URC 522

Uniform Rules for Collections No. 522 1995 Revision in force as of January 1, 1996
Leaflet Version, ICC No.522.

The ICC Uniform rules for collections were first published by the ICC in 1956. Revised versions were issued in 1967 and 1978. This present revision was adopted by the Council of the ICC in June 1995. It is issued with the title “ICC Uniform Rules for Collections” as ICC Publication No 522. This English language gives the official text of the 1995 Revision.

A GENERAL PROVISIONS AND DEFINITIONS

ARTICLE 1
Application of URC 522
a.The Uniform Rules for Collections, 1995 Revision, ICC Publication No 522, shall apply to all collections as defined in ARTICLE 2 where such rules are incorporated into the text of the ‘collection instruction' referred to in ARTICLE 4 and are binding on all parties thereto unless otherwise expressly agreed or contrary to the provisions of a national, state or local law and/or regulation which cannot be departed from.
b.Banks shall have no obligation to handle either a collection or any collection instruction or subsequent related instructions.
c.If a bank elects, for any reason, not to handle a collection or any related instructions received by it, it must advise the party from whom it received the collection or the instructions by telecommunication or, if that is not possible, by other expeditious means, without delay.

ARTICLE 2
Definition of Collection
For the purposes of these ARTICLEs :
a.‘Collection' means the handling by banks of documents as defined in Sub-ARTICLE 2 b.in accordance with instructions received , in order to :
1. obtain payment and/or acceptance or
2. deliver documents against payment and/or against acceptance. or
3. deliver documents on other terms and conditions.
b.‘Documents' means financial documents and/or commercial documents:
1. ‘Financial documents‘ means bills of exchange, promissory notes, cheques, or other similar instruments used for obtaining the payment of money.
2. ‘Commercial documents’ means invoices, transport documents, documents of title or other similar documents, or any other documents whatsoever, not being financial documents.
c.'Clean Collection‘ means collection of financial documents not accompanied by commercial documents
d.'Documentary collection‘ means collection of :
1. Financial documents accompanied by commercial documents.
2. Commercial documents not accompanied by financial documents.

ARTICLE 3
Parties to a Collection
a For the purposes of these ARTICLEs the ‘parties thereto‘ are :
1.the ‘principal’ who is the party entrusting the handling of a collection to a bank;
2.the ‘remitting bank’ which is the bank to which the principal has entrusted the handling of a collection;
3.the ‘collecting bank’ which is any bank, other than the remitting bank, involved in processing the collection;
4.the ‘presenting bank’ which is the collecting bank making presentation to the drawee.
b The ‘drawee’ is the one to whom presentation is to be made in accordance with the collection instruction.

B FORM AND STRUCTURE OF COLLECTIONS

ARTICLE 4
Collection Instruction
a 1. All documents sent for collection must be accompanied by a collection instruction indicating that the collection is subject to URC 522 and giving complete and precise instructions. Banks are only permitted to act upon the instructions given in such collection instruction, and in accordance with these Rules.
2. Banks will not examine documents in order to obtain instructions.
3. Unless otherwise authorised in the collection instruction, banks will disregard any instructions from any party/bank other than the party/bank from whom they received the collection.
b A collection instruction should contain the following items of information as appropriate.
1. Details of the bank from which the collection was received including full name, postal and SWIFT addresses, telex, facsimile numbers and reference.
2. Details of the principal including full name, postal address, and if applicable telex, telephone and facsimile numbers.
3. Details of the drawee including full name, postal address, or the domicile at which presentation is to be made and if applicable telex, telephone and facsimile numbers.
4. Details of the presenting bank, if any, including full name, postal address, and if applicable telex, telephone and facsimile numbers.
5. Amount(s) and currency(ies) to be collected
6. List of documents enclosed and the numerical count of each document.
7. a Terms and conditions upon which payment and or acceptance is to be obtained.
b Terms of delivery of documents against :
1) payment and/or acceptance
2) others terms and conditions
It is the responsibility of the party preparing the collection instruction to ensure that the terms for the delivery of documents are clearly and unambiguously stated, otherwise banks will not be responsible for any consequences arising there from.
8. Charges to be collected, indicating whether they may be waived or not.
9. Interest to be collected, if applicable, indicating whether it may be waived or not, including:
a. rate of interest
b. interest period
c. basis of calculation (for example 360 or 365 days in a year) as applicable
10. Method of payment and form of payment advice.
11. Instructions in case of non-payment, non-acceptance and/or non-compliance with other instructions.
c 1. Collection instructions should bear the complete address of the drawee or of the domicile at which the presentation is to be made. If the address is incomplete or incorrect, the collecting bank may, without any liability and responsibility on its part, endeavour to as certain the proper address.
2. The collecting bank will not be liable or responsible for any ensuing delay as a result of an incomplete/incorrect address being provided.


C FORM OF PRESENTATION

ARTICLE 5
Presentation
a For the purposes of these Articles, presentation is the procedure whereby the presenting bank makes the documents available to the drawee as instructed.
b The collection instruction should state the exact period of time within which any action is to be taken by the drawee.
Expressions such as ‘first’, ‘prompt’, ‘immediate’, and the like should not be used in connection with presentation or with reference to any period of time within which documents have to be taken up or for any other action that is to be taken by the drawee. If such terms are used banks will disregard them.
c Documents are to be presented to the drawee in the form in which they are received, except that banks are authorized to affix any necessary stamps, at the expense of the party from whom they received the collection unless otherwise instructed, and to make any necessary endorsements or place any rubber stamps or other identifying marks or symbols customary to or required for the collection operation.
d For the purpose of giving effect to the instructions of the principal, the remitting bank will utilise the bank nominated by the principal as the collecting bank. In the absence of such nomination, the remitting bank will utilize any bank of its own, or another bank’s choice in the country of payment or acceptance or in the country where other terms and conditions have to be complied with.
e The documents and collection instruction may be sent directly by the remitting bank to the collecting bank or through another bank as intermediary.
f If the remitting bank does not nominate a specific presenting bank, the collecting bank may utilise a presenting of its choice.

ARTICLE 6
Sight/Acceptance
In the case of documents payable at sight the presenting bank must make presentation for payment without delay. In the case of documents payable at a tenor other than sight the presenting bank must, where acceptance is called for, make presentation for acceptance without delay, and where payment is called for, make presentation for payment not later than the appropriate maturity date.

ARTICLE 7
Release of Commercial Documents
Documents Against Acceptance (D/A) vs. Documents Against Payment (D/P)
a Collections should not contain bills of exchange payable at a future date with instructions that commercial documents are to be delivered against payment.
b If a collection contains a bill of exchange payable at a future date, the collection instruction should state whether the commercial documents are to be released to the drawee against acceptance (D/A) or against payment (D/P)
In the absence of such statement commercial documents will be released only against payment and the collecting bank will not be responsible for any consequences arising out of any delay in the delivery of documents.
c If a collection contains a bill of exchange payable at a future date and the collection instruction indicates that commercial documents are to be released against payment, documents will be released only against such payment and the collecting bank will not be responsible for any consequences arising out of any delay in the delivery of documents.

ARTICLE 8
Creation of Documents
Where the remitting bank instructs either the collecting bank or the drawee is to create documents (bills of exchange, promissory notes, trust receipts, letters of undertaking or other documents) that were not included in the collection, the form and wording of such documents shall be provided by the remitting bank, otherwise the collecting bank shall be not be liable or responsible for the form and wording of any such documents provided by the collecting bank and/or the drawee.

