LABOR INTENSIVE To the Top An activity in which labor costs are more important than capital costs. Deep-shaft coal mining and computer programming are labor intensive. LADING Freight or cargo LAGAN Goods cast into the sea attached to a buoy to mark the owner’s intent to retrieve them. See Jetsam, Jettison. LAISSEZ FAIRE A doctrine that government should refrain from any form of trade regulations, leaving productivity and distribution of wealth purely to market forces and individual industry. The doctrine lost momentum toward the end of the nineteenth century because of social abuses arising out of free market industrial society, as well as the mitigation of free market competition caused by the emergence of monopolies and similar trade restraints. LAKER A vessel that operates solely on the great lakes. LANDBRIDGE Landbridge movement involves containers moving from a foreign country by vessel, transiting the U.S. by railroad, and then being loaded aboard another vessel for delivery to a second foreign country. It is a water-rail-water operation. LANDBRIDGE (MINI) A mini-landbridge move is a combination of water and rail transport in which the container arrives at one U.S. coast and is transported to the other by railroad instead of the originating vessel transiting the Panama Canal. LANDED PRICE A price which includes the cost of the goods, transportation, and other costs incident to ultimate delivery to the location specified by the purchaser. LANDINGRIGHTSAIRPORT Any U.S. airport, other than in international airports, at which flights from a foreign area may be allowed to land. LANDLOCKED COUNTRY A country with no access to the sea. LARBOARD Being on or toward the left side of the ship as one faced the bow now called the port side. LASH-TYPE BARGES Unmanned non-self-propelled barges specifically designed for carriage aboard a vessel and regularly carried aboard a vessel in the foreign trade are referred to a lash-type barge, and may move under a simplified permit-to-proceed procedure. LAST CARRIER (AIR FREIGHT) The participating carrier over whose air routes last section of carriage under the AWB is undertaken or performed; or for the purposes of determining the responsibility for collecting charges collect and disbursements amounts, the carrier which delivers the consignment to the consignee whether or not that carrier has participated in the carriage. LATENT DEFECT A deficiency in goods offered for shipment that is not visible by diligent inspection. LATEST NEGOTIATION DATE The same as expiration date in reference to a letter of credit. The last day a beneficiary may present his documents for negotiations. LATIN AMERICA FREE TRADE ASSOCIATION (LAFTA) Replaced by the Latin America Integration Association. LATIN DOLLARS U.S dollars on deposit with banks in Latin American. LATITUDE The angular distance North or South of the earth’s equator measured along a meridian. LAYDAY The dates between which a chartered vessel is to be available in a port for loading of cargo. LAYTIME The amount of time that a charterer of a vessel is permitted to complete loading or unloading without incurring additional charges. LEAD MANAGER An international bank that organizes other banks into a syndicate for the purpose of funding a major financial project, often extending to hundreds of millions or even billions of dollars. LEAST DEVELOPED COUNTRIES (LDC’s) Some of the world’s poorest countries, considered by the United Nations to be the least developed of the less developed countries. Most of them are small in terms of area and population, and some are land-locked or small island countries. They are generally characterized by low per capita incomes, literacy level, and medical standards; subsistence agriculture; and a lack of exploitable minerals and competitive industries. These countries have little prospect of rapid economic development in the foreseeable future and are likely to remain heavily dependent upon official development assistance for many years. Most are in Africa, but a few, such as Bangladesh, Afghanistan, Laos, and Nepal, are in Asia. Haiti is the only country in the Western Hemisphere classified by the United Nations as “least developed.” LEGAL NOTES - Abbreviated LN or N. The message at the beginning of each section and chapter of the Custom Regulations of The United States that have legal weight (1) define limits of a heading or subheading and can also limit these, (2) provides list of goods excluded from the section, chapter heading or subheading, (3) provides list of goods included in a particular section, chapter heading or subheading. Legal notes have the same legal weight as headings or subheadings. They have international status. LEGAL TENDER A medium of exchange issued by a lawful authority that may be used to satisfy public and private obligations. LEGAL WEIGHT The weight of the goods plus any immediate wrappings which are sold along with the goods; e.g. the weight of a tin can as well as its contents. LEONTIEF PARADOX To the Top Derived from a study be Wassily Leontief of U.S. trade statistics, began in 1947 and spanning twenty-five years, which revealed that