^

-Ä^v United States

"•^ * V; 1 Department of

I' Agriculture

Foreign

Agricultural

Service

Agriculture

Handbook No. 411

Dictionary o

International

Agricultural Trade
942609 itfledgments

The editors wish to thani< Richard Cannon, John Hudson, George Pope, John

Riesz, and Robert Svec for their guidance and support as senior advisors; Albert

Slabotzl<y for the invaluable use of his grain dictionary; Andrew Burst, Robert

Curtis, James Dever, Kevin Haley, Steven Homrich, Julie Kaston, Philip Shull, John

Toaspern, and Kent Van Amburg, for their diligent pursuit of definitions; J. Don

Looper for his indepth review and useful recommendations; Thomas O'Connell for

his help in clarifying technical definitions; and Fran Bledsoe for initiating and nurturing the project.

Ordering Information

A limited number of copies of this report are available from the Foreign Agricultural

Service, Information Division, USDA, Room 5918-South Building, Washington, DC

20250-1000.
United States

Department of

Agriculture

Foreign

Agricultural

Service

Agriculture

Handbook No. 411

Revised June 1988

Dictionary of

International

Agricultural Trade

Lawrence D. Fuell

David C. Miller

Merritt Chesley
Abstract

This dictionary is designed to be a practical and up-to-date reference for those involved in international trade of agricultural products. The terms cover a wide variety

of subject areas in this field such as commodities, policy, export programs, finance,

documentation, transportation, and storage, as well as domestic and foreign agricultural programs. The dictionary includes brief descriptions of most agricultural commodities of importance to U.S. trade. Appendices covering U.S. commodity marketing years, units of measure, and commodity conversion factors are provided.

Keywords: Dictionary, agricultural trade, grains, livestock, dairy, poultry, oilseeds,

horticultural products, tobacco, cotton, forest products, trade policy, agricultural finance, shipping terms, General Agreement on Tariffs and Trade, RL. 480, plant diseases, animal diseases, marketing years, units of measure, conversion factors.
Contents

Page

Summary ¡v

Acronyms 1

Definitions 7

Appendices

U.S. commodity marketing years 81

Factors for converting weights and measures 82

Factors for converting dry and liquid measures 82

Factors for obtaining carcass weight equivalents 83

Factors for obtaining retail weights 84

Conversion factors for

Barley, buckwheat, and apples 86

Cattle, calves, sheep and lambs, and hogs 87

Corn, rye, sorghum grain, and flaxseed 87

Cotton acreages, cotton, and cotton products 88

Eggs 89

Fruit juices and concentrates 89

Oats 90

Oilseed products 90

Poultry 91

Rice and rice products 91

Tobacco 92

Tree nuts 94

Wheat, white potatoes, and soybeans 94

Wood products 95

Yield factors for

Liquid eggs and dried eggs 96

Oilseed products 96

Revised June 1988

III
Summary

This handbook provides a quick reference of terms and concepts pertaining to international agricultural trade. It updates the previous edition issued in April 1971 with

the same title and same number.

The terms cover a wide variety of subject areas relating to agricultural trade: commodities, policy, export programs, finance, documentation, transportation, and storage, as well as domestic and foreign agricultural programs. Some subject areas

(e.g., agricultural export financing and shipping) are covered more extensively than

others (e.g., domestic farm programs), commensurate with their importance to U.S.

agricultural trade.

The key criteria for inclusion of terms were their relevance to international agricultural trade and their long-term usefulness. Certain terms which would require

lengthy definitions or which can be found readily in general references were

excluded, as were terms of a highly technical nature and terms relating to temporary

programs or activities.

The dictionary includes brief descriptions of most agricultural commodities of importance to U.S. trade but is not intended to provide comprehensive information about

each commodity. Appendices covering U.S. commodity marketing years, units of

measure, and commodity conversion factors are also provided.

IV
Acronyms

A-1

In Lloyd's Register, the highest rating

for vessels with respect to their

seaworthiness.

ATDONSHINC

Shipping term: 'Any time day or night

Sundays and holidays inclusive."

ACA

Accession compensatory amount

ATO

Agricultural trade office

ACP States

African, Caribbean, and Pacific States

BENELUX

Belgium, the Netherlands, and

Luxembourg

ADB

Asian Development Bank

BOP

Balance of payments

AFDB

African Development Bank

BOT

Balance of trade

Al

Avian influenza or artificial

insemination

BTN

Brussels Tariff Nomenclature

AID

Agency for International Development

C&F

Cost and freight

AIMS

Agricultural Information Marketing

System

AMF

Anhydrous milk fat. See also butteroil.

APHIS

Animal and Plant Health Inspection

Service

ASEAN

Association of Southeast Asian Nations

CACM

Central American Common Market

CAEU

Council of Arab Economic Unity

c.a.f.

Cost and freight

CAP

Common Agricultural Policy

COG

Commodity Credit Corporation
CCCN

Customs Cooperation Council

Nomenclature

EAGGF

European Agricultural Guidance and

Guarantee Fund

CFS

Container freight station

EC

European Community. Also called

European Economic Community.

c.i.f.

Cost, insurance, and freight ECU

European currency unit

CLCC

Convertible local currency credit sale EFTA

European Free Trade Association

CLLG

Shipping term for canceling EIP

Export Incentive Program

CP

Contracting party

CSD

Committee on Surplus Disposal

CUP

Currency use payment

CVD

Countervailing duty

CWE

Carcass weight equivalent

CXT

Common external tariff

CY

Container yard

EMS

European Monetary System

ET

Embryo transfer

EUA

European unit of account. See

European currency unit.

FAO

Food and Agriculture Organization of

the United Nations

FAQ

Fair average quality

FAS

Free alongside ship or Foreign

Agricultural Service

D/A

Documents against acceptance

FBT

Full berth terms
FCIA

Foreign Credit Insurance Association

FSW

Farm sale weight

FEOGA

French acronym for European

Agricultural Guidance and Guarantee

Fund.

GATT

General Agreement on Tariffs and

Trade

FGIS

Federal Grain Inspection Service

Fl

Free in

GDP

Gross domestic product

GNP

Gross national product

FIO

Free in and out

GSM

General Sales Manager of the Foreign

Agricultural Service of the USDA. See

credit guarantees.

FMD

Foot-and-mouth disease GSR

Generalized System of Preferences

FO

Free out HOB

High-quality beef

f.o.b.

Free on board HRI

Hotel/Restaurant/lnstitution

f.p.a.

Free of particular average. See marine

insurance.

HS

Harmonized system

f.p.a.a.c.

Free of particular average-American

conditions. See marine insurance.

IBRD

International Bank for Reconstruction

and Development

f.p.a.a.c.

Free of particular average-English

conditions. See marine insurance.

ICA

International commodity agreement or

International Coffee Agreement

FSIS

Food Safety and Inspection Service

IDA

International Dairy Arrangement
IDB

Inter-American Development Bank

LDDC

Least developed developing country

IFC

International Finance Corporation LIBOR

London interbank offered rate

IMF

International Monetary Fund L.T.L.

Less than a truckload lot

lOOA

International Olive Oil Agreement MCA

Monetary compensatory account

IP

Initial payment

MFA

Multi-fiber arrangement

IQ

Import quota. See quota.

MFN

Most-favored-nation treatment

ISA

International Sugar Agreement

MIP

Minimum import price

ITC

U.S. International Trade Commission

MTN

Multilateral trade negotiations

IWA

International Wheat Agreement

L/C

Letter of credit

LASH

Lighter aboard ship. See LASH vessel.

L.C.L.

Less than a carload lot

LDC

Less developed country

NAC

National Advisory Council on

International Monetary and Financial

Policies

NDM

Nonfat dry milk

NFDM

Nonfat dry milk

NIC

Newly industrialized country
NTB

Nontariff barrier

RTC

Ready-to-cook

NVOCC SBM

Nonvessel operating common carrier Soybean meal

OAS

Organization of American States

SDR

Special drawing rights

OAU

Organization of African Unity

SITC

Standard International Trade

Classification

OECD

Organization for Economic Cooperation

and Development

BMP

Skim milk powder. See nonfat dry milk.

OPIC

Overseas Private Investment

Corporation

OSB

Oriented Strandboard. See

particleboard.

PA

Purchase authorization

STR

See U.S. Trade Representative.

TPC

Trade policy committee

TPRG

Trade policy review group. See trade

policy committee.

PL. 480

Public Law 480. See Agricultural Trade

Development and Assistance Act of

1954.

PVO

Private voluntary organization

TPSC

Trade policy staff committee. See trade

policy committee.

TSUSA

"Tariff Schedules of the United States,

Annotated." See Schedule B and tariff

schedule.

QR

Quantitative restriction

UHT

Ultra-high temperature milk

RO/RO

Roll-on/roll-off

UMR

Usual marketing requirement
UNCTAD

United Nations Conference on Trade

and Development

USITC

U.S. International Trade Commission

USTR

U.S. Trade Representative

VAT

Value-added tax

VER

Voluntary export restriction

VRA

Voluntary restraint agreement. See

voluntary export restriction.

WFP

World Food Program

WPA

With particular average. See marine

insurance.
Definitions

Abandonment The evacuation of a vessel by officers and crew such as to constitute relinquishment

of title by owners. In marine insurance, claims for constructive total loss must be

supported by proof of abandonment.

Acceptance

Accession

See banker's acceptance.

The process by which a country becomes a member of an international agreement,

such as the General Agreement on Tariffs and Trade (GATT) or the European Community. Accession to the GATT involves negotiations to determine the specific obligations a nonmember country must undertake before it will be entitled to full GATT

membership benefits.

Accession

compensatory amount

(ACA)

A tax or subsidy imposed on products entering or leaving a country acceding to the

European Community. Intended to prevent distortions in trade between acceding

countries and the original member states by compensating for differences in support prices.

Acre A U.S. and English unit of area equal to 43,560 square feet, or 0.405 hectares.

Addltionality The requirement that shipments under Titles I and III of RL. 480 must be quantities

in addition to the normal requirements of the country of destination. Designed to

prevent the displacement of commercial sales with concessional transactions.

Adjusted c.i.f. price The lowest landed price (including the cost of goods, insurance, and transportation)

for certain commodities exported to the European Community (EC), adjusted for

comparability with an EC quality, and delivered to an EC port, usually Rotterdam.

This price is used to set the variable levy and thus minimum import price for grains.

Adjustment A change in the sale price or other key terms of a contract, arrived at by agreement

between buyer and seller, usually to cover an unforeseen contingency, e.g., goods

of a quality inferior to contract specifications.

Admiralty

Admission temporaire

Refers to maritime law, civil and criminal.

A customs device permitting free importation of dutiable merchandise destined for

reexportation after manufacture or other processing. The purpose is similar to that

of drawback—to place the domestic exporting industry on a more equal level of

competition with a corresponding foreign industry.

Ad valorem duty A duty expressed as a fixed percentage of value.
Advance against

documents A payment made by a buyer prior to delivery of shipping documents.

Affreightment

Aflatoxin

See contract of affreightment.

A highly carcinogenic toxin produced by a fungus which occurs when crops are

stored under warm, humid conditions. Most commonly associated with corn, peanuts, and soybeans. Shipments of grain containing aflatoxin are generally rejected.

Afloat An expression used to refer to commodities that are on a vessel and traveling from

one port to another, as distinct from goods which are on land.

African Development

Bank (AFDB) Established to assist in the economic and social development of the independent

African nations and to promote economic cooperation among them. Membership is

exclusively African.

African swine fever A usually fatal viral disease of swine. Not transmissible to humans. Very similar to

hog cholera. Trade in live hogs and uncooked pork from affected areas is restricted.

African, Caribbean, and

Pacific States (ACP

States)

A group of 60 countries to which special economic relations were extended by the

European Community (EC) as a result of the Lome Convention of 1975. Manufactured goods and some agricultural products from these countries enjoy free entry

into the EC.

Aftosa See foot-and-moutfi disease.

Agency fee A charge paid by a vessel owner while in port to an agent for services such as procuring supplies.

Agency for International

Development (AID) U.S. Government agency responsible for assistance programs in underdeveloped

countries friendly to the United States. Also responsible for administration of Title

programs under RL. 480 and for overseas execution of all RL. 480 programs.

Agreement on Technical

Barriers to Trade This agreement, commonly referred to as the standards code, was reached at the

Tokyo Round of the multilateral trade negotiations and took effect in 1980. Its purpose is to discourage and eliminate discriminatory manipulation of product

standards, testing, and certification activities without restricting the ability of countries to reasonably protect the health, safety, security, environment, or consumer

interests of their citizens. See also General Agreement on Tariffs and Trade.
Agricultural Information

and Marketing Services

(AIMS)

An export expansion program of USDA's Foreign Agricultural Service designed to

function as a liaison between U.S. companies and foreign buyers seeking U.S. food

and agricultural products.

Agricultural Trade

Development and

Assistance Act of 1954

U.S. law which established the Food for Peace or RL. 480 program. Titles I and III

of the program provide for concessional sales of U.S. agricultural products, for

which USDA's Commodity Credit Corporation provides long-term financing (20-30

years) at low interest rates. Title II of the program allows for grants or donations of

U.S. agricultural commodities on a government-to-government basis, through international relief agencies, or through private voluntary organizations.

Agricultural trade office

(ATO)

The Agricultural Trade Act of 1978 directed the establishment of trade offices in major centers of commerce throughout the world. Agricultural trade offices work to develop, maintain, and expand international markets for U.S. agricultural commodities

by serving as centers for export sales promotions and contact points for importers

seeking to buy farm products from the United States.

Alfalfa Major Producers: United States, Canada, Australia, New Zealand, China, Argentina,

Soviet Union. Diseases: Leaf spot, black stem, bacterial wilt, phytophthora root rot,

verticillium wilt. Pests: Potato leafhoppers, clover leaf weevils, alfalfa weevils. Products: Dehydrated or sun-cured meal and pellets, alfalfa hay cubes, ground alfalfa.

All risk insurance A type of marine insurance which covers risks of loss which may occur in the

course of transporting goods from one destination to another.

Almonds Fruit of the almond tree, in the rose family. Major Producers: United States, Spain,

Turkey, Portugal, Morocco. Diseases: Brown rot, shot-hole fungus, blast (bacterial

canker), almond leaf scorch. Products: Almond butter, almond powder.

Alongside The side of the ship. Goods to be delivered alongside are to be placed on the dock

or lighter within reach of the ship's tackle from which they can be loaded aboard the

ship. See also free alongside ship.

Andean Group A group of Latin American countries formed in 1969 to promote regional economic

integration among medium-sized countries. Members include Bolivia, Colombia, Ecuador, Peru, and Venezuela.

Anhydrous milk fat

(AMP)

See butteroil.
Animal and Plant Health

Inspection Service

(APHIS)

USDA agency responsible for the inspection and certification of animals, plants, and

certain related products to meet health and/or sanitary requirements for export from

or import into the United States, as prescribed by the United States and the country

of destination. Also responsible for the inspection of processing facilities in the

United States and in countries that export to the United States.

Antidumping code A code of conduct negotiated under the auspices of the General Agreement on Tariffs and Trade during the Kennedy and Tokyo Rounds of the multilateral trade negotiations that established both substantive and procedural standards for national antidumping proceedings. Stipulates greater uniformity and certainty in the

implementation of those provisions.

Antidumping law Title VII of the U.S. Tariff Act of 1930, as amended, which states that if the U.S. Department of Commerce determines that an imported product is being sold at less

than its fair value, and if the U.S. International Trade Commission determines that a

U.S. producer is thereby being injured, the Commerce Department shall levy antidumping duties equivalent to the dumping margins. See also dumping.

Apples Varieties: Mclntosh, Golden and Red Delicious, Granny Smith, Jonathan, Rome,

Stayman, Winesap. Major Producers: United States, Canada, Mexico, Europe,

China, Taiwan. Diseases: Brown rot, fireblight. Pests: Codling moths, leafhoppers,

aphids, mites.

Apricots Temperate-zone stone fruit related to peach and plum. Major Producers: Southern

Europe, United States, Yugoslavia, Argentina, Australia. Diseases: Brown rot, shothole fungus, oak root fungus. Pests: Codling moths, twig borers.

Arbitrage The simultaneous buying and selling of the same commodity or foreign exchange in

two or more markets in order to take advantage of price differentials. See also

hedging.

Arrivals Imported goods which have been placed in a bonded warehouse and for which duty

has not yet been paid.

Artichokes Edible flowers of artichoke herb. Varieties: (California) Green Globe; (European)

Thistle, Prickly or Green French Artichoke. Major Producers: United States, Italy,

France, Spain, Chile.

Artificial insemination

(Al)

The injection, by artificial rather than natural means, of previously collected semen

into a female in estrus. Most widely practiced with cattle, the use of A! allows a

greater selection of genetic material, thus allowing increased control over herd characteristics. Al is also economical in that a male animal need not be kept for breeding purposes. See also embryo transfer.

10
Asian Development

Bank (ADB)

Formed in 1966 to foster economic growth and cooperation in Asia and to contribute

to the acceleration of the process of economic development of the developing members in the region, collectively and individually.

Asparagus Edible young shoots of the asparagus plant, in the lily family. Major Producers:

United States, Mexico, Taiwan, China, Chile. Units: 30- to 36-pound-pyramid crates.

Diseases: Asparagus rust, fusarium wilt. Pests: Asparagus beetles, cutworms, garden centipedes.

Association of

Southeast Asian Nations

(ASEAN)

Established in 1967 to promote political, economic, and social cooperation among

its six member countries: Indonesia, Malaysia, Philippines, Singapore, Thailand,

and Brunei.

Authority to purchase Used in Far Eastern trade as a substitute for a commercial letter of credit. Permits

the bank to which it is directed to purchase drafts drawn on an importer rather than

on a bank.

Avian influenza (Al) A viral disease of poultry that affects reproduction and egg laying. Outbreaks are

handled by destroying the entire flock and restricting trade in live birds and poultry

products. Highly pathogenic forms are also known as fowl plague.

Avocados Tropical American fruit of the avocado tree, in the laurel family. Major Producers:

United States, Israel, Mexico, Southeast Asia. Units: Exported in 13-pound, onelayer flats. Diseases: Cercospora spot or blotch, anthracnose, diplodia, phomopsis

stem-end rot. Pests: Pyriform scales, avocado scabs, red spiders or spider mites,

avocado tree girdlers, blossom anomalies, thrips, mirids.

Babassu Oil-bearing nut of the babassu palm. Grows only in the wild. Major Producer: Brazil.

Products: Oil (used in soap industry), small amount of residual meal.

Balance of payments

(BOP)

A statement of a nation's international transactions which includes: (1) current accounts, including trade and services; (2) capital accounts, including short- and longterm items; (3) official gold and silver movements; and (4) unilateral transfers of gifts

by governments and individuals.

Balance of trade (BOT) Part of a nation's balance of international payments statement. Measures the difference in value between a nation's merchandise imports and exports over a specified

period.

11
Bale A large compressed, bound, and often wrapped bundle of a commodity, such as

cotton, hops, and hay.

Ballast Material (usually seawater) taken on board to ensure vessel stability. The vessel is

then said to be in ballast and the passage is a ballast passage. A ship is in ballast

when enroute to pick up cargo.

Banker's acceptance A time draft or bill of exchange drawn on and "accepted" by a bank. By accepting

the draft, the bank assumes an unconditional obligation to pay the face amount of

the draft at a fixed or determinable future date.

Banker's draft Draft payable on demand and drawn by or on behalf of the bank itself; it is

regarded as cash and cannot be returned unpaid.

Bank guarantee An assurance, obtained from a bank by a foreign purchaser, that the bank will pay

an exporter up to a given amount for goods shipped if the foreign purchaser defaults. See also letter of credit.

Bank release Negotiable time draft drawn on and accepted by a bank which adds its credit to that

of an importer of merchandise.

Bareboat charter A charter by which a vessel is delivered by the owner to the charterer for a specified period, without crew, stores, insurance, or any other provision. The charterer

runs the ship for the period of the contract. Also known as demise charter, the bareboat charter is rarely used in ordinary commercial practice.

Barge A general name given to flat-bottomed, rigged or unrigged, craft of full body and

heavy construction, specially adapted for the transportation of bulky freight such as

grain, coal, lumber, etc.

Barley Major Producers: United States, Soviet Union, European Community, Canada, Australia, Spain. Units: Metric tons, 48-pound bushels. Grades and classes: U.S. No.

1-3, Six Row and Six Row Blue Malting Barley; U.S. No. 1 Choice and 1-3, Two

Row Malting Barley; U.S. No. 1-5 and Sample Grade, Six Row Barley, Two Row

Barley, and Barley. Diseases: Fusarium, verticillium. Pests: Aphids. Products: Beer,

food, feed.

Barrow A castrated male pig.

12
Barter A form of countertrade whereby goods having offsetting values are exchanged under a single contract, within a specified period of time, and without any flow of

money taking place.

Base price The price used in the European Community as a base or starting point to which additions or deductions may be made for purposes of supporting the Common Agricultural Policy. The base price is a national support price used to determine the level

at which the market is supported. More common terms are currently in use, such as

reference or indicative price for grains, orientation or target price for beef.

Beans Varieties: Navy, Great Northern, Pinto, Pink, Small Red, Black Eye, Red Kidney,

Black Turtle, Small White, Cranberry, Lima, Garbanzo. Major Producers: United

States, Brazil, Mexico, Canada, Argentina, Chile, Yugoslavia, Romania, Turkey.