D LIABILITIES AND RESPONSIBILITIES

ARTICLE 9
Good faith and Reasonable care
Banks will act in good faith and exercise reasonable care

ARTICLE 10
Documents vs. Goods/Services/Performances
a Goods should be despatched directly to the address of a bank or consigned to or to the order of a bank without prior agreement on the part of that bank.
Nevertheless, in the event that goods are despatched directly to the address of a bank or consigned to or to the order of a bank for release to a drawee against payment or acceptance or upon other terms and conditions without prior agreement on the part of that bank, such bank shall have no obligation to take delivery of the goods, which remain at the risk and responsibility of the party despatching the goods.
b Banks have no obligation to take any action in respect of the goods to which a documentary collection relates, including storage and insurance of the goods even when specific instructions are given to do so. Banks will only take such action if, when, and to the extent that they agree to do so in each case. Notwithstanding the provisions of Sub-ARTICLE 1 c this rule applies even in the absence of any specific advice to this effect by the collecting bank.
c Nevertheless, in the case that banks take action for the protection of the goods, whether instructed or not, they assume no liability or responsibility with regard to the fate and/or conditions of the goods and/or for any acts and/or omissions on the part of any third parties entrusted with the custody and/or protection of the goods. However, the collecting bank must advise without delay the bank from which the collection instruction was received of any such action taken.
d Any charges and/or expenses incurred by banks in connection with any action taken to protect the goods will be for the account of the party from whom they received the collection.
e 1. Notwithstanding the provisions of Sub-ARTICLE 10 a. where the goods are consigned to or to the order of the collecting bank and the drawee has honoured the collection by payment, acceptance or other terms and conditions and the collecting bank arranges for the release of the goods, remitting bank shall be deemed to have authorised the collecting bank to do so.
2. Where a collecting bank on the instructions of the remitting bank or in terms of Sub-ARTICLE 10 e (1.) above arranges for the release of the goods, the remitting bank shall indemnify such collecting bank for all damages and expenses incurred.

ARTICLE 11
Disclaimer For Acts of an Instructed Party
a Banks utilising the services of another bank or other banks for the purpose of giving effect to the instructions of the principal, do so for the account and at the risk of such principal.
b Banks assume no liability or responsibility should the instructions they transmit not be carried out, even if they have themselves taken the initiative in the choice of such other bank(s).
c A party instructing another party to perform services shall be bound by and liable to indemnify the instructed party against all obligations and responsibilities imposed by foreign laws and usages.

ARTICLE 12
Disclaimer on Documents Received
a Banks must determine that the documents received appear to be as listed in the collection instruction and must advise by telecommunication or, if that is not possible, by other expeditious means, without delay, the party from whom the collection instruction was received of any documents missing, or found to be other than listed.
Banks have no further obligation in this respect.
b If the documents do not appear to be listed, the remitting bank shall be precluded from disputing the type and number of documents received by the collecting bank.
c Subject to Sub-ARTICLE 5 c and Sub-ARTICLEs 12 a and 12 b above, banks will present documents as received without further examination.

ARTICLE 13
Disclaimer on Effectiveness of Documents
Banks assume no liability or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any documents(s), or for the general and/or particular conditions stipulated in the document(s) or superimposed thereon; nor do they assume any liability or responsibility for the description quantity; weight , quality, conditions, packing, delivery, value or existence of the goods represented by any document(s), or for the good faith or acts and/or omissions, solvency, performance or standing of the consignors, the carriers, the forwarders, the consignees or the insurers of the goods, or any other person whomsoever

ARTICLE 14
Disclaimer on Delays, Loss in Transit and Translation
a Banks assume no liability or responsibility for the consequences arising out of delay and/or loss in transit of any message(s), letter(s) or document(s), or for delay, mutilation or other error(s) arising in transmission of any telecommunication or for error(s) in translation and or interpretation of technical terms.
b Banks will not be aliable or responsible for any delays resulting from the need to obtain clarification of any instructions received.

ARTICLE 15
Force Majeure
Banks assume no liability or responsibility for consequences arising out of the interruption of their business by Acts of God, riots, civil commotions, insurrections, wars, or any other causes beyond their control or by strikes or lockouts.

E PAYMENT

ARTICLE 16
Payment Without Delay
a Amounts collected (less charges and/or disbursements and/or expenses where applicable) must be made available without delay to the party from whom the collection instruction was received in accordance with the terms and conditions of the collection instruction.
b Notwithstanding the provisions of Sub-ARTICLEs 1 c and unless otherwise agreed, the collecting bank will effect payment of the amount collected in favour of the remitting bank only.

ARTICLE 17
Payment in Local Currency
In the case of documents payable in the currency of the country of payment (local currency), the presenting bank must, unless otherwise instructed in the collection instruction release the documents to the drawee against payment in local currency only if such currency is immediately available for disposal in the manner specified in the collection instruction.

ARTICLE 18
Payment in Foreign Currency
In the case of documents payable in the currency other than that of the country of payment (foreign currency), the presenting bank must, unless otherwise instructed in the collection instruction, release the documents to the drawee against payment in the designated foreign currency only if such foreign currency can immediately be remitted in accordance with the instructions given in the collection instruction.

ARTICLE 19
Partial Payments
a In respect of clear collections, partial payments may be accepted if and to the extent to which and on the conditions on which partial payments are authorized by the law in force in the place of payment. The financial document(s) will be released to the drawee only when full payment thereof has been received.
b In respect of documentary collections, partial payments will only be accepted if specifically authorised in the collection instruction. However, unless otherwise instructed, the presenting bank will not be responsible for any consequences arising out of any delay in the delivery of the documents.
c In all cases partial payments will be accepted only subject to compliance with the provisions of either ARTICLE 17 or ARTICLE 18 as appropriate.
Partial payment, if accepted, will be dealt with in accordance with the provisions of ARTICLE 16.
F INTEREST CHARGES AND EXPENSES

ARTICLE 20
Interest
a If the collection instruction specifies that interest is to be collected and the drawee refuses to pay such interest, the presenting bank may deliver the document(s) against payment or acceptance or on other terms and conditions as the case may be, without collecting such interest, unless Sub-ARTICLE 20 c applies.
b Where such interest is to be collected, the collection instruction must specify the rate of interest, interest period and basis of calculation.
c Where the collection instruction expressly states that interest may not be waived and the drawee refuses to pay such interest the presenting bank will not deliver documents and will not be responsible for any consequences arising out of any delay in the delivery of document(s). When payment of interest has been refused, the presenting bank must inform by telecommunication or, if that is not possible, by other expeditious means without delay the bank from which the collection instruction was received.

ARTICLE 21
Charges and Expenses
a If the collection instruction specifies that collection charges and/or expenses are to be for account of the drawee and the drawee refuses to pay them, the presenting bank may deliver the document(s) against payment or acceptance or on other terms and conditions as the case may be, without collecting charges and/or expenses, unless Sub-ARTICLE 21 b applies.
Whenever collection charges and/or expense are so waived they will be for the account of the party from whom the collection was received and may be deducted from the proceeds.
b Where the collection instruction expressly states that charges and/or expenses may not be waived and the drawee refuses to pay such charges and/or expenses, the presenting bank will not deliver documents and will not be responsible for any consequences arising out of any delay in the delivery of the document(s). When payment of collection charges and/or expenses has been refused the presenting bank must inform by telecommunication or, if that is not possible, by other expeditious means without delay the bank from whom the collection instruction was received.
c In all cases where in the express terms of a collection instruction or under these Rules, disbursement and/or expenses and/or collection charges are to be borne by the principal, the collecting bank(s) shall be entitled to recover promptly outlays in respect of disbursements, expenses and charges from the bank from which the collection instruction was received, and the remitting bank shall be entitled to recover promptly from the principal any amount so paid out by it, together with its own disbursements, expenses and charges, regardless of the fate of the collection.
d Banks reserve the right to demand payment of charges and/or expenses in advance from the party from whom the collection instruction was received, to cover costs in attempting to carry out any instructions, and pending receipt of such payment, also reserve the right not to carry out such instructions.

G OTHER PROVISIONS

ARTICLE 22
Acceptance
The presenting bank is responsible for seeing that the form of the acceptance of a bill of exchange appears to be complete and correct, but is not responsible for the genuineness of any signature or for the authority of any signatory to sign the acceptance.


