International Trade Terms
Imports are valued on the basis of free-on-board. Import of goods is a measure of the total value of the goods entering the domestic arena of any nation.
Conversely, export is a measure of the value of the goods leaving the domestic arena of a nation. Export does not take into account the place, where the goods have been produced. They are usually estimated on the basis of “cost-including-freight”.
In other words, trade (export and import), is measure of the value of the services extended to or received by, the citizens of any two nations or more than two nations.
Glossary of some important international trade terms
- Ad Valorem: percentage of any tax, charge or duty that is imposed on the value of a commodity.
- Anti dumping: Dumping, is referred to as a practice when a particular commodity is sold in the foreign market for a value, which is less than the fair value. Referring to the various laws, anti dumping is the reverse of dumping.
- Accession: is the procedure followed, when a country becomes an affiliate or a member of any international agreement. Agreements may include the European Union or the GATT. It includes any international agreement.
- Balance of payments: refers to the statistical overview pertaining to international transactions. These Transaction are referred to as ownership transfer of any commodity, from the citizens of on nation to the citizens of another. The commodity should have an economic value in terms of money.
- Common External Tariff, CET or CXT: Is a common tariff, estimated on imports, which enter the union territory from nations, which do not fall within the purview of the union. It is abbreviated as CXT or CET.
- Common market: Exemplified by the European community, common market is one, which has external tariff, which is common. It also permits, mobility of labor and the same economic policies govern the member nations.
- Marks of origin: these are the indication marks seen on products, which depict the country, where the product was manufactured. As per customs norms, it is obligatory for almost all countries to provide the marks of origin.
There are many international trade terms. However, the terms given above are the ones, which are widely used with reference to international trade.