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CHAPTER 8
Bonded warehouse:
Place owned by persons approved by an appropriate government
authority and who have given guarantees or bonds for the strict
observance of revenue and/or import control laws. Such warehouses
are used for the storage and custody of import merchandise, until
customs are satisfied that the goods have been imported with the
permission of the relevant government authority (e.g., are covered
by a proper import licence) and/or the duties are paid or the goods
are being reshipped without entry. In many developing countries
with strict import regulations in force security and supervision over
movements are provided by government. See also: Clearance of
goods and In bond.
Brand name:
A name or trade mark by which one producer distinguishes his
product from those of similar products by other producers in the
same industry. A brand name identifies both the product and the
producer of the product. See also: Brand name or Equal.
Brand name or equal:
A requisition by the user which indicates that his need will be
met by a particular (named) brand or products of other producers
which have the same physical, chemical, metallurgical and/or
other characteristics and will be able to satisfy the required need
as effectively and efficiently. In a tender the same phrase is used
to describe the product requirement precisely so that prospective
tenderers know their goods have to be similar in all respects to the
named brand product. This is done to increase competition so that
the producer of the particular brand does not exploit his monopoly
position. See also: Brand name.
Breach of contract:
A failure of the supplier or the buyer, without a legally defensible
excuse, to carry out his part of the duties and obligations as implied
by the terms and conditions of a contract. See also: Default.
Buffer stock:
A certain quantity of a material held in stock to meet any unforeseen
supply delays or disruptions of scheduled deliveries, increase in
prices and/or unexpected up-surge in demand.
Bulk buying:
The system of aggregating total requirements (generally of all
users) of a product or service for a single purchase order or a
series of orders for large quantities which would not have been
possible if demand was met on a fragmented basis. Bulk buying
is advantageous for getting favourable terms from tenderers as
well as in effecting other economies. See also Aggregation and
Economies of Scale.
Buy back:
Acounter-trade arrangement whereby a supplier of plant, equipment
and/or technology agrees to accept part or full payment for supplies,
in terms of the goods to be produced with the help of these facilities.
Also referred to as compensation trade.
GLOSSARY