ARTICLE 23
Promissory Notes and Other Instruments
The presenting bank is not responsible for the genuineness of any signature or for the authority of any signatory to sign a promissory notes, receipt, or other instruments.


ARTICLE 24
Protest
The collection instruction should give specific instructions regarding protest (or other legal process in lieu thereof), in the event of non-payment or non- acceptance.
In the absence of such specific instructions, the banks concerned with the collection have no obligation to have the document(s) protested (or subject to other legal process in lieu thereof) for non-payment or non- acceptance.
Any charges and/or expenses incurred by banks in connection with such protest, or other legal process, will be for the account of the party from whom the collection instruction was received.

ARTICLE 25
Case-of-Need
If the principal nominates a representative to act as case-of-need in the event of non-payment and/or non-acceptance the collection instruction should clearly and fully indicate the powers of such case-of-need. In the absence of such indication banks will not accept any instructions from the case-of-need.

ARTICLE 26
Advises
Collecting banks are to advise fate in accordance with the following rules:
a Form of Advice
All advises or information from the collecting bank to the bank from which the collection instruction was received, must bear appropriate details including, in all cases, the latter bank’s reference as stated in the collection instruction.
b Method of Advice
It shall be the responsibility of the remitting bank to instruct the collecting bank regarding the method by which the advises detailed in c (1.), c (2.) and c (3.) are to be given. In the absence of such instructions, the collecting bank will send the relative advises by the method of its choice at the expense of the bank from which the collection instruction was received.
c 1. Advice of Payment
The collecting bank must send without delay advice of payment to the bank from which the collection instruction was received, detailing the amount or amounts collected, charges and/or disbursements and/or expenses deducted, where appropriate, and method of disposal of the funds.
2. Advice of Acceptance
The collecting bank must send without delay advice of acceptance to the bank from which the collection instruction was received.
3. Advice of Non-payment and/or Non-Acceptance
The presenting bank should endeavour to ascertain the reasons for non-payment and/or non-acceptance and advise accordingly, without delay, the bank from which it received the collection instruction.
The presenting bank must send without delay advice of non-payment and/or advice of non- acceptance to the bank from which it received the collection instruction.
On receipt of such advice the remitting bank must give appropriate instruction as to the further handling of the documents. If such instructions are not received by the presenting bank within 60 days after its advice of non-payment and/or non-acceptance, the documents may be returned to the bank from which the collection instruction was received without any further responsibility on the part of the presenting bank.
Posted by Mohan Babu.C at 3:40 AM

URR 725

Article 1-Application of URR
The Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits ("rules"), ICC Publication No. 725, shall apply to any bank-to-bank reimbursement when the text of the reimbursement authorization expressly indicates that it is subject to these rules. They are binding on all parties thereto, unless expressly modified or excluded by the reimbursement authorization. The issuing bank is responsible for indicating in the documentary credit ("credit") that reimbursement is subject to these rules.In a bank-to-bank reimbursement subject to these rules, the reimbursing bank acts on the instructions and under the authority of the issuing bank. These rules are not intended to override or change the provisions of the Uniform Customs and Practice for Documentary Credits.

Article 2-Definitions
For the purpose of these rules, the following terms shall have the meaning specified in this article and may be used in the singular or plural as appropriate:
a. "Issuing bank" means the bank that has issued a credit and the reimbursement authorization under that credit.
b. "Reimbursing bank" means the bank instructed or authorized to provide reimbursement pursuant to a reimbursement authorization issued by the issuing bank.
c. "Reimbursement authorization" means an instruction or authorization, independent of the credit, issued by an issuing bank to a reimbursing bank to reimburse a claiming bank or, if so requested by the issuing bank, to accept and pay a time draft drawn on the reimbursing bank.
d. "Reimbursement amendment" means an advice from the issuing bank to a reimbursing bank stating changes to a reimbursement authorization.
e. "Claiming bank" means a bank that honours or negotiates a credit and presents a reimbursement claim to the reimbursing bank. "Claiming bank" includes a bank authorized to present a reimbursement claim to the reimbursing bank on behalf of the bank that honours or negotiates.
f. "Reimbursement claim" means a request for reimbursement from the claiming bank to the reimbursing bank.
g. "Reimbursement undertaking" means a separate irrevocable undertaking of the reimbursing bank, issued upon the authorization or request of the issuing bank, to the claiming bank named in the reimbursement authorization, to honour that bank's reimbursement claim, provided the terms and conditions of the reimbursement undertaking have been complied with.
h. "Reimbursement undertaking amendment" means an advice from the reimbursing bank to the claiming bank named in the reimbursement authorization stating changes to a reimbursement undertaking.
i. For the purpose of these rules, branches of a bank in different countries are considered to be separate banks.

Article 3-Reimbursement Authorizations Versus Credits
A reimbursement authorization is separate from the credit to which it refers, and a reimbursing bank is not concerned with or bound by the terms and conditions of the credit, even if any reference whatsoever to it is included in the reimbursement authorization.

Article 4-Honour of a Reimbursement Claim
Except as provided by the terms of its reimbursement undertaking, a reimbursing bank is not obligated to honour a reimbursement claim.

Article 5-Responsibility of the Issuing Bank
The issuing bank is responsible for providing the information required in these rules in both the reimbursement authorization and the credit, and is responsible for any consequences resulting from non-compliance with this provision.

Article 6-Issuance and Receipt of a Reimbursement Authorization or Reimbursement Amendmenta.
a. All reimbursement authorizations and reimbursement amendments must be issued in the form of an authenticated teletransmission or a signed letter. When a credit or amendment thereto which has an effect on the reimbursement authorization is issued by teletransmission, the issuing bank should advise its reimbursement authorization or reimbursement amendment to the reimbursing bank by authenticated teletransmission. The teletransmission will be deemed the operative reimbursement authorization or reimbursement amendment, and any subsequent mail confirmation shall be disregarded.
b. An issuing bank must not send to a reimbursing bank:
i. a copy of the credit or any part thereof, or a copy of an amendment to the credit in place of or in addition to the reimbursement authorization or reimbursement amendment. If such copies are received by the reimbursing bank, they shall be disregarded.
ii. multiple reimbursement authorizations under one teletransmission or letter, unless expressly agreed to by the reimbursing bank.
c. An issuing bank shall not require a certificate of compliance with the terms and conditions of the credit in the reimbursement authorization.
d. A reimbursement authorization must (in addition to the requirement of article 1 for incorporation of reference to these rules) state the following:
i. credit number;
ii. currency and amount;
iii. additional amounts payable and tolerance, if any;
iv. claiming bank or, in the case of a freely available credit, that claims can be made by any bank. In the absence of any such indication, the reimbursing bank is authorized to pay any claiming bank;
v. parties responsible for charges (claiming bank's and reimbursing bank's charges) in accordance with article 16 of these rules. A reimbursement amendment must state only the relative changes to the above and the credit number.
e. If the reimbursing bank is requested to accept and pay a time draft, the reimbursement authorization must indicate the following, in addition to the information specified in (d) above:
i. tenor of draft to be drawn;
ii. drawer;
iii. party responsible for acceptance and discount charges, if any.A reimbursement amendment must state the relative changes to the above. An issuing bank should not require a sight draft to be drawn on the reimbursing bank.
f. Any requirement for:
i. pre-notification of a reimbursement claim to the issuing bank must be included in the credit and not in the reimbursement authorization.
ii. pre-debit notification to the issuing bank must be indicated in the credit.
g. If the reimbursing bank is not prepared to act for any reason whatsoever under the reimbursement authorization or reimbursement amendment, it must so inform the issuing bank without delay.
h. In addition to the provisions of articles 3 and 4, the reimbursing bank is not responsible for the consequences resulting from non-reimbursement or delay in reimbursement of reimbursement claims when any provision contained in this article is not followed by the issuing bank or claiming bank.