capital/labor ratios of U.S. exports were lower than those of imports during the same time span. This empirical knowledge contradicts conventional views that a nation exports products in which it enjoys a relative factor advantage. LESS THAN CONTAINER LOAD (L.C.L.) A container which is filled with consignments of cargo for more than one consignee or from more than one shipper. A container may be packed with LCL cargo at a container freight station for LCL delivery. LESS THAN FAIR VALUE An export sale price below that charged on like sales in the country of origin. Such sales are usually regarded as Dumping, which may result in the imposition by the importing country of additional duties on the product, or other retaliatory trade measures. LESS THAN TRUCKLOAD (L.T.L.) A shipment weighing less than the weight required for the application of the Truckload rate. LETTER CLASS MAIL All mail subject to U.S. Customs examination upon arrival in the U.S. with exceptions of: A. Official documents to U.S. Government Officials B. Mail to Ambassadors and Ministers of Foreign countries C. Letter Class mail (Mail believed to con tain only correspondence or documents to certain international organizations). Exams can be requested by an official of that organization in his presence, if desired. LETTER OF COMFORT A statement, issued by a bank or other commercial entity attesting to the stature, credit worthiness, or reputation of another. The writer of the letter will, however, expressly disclaim any responsibility for the obligations of the subject party. Letters of comfort are commonly issued by parents on behalf of subsidiaries and by banks for good clients, usually in conjunction with credit or capital raising transactions. LETTER OF CONDITIONAL REIMBURSEMENT A commitment in writing by the U.S. Department of Agriculture to a nation qualified to receive U.S. agricultural aid under Public Law 480, but with which a formal aid agreement has not been signed. The letter guarantees that the U.S. government will reimburse the importer for payments made, in its local currency, to American sellers, once the actual agreement is in place. The letter customarily limits the guarantee to the percentage of the purchase price specified in the financing agreement. LETTER OF CREDIT A letter of credit is a financial instrument which substitutes the payment obligation and credit worthiness of a more solvent party (usually but not necessarily a bank) for the payment obligation and credit worthiness of a less solvent party ( a buyer, debtor or obligee). Article 2 of UCP 400 describes a letter of credit as: any arrangement, however named or described, whereby a bank (the issuing bank), acting at the request and on the instructions of a customer (the applicant for the credit), i. is to make payment to or to the order of a third party (beneficiary), or is to pay or accept bills of exchange (drafts) drawn by the beneficiary, or ii. authorized another bank to effect such payment, or to pay, accept or negotiate such bills of exchange (drafts), against stipulated documents, provided that the terms and conditions of the credit are complied with. Various types of Letter of Credit are: A. COMMERCIAL LETTER OF CREDITS (1) CONFIRMED LETTER OF CREDIT A letter of credit which obligates the issuing bank and second bank, usually the seller’s country, to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. (2) IRREVOCABLE LETTER OF CREDIT A letter of credit which, once issued, can only be amended with express permission of all parties. It carries only the opening bank’s commitment to pay. (3) RED CLAUSE LETTER OF CREDIT A letter of credit that provides for temporary advances of payment in order to enable an importer’s representative abroad to pay for the merchandise being imported. (4) REVOCABLE LETTER OF CREDIT A revocable credit may be modi fied or cancelled at any time without notice to the beneficiary. However, payment or acceptance made by the negotiating bank within the terms of the credit prior to receipt of cancellation from the issuing bank validly bind all concerned parties. (5) REVOLVING CREDIT A letter from the issuing bank notifying a seller of merchandise that the amount involved when utilized will again become avail able, usually under the same terms and without the issuance of another letter. (6) TRANSFERABLE LETTER OF CREDIT A letter of credit addressed to the beneficiary permitting him to transfer all or part of the letter of credit to one or more parties (as indicated). (7) TRAVELER’S LETTER OF CREDIT A letter addressed by a bank to its correspondent banks authorizing them to honor drafts of the holder to the amount of credit. (8) UNCONFIRMED LETTER OF CREDIT A letter of credit notified to the beneficiary by the advising bank which bears no engagement for payment or acceptance by the advising bank. B. STANDBY LETTER OF CREDIT A letter in which the issuing bank under takes to make payment to a beneficiary if the account party fails to comply with the terms of an agreement. C. BACK TO BACK LETTER OF CREDIT Back to back credits are generally used when the seller needs funds to purchase merchandise from