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Business gateway - Business terms
Category: Business and Law > Business
Date & country: 21/01/2010, UK
Words: 762


Carnet
Customs document which allows you to carry or send goods temporarily into certain countries for display or demonstration purposes without paying duty or posting a bond.

Cash in advance (CIA)
Full payment for exported goods before shipment is made.

Cash with order (CWO)
The buyer pays for goods when ordering. The transaction is binding on both supplier and customer.

Cashflow
The money coming into your business and the money going out. If demand for your products or services is seasonal, you must predict your cashflow to make sure you have an overdraft or loan in place to cover periods when your outgoings (eg wages) exceed your income.

Caveat emptor
Buyer beware. In contract law it is generally up to the buyer to find out if what they are buying is what they want. Consumer regulations require certain information to be disclosed to buyers and insurance contracts are covered by the uberrima fides (utmost good faith) - but many types of business contracts are covered by the caveat emptor rule.

Central processing unit (CPU)
The electronic chip at the heart of your computer.

Certificate of inspection
Document certifying that certain types of goods (such as perishable items) were in good condition before shipment.

Certificate of insurance
Shows insurance cover has been arranged for goods being transported. It should detail the degree of cover and list the policy number and all other relevant details.

Certificate of manufacture
Statement (often legalised by a notary) in which a producer of goods certifies that manufacture has been completed and the goods can be bought.

Certificate of origin (C-O)
Statement on the origin of goods. You may need one if you're exporting to a number of countries. They're available from your chamber of commerce for goods of European (EU) origin.

Certification
The process of issuing the 'certificate' which is required to be produced at time of Customs clearance as evidence that controlled fresh fruit and vegetable produce has been inspected by a competent authority and found to comply with European Community (EC) standards for quality, packaging and labelling.

CHAPS
Clearing house automated payments system -An electronic system allowing the payment to go from the paying bank to the receiving bank on the same day.

CHIEF
Customs Handling of Import and Export Freight -HM Revenue & Customs (HMRC) computerised system for processing import and export declarations.

CIM-TIEx
Convention International Merchandises Chemins de Fer -International rail carriage receipt. This document confirms that the rail carrier has received the goods and that a contract of carriage exists between trader and carrier.

CITES
Convention on International Trade in Endangered Species -Regulatory body which oversees the international movement and trade of endangered species.

Claim
Injury or loss to a claimant against the insured arising so as to cause liability under an arrangement policy.

Clear-clearance
Goods are cleared when HM Revenue & Customs (HMRC) have accepted a declaration for them and formally released them for import or export.

Client-server
A network that has a powerful central computer - the server or file server, which acts as a data store and controls resources that can be accessed by a string of desktop PCs or workstations commonly referred to as clients.

Climate change levy (CCL)
The climate change levy is a tax on energy used by businesses. The levy is charged on electricity, natural gas, liquefied petroleum gas and several forms of coal and coke.

CNCD
Combined Consignment Note and Customs Declaration -A single document which serves as both a Customs declaration and a consignment note. The CNCD is used for traffic to and from the Channel Islands.

Collateral contracts
Secondary or minor contracts that support a main contract. Usually a collateral contract will be created where a promise is made or guarantee given by one party to persuade the other party to enter into the main contract.

COMAH
Control of Major Accident Hazards Regulations 1999 -COMAH applies to industrial sites using or storing dangerous substances which, if a major accident occurs, have the potential to cause harm to both people and the environment.

Combined Heat and Power (CHP)
CHP installations generate power (in the form of electricity) and heat (usually in the form of steam or hot water).

Combined Nomenclature (CN)
The European Union (EU) system for classifying and defining goods. It is based on the Harmonised System (HS) and is laid out in the Tariff.

Comfort letters
Documents issued to back up an agreement but which do not have any contractual standing. Often issued by a parent or associate company to state that the group will back up the position of a small company in order to induce another party to trade with it.

Commercial agent
Person or organisation appointed by exporter to sell goods on their behalf in return for commission.

Commercial invoice
Bill listing the goods and prices shipped by an exporter.