Article 7-Expiry of a Reimbursement Authorization
Except to the extent expressly agreed to by the reimbursing bank, the reimbursement authorization should not be subject to an expiry date or latest date for presentation of a claim, except as indicated in article 9. A reimbursing bank will assume no responsibility for the expiry date of a credit and, if such date is provided in the reimbursement authorization, it will be disregarded. The issuing bank must cancel its reimbursement authorization for any unutilized portion of the credit to which it refers, informing the reimbursing bank without delay.

Article 8-Amendment or Cancellation of a Reimbursement Authorization
Except where the issuing bank has authorized or requested the reimbursing bank to issue a reimbursement undertaking as provided in article 9, and the reimbursing bank has issued a reimbursement undertaking: a. the issuing bank may issue a reimbursement amendment or cancel a reimbursement authorization at any time upon sending notice to that effect to the reimbursing bank. b. the issuing bank must send notice of any amendment to a reimbursement authorization that has an effect on the reimbursement instructions contained in the credit to the nominated bank or, in the case of a freely available credit, the advising bank. In case of cancellation of the reimbursement authorization prior to expiry of the credit, the issuing bank must provide the nominated bank or the advising bank with new reimbursement instructions. c. the issuing bank must reimburse the reimbursing bank for any reimbursement claims honoured or draft accepted by the reimbursing bank prior to the receipt by it of a notice of cancellation or reimbursement amendment.

Article 9-Reimbursement Undertakinga.
a.In addition to the requirements of sub-articles 6 (a), (b) and (c) of these rules, a reimbursement authorization authorizing or requesting the issuance of a reimbursement undertaking must comply with the provisions of this article.
b. An authorization or request by the issuing bank to the reimbursing bank to issue a reimbursement undertaking is irrevocable ("irrevocable reimbursement authorization") and must (in addition to the requirement of article 1 for incorporation of reference to these rules) contain the following:
i. credit number;
ii. currency and amount;
iii. additional amounts payable and tolerance, if any;
iv. full name and address of the claiming bank to which the reimbursement undertaking should be issued;
v. latest date for presentation of a claim, including any usance period;
vi. parties responsible for charges (claiming bank's and reimbursing bank's charges and reimbursement undertaking fee) in accordance with article 16 of these rules.
c. If the reimbursing bank is requested to accept and pay a time draft, the irrevocable reimbursement authorization must also indicate the following, in addition to the information contained in (b) above:
i. tenor of draft to be drawn;
ii. drawer;
iii. drawee of draft, if other than the reimbursing bank;
iv. party responsible for acceptance and discount charges, if any. An issuing bank should not require a sight draft to be drawn on the reimbursing bank.
d. If the reimbursing bank is authorized or requested by the issuing bank to issue its reimbursement undertaking to the claiming bank but is not prepared to do so, it must so inform the issuing bank without delay.
e. A reimbursement undertaking must indicate the terms and conditions of the undertaking and: i. the credit number and name of the issuing bank;
ii. the currency and amount of the reimbursement authorization;
iii. additional amounts payable and tolerance, if any;
iv. the currency and amount of the reimbursement undertaking;
v. the latest date for presentation of a claim, including any usance period;
vi. the party to pay the reimbursement undertaking fee, if other than the issuing bank. The reimbursing bank must also include its charges, if any, that will be deducted from the amount claimed.
f. If the latest date for presentation of a claim falls on a day when the reimbursing bank is closed for reasons other than those referred to in article 15, the latest date for presentation of a claim will be extended to the first following banking day.
g. A reimbursing bank is irrevocably bound to honour a reimbursement claim as of the time it issues the reimbursement undertaking.
h. i. An irrevocable reimbursement authorization cannot be amended or cancelled without the agreement of the reimbursing bank.
ii. When an issuing bank has amended its irrevocable reimbursement authorization, a reimbursing bank that has issued its reimbursement undertaking may amend its undertaking to reflect such amendment. If a reimbursing bank chooses not to issue its reimbursement undertaking amendment, it must so inform the issuing bank without delay.
iii. An issuing bank that has issued its irrevocable reimbursement authorization amendment shall be irrevocably bound as of the time of its advice of the irrevocable reimbursement authorization amendment.
iv. The terms of the original irrevocable reimbursement authorization (or an authorization incorporating previously accepted irrevocable reimbursement authorization amendments) will remain in force for the reimbursing bank until it communicates its acceptance of the amendment to the issuing bank.
v. A reimbursing bank must communicate its acceptance or rejection of an irrevocable reimbursement authorization amendment to the issuing bank. A reimbursing bank is not required to accept or reject an irrevocable reimbursement authorization amendment until it has received acceptance or rejection from the claiming bank of its reimbursement undertaking amendment.
i. i. A reimbursement undertaking cannot be amended or cancelled without the agreement of the claiming bank.
ii. A reimbursing bank is irrevocably bound as of the time it issues the reimbursement undertaking amendment.
iii. The terms of the original reimbursement undertaking (or a reimbursement undertaking incorporating previously accepted reimbursement amendments) will remain in force for the claiming bank until it communicates its acceptance of the reimbursement undertaking amendment to the reimbursing bank.
iv. A claiming bank must communicate its acceptance or rejection of a reimbursement undertaking amendment to the reimbursing bank.

Article 11-Processing a Reimbursement Claim
a. i. A reimbursing bank shall have a maximum of three banking days following the day of receipt of the reimbursement claim to process the claim. A reimbursement claim received outside banking hours will be deemed to be received on the next following banking day. If a pre-debit notification is required by the issuing bank, this pre-debit notification period shall be in addition to the processing period mentioned above.
ii. If the reimbursing bank determines not to reimburse, either because of a non-conforming claim under a reimbursement undertaking or for any reason whatsoever under a reimbursement authorization, it shall give notice to that effect by telecommunication or, if that is not possible, by other expeditious means, no later than the close of the third banking day following the day of receipt of the claim (plus any additional period mentioned in sub-article (i) above). Such notice shall be sent to the claiming bank and the issuing bank and, in the case of a reimbursement undertaking, it must state the reasons for non-payment of the claim.
b. A reimbursing bank will not process a request for back value (value dating prior to the date of a reimbursement claim) from the claiming bank.
c. When a reimbursing bank has not issued a reimbursement undertaking and a reimbursement is due on a future date:
i. the reimbursement claim must specify the predetermined reimbursement date;
ii. the reimbursement claim should not be presented to the reimbursing bank more than ten banking days prior to such predetermined date. If a reimbursement claim is presented more than ten banking days prior to the predetermined date, the reimbursing bank may disregard the reimbursement claim. If the reimbursing bank disregards the reimbursement claim, it must so inform the claiming bank by teletransmission or other expeditious means without delay.
iii. If the predetermined reimbursement date is more than three banking days following the day of receipt of the reimbursement claim, the reimbursing bank has no obligation to provide notice of non-reimbursement until such predetermined date, or no later than the close of the third banking day following the receipt of the reimbursement claim plus any additional period mentioned in (a) (i) above, whichever is later.
d. Unless otherwise expressly agreed to by the reimbursing bank and the claiming bank, a reimbursing bank will effect reimbursement under a reimbursement claim only to the claiming bank.
e. A reimbursing bank assumes no liability or responsibility if it honours a reimbursement claim indicating that a payment, acceptance or negotiation was made under reserve or against an indemnity, and shall disregard such indication.

Article 12-Duplication of a Reimbursement Authorization
An issuing bank must not, upon receipt of documents, give a new reimbursement authorization or additional instructions unless they constitute an amendment to, or a cancellation of, an existing reimbursement authorization. If the issuing bank does not comply with the above and a duplicate reimbursement is made, it is the responsibility of the issuing bank to obtain the return of the amount of the duplicate reimbursement. The reimbursing bank assumes no liability or responsibility for any consequences that may arise from any such duplication.

Article 13-Foreign Laws and Usages
The issuing bank shall be bound by and liable to indemnify the reimbursing bank against all obligations and responsibilities imposed by foreign laws and usages.

