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PROLIFERATION AND PROLIFERATION FINANCING

GLOSSARY

Consignee

The person or organisation to which goods are exported. Literally, "the person to whom the goods are consigned". Not necessarily the end user.

Correspondent Bank

A financial institution that provides services in a market on behalf of another financial institution that does not have access to that market.

Dual-Use Goods

Items, including software and technology that can be used for both civil and military purposes. For example certain machine tools used for repairing automobiles can also be used to manufacture component parts of missiles.

End-Use

The final use of exported goods.

End-User

The intended user of the goods. Not necessarily the consignee.

Forfaiter

In international trade, the selling of an exporter's receivables (money due) for a particular transaction. Generally, the exporter forfaits the receivable at a discount. This improves cash flow but reduces income.
The buyer is known as a forfaiter, and assumes all the risks associated with collecting the receivables.

Free Trade Zone Also known as a foreign-trade zone (formerly free port), is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the formalities of complex customs examinations and
regulations, or the intervention of customs authorities.

Letter of credit

A binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. A letter of credit gives the seller reassurance that he will receive the payment for the goods.

Means of delivery

Missiles, rockets and other unmanned systems capable of delivering nuclear, chemical, or biological weapons that are specially designed for such use.

Proliferation

The manufacture, acquisition, possession, development, export, transhipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations. Includes technology, goods, software, services or expertise.

Proliferation financing

The act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, transhipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.

Proliferation-sensitive goods Nuclear, chemical or biological equipment, material, or technology used in the research, design, development, testing, or production of nuclear, chemical or biological weapons.

Related materials

Materials, equipment and technology which could be used for the design, development, production or use of nuclear, chemical and biological weapons and their means of delivery.

Trade Finance

The institutions or transactions involved in the financing of international trade. Trade finance looks at banks, credit agencies, insurers, forfaiters, and any other person or institution who enables importers and exporters to trade across borders.

Transhipment

Goods which are not destined for end-use in country, but are passing through it en route to another country.

UNSCR

United Nations Security Council Resolution - imposing sanctions on targeted country.

WMD

Weapons of Mass Destruction.

For further terms, please refer to: Glossary - Export Control

 

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