Committed facilities
Agreements between lenders and borrowers to provide funds up to a specific amount at a specific interest rate for a specific period. Unlike uncommitted facilities, like overdrafts, they can't be removed on demand by the lender.

Commodity code
The code that identifies the description of individual goods or items in the Tariff. The full code is either 10 or 14 digits long, but for many purposes only the first four or eight digits are used. Also referred to as Combined Nomenclature (CN) code.

Common Agricultural Policy (CAP)
The set of legislation and practices jointly adopted by the nations of the European Union (EU) in order to provide a common, unified policy framework for agriculture.

Common stock
The storage or mixture of goods which have been imported under a relief eg end-use relief or inward processing relief (IPR) with other goods that share the same commodity code to eight digits and the same technical and physical characteristics.

Common transit (CT)
Used to describe community transit (CT).

Community Customs Code (CCC)
The basic Customs rules applying throughout the European Union (EU). The Code was established by Council Regulation (EEC) No. 2913/92. This regulation has been amended several times since it was passed, but it remains the basis of the EU Customs system. Another regulation, Commission Regulation (EEC) No. 2454/93, sets out provisions for the impleme...

Community Interest Company (CIC)
A new kind of limited liability company designed for social enterprises, or organisations that operate for the benefit of the community and not solely for private profit. CICs are registered with Companies House in the same way as a normal limited company, but they must also be approved by an independent regulator. The regulator will apply a 'commu...

Community systems provider (CSP)
A company or organisation providing a system that supports a network of trade users and provides human computer interface (HCI) usually within a seaport or airport.

Community transit (CT)
A documentary system of controlling the movement of certain goods across the territory of the European Union (EU).

Company seal
An embossing press used to indicate the official signature of a company when accompanied by the signatures of two officers of the company. Since 1989 it has been possible for a company to indicate its agreement by two signatures - those of the directors or secretary - accompanied by a formal declaration without use of the seal. However, some compan...

Company secretary
Appointed by the director/s. Responsible for ensuring that the legal obligations of the company are met. In a public company they must be suitably qualified so will usually be a solicitor or an accountant. They can be a director and their general responsibilities are set by the directors though they have specific responsibilities laid down in legis...

Company share option plan (CSOP)
Company policy giving employees the right to buy a certain number of company shares at a fixed price at some point in the future.

Compensating products
All products obtained from inward processing relief (IPR) processing operations.

Compensatory interest
Interest charged by HM Revenue & Customs (HMRC) when inward processing relief (IPR) suspension goods are diverted to free circulation.

COMPSHP
Contracted out money purchase stakeholder pension scheme -An occupational pension scheme that operates on the same basis as a COMP but with stakeholder status.

Conditions
Major terms in the contract. Conditions form the basis of the contract and if one of them fails or is broken the contract is breached. Conditions contrast with warranties - the other type of contract term - which are less important if broken.

Confidentiality agreement
An agreement which is made during negotiations for a larger contract and which covers confidential information belonging to the parties. During negotiations the parties may need to divulge information about their operations to each other and the confidentiality agreement forms a binding contract not to pass on that information whether or not the ac...

Confirmed letter of credit
Letter of credit issued by an overseas bank but also confirmed by a UK bank. Under these circumstances you'll be paid by the UK bank even if your buyer or the other bank defaults, providing the terms of the letter are met fully.

Consensus ad idem
Agreement on an idea. All parties to a contract must be in agreement on the essential matters to form a binding contract. If it is subsequently discovered that the parties were thinking different things, then there is no consensus and the contract is void.

Consideration
In a contract each side must give some consideration to the other. Often referred to as the quid pro quo, which is Latin for 'something for something.' Usually the consideration is the price paid by one party and the goods supplied by the other. But it can be anything of value given by one party to the other and can even be negative.

Consignee
Duty suspension - the person to whom duty suspended goods are consigned and who accounts for those goods in the member state of destination. This may be: a warehouse keeper who is approved to store the goods in duty suspension, a registered trader who accounts for duty on arrival or a non-registered trader who must have accounted for the duty to hi...

Consignment
When goods are exported subject to consignment, the exporter only receives payment on completed sales. Any unsold items may be returned to the exporter, usually at their expense. This is a high-risk method of payment for an exporter. Also known as 'on consignment' or 'consignment stock'.