Article 14-Disclaimer on the Transmission of Messages
A reimbursing bank assumes no liability or responsibility for the consequences arising out of delay, loss in transit, mutilation or other errors arising in the transmission of any messages, delivery of letters or documents, when such messages, letters or documents are transmitted or sent according to the requirements stated in the credit, reimbursement authorization or reimbursement claim, or when the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in the credit, reimbursement authorization or reimbursement claim. A reimbursing bank assumes no liability or responsibility for errors in translation or interpretation of technical terms.

Article 15-Force Majeure
A reimbursing bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism or by any strikes or lockouts or any other causes beyond its control.

Article 16-Charges
a. A reimbursing bank's charges are for the account of the issuing bank.
b. When honouring a reimbursement claim, a reimbursing bank is obligated to follow the instructions regarding any charges contained in the reimbursement authorization.
c. If a reimbursement authorization states that the reimbursing bank's charges are for the account of the beneficiary, they shall be deducted from the amount due to a claiming bank when reimbursement is made. When a reimbursing bank follows the instructions of the issuing bank regarding charges (including commissions, fees, costs or expenses) and these charges are not paid, or a reimbursement claim is never presented to the reimbursing bank under the reimbursement authorization, the issuing bank remains liable for such charges.
d. All charges paid by the reimbursing bank will be in addition to the amount of the authorization, provided that the claiming bank indicates the amount of such charges.
e. If the issuing bank fails to provide the reimbursing bank with instructions regarding charges, all charges shall be for the account of the issuing bank.

Article 17-Interest Claims/Loss of Value
Any claim for loss of interest, loss of value due to any exchange rate fluctuations, revaluations or devaluations are between the claiming bank and the issuing bank, unless such losses result from the non-performance of the reimbursing bank under a reimbursement undertaking.

TRADE DOCUMENTS

In an international trade transaction, various documents need to be produced. Although the form and type of documentation differs from transaction to transaction, all the documents evidence various aspects of the trade transaction (e.g. description, quality, quantity and amount of goods, transportation, insurance, inspection and so on).

Importers and exporters need to ensure that the documentation supporting their international trade transactions is correct. Mistakes can be costly.

In the case of documentary credits, banks perform a crucial role in the transaction as they inspect the documents extremely carefully to ensure that they comply with the credit terms. The bank is not in a position to determine whether an irregularity in the documents is important or irrelevant. Neither is the bank in a position to decide on matters which only an expert in that field can correctly evaluate. In the case of documentary credits, the bank only has to examine the documents to ensure that they conform to the terms and conditions of the Credit.

Verification of the documents generally includes checking the following points:

Completeness
Conformity with all the terms and conditions of the Credit
Consistency of the documents with each other
Compliance with the International Chamber of Commerce (ICC) Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500 (UCP 600) and subsequent revisions Trade documents:

*Air transport documents
*Bill of exchange
*Bill of lading
*Certified invoice
*Certificate of analysis
*Certificate of origin
*Commercial invoice
*Consular invoice
*Courier receipt
*Charter party bill of lading
*Insurance document
*Legalized invoice
*Multimodal transport document
*Non-negotiable sea waybill
*Post receipts
*Packing list
*Road / Rail transport documents
*Third party inspection certificate
*Weight certificate

Air transport documents
Air transport documents or air waybills are consignment notes issued for goods transported by air. These documents confirm that the goods have been received for shipment and give details of the contract terms. Air transport documents and air waybills do not give title to the goods. The goods are delivered to the named consignee once customs clearance has been obtained. They are normally issued in a set of 12. Three originals are produced:

For the issuing carrier
For the consignee
For the shipper of the goods
The remainder copies are for airline purposes.


Bill of Exchange
A bill of exchange, also commonly known as a draft, is an unconditional order in writing. The bill of exchange is signed by the person giving it, requiring the person to whom it is addressed to pay (on demand or on a fixed and determinable due date) a sum certain in money to a specified person or his order, or to bearer. The person drawing up the bill is called the "drawer", and the instrument is addressed to the "drawee" (the person who needs to pay the amount stipulated). It is important to remember that the drawee needs to accept the bill, and this acceptance constitutes acknowledgement of debt and makes the bill of exchange a legal instrument.

The following aspects must be checked :( Numbers correspond with specimen above)
Does the bill, if made to the order of the exporter, carry an endorsement?
Does the bill contain all the required clauses?
Is the bill drawn as stipulated, i.e. on the correct drawee? The "drawee" is the party who will be making the payment, usually the importer. The drawee needs to sign acceptance of the draft (bill) undertaking to pay it as stipulated.
Does the amount in words agree with the amount in figures?
Is the tenor of the bill payable as specified at sight or at a given term after sight or date, e.g. 30 days after bill of lading date?
The bill must be drawn by the drawer. The "drawer" is the party who makes out the bill, and is usually the exporter.
Does the amount of the bill of exchange correspond with that of the invoice?

Bill of Lading
Who is this intended for?
A bill of lading is a receipt from a shipping company for goods shipped for transport from one destination to another. It is signed by or on behalf of the master of the carrying vessel, or by the carrier or a named agent, for or on behalf of the master or carrier, and sets out the terms and conditions under which the goods are to be carried.

A bill of lading is negotiable to the extent that the title to the merchandise that it represents is transferred by endorsement and delivery of the bills of lading. It is issued in sets of two, three or more, and release of the goods at destination is usually subject to the production of one original, duly endorsed. The number in the set will be indicated on each bill of lading and all must be accounted for. This ensures that one of the set does not come into the hands of an unauthorised person who would be able to claim the goods at the destination.

The following aspects must be checked:
(Numbers correspond with specimen below)

1.The shipment must be consigned to the correct party. 2.
2.It must stipulate that the goods have been shipped on board an expressly named vessel.
3.The port of loading and port of discharge must be correct.
4.The shipping marks and numbers must agree with the marks and numbers on the other documents.
5.The description and quantity of goods must be consistent with that on the other documents.
6.It must indicate all reference and license numbers as called for.
7.The bill of lading must indicate that the goods have been loaded on board. The "On Board" notation may be indicated by pre-printed wording on the bill of lading. If not pre-printed, the "On Board" notation must also stipulate the date on which the goods have been loaded on board.
8.Payment of freight notations "Freight Prepaid" or "Freight Collect" must conform to the terms of delivery (Incoterms).
9.The date of the bill of lading or the "On Board" date must be within the specified "latest shipment date" if payment is via documentary credit.
10.If payment is via documentary credit, the full set of original must be presented if so stipulated in the Credit.
11.The bill of lading must be issued by a specifically named carrier, signed or authenticated by the carrier, the master or named agent for and on behalf of the carrier or the master.


Other points for consideration are:
The transport document must be "clean", that is without any qualifying remarks concerning the condition or packaging of the goods.
The transport document should not be subject to a charter party or stipulate loading on deck, unless otherwise authorised.
If payment is via documentary credit, and the bill of lading indicates a place of receipt different to the port of loading, then the "On Board" notation must include both the name of the vessel and port of loading mentioned in the Credit.
If the bill of lading is made out to order, it must be blank endorsed.
The contents of the bill of lading must be consistent with all other stipulated documents presented.


Certified Invoice
Certified invoices are issued by the exporter or his/her agent who is responsible for certifying any statement required by the importer from the exporter. All certified invoices must be signed. A third party is sometimes expected to witness the signature.


Certificate of Analysis
Certificates of analysis are used to give a statement of the chemical composition of goods. They are normally signed by a Public Analyst or Sworn Assayer.

Certificate of Origin
The certificate of origin, known as an official document, is a signed statement providing evidence of the origin of the goods. It is often required by the customs authority of the importing country for the purpose of assessing import duty. Generally the certificate has to be issued by a Chamber of Commerce and must contain details of the goods and the signature and seal of the chamber.

