Background Pattern Forum

Industry Glossary

Expand your knowledge with our comprehensive glossary of industry terms

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A

Automated Warehouse

An automated warehouse is a facility equipped with advanced technologies and robotic systems to automate various warehouse operations, such as storage, picking, and packing. Automated warehouses increase efficiency, accuracy, and throughput while reducing labor costs and human error.

Average Inventory

Average inventory is the average level of inventory held over a specific period, calculated by averaging the beginning and ending inventory levels. It is a key metric used in inventory management to assess inventory performance, turnover rates, and carrying costs.

Allocations

Allocations refer to the process of distributing limited resources, such as inventory, production capacity, or transportation capacity, among competing demands. Effective allocation strategies ensure that resources are utilized optimally to meet customer demand while minimizing costs and maximizing profitability.

Aggregate Planning

Aggregate planning is a strategic process used to determine overall production levels, workforce requirements, and inventory levels over a specified time horizon. It aims to balance supply and demand while minimizing costs and maximizing efficiency in the production process.

Asset Utilization

Asset utilization measures the efficiency with which assets, such as equipment, machinery, or facilities, are utilized to generate revenue or output. It is calculated by comparing actual asset usage to maximum potential usage and is essential for optimizing resource allocation and productivity.

B

Bilateral Investment Treaty (BIT)

Salesforce, a leading provider of customer relationship management (CRM) solutions, offers robust automation capabilities tailored specifically for marketing teams.

Beta Coach

Salesforce, a leading provider of customer relationship management (CRM) solutions, offers robust automation capabilities tailored specifically for marketing teams.

Beta Noble Knight Award

Agreement between India and the US providing legal protection and guarantees for investments made by investors from one country in the territory of the other country, promoting bilateral investment flows.

Bureau of Industry and Security (BIS)

US government agency responsible for implementing and enforcing export control regulations, including licensing of dual-use goods and technologies exported from India.

C

Country of Origin Labeling (COOL)

US regulatory requirement mandating the labeling of certain products with the country of origin, influencing consumer preferences and market access for Indian exports.

Counterfeit Goods

Unauthorized replicas or copies of branded products sold in violation of intellectual property rights, subject to enforcement actions by Indian and US authorities, impacting market access and brand reputation.

Customs Clearance

Process of completing customs formalities and documentation required for importing goods into the US, ensuring compliance with customs regulations.

Compliance Standards

Regulations and standards imposed by the US government or regulatory bodies that exporters must adhere to ensure product compliance and market access.

Customs Broker

Licensed professional facilitating customs clearance and compliance for importers and exporters, ensuring smooth transit of goods across borders.

D

Digital Services Tax (DST)

Tax imposed by India on digital services provided by foreign companies, subject to negotiation and potential disputes under the US-India Digital Economy Framework Agreement.

Deemed Exports

Transactions where goods are supplied within India but are considered exports, triggering export-related benefits and compliance requirements, such as technology transfer controls.

E

Export Promotion Agencies

Government bodies and trade associations in India and the US responsible for promoting exports, providing market intelligence, trade facilitation services, and export promotion programs to Indian exporters targeting the US market.

Export Promotion Zones

Designated areas in India offering tax incentives, streamlined customs procedures, and infrastructure support to boost exports, attracting foreign investment and promoting industrial growth.

Export Licensing

Authorization granted by government authorities allowing the export of controlled goods, ensuring compliance with export regulations.

Export Controls

US regulations governing the export of sensitive goods, technologies, and services, requiring exporters to obtain licenses and comply with export control laws.

Export Compliance Program

Program implemented by Indian exporters to ensure compliance with US export control regulations, including internal controls, training, audits, and screening procedures, minimizing legal and reputational risks.

Export Documentation

Required paperwork, such as invoices, packing lists, and certificates of origin, necessary for exporting goods from India to the US.

F

Foreign Trade Policy (FTP)

Indian government policy framework governing international trade and export promotion strategies, including incentives, export promotion schemes, and measures to facilitate trade with the US market.

Foreign Direct Investment (FDI)

Investment made by Indian companies in the US, contributing to economic growth, job creation, and technology transfer.

