Hazmat: Hazardous materials regulated by various gov-
ernment agencies, DOT/CFR Title 49, IATA, IMCO, Coast
Guard, etc. Personnel who interface with hazmat cargoes
need to be certified to do so.
Hedging: A mechanism that allows an exporter to take a
position in a foreign currency to protect against losses due
to wide fluctuations in currency exchange rates.
Hold: The space below deck inside an ocean-going vessel.
International Air Transportation Association (IATA):
Agency that regulates and promotes safe, reliable, secure,
and economical air services for travelers and air freight.
In bond: Transportation of merchandise under custody of
a bonded carrier
Irrevocable letter of credit: A letter of credit in which the
specified payment is guaranteed by the bank if all terms
and conditions are met by the drawee (buyer). See also
Revocable letter of credit.
ISO 9000: Issued in 1987 by the International
Organization for Standardization, ISO 9000 is a series of
five international standards that establish requirements
for the quality control systems of companies selling
goods in the European Community. It now includes
many additional countries and companies throughout
the world.
Joint venture: A business undertaking in which more
than one company shares ownership and control.
Letter of credit: A document issued by a bank per instruc-
tions from a buyer of goods that authorizes the seller to
draw a specified sum of money under specified terms, usu-
ally on the receipt by the bank of certain documents
within a given period of time.
Licensing: A business arrangement in which the manu-
facturer of a product (or a company with proprietary
rights over certain technology, trademarks, etc.) grants
222 GLOBAL SOURCING LOGISTICS

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