The following aspects must be checked:

(Numbers correspond with specimen below)

1.If payment is by documentary credit, has the Certificate been attested/authenticated and/or issued by the party specified in the Credit?
2.The consignee must not be inconsistent with the consignee stated in the transport document. If the transport document is issued "to order and blank endorsed", "to the order of" or "consigned to" the issuing bank, the certificate may show the importer as the consignee.
3.The consignor/exporter shown in the certificate must be either the shipper stated in the transport document or the beneficiary of the Credit, if applicable.
4.The origin of the goods as stated in the certificate of origin must agree with the contract terms.
5.Has the certificate been signed and dated?
6.The contents must be consistent with all other stipulated documents presented.


Consular Invoice
Consular invoices are required in certain countries before goods can be released from customs. These invoices are issued for this purpose only and are obtained from embassies and consulates of the importer's country by the exporter. The consulate or embassy will stamp the invoices after completion and they levy a charge for doing so.

Consular invoices provide the importing country with a means of:

*Checking prices of goods
*Determining the origin of goods
*Calculating import duties
*Checking over- and under invoicing

Courier Receipts
Courier receipts give proof that goods have been received and shipped whether by land or by air. They are also not negotiable documents and are made out to a specific consignee and cannot be made "to order". The consignee does not need to present the courier receipt in order to obtain his goods.

Charter Party Bills of Lading
Charter party is an arrangement between the owner of a vessel and a merchant (trader). The charterer (owner of the vessel) hires the vessel to the merchant who uses it to transport goods. The form of the agreement may differ depending on the type of goods being shipped. Charter party bills of lading are subject to the charter party's (ships owner's) terms and conditions and the goods are subject to the shipowner's lien for freight and all other charges.

Note: Lien for freight and all other charges is the shipowner's right to keep possession of the goods until payment for the charter is received.

These bills of lading may be subject to other restrictive conditions beside those already mentioned and for this reason one should take care when dealing with these. Charter party bills of lading are not acceptable in a drawing under a Credit, unless specifically authorised in the Credit.

Health, veterinary and sanitary certificates
These certificates are used where livestock, hide, foodstuffs, agricultural goods or some packing materials are exported. They are signed by the health authorities of the exporting country and certify that the goods are free of disease, e.g. mad cow disease.


Insurance document
The terms of the contract will dictate what insurance is required, and may be covered by an insurance policy or insurance certificate. An insurance policy may only be issued by the insurer and is usually in standard form covering the standard rules for any voyage.

Regular exporters normally arrange an open contract to cover all exports during a specific period - this provides insurance cover at all times within the agreed terms and conditions of the contract and avoids having to obtain separate cover and a new policy for each shipment. It contains similar details to that of a policy, the difference being a shorter version of the provisions of the policy under which it is issued.

The following aspects must be checked:
(Numbers correspond with specimen below)

1.The insurance document must be issued and signed by an insurance company or underwriters or their agents.
2.The insurance document must be of the right type, i.e. Insurance Policy, Insurance Certificate or Declaration of Insurance. In the case of documentary credits, brokers' cover notes are not acceptable unless expressly permitted in the Credit.
3.The document must not be dated later than the date of dispatch. If it is dated later than the date of dispatch, the document must expressly state that insurance cover is effective from the date of dispatch or the date of loading or taking in charge.
4.The description of goods, the marks, the transport route and the name of the vessel must agree with the details given in the transport document.
5.In the case of documentary credits, the document must be issued in the same currency as the Credit and for the specified amount, or at least for the CIF or CIP value of the goods plus 10%. If the CIF/CIP value cannot be determined, insurance must be taken out for a minimum of 110% of the amount for which payment, acceptance or negotiation is requested under the Credit or the gross amount of the invoice, whichever is the higher.
6.The specific risks must be covered.


Legalized invoices
These invoices are authorized by the consulate representing the importer's country or the local Chamber of Commerce in the exporter's country. The purpose of this invoice is to give the importing country an official record of the transaction.


Multimodal transport documents
Multimodal transport documents are issued by a multimodal transport operator, the carrier, the master or their agents. They are used for goods shipped in containers on one contract of carriage from a "place of taking in charge" to a "place of delivery".

The party who issues the document takes full responsibility for the whole transport being correctly completed and for loss or damage to the goods wherever occurring from the time he/she received the container until the container is delivered.


Non-negotiable sea waybills
Processing of bills of lading is quite time consuming and can result in the consignee receiving them only after the goods have arrived at the port of destination. The non-negotiable sea waybill prevents this delay as (similar to air waybills) the goods can be delivered to the consignee without handing over the waybill.


Post receipts
These receipts are simple evidence that the goods have been received by the post office in the exporter's country and do not give title to the goods, i.e. they are not negotiable. They may indicate that postage has been paid and the way in which the goods have been sent, i.e. by registered or ordinary post.


Packing list
The packing list provides details of how the goods have been packed for transportation. It gives a complete breakdown of quantity and description of goods packed in each container or package.

The following aspects must be checked:

(Numbers correspond with specimen below)

1.The packing list contains documentary credit reference number (if applicable).
2.The weight must be consistent with the weight indicated on the bill of lading and other documents.
3.The marks must be consistent with those on the bill of lading.
4.The number of packages must be consistent with those on the bill of lading.
5.The packing list must contain the necessary details, such as total number of units, number in each package, container breakdown, etc.
6.The document must cover the goods invoiced.
7.The document must be headed "packing list" and must be issued by the specified party.


Road / Rail transport documents
Road / Rail transport consignment notes are very similar to air waybills in that they are also non-negotiable documents confirming receipt of goods for shipment and detailing the terms of the contract. These documents are issued by the road or rail company providing the service.


Third Party Inspection Certificates
These certificates are issued by recognised independent third parties declaring the result of an examination of the goods exported. The importer may call for such an examination of the goods before shipment to protect him/her from paying for sub-standard goods.


Weight certificates
Weight certificates give details of the gross or nett weights of goods. These documents are used for goods which are not packed in boxes or containers, e.g. wheat, grain, corn, etc. These are important where loss of weight may occur through evaporation or some other factors. A weight certificate may be issued by the exporter or a public weigher, or an independent weigher for a fee.


Other points for consideration are:

1.If the goods have been loaded "on deck" the insurance must cover "on deck" risks.
2.If the insurance document is made out to order, ensure that it is blank endorsed.
3.If insurance document is made out to the beneficiary or the shipper, ensure that 4itis blank endorsed or endorsed to the applicant.
4.The contents of the insurance document must be consistent with all other documents presented.

INCOTERMS

Incoterms or international commercial terms are a series of international sales terms widely used throughout the world. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods.

FOUR CLASSIFICATIONS
• 1 Group E – Departure
• 2 Group F – Main carriage unpaid
• 3 Group C – Main carriage paid
• 4 Group D – Arrival

Group E – Departure

EXW – Ex Works (named place)
The seller makes the goods available at his premises. the buyer is responsible for all charges

Group F – Main carriage unpaid

FCA – Free Carrier (named place)
The seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.

FAS – Free Alongside Ship (named loading port)
The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for maritime transport only.

FOB – Free On Board (named loading port)
The classic maritime trade term, Free On Board: seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export. Maritime transport only.


Group C – Main carriage paid

CFR – Cost and Freight (named destination port)
Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.

CIF – Cost, Insurance and Freight (named destination port)
Exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.

CPT – Carriage Paid To (named place of destination)
The general/containerised/multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.

CIP – Carriage and Insurance Paid to (named place of destination) The containerised transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.

Group D – Arrival

DAF – Delivered At Frontier (named place) It can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.

DES – Delivered Ex Ship (named port)
Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc… are for the Buyer. A commonly used term in shipping bulk commodities, such as coal, grain, dry chemicals - - - and where the seller either owns or has chartered, their own vessel.

DEQ – Delivered Ex Quay (named port)
It means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.

DDU – Delivered Duty Unpaid (named destination place)
It means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bear cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale.

DDP – Delivered Duty Paid (named destination place) It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty. Also used interchangeably with the term "Free Domicile"

Summary of termsFor a given term, "Yes" indicates that the seller has the responsibility to provide the service included in the price. "No" indicates it is the buyer's responsibility. If insurance is not included in the term (for example, CFR) then insurance for transport is the responsibility of the buyer or the seller depending on who owns the cargo at time of transport. In the case of CFR terms, it would be the buyer while in the case of DDU or DDP terms, it would be the seller.

