Copy of `Business gateway - Business terms`

The wordlist doesn't exist anymore, or, the website doesn't exist anymore. On this page you can find a copy of the original information. The information may have been taken offline because it is outdated.


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


Office of export
The Customs office where the export declaration is lodged.

Offices en route
Frontier offices through which a Transports Internationaux Routiers (TIR) movement passes, on the journey to its destination. At each of these offices the container/vehicle and TIR Carnet must be presented to Customs.

Offices of departure-destination
Approved Customs offices where a Transports Internationaux Routiers movement officially begins or ends. This may be at an inland clearance depot, port or airport.

OML
Ordinary Maternity Leave

On consignment
Goods imported for post importation sale in the European Union where the value of the sale is not known at the time of importation.

On-line
The onward carriage of a through inter-airport removal or a through transit by the inward carrier of the goods.

Open account
A trade arrangement under which goods are shipped by an exporter without guarantee of payment. This is similar to offering credit to a UK customer, with the exporter bearing all the risks of offering credit. Open account payment should only be used if you have an established relationship with the buyer and is typically for exports within the Europe...

Open General Import Licence (OGIL)
Available from the Department for Business, Enterprise & Regulatory Reform (BERR), this allows the import of most goods from outside the European Union without licensing formalities.

Open insurance policy
Marine insurance policy that applies to all shipments made by an exporter over a period of time rather than a single shipment.

Option
A contract that gives the holder the right, but not the obligation, to buy or sell an agreed amount of shares or currency at a pre-agreed price by a given date.

Ordinary resolution
A simple resolution passed by a company by more than half of those who vote on it. Usually all that is needed to authorise the directors to enter into a major contract or to ratify one they have already agreed. However, directors are usually assumed to have general authority to enter into any contract in the course of business and the other party t...

Originating products
Products which have been wholly produced in the European Union (EU) or products which incorporate material not wholly produced in the EU, but which have been sufficiently transformed in the EU.

Outward processing relief (OPR)
A system of duty relief that gives full or partial relief from import duty when European Union (EU) goods are exported outside the EU for process or repair and are subsequently re-imported.

Outward processing trade (OPT)
Concerned with the temporary export of textiles to certain Eastern European countries for processing and re-import into the European Union. Before exporting the goods, the exporter must obtain an OPT authorisation from the Department of Trade and Industry.

Overdraft
This is when someone borrows from their bank by taking out more money than they have in their account. It is advisable for people to arrange an overdraft facility with their bank if they think they may overdraw.

Overheads
The costs of running your business rather than producing your goods or services, eg rent, rates, lighting and heating.

Parallel port
The socket on a computer that a printer usually plugs in to.

Parent company
A company that owns one or more businesses (subsidiaries), ie has more than 50 per cent of the voting rights. Sometimes, the parent has less than 50 per cent but can control the board of directors of the subsidiary, ie it has the power to appoint and remove directors without referring to other shareholders.

Pari passu
Equal and even. In terms of shares, this means that newly issued shares have the same rights and restrictions as those of the same class already existing.

Part delivery
Or part release - the delivery by a transit shed operator of part of a Customs released consignment.

Part shipment
The description for each of the two or more parts of a split export consignment.

Pay As You Earn (PAYE)
The collection system for the basic income tax of employees.

PAYE settlement agreement (PSA)
Voluntary agreement between a company and its HM Revenue & Customs office covering tax on certain expenses and benefits in kind. The agreement allows the business to pay the tax due without having to operate PAYE on them, enter them on a P11D or P9 or assess the National Insurance due on them.

Paying agent
A trader known to HM Revenue & Customs and formally set up on the Customs Handling of Import and Export Freight (CHIEF) system who transmits import or customs warehouse removal declarations to the CHIEF system.

Payment in advance
An exporter may be able to negotiate these terms for all or part of its shipment. The exporter bears no risks or financing costs. Payment or part-payment in advance is typically used for low-value sales to individuals or new customers.

