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See Abu Dhabi Fund for Arab Economic Development  

AFTA (ASEAN Free Trade Agreement)   
See under Association of South East Asian Nations.  

See under Alliance for Mutual Growth.  

See under Asia-Pacific Economic Cooperation.  

See under Association of South East Asian Nations.  

Any Safe World Port  

See under Andean Trade Preference Act.  

Absorption is investment and consumption purchases by households, businesses, and governments, both domestic and imported. When absorption exceeds production, the excess is the country's current account deficit.  

Abu Dhabi Fund for Arab Economic Development (ADFAED)   
ADFAED promotes economic and social development in African, Arab, and Asian developing countries. The Fund, which was created in July 1971, began operations in September 1974; headquarters are in Abu Dhabi, United Arab Emirates.  

This term has several related meanings:  
1. A time draft (or bill of exchange) which the drawee has accepted and is unconditionally obligated to pay at maturity. The draft must be presented first for acceptance - the drawee becomes the "acceptor" and the date and place of payment must be written on the face of the draft.  
2. The drawee's act in receiving a draft and thus entering into the obligation to pay its value at maturity.  
3. Any agreement to purchase goods under specified terms. An agreement to purchase goods at a stated price and under stated terms.  

Accession is the process by which a country becomes a member of an international agreement, such as the General Agreement on Tariffs and Trade (GATT) or the European Community. Accession to the GATT involves negotiations to determine the specific obligations a nonmember country must undertake before it will be entitled to full GATT membership benefits.  

See International Agreements.  

Account Party.  
The buyer under a letter of credit. The party ultimately responsible for reimbursing the issuing bank for all payments extended on its behalf.  

A form used by a vendor to advise a purchaser that his/her order has been received, and usually to imply that it has been accepted.  

Subject to national and local laws and regulations a company may acquire and hold the shares of stock and other securities of one or more other corporations and businesses. Acquired companies may continue operating as independent organizations with their own names and personnel.  

Act of God  
A natural event, not preventable by any human agency, such as flood, storms, or lightning. Forces of nature that a carrier has no control over, and therefore cannot be held accountable.   

Ad valorem.  
According to value. See Duty.   

Clause in a countertrade contract prescribing that a primary supplier's countertrade obligation can be  
fulfilled only by incremental exports above achieved trade levels to traditional markets, or by exports to new markets.   

Administrative Exception Notes.   
CoCom controls exports at three levels, depending on the item and the proposed destination. At the lowest level, "national discretion" (also called "administrative exception"), a member nation may approve the export on its own, but CoCom must be notified after the fact. Administrative exception notes are appended to list categories to describe commodities that can be approved solely at national discretion.  

Administrative Notes.   
See Administrative Exception Notes.  

Administrative Protective Order.   
An Administrative Protective Order, APO, is used to protect proprietary data that is obtained during an administrative proceeding. Within Commerce, APO is most frequently used in connection with Antidumping and Countervailing Duty investigations to prohibit opposing counsel from releasing data. The term is also applied in connection with civil enforcement of export control laws to protect against the disclosure of sensitive national security information and information provided by companies being investigated for violations.   

Administrative Review.   
Each year, beginning on the anniversary of the date of publication of an antidumping duty order, the Commerce Department's International Trade Administration is required to review and determine the amount of any antidumping duty, if an interested party requests such a review. The results of this review are published in the Federal Register noting any antidumping duty to be assessed, estimated duty to be deposited, or suspended investigation to be resumed.  
See: Tariff Act of 1930.  

Ad Valorem.  
Literally: according to value. Any charge, tax, or duty that is applied as a percentage of value.   

Ad Valorem Equivalent.   
AVE is the rate of duty which would have been required on dutiable imports under that item, if the United States customs value of such imports were based on the United States port of entry value.   

Advance against documents.   
A loan on the security of the documents covering the shipments.    

Advance Freight  
Partial payment of the bill of lading freight in advance; in other respects is the same as guaranteed freight.   
Advanced Technology Products.  
About 500 of some 22,000 commodity classification codes used in reporting U.S. merchandise trade are identified as "advanced technology" codes and they meet the following criteria:   
- The code contains products whose technology is from a recognized high technology field (e.g., biotechnology);   
- These products represent leading edge technology in that field; and   
- Such products constitute a significant part of all items covered in the selected classification code.   

