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Business gateway - Business terms
Category: Business and Law > Business
Date & country: 21/01/2010, UK
Words: 759

Insurable interest
The principle that the insured must have an interest, usually financial, in the risk for which the policy is to be issued.

Insurance Ombudsman
Official body, financed by participating insurers, to whom unresolved complaints can be referred.

Insurance policy
Should cover goods for at least their full value (110 per cent is common), and include details of quantity and route. Where necessary, it should also provide for time extensions and transhipments.

The payment for the use of money, ie borrowed from a bank or other lender, expressed as a percentage rate for the period of time in use, generally an annual rate.

Interest cover
Where the lender looks at the number of times a borrower would be able to pay interest out of earnings before interest and tax. It gives the bank a basic indication of whether the borrower would be able to pay their debts.

Interest rate
The cost of credit, expressed as a percentage rate.

Internet protocol security (IPsec)
A protocol that provides encryption, and authenticates the sender of the information. IPsec is most commonly used in the implementation of VPNs (virtual private networks) and for remote user access through dial-up connection to private networks.

Internet service provider (ISP)
A company that provides its customers with access to the Internet. Some ISPs also offer a number of email addresses and web space on which customers can house their own websites.

Between member states of the European Union.

A privately maintained computer network, using the same browser technology and network protocols as the Internet, that can be accessed only by authorised users, typically employees of the organisation that owns it.

The system for collecting statistics on the trade in goods between European Union (EU) member states. The system exists throughout the EU and requirements are similar in all member states.

Inventory return code (IRC)
Used by the Cargo Community System to indicate that inventory details sent by the Customs Handling of Import and Export Freight system are incorrect or invalid.

Inventory system
A trade computer system that controls the arrival and departure of consignments at most ports and airports in the UK.

Investigation settlement
Agreement of liabilities payable following an investigation into a taxpayer's/trader's affairs.

Investment trusts
Companies quoted on the Stock Exchange, which invest in other companies' shares.

Inward processing relief (IPR)
A Customs procedure providing import duty relief for goods imported to the European Union (EU) or removed from a Customs warehouse, for process and re-export outside the EU.

Integrated Pollution Prevention and Control -IPPC, applies an integrated approach to the environmental management of certain businesses. It covers emissions to air, land and water, noise and vibration, energy efficiency, waste minimisation, environmental accidents and site protection. The Pollution Prevention and Control (PPC) regime has implemented IPPC in the UK. PPC has replaced integrated...

Inward processing relief/continental shelf -Special arrangements are available for the transfer of inward processing relief goods to or from locations on the continental shelf outside UK territorial waters.

Union Internationale des Transports Routiers -An international trade organisation for the road transport industry.

ISO14001 is an internationally recognised standard for Environmental Management Systems (EMS). The standard recognises businesses that demonstrate compliance with the legislation and attainment of high environmental standards.

Issue of shares
When all or part of the authorised capital is allotted or allocated to persons who are then registered as the owners of the shares. Registration may be in paper certificate form or electronic, dematerialised form.

Individuals and trustees self assessment -Also known as income tax self assessment.

Joint and several liability
Where parties act together in a contract as partners they have joint liability, which means they are each responsible for their share of any debt or loss. A creditor must sue all of the parties together to get the full amount owed back. If they have joint and several liability they are each liable for the entire contract and the creditor can recove...

Joint venture
An agreement between two or more independent businesses to create a project or business vehicle in which they will share the costs and management as well as the profits or benefits arising from the venture. The exact shares and responsibilities will be set out in a joint venture agreement.

An internationally agreed standard for the compression and decompression of still images, such as photographs. The compression rates used do not compromise the quality of the image and their fast transfer rate and high quality make them ideal for use on the Internet. JPEGs can be recognised by the file extensions .jpg and .jpeg.

Landfill is disposing of solid waste into or onto land. A landfill tax applies to all waste disposed of at a licensed landfill site.

Landfill tax
This tax aims to encourage waste producers to produce less waste, recover more value from waste, for example through recycling or composting and to use more environmentally friendly methods of waste disposal. The tax applies to active and inert waste, disposed of at a licensed landfill site.

Local Air Pollution Prevention and Control -LAPPC will replace LAPC, regulating certain businesses for emissions to air. LAPC and LAPPC have very similar requirements. A small number of businesses that are currently regulated under LAPC will have additional obligations under IPPC.

The non-renewal of an insurance policy for any reason.

A contract by which an owner of a property conveys exclusive possession and use of it for a specified rent and for a specified period - after which the property reverts to the owner.

Leasehold property
Property held under a lease.

