Glossary of Trade Terms
T
Tariff |
A duty (or tax) levied on goods transported from one customs area to another. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country. |
Tax |
A financial charge or other levy imposed on an individual or a legal entity by a nation or sub-national entity. |
Term of exposure |
The length of time over which financing is provided. |
Term sheet |
A contractual document typically issued by a bank, to outline the terms and conditions of a financing arrangement. Trade banks often issue Terms Sheets for short-term financing backed by export credit/insurance agency cover. |
Trade agreement |
A difficulty to be overcome by the exporter in penetrating a target market. It can be physical (distance, geography, climate, poor transportation systems); political and regulatory (instability, protectionism, currency restrictions, complex documentation requirement); systemic (electrical, safety standards, etc); cultural (language, local practices, tastes and preferences); or due to corrupt and inefficient business practices. |
Trade barrier |
A wide-ranging tax, tariff, and market entry pact, which may also include investment guarantees, that deepens interdependence among trading nations. |
Trademark |
A word, logo, shape or design, or type of lettering that reflects the goodwill or customer recognition for a particular company’s product, the registration of which grants the holder exclusivity rights. |
Trading house |
A company specializing in the exporting and importing of goods produced or provided by other companies. |
Transferable credit |
A letter of credit (L/C) that is partially or fully transferred to one or more third parties referred to as “second beneficiaries.” A transferable L/C is often used in cases where the seller is acting to bring the buyer and producer of a product or service together, or where some component of the final product is produced by a third party. |