Advising bank.  
A bank, operating in theexporter's country, that handles letters of credit for a foreign bank by notifying the exporter that the credit has been opened in his or her favor. The advising bank fully informs the exporter of the conditions of the letter of credit without necessarily bearing responsibility for payment.   

Advisory capacity.  
A term indicating that a shipper's agent or representative is not empowered to make definitive decisions or adjustment without approval of the group or individual represented. See for comparison purpose Without reserve.   

Advisory Committee on Export Policy.   
The Advisory Committee on Export Policy, ACEP, is an interagency dispute resolution body that operates at the Assistant Secretary level. ACEP is chaired by Commerce; membership includes the Departments of Defense, Energy, and State, the Arms Control and Disarmament Agency, and the intelligence community. Disputes not resolved by the ACEP must be addressed by the cabinet-level Export Administration Review Board within specific timeframes set forth under National Security Directive 53.   

Advisory Committee on Trade Policy and Negotiations.   
The ACTPN is a group (membership of 45; two-year terms) appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements. The 1974 Trade Act requires the ACTPN's establishment and broad representation of key economic sectors affected by trade. Below the ACTPN are seven policy committees: SPAC (Services Policy Advisory Committee), INPAC (Investment), IGPAC (Intergovernmental), IPAC (Industry), APAC (Agriculture), LAC (Labor), and DPAC (Defense). Below the policy committees are sectoral, technical, and functional advisory committees.     

Advisory Notes.  
See Administrative Exception Notes.   

Advocacy Center.  
The Advocacy Center, established in November 1993, facilitates high-level U.S. official advocacy to assist U.S. firms competing for major projects and procurements worldwide. The Center is directed by the Trade Promotion Coordinating Committee; offices are located in the Commerce Department, Washington, D.C. Telephone: 202-482-3896; fax: 202-482-3508.    
See: Trade Promotion Coordinating Committee.   

An affiliate is a business enterprise located in one country which is directly or indirectly owned or controlled by a person of another country to the extent of 10 percent or more of its voting securities for an incorporated business enterprise or an equivalent interest for an unincorporated business enterprise, including a branch. For outward investment, the affiliate is referred to as a "foreign affiliate"; for inward investment, it is referred to as a "U.S. affiliate."

Affiliated Foreign Group
An affiliated foreign group means (a) the foreign parent, (b) any foreign person, proceeding up the foreign parent's ownership chain, which owns more than 50 percent of the person below it up to and including that person which is not owned more than 50 percent by another foreign person, and (c) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 percent by the person above it.    

Africa Enterprise Fund.   
The AEF, operating under the International Finance Corporation, began operations in late 1989. The Fund assists small and medium-size enterprises in sub-Saharan Africa, supports investment projects, and promotes development of private enterprises in Africa to stimulate economic growth and productive employment.    

African, Caribbean, and Pacific Countries.  
Abbreviated ACP, these are developing countries which are designated beneficiaries under the Lom‚ Convention.   
See Lome‚ Convention.   

African Development Bank.   
AFDB (French: Banque Africaine de Developpement) provides financing through direct loans to African member states to cover the foreign exchange costs incurred in Bank-approved development projects in those countries. Fifty-one African countries are members and ordinarily receive loans. The Republic of South Africa is the only African country not a member. The African Development Bank comprises the AfDB as well as the African Development Fund and the Nigeria Trust Fund. The Bank was established in August 1963 (began operations in July 1966), with headquarters in Abidjan, Cote d'Ivoire.     
See African Development Foundation, African Development Fund, African Export-Import Bank, Development Fund for Africa, Nigeria Trust Fund.   

African Development Foundation.   
ADF provides economic assistance to groups and institutions involved in development projects at the local level. The foundation's assistance, designed as a complement to the U.S. foreign aid program, is awarded only to native African organizations and individuals. ADF is a U.S. public corporation which was established by Congress in 1980 (became operational in 1984); headquarters are in Washington, D.C.   
See African Development Fund, Development Fund for Africa.     

African Development Fund.   
The ADF (or AfDF) (French: Fonds Africain de Developpement, FAD) is an affiliate of the African Development Bank (AfDB) which provides interest-free loans to African countries for projects which promote economic and social development and improve international trade among members of the AfDB. The Fund was established in July 1972 and commenced operations in 1973.   
See African Development Bank.   