PCC
Processing under Customs control for free circulation -A system of import duty relief for goods imported or transferred from another Customs regime.

PEACH
Procedure for Electronic Application for Certificates -Created to help businesses comply with the requirement for pre-notification of horticultural consignments being imported into the European Community (EC) and which fall under the EC Marketing Standards.

Peer-to-peer
A network in which each computer node has equal abilities. A computer can serve as both a server and a user, and each computer has access to all the network's resources on an equal basis.

Period entry
The period within which the quantity of goods specified by a licence must be imported or exported.

Period of risk-insurance
The period during which the insurer can incur liability under the terms of the policy.

Period of validity
The period within which the quantity of goods specified by a licence must be imported or exported.

Peripheral
Any device that is not part of the main computer but that is situated relatively close by, for example a printer or scanner.

Permit to Work
A Permit to Work is a formal written statement of work to be done, safety precautions to be taken and confirmation that associated risks and hazards have been identified.

Personal digital assistant (PDA)
A small, handheld computer with, typically, diary and address book applications and, increasingly, mobile phone connections built-in (also known as Palmtops).

Personal equity plan (PEP)
These were tax-efficient investments available in the 1980s and 1990s.

Personal export scheme (PES)
A scheme under which a VAT-registered supplier can supply a motor vehicle to certain customers in the UK free of VAT, on condition that the vehicle is exported to a destination outside the European Union (EU) within a fixed time. Subject to some restrictions the vehicle may also be used in the EU prior to its final export.

Personal Hearing Protection
Personal Hearing Protection is one type of Personal Protective Equipment (PPE), which is worn by the worker to protect their hearing in noisy work areas. Personal Hearing Protection is either earplugs or earmuffs.

Phishing
Term used to describe the use of bogus e-mails and websites to trick the user into supplying confidential or personal information such as bank account numbers, PINs or passwords.

Phytosanitary Certificates
(PHYTO (Sanitary) Certificate) Written verification that plant and plant products meet the standards required for foreign countries

Plug-in
A specialised software program that is used to expand the capability of a web browser. It is generally used to provide interactivity and functions (such as moving and animated objects and live audio) that make use of the computer's sound or video cards.

Point of entry
The location at which imported goods first enter the UK. This is not necessarily the place at which goods are presented for Customs clearance.

Policy
A document detailing the terms and conditions applicable to an insurance contract and constituting legal evidence of the agreement to insure. It is issued by an insurer or their representatives for the first period of risk. On renewal a new policy may not be issued although the same conditions would apply, and the current wording would be evidence ...

Polluter pays
Polluter pays is a concept whereby those responsible for pollution meet the costs of restoration or remediation in full.

Post-shipment declaration
A full statistical export declaration submitted to the Customs Handling of Import and Export Freight system after goods have been exported. A post shipment declaration is required following the export of goods under the simplified declaration procedure and local clearance procedure.

Pre-finance goods
An arrangement whereby an export refund is paid on Common Agricultural Policy goods in advance of the actual export. Goods must be deposited in a Customs warehouse or free zone specially approved for pre-financing.

Pre-financing
System permitting payment of Common Agricultural Policy export refund when goods for export are placed in Customs control in warehouse, or when basic products from which goods for export are to be produced are placed in Customs control at the manufacturing premises.

Pre-shipment advice
An abbreviated export declaration presented to HM Revenue & Customs at the time of export.

Pre-shipment declaration
A full statistical export declaration lodged with HM Revenue & Customs together with the goods before the time of shipment. A full manual declaration may be made either electronically, using the national export system, or as a manual declaration. At a designated export place a Customs Handling of Import and Export Freight declaration must be submit...

Pre-shipment inspection (PSI)
A few countries require goods and documents to be examined before export by an independent agency. In some countries it's optional but can be requested by the customer. Usually, countries where PSI applies have appointed one dedicated agency to perform the pre-shipment inspection. Normally, your freight forwarder or customer will be able to advise ...

