International Commercial Terms Document - E

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Economic Life(Useful Life): The period of time during which an asset will have economic value and be usable.

Effective Lease Rate: The effective rate (to the lessee) of cash flows resulting from a lease transaction. To compare this rate with a loan interest rate, a company must include in the cash flows any effect the transactions have on federal tax liabilities.

Endorsement: Signing on the back of a document so as to assign a right or benefit to another party. Endorsement by the seller may be necessary for transport documents, insurance documents, bills of exchange or many other documents.

Engagement: The assumption of payment responsibility in respect of a letter of credit, e.g. when an Advising bank agrees to add its confirmation to a credit.

Equity Participant: The owner participant, trustor owner, or grantor owner.

Equipment Schedule: A document that describes in detail the equipment being leased or purchased. For a lease, it may also state the lease term, commencement date, repayment schedule and location of the equipment.

Exchange permit: A government permit sometimes required by the importer's government to enable the import firm to convert its own country's currency into foreigh currency .

Exchange rate: The price of one currency in terms of another.

Ex-works (EXW): Buyer bears all costs and assumes all risks for the consignment once it has left the seller's premises.

Expiry date: The date when a letter of credit is no longer valid - i.e. the date beyond which it cannot be used.

EX-IM: The US Export/Import bank.

Export Broker: An individual or firm that brings buyers and sellers together for a fee, but does not rake part in the actual sales transaction.

Export Management Company (EMC): A private firm that transacts export business on behalf of its client companies in return for a commission, salary, or retainer.

Export License: A general export license covers the exportation of goods not restricted under the terms of a validated export license. No formal application or written authorization is needed to ship exports under a general export license.

Export Subsidies: Any form of government payment that helps an exporter or manufacturing concern to lower its export costs.