African Export-Import Bank.   
AFREXIMBANK offers short-term export trade financing to African exporters aimed at enhancing intra-African trade and Africa's exports. Agreement to create the bank was basedon a January 1993 agreement reached in Cairo, Egypt among African governments, central banks, regional and sub-regional financial institutions and other organizations. Bank headquarters are located in Cairo, Egypt.   

African Management Services Company.   
AMSCO provides temporary managers and management training to support the development of African companies. AMSCO works through a network of representatives in Africa; its clients include privately owned companies, public sector companies, and subsidiaries of international companies. The company was established in 1989 by the International Finance Corporation; headquarters are in Amsterdam, Netherlands. AMSCO is funded by the United Nations Development Program, the International Finance Corporation, the African Development Fund, the African Development Bank, development institutions in several European countries, and private sector investors.  

African Regional Organization for Standardization.   
ARSO (French: Organisation Regionale Africaine de Normalisation, ORAN) promotes and coordinates standardization, quality control, certification, and metrology practices in Africa. The Organization has been developing African Regional Standards (ARS) in nine areas: (a) general standards, (b) agricultural and food products, (c) building and civil engineering, (d) mechanical engineering and metallurgy, (e) chemistry and chemical engineering, (f) electrotechnology, (g) textiles, (h) transport and communications, and (i) environmental products and pollution control. ARSO is also seeking adoption of a regional certification marking scheme and establisment of a laboratory accreditation program. ARSO was established in 1977; its headquarters are in Nairobi, Kenya. ARSO membership is restricted to official representatives of member governments.    

Africa Project Development Facility.   
The APDF seeks to accelerate development of productive enterprises sponsored by private African entrepreneurs as a means of generating self-sustained economic growth and productive employment in Sub-Saharan Africa. The facility provides advisory services to private African entrepreneurs in preparing viable projects, works with the entrepreneurs to   
secure financing, and helps them obtain technical and managerial assistance to start their projects. APDF was established in 1986 as a United Nations Development Programme project -- with the International Finance Corporation   
as executing agency and the African Development Bank as regional sponsor. The facility maintains offices in Nairobi (Kenya), Harare (Zimbabwe), and Abidjan (Côte d'Ivoire).    

After Sight.  
When a draft bears this phrase, the time begins to run from its acceptance date.    

Agence de Coopération Culturelle et Technique.  
The ACCT (English: Agency for Cultural and Technical Cooperation) was created in 1970 to promote cultural and technical cooperation among French-speaking countries. Members include: Belgium, Benin, Burkina. Burundi, Canada, Central African Republic, Chad, Comoros, Congo, Djibouti, Dominica, France, Gabon, Guinea, Haiti, Côte d'Ivoire, Lebanon, Luxembourg, Mali, Mauritius, Monaco, Niger, Rwanda, Senegal, Seychelles, Togo, Tunisia, Vanuatu, Vietnam, and Zaire. ACCT also includes seven associate members: Cameroon, Egypt, Guinea-Bissau, Laos, Mauritania, Morocco, and Saint Lucia.    
Agency headquarters are in Paris, France.   

Agency for Cultural and Technical Cooperation.  
See Agence de Cooperation Culterelle et Technique.   

Agency for International Development.  
AID was created in 1961 to administer foreign economic assistance programs of the U.S. Government. AID has field missions and representatives in approximately 70 developing countries in Africa, Latin America, the Caribbean, and the Near East.   

See Foreign sales agent.   

Agent/Distributor Service.   
The Agent/Distributor Service, ADS, is an Interna ti onal Trade Administration (ITA) fee-based service which locates foreign import agents and distributors. ADS provides a custom search overseas for interested and qualified foreign representatives on behalf of a U.S. exporter. Officers abroad conduct the search and prepare a report identifying up to six foreign prospects that have examined the U.S. firm's product literature and have expressed interest in representing the U.S. firm's products.   

Premium received by a broker from an exporter for assuming the exporter's countertrade obligations. The commission paid to the broker represents a disagio for the exporter.    

Agreement by one government to accept the accreditation of an ambassador from another government.   

Agriculture Information System.   
AGRIS, coordinated under the auspices of the Food and Agricultural Organization, is an international cooperative bibliographic database on agricultural research, production, science, and technology. Participating countries contribute information for inclusion in AGRIS.   
See: National Agricultural Library.   