H

Harmonized System Explanatory Notes

Detailed explanations and interpretations of the Harmonized System (HS) codes issued by the World Customs Organization, guiding customs authorities in the classification of goods traded between India and the US.

Harmonized Tariff Schedule (HTS)

System for classifying imported and exported goods based on standardized codes, facilitating customs clearance and tariff determination for India-US trade.

I

Import Regulations

Rules and requirements imposed by US customs authorities governing the entry of foreign goods into the country, including product standards, labeling, and documentation.

IPR (Intellectual Property Rights)

Legal rights protecting creations of the mind, such as patents, trademarks, and copyrights, crucial for protecting innovation in trade.

Importer of Record (IOR)

Entity responsible for ensuring compliance with US customs regulations and paying duties and taxes on imported goods, including Indian exporters shipping goods to the US market.

INCOTERMS (International Commercial Terms)

Standardized terms defining the responsibilities of buyers and sellers in international trade contracts.

L

Letters of Credit

 Financial instrument issued by banks to guarantee payment to exporters upon presentation of specified documents, reducing payment risk in trade transactions.

M

Mutual Recognition of Degrees

Agreement between Indian and US educational institutions recognizing the equivalence of academic degrees and qualifications, facilitating mobility and employment opportunities for Indian professionals in the US.

Mode 4 Services

Mode of service delivery under the WTO's General Agreement on Trade in Services (GATS) involving the movement of natural persons, impacting Indian professionals and service providers seeking entry into the US market.

Market Access

Ability of exporters to penetrate and compete in the US market, influenced by tariff barriers, regulatory requirements, and consumer preferences.

Market Entry Strategy

Plan outlining the approach and tactics for entering the US market, considering factors such as market analysis, product positioning, and distribution channels.

Market Intelligence

Gathering and analysis of information on US market trends, consumer behavior, and competitive landscape to inform export strategies and market entry decisions.

P

Preferential Trade Agreement

Agreement between India and the US granting preferential treatment to certain products in trade, facilitating market access.

R

RoHS (Restriction of Hazardous Substances)

Regulation restricting the use of certain hazardous materials in electronics and electrical products exported to the US.

Rules of Origin

Criteria used to determine the country of origin of goods for the purpose of applying tariffs and trade preferences, essential for claiming preferential tariff treatment.

S

SPS Measures (Sanitary and Phytosanitary Measures)

Regulations addressing food safety and animal and plant health standards for goods exported to the US.

Rules of Origin

Criteria used to determine the country of origin of goods for the purpose of applying tariffs and trade preferences, essential for claiming preferential tariff treatment.

T

Trade Facilitation

Measures to streamline the flow of goods and services from the point of origin to the point of consumption, optimizing efficiency and minimizing costs.

Trade Finance Instruments

Financial tools, such as documentary credits, trade finance loans, and factoring, used to facilitate and support international trade transactions.

Trade Remedies

Measures such as anti-dumping duties and countervailing duties imposed to counter unfair trade practices.

Trade Promotion Authority (TPA)

Legislative authority granted by the US Congress to the President to negotiate trade agreements, including agreements with India.

Trade Promotion Forums

Platforms for Indian exporters and US importers to exchange information, explore business opportunities, and address trade-related challenges, including trade fairs, business forums, and industry associations promoting India-US trade relations.

Transfer Pricing Adjustments

Adjustments made by tax authorities to the pricing of intra-group transactions between Indian and US affiliates to align with arm's length principles, requiring documentation and dispute resolution mechanisms to mitigate tax risks.

Trade Negotiations

Bilateral or multilateral discussions between India and the US to address trade issues, resolve disputes, and negotiate trade agreements.

Trade Barriers

Regulations or restrictions that hinder international trade, such as tariffs, quotas, and subsidies.

Trade Agreement

Formal agreement between countries to facilitate trade by reducing barriers and promoting cooperation.

Trade Commission

Government agency responsible for overseeing trade policies and agreements.

Trade Financing

Financial services and instruments, such as export credit insurance and trade loans, facilitating international trade by providing funding and risk mitigation.