Glossary

Main compensating product

The product which results from the processing of goods imported under inward processing relief (IPR). The main compensating product is the product which forms the basis of the IPR authorisation and which is to be exported.

Management buy out (MBO)

The purchase of a company by its existing managers, often with backing from a venture capitalist. The result is that managers acquire an equity interest or controlling stake in exchange for a relatively modest personal investment.

Management information system

A type of computer system used by managers to support the functions of planning, controlling and decision making by providing summaries and reports on the business' basic operations.

Manufacture

For the purposes of preference, this covers any processing, working, specific operations or assembly (except for certain minimal processes) carried out in the manufacture of the product in the European Union.

Marine insurance

Warehouse-to-warehouse insurance that covers exporters transporting goods overseas for losses they can't legally recover from the carrier under the limited liability of the carrier. Despite its name, it covers all transport modes.

Marking

Letters, numbers and other symbols placed on cargo to enable it to be identified more easily.

Master Air Waybill  (MAWB)

Refers to the bill of lading on a consolidated air shipment.

Material fact

Any fact that could influence an underwriter in their acceptance of the risk, or calculating the premium.

Megabyte  (MB)

Term used to represent 1,000,000 bytes worth of information or computer memory.

Member State

A member state of the European Union.

Memorandum of association

Statement of the name, purpose (objects), and liability of a company, signed by the first members as subscribers. For a limited company the type of limitation (shares or guarantee) and extent will also be stated. Other clauses can be placed in the memorandum if it is intended to make them permanent - articles are much easier to change. So the non-profit clause of a charity must be in the memorandum.

Metadata

A definition or description of data, in effect "data about data". Metadata is commonly used in content management systems and data warehouses, with tags or descriptors added to information to help with its subsequent retrieval.

Mezzanine finance

A term to describe finance which has the characteristics of both debt and equity. It carries a higher level of risk and the lender is usually given preference shares or loan stock that offer a higher rate of return.

Misdeclaration

Incorrect information on any declaration made to HM Revenue & Customs (HMRC).

Misrepresentation

Where one party to a contract makes a false statement on which the other party relies. The remedy of rescission, or putting things back to how they were before the contract began, is sometimes available to the misled party, but where it is not possible or too difficult the court can award damages instead.

Modem

Modulator/demodulator - a device that converts the digital signals from computers into analogue signals and vice versa, so they can be transmitted over phone lines.

Movement certificate

Required where goods are being exported from the European Union (EU) to a country covered by EU trade agreements. These certificates ensure preferential rates of duty on an exporter's goods.

Multilateral trading system  (MTS)

The processes through which large numbers of countries agree to trade with each other. The World Trade Organisation is part of this system.

Multimedia

Applications combining the use of more than one media, such as data, voice and video.

Multimodal operation

Transport operations where a container or trailer is conveyed by two or more means of transport during a single journey, eg by air and then by road.

Mutuality

A system where an organisation is owned by its members without outside shareholders.