Preference
A system under which eligible goods imported into the European Union (EU) from certain non-EU countries qualify for a reduced (often nil) rate of Customs duty. These arrangements also cover EU goods exported to the non-EU country.

Preferential creditor
A creditor entitled to payment in insolvency after secured creditors and before unsecured creditors.

Premium
The consideration paid for a contract of insurance, often paid monthly, quarterly or annually.

Presentation of goods
The notification to Customs in the manner laid down of the arrival of goods at the Customs office or at any other place designated or approved by Customs.

Price-to-earnings (P-E)
P/E is a ratio and is an indication of the value of a company's shares. The ratio compares the cost of the share with the amount of income the company generates from that investment. A good P/E ratio points to a more secure business and greater likelihood of receiving good dividends in future. List of P/E ratios are published by quality papers.

Private companies
Have no minimum or maximum capital but can be limited by shares or guarantee. They cannot offer to sell shares to the public and so cannot be listed on the stock exchange. Private companies have 'Ltd' after the company name.

Private warehouse
A Customs warehouse reserved for the warehousing of goods by the warehouse keeper, ie the warehouse keeper is also the depositor of the goods.

Privity of contract
The principle that a contract is private to the parties that agreed to it. Historically this meant that if the contract affected or even named persons who should benefit from it, they could not sue to enforce it if they were not actual parties to the agreement. This principle has now been greatly undermined by statute and third parties can now sue ...

Pro forma invoice
Invoice provided by an exporter to an import customer before shipping. Typically used when the importer has to organise foreign exchange or get an import licence.

Pro rata
When you are liable for your own share or proportion only. For example, a pro rata share issue is offered in proportion to the number of shares each shareholder already has.

Pro-rata premium
Charge for a number of days a risk is covered, calculated as a precise fraction of the annual premium.

Producer responsibility
Producer responsibility involves making manufacturers responsible for the entire lifecycle of the products and packaging they produce. The aim of producer responsibility is to ensure that someone (usually the original producer of the goods) takes responsibility for the proper safe disposal/recovery of the goods when they have reached the end of the...

Production account point
This is the precise, clearly defined point through which all tobacco products are channelled and where the production account is raised.

Professional indemnity insurance
Insurance that indemnifies a professional against their legal liability towards third parties for loss arising from their professional negligence or that of their employees.

Profit and loss account
A statement of income received during a given period and the costs incurred to generate that income. It includes sales, costs, overheads, interest charges and a provision for tax and dividends.

Prohibition notice
A prohibition notice is served where a health and safety inspector believes that continuing the activity presents the risk of serious personal injury. The prohibition notice requires the activity to stop until health and safety controls have been put in place. Environmental regulators can issue a notice when a business fails to comply with the cond...

Proposal form
Document completed giving details required by insurers to enable them to decide whether to accept the risk and on what premium terms and conditions. Once agreed by both parties, it forms the basis of the insurance contract.

Proprietor
In relation to excise goods this term includes the owner, importer, exporter, shipper, or other person owning or being beneficially interested in the goods.

Proxy
A person who acts on behalf of another for a specific purpose. In a company a proxy is appointed to attend a meeting and vote on behalf of the shareholder that appointed the proxy. 'Proxy' can refer to both the business making the appointment and the person appointed.

Proxy
A computer (server) that sits between a client application (for example, a web browser) and a real server. The proxy intercepts all requests to the real server to see if it can fulfil the requests itself. If not, it forwards the request to the real server.

Public liability insurance
Insurance that indemnifies against any claims for injury or damage by members of the public to their property by you or your business.

Public Limited Company (PLC)
A PLC must issue at least £50,000 worth of shares. Before the company can start trading the company must hold 25 pence for each £1 share. A public company must have at least two directors and a company secretary. Public companies can be listed on the stock exchange but this is not compulsory.