TRADE Glossary

Trade Glossary

Abandonment

The act of relinquishing claim or right to property


About

"About", "Approx.", and "Circa" are terms which when used in a letter of credit, are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price stipulated in the letter of credit.

Absolute Advantage

An advantage of one nation or area over another in the costs of producing an item in terms of used resources.

Absorption

1. An economic term for the total expenditures by a nation's residents on goods and services.
2. The assumption by one carrier of the charges of another without any increase in the charges to the shipper.

Accelerated Tariff Elimination

The reduction of import duties faster than originally had been agreed upon or projected.

Acceptance

1. A draft calling for payment at a future date which the drawee has agreed to pay by signing "Accepted" on the draft.
2. An unconditional assent to an offer; or an assent to an offer conditioned on only minor changes that do not affect any material terms of the offer;
3. An agreement to purchase goods on specified terms.
4. Receipt of a shipment by a consignee thus terminating the liability of the carrier for delivery.

Acceptance Letter Of Credit
A letter of credit which instead of agreeing to pay the beneficiary immediately upon presentation of documents, requires presentation of a time draft drawn by the beneficiary upon the issuing bank or another bank. However, the beneficiary may, in effect, obtain prompt payment by discounting the draft.

Accepted Draft
A draft or a bill of exchange accepted by the drawee (acceptor) by putting his signature and "accepted' on its face. In doing so, he commits himself to pay the bill upon presentation at maturity.

Accepting Bank
A bank which by signing 'accepted' on a time draft accepts responsibility to pay when the draft becomes due.

Acceptor

The party that signs 'accepted' on a draft or obligation, agreeing to pay the stated sum at maturity.

Accession

Accession is a process by which a country becomes a member of an international agreement (usually an agreement that has already been accepted by other countries).

Accessorial Charges

In transportation, those charges made for additional, supplemental, or special services performed in addition to the basic transportation service.

Accessorial Services

`In transportation, services performed which are additional, supplemental, or special, in addition to the basic transportation service.

Accommodation
An arrangement or engagement made as a favor to another, not dependent upon a consideration received.

Accommodation Note Or Paper
A bill of exchange or banker's acceptance which is endorsed, accepted, or drawn by one party (the accommodating party) to benefit another party. The accommodating party generally does not charge or seek compensation for this act.

Accord And Satisfaction
A means of discharging a claim whereby the parties agree to give and accept something in settlement and perform the agreement, the agreement being the "accord" and its performance "the satisfaction."

Account Number
An identification number assigned in its records for purposes of faster and more accurate accounting and record keeping, by banks, institutions, and businesses of all kind to their depositors, users, members, subscribers, customers, vendors, or other entities.

Account Party

Same as Applicant, the party at whose request a bank issues a letter of credit.

Accounts Payable

A current liability representing the amounts owed to creditors for merchandise or services purchased on open account or short-term credit.

Accounts Receivable

The amount of money a business expects to receive for merchandise or services furnished by it to others on open account.

Accrual Of Obligation

The maturing of an obligation to the date when the obligated party must perform. (Such as a time draft which must be paid by the drawee on the date stated.)

Acquisition

The act of becoming owner of a property. In finance, it is the purchase of a company's assets or its common stock.

Act Of God

A violent act of nature such as lightning, flood, earthquake or hurricane which man can neither cause nor intervene with.

Action Ex Contractu

1. A legal action for breach of a promise stated in an express or implied contract.
2. An action arising out of a contract.

Action Ex Delicto

1. A legal action for a breach of a duty that is not stated in a contract but arises from the contract.
2. A legal action that arises from a wrongful act, such as fraud, fault, misconduct or malfeasance.

Ad Valorem Duty

Duty calculated on the basis of value (usually a percentage of the value.)

Address Of Record

The official or primary location for an individual, company, or other organization.

Adhesion Contract

A contract with standard, often printed, terms for sale of goods and services, offered to consumers who usually cannot negotiate any changes in the terms and cannot acquire the product unless they agree to them.

Adjustment Assistance

Financial, training and re-employment technical assistance to workers, and technical assistance to firms and industries, to help them cope with adjustment difficulties arising from increased import competition.

Admiralty

Any civil or criminal matter having to do with maritime legal issues.

Admiralty Court

A court of law that has jurisdiction over maritime legal issues.

Advance Against Collection

A short term loan or credit extended to a seller (usually the exporter) by the seller's bank once a draft has been accepted by the buyer (generally the importer).

Trade Glossary

A



Abandonment

The act of relinquishing claim or right to property

About

"About", "Approx.", and "Circa" are terms which when used in a letter of credit, are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price stipulated in the letter of credit.

Absolute Advantage
An advantage of one nation or area over another in the costs of producing an item in terms of used resources.

Absorption

1. An economic term for the total expenditures by a nation's residents on goods and services.
2. The assumption by one carrier of the charges of another without any increase in the charges to the shipper.

Accelerated Tariff Elimination
The reduction of import duties faster than originally had been agreed upon or projected.

Acceptance
1. A draft calling for payment at a future date which the drawee has agreed to pay by signing "Accepted" on the draft.
2. An unconditional assent to an offer; or an assent to an offer conditioned on only minor changes that do not affect any material terms of the offer;
3. An agreement to purchase goods on specified terms.
4. Receipt of a shipment by a consignee thus terminating the liability of the carrier for delivery.

Acceptance Letter Of Credit
A letter of credit which instead of agreeing to pay the beneficiary immediately upon presentation of documents, requires presentation of a time draft drawn by the beneficiary upon the issuing bank or another bank. However, the beneficiary may, in effect, obtain prompt payment by discounting the draft.

Accepted Draft
A draft or a bill of exchange accepted by the drawee (acceptor) by putting his signature and "accepted' on its face. In doing so, he commits himself to pay the bill upon presentation at maturity.

Accepting Bank
A bank which by signing 'accepted' on a time draft accepts responsibility to pay when the draft becomes due.

Acceptor

The party that signs 'accepted' on a draft or obligation, agreeing to pay the stated sum at maturity.

Accession

Accession is a process by which a country becomes a member of an international agreement (usually an agreement that has already been accepted by other countries).

Accessorial Charges
In transportation, those charges made for additional, supplemental, or special services performed in addition to the basic transportation service.

Accessorial Services
`In transportation, services performed which are additional, supplemental, or special, in addition to the basic transportation service.

Accommodation

An arrangement or engagement made as a favor to another, not dependent upon a consideration received.

Accommodation Note Or Paper
A bill of exchange or banker's acceptance which is endorsed, accepted, or drawn by one party (the accommodating party) to benefit another party. The accommodating party generally does not charge or seek compensation for this act.

Accord And Satisfaction
A means of discharging a claim whereby the parties agree to give and accept something in settlement and perform the agreement, the agreement being the "accord" and its performance "the satisfaction."

Account Number
An identification number assigned in its records for purposes of faster and more accurate accounting and record keeping, by banks, institutions, and businesses of all kind to their depositors, users, members, subscribers, customers, vendors, or other entities.

Account Party
Same as Applicant, the party at whose request a bank issues a letter of credit.

Accounts Payable
A current liability representing the amounts owed to creditors for merchandise or services purchased on open account or short-term credit.

Accounts Receivable
The amount of money a business expects to receive for merchandise or services furnished by it to others on open account.

Accrual Of Obligation
The maturing of an obligation to the date when the obligated party must perform. (Such as a time draft which must be paid by the drawee on the date stated.)

Acquisition

The act of becoming owner of a property. In finance, it is the purchase of a company's assets or its common stock.

Act Of God
A violent act of nature such as lightning, flood, earthquake or hurricane which man can neither cause nor intervene with.

Action Ex Contractu
1. A legal action for breach of a promise stated in an express or implied contract.
2. An action arising out of a contract.