Grades: USDA, Michigan Department of Agriculture, Rocky Mountain, New York

State Shippers. Diseases: Bacterial blight, common mosaic virus, root rot, white

mold, rust. Pests: Grubs, wireworms, cutworms, Mexican bean beetles, leafhoppers,

bean weevils. Products: Dried beans, canned beans, bean flour.

Beefalo A cross between cattle and American bison, which responds favorably to feed rations by gaining weight rapidly.

Beginning stoclis See carryover.

Berth The place assigned to a vessel in port when anchored or lying alongside a pier,

quay, wharf, etc., where it can load or discharge.

Berth terms See I'mer terms.

Bid The price offered by a buyer or seller for a commodity. Also referred to as an offer.

See also invitation for bids.

Bid bond A guaranty by a firm presenting an offer, in favor of the buyer, as proof of serious

intent to sign a contract if the offer is accepted. The bid bond is a percentage (usually 1 or 2 percent) of the value of the contract or a fixed dollar amount per ton and

may be in the form of a letter of credit or a check.

Bilateral trade

agreement

A trade agreement between any two nations. The agreement may be either preferential (the obligations and benefits apply only to the two countries involved) or mostfavored-nation (the benefits and obligations negotiated between the two countries

are extended to all or most other countries).

13
Bill of entry The document provided to a country's customs office by an importer, which contains

an account of the goods being imported.

Bill of exchange

Bill of lading

See draft.

A document signed by the captain, owner, or agent of a carrier (ship, plane, train,

etc.), furnishing written evidence of commitment to convey and deliver the merchandise. It is both a receipt for and a contract to deliver merchandise.

Binding A commitment, usually negotiated under the General Agreement on Tariffs and

Trade (GATT), made by a government that it will not impose import charges on a

product in excess of a negotiated level. Failure to comply with the commitment gives

affected GATT members the right to withdraw bindings of equivalent value.

Black market Transactions which occur in violation of official regulations.

Blocked currency or

exchange

A currency and/or bank deposit whose use or exchange is restricted by the government of the nation where it is held.

Blueberries Major Producers: United States, Canada, Europe. Units: 11- to 12-pound trays, containing 12 1-pint containers. Diseases: Oak root fungus, powdery mildew, bacterial

leaf spot. Pests: Aphids, mites, leafhoppers.

Bluetongue An insect-borne viral disease of cattle, sheep, goats, and wild ruminants, causing

respiratory and digestive disorders. Particularly fatal to sheep. Many countries will

not allow animal imports from known bluetongue areas.

Boar A mature male pig.

Board foot A unit of measurement of lumber represented by a board 1 foot long, 1 foot wide,

and 1 inch thick.

Bonded warehouse A warehouse in which goods subject to excise taxes or customs duties are temporarily stored until the taxes or duties are assessed. See also in-bond goods.

14
Border tax adjustment The remission of taxes on exported goods, including sales taxes and value-added

taxes, designed to ensure that national tax systems do not impede exports. The

General Agreement on Tariffs and Trade permits such adjustments for indirect taxes

on the condition that these are passed on to consumers, but not for direct taxes

(e.g., income taxes assessed on producing firms). The U.S. Government makes little

use of border tax adjustments because it relies more heavily on income (or direct)

taxes than do most other governments.

Bottom Synonym for vessel or ship. For example, "U.S. bottoms."

Bound rate Most-favored-nation tariff rate resulting from the General Agreement on Tariffs and

Trade negotiations and thereafter incorporated as integral provisions of a country's

schedule of concessions. If a GATT contracting party raises a tariff to a higher level

than its bound rate, the countries adversely affected have the right under the GATT

to retaliate against an equivalent value of the offending country's exports or to receive compensation, usually in the form of reduced tariffs on other products they

export to the offending country.

Bounty An inducement or payment, especially one provided by a government, for

enterprises considered useful to the nation. A subsidy.

Break-bulk cargo Cargo reduced to smaller units, e.g., grain loaded in 50-pound bags rather than in

bulk amounts.

Break-bulk vessel A vessel designed to handle palletized, pre-slung, boxed, or unitized cargo.

Brix A measurement of juice concentration, expressed in soluble juice solids per hundredweight. For example, 100 pounds of 42 degree brix equals 42 pounds of juice

solids and 58 pounds of water.

Broiler A mature young chicken under 16 weeks of age of either sex. Major Producers:

United States, Brazil, Japan, Soviet Union, France, Spain. Units: Pounds, kilograms.

Grades: U.S. Grade A, U.S. Grade B, U.S. Grade C. Diseases: Coccidiosis, fowl

typhoid, paratyphoid, avian influenza, pullorum, Newcastle disease, leukosis. Products: Meat, feathers.

Broker An individual who acts as an intermediary between the buyer and seller of a commodity or service. For example, a broker may act as an intermediary between a

grain company and a grain buyer.

15
Brucellosis A bacterial disease of cattle, swine, sheep, and goats which causes reduction in

breeding and in milk production. Can be transmitted to humans as undulant fever

through direct contact with infected animals or through unpasteurized milk products.

Vaccination is practiced in the United States because the disease is highly contagious. Infected animals must be slaughtered. Trade in live animals from affected areas requires testing of animals prior to export and certification concerning herd

health status.

Brussels Tariff

Nomenclature (BTN)

Buckwheat

Former name of the Customs Cooperation Council Nomenclature.

An herb yielding triangular seeds which are used as fodder and for flour. Producer:

United States. Units: 60-pound bushels. Product: Pancake flour.

Buffalo Any of several types of wild oxen, the most common being bison (American and European) and water buffalo (Asian and African). Water buffalo are utilized as draft animals throughout the world and are not usually slaughtered for meat until old.

Buffer stock Reserve commodities held by a government or an international association to ensure supplies and/or stabilize prices. See also international commodity agreement.

Bulk cargo Loose cargo or freight in large amounts, numbers, weight, or volume.

Bulk carrier An ocean-going, single-deck, dry-cargo vessel of more than 10,000 tons

deadweight.

Buoyage

Buoy dues

Burley

The fee paid by a vessel for the use of mooring buoys, sometimes called buoy hire.

Port charges assessed against a ship for the maintenance of channel buoys.

A type of air-cured tobacco, an important ingredient in American-blend cigarettes.

Bushel A unit of measure containing 2,150.42 cubic inches.

Butter A solid emulsion of milkfat, air, and water made by churning milk or cream. Types:

Salted, unsalted. Major Producers: Soviet Union, India, France, United States, West

Germany. Grades: U.S. Grade AA, A, B.

16
Butteroil Melted and clarified butter from which most of the water has been removed. Also

called anhydrous milk fat. Types: With or without antioxidants. Major Producers: European Community, India, Soviet Union, New Zealand. Units: Pounds, kilograms,

55-gallon drums. Note: The U.S. standard for butteroil is not less than 99.6 percent

butterfat or more than 0.3 percent moisture.

Butterworth tank

cleaning system

A device for cleaning oil tanks by means of high-pressure jets of hot water. Vessel

tanks which carry certain goods such as petroleum must be thoroughly cleaned using this system before grain may be placed in them.

Buy-back A form of countertrade whereby the seller of a product (i.e., machinery, equipment,

or technology) agrees to accept full or partial payment in the form of the resultant

products.

CFS/CFS pier to pier Break-bulk cargo delivered to carrier's container freight station (CFS) to be packed

by carrier into containers and to be unpacked by carrier from the container at carrier's destination port CFS.

CFS/CY pier to yard Break-bulk cargo delivered to carrier's container freight station to be packed by carrier into containers and accepted by consignee at carrier's container yard.

Unpacked by the consignee off carrier's premises, all at consignee's risk and

expense.

CY/CFS yard to pier Containers packed by shipper off carrier's premises and delivered by shipper to carrier's container yard, all at shipper's risk and expense. Unpacked by carrier at the

destination port container freight station.

CY/CY yard to yard Containers packed by shipper off carrier's premises and delivered by shipper to carrier's container yard (CY). Accepted by consignee at carrier's CY and unpacked by

consignee off carrier's premises.

Cabbage Varieties: Danish, Domestic, Pointed, Red, Savoy. Major Producers: United States,

Mexico, Canada. Diseases: Yellows, root rot, bacterial soft rot, black rot, downy mildew. Pests: Aphids, loopers, imported cabbageworms. Products: Raw, coleslaw,

sauerkraut, pickled.

Cable transfer The use of a cablegram to transfer funds to an individual in another country. Funds

are deposited with a domestic bank, which cables instructions to a correspondent

bank abroad to make the funds available to the payee.

Cabotage French for coastal shipping.

17
Cacao Tropical tree whose dried, partly fermented, fatty seeds are used in making chocolate. Major Producers: Ivory Coast, Brazil, Ghana, Nigeria, Cameroon. Grades: Main

crop, mid-crop. Diseases: Black pod rot, witches' broom. Pests: Capsid insects, cocoa moths. Products: Chocolate liquor, cocoa butter, cocoa powder.

Cantaloupe A muskmelon. Major Producers: United States, Mexico, Honduras. Diseases: Powdery and downy mildew, alternarla leaf spot. Pests: Leafminers, aphids.

Capital account Part of a nation's balance of international payments which includes items which are

not part of the current account, including investment and deposit funds, foreign aid,

and military expenditures.

Capital flight The movement of capital out of a nation into foreign securities, gold, or semi-liquid

assets as a result of adverse domestic economic circumstances, such as inflation,

devaluation, threat of war, etc.

Carcass The dressed body of a meat animal, i.e., with the hide, feet, head, tail, and most

internal organs removed.

Carcass weight

equivalent (CWE)

The weight of meat cuts and meat products converted to an equivalent weight of a

dressed carcass. Includes bone, fat, tendons, ligaments, and inedible trimmings

(whereas product weight may or may not).

Cargo Preference Act A U.S. law which mandates that a given percentage of the volume of commodities

financed by the U.S. Government be shipped on U.S. flag vessels. This law has traditionally applied to PL. 480 and other concessional financing or donation

programs.

Carriage Cost and/or manner of conveying goods.

Carrots Major Producers: United States, Canada, Mexico. Units: 23- to 27-pound cartons

containing 2 dozen bunches. Diseases: Black mold, sour rot. Pests: Wireworms,

weevils, beetles, caterpillars, cutworms, leafhoppers, loopers, nematodes.

Carryover The part of current crop production carried over into the next crop year (also

referred to as ending stocks), or that part of the current supplies of a commodity

from the previous year's production (also referred to as beginning stocks).

Cartel An organization of independent producers formed to regulate the production, pricing, or marketing practices of its members in order to limit competition and maximize their market power.

18
Casein The principal protein of milk, with a protein content of at least 95 percent on a dry

basis. Skim milk consists of about 90 percent water and 10 percent solids; casein

constitutes about a third of these solids. Types: Edible, industrial. Major Producers:

New Zealand, France, Poland. Grades: U.S. Extra or U.S. Standard grades for edible casein.

Cash commodity A physical commodity traded in spot markets, as opposed to commodity contracts

traded in futures markets.

Cash letter of credit A letter addressed by a bank to its correspondent bank to make funds available to

the party named in the letter within specified amounts, time limitations, and other

conditions. The sum specified in the letter is deposited with the bank before the letter is issued.

Cash market See spot market.

Castorseed Poisonous seed of the castor plant. Major Producers: Brazil, India, China. Products:

Castor oil (a viscous fatty oil used for industrial purposes), castor meal (a toxic material, used as a mulch in specialized applications).

Cattle Types: Beef (Angus), dairy (Holstein-Friesian), dual purpose (milking shorthorn). Major Producers: India, Soviet Union, United States, Brazil, Argentina. Units: Head.

Diseases: Foot-and-mouth disease, tuberculosis, brucellosis. Pests: Grubs, screwworms. Products: Beef, variety meats, milk, hides, tallow, other byproducts.

Cauliflower Undeveloped flower of a garden plant related to cabbage. Major Producers: United

States, Mexico, Guatemala. Units: 18- to 24-pound cartons of 9-16 trimmed heads.

Grade: U.S. No. 1. Diseases: Bacterial soft rot, brown rot (in transit).

Celery European herb of carrot family. Major Producers: United States, Canada, Mexico.

Units: 55- to 65-pound crates. Diseases: Damping-off, root rot, pink rot, basal stalk

rot, early, late, and bacterial blight, mosaic. Pests: Wireworms, mole crickets, cutworms, caterpillars, serpentine leafminers, aphids, nematodes. Products: Fresh, celery seed.

Centner A unit of weight equal to 50 kilograms in some countries (e.g.. West Germany and

Scandinavia) and 100 kilograms in others (e.g., the Soviet Union).

Central American

Common Market (CACM)

A regional organization formed in 1960 to promote economic development in its

member states through a customs union and industrial integration. Members include

Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

19
Centrally-planned

economy

An economic system in which state directives rather than market forces determine

the production, pricing, and distribution of goods and services. The Soviet Union is

an example of a centrally-planned economy Also referred to as a "nonmarket

economy"

Cereals Plants (as grasses) which yield starchy grain suitable for food. Includes wheat and

rice, as well as coarse grains.

Certificate In an agricultural trade context, a document issued by a recognized entity that identifies one or more specific characteristics of a commodity For example, an official

grain inspection certificate identifies the type, weight, and other characteristics of

the grain to which it is attached. See also generic commodity certificate.

Certificate of origin A document showing the country of production of a shipment. Required by customs

officials of an importing country which applies different tariffs according to the country of origin. The certificate is endorsed by a consular officer of the country of destination at the port of shipment, thereby enabling customs officials at the receiving

port to determine if the goods are eligible for preferential tariff treatment. See also

consular documents.

Charter party The contract between the owner of a ship and the individual or company chartering

it. Stipulates the exact obligations of a shipowner or provides for the outright leasing

of the vessel to the charterer.

Cheese Milk curd separated from the whey Usually made from cow's milk, but also

produced from milk of sheep, goat, horse, water buffalo, camel, and other

mammals. Types: Very hard (grating), hard, semisoft, soft. Major Producers: United

States, Soviet Union, France, Italy West Germany Units: Pounds, kilograms.

Grades: U.S. Grade AA, A, B, C.

Cherries Varieties: (Sweet) Bing, Compact Stella, Lambert Jubilee, Larian, Royal Anne;

(Sour) Early Richmond, North Star Montmorency Units: 18- to 20-pound lugs or cartons. Diseases: Bacterial gummosis, brown rot of blossoms. Pests: Cherry fruit flies.

Chilled cargo In ocean transportation, cargo cooled by a process of refrigeration whereby only a

thin outside layer of the product is cooled. The temperature ranges from 29 degrees

to 42 degrees Fahrenheit.

Citrus canker A bacterial disease of citrus plants which can cause serious damage to trees, including defoliation and fruit loss. Trade in citrus fruit from affected areas is

restricted.

20
Clamshell bucket A device for lifting bulk cargo, consisting of two hinged steel buckets that automatically close as soon as lifting tension is applied.

Clearing accounts A form of countertrade whereby two countries agree to purchase specific amounts

of each other's products over a specific period of time. If an imbalance of trade between the two countries exceeds a preestablished level, trade is stopped and the

imbalance is corrected by a cash payment. Also referred to as switch trading.

Clearing agreement An agreement between two or more countries through their respective central banks

concerning the settlement of trade and payment balances.

Coarse grains Rye, barley, oats, corn, sorghum, and millet.

Coastal trade Trade between ports of the same country as contrasted with trade carried on between foreign ports. Also called coasting trade.

Coaster A vessel employed in coastal trade.

Cocoa See cacao.

Codex Alimentarius

Commission

A joint commission of the Food and Agriculture Organization and the World Health

Organization, comprised of approximately 130 member countries, created in 1962 to

ensure consumer food safety, establish fair practices in food trade, and promote the

development of international food standards. Drafts (nonbinding) standards for food

additives, veterinary drugs, and other substances which affect consumer food

safety. Publishes these standards in a listing called the "Codex Alimentarius."

Coefficient of

equivalence

Used in calculating daily levies on grains imported into the European Community

(EC). The EC official prices relate to grain of a standard EC quality and the quoted

values of grain offered are adjusted according to quality by the addition or subtraction of these coefficients.

Coffee Tropical tree whose seeds are roasted and ground to make coffee. For the International Coffee Agreement, the International Coffee Year is from October 1 through

September 30. Varieties: Arabica, Robusta, Liberica. Major Producers: Brazil, Colombia, Indonesia, Ivory Coast, Uganda. Units: Metric tons or 60-kilogram bags. Disease: Rust. Pests: Berry borers.

Co-financing Joint financing provided to a country by commercial banks and international financing institutions, such as the International Monetary Fund, World Bank, or regional

development banks.

21
Collector of customs In the United States, the chief administrative officer of a customs district. This individual is charged with collecting customs revenue, enforcing customs revenue laws,

and administering laws relating to the documentation of vessels and to commerce

and navigation.

Combined carrier Vessel able to carry ore, oil, or bulk cargoes.

Combo See combined carrier.

Commercial treaty An agreement between two or more countries setting forth the conditions under

which business among the countries may be transacted. Mlay outline tariff

privileges, terms on which property may be owned, the manner in which claims

may be settled, etc.

Commingling The storage or transportation of commodities on a mixed basis, i.e., without physical separation. For example, grain of the same grade but with different destinations,

shipped in the hold of a single vessel.

Committee on Surplus

Disposal (CSD)

The Food and Agriculture Organization (FAO) Consultative Committee on Surplus

Disposal, a subcommittee of the FAO Committee on Commodity Problems, is

charged with monitoring adherence of FAO member countries with the FAO Principles of Surplus Disposal, adopted in 1954. Regularly monitors and consults on food

aid transactions in order to ensure that disposal of surpluses does not interfere with

the normal patterns of production and trade.

Commodity agreement See international commodity agreement.

Commodity Credit

Corporation (CCC)

A U.S. Government-owned and operated corporation responsible for financing major

USDA programs, including price supports, domestic and foreign food assistance,

and export sales programs. Maintains stocks of commoditicîs obtained through the

various price support programs. See also Agricultural Trade Development and Assistance Act of 1954.

Common Agricultural

Policy (CAP)

A set of regulations by which member states of the European Community (EC) seek

to merge their individual agricultural programs into a unified effort to promote regional agricultural development, fair and rising standards of living for the farm population, stable agricultural markets, increased agricultural productivity, and methods

of dealing with food supply security. Two of the principal elements of the CAP are

the variable levy (an import duty amounting to the difference between EC target

farm prices and the lowest available market prices of imported agricultural commodities) and export restitutions, or subsidies, to promote exports of farm goods that

cannot be sold within the EC at the target prices.

22
Common carrier A public or privately owned firm that transports the goods of others for a stated

freight rate. By U.S. Government regulation, a common carrier is required to carry

all goods offered if accommodations are available and the established rate is paid.

Common external tariff

(CXT)

The tariff schedule applied by members of a customs union to nonmember

countries.

Common market A regional grouping of countries which levies common external duties on imports

from nonmember countries, but which eliminates tariffs, quotas, and other miscellaneous government restrictions on trade among member countries. Also referred to

as a customs union and a tariff union. The European Community is probably the

best known current example of a common market. Others include the BelgiumLuxembourg Economic Union, BENELUX (Belgium, the Netherlands, and Luxembourg), the Central African Customs and Economic Union, the East African Community, the West African Economic Community, and the Central American Common

Market.

Compensation Within the General Agreement on Tariffs and Trade, the principle that any country

that raises a tariff above its "bound rate" or otherwise impairs a trade concession

must lower other tariffs or make other trade concessions to compensate countries

whose exports are affected.

Compensatory tax A tax imposed by the European Community on certain imported fruits, vegetables,

wine, and fish when the price of the imported product falls below the reference

price.

Complementary imports Imports of commodities not produced in the importing country. For the United

States, commodities such as tea, bananas, or coffee would be complementary or

noncompetitive imports.

Conasupo Compania Nacional de Subsistencias Populares, S.A., the official Mexican Government agency responsible for ensuring adequate food supplies for the country and,

until 1985, the sole importer of basic food and foodstuffs for Mexico. Since then, the

Mexican Government has allowed private companies to import basic grains,

oilseeds and products, and tallow, although they still maintain control through a system of prior import licensing for these and other basic products.

Concession In the General Agreement on Tariffs and Trade (GATT) negotiations, a reduction a

country offers to make in its own tariff and nontariff import barriers to induce other

countries to reciprocate. A key concept of the GATT

23
Concessional sale A sale in which the buyer is allowed payment terms which are more favorable than

those obtained in the open market. Under RL. 480, the amount of concession is

determined by the size of the initial payment, the length of the repayment and grace

periods, and the interest rates charged on the principal. See also Agricultural Trade

Development and Assistance Act of 1954.

Conference liner

Consignee

See liner conference.

The person or firm named in a contract of affreightment to whom goods have been

consigned or turned over.

Consignment Goods shipped to an agent on the understanding that they will be properly looked

after and sold at the best possible price. The consignor retains ownership.

Consignor The person or firm named in a contract of affreightment as the one from whom the

goods have been received for shipment.

Consortium An agreement under which several firms, institutions, or nations join together for

some common purpose.

Consul An official appointed by a government to reside in a foreign country to represent the

commercial interests of the citizens of the appointing country.

Consular documents Bills of lading, certificates of origin, or other special certificates or invoice forms that

bear the official signature of the consul of the country of destination.

Consular fee A payment charged by a consular officer in an exporting country for certifying that

an invoice for merchandise is correct.

Consular invoice An itemized list of goods shipped, certified by the consul of the country for which

the merchandise is destined. The invoice is used by customs officials of the country

of entry to verify the value, quantity, and nature of the merchandise imported and to

collect revenue.

