countries which creates a more favorable flow of trade for each than would exist between only two of them dealing directly with each other.

Tropical Products

Agricultural goods grown in tropical zones ...coffee, tea, spices, bananas, and tropical hardwoods etc,

Trust Receipt

A written declaration by a customer to a bank that ownership in goods released by the bank is retained by the bank, and that the client has received the goods in trust only. Such a trust receipt may be is given by the customer to the bank to induce the bank to issue a letter of indemnity to a carrier to release a shipment.

Turnkey

A term for a method of construction whereby the contractor assumes total responsibility from design through completion of the product and release to the client in a stage so complete that the buyer need only to turn the key to open the door and walk into a facility that is ready to operate.

Turnkey Contract

An agreement under which a contractor agrees to complete a product so that it is ready for use when delivered to the other contracting party.

Two-tier Market

An exchange rate regime employed in some countries with managed currency exchange rates where the more favorable rates are maintained for selected activities..

Tying Arrangement

A condition that a seller imposes on a buyer, requiring that if the buyer desires to purchase one product (tying product), the buyer must also agree to purchase another product (tied product), which the buyer may or may not want. The laws of some countries prohibit certain tying arrangements, for example in the U.S. the Clayton and the Sherman anti-trust Acts.