Agricultural Marketing Service.   
Among its activities, the Agriculture Department's AMS is available to foreign buyers to assure that any product shipped overseas meets contract specifications. The service is operated on a user-fee basis. AMS works with the buyers to write a specification that can be certified. The requirements for USDA certification can be made apart of the purchase contract.   

Agricultural Officers.   
Agricultural officers are embassy officials who are responsible for addressing agricultural trade policy issues and preparing reports on agricultural commodities such as rice, wheat, and dairy products. These officers promote U.S. exports by providing market information, one-on-one consultations, and facilitative contacts with foreign buyers and by sponsoring trade events, such as shows, trade missions, and seminars.    

Agricultural OnLine Access.   
See National Agricultural Library.   

Agricultural Trade and Marketing Information Center.  
See National Agricultural Library.   

Agricultural Trade Offices.   
See Foreign Agricultural Service.   

A short written summary of oral remarks made to a foreign government representative and left with that individual.   

Airbus Industries Group.   
AIG is a supernational management organization responsible for design, development, manufacture, marketing, sales and support of selected commercial aircraft. Member countries are France, Germany, Spain, and the United Kingdom. Airbus Industrie, G.I.E. is a consortium of four West European producers -- Aérospatiale (France), Deutsche Aerospace Airbus GmbH (Germany), British Aerospace Airbus Ltd. (United Kingdom), and Construcciones Aeron uticas S.A. (Spain) -- established as a groupement d'intérêt économique (G.I.E.) under French law.   

Air waybill (AWB).  
A bill of lading that covers both domestic and international flights trasnporting goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. See also Inland bill of lading, Ocean bill of lading, and Through bill of lading.   

Aktiengesellschaft (AG).   
AG (German, meaning: "stock company") is a corporation with a separate legal personality which must have at least five partners. The firm name usually reflects the activities of the company and must include "AG."     

All Risk Clause.  
An insurance provision which provides additional coverage to an Open Cargo Policy, usually for an additional premium. Contrary to its name, the clause does not protect against all risks. The more common perils it does cover are theft, pilferage, non-delivery, fresh water damage, contact with other cargo, breakage, and leakage. Inherent vice, loss of market, and losses caused by delay are not covered.

All Risks Coverage

All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots. See also Marine Cargo Insurance.

Alliance for Mutual Growth (AMG)  
The U.S.-ASEA N Alliance for Mutual Growth (AMG) was launched in 1993. The AMG seeks to tie commercial initiatives to U.S. policy priorities in the region, taking a broad view of trade promotion focusing on establishing the long-term relationships and presence necessary to succeed in ASEAN.   

A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or lighter within reach of the transport ship's tackle so that they can be loaded aboard the ship. Goods are delivered to the port of embarkation, but without loading fees.   

American Business Center.  
The ABC program provides U.S. companies which are exploring or establishing commercial opportunities in the Newly Independent States of the former Soviet Union with business services such as telephone and fax, temporary office space, market information, and assistance in making business contacts. An ABC operates in Bratislava, Slovakia under the direction of the Commerce Department's International Trade Administration in cooperation with the Agency for International Development. Additional centers are being opened in Russia, the Ukraine, Kazakhstan, Uzbekistan.   

American Business Initiative.   
The ABI, or American Business and Private Sector Development Initiative for Eastern Europe, emphasizes the export of American telecommunciations, energy, environment, housing, and agriculture products and services to Eastern European countries.   

American depositary receipts (ADRs).   
ADRs are negotiable receipts for the securities of a foreign company which are kept in the vaults of an American bank, allowing Americans to trade the foreign securities in the United States while accruing any dividends and capital gains.    

American Institute in Taiwan.   
The AIT is a non-profit corporation that represents U.S. commercial, cultural, and other interests in Taiwan in lieu of an embassy. In 1979, the United States terminated formal diplomatic relations with Taiwan when it recognized the People's Republic of China as the sole legal government of China. AIT was authorized to continue commercial, cultural and other relations between the United States and Taiwan. AIT headquarters are located in Arlington, Virginia; constituent offices are in Taipei and Kaohsiung, Taiwan.   
See Coordination Council for North American Affairs.   

American Traders Index.   
The American Traders Index, ATI, is the U.S. and Foreign Commercial Service headquarters compilation of individual US&FCS domestic client files, for use by overseas posts to generate mailing lists.

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