Container A uniform, sealed, reusable metal "box" (generally 40 feet in length, able to hold

about 40,000 pounds) in which merchandise is shipped by vessel or rail. The use of

containers (or containehzation) in trade is generally thought to require less labor

and reduce losses due to breakage, spoilage, and pilferage, compared to more traditional methods of shipment. See also break-bulk cargo.

24
Container freight station

(CFS)

The location at the loading port designated by a carrier for receiving cargo to be

packed into containers by the carrier. At discharge ports, the location designated by

carriers for unpacking and delivery of cargo.

Container ship

Container yard (CY)

A ship specially constructed to handle containerized cargo.

The location in the port terminal area designated by a carrier for receiving, assembling, holding, storing, and delivering containers. Also where containers may be

picked up by shippers or redelivered by consignees.

Contracting party (CP) A country that has signed the General Agreement on Tariffs and Trade (GATT) and

has accepted its specified obligations and benefits. As of 1986, there were 92 contracting parties to the GATT

Contract of

affreightment

A contract to hire a ship, or part of it, to carry goods.

Convertible currency The currency of a nation which may be exchanged for that of another nation without

restriction. Also referred to as hard currency.

Convertible local

currency credit

A RL. 480 credit sale in which installments are paid in dollars or, at the option of the

U.S. Government, in currencies that can be converted into dollars. See also Agricultural Trade Development and Assistance Act of 1954.

Cooperator program A program administered by USDA's Foreign Agricultural Service which coordinates

market development programs with over 50 nonprofit commodity trade associations

to promote U.S. agricultural products abroad.

Copra Dried coconut meat, used in the extraction of coconut oil. Major Producers: Philippines, Indonesia, India, Malaysia. Products: Coconut oil (used in baking and industry), copra meal.

Corn Major Producers: United States, China, Brazil, Argentina, South Africa, France, Romania, Yugoslavia, Soviet Union, Thailand. Units: Metric tons, 56-pound bushels.

Grades and classes: U.S. No. 1-5 and Sample Grade, Yellow, White, and Mixed

Corn. Diseases: Smut, leaf blight, various fungi. Pests: Corn borers, cutworms, wireworms. Products: Meal, high fructose syrup, flour, gluten, corn starch, ethanol, feed.

Corn gluten A byproduct of wet milling of corn. Used as a medium-protein (20-22 percent),

medium-fiber (10 percent) feedstuff. Products: Oil, meal.

25
Cost and freight

(c & f or c.a.f.)

Terms of sale whereby the seller's price includes the cost of the goods being sold

and all transportation costs, excluding insurance expenses, to the named port of

destination. The seller is liable for the goods until they arrive in the destination port.

Cost, insurance, and

freight (c.i.f.)

Terms of sale whereby the seller's price includes the costs of the goods being sold

and all transportation charges, including insurance expenses, to the named point of

destination. The seller's liability for risk ends after the goods have been shipped

and a bill of lading or equivalent document proving such shipment has been obtained by the buyer. The buyer's liability begins when the goods have arrived at the

destination point.

Cotton Varieties: Deltapine, Upland-Stoneville, Acala, Lankart, Paymaster, Tomcat, Pima

(S-5 and S-6). Major Producers: China, United States, Soviet Union, India, Pakistan, Brazil, Turkey, Egypt. Units: Running bales, 480-pound bales, metric tons.

Grades: Vary according to country and type. Disease: Wilt. Pests: Boll weevils, bollworms, whiteflies. Products: Yarn, fabrics, finished garments.

Cotton lint The fibers separated from the cottonseed in the ginning process.

Cottonseed Seed of the cotton plant. Two pounds of cottonseed are produced for each pound of

cotton fiber. Major Producers: United States, Soviet Union, China, India. Products:

Edible cottonseed oil, cottonseed meal.

Council of Arab

Economic Unity (CAEU)

Established in 1964 to promote an Arab common market and joint commercial ventures. Membership is the same as that of the League of Arab^tates and includes

Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania,

Morocco, Oman, the Palestine Liberation Organization, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, North Yemen, and South Yemen.

Counter-purchase A form of countertrade whereby the exporter agrees to make reciprocal purchases

of products offered by the importer within a specified period of time.

Countertrade Any trade transaction of goods or services without the exchange of money. Forms

include barter, buy-back or compensation, counter-purchase, offset requirements,

swap, switch, or triangular trade, evidence or clearing accounts.

Countervailing duty

(CVD)

Additional levy, permitted under the General Agreement on Tariffs and Trade, Article

VI, imposed on imported goods to offset subsidies provided by the government of

the exporting country. A wide range of practices are recognized as constituting subsidies that may be so offset. Under U.S. law, countervailing duties can only be imposed after the U.S. International Trade Commission has determined that the imports are causing or threatening to cause material injury to a U.S. industry.

26
Crawling peg A process by which a nation makes frequent small changes in the rate at which its

currency officially trades with that of other nations. Also referred to as a sliding peg.

Credit guarantees An agricultural export credit guarantee program of USDA's Commodity Credit Corporation (CCC) since 1981. Under this program, CCC protects the U.S. exporter or financial institution against loss due to nonpayment by a foreign buyer. Maximum

credit guarantee coverage period is 3 years under GSM-102 and up to 10 years

under GSM-103. The amount of coverage, including the interest rate and the guarantee fee, is established in the Office of the General Sales Manager and varies by

country.

Creditor nation Country with a balance of payments surplus.

Crop year The year in which a crop is harvested, as opposed to a marketing year, which refers

to the 12-month period following harvest.

Cucumbers Fruit of a vine of the gourd family. Types: Field-grown slicing, pickling, forcing or

greenhouse. Major Producers: United States, Mexico. Units: 50- to 55-pound bushels, cartons, or crates, 28- to 32-pound lugs. Diseases: Scab, anthracnose, downy

and powdery mildew, fungi, viruses. Pests: Cucumber beetles, pickleworms. Products: Fresh, pickled.

Cure To prepare meat, fish, tobacco, hides, or lumber for preservation, especially by salting or drying.

Currency-use payment

(CUP)

A local currency payment under a PL. 480, Title I, agreement made to the U.S.

Government at the time of commodity delivery. An advance payment of the first installment due under the agreement. See also initial payment.

Current account Part of a nation's balance of payments which includes the value of all goods and

services imported and exported, as well as the payment and receipt of dividends

and interest.

Customs The governmental agency in a country authorized to collect tariffs or duties on imported and, less commonly, exported goods.

Customs classification A detailed classification, coding system, and description of goods that enter into international trade. Used by customs officials as a guide in determining which tariff

rate applies to a particular import item.

27
Customs Cooperation

Council Nomenclature

A customs classification system used by most countries, based on the older Brussels Tariff Nomenclature. See also harmonized system.

Customs house broker A person or firm licensed to enter and clear goods through customs. The duties of a

broker include preparing the entry form, advising the importer on duties to be paid,

advancing duties and other costs, and arranging for delivery.

Customs union An agreement between two or more countries to remove trade barriers with each

other and to establish common tariff and nontariff policies with respect to imports

from countries outside of the agreement. The European Community is the most

well-known example.

Customs valuation The determination of the value of imported goods for the purpose of collecting ad

valorem duties. Made by customs officials, based on the declared value of the

goods.

Dead freight The difference between the amount of freight that a charterer has contracted to ship

and the amount actually shipped. So called because the charterer is charged the

cost of shipping the full quantity of the original contract.

Deadweight capacity

Deadweight cargo

The weight of a ship minus all fuel, cargo, and stores.

A cargo which measures less than 40 cubic feet per ton.

Debt service The charges currently payable on a debt (usually for a given year), including interest

charges and principal payments.

Debtor nation Country with a balance of payments deficit.

Deck cargo All goods carried on the exposed decks of a vessel. Does not refer to cargo carried

on covered-in deck spaces such as bridges, etc. Also called deck load.

Deep tank Portions of a vessel's hold partitioned off and specially constructed to carry water

ballast as well as dry cargo.

Deficiency payments In the United States, a direct payment to producers of certain commodities by

USDA's Commodity Credit Corporation (CCC), equal to the difference between the

CCC's target price and the actual market price for each of those commodities.

28
Demise charter See bareboat charter.

Demurrage The compensation made to a shipowner for the detention of a vessel beyond the

time allowed for loading, unloading, or sailing, as specified in the charter party.

Despatch A payment or bonus paid to a shipowner for loading or unloading cargo in less than

the time allowed, as specified in the charter party.

Devaluation Downward adjustment (by a government) of the exchange rate of a nation's currency

in order to address balance of payments problems.

Developed country Generally refers to a country which has achieved sustained economic growth, high

per capita gross national product, and an above-average standards of living. Also

referred to as an industrialized country. See also less developed country, least developed developing country, and newly industrialized country.

Dillon Round The fifth multilateral round of trade negotiations held under the General Agreement

on Tariffs and Trade during 1960-1961 in Geneva.

Dispute settlement Any of a number of procedures set out in the General Agreement on Tariffs and

Trade (GATT) for legal redress in cases of violation, nullification, or impairment of

trade benefits. The most important articles in this regard are Articles XXII and XXIII.

Article XXII obligates contracting parties to consult on GATT matters whenever any

other member so requests. Article XXIII provides the same opportunity for bilateral

consultations, as well as the establishment of a panel of experts to study the matter.

Dockage A factor in the grading of grains and oilseeds includes waste and foreign material

which can be readily removed by the use of screens, sieves, and other cleaning devices. The term is also used to describe the amount of money deducted due to a

deficiency in quality.

Dock receipt A receipt given by a steamship company for goods delivered at the wharf before

shipment. Later exchanged for a bill of lading.

Documentary

instructions

Description and enumeration of shipping documents which the buyer requires from

the seller.

29
Documents against

acceptance (D/A)

Instructions given to a bank by an exporter stating that the documents attached to a

draft (which are specified in the sales contract, e.g., bill of lading, inspection certificate, etc.), are deliverable to the importer only upon acceptance of (i.e., payment

against) the draft. Because possession of the documents is necessary to take delivery, payment by the importer is ensured.

Dollar credit sale A RL. 480 concessional credit sale of U.S. agricultural commodities to be paid in

dollars over a maximum of 20 years. See also Agricultural Trade Development and

Assistance Act of 1954.

Downy mildew A specific type of fungal disease which adversely affects a wide variety of fruits,

vegetables, and grains.

Draft (or draught) (1) A payment drawn or the documents used to request payment, through a bank,

by one party against the financial assets of another party. In its trade context, the

draft is drawn by the exporter against the assets of the foreign buyer for the value of

the goods being sold and exported. A banker's draft is payable on demand and

drawn by or on behalf of the bank, and is regarded as cash and cannot be returned

unpaid. A fight draft calls for immediate payment, a date draft for payment on or

after a stipulated date, and an arrival draft for payment upon arrival of the merchandise. A clean draft is drawn without collateral documents, whereas a documentary

draft is supported by such papers as the bill of lading, insurance certificate, etc. (2)

The distance between the keel of a ship and the water surface. A safe draft allows

the vessel to negotiate shallow water and maintain its stability.

Drawback The refunding by a government, in whole or in part, of customs duties paid on imported merchandise that is then manufactured into a more finished article for reexport. See also admission temporaire.

Dressed The body of an animal without hide/feathers, head, feet, tail, and most internal organs. The organs removed from a carcass or bird, and the precise definition of

dressed weight, vary from country to country.

Dry weight

Dual exchange rate

Dual pricing

The weight of tobacco as it is usually traded internationally.

See multi-tier system.

The selling or buying of an identical product for different prices in different markets.

For example, the sale of a commodity at a lower price in the international market

than in the domestic market.

30
Dumping The sale of a commodity in a foreign market at less than fair value. Generally recognized as an unfair trade practice because it can disrupt markets and injure producers of competitive products in an importing country. When that happens, Article VI

of the General Agreement on Tariffs and Trade permits the imposition of special

antidumping duties equal to the difference between the price sought in the importing country and the normal value of the product in the exporting country.

Dutiable list That part of a country's tariff schedule consisting of duties greater than zero.

Duty

Eggplant

See tariff.

Fruit of a perennial herb. Major Producers: United States, Mexico. Units: 20- to 23-

pound cartons or crates packed by size (18's and 24's). Diseases: Fruit rot, verticillium wilt. Pests: Nematodes, flea beetles, aphids, lace bugs, Colorado potato beetles, red spiders, leafminers.

Eggs Types: Chicken, duck, turkey, or goose, for hatching or table use. Major Producers:

Soviet Union, United States, Japan. Units: Pieces, dozens, cases. Grades: U.S.

Grade AA, A, B, and U.S. Nest Run Grade for shell eggs. There are no U.S. grades

for egg products. Diseases: Pullorum, paratyphoid, leukosis, egg drop syndrome,

mycoplasmosis. Products: Albumin, frozen or dried egg solids.

Elevator See silo.

Embargo

Embryo

Any prohibition on commerce imposed by law.

An animal in the earliest stages of development (a fertilized mammal egg). Surgically or nonsurgically removed from donor animal and transferred to recipient animal for genetic and species improvement. Usually shipped in a frozen state.

Embryo transfer (ET) The transplantation of a fertilized embryo into a recipient female animal for the duration of gestation. Most widely practiced with cattle, it has advantages over artificial

insemination in that farmers can select genetic material, both male and female, superior to that of their own herds.

Enabling clause Part I of the General Agreement on Tariffs and Trade (GATT) framework which permits developed country members to give more favorable treatment to developing

countries and special treatment to the least developed countries, notwithstanding

the most-favored-nation provisions of the GATT

31
Ending stocks

Entrepot

See carryover.

An intermediary center of trade where goods are stored temporarily for distribution

within a country or for reexport.

Entry price In the European Community, the calculated price of certain imported fruits and vegetables and certain fish at the border.

Entry statement A description of the kind, quantity, and value of goods imported, together with duties due and declared before a customs officer.

Escape clause A provision of U.S. trade law which allows the temporary increase of tariffs or the

imposition of quantitative restrictions, in order to protect an industry threatened with

injury from increased imports. See also countervailing duty.

Eurodollar U.S. dollar-denominated deposits in banks and other financial institutions outside of

the United States. Originating from, but not limited to, the large quantity of U.S. dollar deposits held in western Europe.

European Agricultural

Guidance and Guarantee

Fund (EAGGF)

A fund, contributed to by all European Community member countries, used to finance the Common Agricultural Policy. Also known by its French abbreviation

FEOGA.

European Community

(EC)

A regional organization created in 1958 providing for the gradual elimination of customs duties and other intraregional trade barriers, a common external tariff against

other countries, and gradual adoption of other integrating measures, including a

Common Agricultural Policy and guarantees of free movement of labor and capital.

Of the current 12 members, the original 6 were Belgium, France, West Germany,

Italy, Luxembourg, and the Netherlands. Denmark, Ireland, and the United Kingdom

became members in 1973, Greece acceded in 1981, and Spain and Portugal in

1986.

The term European Communities is used to refer to three separate regional organizations consisting of the European Coal and Steel Community (ECSC), the European Atomic Energy Community (Euratom), and the European Economic Community. These have been served since 1967 by common institutions—the EC

Commission, the EC Council, the European Parliament, and the Court of Justice of

the European Communities. The 12 member states of the EC are also members of

the ECSC and Euratom.

32
European currency unit

(ECU)

A weighted average of all European Community (EC) currencies (except for those of

Spain and Portugal), which fluctuates against third country currencies and is used

for internal EC accounting purposes. In agriculture, the ECU is the unit of account

in which common farm prices, subsidies, and import levies are established. Similar

to the previously used European unit of account.

European Free Trade

Association (EFTA)

A regional free trade area established in 1958, concerned with the elimination of

tariffs with respect to manufactured goods originating in and traded among themselves. Agricultural products, for the most part, are not included in the EFTA schedule for tariff reductions. Members include Austria, Finland, Iceland, Norway, Sweden, and Switzerland.

European monetary

system (ElVIS)

A monetary system intended to move Europe toward closer economic integration

and avoid the disruptions in trade that can result from fluctuations in currency exchange rates. The EMS member countries deposit gold and dollar reserves with the

European Monetary Cooperation Fund in exchange for the issuance of European

currency units. Established in 1979 to succeed the former European Community

(EC) snake. All EC members except Greece and the United Kingdom participate in

the exchange rate mechanism of the EMS.

Ex (point of origin) The point at which a price of a good is quoted, such as ex factory, ex mill, ex warehouse, etc.

Ex (tariff number) When used in conjunction with a tariff classification number and text indicating a

particular product or list of products, indicates an excerpt from the specified tariff

item. This notation is often used in discussions of tariff reductions, bindings, etc.

For example, tariff classification number 16.01-000, includes sausage of all meats,

whereas the specification "ex 16.01-000, sausage of bovine origin" would include

only bovine sausage. See also Customs Cooperation Council Nomenclature.

Excess foreign

currencies

Foreign currencies which have accrued to the U.S. Government from sales of farm

products under RL. 480 or other programs, which are in excess of U.S. Government

needs for that currency in that country (e.g., foreign currency used for U.S.

embassy operating costs).

Exchange rate The ratio of prices at which the currencies of nations are exchanged.

Exchange restrictions Official limitations on the buying and selling of a nation's currency.

Export credit insurance Insurance coverage which permits a seller who is granting credit terms to a foreign

buyer to shift most of the nonpayment risks to the insurer.

33
Export declaration A form filed by an exporter or an exporter's agent at the port of departure, which

states the content of goods being exported. Used for the compilation of export statistics and as an export control document.

Export-Import Bank A U.S. Government institution which administers programs to assist the U.S. exporting community, including direct lending and the issuance of guarantees or insurance to minimize risk for private banks and exporters. Also known as the Eximbank.

Export Incentive

Program (EIP)

A program within USDA's Foreign Agricultural Service which assists private U.S.

firms in promoting their branded products overseas.

Exportkhleb The official entity of the Soviet Ministry of Foreign Trade responsible for imports and

exports of food and feed grains, pulses, flour, oilseeds and products, and seeds and

seedlings.

Export license A government document authorizing exports of specific goods in specific quantities

to a particular destination. This document may be required in some countries for

most or all exports and in other countries only under special circumstances.

Export limitation Any restriction on the quantity of a country's exports. A RL. 480, Title I, agreement

limits exports from the recipient country to commodities which are similar to those

being supplied by the United States.

Export quota agreement A mechanism for regulating trade in a commodity, whereby export quantities are

allocated among member exporting countries. To prevent nonparticipating exporters

from undermining such an agreement, importing countries may agree to limit imports from nonmember exporting countries. See also international commodity

agreement.

Export restitution Direct export subsidy payment, used to promote exports of agricultural goods by the

European Community (EC). So called because in the EC view the payment refunds

the difference between the domestic market price and the lower price needed to

export.

Export subsidy Direct or indirect compensation provided by a government to private commercial

firms in order to promote the export of domestic products. Often called payment,

differential, assistance, compensation, aid, restitution, etc., to avoid negative connotations. Under Article XVI of the General Agreement on Tariffs and Trade, export

subsidies are considered unfair competition and countervailing duties are allowed

on subsidized products. Indirect methods of export subsidies include governmentsubsidized financing for exports, export promotion and information activities, tax

benefits, or other assistance that may lead to lower than normal costs for exported

goods.

34
Extraction rate The proportion by weight of a processed product to its raw material. For example,

an extraction rate of 72 for wheat means that 100 pounds of that wheat will produce

72 pounds of flour and 28 pounds of wheat byproducts. Varies according to the

commodity and the crushing/milling facilities. See Appendices.

Fair average quality

(FAQ)

A contractual term used in the grain trade regarding determination of quality of

goods shipped. Upon discharge at destination, an average sample is drawn from

the vessel which is compared with the FAQ standard of the country of origin for the

month during which the bill of lading was issued. An unofficial, nonnumerical grade

that does not specify characteristics such as moisture, protein content, or foreign

material.

Fair share A requirement of the RL. 480 program that the United States should benefit equitably from any increase in commercial purchases of agricultural commodities by recipients of U.S. food aid.

Fair value The reference against which U.S. purchase prices of imported merchandise are

compared during an antidumping investigation. Generally expressed as the

weighted average of the exporter's domestic market prices, or prices to third countries during the period of investigation.

Farm sale weight (FSW) The weight of tobacco as it is sold by the grower after curing. Further conditioning

is usually needed before it can be used.

Farrow To give birth to a litter of pigs.

Federal Grain Inspection

Service (FGIS)

A service and regulatory agency of the USDA, responsible for the establishment of

official U.S. standards for grain, oilseeds, rice, and pulses, administration of these

standards by official inspection personnel, and regulation and certification of the

weighing of grain. All grain exported from the United States must be officially inspected and weighed by the FGIS.

Feed grains Corn, sorghum, barley, and oats as well as feed wheat and feed rye. Also called

coarse grains.

Fiberboard A material made by compressing wood fibers into stiff sheets, usually with bonding

agents or other materials added to increase strength or to achieve some other property. Major Producers: United States, Canada. Units: Thousand square feet. Products: Furniture, sheathing.

Fiber maturity A quality characteristic of cotton which is a measure of the thickness of the fiber

walls.

35
Fiber strength A measure of cotton quality which shows how much weight the fiber can handle

before breaking.

Filberts Also called hazelnuts. Major Producers: United States, Turkey, Italy, Spain. Grades:

Giant, Jumbo. Diseases: Crown rot, oak root fungus.

Firm offer A definite offer, written or verbal, that cannot be canceled. Also called an irrevocable offer.

Flax Fiber of the flax plant, from which linen is made. See also linseed. Major Producers: Argentina, Canada, India, Soviet Union, United States. Products: Linen; inedible, industrial linseed oil; linseed meal.