Letter of credit
Banking mechanism that allows importers to offer secure terms to exporters.

A person or business deemed liable is subject to a legal obligation. A person/business who commits a wrong or breaks a contract or trust is said to be liable or responsible for it. Can also refer to an amount owed.

A paper or electronic document issued by the competent authority, authorising and requiring the import or export of the goods specified and/or imposing other special requirements as necessary.

Limit of indemnity
The maximum sum an insurer can be expected to pay under a policy or section of a policy. May be expressed as 'per accident', 'per event', 'per occurrence', 'per annum', etc.

Limited liability
Usually refers to limited companies where the owners' liability to pay the debts of the company is limited to the value of their shares or the amount of their guarantee (guarantee company). But it can also apply to contracts where a valid limitation clause has been included in the terms - not all limitation clauses are valid.

Liquid assets
These are assets such as shares in a company or unit trust, which can be sold quickly to give a cash amount.

The appointment of a licensed insolvency practitioner over a defaulting company by a court, the company's creditors or the company's members. The liquidator is responsible for realising the company's assets and distributing the assets amongst the company's creditors.

An insolvency practitioner appointed to realise the assets of a company in liquidation and make payments to secured, preferential and unsecured creditors in strict order of priority.

Load list
A list of goods intended for export also providing their destination.

Loading list
A commercial document which may be used when more than one item is being shipped. It may be used instead of continuation sheets to supplement single administrative document or community transit documents.

Loading pass
A document for the purpose of obtaining authority to load local export control goods boarding a ship or aircraft, after they have been removed from the trader's approved premises.

Local Air Pollution Control (LAPC)
Emissions to air from certain businesses are controlled and monitored by the local authority through the LAPC system. LAPC will be replaced by LAPPC.

Local area network (LAN)
A communications network that links together computers that are close to each other, for example in the same office or floor of a building. This enables them to share facilities such as printers, exchange files or access the Internet through a single connection.

Local clearance
Entry of imported goods into commercial records at designated premises away from the frontier.

Local clearance procedure (LCP)
A simplified procedure involving pre-shipment notification to the Customs Handling of Import and Export Freight (CHIEF) system, and entry in commercial records. A subsequent submission of a supplementary declaration to CHIEF is required within a specified period.

Local export control (LEC)
Allows exporters and freight forwarders who regularly export goods, to have their consignments cleared at their own inland premises without having to present normal pre-shipment documents at the UK port of loading/office of exit.

Log file
A file that tracks the access activity for a host computer or server. For example a log file may contain information about people accessing your website or attempting to gain access to your corporate network. Log files can be used to gather information on usage patterns, for troubleshooting purposes, or to spot suspicious activity.

Loss adjuster
An independent professional claims expert, who is engaged by insurers to impartially check and arrange settlement of claims in accordance with policy terms.

Loss assessor
Person specialising in compiling and negotiating settlement of claims on behalf of the insured, by whom they are paid.

Loss of use
Circumstances where a property cannot be occupied in the normal way, through the negligence or wrongdoing of another party.

Lower earnings limit (LEL)
This is the amount of salary that an employee can be paid without having to pay National Insurance. Once the salary exceeds the LEL then National Insurance is due on the entire amount of salary.

Main compensating product
The product which results from the processing of goods imported under inward processing relief (IPR). The main compensating product is the product which forms the basis of the IPR authorisation and which is to be exported.

Management buy out (MBO)
The purchase of a company by its existing managers, often with backing from a venture capitalist. The result is that managers acquire an equity interest or controlling stake in exchange for a modest personal investment.

Management information system
A type of computer system used by managers to support the functions of planning, controlling and decision making by providing summaries and reports on the business' basic operations.

For the purposes of preference, this covers any processing, working, specific operations or assembly (except for certain minimal processes) carried out in the manufacture of the product in the European Union.

Marine insurance
Warehouse-to-warehouse insurance that covers exporters transporting goods overseas for losses they can't legally recover from the carrier under the limited liability of the carrier. Despite its name, it covers all transport modes.

Letters, numbers and other symbols placed on cargo to enable it to be identified more easily.

Master Air Waybill (MAWB)
Refers to the bill of landing on a consolidated air shipment.

Material fact
Any fact that could influence an underwriter in their acceptance of the risk, or calculating the premium.

Megabyte (MB)
Term used to represent 1,000,000 bytes worth of information or computer memory.

Member State
A member state of the European Union.

Memorandum of association
Statement of the name, purpose (objects), and liability of a company, signed by the first members as subscribers. For a limited company the type of limitation (shares or guarantee) and extent will also be stated. Other clauses can be placed in the memorandum if it is intended to make them permanent - articles are much easier to change. So the non-p...