Consignment record
The record of an import or export consignment held on a computer inventory system.

Consignor
Duty suspension - the authorised person from whose premises goods are dispatched in duty suspension.

Consolidation
A procedure whereby a number of small consignments are loaded together to form a single, larger consignment. This must be carried out as part of a contract to transport the goods.

Consolidator
Company issuing transport documents for the carriage of cargo by sea, air, road and rail where consignments have been consolidated.

Contact management software
Software that compiles all of your information on contact names, dates, places and times, and how they relate to staff, customers, meetings, deliveries and sales in an accessible and practical way.

Containerised-containerisation
The packing of goods for transport in sealed containers.

Contaminated land
Contaminated land is land that contains substances (either in, on or under the land), which could cause significant harm to people, animals, vegetation, man-made property or the environment. Contaminated land is also land which is or is likely to cause the pollution of controlled waters.

Content management system (CMS)
A system used to manage the content of a website or intranet. Typically a CMS allows staff to amend and add information and content to a website using a set of templates without the need for specialist knowledge of HTML or other web-authoring software.

Control hierarchy
The control hierarchy sets out the order in which you should control risks, specifically hazardous substances.

Controlled waste
Controlled waste is household, commercial or industrial waste. It may be solid or liquid, scrap metal or a scrap car. It does not have to be hazardous or toxic to be controlled waste.

Controlled waters
Controlled waters are the UK's natural waters. These are rivers and streams, lakes and lochs, estuaries, coastal waters and groundwaters.

Convertible currency
A currency that can be bought and sold for other currencies at will.

Convertibles
Debt lending which can be converted into equity under certain circumstances.

Conveyance
A deed that conveys property rights.

Cookie
A file downloaded from a web server to the PC of a visitor to a website. This can be retrieved by the server when the website is subsequently revisited. The file contains details on the user's preferences and information on previous visits, all of which can be used to personalise the content for returning visitors.

CORGI
Confederation of Registered Gas Installers -Only CORGI registered organisations are allowed to install, inspect and maintain natural gas appliances.

Corporation tax (CT)
A tax paid by companies on profits and termed gains.

Correspondent bank
Bank that handles in its own country the business of a foreign bank.

COSHH
Control of Substances Hazardous to Health Regulations 2002 -COSHH requires businesses to take steps to control the risk of hazardous substances to employees.

Cost and freight (CFR)
An Incoterm, where the seller clears the goods for export and meets the cost of carriage to the port in the destination country. But the buyer bears all risks after delivery, which occurs when the seller delivers the goods on board the vessel at the port of shipment. The buyer also bears any extra costs caused by events that happen after delivery.

Cost, insurance and freight (CIF)
An Incoterm, where the seller clears goods for export and meets the cost of carriage to the port in the destination country, including insurance. But the importing buyer bears all risks, except marine insurance, after delivery. Delivery occurs when the seller delivers the goods on board the vessel at the port of shipment. The buyer also bears any e...

Countervailing charge
A charge which may be imposed by the European Commission (EC) either on certain goods from specified European Union (EU) member states during some months of the year or as part of a minimum import price system.

Covenant
A promise within a contract for the performance or non-performance of a specified act.

Covenants
In finance these are conditions imposed on loans and bonds to protect lenders against default.

Cover note
A document issued by the insurer or agent confirming details of the insurance cover placed. In motor insurance, a cover note acts as a temporary certificate of insurance and policy.

CPEI
Customs procedures with economic impact -Customs Procedures with Economic Impact - a blanket term describing a number of Customs procedures which are specifically designed to aid European Union (EU) companies. Procedures covered include Inward Processing Relief (IPR), Outward Processing Relief (OPR), Rejected Imports, Returned Goods Relief (RGR), Community System of Duty Reliefs (CSDR), T...

Credit reference agency
Used by banks to check people's identity and credit history when they apply for credit. The information provided includes whether they are a voter at the address they provided (this means they'll be on the electoral register), whether they have failed to repay debts, or whether they have been taken to court for not paying back a debt. Everyone is a...