Flexible exchange rates

Floating elevator

The uncontrolled, market-determined rate of exchange of a nation's currency.

Mechanical device placed on a floating platform used for transferring grain between

ships and barges.

Flour Types: High and low protein. Major Producers: All major wheat producers or importers. Grades: Based on protein and extraction rates. Products: Bread, pastry, pasta.

Flue-curing Most important method of curing tobacco in the United States, whereby heated air

is run through the flues of the curing barn. Curing time takes about 5-7 days.

Fobbing The physical handling of bulk grain from alongside an elevator. The bulk grain

passes from a barge, railroad car, or truck, through an elevator, to a f.o.b. vessel,

i.e., into a vessel tied up at the elevator's loading berth. Includes in-elevation, possible conditioning and blending, and out-elevation, to the end of the loading spout; it

does not include stowage and trimming of the grain loaded to the vessel. Also refers to the cost of accomplishing the fobbing operation, not including storage.

Food Aid Convention See International Wheat Agreement.

Food and Agriculture

Organization of the

United Nations (FAO)

A United Nations organization, founded in 1945, which aids less developed countries in agricultural production and distribution, food processing, nutrition, fisheries,

and forestry.

Food for Peace Program See Agricultural Trade Development and Assistance Act of 1954.

36
Food Safety and

Inspection Service

(FSIS)

USDA agency responsible for the inspection and certification of meat and poultry

products to meet health and sanitary requirements for export from or import into the

United States, as prescribed by the United States and the country of destination.

Also responsible for the inspection of processing facilities in the United States and

in countries that export to the United States.

Foot-and-mouth disease

(FMD)

A viral disease of ail cloven-footed animals characterized by ulcérations and sloughing of the epithelium of the mucous membranes. Rarely transmitted to humans, it

can be spread by direct or indirect contact with an infected animal or by milk, meat,

or slaughter byproducts of an infected animal. Because the disease is highly contagious, infected animals are usually destroyed. Trade in animals and meat products

from areas with FMD is restricted. Also called hoof-and-mouth disease and aftosa.

Force majeure An event, such as an earthquake or typhoon, which is outside the control of parties

to a contract. A force majeure clause exempts the parties from their obligations under the contract if such an event occurs.

Foreign Agricultural

Service (FAS)

The USDA agency responsible for facilitating exports of U.S. agricultural goods.

Maintains a global network of agricultural officers as well as a Washington-based

staff to analyze and disseminate information on world agriculture and trade, develop

and expand export markets, and represent the agricultural trade policy interests of

U.S. producers in multilateral forums. Also administers USDA's export credit and

concessional sales programs.

Foreign Credit Insurance

Association (FCIA)

An association of private insurance companies and the Export-Import Bank which

provides export credit insurance for short- and medium-term transactions. Both political and commercial risks are covered.

Foreign exchange

controls

Government limitations or restrictions on the use of certain types of currency, bank

drafts, or other means of payment in order to regulate imports, exports, and the balance of payments.

Foreign material A factor in grading commodities, the exact definition of which varies somewhat from

commodity to commodity, generally defined as being waste material larger than

dockage, or that which cannot be mechanically removed, i.e., via screens, sieves,

etc.

Foreign trade zone Special commercial and industrial areas in or near ports of entry where foreign and

domestic merchandise, including raw materials, components, and finished goods,

may be brought in without being subject to payment of customs duties. Merchandise brought into these zones may be stored, sold, exhibited, repacked, assembled,

sorted, graded, cleaned, or otherwise manipulated before being reexported, or

transferred into the national customs territory. Also called free trade zone.

37
Forward contracting Cash transaction under which the buyer and seller agree on the delivery of a specified quality and quantity of a commodity at a specified future date. The price may

be established beforehand or at delivery.

Forwarder An agent who receives goods for transportation, delivers them to the carrier, and

performs various services for the shipper. He is neither a consignor nor a carrier

and is not paid for the transportation. Forwarding agents provide information to the

shipper with regard to inland and ocean freight rates, insurance, and customs requirements. They issue shipping instructions, book freight, establish consular invoices and other shipping documents, arrange for storage, etc. Also called a freight

forwarder or forwarding agent.

Fraudulent entry Deception in the valuation or classification of goods at the time of entry and

appraisal.

Free alongside ship

(FAS)

A price quotation that includes all costs of transportation and delivery of the goods

to the dock. The buyer is then responsible for having the goods loaded on board

and shipped. See also alongside.

Freeboard marks The lines and letters on a ship's sides indicating the maximum permissible load line

in accordance with the International Leadline Convention (1930). Also called Plimsoll line.

Free in (Fl) Contract term which specifies that loading costs shall be paid by the buyer of the

cargo and not by the charterer.

Free in and out (FIO) Contract term which specifies that loading and unloading costs shall be paid by the

buyer of the cargo and not by the charterer.

Free of particular

average (f.p.a.)

Free on board (f.o.b.)

See marine insurance.

A price quotation that indicates that the seller assumes all responsibilities and costs

for delivering the goods and loading them on a stated carrier at a specific location.

For example, f.o.b. factory Detroit, f.o.b. cars New York, and f.o.b. ship Norfolk.

Free out (FO) Contract term which specifies that unloading costs shall be paid by the buyer of the

cargo and not by the charterer.

Free port A port of entry and its surrounding localities into which foreign merchandise may be

brought without being subject to the payment of customs duties. Examples of free

ports are Gibraltar, the Canary Islands, Aden, and Manaus, Brazil.

38
Free stocks Stocks of commodities available for purchase in commercial markets. Excludes any

stocks held under government or private reserve programs.

Free trade International trade unhampered by regulations and restrictions, including tariff and

nontariff barriers.

Free trade area A cooperative arrangement by a group of nations whereby trade barriers are

removed among the members, but each may maintain its own trade regime with

nonmember nations. The best example is the European Free Trade Association. For

comparison, see customs union.

Free trade zone See foreign trade zone.

Freight forwarder See forwarder

Fresh weight equivalent The weight of processed fruits and vegetables converted to an equivalent weight of

the fresh produce. Varies widely from season to season and among localities.

Friendly country Under the RL. 480 program, any country except those dominated or controlled by a

Communist government. RL. 480 agreements may be entered into only with friendly

countries.

Full berth terms (FBI) See iiner terms.

Futures contract An agreement between two people, one who sells and agrees to deliver, and one

who buys and agrees to receive, a certain kind, quality, and quantity of product to

be delivered during a specified delivery month at a specified price. Contracts are

traded in organized markets called commodity futures exchanges.

Futures market Any commodity exchange that trades in futures contracts.

Garbanzo bean The dry, threshed seed of an Asiatic leguminous herb. Also known as chick pea.

See also beans.

Garlic European herb of the lily family, the bulb of which is used as flavoring. Major Producers: United States, Mexico, Guatemala, Chile, Argentina. Diseases: Blue mold

rot, waxy breakdown, Aslo aspergillus, fusarium rot, gray mold rot. Products: Fresh,

dehydrated.

39
Gate price See minimum import price.

General Agreement on

Tariffs and Trade (GATT)

A multilateral instrument, established in 1948, and subscribed to by 92 governments

which together account for more than 80 percent of world trade. Its primary objective is to liberalize world trade and place it on a secure basis, thereby contributing

to global economic growth and development. The only principal multilateral agreement that delineates rules for international trade, it provides a framework within

which international trade negotiations are conducted and trade disputes resolved.

See also Agreement on Tectinical Barriers to Trade and multilateral trade

negotiations.

General cargo Cargo which is composed of miscellaneous goods carried in units or small quantities which vary in weight, size, condition, nature, and class,,

Generalized System of

Preferences (GSP)

A framework under which developed countries give preferential tariff treatment to

manufactured goods imported from certain developing countries. It is one element

in a coordinated effort of the industrial trading nations to bring developing countries

more fully into the international trading system. The U.S. scheme is a system of

nonreciprocal tariff preferences for the benefit of these countries.

Generic commodity

certificate

A dollar-denominated certificate issued by the Commodity Credit Corporation (CCC)

which is redeemable for commodities held in inventory by the CCC. Frequently referred to as a payment-in-kind (PIK) certificate, the generic commodity certificate is

used as payment for various USDA programs, is transferable, and contains an expiration date.

Germination The percentage of seeds capable of producing normal seedlings under ordinarily

favorable conditions.

Ghee A clarified butter that remains when cow or buffalo milk butter is melted, boiled, and

strained. Common in India.

Gilt An immature female pig who has not yet had a litter of pigs. See also farrow.

Ginseng An aromatic root valued in Asia as a medicine. Types: American, Asian. Major Producers: United States, Korea, China, Japan, Canada. Disease: Root rot. Products:

Drinks, extracts, capsules.

Goats Types: Milk (Alpine, Anglo-Nubian), meat (Nubian), fiber (Angora). Major Producers:

North Africa, Middle East, India. Units: Head. Diseases: Coccidiosis, mastitis, bluetongue. Products: Goatmeat, milk, hair, skin.

40
Grain The seed or fruit of a cereal grass.

Grandfather clause The General Agreement on Tariffs and Trade (GATT) provision that allows the original contracting parties not to apply general GATT obligations to domestic legislation

which is inconsistent with GATT provisions, but which existed before the GATT was

signed. Newer members may also "grandfather" domestic legislation if that is

agreed to in negotiating the terms of their accession. See also residual restriction,

Section 22, and Vi/aiwer

Grapefruit Major Producers: United States, Israel, Cuba, Argentina, Cyprus. Diseases: Tristeza,

canker, rot, fungi, viruses. Pests: Citrus mites, citrus scales, tropical fruit flies. Products: Segments, single strength and concentrated juice, pectin, essential oil, animal

feed.

Grapes, table Varieties: (European) Emperor, Flame Seedless, Ribier, Cardinal; (American and hybrids) Concord, Seneca, Delaware. Major Producers: European Community, United

States, Canada, Mexico, Argentina, Chile, South Africa. Units: 22- to 23-pound lugs

or cartons. Disease: Powdery mildew. Pests: Leafhoppers, leaf rollers, mites. Products: Juices, wines, jellies, jams.

Grease Tallow or lard with a titre (melting point) generally below 40 degrees centigrade.

May often contain some fat of vegetable origin if processed from restaurant grease.

Green rate of exchange An administratively determined exchange rate, used by the European Community

(EC) to convert agricultural prices from the European currency unit to the currencies

of member countries. Established to ensure that farm prices remain uniform

throughout the EC despite the devaluation or revaluation of individual currencies.

Usually referred to as "green rates." See also monetary compensatory account

Green wood Freshly sawed or undried wood.

Gross domestic product

(GDP)

A measure of the market value of goods and services produced by the labor and

property of a nation. Unlike gross national product, GDP excludes receipts from that

nation's business operations in foreign countries, as well as the share of reinvested

earnings in foreign affiliates of domestic corporations.

Gross national product

(GNP)

A measure of the market value of goods and services produced by the labor and

property of a nation. Includes receipts from that nation's business operations in foreign countries, as well as the share of reinvested earnings in foreign affiliates of domestic corporations. See also gross domestic product.

41
Groundnuts See peanuts.

Ground truth Data acquired from field observations, aerial photography, or other directly verifiable

sources used to assist in satellite imagery analysis of agricultural production.

Harbor dues The charges or dues assessed against a vessel, cargo, and passengers while in

port.

Hardboard A generic term for stiff panels manufactured from wood pulp, consolidated under

heat and pressure to a minimum density of 31 pounds per cubic foot.

Hard currency See convertible currency.

Hardwood A botanical group of trees, generally broad-leafed and deciduous. Varieties: (Temperate) oak, maple, beech, birch, walnut; (tropical) mahogany, teak. Major Producers: United States, Malaysia, Indonesia. Products: Logs, lumber, flooring, veneer,

plywood, ties.

Harmonized system (HS) The new international classification system for goods, scheduled to be implemented

by most major trading countries on January 1, 1988, which will be used for tariff

classification, trade statistics and, eventually, transport documentation. Officially

known as the Harmonized Commodity Description and Coding System, conversion

was begun by the Customs Cooperation Council in 1970 cis a replacement for the

Customs Cooperation Council Nomenclature also known ais the Brussels Tariff

Nomenclature.

Hay Grass mowed and cured for fodder. Varieties: Alfalfa, Sudan Grass, Timothy, Bermuda Grass, Prairie, Mixed, Wheat, Oats, Barley, Rye, Straw. Diseases: Leaf spot,

black stem, bacterial wilt, phytophthora, root rot. Pests: Alfalfa weevils, clover leaf

weevils, potato leafhoppers. Products: Cubes, pellets, meal, ground hay.

Hazelnuts See filberts.

Hectare A metric unit of area equal to 10,000 square meters or 2.471 acres.

Hedging Taking a position in a futures market opposite to one's position in the cash market

(i.e., as a buyer or seller) in order to minimize price risk. One hedges by buying or

selling a futures contract as a temporary substitute for a cash transaction that will

occur later (such as the eventual sale of one's crop). See also arbitrage.

42
Heifer A young bovine female animal that usually has not given birth to offspring.

Hides and skins Types: (Bovine) heavy native, light native, butt branded, packer hide, rawhide, splits,

kipskin, croupon, butt, dry slated. Major Producers: United States, Soviet Union,

Argentina, Brazil. Units: Pieces, usually by weight range. Grades: No. 1, 2, 3. Pests:

Ticks, grubs, mange. Products: Leather, leather products.

High-quality beef (HQB) Carcasses or any cuts from cattle not over 30 months of age, which have been fed

for 100 days or more on at least 20 pounds per day of nutritionally balanced, highenergy feed containing no less than 70-percent grain. Major Producers: Primarily

the United States as to definition above. Australia and Japan are secondary producers. Grades: USDA Prime or Choice grades automatically meet the definition of

HQB.

Hog cholera Highly contagious, frequently fatal viral disease of swine not transmissible to humans. Very similar to African swine fever.

Hogs

Hogshead

See swine.

A unit of capacity, usually a barrel or cask, used in liquid measure in the United

States equal to 63 gallons or approximately 239 liters.

Hold The interior of a ship or airplane used for carrying cargo.

Honey Types: Clover, alfalfa, orange blossom, heather, rape. Major Producers: Soviet

Union, China, United States, Mexico, Canada.

Honeydew A sticky substance produced by aphids on the leaves of plants, sometimes found in

cotton lint, which makes the cotton more difficult to process.

Honeydew melon Major Producers: United States, Chile, Mexico. Units: 29- to 32-pound cartons. Diseases: Powdery mildew, viruses. Pests: Wireworms, cutworms, nematodes, cucumber beetles, aphids, mites.

Hops A twining vine of the mulberry family, whose ripe dried flowers are added to beer

and other malt liquors in the brewing process to impart the characteristic bitter

flavor.

43
Horses Types: Light horses (for racing or pleasure), ponies, draft horses. Classified according to size, build, and use. Major Producers: United States, United Kingdom,

France, Australia, West Germany, China, Soviet Union. Units: Head. Diseases:

Equine encephalitis, equine infectious anemia, equine piroplasmosis, equine herpes

virus of rhinopneumonitis, African horsesickness. Pests: Bot flies, itch mites, scab

mites. Products: horsemeat, hide.

Hundredweight A unit of weight in the U.S. equal to 100 pounds or approximately 45.36 kilograms.

A unit of weight in the British Imperial system equal to 112 pounds or 50.8

kilograms. Abbreviated as cwt.

Hybrid The first generation produced by breeding plants or animals of different varieties or

species.

Ice clause A standard clause in the chartering of ocean vessels, which dictates the course a

vessel master may take if his ship is prevented from entering the loading or

discharge port because of ice, or if his ship is threatened by ice while in such a

port. The clause establishes rights and obligations of both vessel owner and charterer if these events occur.

Imagery Generally refers to satellite image data products of all types, both photographic and

digital, used in the analysis of agricultural production.

Impairment

Import substitution

See nullification.

A strategy which emphasizes the replacement of imports with domestically

produced goods, rather than the production of goods for export.

In-berth An expression used to refer to a vessel tied up to a location such as a wharf for

loading or discharging cargo.

In-bond goods Goods held or transported under customs control either until import duties or other

charges are paid, or in order to avoid paying such duties or charges. For example,

Canadian goods are transported in-bond through the Uniteîd States for export to a

third country to avoid paying United States customs duties. See also bonded

warehouse.

Inconvertible currency A currency that may not be exchanged without restrictions for another currency. See

also soft currency.

44
Indicative price The target price for certain commodities under the Common Agricultural Policy of

the European Community. Also known as the "norm" price, it is fixed at a level considered sufficient to stabilize wholesale market prices, given the level of demand

and the price of competing products.

initial payment (IP) In the context of the RL. 480 program, a payment made by the recipient country at

the time of delivery. See also currency-use payment

Insulation board Fiberboard with a density less than 31 pounds per cubic foot. Varieties: (Temperate)

pine, Douglas fir; (tropical) balsa, sandlewood. Major Producers: United States,

Canada. Units: Thousand square feet. Products: Sheathing, ceiling tile.

Inter-American

Development Bank (IDB)

A regional financial institution established in 1959 to further the economic and social development of its 27 Latin American member countries.

Intermodalism A system of containers with common handling characteristics, which allows for efficient handling by different types of carriers. For example, a container that can be

attached to a truck bed and/or railcar and subsequently be loaded onto a ship deck

for ocean transportation.

International Bank for

Reconstruction and

Development (IBRD)

Established in 1944 to help countries reconstruct their economies after World War

II. The organization assists member countries by lending to governmental agencies,

or by guaranteeing private loans for such projects as agricultural modernization or

infrastructural development. Also known as the World Bank.

International Coffee

Agreement (ICA)

An agreement signed by 67 countries, representing all of the world's major exporters and importers of coffee. The United States is a party to the agreement.

International commodity

agreement (ICA)

An undertaking by a group of countries to stabilize trade, supplies, and prices of a

commodity for the benefit of participating countries. Agreements include one or

more of three provisions: (1) a quota agreement among exporters; (2) a buffer stock

system; and (3) a multilateral contract between exporters and importers.

International Dairy

Arrangement (IDA)

An arrangement under the General Agreement on Tariffs and Trade signed by 18

countries, representing all major producers and exporters, with the objective of expanding and liberalizing world trade in dairy products by improving international cooperation. The United States withdrew from the agreement in 1985 because the European Community was violating a major objective of the IDA by selling butter and

other basic dairy products at prices below the established minimum export prices.

45
International Finance

Corporation (IFC)

A separately organized member of the World Bank, which encourages the flow of

capital into private investment in developing countries. See also International Bank

for Reconstruction and Development.

International Monetary

Fund (IIVIF)

Established in 1946 to act as the banker of last resort for countries experiencing

foreign exchange deficiencies, and to monitor currency exchange relationships

among nations.

International Olive Oil

Agreement (lOOA)

An agreement signed by 17 major exporters and importers with the objectives of

ensuring fair competition, delivery of commodity in accordance with contract specifications, and the stabilization and development of olive oil markets. The United

States is not a member.

International Sugar

Agreement (ISA)

An agreement enacted in 1969 which seeks to stabilize international trade in sugar

at equitable prices and to aid those countries whose economies are largely dependent on the production and export of sugar. The United States is not a member.

International Wheat

Agreement (IWA)

An agreement entered into in order to stabilize trade in wheat and other grains. This

agreement contains two conventions: the Wheat Trade Convention and the Food Aid

Convention. The Wheat Trade Convention, signed by 60 countries including the

United States, provides a forum for the periodic exchange of information among

member countries on the world grain situation. The Food Aid Convention, signed by

11 countries, commits signatories to minimum annual food aid contributions of edible grains.

Inventories Quantity of commodities on hand. Equivalent to stocks, this term is commonly used

in counting livestock.

Invitation for bids A public announcement of the intention to buy or sell commodities in accordance

with terms specified at the time of the announcement. Terms usually include commodity specifications, terms of delivery and payment, the deadline for receipt of

bids, and any other eligibility requirements.

Inward charges

Jojoba

Charges incurred by a ship or cargo when entering a port.

Edible, oil-producing seed of the jojoba shrub. Major Producers: United States, Mexico, Israel. Units: Hundredweight, metric tons. Products: Jojoba oil which is a liquid

wax, a vegetable analog of sperm whale oil, and used for cosmetics and industrial

purposes.

Karnal bunt

46

A fungal disease of wheat affecting the quality of the wheat kernel. Quarantines are

imposed on wheat trade from affected areas.
Keelage

Kennedy Round

A duty charged for permitting a ship to enter and anchor in a port or harbor.

The sixth multilateral round of trade negotiations held under the General Agreement

on Tariffs and Trade in 1963-1967.

Kiwifrult The small, fuzzy fruit of a vine native to Asia. Variety: Hayward. Major Producers:

New Zealand, United States, Italy Australia, Greece. Diseases: Crown rot, stem

scar infection.

Kobe-type separation The temporary partitioning of the hold of a vessel to keep grains of different types

or grades separated. Similar to natural separation, but partitioning is temporary.

LASH vessel Lighter aboard ship. A vessel designed for quick turnaround to accommodate

loaded barges that are floated through the rear of the vessel and secured internally

Lake vessel, laker U.S. and Canadian flag vessels operating within the Great Lakes and St. Lawrence

seaway Very similar to ocean-going vessels, but carrying capacity is limited by 27-

foot draught in canal locks.

Laminated wood An assembly made by bonding layers of veneer or lumber with an adhesive so that

the grain of all laminations is essentially parallel.

Landing charges The initial charges for landing imported goods, such as those for receiving goods

from dockside vessels or from barges to lighters. They may also cover wharfage or

delivery from the dock to land conveyance or warehouse.

Lard Rendered fat of swine.