A definition or description of data, in effect 'data about data'. Metadata is commonly used in content management systems and data warehouses, with tags or descriptors added to information to help with its subsequent retrieval.

Mezzanine finance
A term to describe finance, which has the characteristics of both debt and equity, usually in the form of variations on preference shares or loan stock.

Incorrect information on any declaration made to HM Revenue & Customs (HMRC).

Where one party to a contract makes a false statement on which the other party relies. The remedy of rescission, or putting things back to how they were before the contract began, is sometimes available to the misled party, but where it is not possible or too difficult the court can award damages instead.

Modulator/demodulator - a device that converts the digital signals from computers into analogue signals and vice versa, so they can be transmitted over phone lines.

Movement certificate
Required where goods are being exported from the European Union (EU) to a country covered by EU trade agreements. These certificates ensure preferential rates of duty on an exporter's goods.

Multilateral trading system (MTS)
The processes through which large numbers of countries agree to trade with each other. The World Trade Organisation is part of this system.

Applications combining the use of more than one media, such as data, voice and video.

Multimodal operation
Transport operations where a container or trailer is conveyed by two or more means of transport during a single journey, eg by air and then by road.

A system where an organisation is owned by its members without outside shareholders.

National Advice Service (NAS)
The HM Revenue and Customs network of advice centres that exist to provide advice and assistance on Customs, Excise and VAT matters. The local rate national telephone number is 0845 010 9000.

National Export System (NES)
The system for making electronic declarations for customs export procedures, and part of the main customs computer system, the Customs Handling of Import and Export Freight (CHIEF).

National Insurance (NI)
Payments made to the government out of earnings that entitle people to a state pension and other benefits. Contributions are paid both by an employee and the employer.

A form of tort or breach of a legal duty of care where the victim is entitled to some form of compensation, eg damages for harm suffered.

Negligible value
HM Revenue & Customs regard goods as being of negligible value, so long as they can only be used as samples to obtain orders for the type of goods they represent.

Net asset value (NAV)
The total value of the assets of an organisation or a fund minus all liabilities and all capital charges.

Net premiums
A term variously used to mean gross premiums net of expenses, commission taxes, or any combination of these.

Net profit
The gross profit figure minus overheads, including depreciation. This may be expressed as per cent on sales. Net profit does not include interest charges, dividends or tax.

Traders approved for duty deferment must also be approved to set off drawback and certain other repayments of excise duty against the duty due from them under the deferment arrangements. This set-off procedure is known as netting.

A computer network is used to connect all types of computers and related things such as terminals, printers and modems. There are local area networks (LANs) that exist in a limited geographical area such as an office or building, or wide area networks (WANs) that connect computers over large geographic areas, perhaps even internationally.

National Insurance contribution.

National minimum wage.

Any computer or device connected to a network.

Noise action levels
There are three noise action levels. The first two action levels depend on the noise levels in the workplace and how long people are exposed to noise. The third action level (peak action level) refers to the maximum limit for a single loud noise.

Non-business activities
An activity that is not predominantly concerned with the making of a supply for a consideration.

Non-commercial use
Use for non-profit-making scientific research or educational purposes.

Goods that are not of European Union origin or imported goods which have not been released into free circulation.

Non-community countries
Certain areas within the national territory of member states are deemed to be outside the Customs territory of the European Union (EU) and are therefore non-member countries. These are: the German territory of Busingen (bordering Switzerland), the Islands of Heligoland, the Italian communes of Livigno and Campione (bordering Switzerland), the Danis...

The failure by the insured or their agent to disclose a material fact or circumstance to the insurer before acceptance or renewal of the risk.

Non-executive director
A director who does not work full-time for a company but advises the other directors. Non-executive directors have the full powers and authority of any other director and can bind the company to any contract. However, it might be suspicious if a non-executive is signing contracts for trading goods and stock as they would not normally be involved. A...

Non-originating products
In international trade, products which cannot be shown to meet either condition for originating products.

Holding, possessing, or occupying premises.

The onward carriage of a through inter-airport removal or a through transit, by a carrier who is not the inward carrier of the goods.

In order to be valid, one party to a contract must make an offer, and the other party must give an unconditional acceptance of that offer. An offer must be made with the intention to create legal relations if accepted. It must be capable of being accepted, ie it must not contain any condition which makes acceptance impossible. It must also be compl...

Office of exit
Normally the last Customs offices before the goods leave the Customs territory of the European Union.

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.