Export Glossary-L

Landbridge

A microbridge or a minibridge.

Landed Cost

The cost of the exported good at the foreign market's port or point of entry, excluding foreign tariffs, taxes and other local costs.

Law

There are two general types of legal system that have developed throughout the world. Common law is based on the English legal system and is the basis of the legal systems in many countries that were historically part of the British Empire, including many Caribbean countries that now operate as offshore entities. Civil Law is based primarily on the French and Spanish legal systems and tends to refer to the constitution of the country rather than past legal precedent.

LCL (Less-Than-Container Load)

Usually refers to ocean shipments.

LDC

Lesser Developed Countries

Lead Time

The period of time from the date that the goods or services are requisitioned to the time when goods can be delivered, allowing for the public bidding and ordering.

Leasing

Financing under which the customer (or lessee) pays for the use of assets (capital goods and equipment) in regular installments as the asset produces revenues. Under a finance lease, a lessee can acquire use of an asset for most, if not all, of its useful life. Under an operating lease, a lessee acquires use of an asset for a fraction of its useful life. Sometimes the lessee has the option to purchase the asset at residual value upon termination of the lease term.

Legalization

Approval of export documents by a foreign consulate or other entity in the United States.

Letter of Credit (L/C)

A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time.

Letter of Credit (Confirmed)

In cases where the financial strength of the issuing bank or country is in doubt, the exporter may ask their own bank in Canada to provide an undertaking (i.e. to confirm) that the credit will be paid. The exporter is assured that the letter of credit will be paid by the confirming bank, even if the issuing bank cannot pay, provided the terms and conditions of the credit have been met.

Letter of Credit (Irrevocable)

A financial institution agrees to pay an exporter once all terms and conditions of the transaction are met. Since it is irrevocable, no terms or conditions can be modified without consent of all parties, including the exporter. Revocable letters of credit are not common and should not be accepted by an exporter.

Licensing

A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment.

LLC

Limited Liability Company

LLP

Limited Liability Partnership

LTL

Less-Than-Truckload

Lagan

Cargo thrown overboard, but buoyed so that it may be recovered.

Laker

A vessel specially constructed for navigation in the waterways of the Great Lakes and canal systems of North America.

Land Bridge

Descriptive term for an overland transit coming between two ocean passages during a container's journey from starting point to destination.

Latent Defect

A defect in the construction of a ship or machinery that is not readily discernible to a competent person carrying out a normal inspection. Discovery of a latent defect does not give rise to a claim on the ordinary hull policy, but damage caused thereby is usually covered.

Lay Days

Days allowed by charter for loading or discharging cargo.

Lay-up Return

A return of part of the annual premium on a ship time policy paid back to the assured by the underwriter because the ship has been laid up and not exposed to full navigational risks for a period of not less than 30 consecutive days. Such return is not paid until the natural expiry date of the policy, and is forfeit if the vessel becomes a total loss before such date.

Leadage

The cost of transporting coal from colliery to place of shipment.

Letter of Credit

A document authorizing payment to the person named, subject to fulfillment of certain specified conditions on the part of the person authorized to receive the money (e.g. evidence that goods have been shipped). Special clauses: (1) Red Clause: a clause authorizing the drawing of clean drafts (without documents) accompanied by a statement that the shipping documents concerned will be furnished later. (2) Telegraphic Transfer Clause: a clause containing an undertaking on the part of the issuing bank to pay the invoiced amount to the order of the negotiating bank upon receipt of an authenticated cablegram (telex) from the latter that the required documents have been received by it and are being forwarded. (3) Green Clause: an endorsement authorizing the drawing of clean drafts without documents by the beneficiary, but requiring the covered merchandise to be stored in the name of the paying bank until the documents are received.

Letter of Undertaking

See Link Contract

License

Official or legal permission from the owners to do, use, or own specified things of value such as intellectual property, service and trade marks, technology transfers and know-how. International license agreements between companies in different countries are subject to the applicable laws in each country that may differ in their effect and enforcement and accordingly affect the rights and liabilities of the parties.

Licensed Production

Overseas production of a U.S.-origin article based upon transfer of technical information under direct commercial arrangements between a U.S. manufacturer and a foreign government or producer.

Licensing

A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment.

Lien

A legal right over goods, to hold them until the claim against the owner has been settled.

Light Bill

A Customs receipt for the payment of light dues.

Light Dues

Moneys collected by the Customs on behalf of Trinity House for the maintenance of lighthouses and buoys. Dues arc levied on vessels according to their net registered tonnage.

Lighterage

The price paid for loading or unloading ships by lighters or barges.

Limber Hole

A drainage hole in a ship.

Limited Liability

This is associated with the identity of a company being distinct from the members that own it, and reflects the position that owners of the company are only liable for the acts of the company to the extent of any unpaid share capital.

Limited Terms

An insurance expression meaning that the policy gives less cover than a policy on full conditions (eg. total loss only).

Limit per Bottom

The maximum amount of cargo insured by a policy in any one vessel.

Liner

A ship on a regular schedule calling at specified ports.

Link Contract

As used in this publication, a generic name for the side document that links the import/export components of a countertrade transaction. The link contract specifies conditions under which a primary supplier irrevocably commits to purchase, or cause to be purchased, goods and/or services from sources designated by the primary buyer. It also prescribes penalties or remedial procedures in case of nonperformance. The document is sometimes referred to as a letter of undertaking, a protocol, a framework contract, or just a countertrade contract.

Lloyd's Agents

Persons appointed by the Corporation of Lloyd's and stationed in all major world ports. Their function is to safeguard Lloyd's interests and report all movements and losses of ships.

Lloyd's Broker

An intermediary who negotiates insurance contracts with Lloyd's underwriters on behalf of his client, the assured. For a broker to be admitted as a Lloyd's broker he must satisfy the Committee of Lloyd's that he is a suitable person to become a Lloyd's broker. Only Lloyd's brokers are permitted to enter the underwriting room at Lloyd's to transact business with underwriters.

Lloyd's Register of Shipping

An independent non-profit-making Society, controlled by the various sectors of the shipping industry. It undertakes surveys, classification of all vessels, and produces various annual publications, including Construction Rules for Steel Ships.

Load Line

The Load Line, sometimes called the Plimsoll Line, or "marks", indicates the depth in the water down to which a ship may be loaded the position of these marks is governed by international convention.

Loan Receipt

Document signed by the Assured where he acknowledges receipt of money advanced by the insurance company as an interest-free loan (instead of payment of a loss) repayable to the insurance company only if the loss is recovered from a third party and then only to the extent of the recovery.

Location Clause

A clause in a cargo insurance contract limiting insurance cover at any place prior to loading on to the vessel.

LOI

Letter of Intent

Loss of Market

A situation in which, for one reason or another, sound cargo is no longer wanted by the consignee when it arrives. This is a "business loss" not recoverable under a Marine Cargo Policy; e.g., Christmas trees arriving in January undamaged.

Loss of Specie

A change in the character of cargo that, in insurance terms, is effectively an actual total loss.

Lowest Responsible Bidder

That bidder who is awarded a contract because his bid in unit price, total cost of operation, or value per dollar is lower than any of the bidders and whose reputation, past performance and financial capabilities are such, that they would be judged to be capable of satisfying the needs of a specific contract.

Lump Sum Freight

A fixed freight rate, regardless of how much cargo is loaded.