Laydays A specific period in days allowed under the charter party for loading and unloading

cargo (usually stated separately). Refers to the period of time during which the vessel must give notice of its readiness to load. The term "reversible laydays" refers to

a fixed number of days for both loading and unloading.

Laytime The time contractually allowed under a charter party for loading and/or unloading

cargo. Used to compute demurrage and despatch.

Least developed

developing country

(LDDC)

A developing country with a lower level of per capita gross national product than

that of a less developed country.

47
Leather A hide or skin that has been chemically treated to prevent its natural decomposition.

Types: Cabretta leather, Carpincho, chrome leather, Cordova leather, kid leather.

Units: By weight or piece.

Lemons Varieties: Eureka, Lisbon, Verna. Major Producers: United Sîtates, southern Europe,

Argentina. Diseases: Tristeza, canker, rot, fungi, viruses. Pests: Citrus scales, citrus

mites. Products: Juice, essential oil, peel, pectin.

Lentils The dry, threshed seeds of a widely cultivated Eurasian annual leguminous plant.

Types: Chilean, Persian, Mixed, Regular. Major Producers: United States, India,

Syria, Turkey, Pakistan, Iran, Spain, Ethiopia, Soviet Union, Morocco, Canada.

Grades: U.S. No. 1-2 and Sample Grade. Pests: Aphids, thrips, seed corn maggots,

lygus bugs. Products: Decorticated lentils, soup.

Less developed country A country with low per capita gross national product. Terms such as third world,

(LDC) poor, developing nations, and underdeveloped have also been used to describe less

developed countries.

Less than a carload lot A quantity of bulk commodity less than the amount needed to fill a railroad car.

(L.C.L.)

Less than a truckload lot A quantity of bulk commodity less than the amount needed to fill a 40-foot truck

(L.T.L.) trailer.

Letter of commitment Under PL. 480, a firm commitment by the Commodity Credit Corporation to reimburse a U.S. commercial bank for payments made or drafts accepted under letters

of credit for the account of the approved foreign applicant.

Letter of credit (L/C) A document issued on behalf of a buyer by a bank, giving the buyer the financial

backing of the issuing bank. In a transaction, the bank's acceptance of drafts drawn

under the letter of credit satisfies the seller and the seller's bank. The buyer and

the accepting bank also have an agreement as to the payment of drafts as they are

presented.

Lettuce Varieties: Iceberg, Boston Butterleaf, Romaine. Major Producers: United States,

Spain, Israel. Units: 36- to 45-pound cartons of 18-30 heads. Diseases: Mosaic, aster yellows, spotted wilt, big van, downy mildew, scieiotirua drop, damping-off. Pests:

Cabbage loopers, cutworms, aphids, corn earworms, grasshoppers, tobacco budworms, army worms, dickets, leafhoppers, whiteflies.

Leukosis A virus-produced form of cancer affecting cattle. Only a small percentage of animals

that are positive to serological tests develop clinical signs. Disease causes trade

restrictions in many countries.

48
Levy

Licensing

See tariff.

As defined by the multilateral trade negotiations, agreement on import licensing procedures (licensing code), the practice of requiring documentation (other than that

required for customs purposes) for approval, as a prior condition for importation.

Licorice A European legume, the root or root extract of which is used as flavoring. Varieties:

Violácea (Persian), Glandulifera (Russian), Typica (Spanish). Major Producers: Soviet Union, China, Iraq, Iran, Turkey. Units: Solid extract sold in 5- and 12-kilogram

blocks. Products: Natural root, sticks, extract, block juice, powder. Used to flavor

tobacco, beverages, confectionery, and pharmaceuticals. About 90 percent of the

licorice extract used in the United States is for flavoring tobacco products.

Light draft The minimum depth of water needed by a vessel when without crew, fuel, cargo, or

other loads.

Light dues A toll, levied according to tonnage, against a vessel for the maintenance of lights,

beacons, buoys, etc.

Lighten To reduce a vessel's draft by lifting cargo from the vessel into lighters. Sometimes

necessary to enable vessels with deep drafts to enter into shallow berths for further

unloading. See also topping off.

Lighter A barge, open or covered, used mostly in harbors and inland waterways to transport

cargo between a vessel and the shore during loading or unloading.

Lighterage A charge for conveyance of goods by lighters or barges in a harbor or between ship

and shore.

Limes Varieties: Mexican (key), Persian (Tahiti). Major Producers: Mexico, Brazil, Egypt,

United States, Cuba. Diseases: Tristeza, canker, decline, rot, fungi, viruses. Pests:

Citrus mites, citrus scales. Products: Juice, essential oil, peel.

Liner conference An agreement among shippers who regularly serve a particular trade route to establish stable freight rates and to improve working conditions in that trade.

Liner discharge Payment by the shipowner for unloading of cargo, including stevedore wages.

49
Liner status The preference order of vessels waiting their turn to load or unload at a berth. Vessels customarily are taken into berth In chronological order according to when they

tendered notice of readiness. Liners have preference over tramps, and tramps on

demurrage have preference over other tramps. See also line-up.

Liner terms An expression used in charter parties covering assessment of ocean freight rates,

which implies that loading and unloading expenses will be paid by the shipowner.

Expenses covered by the shipowner under liner terms include those incurred from

the end of ship's tackle in port of loading to the end of ship's tackle in port of discharge. Also referred to as "full berth terms, FBT."

Line-up A chronological list of vessels awaiting their turn to load or unload goods at port

facilities. See also liner status.

Linseed Seed of the flax plant. Also called flaxseed. Major Producers: Argentina, European

Community, United States, Canada. Products: Linseed oil (an inedible, industrial

oil), linseed meal.

Liveweight

Lloyd's

The weight of an animal before it is slaughtered.

An association of individual underwriters in London specializing in marine insurance

and shipping news, and insuring for losses of almost every conceivable kind.

Lloyd's publishes an annual information list of the seagoing vessels of all nations,

called Lloyd's Register.

Loaded draft The minimum depth of water a loaded ship needs in order to float freely. See also

draft and light draft.

Loading in turn The practice of loading vessels according to the order in which they have given

their "notice of readiness to load." See also laydays and liner status.

Loading spout The pipe which conveys bulk commodity from the elevator ¡into the hold of a vessel,

truck, or railroad car.

Loading tolerance A contractual option to load amounts over or under the mean amount specified in

the contract. In charter parties, it is customary to establish loading tolerances of 5

percent or 10 percent more or less than the mean amount. Loading tolerances are

necessary because it is not possible to calculate the exact volume a cargo will occupy or its tonnage prior to loading. Because ocean freight is usually chartered with

a loading tolerance, it Is necessary to make commodity sales in the same manner.

Also called "shipping tolerance."

50
Load line A line on the hull of a merchant ship below which the vessel legally must not sink

when loaded and In still water. Because the density of water, and therefore displacement, varies with temperature and salinity, there may be separate load lines for

summer and winter, as well as for fresh water and seawater.

Loan rate In the United States, the price per unit of commodity at which nonrecourse loans

are made to farmers by USDA's Commodity Credit Corporation.

Local currency sale A direct or RL. 480 sale, made by the Commodity Credit Corporation, In which payment is made in the recipient country's currency.

Lomfe Convention A trade agreement between the European Community (EC) and the former African,

Caribbean, and Pacific (ACP) colonies of the EC member states. The agreement

covers some aid provisions as well as trade and tariff preferences for the ACP countries when shipping to the EC. It derives its name from the capital city of Togo,

where the latest agreement was signed.

London interbank

offered rate (LIBOR)

The Interest rate that major International banks charge each other for large volume

loans of Eurodollars (U.S. dollars on deposit outside of the United States).

Longshoreman A worker who loads or unloads vessels. May be further divided Into stevedores, who

work on ships, and dockworkers, who work on shore.

Long ton A measure of weight equal to 2,240 pounds or 1,016 kilograms. See also metric ton

and short ton.

Lumber A wood product which has been sawed, planed, sanded, resawed, or crosscut, but

not further manufactured. Types: Hardwood, softwood. Major Producers: United

States, Canada, Soviet Union, Sweden, Finland. Units: Thousand board feet.

Grades: Based on the absence of knots and other defects. Products: Flooring, siding, ties, planks, lath construction boards, timbers, trim.

Lump freight

Lupulin

A gross sum to be paid for the use of all or part of a vessel.

A fine, yellow, resinous powder In hops, valuable in preserving and flavoring beer

and other malt liquors.

Macadamia nuts Major Producers: Australia, United States (Hawaii), Central America. Diseases: Root

and trunk rot, blossom blight, water mold fungus. Pests: Koa seed worms, litchi fruit

moths, mites.

51
Maize See corn.

Mangoes Tropical fruit borne by an evergreen tree of the sumac family. Major Producers:

United States, Mexico, West Indies, Central America, India, Australia. Units: 10-

14-pound cartons. Disease: Anthracnose. Pests: Scales, fruit flies.

and

Manifest A list of passengers or an invoice of cargo.

Marine insurance A contract whereby one party (an insurance firm) guarantees another party (the

owner, purchaser, or shipper) with an interest in specific goods against financial loss

due to the loss of or damage to those goods while in transit from one destination to

another. There are two types of marine insurance: an open policy, used when the

trader regularly exports or imports, covering all shipments of the trader; and a special policy, used when the seller has only an occasional shipment, or must supply

evidence of insurance to banks or buyers. There are two types of coverage available

in marine insurance: free of particular average (FPA) and with particular average

(WPA) coverage. The FPA coverage is the minimum coverage in general use for

shipment of commodities, covering (a) a total loss of goods shipped (American and

English conditions) or (b) a partial loss of goods occurring after the vessel is

stranded, sunk, burnt, or involved in a collision (English conditions only). WPA coverage includes that afforded under FPA, as well as seawater damage. Neither FPA

nor WPA coverage normally extends to damage caused by pilferage, hot engine

bulkhead, odor from other cargoes, etc., although WPA coverage can be written

with a rider to include coverage against losses due to pilferage. See also all risk

insurance.

Marine leg A mechanical device, usually part of a grain elevator's equipment, placed in the

hold of a vessel in order to transport bulk grain from the hold to the elevator.

Marlcet access The extent to which a country permits imports. Can be restricted through use of a

variety of tariff and nontariff barriers.

Marlieting loan In the United States, a modification of the nonrecourse loan, whereby a commodity

loan is given to producers based on the loan rate for a particular commodity. The

loan is repaid at the market price at the time of repayment or the original loan rate,

whichever is lower. For example, if a nonrecourse loan with wheat as collateral is

given at the rate of $2.40 per bushel, and the market price for wheat at the time of

repayment is $2.20 per bushel, the loan is repaid at $2.20 per bushel. If the market

price rises above the loan rate (e.g., to $2.60 per bushel), the loan is repaid at the

loan rate.

52
Marketing order In the United States, a mechanism for regulating commodity quality and/or supply,

thus stabilizing price. Agreed to and operated by commodity producers and shippers, marketing orders are in effect for milk products and many fruits and

vegetables.

Marketing year The 12-month period beginning just after harvest during which a commodity may be

sold domestically, exported, or put into reserve stocks. Varies by country and commodity, and differs from crop year, which is the year in which a crop is harvested.

See Appendices.

Meal The coarsely ground and unsifted grains of a cereal grass; the solid residue left after extracting oil from oilseeds.

Measurement ton A measure of volume generally equal to 40 cubic feet (1 cubic meter). Also known

as cargo or freight ton.

Meat Import Law U.S. law, enacted in 1964 and amended in 1979, which provides for the imposition

of import quotas if imports of certain meat products exceed the trigger level. Fresh,

chilled, and frozen meat of cattle, sheep (except lamb), and goats, as well as certain prepared and preserved beef and veal products, come under the law.

Meslin Ancestor of modern wheat varieties.

Metric ton A measure of weight equal to 2,204.6 pounds or 1,000 kilograms. See also long ton

and short ton.

Micronaire A measure of the fineness of cotton fiber.

Milk Types: Fluid, canned, dry. Major Producers: Soviet Union, United States, Europe,

India. Units: Hundredweight, gallons, liters. Grades: Grade A. Products: Fluid,

canned, condensed, and evaporated milk, cream, yogurt, cheese, butter and butteroil, dried milk casein, whey, buttermilk, sour milk and cream, ice cream.

Millet Any of various small-seeded annual cereal and forage grasses. Major Producers:

Soviet Union, Nigeria, India, China. Units: Metric tons, 38-pound bushels. Grades:

No current standards. Diseases: Smut, ergot. Products: Cereal, feed, confections.

Milo U.S. term for grain sorghum. Varieties: Standard, White, Dwarf, Dwarf White. See

also sorghum.

53
Minimum import price

(IVtIP)

A measure used by the European Community whereby imports priced at less than

the MIP are charged a tax equal to the difference or may be subject to quantitative

restrictions.

Minimum valuation For tariff purposes, the lowest valuation of an item against which tariffs are levied.

Items below that value are assessed as if they were of the minimum valuation.

Mixing regulation A requirement in some countries that products sold domestically contain a designated portion of domestically produced materials.

Mohair The fiber produced by Angora goats. Types: Tight or spiral lock, flat lock, fluffy

fleece. Major Producers: South Africa, Turkey, United States. Grades: Based on average fiber diameter (usually 23-43 microns) and fiber diameter dispersion. Pests:

Lice, predators. Products: Specialty yarns and textiles usually blended with other

materials such as wools or synthetics.

Monetary compensatory

account (MCA)

A tax or subsidy applied to goods traded between members of the European Community. Introduced to avoid possible disruptions in trade flows caused by support

price differentials brought about by differing green rates of exchange. For a member

state whose green rate is below the market rate, the MCA applies as a levy on imports and a subsidy on exports; for a member state whose green rate is above the

market rate, it has the opposite effect.

Moor To secure a vessel by means of chains or ropes which are made fast to anchors,

anchored buoys, or a pier.

Moorage The charge for mooring vessels to piles at the shore or wharf.

Most-favored-nation

(MFN) treatment

A commitment that a country will extend to another country the lowest tariff rates it

applies to any third country. A country is under no obligation to extend MFN treatment to another country, unless they are both contracting parties to the General

Agreement on Tariffs and Trade, or unless MFN treatment is specified in an agreement between them.

Multi-fiber arrangement

(MFA)

An international compact that allows contracting parties to apply quantitative restrictions on textile imports (which normally would be considerçîd contrary to the General

Agreement on Tariffs and Trade provisions) when the importing country considers

them necessary to prevent market disruption. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding

year.

54
Multilateral safeguard A provision of the General Agreement on Tariffs and Trade (Article XIX). whicfi permits a country to withdraw or modify earlier concessions by imposing new import

restrictions, if it can establish that a product is "being imported in such increased

quantities as to cause or threaten serious injury to domestic producers," and to

keep such restrictions in effect "for such time as may be necessary to prevent or

remedy such injury."

Multilateral trade

negotiations (MTN)

A descriptive term which is applied to any of the eight rounds of negotiations held

under the auspices of the General Agreement on Tariffs and Trade since 1947. See

also Agreement on Technical Barriers to Trade.

Multi-tier system The existence of two or more effective exchange rates. Also referred to as a "dual

exchange rate system."

Mushrooms Major Producers: United States, China, France, the Netherlands, Spain, Taiwan.

Diseases: Fungi, viruses, bacteria. Pests: Flies, mites, springtails, eelworms.

Mustard seed Seed of plants in the mustard family. Major Producers: India, Pakistan. Products:

Mustard powder, edible mustard oil, mustard meal (toxic).

National Advisory

Council on International

Monetary and Financial

Policies (NAC)

A U.S. Government interdepartmental committee that coordinates the policies of all

Government agencies to the extent that they make foreign loans or engage in foreign monetary transactions, including PL. 480 agreements.

Natural separation The loading of different qualities or types of grain into separate compartments of a

vessel's hold, so that intermingling cannot occur during shipment.

Naval stores The oils, resins, tars, and pitches extracted from trees (mainly species of pine).

Nectarines A smooth-skinned fruit similar to the peach. Major Producers: United States, Canada, Mexico, European Community, Argentina, Australia, Chile. Diseases: Peach

leaf curl, brown rot. Pests: Oriental fruit moths.

Newcastle disease A highly contagious viral disease of poultry, characterized by respiratory and nervous disorders. Trade in live birds and poultry products from affected areas may be

restricted.

Newly industrialized

country (NIC)

A country, previously considered less developed, which has achieved a significant

level of economic development, largely through heavy industrialization. Examples

include South Korea, Taiwan, and Brazil.

55
Nonfat dry milk (NDM) Dried skim milk containing no more than 1.5 percent fat and 5 percent moisture.

Includes buttermilk powder but not whey powder. Also abbreviated NFDM or SMP

(skim milk powder).

Nonrecourse loan In the United States, a loan made to a farmer by USDA's Commodity Credit Corporation (CCC) using a quantity of the commodity produced as collateral at a given

rate (the loan rate) per unit of the commodity. The farmer may elect to repay the

loan plus accrued interest within a specified period of time, or default on the loan,

in which case ownership of the commodity passes to the CCC, thereby fully satisfying the loan obligation. The latter action is taken if current market prices are at or

below the loan rate. Thus, in effect, the loan rate serves as a floor or minimum

price to the farmer for the commodity. See also marketing loan.

Nontariff barrier (NIB) Any restriction, charge, or policy, other than traditional customs duties, which limits

the access of imported goods. May result from government or private sector actions.

Examples include quantitative restrictions (quotas), licensing, domestic support programs, labeling and health standards, and exclusive business practices.

Nonvessel operating

common carrier

(NVOGG)

Cargo consolidator of small shipments in ocean trade, generally arranging for or

performing containerization functions at the port.

Nullification The partial or total loss of a benefit that was negotiated between General Agreement on Tariffs and Trade contracting parties, due to an action, policy, or lack of action by one of the parties. Also called impairment.

Oats Major Producers: Soviet Union, United States, Canada, European Community.

Units: Metric tons, 32-pound bushels. Grades: U.S. No. 1-4 and Sample Grade.

Diseases: Smut, rust, ergot. Products: Cereal, feed, confections.

Ocean freight differential In general, the difference in freight costs between two carriers or destinations. In

the context of the PL. 480 program, refers to the amount by which the ocean freight

for the portion of commodities required to be carried on U.S. flag vessels exceeds

the cost of carrying the same amount on foreign flag vessels. Under PL. 480, paid

by USDA's Commodity Credit Corporation.

Offal Edible or inedible meat from organs (liver, kidney, etc.) or from parts of the thoracic

and abdominal cavities of animals.

Offer See bid.

56
Offset requirement A form of countertrade whereby an importing country requires an exporter to purchase a specific amount of locally produced goods or services from the importing

country. Alternatively, the exporter may be required to establish manufacturing facilities in the importing country.

Oil cake See oilseed meal.

Oil palm An African palm cultivated for its clustered fruit whose flesh and seeds yield palm

oil. Major Producers: Malaysia, Indonesia, West Africa, China. Units: Fresh-fruit

bunches of 20-30 kilograms. Products: Palm oil, palm olein, palm stearin, palm fatty

acids.

Oilseed A seed or crop grown largely for its oil.

Oilseed meal The solid residue left after extracting oil from seeds. Used as food for livestock.

Olein The liquid portion of palm oil; stearin is the solid portion.

Olives Types: Spanish-style (green) or California-style (black). Major Producers: Italy,

Greece, Spain, Tunisia. Disease: Fungi. Pests: Scales, Dacus olive flies. Product:

Edible oil.

Onions Major Producers: United States, Canada, Japan, Korea, Italy. Diseases: Bacterial

soft rot, gray mold rot, fusarium bulb rot, black mold rot, blue mold, white rot,

smudge. Pests: Onion thrips, onion maggots. Products: Fresh, dehydrated,

powdered.

Open policy

Oranges

See marine insurance.

Varieties: Sweet and bitter. Major Producers: United States, Brazil, Spain, Italy,

Egypt, Mexico, Israel, Morocco. Diseases: Tristeza, canker, decline, fungi, viral rot.

Pests: Citrus scales, citrus mites, tropical fruit flies. Products: Beverage bases, peel,

pectin, essential oil, animal feed.

Orderly marketing

agreement

An agreement between governments by which one government limits its exports to

the other. Similar to a voluntary export restriction agreement or a voluntary restraint

agreement. Used to prevent injury to domestic industries.

57
Oregano A perennial nnint used as a seasoning. Also known as wild marjoram and organy.

Types: European, Mexican. Major Producers: Mexico, Greece, Turkey. Grades: Type

I (whole), Type II (ground), Type III (ground, coarse).

Organization for

Economic Cooperation

and Development

(OECD)

Established in December 1960 by the United States, Canada, and members of the

Organization for European Economic Cooperation to study and discuss trade and

related matters. Members include the United States, Canada, the European Community, the European Free Trade Association countries, Australia, New Zealand, Japan, and Turkey.

Organization of African

Unity (OAU)

Founded in 1963 to promote self-government, respect for territorial boundaries, and

social progress. Members include all independent countries in Africa except the Republic of South Africa.

Organization of

American States (OAS)

A regional organization established in 1948 to determine political, defense,

economic, and social policies for the Inter-American system. The main activities carried on by the GAS relate to the peaceful settlement of disputes, common action

against aggression, and economic and social collaboration among members. Members include the United States, Mexico, and most Central American, South American, and Caribbean nations.

Oriented Strandboard

(OSB)

See particleboard.

Overage Excess in quantity of goods delivered, as against quantity shipped from origin.

Over-age vessel A ship that is subject to higher than normal marine insurance premiums due to its

age.