his supplier but does not qualify for an unsecured bank credit. A seller who has had a letter of credit opened in his favor asks the advising bank to open a second credit in favor of his supplier against assignment of proceeds from the first credit. The seller becomes the account party for the second credit and is obligated to reimburse the bank. LETTER OF CREDIT CLAUSE A clause in a marine cargo insurance policy designed to protect an exporter until such time as he is paid under a letter of credit. LETTER OF INDEMNITY A document issued in lieu of the bill of lading when the goods arrive prior to the documents. It is an undertaking by the bank to the carrier that should an original bill of lading be presented in the future, the bank will pay on demand to the carrier the full value of the shipment as indicated by the buyer, plus legal fees. Also termed Steamship Guarantee. LEVELING CHARGE A charge for leveling cargoes of sulphur in bulk, which is normally borne by the vessel owner. This charge is in addition to any normal loading fee. LIBEL A lawsuit in admiralty jurisdiction LIBELANT The complaintant in an admiralty suit, or libel; corresponds to a plaintiff. LIBERAL When referring to trade policy “liberal” usually means relatively free of import controls or restraints and/or a preference for reducing existing barriers to trade, often contrasted with the protectionist preference for retaining or raising selected barriers to imports. LICENSING A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product (or make use of the proprietary material) in return for specified royalties or other payment. LIFT-ON/LIFT-OFF A type of vessel that is loaded by lifting break-bulk or containerized cargo aboard by cranes or similar gear. LIFT VAN A wooden or metal container used for packing household goods and personal effects. Lift Van must be at lease 100 C.F.T. and be suitable for lifting by mechanical device. LIGHT CARGO Cargo that fully occupies the cubic capacity of a ship but does not bring the vessel down to its marks in the water. LIGHTER An open or covered barge and used mostly in harbors to transfer cargo from an oceangoing vessel to a wharf that could not accommodate the ship itself. LIGHTER ABOARD SHIP A marine cargo system incorporating a barge that is lifted aboard a specially constructed vessel by means of a crane. LIGHTERAGE (Itge) A charge imposed for the transfer of cargo from vessel to shore or shore to vessel by means of lighters. LIGHTERMAN Company performing lighter services. LIGHT GRAIN Grains, including barley, and oats, having a density of fifty-six to seventy cubic feet per ton. LIKE PERILS A provision of the perils clause of a marine policy wherein the covered perils are enumerated “Like perils” does not mean that all conceivable perils are covered; rather, it applies to perils that are of nature similar to those already specified in the policy. LIMITED COINAGE To the Top A government policy limiting the right of individuals to bring bullion to the mint and have it coined. LINEAR REDUCTION OF TARIFF Across-the-board percentage reduction in tariff rates. Early GATT rounds were conducted on this basis with provision made for specific “exceptions.” Exceptions were usually confined to products deemed so sensitive that increased imports might cause severe political or economic difficulties. LINE HAUL VESSEL A vessel which is on a regularly defined schedule covering the greatest portion of the ocean transportation. LINE OF CREDIT An agreement whereby a financial institution promises to lend up to a certain amount without the need to file another application. The borrower is expected to reduce the debt after having reached the full amount of credit. LINER The word “liner” is derived from the term “line traffic” which denotes operation along definite routes on the basis of definite, fixed schedules; a liner is a vessel that engages in this kind of transportation. LINER NEGLIGENCE CLAUSE A provision commonly incorporated into marine hull insurance policies that states that the insurer will pay for damage to the vessel when an accident has occurred without the necessity of identifying a specific peril, less “the cost of repairing, replacing, or renewing any part condemned solely as a result of a latent defect, wear and tear, gradual deterioration or fault of error in design or construction”. LINER SERVICE Sailings are regular and repeated from and to designated ports on a trade route, at intervals established in response to the quantity of cargo generated along that route. True liner service is distinguished by the repetition of voyages and the consistent advertising of such voyages. Once the service is established, the operator must conform, within narrow time limits, to the published schedule. Vessels engaged in liner service may be owned or chartered. Liners are common (public) carriers, required by law to accept without discrimination between offerers any legal cargo which the ship is able to transport. LINER TERMS A provision in some ship charter contracts in which the vessel pays loading or discharging costs, or both. LIQUIDATION Means the final computation