Public warehouse
A Customs warehouse available for use by any person for the warehousing of goods.

PUWER
Provision and Use of Work Equipment Regulations 1998 -PUWER requires businesses to control risks to employees from work equipment.

QUEST
Qualifying employee share ownership trust -A trust, established by deed, which allows employers and shareholders to pass on shares in a company to employees and which can be deducted in the calculation of corporation tax.

Quid pro quo
Something for something. The usual definition of consideration in a contract on the basis that both parties must give something.

Quorum
The minimum number of people needed at a meeting for the meeting to proceed and make any decisions.

Quota
Quantity of a particular type of goods that a country allows to be imported before levying duty or restrictions.

Quotation
Price for which a supplier is prepared to carry out a supply of goods or services. Can be used as one of the terms of an offer.

Random access memory (RAM)
A computer's main working memory, where the operating system, applications programs and data in current use are kept. It retains memory for as long as the computer is running, but loses its data as soon as the computer is turned off.

Ranking
The order in which holders of a business' securities are paid in the event of insolvency.

Rate of yield
The amount of compensating product obtained from processing a given quantity of imported goods.

Rateable value
Annual rental value given to commercial properties for the purposes of calculating business rates.

Ratification
Giving authority to an act already done. A resolution of a company in a general meeting can ratify an act previously carried out by the directors and a principal can choose to ratify an act of an agent that was beyond the power of the agent.

Reasonably practicable
The judgment of what is 'reasonably practicable' in protecting people in the workplace is based upon the likelihood of an accident arising and the seriousness of the outcome if the accident occurs.

Rebate
In the context of excise duty, a reduced rate of duty that is allowed on oils that have been put to industrial and off-road use. They are marked to show that they have been rebated. It is illegal to use rebated fuels as fuel in road vehicles.

Rebate licence
A licence to use rebated heavy oil as road fuel, issued by HM Revenue & Customs.

Receivership
The appointment of a licensed insolvency practitioner to take over the running of a company. The receiver is appointed by a creditor with a secured debt and the job of the receiver is to recover the debt either by taking the security and selling it or by running the business until the debt is paid off.

Reception input
An input message that records the physical receipt of export cargo and the associated documents.

Rectification
The correction of a document by court order. The court can rectify a document that cannot be legally altered by anyone else, even the parties who created it. This includes company records and signed contracts.

REDCENT
Accounting Centre for Registered Excise Dealers and Shippers -The accounting centre processes records of all payments of excise duty made under the Registered Excise Dealers and Shippers (REDS) system and holds registration records of all registered traders.

Redemption of shares
Where a company issues shares on the terms that they can be bought back by the company. Not all shares can be redeemed, only those stated to be redeemable when they were issued. The payment for the shares must generally come from reserves of profit so that the capital of the company is preserved.

Reduced rates of duty
Some goods can be imported into the UK at a nil or reduced rate of Customs duty because they originated in a preference country or are from a non-European Union country and qualify for a temporary suspension of Customs duty.

Registered office
The official address of the company as stated on the register at Companies House. Any documents delivered to this address are legally served on the company.

Registered owner
A person who has been authorised and registered by HM Revenue & Customs to deposit their duty-suspended goods in an excise warehouse.

Registered person
An individual, firm or company that is registered for VAT under the terms of the VAT Act 1994.

Release
Release of goods to a Customs procedure either at the frontier using the simplified declaration procedure or entry in the records using the local clearance procedure.

Release note
A computer printout, or manual equivalent, for a consignment of goods which has been given Customs release.

Relevant goods
Excise goods on which the duty has not been paid (excluding hydrocarbon oils).

Relevant revenue trader
An authorised warehouse keeper, registered owner or duty representative.

Remedy-Remedies
Payments or actions ordered by the court as settlement of a dispute. The most common is damages - a payment of money. Others include specific performance of an action required in the contract, an injunction and rescission - putting things back to how they were before the contract was signed.