Overseas Private

Investment Corporation

(OPIC)

U.S. Government agency which assists U.S. investors in making profitable investments in developing countries while encouraging projects which enhance the social

and economic development in that country.

Package cargo Cargo in boxes, barrels, crates, bales, or other containers, as opposed to bulk or

loose cargo.

Pallet A small wooden platform on which cargo is stored for ease of loading and unloading. Cargo shipped on pallets is referred to as palletized cargo.

Palm kernel Seed of the oil palm. Major Producers: Malaysia, Nigeria, Brazil, Indonesia. Products: Palm kernel oil (used in baking and industry), palm kernel meal.

58
Palm oil Edible oil extracted from the fruit of the oil palm. Major Producers: Malaysia, Indonesia, West Africa. Grades: Crude palm oil (CPO), refined, bleached, deodorized

(RBD) palm oil.

Papain A proteinase in the juice of unripe papaya fruit. Major Producers: Uganda, Zaire,

Tanzania, Sri Lanka, India. Units: 14-kilogram canisters, 50-kilogram bags, 20- to

25-kilogram drums. Grades: White No. 1, Extra White (ovendried), Brown No. 2 (sun

dried). Diseases: Viruses, fungus rot, powdery mildew. Pests: Papaya webworms,

papaya fruit flies, papaya whiteflies. Products: Meat tenderizer, stabilizer in beer,'

pharmaceutical products.

Papaya Fruit-bearing giant herb grown in tropics. Major Producers: United States, Mexico,

Brazil, Philippines, Indonesia, India, Zaire. Diseases: Viruses, fungus rot, powdery

mildew. Pests: Papaya webworms, papaya fruit flies, papaya whiteflies. Products:

Juice, papain.

Particleboard A panel product made from wood waste (sawdust, planer shavings, etc.) and wood

chips. Varieties: (Temperate) pine, Douglas fir, cedar; (tropical) balsa, sandlewood.

Major Producers: United States, Canada, European Community. Units: Thousand

square feet. Products: Waferboard, oriented Strandboard, flooring, roofing, sheathing, furniture.

Peaches Major Producers: United States, Canada, Mexico, European Community, Argentina,

Australia, Chile. Units: 22- to 38-pound lugs, crates, or cartons. Diseases: Peach

leaf curl, brown rot. Pests: Oriental fruit moths, plum curculios.

Peanuts Also called groundnuts. Major Producers: India, China, United States, Brazil,

Senegal, Indonesia. Products: Edible peanut oil, peanut meal.

Pears Major Producers: United States, Canada, Mexico, Europe, Argentina, Australia,

Chile. Diseases: Scab, fireblight. Pests: Codling moths, mites, pear slugs.

Peas Types: Smooth green, smooth yellow, Austrian winter, wrinkled, mixed. Major Producers: United States, Canada, Soviet Union, China, India, Pakistan, Australia,

France, United Kingdom, Ethiopia, Hungary, New Zealand. Grades: U.S. No. 1-3

and Sample Grade. Diseases: Root rot, ascochyta, white mold, fusarium wilt. Pests:

Weevils, pea aphids. Products: Whole and split peas, flour, chips.

Pecans Varieties: Caddo, Cherokee, Cheyenne, Choctaw, Mohawk. Major Producers: United

States, Mexico, Australia, Brazil, South Africa. Diseases: Powdery mildew, pecan

scab. Pests: Hickory shuckworms, pecan weevils, aphids, spittlebugs.

59
Pectin A gelatinous, water-soluble substance found in ripe fruits, which causes jam or jelly

to set.

Pepper, bell Variety: California Wonder. Major Producers: United States, Mexico. Diseases:

Damping-off, blue mold, bacterial spot, frogeye leaf spot, southern blight, phytophthora, blight, anthracnose, ripe rot. Pests: Aphids, artworms, flea beetles,

hornworms, pepper weevils, pepper maggots, leafminers.

Pepper, black Major Producers: India, Brazil, Malaysia, Indonesia. Grades: Type I (whole). Type II

(ground). Disease: Root rot. Product: Spice.

Peppermint Varieties: Piperita (United States), Arvensis (China, Paraguay, Brazil). Disease: Wilt.

Pests: Flea beetles. Product: An edible oil used as a flavoring.

Performance bond A guaranty in favor of the buyer, made by the firm to whom a contract has been

awarded, to insure that the firm executes the contract. A percentage (usually 2 to 5

percent) of the value of the contract or a fixed dollar amount per ton, may be in the

form of a letter of credit or a check.

Phytosanitary certificate A document issued by a government to an exporter which certifies that the commodity is free from pests or disease, in accordance with the importing country's

standards.

Piggy-back The commercial hauling of truck trailers on railroad flatcars.

Pilot A person qualified to steer ships through difficult waters and whose services are

often required to navigate into or out of particular harbors.

Pimento A bell pepper which usually is canned in brine and used as a condiment. Major

Producers: Spain, United States.

Pistachio The edible seed of a tree in the sumac family. Major Producers: Turkey, Iran, Italy,

United States. Diseases: Powdery mildew, oak root fungus. Pests: Mites.

Plimsoll line See freeboard marks.

Plums Major Producers: United States, Canada, European Community, Australia, Chile,

South Africa. Units: 28- to 30-pound lugs or cartons, 24- to 32-pound, 4-basket

crates. Diseases: Brown rot, leaf spot. Pests: Plum curculios.

60
Plywood A wood product comprised of sheets of veneers glued together to provide strength

and rigidity.

Port authority The entity whose duty it is to construct, manage, maintain, and improve a port.

Ports may be administered by states, municipalities, statutory trusts, private or corporate entities. Also known as harbor authority, harbor board, port trust, or port

commission.

Port charges Fees assessed against a vessel, cargo, and passengers while in port. Include harbor dues, tariff charges, wharfage, towage, etc.

Potatoes Varieties: Russet, Round White, Red, Yellow. Major Producers: United States, Canada. Units: 50-pound bags, 165-pound barrels. Diseases: Late blight, leaf roll, verticillium. Pests: Nematodes.

Poultry Types: Chickens, turkeys, ducks, geese, guinea fowl. Major Producers: United

States, Soviet Union, Brazil, Japan, Hungary, France. Grades: U.S. Grade A, U.S.

Grade B, U.S. Grade C. Diseases: Pullorum, fowl typhoid, fowl pest, paratyphoid,

coccidiosis, fowl cholera, Newcastle disease, Marek's disease. Products: Meat,

eggs, feathers.

Price discrimination The practice of offering different terms to different buyers or sellers for the same

product, through market segmentation.

Price fixing An agreement among buyers or sellers to set the price of their product at a certain

level, generally to reduce competition. Illegal in the United States under the Sherman Antitrust Act.

Price support Governmental actions or programs designed to strengthen prices that farmers receive for their commodities. Price support mechanisms include loans, direct purchases, and other payments. Commodities supported in the United States include

wheat, corn, grain sorghum, barley, oats, rye, rice, soybeans, peanuts, tobacco, certain dairy products, wool, mohair, and sugar.

Price umbrella The concept that agricultural price supports tend to hold world prices of the supported commodities at high levels, which stimulates production in other countries.

61
Principal supplier The country that is the most important source of a particular product imported by

another country. In negotiations conducted under the General Agreement on Tariffs

and Trade, a country offering to reduce import duties or other barriers on a particular item generally expects the principal supplier of the imported item to offer, in exchange, to reduce restrictions on another item. Both countries then automatically

grant the same concession to all other countries to which they have agreed to accord most-favored-nation treatment.

Prior import deposits A requirement in some countries that importers seeking import licenses deposit local funds with the central bank, often up to 100 percent of the value of the imported

goods.

Private voluntary

organization (PVO)

A nongovernment, nonprofit institution that provides economic and social assistance

to countries or people in need. May operate development assistance programs and

play an important role in distributing U.S. food aid under the RL. 480, Title II, program, including emergency relief.

Product differentiation A form of nonprice competition by which firms attempt to persuade consumers that

their product is better than that of their rivals. May focus on differences in quality,

packaging, credit arrangements, or supply reliability.

Product weight The weight of a product as it is sold at the retail level. In the meat trade, is differentiated from carcass weight equivalent, and may or may not include the weight of

bone, fat, or additional water.

Program commodity See price support.

Protectionism The use of tariff or nontariff barriers and subsidies to shield domestic producers

from foreign competition. Hampers the operation of comparative advantage and fosters inefficient domestic production.

Prune A dried plum. Major Producers: United States, Argentina, Australia, Chile, France,

southeast Europe. Grades: Based on prune counts from 15-20 to 100-120 per

pound. Diseases: Brown rot, rust. Pests: Sawflies, aphids, leaf-eating caterpillars,

red plum maggots, red spiders.

Public Law 480 See Agricultural Trade Development and Assistance Act of 1954.

Pulses The edible seeds of various leguminous crops such as peas, beans, and lentils.

62
Purchase authorization

(PA)

In the context of RL. 480, a document which authorizes the importing government

to procure commodities and, in certain instances, ocean freight. Specifies the grade

and type, approximate quantity, and maximum value of the commodities. Also states

the timespan for their purchase and delivery, method of financing, and other provisions and limitations.

Pyrethrum Any of several chrysanthemum species sold in extract, powder, or dried flower form.

Used in insecticide products. Major Producers: Kenya, Tanzania, Rwanda, Zaire,

Ecuador, Papua New Guinea. Units: Drums, usually containing 25-percent

pyrethrius strength.

Quantitative restriction

(QR)

Limitation on the quantity or value of a product that may be permitted to enter or

leave a country. Includes quotas, embargoes, restrictive licensing, and other means

of limiting imports.

Quarantine Any restriction, including total ban, on the entry or departure of cargo or persons to

prevent the transmission of pests or diseases.

Quay The landing place at which ocean-going vessels load or unload cargo; a wharf or

pier.

Quince A hard, yellowish, acidic fruit of an Asiatic tree in the rose family. Units: 40-pound

bushels, 22-pound trays, lugs, or cartons.

Quintal A measure of weight in the metric system equal to 100 kilograms, or 220.46

pounds. One-tenth of a metric ton.

Quota A kind of quantitative restriction which limits the value or volume of imports or exports of specific goods. May be specified as an absolute limit (e.g., 5,000 tons) or

change from year to year as the domestic supply and demand situation changes.

Raisin A dried grape. Varieties: Thompson seedless, Muscat. Major Producers: United

States, Australia, Greece, South Africa, Turkey, Afghanistan. Pests: Raisin moths,

Indian meal moths, dried-fruit beetles, saw-toothed grain beetles.

Rape European herb of the mustard family, grown as a forage crop and for its

oil-producing seeds. Called Canola in Canada. Major Producers: Canada, European

Community, China, India. Products: Edible rapeseed oil, rapeseed meal.

63
Raspberries Types: Red and Black. Major Producers: United States, Canada, Europe. Units: 5-

to 7-pound cartons containing 12 1/2-pint trays. Diseases: Oak root fungus, powdery

mildew. Pests: Aphids, mites.

Ready-to-cook (RTC) Dressed poultry, without feathers, head, feet, and most internal organs. Includes

neck and giblets.

Reciprocity The reduction of a country's import duties or other trade reîstraints in return for trade

concessions from another country. See also most-favored-nation treatment.

Reefer A refrigerated boxcar, truck, or ship.

Reexport Export of imported goods or commodities without substantial processing or transformation. See also entrepot, foreign trade zone, and transshipment.

Reference price The minimum import price for certain farm products under the European Community's (EC) Common Agricultural Policy. Normally based on an average of EC market

or producer prices over a given period. Specifically refers to a commodity of a prescribed quality which may be supported by intervention measures.

Regular service

Remote sensing

The scheduled sailings provided by steamship lines.

Refers to the acquisition of information, usually by satellite, through the use of infrared and other sensing apparatus. Used to assess crop development in remote areas

and to obtain information on planting, harvesting, water supplies, deforestation,

changes in farm-related cultural practices, and soil and plant moisture conditions.

Render To extract fat or oil from livestock or poultry by melting down or reprocessing meat,

bone, feathers, or other byproducts.

Reserves See buffer stoc/c, carryover, and Commodity Credit Corporation.

Residual restriction A quantitative restriction that is permissible under the General Agreement on Tariffs

and Trade due to its existence prior to a country becoming a contracting party.

Restitution See export restitution.

64
Rice Varieties: Indica, Japónica, Basmati, glutinous. Major Producers: United States,

Thailand, China, India, Indonesia, Burma. Grades and classes: U.S. No. 1-6 and

Sample Grade, long-grain, medium-grain, short-grain, and mixed rough rice; U.S.

No. 1-5 and Sample Grade, long-grain, medium-grain, short-grain, and mixed brown

rice for processing; U.S. No. 1-6 and Sample Grade, long-grain, medium-grain,

short-grain, and mixed milled rice; U.S. No. 1-5 and Sample Grade, second head,

screenings, and brewers milled rice. Pests: Stinkbugs, water weevils. Products:

Milled rice, bakery products, beer, wine.

Rinderpest A usually fatal viral disease of ruminants usually characterized by profuse diarrhea.

It is spread through contact with an infected animal but is not transmitted to

humans.

Rollback A term associated with the General Agreement on Tariffs and Trade (GATT) Ministerial Declaration issued at Punta del Este, Uruguay, in 1986 which set the agenda for

the Uruguay Round of GATT multilateral trade negotiations. Refers to an agreement

among participants to dismantle all trade-restrictive or distorting measures that are

inconsistent with the provisions of the GATT. Such measures shall be phased out or

brought into conformity within an agreed timeframe, no later than by the formal

completion of the negotiations. The rollback agreement is accompanied by a commitment to "standstill" on existing trade-restrictive measures.

Roll-on/Roll-off (RO/RO) A term applied to ships which are outfitted so that containers can be driven on or

off without the use of special cranes.

Rot Any of various bacterial or fungal diseases marked by the breakdown of plant tissue. Shipments of agricultural products affected by rot are generally rejected.

Roundwood Any wood removed from the forest. Types: Softwood, hardwood. Major Producers:

United States, Canada, Soviet Union, Sweden, France, China, India. Units: Thousand board feet. Grades: (Logs) sawlogs, veneer logs, core stock. Disease: Oak wilt

(logs). Products: Sawlogs, poles, piles and pitprops, pulpwood, veneer logs.

Running bales An actual count of cotton bales in a lot, usually 500-520 pounds, which is generally

converted to 480-pound statistical bales.

Rust Any of various fungal diseases of grains and legumes, causing defoliation and characterized by reddish-brown lesions. Quarantines are imposed on trade from affected

areas.

Rye Major Producers: Poland, Soviet Union, East Germany, West Germany Units: Metric

tons, 56-pound bushels. Grades: U.S. No. 1-4 and Sample Grade. Diseases: Ergot,

smut, various rusts. Pests: Weevils. Products: Bread, flour, feed, distilled spirits.

65
Safflower seed Major Producers: China, India, United States, Egypt. Product: Edible safflower oil.

Sawnwood Various wood products sawn or chipped lengthwise on at least two parallel sides, of

a thickness exceeding 6 millimeters.

Schedule B The official U.S. schedule of commodity classifications used in reporting export

shipments from the United States. It contains approximately 4,000 7-digit classifications, with a numbering system based on the 'Tariff Schedules of the United States,

Annotated," which is used for classifying goods imported into the United States.

Seasoning The process of removing moisture from green wood.

Section 22 A provision of the U.S. Agricultural Adjustment Act of 1933, as amended, that authorizes the imposition of quotas or fees on imports of commodities when these measures are necessary to prevent imports from interfering with the operation of U.S.

support programs on the products involved. For 1986, import fees were authorized

for sugar, and quotas were authorized for peanuts, cotton, dairy products, and certain sugar-containing products. See also waiver.

Section 201 A provision of the U.S. Trade Act of 1974, as amended, which empowers the President to raise import duties or impose import restrictions on goods entering the

United States which injure or threaten to injure domestic industries producing like

goods. The U.S. analog to Article XIX of the General Agreement on Tariffs and

Trade, this provision is intended to provide relief from injurious competition when

temporary protection will enable the domestic industry to make adjustments to meet

this competition.

Section 301 A provision of the U.S. Trade Act of 1974, as amended, which empowers the President to take all appropriate action, including retaliation, to obtain the removal of any

act, policy, or practice of a foreign government which violates an international agreement or is unjustified, unreasonable, or discriminatory, and which burdens or restricts U.S. commerce.

Seed, certified Seed which has been determined by an official seed certifying agency to conform to

standards of genetic purity and identity as to variety. Phytosanitary or quality certificates are independent of the seed certifying process.

Seed, pure live The percentage of seeds in a lot, which can be expected to be both pure and live

(i.e., will germinate). Determined by multiplying the percentage of pure seed by the

percentage of viable seed and dividing by 100.

66
Seed, treated Seed given an application of a substance or subjected to a process designed to

control disease organisms, insects, or other pests.

Self-trimming vessel A vessel designed so that bulk cargoes can flow freely into holds to ensure that the

cargo fills the holds completely and will not shift.

Self-unloading vessel A bulk-carrying vessel equipped with cargo-handling machinery which makes it independent of shore labor and equipment in discharging the cargo.

Semen The impregnating fluid of male animals that contains spermatozoa. In livestock

trade, usually shipped frozen in straws, each containing enough semen to breed

one female. See also artificial insemination.

Separation The temporary physical separation of bulk grains of different classes within a given

compartment of a ship. See also l<obe-type separation and natural separation.

Sesame East Indian herb. Major Producers: India, China, Mexico, Japan. Products: Confectionery seed, edible sesame oil, sesame oilmeal.

Sheep Types: Major wool breed is Rambouillet; major meat breeds are Hampshire, Southdown, Dorset, Shropshire, Suffolk. Major Producers: Australia, Soviet Union, New

Zealand, India, Turkey. Units: Head. Diseases: Coccidiosis, clostridiosis, mastitis.

Products: Lamb, mutton, wool.

Shifting boards Loose plankings in the holds of vessels carrying bulk grains used to prevent cargo

from shifting and endangering the vessel's stability. See also self-trimming vessel.

Shipment Freight tendered to a carrier by one consignor at one place, for delivery to one consignee at one place on one bill of lading.

Shipping tolerance See loading tolerance.

Short-landed A term which indicates that less cargo has been unloaded at the port of destination

than was shown in the manifest.

Short shipment A shipment containing less than what was contracted for, because the vessel was

unable to load all of the cargo, due to lack of space, late arrival, or other error.

67
Short ton A measure of weight equal to 2,000 pounds or 907 kilograms. See also long ton

and metric ton.

Sight draft

Silo

Single-decl( vessel

A draft payable to the drawee upon delivery and presentation, or "upon sight."

A cylindrical structure designed for the storage of bulk grains. Also called elevator.

A vessel with a deep hold, used for the transport of bulk cargo such as grain, but

not suited for transport of bagged or packaged cargo.

Sisal A widely cultivated agave whose leaves yield a strong durable fiber. Known as henequén in Mexico. Major Producers: Brazil, Tanzania, Kenya, Madagascar, Mexico.

Grades: According to length of leaves. Products: Binder twine, rope, other cordage

products.

Sling A device, such as a rope net, for enclosing cargo to be hoisted by a tackle or crane

during loading or unloading of a vessel.

Slip

Sluice gate price

Smut

A ship's berth between two piers.

See minimum import price.

Any of various fungal diseases affecting grain which results in the formation of

black powdery masses of spores on the affected parts. Quarantines are often imposed on trade from affected areas.

Soft currency A currency that may not be exchanged without restrictions for another currency;

synonymous with "inconvertible currency." Also used to refer to an unstable currency whose value is likely to decline.

Softwood Coniferous trees, usually evergreen, having needles or scalelike leaves. Varieties:

Fir, pine, spruce, cedar. Major Producers: United States, Soviet Union, Canada,

Sweden. Units: Thousand board feet. Products: Logs, lumber, plywood, chips.

Sorghum Also called milo. Major Producers: United States, Argentina, India, Mexico, China,

Nigeria. Units: Metric tons, 56-pound bushels, hundredweight. Grades and classes:

U.S. No. 1-4 and Sample Grade, White, Yellow, Brown, and Mixed. Diseases: Smut,

stalk rot, anthracnose, sorghum downy mildew. Pests: Weevils. Products: Food and

feed grains, molasses.

68
Sow A mature (bred) female pig.

Soybean meal (SBM) A joint product of the oil extraction process. Uncrushed soybeans generally yield

about 80 percent meal. Grades: 44- or 48-percent protein. Products: Animal feed,

processed soy proteins.

Soybean oil Generally about 20 percent of the weight of uncrushed soybeans. Major Producer:

United States. Grades: Crude degummed, once refined, refined winterized, salad

oil.

Soybeans Major Producers: United States, Brazil, Argentina. Grades and classes: U.S. No.

1-4 and Sample Grade, Yellow and Mixed. Products: Edible soybean oil, soybean

meal.

Soy protein Types: Soygrits or flour, defatted soy flour, low-fat or full-fat soy flour, soy protein

concentrate, soy protein isolate, textured soy protein. Producer: United States.

Special drawing rights

(SDR)

International reserve assets, created by the International Monetary Fund (IMF) and

allocated to individual member nations. Within conditions set by the IMF, can be

used by a nation with a deficit in its balance of international payments to settle

debts with another nation or with the IMF.

Specific duty

Spinach

A duty expressed as a fixed amount per unit. See also ad valorem duty.

Types: Classified according to leaf type. Savoy (wrinkled), semi-savoy, flat-leafed.

Units: 20- to 22-pound crates or cartons. Major Producer: United States. Diseases:

Damping-off, downy mildew, mosaic, curly top, fusarium wilt. Pests: Aphids, spinach

leafminers, seed corn maggots.