or ascertainment of the duties accruing on entry. All entries covering imported merchandise, except temporary importation bond entries and those for transportation in bond or for immediate exportation, shall be liquidated. LIQUIDITY The quality of being convertible into monetary wealth; as relates to a given nation’s economic condition, liquidity consists of that country’s supply of gold, foreign exchange holdings, and SPECIAL DRAWING RIGHTS, and its line of available credit with the International Monetary Fund. LIQUIDITY RATIONING The regulation of a nation’s money supply by central banking authorities. A central bank is able to control the money supply and availability of funds to different sectors of the economy by freezing reserves, intervening in the money market, and similar devices. LIST The measure of a vessel’s tilt from the vertical plane, in degrees. LLOYD’S - LONDON A group of insurance underwriters considered the greatest concentration point of all marine insurance. LLOYD’S REGISTRY An organization maintained for the surveying and classifying of ships so that insurance underwriters and others interested may know the quality and condition of the vessels offered by insurance or employment. LOADCENTER A geographical point at which cargo from outlying points is routinely collected for onward carriage. The purpose of operating a loadcenter is to eliminate a call by a ship at port which does not, ofr itself, generate sufficient cargo. For example cargo moving from Portsmouth and Boston to Europe may be transported by barge to New York or Baltimore where it is loaded upon a Europe-bound vessel. LOADING A risk premium in addition to interest charges and acceptance fees deducted by a bank or discount house from the face value of a Bill of Exchange presented for discounting. This additional margin will vary, depending upon the quality of the drawee and endorsers on the bill and perhaps on the type of transaction that gave rise to the bill. LOAD LINE A marking painted on the bow of merchant vessel, denoting how much cargo may be loaded aboard, as determined by how low in the water the ship may ride. LOCAL CARRIER A motor carrier that operates wholly within a single or contiguous commercial zone but is still subject to Interstate Commerce Commission authority because of other motor carriage business. LOCAL COSTS Costs incurred in the country of the buyer for locally sourced goods and services necessary for performance of the export sales contract. These costs are not usually eligible for Export Credit Agency (ECA) finance or guarantee. LOMBARD LOANS Short-term loans in Britain and some European countries secured by bonds or corporate securities; the rate of such loans is slightly higher than the commercial loan rate. LOME CONVENTIONS A series of trade and economic assistance agreements between the European Economic Community and various developing nations, former colonies of EEC members. LONDON INTERBANK OFFERED RATE (LIBOR) Rate that the most creditworthy international banks dealing in Eurodollars charge each other for large loans; Eurodollar equivalent of the federal funds rate. The LIBOR rate is usually the base for other large Eurodollar loans to less creditworthy corporate and government borrowers. LONG AND SHORT HAUL CLAUSE A provision in Section 4 of the Interstate Commerce Act that a rail carrier may not charge more to haul a product a shorter distance than a longer distance over the same route under substantially the same conditions. LONG BILL A bill of exchange having a tenor of at least thirty days’ sight, although the term is customarily used in connection with bills having tenors of sixty to ninety days’ sight. LONG RATE The rate paid by a bank or foreign exchange broker for long bills of exchange (i.e. those having a tenor or more than thirty days) payable abroad. LONGITUDE To the Top Distance east or west on the earth’s surface, usually measured by the angle that the meridian through a particular place makes with the prime meridian that runs through Greenwich, England. LONGSHOREMAN A person employed in the loading and unloading of a vessel and the handling of cargo in and about the harbor area. The term longshoreman is often confused with stevedore, the latter is a firm contracted by the vessel to provide loading and unloading services, and employing longshoremen. LONG STERLING A bill of exchange drawn on London with tenor of more than thirty days’ sight. LONG TERM CAPITAL TRANSACTION A component in a nation’s balance of payment accounting, long-term capital transactions represent loans with a maturity of more than one year granted to or obtained from foreigners, including direct and portfolio investments. LORO ACCOUNT An account on bank’s ledger referring to sums due from or payable to a second bank on behalf of a third bank. This term is not common in American usage but is employed widely in foreign exchange transactions outside North America. L.t. or l.tn. Long ton (2240 lbs) LUMP SUM CHARTER To the Top A flat fee payable by charterer to a vessel owner, irrespective of whether the stipulated cargo, or any portion thereof, is actually shipped. | 