Credit scoring
Used by banks as a means of deciding who should receive credit. By giving points based on the information supplied on the application form, the lender decides whether to give people credit. Credit is only given to those applications which score a certain number of points. The exact number of points and how they are allocated is decided by the issue...

Credit-risk insurance
Insurance for exporters designed to cover risks of non-payment for delivered goods.

Creditor
An individual or company who is owed money.

CREST
A computerised system for settling sales and purchases of shares in the UK.

Custom and practice
In some industries there are trading terms or practices which have become established as normal and these are implied into a contract as custom and practice unless the contract actually states otherwise.

Customs action code (CAC)
A code which indicates the action taken by Customs on either an entry or a request for removal.

Customs and excise warehouse
A warehouse separately approved for the deposit of goods liable to customs duty and excise duty.

Customs approved treatment or use
The placing of goods under a customs procedure, their entry into a free zone, their re-exportation from the customs territory of the European Union (EU), their destruction or their abandonment to the Exchequer.

Customs commodity code
Eight-digit commodity code required for exports outside the European Union (EU). It needs to be made in your customs export declaration. Sometimes known as the 'first eight digits of the Customs Tariff number' or 'CN (Customs nomenclature) code', it's also used as the basis for the import declaration in the country of destination.

Customs duty
A tax charged on goods imported into the European Union (EU). It is based on the value (ad valorem) or the quantity (specific) of the imported goods and the description of the goods. Remember that imported goods may be liable to other charges, such as Anti-Dumping Duty (ADD) or Common Agricultural Policy (CAP) charges. They may also be liable to Ex...

Customs procedure code (CPC)
A six digit code used on entries at import and export to identify the type of procedure for which the goods are entered and from which they came.

Customs registered number (CRN)
Customs Registered Number - a unique 5 digit number assigned by HM Revenue & Customs to an exporter or agent approved to use one or more of the following export procedures: Simplified Clearance Procedure (SCP); Local Export Control (LEC) and Period Entry.

Customs release
The approval given by Customs that authorises a transit shed operator to deliver goods from the transit shed subject to such conditions the commissioners may impose.

Customs Union
The Customs Territories of the European Union (EU), Turkey, San Marino and Andorra. The unions between the EU and these countries enable most goods in free circulation to move freely between them without the need to claim import duty relief, subject to the production of any necessary preference or community transit (CT) documentation. VAT is still ...

Customs value
The value of imported goods for Customs purposes.

Customs warehouse
A place approved by HM Revenue & Customs for the storage of goods without payment of import duty. Import VAT is also suspended during storage of warehoused goods. There are several different types of Customs warehouse. While most approvals are for specific locations, in some cases approval can be given to a company and its commercial accounting and...

Damages
The normal remedy in law as compensation for a person's loss is a payment of money called damages. The person suffering the loss may apply for a different remedy, such as an injunction. Where this cannot be given, or is not given by the court, then damages will be awarded instead even if they are not as valuable as the other remedy.

Dangerous Goods Declaration (DGD)
Declaration required when shipping hazardous or potentially hazardous goods. This is sometimes called the Dangerous Goods Note.

Dark smoke
Dark smoke is any smoke that appears to be as dark or darker than shade 2 on the Ringelmann Chart. Burning of fossil fuels (coal, oil, gas) and wood may release dark smoke into the air. Dark smoke creates high levels of carbon monoxide (CO) and carbon dioxide (CO2). Both contribute to greenhouse gases and are linked to climate change.

Days of grace
Number of days for which insurance cover continues beyond the actual expiry date of a renewable policy. If the renewal premium is not paid within this period, the policy lapses.

De facto
In fact. Having a practical effect different from the legally accepted or expected one. For example, if you have deliberately or negligently given the impression that someone is a director of a company when they are not then you can treat them as a de facto director. In such cases, the company will be bound by any agreement or statements that perso...

De jure
In law. Legally correct - it is the opposite of de facto.

De minimis
Short for the Latin phrase de minimis non curat lex: the law does not concern itself with trifles or insignificant issues.

De novo
Start afresh (Latin). Starting a new contract on the same basis as the old.