Spot market A commodity exchange that trades in physical commodities, available for immediate

delivery upon sale. Also called cash market.

Squash Types: Summer (soft-shelled), winter (hard-shelled). Major Producers: United States,

Mexico. Units: 21-pound crates (summer), 40- to 50-pound crates (winter). Diseases:

Damping-off, downy mildew, powdery mildew, scab, bacterial wilt, fusarium root rot,

gummy stem blight or black rot, fruit rot, blossom blight, viruses.

69
Standard International

Trade Classification

(SITC)

A product classification system originally developed by the United Nations in 1950

to provide a standard for reporting international trade. Includes about 400 5-digit

codes for agricultural products and was developed in close coordination with the

Brussels Tariff Nomenclature. See also Customs Cooperation Council Nomenclature

and harmonized system.

Standards Code See Agreement on Technical Barriers to Trade.

Standstill A term associated with the General Agreement on Tariffs and Trade (GATT) Ministerial Declaration issued at Punta del Este, Uruguay, in 1986 which set the agenda for

the Uruguay Round of GATT multilateral trade negotiations. Refers to an agreement

among participants to not take any new or additional measures that are

trade-restrictive or GATT-inconsistent, or which otherwise improve their negotiating

positions. The standstill agreement is accompanied by a commitment to rollback

existing trade-restrictive measures.

Staple length A measure of the length of cotton fiber, generally given in thirty-seconds of an inch

or in millimeters.

Stearin The solid portion of palm oil. Olein is the liquid portion.

Steer A castrated male bovine animal usually intended for slaughter.

Stem To load, or arrange to load, a vessel within a specified time period. The stemming

date is that day upon which the loading begins and laytime commences.

Stevedore A person who works aboard ship loading or unloading cargo in the ship's hold. Also

called longshoreman.

Stocks See buffer stock, carryover, and Commodity Credit Corporation.

Stowage The loading of a vessel by handling and placing goods so as to ensure stability of

the vessel, maximum use of space, safety of cargo, and efficient loading and unloading. A description of each item and its disposition in the vessel after loading is

contained in the ship's stowage plan.

Strawberries Major Producers: United States, Canada, Mexico, Europe. Units: 10- to 12-pound

cartons with 12 1-pint trays, 16-quart crates weighing 32 pounds. Diseases: Oak

root fungus, powdery mildew, bacterial leaf spot. Pests: Aphids, mites.

70
Strike clause A clause in a standard contract which permits shipment after the contractual deadline if normal execution is rendered impossible due to a labor strike or other specified circumstance.

Subsidies code One of the multilateral agreements or codes, resulting from the Tokyo Round of

trade negotiations in the General Agreement on Tariffs and Trade, which aims to ensure that the use of subsidies by any signatory does not harm the trading interests

of another signatory.

Subsidy A direct or indirect benefit granted by a government for the production or distribution (including export) of a good. Usually granted for activities considered to be in

the public interest.

Sufferance The entry of goods into a country and the subsequent exportation without the payment of duties. See also entrepot, foreign trade zone, reexport, and transshipment.

Sugar Types: Cane (8.6 percent sugar recovered from raw material), beet (13 percent

sugar recovered from raw material). Major Producers: (Cane) Brazil, Caribbean, Argentina, Colombia; (beet) Soviet Union, European Community, United States, Poland. Grades: Primarily determined by polarity (sucrose content), moisture, ash, and

color. Diseases: (Cane) Mosaic, leaf scald, red rot; (beet) curly top, virus yellows,

rhizomania. Products: Refined sugar, molasses (byproduct of refining process).

Sunflower seed Major Producers: Soviet Union, United States, Argentina, China, Eastern Europe.

Products: Confectionery seed, edible sunflower oil, sunflower meal.

Supplementary imports Commodities similar to, and therefore in competition with, those produced commercially in the importing country. Examples for the United States are beef, wheat, and

cotton.

Support price A legislated price for a particular commodity, maintained through a variety of mechanisms, such as nonrecourse loans, deficiency payments, marketing orders, and

minimum import prices.

Surcharge A charge levied in addition to other taxes or duties. May be levied as a percentage

of the other charges or may be imposed on the original tax base.

Surtax See surctiarge.

71
Swine Varieties: Berkshire, Chester White, Duroc, Hampshire, Landrace, Poland, China,

Spotted, Yorkshire, and numerous hybrids. IVIajor Producers: China, Soviet Union,

United States, Brazil, West Germany. Units: Head. Diseases: Foot-and-mouth disease, African swine fever, atrophie rhinitis, dysentery, pseudorabies, transmissible

gastroenteritis, vesicular stomatitis. Products: Pork, variety meat, skin, pharmaceuticals.

Swine vesicular disease A highly contagious viral disease of swine, with signs very similar to foot-and-mouth

disease. Can be transmitted to humans from infected hogs. Trade in infected animals and meat products is restricted.

Tackle A system of pulleys and blocks on board a ship which is used to lift or assist in the

lifting of cargo while loading or unloading.

Tallow Edible and inedible rendered bovine and sheep fat, and inedible rendered hog fat.

Principal uses are in manufacture of soap, cosmetics, salad or cooking oils, margarine, feed, paint and varnish resins, plastics, and lubricants. Types: Edible, inedible.

Major Producers: United States, Soviet Union, Argentina, Australia, European Community. Grades: Prime, Extra-fancy, Choice, Bleachable Fancy. Grades are based

on titre, clarity, and free fatty acid content. Products: Stearins, oleic acids.

Tangerine Also called mandarin orange, Satsuma, mikan, clementine. Major Producers: Japan,

Spain, Italy, United States, Chile. Diseases: Tristeza, canker, rot, fungi, viruses.

Pests: Citrus scales, citrus mites, tropical fruit flies.

Tank A compartment in a vessel for carrying liquids, grain, etc. See also hold.

Tanker A vessel specially designed and constructed for the carriage of liquid cargo in bulk.

Tanning The processing of perishable rawhides and skins into pernnianent, durable leather,

through the use of alum, tannin potassium, or sodium bichromate.

Tare An allowance made for the weight of the container, or conveyance of goods. Deducted from the gross weight to obtain net weight.

Target price A minimum level of prices for particular commodities determined by U.S. law to provide an economic safety net for farmers. Sometimes called the "guaranteed price

level." The target price is the level at which the government bolsters farm income

by making price support payments to qualifying farmers for the difference between

average market prices and the target price. See also deficiency payments.

72
Tariff A tax assessed by a government in accordance with its tariff schedule on goods as

they enter (or leave) a country. May be imposed to protect domestic industries from

imported goods and/or to generate revenue. Types include ad valorem, specific,

variable, or some combination.

Tariff quota Application of a higher tariff rate to imported goods after a specified quantity of the

item has entered the country at a lower level.

Tariff schedule A list of articles or merchandise and the rate of duty to be paid to the government

for their importation.

Tariff union See customs union.

Tea Types: Green, Black, Oolong. Type is determined by method of fermentation. Major

Producers: India, Sri Lanka, China, Soviet Union, Kenya, Japan. Disease: Blister

blight. Pests: Spider mites.

Temperature-controlled

cargo

Cargo which must be transported at a specific temperature to prevent spoilage.

Tender (1) A written offer to buy or sell goods or services at a specified price; a bid. (2) A

small vessel which attends a larger vessel in port to supply provisions or communication between ship and shore.

Terms of trade The relationship over time between the price of a country's exports to the price of its

imports. If export prices received are higher than import prices, the terms of trade

are said to be favorable.

Threshold price Under the European Community's (EC) Common Agricultural Policy, the threshold

price is fixed at the level that will bring the selling price of imported grains up to the

level of the target price in the EC region with the least adequate supplies. Equivalent to the target price minus transportation costs and used to calculate the variable

import levy on non-EC grains.

Time draft A draft payable only after a specified period of time following date of issuance or

acceptance.

Title passing Exchanging the right to ownership of property.

73
Tobacco Types (Varieties): Flue-cured (Virginia), air-cured (burley, IVIaryland, Oriental), firecured, sun-cured. Major Producers: China, United States, India, Brazil, Soviet

Union, Turkey. Units: Farm-sales weight, dry weight, declared weight. Grades: In the

United States, based on leaf position. Diseases: Blue mold, anthracnose, wilt, black

shank, mosaic. Pests: Cutworms, tobacco hornworms, tobacco budworms. Products: Cigarettes, cigars, chewing tobacco, smoking and cut tobacco, snuff, homogenized sheet tobacco.

Tokyo Round The General Agreement on Tariffs and Trade (GATT) negotiations formally initiated

by the 1973 Tokyo Declaration and completed in 1979. Differed from the previous

GATT negotiations in that more countries were involved (including many developing

countries and several East European countries), and discussions were expanded to

include nontariff trade barriers, especially as they related to agricultural trade.

Tomato Major Producers: United States, Mexico, Taiwan, Spain, Italy, Portugal. Units: 25-

pound cartons. Diseases: Alternarla rot, anthracnose, bacterial canker.

Ton A measure of weight (see long ton, metric ton, and short ton) and also a measure of

volume (see measurement ton).

Ton cargo freight

Tonnage dues

Liner cargo for which charges are generally quoted on the basis of a ton.

A fee charged on the net registered tonnage of vessels entering a harbor, used for

maintaining buoys, moorings, and docks.

Topping off The last stage of filling a vessel to its maximum capacity. In ports too shallow to accommodate deep-draft vessels, such ships must be topped off by lighters in deeper

waters.

Towage Port charge for tugboat assistance into or out of a harbor, or when shifting from one

berth to another within the harbor.

Trade acceptance A draft on which the buyer acknowledges a responsibility to pay upon its

presentation.

Trade Agreements Act of

1979

U.S. law which approves and implements the trade agreements negotiated by the

United States in the Tokyo Round of the multilateral trade negotiations (MTN). As an

amendment of the Trade Act of 1974, incorporates into U.S. law the MTN

agreements on countervailing and antidumping duties, customs valuation, government procurement, product standards, agricultural agreements on meat and dairy

products, and liquor duties. In addition, extends the President's authority to negotiate trade agreements with foreign countries to reduce or eliminate nontariff barriers.

74
Trade balance The value of merchandise exported by a country minus the value of merchandise

imported. Distinct from the balance of payments, which includes the net account for

both goods and services. See also balance of trade.

Trade policy committee

(TPC)

The senior U.S. Government interagency trade committee established to provide

broad guidance on trade issues. It is chaired by the U.S. Trade Representative

(USTR) and is comprised of Secretary level individuals. The trade policy review

group which reports to the TPC is chaired by a Deputy USTR and is comprised of

Assistant Secretary level individuals. The trade policy staff committee, the level at

which position papers are initiated, is chaired by a Deputy Assistant USTR and is

comprised of office/director level individuals.

Trade preferences A broad term covering several forms of preferential trade treatment. Often used interchangeably with the term "tariff preferences," which refers to tariff treatment accorded to a country that is more favorable than that accorded to countries outside

the preferential arrangement.

Tramp A ship used primarily for the carriage of bulk commodities operating on regular

schedules or routes. Also called tramp steamer.

Tranche A French word meaning "slice" and thus applied to activities undertaken in chunks,

such as the issuance of securities or the drawing-down of a borrowing. Borrowings

from the International Monetary Fund are taken in tranches.

Transit shed A covered building on a wharf for temporary storage of cargo in transit between ship

and warehouse or further conveyance.

Transit zone A port of entry in a coastal country that is established as a storage and distribution

center for the convenience of a neighboring country lacking adequate port facilities

or access to the sea. Administered such that goods in transit to and from the neighboring country are not subject to customs duties, import controls, or many of the

entry and exit formalities of the host country.

Transshipment The transfer of cargo from one carrier to another during conveyance. Also the reshipment of a cargo to a third country.

Trigger An antidumping mechanism designed to protect domestic U.S. industries from underpriced imports. First introduced in the United States in 1978 to protect the steel

industry, it is the price of the lowest cost foreign producer. Imports priced below the

trigger price are assessed a duty equal to the difference between their price and

the trigger price.

75
Trigger level Under the U.S. Meat Import Law, the import level at which import restraints are imposed for the meats subject to the law. Equal to 110 percent of the adjusted base

quantity which is the average import level for the years 1968-1977, adjusted by a

production adjustment factor and a countercyclical factor.

Trimming The process of distributing grain or other bulk commodities in the holds of a vessel

to prevent shifting.

Triticale A wheat/rye hybrid with high yield and rich protein content, but low palatability. Major Producers: United States, Canada. Units: 60-pound bushels. Product: Animal

feed.

Tugboat A small tonnage vessel used for towing or assisting vessels in harbors, rivers, and

at docks.

Tung A tree fruit. Major Producers: China, Argentina, Paraguay. Product: Inedible oil used

for industrial purposes.

Ullage The measurement or estimate of space remaining in a partially filled tank of a

vessel.

Ultra-high temperature

milk (UHT)

Homogenized milk heated to temperatures between 135-150 Centigrade (275-302

Fahrenheit), then asceptically canned or packaged. Major Producers: Europe,

Oceania.

Under ship's tackle Cargo placed within reach of a ship's tackle during delivery. Expression used to define buyer's or seller's responsibilities with respect to delivery, with expense to be

assumed by each party.

United Nations

Conference on Trade

and Development

A group which focuses special attention on international economic relations and on

measures that might be taken by developed countries to accelerate economic development in developing countries.

Unit train A train of 3 to 150 cars in length, which can be loaded with bulk commodities in a

short period of time and can travel under one bill of lading.

U.S. flag vessel A merchant ship under U.S. registry.

76
U.S. International Trade

Commission (USITC)

An independent U.S. Government fact-finding agency whose six commissioners review and make recommendations concerning countervailing duty and antidumping

petitions submitted by U.S. industries seeking relief from imports that benefit from

unfair trade practices. Known as the U.S. Tariff Commission before its mandate was

broadened by the Trade Act of 1974.

U.S. Trade

Representative (USTR)

A Cabinet-level official with the rank of Ambassador who is the President's principal

advisor on international trade policy and is charged with expanding U.S. exports

and promoting free trade. Has lead responsibility for conducting all international

trade negotiations. Formerly known as the Special Trade Representative.

Usual marketing

requirement (UMR)

In the context of a RL. 480, Title I, agreement, the amount of a commodity which

the recipient country is required to import on a commercial basis as a condition of

the agreement. Normally based on the country's most recent 5-year average of

commercial imports of the commodity.

Vacuvator A pneumatic device used to unload bulk commodities from vessels.

Value-added Increasing the value of a good by further processing. Examples of value-added

products include soybean meal and oil, frozen vegetables for retail consumption,

and processed meats.

Value-added tax (VAT) A European Community (EC) tax assessed on the increased value of goods as they

pass from the raw material stage through the production process to final consumption. The tax on processors or merchants is levied on the amount by which they increase the value of items they purchase. The EC charges a tax equivalent to the

value added to imports and rebates value-added taxes on exports.

Variable levy An import tax which varies in order to assure that the import price, after payment of

the levy, will equal a predetermined minimum import price.

Variety meat Includes offals (meat from edible organs or from parts of the thoracic and abdominal cavities) and head meat (tongue, cheekmeat, etc.) of animals.

Veneer A very thin layer of wood, usually glued onto an inferior surface. Varieties: Birch,

oak, maple, walnut, also softwood. Major Producers: United States, Canada, Finland, Soviet Union, France, Indonesia, Malaysia, Philippines. Units: Thousand

square feet. Grades: Core stock, face, fancy. Products: Plywood, shipping containers, furniture, paneling.

77
Vesicular stomatitis A viral disease of cattle, swine, sheep, goats, and horses, with signs similar to those

of foot-and-mouth disease. Can be transmitted to humans as an influenza-like infection. Trade in infected animals is restricted.

Visible supply The amount of a particular commodity in store at loading centers. In grain markets,

the total stock of grain in store in public and in some private elevators in the principal primary markets.

Voluntary export

restriction (VER)

An understanding between trading partners in which the exporting nation, in order

to reduce trade friction, agrees to limit its exports of a particular good. Also called

voluntary restraint agreement.

Waiver Exemption from a legal obligation. In international agricultural trade, generally refers

to the exemption from the General Agreement on Tariffs and Trade (GATT) obligation

not to use quantitative import restrictions. In 1955, the United States obtained a

GATT waiver for quantitative import restrictions applicable to commodities specified

under Section 22 of the Agricultural Adjustment Act of 1933, as amended, e.g.,

dairy products, peanuts, and cotton. See also residual restriction.

Walnuts Varieties: (English) Payne, Hartley, Franquette; (Black) Eastern Black, Thomas,

Ohio. Major Producers: China, France, India, United States. Diseases: Crown rot,

walnut blight. Pests: Codling moths, mites, aphids. Product: Edible oil (used in

salads).

Watermelon Major Producers: United States, Mexico. Diseases: Anthracnose, fusarium wilt,

downy mildew, gummy stem blight, blossom end rot. Pests: Cucumber beetles, cutworms, melon aphids, leafminers.

Weighing charge

Wharfage

The cost for weighing goods while loading or unloading.

A usage charge assessed by a pier or dock owner against a cargo or steamship

company.

Wheat Varieties: White, Soft Red Winter, Hard Red Spring, Hard F^ed Winter, durum. Major

Producers: China, Soviet Union, India. Main exporters are the United States, Canada, Australia, Argentina, and the European Community. Units: 60-pound bushels,

metric tons. Grades and classes: U.S. No. 1-5 and Sample Grade, Hard Red

Spring, Hard Red Winter, Soft Red Winter, Durum, White, Unclassed and Mixed

Wheat. Diseases: Wheat rust, karnal bunt, flag smut, fusarium fungus. Pests: Rice

and corn weevils. Products: Animal feed, flour, bran, germ, gluten, starch.

78
Wheat Trade Convention See International Wheat Agreement.

Whey The liquid part of the milk remaining after separation of the curd in cheesemaking.

Types: Fluid, condensed, dry Units: Gallons, pounds, kilograms. Grade: Grade A.

Products: Used in foods and animal feed.

Wine Major Varieties: (Red) Zinfandel, Cabernet Sauvignon, Pinor Noir; (White) French

Colombard, Chenin Blanc, Chardonnay Major Producers: France, Italy, Soviet

Union, Spain, United States, Argentina. Most U.S. wine is derived from two basic

families of grape varieties—-vitis vinifera and vitis labrusca.

With particular average

(WPA)

See marine insurance.

Wood chips Small wood particles, generally produced from wood residues or as a byproduct of

sawmilling. Primary use is in the manufacture of wood pulp.

Wool Varieties: (U.S.) Territory, Fleece, Texas, California. Major Producers: Australia,

China, Argentina, New Zealand, Soviet Union, South Africa. Grades: Blood grades

(old system) are fine, medium, and coarse (or braid). Numerical count (new system)

is based on average fiber diameter (usually 18-40 microns). Pests: Fleece worms,

maggots. Products: Woven, knit, or felted textiles.

World Bank See International Bank for Reconstruction and Development.

World Food Program

(WFP)

A multilateral food aid organization established in 1962 by the Food and Agriculture

Organization of the United Nations. Contributes commodities, services, and cash to

developing countries to carry out economic and social development projects or to

meet emergency needs.

World price The price at which a fungible commodity moves in international markets. Often interpreted as the c.i.f. price of a commodity with specific characteristics, at the main

port of entry of a major importing country.

79
80
U.S. commondity marketing years

Almonds July1

— June 30

Apples July

1

— June 30

Avocados October

1

— September 30

Barley June

1

— May 31

Cherries May

1

— April 31

Corn, canned September

1

— August 31

Cotton August

1

— July 31

Cottonseed August

1

— July 31

Dry edible beans September

1

— August 31

Flaxseed June

1

— May 31

Filberts August

1

— July 31

Grapes June

1

— May 31

Grapefruit September

1

— August 31

Gum navel stores

Pitch April

1

— March 31

Rosin April

1

— March 31

Turpentine April

1

— March 31

Honey April

1

— March 31

Hops September

1

— August 31

Juices, fruit December

1

— November 30

Kiwifruit October

1

— September 30

Lemons August

1

— July 31

Limes April

1

— March 31

Molasses October

1

— September 30

Oranges November

1

— October 31

Oats June

1

— May 31

Peanuts July1

— June 30

Pears July

1

— June 30

Pistachios September

1

— August 31

Pecans October

1

— September 30

Prunes, dried August

1

— July 31

Prunes/Plums January

1

— December 31

Raisins August

1

— July 31

Rice August

1

— July 31

Rye June

1

— May 31

Sorghum September

1

— August 31

Soybeans September

1

— August 31

Strawberries January

1

— December 31

Sugar beets September

1

— August 31

Sugar cane

Mainland October

1

— September 30

Hawaii January

1

— December 31

Sunflowerseed September

1

— August 31

Tobacco

Flue-cured July

1

— June 30

All other October

1

— September 30

Tomatoes, processed July

1

— June 30

Vegetables, fresh October

1

— September 30

Walnuts August

1

— July 31

Wheat June

1

— May 31

Wool and mohair January

1

— December 31

81
Factors for converting weights and measures commonly

used for agricultural commodities

English

weight Metric equivalent

Metric

weight English equivalent

1 ounce - 28.3495 grams 1 gram .035274 ounce

1 pound = 453.5924 grams 1 gram .0022046 pound

1 pound .4535924 kilogram 1 kilogram 2.204622 pounds

1 pound .0045359 metric quintal 1 metric quintal = 220.4622 pounds

1 pound .0005 short ton 1 short ton = 2,000 pounds

1 pound .0004536 metric ton 1 metric ton = 2,204.622 pounds

1 pound .0004464 long ton 1 long ton = 2,240 pounds

1 kilogram .0011023 short ton 1 short ton = 907.1849 kilograms

1 kilogram = .001 metric ton 1 metric ton = 1,000 kilograms

1 kilogram .0009842 long ton 1 long ton = 1,016.047 kilograms

1 short ton

1 long ton

1 short ton

.907185 metric ton

1.016047 metric tons

.892857 long ton

1 metric ton

1 metric ton

1 long ton

1.102311 short tons

.984206 long ton

1.12 short tons

1 million pounds = 500 short tons 1 short ton

1 million pounds = 453.5925 metric tons 1 metric ton

1 million pounds = 446.4286 long tons 1 long ton

.002 million pounds

.0022046 million pounds

.00224 million pounds

Factors for converting dry and liquid measures^

Unit Metric equivalent Unit English equivalent

Dry measure Dry measure

1 pint = .5506 liter 1 liter .8162 pints

1 quart = 1.1012 liters 1 liter .9081 quart

1 peck = 8.8098 liters 1 liter .1135 peck

1 bushel = 35.2391 liters 1 liter .0284 bushel

1 cubic inch = .0164 liter 1 liter 61.0240 cubic inches

1 cubic foot = 23.3169 liters 1 liter .0353 cubic foot

1 cubic meter = 1,000 liters 1 liter = .0010 cubic meter

Liquid measure Liquid measure

1 fluid ounce = .0296 liter 1 liter 33.8140 fluid ounces

1 liquid pint = .4732 liter 1 liter 2.1134 pints

1 liquid quart = .9464 liter 1 liter 1.0567 quarts

1 gallon = 3.7854 liters 1 liter .2642 gallon

1 cubic inch = .0164 liter 1 liter 61.0237 cubic inches

1 cubic foot = 28.3169 liters 1 liter .0353 cubic foot

1 milliliter = .0010 liter 1 liter = 1,000 milliliters

^In the metric system of weights and measures, designations of

multiples and subdivisions of any unit may be derived by combining

with the name of the unit the prefixes deka, hecto, and kilo,

meaning, respectively, 10, 100, and 1,000 and deci, centi, and milli,

meaning, respectively, one-tenth, one-hundredth, and onethousandth.

