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Glossary

 

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E-Commerce

Buying and selling over the internet. 

 

Economic Risk

The business and/or competitive risk of transacting business in a place where the settlement currency is other than your own, base currency.

 

EDI or EDIFACT

Electronic Data Interchange for Administration, Commerce and Transport; from the UN-backed electronic data interchange standards body, used to create electronic versions of common business documents that will work on a global scale.

 

EMC: Export Management Company

Company that performs the functions that would be typically performed by the export department or the international sales department of manufacturers and suppliers. EMC's develop personalized services promoting their clients' products to international buyers and distributors. They solicit and transact business in the names of the producers they represent or in their own name for a commission, salary, or retainer plus commission. EMC's usually specialize either by product or by foreign market. Because of their specialization, the best EMC's know their products and the markets they serve very well and usually have well-established networks of foreign distributors already in place. This immediate access to foreign markets is one of the principal reasons for using an EMC, because establishing a productive relationship with a foreign representative may be a costly and lengthy process. 

 

Endorsement

Signature on back of negotiable instrument (i.e., bill of lading) for the purpose of transferring rights to another.

 

Engagement

The assumption of payment responsibility in respect of a letter of credit, e.g. when an Advising bank agrees to add its confirmation to a credit.

 

EPZ: Export Processing Zone

Site in a foreign country established to encourage and facilitate international trade. EPZ's include free trade zones, special economic zones, bonded warehouses, free ports, and customs zones. EPZ's have evolved from initial assembly and simple processing activities to include high-tech and science parks, finance zones, logistics centers, and even tourist resorts. 

 

ETA

Expected Time of Arrival

 

ETC: Export Trading Company

Company that acts as an independent distributor, creating transactions by linking domestic producers and foreign buyers. As opposed to representing a given manufacturer in a foreign market, the ETC determines what U.S. products are desired in a given market and then work with U.S. producers to satisfy the demand. ETC's can perform a sourcing function, searching for U.S. suppliers to fill specific foreign requests for U.S. products. 

 

eUCP

Supplement to Uniform Customs and Practice for Documentary Credits which governs electronic presentation of data under Letters of Credit.

 

Eurodollars (EUR)

U.S. dollars on deposit in any branch at any bank located outside the United States.

 

Euroyen

Japanese yen on deposit in banks outside Japan, and may be outside of Europe.

 

Evergreen

A Letter of Credit that automatically renews itself in the absence of notice of nonrenewal. A non-renewed notice must be sent by the issuing bank a certain number of days prior to the then-current expiry date (the number of days is specified in the L/C). Failure to send the non-renewal notice causes the renewal of the L/C.

 

Evergreen Clause

A provision in a letter of credit for the expiration date to extend without requiring an amendment.

 

 

Exchange Rate

The price of one currency expressed in terms of another; may be quoted spot – for delivery within two working days, or forward – for delivery at a future time.

 

Exchange Rate Quotation

The mathematical representation of the value of one currency expressed in terms of another currency.

 

Ex-Im Bank

The U.S. Export-Import Bank, an independent U.S. Government Agency which facilitates exports of U.S. goods by providing loan guarantees and insurance for repayment of bank-provided export credit.

 

Expiration Date

Last date beneficiary can present documents and be certain they will be paid if documents are in order. The last day a Letter of Credit is valid for drawings.

 

Expiry Date

Date after which a letter of credit is no longer available for payment.

 

Expiry Date (Guarantee)

The last day on which the beneficiary can present a valid claim to the bank.
 

Expiry Date (Letter of Credit)

The last day on which the seller can present documents to the advising or issuing bank.
 

Export Letter of Credit

Issued by a foreign bank on behalf of the exporter/seller, it's a Letter of Credit issued by the buyer's bank authorizing the seller to draw money up to a specified amount from the buyer's bank, provided the conditions set out in the Letter of Credit are met.

 

Export License

A document secured from a government, authorizing an exporter to export a specific quantity of a particular commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports.

 

Export Packing List

List that itemizes the exported material in each package and indicates the type of package, such as a box, crate, drum, or carton. An export packing list is considerably more detailed and informative than a standard domestic packing list. It also shows the individual net, tare, and gross weights and measurements for each package (in both U.S. and metric systems). 

 

Export Quotas

Specific restrictions or ceilings imposed by an exporting country on the value or volume of certain exports designed, for example, to protect domestic producers and consumers from temporary shortages of the goods affected or to bolster their prices in world markets. 

 

Export Subsidies

Government payments or other financially quantifiable benefits provided to domestic producers or exporters contingent on the export of their goods and services. 

 

Export Working Capital Loads

Special financing to support exports of U.S.-made products.

 

Exporter

Seller/Beneficiary if sale is under a Letter of Credit. EXW: Or, “ex-works”. The seller’s only responsibility is to make the goods available at their premises. The buyer pays for all other fees such as shipping, insurance, loading & unloading, etc. (Example Factory, Ex Mill, Ex Plantation, Ex Warehouse, etc. are interchangeable).

 

Exporter Credit Insurance

This is an insurance policy purchased by a seller to provide protection against non-payment by a buyer due to insolvency or political/economic turmoil in the buyers country.
 

EXW: Ex Works

Title and risk pass to buyer, including payment of all transportation and insurance cost from the named place where shipment is available to the buyer (seller's facility), not loaded; buyer contracts for any transportation; used for any mode of transportation.

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