Export Glossary-E

EC (European Community)

The customs union of countries in Europe, organizing freedom of movement for goods, services, capital and people.

Economic Indicators

Key statistics used to analyze business conditions and make forecasts.

Ejusdem Generis

Similar in kind to others stated previously. Relates to the peril insured against in a marine policy.

EMC

See Export Management Company

Emerging Markets

Financial markets in nations that are developing market-based economies and have become popular with U.S. investors.

Entering Inwards

The reporting of the vessel's arrival in port by the master at the Custom House. Permission to commence discharging is obtained.

Entrepor

A place of transhipment.

Entry Outwards

Report of the intention to commence a new voyage by the master at the Custom House. Permission to commence loading is obtained.

Equipment

Any item having a life expectancy of one year or more.

Escalator Clause

A clause in a contract providing for increases in costs such as labor expenses and materials.

Escrow Account

Special bank account into which earnings from sales (e.g., convertible currency proceeds from exports) are accumulated. These revenues are set aside for subsequent acquisition of goods and services from a foreign supplier. The escrowed money, usually interest-bearing, is disbursed by the bank to the foreign supplier under payment terms and against documents specified in the supplier's sale contract.

ETC

See Export Trading Company.

Ethnocentrism

A belief that the way things are done in a particular person's culture is automatically the correct way for everyone. Anyone who deviates is doing wrong.

Eurocurrency

A deposit in a bank outside the depositor's country of origin. Most deposits are U.S. dollar deposits, although nearly all major Western currencies are represented.

Eurodollars

U.S. dollars placed on deposit in banks outside the United States; usually refers to deposits in Europe.

Euroloans

Loans of dollar-denominated deposits in banks outside the U.S. and of other deposits in banks outside the depositor's country of origin.

Euromarkets

A general term for the Eurobond and Euroloans markets.

European Currency Unit (ECU)

An international unit of account created for the European Monetary System (EMS), to be used as the denominator of EMS debts and credits and as a reserve credit in the European Monetary Cooperation Fund. The ECU is composed of a weighted basket of currencies of Europeam Union members. That monetary unit was created in 1979 by nine European nations to promote currency stability in the European Union. The value of the European Currency Unit in relation to other currencies is published daily in European newspapers.

European Union (EU)

A regional economic and political organization with a combined GDP of more than U.S. $7 trillion and a population of 370 million. Its 15 members are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. Formerly known as the European Community.

Evidence Account

Umbrella agreement contracted between a Western supplier and a government agency in a developing country (e.g., an industrial ministry, or a provincial or state authority), which is designed to facilitate reciprocal trade flows. The agreement stipulates trade conditions between the Western firm, other independent firms designated by it, and commercial organizations under the jurisdiction of the developing country signatory. It also requires that the cumulative payment turnovers for the traded goods, not payments of individual transactions, be balanced in an agreed-upon proportion within a specified period of time (typically 1 to 3 years). Trade flows are monitored and financial settlements occur through banks designated by the agreement's signatories.

EX

From. When used in pricing terms such as "ex factory" or "ex dock," it signifies that the price quoted applies only at the point of origin (in the two examples, at the seller's factory or a dock at the import point). In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.

Excalator Clause

A clause in a builder's risk policy allowing the insured value to increase as the construction proceeds.

Excess

An amount that is deducted from a partial loss before the claim is applied to the policy.

Excess Value Insurance

A policy effected to cover the shipowner's liabilities attaching to the difference between the insured value and the contributory value where the latter is higher than the former. Without this such excess liabilities would be uninsured.

Exchange Permit

A government permit sometimes required by the importer's government to enable the import firm to convert its own country's currency into foreign currency with which to pay a seller in another country.

Exchange Rate

The price of one currency in terms of another, that is, the number of units of one currency that may be exchanged for one unit of another currency.

EX-DOCK

From dock. Seller owns goods until they are unloaded on dock at port of discharge; selling price includes all costs so far plus cost of unloading from vessel.

EX-FACTORY

Seller owns goods until they are picked up at his factory; selling price is the cost of the goods.

Eximbank

Export-Import Bank of the United States.

Excise Tax

A domestic tax assessed on the manufacture, sale, or use of a commodity within a country. Usually refundable if the product is exported.

Expedite

To accelerate delivery of goods.

Expiration Date

The final date upon which the presentation of documents and drawing of drafts under a letter of credit may be made.

Export Broker

An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transactions.

Export Commission House

An organization that, for a commission, acts as a purchasing agent for a foreign buyer.

Export Declaration

See Shipper's Export Declaration.

Export License

A government document that permits the licensee to export designated goods to certain destinations. See General export license and Individually validated export license.

Export Management Company

A private firm that serves as the export department for several producers of goods or services, either by taking title or by soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission.

Export Trading Company

A firm similar or identical to an export management company.

Exports

Goods and services one country produces and sells to other.

Extended Protest

Detailed statement made by the master of a vessel concerning an accident that has become the subject of a court case.

Extra Charges

Expenses incurred in connection with a claim under a policy.

EXW (Ex Works)

The porter's price includes making the goods available at the named point (his "works") ready for shipment. This is the minimum level of responsibility for an exporter. You agree only to make the goods available to the buyer at your plant or office. The buyer may even be responsible for loading the goods on a vehicle. The buyer bears all responsibility for taking the goods from that point.