82
Factors for obtaining carcass weight equivaients of

commercial meat and meat products

Carcass weight

Product equivalent factors

Beef

Fresh or chilled

With bone 1.00

Without bone 1.43

Retail cuts 1.37

Canned .88

Other .79

Veal

Fresh or chilled 1.00

Retail cuts 1.06

Pork

Fresh or chilled

Carcasses 1.00

Hams and shoulders 1.11

Other 1.47

Retail cuts 1.03

Canned 1.46

Bacon 1.03

Hams and shoulders 1.30

Other 1.16

Lamb and mutton

Fresh or chilled 1.00

Goat

Fresh or chilled .08

Sausage and similar products

Beef .41

Pork .66

Edible offal .05

Other meat and edible offal

Fresh or chilled 1.00

Canned and other

Beef .02

Pork .08

Edible offal .89

Edible offal

Beef

Tongues 1.00

Livers 1.00

Other 1.00

Veal 1.00

Sheep and lamb 1.00

Pork

Livers 1.00

Other 1.00

Other 1.00

83
Factors for obtaining retail weights from weights at

specified market levels

Commodity Primary weight form Factor

Dairy products

Fluid milk and cream Farm weight .93

Cheese Factory weight 1.00

Meats

Beef Carcass weight .74

Veal Carcass weight .83

Lamb Carcass weight .89

Pork Carcass weight .92^

Poultry

Chickens Ready-to-cook weight 1.00

Turkeys Ready-to-cook weight 1.00

Eggs Farm weight .97^

Fish

Fresh and frozen Edible weight 1.00^

Shellfish, fresh and frozen Edible weight 1.00

Cured fish Cured weight 1.00

Fats and oils

Lard Fat content 1.00

Margarine Fat content 1.25

Compounds, vegetable and

cooking fats Fat content 1.00

Peanuts, shelled edible Farmer's stock basis .556

Sugar Refined 1.00

Raw value .935

Dry beans and peas Farm weight, cleaned .96

Grain products

Barley, pearl Farm weight of barley .604

Barley, other food use Farm weight of barley .708^

White flour Farm weight of wheat .731

Whole wheat flour or meal Farm weight of wheat .98

Corn meal Farm weight of shelled corn .893

Hominy grits Farm weight of shelled corn .518

Cornstarch Farm weight of shelled corn .614

Corn cereals Farm weight of shelled corn .384

Corn syrup Farm weight of shelled corn .672

Corn sugar Farm weight of shelled corn .536

Oat cereal Farm weight of oats .579

Rye flour Farm weight of rye .80

Buckwheat flour Farm weight of buckwheat .60

Rice, milled Wholesale weight 1.00

84
Factors for obtaining retail weights from weights at

specified market levels (continued)

Commodity Primary weight form Factor

Fresh fruits

Apples

Apricots

Avocados

Bananas

Cherries

Citrus

Oranges

Tangerines

Grapefruit

Lemons

Limes

Tangelos

Cranberries

Dates

Figs

Grapes

Melons

Cantaloupes

Watermelons

Nectarines

Peaches

Pears

Pineapples

Plums or prunes

Strawberries

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Fresh vegetables

Onions, dry Farm weight

Pototoes Farm weight

Sweet potatoes Farm weight

Tomatoes Farm weight

Dark green and deep yellow vegetables

Broccoli Farm weight

Carrots Farm weight

Escarole Farm weight

Kale Farm weight

Peppers, green Farm weight

Spinach Farm weight

Other

Artichokes Farm weight

Asparagus Farm weight

.96

.91

.94

1.00

.92

.97

.94

.97

.96

.95

.96

.96

.96

.91

.91

.92

.90

.95

.94

.95

.95

.95

.92

Canned fruits and juices Canned weight 1.00

Chilled fruits and juices Product weight 1.00

Dried fruits Packed processed weight 1.00

Frozen fruits and juices Frozen weight 1.00

.94

.96

.90

.85

.92

.97

.93

.88

.92

.88

.93

.91

85
Factors for obtaining retail weights from weights at

specified market levels (continued)

Commodity Primary weight form

Beans

Lima

Snap

Beets

Brussels sprouts

Cabbage

Cauliflower

Celery

Corn

Cucumbers

Eggplant

Garlic

Lettuce, all varieties

Onions, green

Peas

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

Farm weight

^Average 1975-77.

^This factor allows for breakage only. In addition there is a loss of

weight of about 4 percent from producer to retailer because of

evaporation. The latter loss does not affect the nutritional value of

the eggs.

^Factor for obtaining edible weight from round weight is .45. Factor

for obtaining dressed weight from round weight is .70.

"^In terms of malt equivalent.

^Chocolate liquor equivalent (53 percent fat content).

Conversion factors for 48-pound bushels of barley,

buckwheat, and apples

Factor

.92

.94

.93

.92

.93

.92

.93

.92

.92

.90

.81

.93

.94

.95

Canned vegetables Canned weight 1.00

Frozen vegetables Frozen weight 1.00

Dehydrated vegetables Dehydrated weight 1.00

Beverages

Coffee

Tea

Green bean basis

Import weight basis

.84

1.00

Cacao products Bean basis .80^

Bushels

1 bushel =

IVIetric equivalent

.024 short ton

Metric equivalent

1 short ton

Bushels

41.667 bushels

1 bushel = .021772 metric ton 1 metric ton 45.9296 bushels

1 bushel = .021429 long ton 1 long ton 46.667 bushels

86
Conversion factors for cattle, calves, sheep and lambs,

and hogs commercially slaughtered

Average live Average dressing

Species weight (1976^) yields (1976)

Pounds Percent

Cattle 1,018 59J

Calves 267 56.7

Sheep and lambs 109 49.5

Hogs 238 TLÄ^

^Cattle and calf weights for 1976 were affected by the large

number of nonfed cattle marketed.

^Dressing yield for packer-style, pork carcass, federally inspected

slaughter. To obtain shipper-style pork carcass, add 7 percent.

Conversion factors for 56-pound bushels of corn,

rye, sorghum grain, and flaxseed

Bushels

1 bushel =

IVIetric equivalent

.028 short ton

Metric equivalent

1 short ton 35.714

Bushels

bushels

1 bushel = .0254 metric ton 1 metric ton 39.368 bushels

1 bushel = .025 long ton 1 long ton 40 bushels

87
Conversion factors for cotton acreages, cotton, and cotton

products^

From To obtain Multiply by

Acreage

Planted Acreage harvested

Cottonseed produced, tons

Cottonseed crushed, tons

Cotton produced, 480-pound bales

Cotton produced, pounds

Unters, pounds

Unters, tons

.932

.358

.338

.919

.441

60.700

.030

Harvested Acreage planted

Cottonseed produced, tons

Cottonseed crushed, tons

Cotton produced, 480-pound bales

Cotton produced, pounds

Unters, pounds

Unters, tons

1.073

.384

.362

.986

.473

65.200

.033

Cottonseed produced

Tons

Pounds

Cottonseed crushed, tons

Unters, tons

Seed cotton, pounds

.944

.085

1.616

Cottonseed crushed

Tons Unters, tons

Cottonseed crude oil produced, tons

Cottonseed meal produced, tons

.090

.161

.451

Cotton produced

480-pound bales Cottonseed produced, tons

Cottonseed crushed, tons

Cottonseed crude oil produced, tons

Cottonseed meal produced, tons

Unters, tons

Cottonseed produced, pounds

Cottonseed crushed, pounds

Cottonseed crude oil produced, pounds

Cottonseed meal produced, pounds

Unters, pounds

Seed cotton, pounds

.389

.367

.059

.166

.033

1.622

1.531

.246

.691

.138

2.6622

Cotton

480-pound bale

Running bales

Seed cotton, pounds

Running bales

480-pound bales

Cotton produced, pounds

Cottonseed produced, pounds

.961

1.040

.3812

.6192

'All figures based on the 5-year average, 1971/72-1975/76.

^Cotton production plus cottonseed production. The 1971/72-

1975/76 5-year average quantity of cottonseed used for planting 1

acre of cotton was 27.4 pounds per acre. One pound per acre

equals 1.12085 kilograms per hectare. One kilogram per hectare

equals 0.89218 pound per acre.

88
Conversion factors for eggs

U.S. shell egg

for consumer

sizes

grades

Minimum net weight per

Case (30 dozen) Dozen

Jumbo

Pounds

56.0

Ounces

30

Pounds

1.88

Extra large 50.5 27 1.69

Large 45.0 24 1.50

Medium 39.5 21 1.31

Small 34.0 18 1.12

Peewee 28.0 15 .94

Average weighit sold at retail 47.0 25 1.57

Conversion factors for fruit juices and concentrates

Juice and specification Standard brix

Net weight

of gallon

Gallons per

metric ton

Orange

Single strength

Frozen concentrate 3:1

Frozen concentrate 6:1

Degrees

11.8

42

65

Kilograms

3.95

4.49

4.99

Metric tons

253

223

200

Grapefruit

Single strength

Frozen concentrate 3:1

Frozen concentrate 6:1

10

40

58

3.95

4.45

4.81

253

225

208

Lemon 1 N/A N/A

Apple

Single strength

Frozen concentrate 7:1

13.3

70-72

3.99

5.13^

251

195

Grape (slip skin)

Single strength

Concentrate 3.5:1

16

50

4.04

4.67

248

214

Pineapple

Single strength

Concentrate 3:1

Concentrate 4:1

14.3

50

61

3.99

4.87

4.90

251

214

204

Prune

Single strength

Concentrate 1.5:1

18.5

28

4.26

5.17

235

193

^ Lemon product yields are based on a standard ton containing

36.5 pounds of anhydrous citric acid.

^The brix midpoint of 71 degrees was used for calculation.

89
Conversion factors for 32-pound bushels of oats

Bushels

1 bushel =

Metric equivalent

.016 short ton

Metric equivalent

1 short ton

Bushels

62.5 bushels

1 bushel = .014515 metric ton 1 metric ton 68.8944 bushels

1 bushel = .014286 long ton 1 long ton 70 bushels

Conversion factors for 38-pound bushels of oats

Bushels

1 bushel =

Metric equivalent

.019 short ton

Metric equivalent

1 short ton 52.63

Bushels

bushels

1 bushel = .01724 metric ton 1 metric ton = 58.016 bushels

1 bushel = .01696 long ton 1 long ton 58.94 bushels

Conversion factors for oilseed products

Soybeans

1 metric ton = 36.7437 bushels

60 pounds = 1 bushel

1 bushel = .30 short tons

or .0272155 metric tons'

Soybean meal

1 short ton - .907185 metric tons'"

Soybean oil

1 pound = .0004536 metric tons^

Flaxseed

1 metric ton = 39.36 bushels

56 pounds = 1 bushel

1 bushel = .0280 short tons

or .0254 metric tons'

Sunflowerseed (oil variety)

30 pounds = 1 bushel

Rapeseed

50 pounds = 1 bushel

Peanuts

unshelled X .75 = shelled

shelled X 1.33 = unshelled

Cotton

lint cotton X 2 = cottonseed

seed cotton X .65 = cottonseed

M metric ton = 2,204.6 pounds.

90
Conversion factors for poultry 1986^

Average live

weight

Average dressing

yields^

Chicken

Pounds Percent

Young 4.2 72.6

Mature 4.5 61.9

All 4.3 72.2

Turkeys

Fryer-roaster 9.7 79.9

Young 20.2 79.6

Old 22.2 77.2

All 20.0 79.6

Ducks 6.5 70.0

Other 4.3 59.3

Total 4.9 73.3

^ Based on total poultry slaughtered under Federal regulation.

^Yield of ready-to-cook weight, including neck and giblets, as a

percentage of total live weight inspected.

Conversion factors for rice and rice products

Product

Hundredweight

of rough rice

to pounds

of product

Pounds of

product to

hundredweight

of rough rice

Pounds of

milled rice

to pounds

of product

^Rice conversion factors vary substantially depending on the type

and variety of rice milled. These data are based on national

averages over a period of time and are not a perfect measure of any

crop's milling yield.

Miscellaneous factors relating to rice:

1 bushel rough rice = 45 pounds

1 hundredweight rough rice = 100 pounds or 2.22 bushels

1 barrel rough rice = -162 pounds or 3.6 bushels

Pounds of

product to

pounds of

milled rice

Rice, rough 100.0 0.01000 1.5038 0.6650

Brown 82.0 .01220 1.2330 .8110

Milled^ 66.5 .01504 1.0000 1.0000

Brewers 3.0 .33333 .0451 22.1667

Bran 10.9 .09174 .1639 6.1009

Polish 1.6 .62500 .0241 41.5625

91
Conversion factors for adjusting tobacco stocks reported by dealers and

manufacturers to a farm-sale-weight equivalent

Factors to muliply by to convert

Stemmed stocks to Unstemmed stocks

Farm-sales- to farm-salesType Unstemmed weight weight equivalent

Type number equivalent equivalent from packed weight

Auction market areas

(types 11-37)^ 1.313

Flue-cured 11-14 1.470 1.12

Virginia fire-cured 21 1.299 1.598 1.23

Tennessee and Kentucky

fire-cured 22-23 1.324 1.4712 1.04

Burley 31 1.345 1.550 1.12

Southern Maryland 32 1.373 1.400 1.02

One Sucker 35 1.413 1.554 1.10

Green River 36 1.389 1.570 1.13

Virginia sun-cured 37 1.326 1.538 1.16

Miscellaneous domestic 72-73 1.333 1.493 1.12

Imported leaf (types 81-93)

Cigar leaf 81-89 1.400 1.624 1.16

Oriental and Aromatic 91 1.333 1.466 1.10

Flue-cured 92 1.295 1.450 1.12

Burley 93 1.345 1.506 1.12

92
Conversion factors for adjusting tobacco stocks reported by dealers and

manufacturers to a farm-sales-weight equivalent (continued)

Factors to multiply by to convert

Unstemmed stocks to farm-sales

Stemmed stocks to weight equivalent from packed weight

Farm-salesType Unstemmed weight Sweated Marked Farm-salesType number equivalent equivalent weight^ weights weight3

Domestic-grown cigar leaf

(types 41-62)

Pennsylvania seed leaf 41 1.444 1.7182 1.19 1.05 1.00

Ohio 42-44 1.454 1.730 1.19 1.05 1.00

Puerto Rican 46 1.314 1.551 1.18 1.16 1.00

Connecticut Broadleaf 51 1.375 1.622 1.18 1.04 1.00

Connecticut Havana

Seed 52 1.386 1.635 1.18 1.04 1.00

Southern Wisconsin 54 1.383 1.687 1.22 1.06 1.00

Northern Wisconsin 55 1.404 1.713 1.22 1.06 1.00

Connecticut share 61 1.245 1.419 1.14 1.10 1.00

Georgia and Florida

shade 62 1.235 1.408 1.14 1.10 1.00

"Types 11-37 are reported on the basis of packed weight.

2Farm-sales-weight equivalent based on unstemmed sweated

weight factor.

3The instructions for reporting unstemmed cigar-leaf of the domestic

types require that dealers and manufacturers indicate the weight

basis on which the tobacco is reported, namely, farm-sales-weight,

marked weight, or sweated weight. The stocks are converted to the

farm-sales-weight equivalent on the basis of average factors

reflecting the percentage reported each quarter in each of these

categories.

93
Conversion factors for tree nuts

Commodity

Shelled weight

from in-shell

weight

In-shell equivalent

from shelled weight

Almonds

Domestic^ .60 1.67

Imported .30 3.33

Brazil nuts .50 2.00

Cashews .22 4.55

Chestnuts .84 1.19

Filberts

Domestic .40 2.50

Imported .45 2.22

Macadamias .38 2.63

Pecans

Improved .40 2.50

Seedling .36 2.78

Walnuts, English

Domestic^ .36 2.78

Imported .42 2.38

Walnuts, black .17 5.88

Pistachios .50 2.00

^Average for domestic crop in recent years. The following illustrate

the variation among varieties: Nonpareli, Merced, and Thompson

.60; Mission .40; and Peerless .35. Peerless is frequently marketed

in-shell.

^Average for portion of crop shelled commercially. Equivalent

shelled-in-shell ratio for graded walnuts sold in-shell is .45, and

average for entire U.S. walnut crop is .40.

Conversion factors for 60-pound bushels of wheat, white

potatoes, and soybeans

Bushels

1 bushel =

Metric

.03

equivalent

short ton

Metric equivalent

1 short ton

Bushels

33.333 bushels

1 bushel -= .0272155 metric ton 1 metric ton 36.7437 uüSíifcíib

1 bushel = .0267857 long ton 1 long ton 37.333 bushels

1 bushel = .272155 metric quintal 1 metric quintal ^ 3.67437 bushels

1 bushel = 27.2155 kilograms 1 kilogram .036744 bushel

94
Conversion factors for wood products

Softwood and hardwood logs 1 thousand board feet (MBF) = 4.53 cubic meters

(CUM)

Wood chips Short tons = .9072 metric tons (MT)

Softwood and hardwood lumber,

floohng, RR ties

- 1 MBF - 2.358 CUM

Softwood and hardwood veneer 1 thousand square feet (MSP) = .295 CUM

(Assuming Vs" basis)

Softwood and hardwood plywood,

Structural particleboard,

Waferboard and OSB

1 MSP = .885 CUM (Assuming %" basis)

(1 MSP = 92.94 square meters)

Hardboard - 1 MSP = .295 CUM (Assuming Vs" basis)

Medium-density fiberboard

Mat-formed particleboard

1 MSP = 1.770 CUM (Assuming %" basis)

- 1 MSP = 1.770 CUM (Assuming %" basis)

95
Yield factors for liquid eggs and dried eggs and the moisture content of dried eggs,

by types of product

Egg products

Yield from 1 dozen shell

eggs

Liquid egg Dried egg

Requirements for 1 pound

of dried egg products

Liquid Dozen shell

egg^ eggs

Yield of dried egg

product from

100 pounds 30 dozen

of liquid shell eggs

egg

Percent of

approximate

moisture content

of dried egg

product^

Pounds Pounds

Whole eggs 1.317 .347 3.8 2.89 26.32 10.39 3-4

Albumen (flake) .753 .099 7.6 10.09 13.16 2.97 12-16

Albumen (spray) .753 .092 8.2 10.90 12.20 2.76 6-8

Yolk .563 .256 2.2 3.91 45.45 7.68 3.5-4.5

1 Concentration factors used by the U.S. Department of

Agriculture for estimating the conversion of liquid to dried to

check yields and volume reports.

2Values recommended in "Approximate Moisture Content of

Dried Egg Product," Poultry Division, Agricultural Marketing

Service, U.S. Department of Agriculture, letter dated

December 7, 1976.

Note: Data represent recent commercial experience as well

the effect of current sanitary regulations on yields of egg

products.

as

Yield factors for oilseed products (representative percent)

Raw material Meal Oil Pounds/gallons (oil)

Copra (coconut oil)

Corn gernn

Cottonseed

Flaxseed (linseed)

Olives

35

50

47

63

64

50

16

34

15

7.5

7.7

7.7

7.7

7.6

Palm (fresh fruit bunch)

Painn kernel

Peanuts

N/A

51

22

47

7.7

7.5

Farmer's stock

Shelled

38.5

54

32

45 7.7

Rapeseed 59 38 7.7

Soybeans 79.5 17.7 7.7

Sunflowerseed 55 40 7.7

96
1022280501
United States

Department of Agriculture

Wasliington, D.C. 20250-1000

OFFICIAL BUSINESS

Penalty for Private Use, $300