Action Ex Delicto
1. A legal action for a breach of a duty that is not stated in a contract but arises from the contract.
2. A legal action that arises from a wrongful act, such as fraud, fault, misconduct or malfeasance.

Ad Valorem Duty
Duty calculated on the basis of value (usually a percentage of the value.)

Address Of Record
The official or primary location for an individual, company, or other organization.

Adhesion Contract
A contract with standard, often printed, terms for sale of goods and services, offered to consumers who usually cannot negotiate any changes in the terms and cannot acquire the product unless they agree to them.

Adjustment Assistance
Financial, training and re-employment technical assistance to workers, and technical assistance to firms and industries, to help them cope with adjustment difficulties arising from increased import competition.

Admiralty

Any civil or criminal matter having to do with maritime legal issues.

Admiralty Court

A court of law that has jurisdiction over maritime legal issues.

Advance Against Collection
A short term loan or credit extended to a seller (usually the exporter) by the seller's bank once a draft has been accepted by the buyer (generally the importer).

Advance Arrangements
In transportation, advance arrangements must be made for certain kinds of cargo which require special handling: hazardous cargo, over weight, over sized, over normal quantity, time sensitive, shipped unpacked, live animals etc. Not every carrier can or will transport every kind of cargo.

Advanced Technology Products (ATP)
Products whose technology is from a recognized high technology field, represent leading edge technology in that field, and constitute a significant part of all items covered in the selected classification code.

Advice
1. A report from one party to another informing them of an occurrence with regard to some business transaction: a shipment, a collection, a manufacture etc.etc.
2. A notification by an advising bank on behalf of the issuing bank to a beneficiary informing them of the terms of a letter of credit,

Advised Credit
A letter of credit whose terms and conditions have been notified to the beneficiary by an advising bank on behalf of the issuing bank. The advising bank does not thereby commit itself to pay or guarantee the payment of the letter of credit.

Advising Bank
An 'advising bank' is a correspondent of a bank which issues a letter of credit, and, on behalf of the issuing bank, the advising bank notifies the beneficiary of the terms of the credit, without engagement on its part to pay or guarantee the credit.

Advisory Committee On Export Policy
A U.S. government interagency dispute resolution body that operates at the Assistant Secretary level.

Advisory Committee On Trade Policy And Negotiation
A U.S. government group appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements.

Affiliate
A condition of being united, allied, associated, or attached. An affiliate company is one effectively controlled by another.

Affreightment Contract

A contract with a ship owner to hire all or part of a ship for transporting goods - may involve a charter.

Afloat

Refers to a shipment of cargo which is currently on board a vessel between ports

Aft

At or towards the stern of the ship or the tail of the aircraft.

After Date
A notation used on financial instruments (such as drafts or bills of exchange) to fix the maturity date as a fixed number of days past the date of drawing of the draft.

After Sight
A notation on a draft that indicates that payment is due a stated number of days after the draft has been presented to the drawee.

Agent

A person or legal entity authorized to act on behalf of another.

Agent Bank

1. A bank acting on behalf of another bank.
2. A bank acting for lenders and bondholders, similar to an indenture trustee.

Aggregated Shipments

Several shipments intended for one consignee from various shippers that are consolidated and treated as a single consignment.

Agreed Valuation
The value of a shipment that is agreed upon by both the shipper and the carrier to define the freight rate and/or the liability of the carrier.

Air Cargo
Property of any kind that is transported by aircraft (excluding passenger baggage and mail).

Air Express
Expedited air freight service.

Air Parcel Post
Parcels shipped through the mails to be transported by air.

Airwaybill

The shipping document used for the transportation of air freight: includes conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. It is generally similar to a straight non-negotiable bill of lading and is used for similar purposes.

Alienable

Ability to be transferred or conveyed.

All-Cargo Aircraft
Any aircraft that is used for the sole purpose of transporting cargo or mail.

Allowance

A deduction or discount from the price permitted by a seller.

Alternative Tariff
In transportation, a tariff with two or more rates for the same goods, to and from the same points, with the opportunity available to the shipper to use the lowest of the charges.

Amendment

An addition, deletion, or modification of a document.

Amidships

The area of a vessel midway between the front (the bow) and the rear (the stern). When the term applies to an airplane, it is midway between the nose and the tail.

Amortization

1. The provision to pay a debt over a period of time.
2. The gradual repayment of borrowings in a series of installments.
3. A transaction or security where the principal reduces over the life of the agreement.
4. The writing off or reduction in value of an intangible asset over time (c.f.depreciation)5. Allocation of the cost of an asset over its estimated useful life.

Antidumping Duties
Additional duties which are assessed on imported goods when those goods are sold to the importing country at a price that is less than "fair value", ("fair value" usually being defined as the price on the exporting country's domestic market or to third countries), and when those imported goods are found to cause or to threaten material injury to industry of the importing country.

Any Quantity
A cargo freight rate that applies to an article without regard to the weight or quantity shipped.

Applicant (also Account Party)
1. The party at whose request a bank issues a letter of credit.
2. A person who applies for something: a job, a passport, a visa, a license, a ticket etc. etc.

Appreciation
An increase in the value of something, - of goods, of currency, of shares of stock, etc,.

Approx. (Approximately)

Same as "about" and "circa"; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price.

Appurtenance
An accessory, adjunct, or appendage connected to a primary property and used in conjunction therewith.

Apron

1. Area of the airport where planes are parked. May be used for loading and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used for loading and unloading of vessels.

Arbitrage
A method of taking advantage of the fact that there may be different prices in different markets for identical goods such as gold, foreign exchange or commodities. Simultaneously, one buys in the lower price market and sells in the higher one.

As Is
Indicates goods for sale do not include a warranty, implied or expressed; the buyer takes the entire risk as to the quality or condition of the goods involved and must trust to his own inspection. In sum, the sale is "without recourse".

Assembly Service
A service under which a carrier or a forwarder or a warehouse combines multiple shipments from multiple shippers into one shipment for one receiver.

Assessment

1. The valuation, or determination as to value, of property.
2. The act of apportioning amounts to be paid.
3. An amount assessed or charged, for example: taxes or dues.

Assignment of Proceeds of a Letter Of Credit
If the bank agrees, the beneficiary assigns all or part of the proceeds to be paid to another party after the required documents have been presented.

At Sight
A notation on a draft which indicates that payment is due upon its presentation.

Athwartships
Across a vessel form side to side.

Automated Broker Interface (ABI)
(USA) A module of the U. S. Customs Automated Commercial System which provides a communications link for the transmission of entry and entry summary data on imported merchandise between ABI users and Customs.

Automated Commercial Environment (ACE)
(USA) A US Customs electronic data system, which provides support for enforcing trade and contraband laws, ensuring trade compliance, and providing service and information to the international trade community. When completed, it will cover the full gamut of Customs activities.

Automated Commercial System (ACS)
(USA) The comprehensive electronic data system of U. S. Customs for tracking, controlling, and processing commercial importations.

Automated Information Exchange System (AIES)
(USA) A module of the Automated Commercial System of U. S. Customs which provides an automated method of exchanging information between Field Import Specialists and National Import Specialists.

Automated Manifest System (AMS)
(USA) A module of the Automated Commercial System of U. S. Customs designed to control imported merchandise from the time a carrier's cargo manifest is electronically transmitted to U.S. Customs until the cargo is properly entered, released by customs and delivered.

Avoidance Of Contract
The legal cancellation of a contract because an event occurs that makes performance of the contract terms impossible or inequitable and that releases the parties from their obligations.


B



Back Haul

The return of a carrier to the original point or area from which its journey began. If a carrier can obtain cargo to carry on the back haul route, that cargo may often obtain a favorable freight rate because otherwise the carrier would have to return empty.

Back Order

That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date when available.

Bad Faith

The intent to mislead or deceive. It does not include misleading by an honest, inadvertent or uncalled-for misstatement.

Bagged Cargo

Goods shipped in sacks.

Bailment

A delivery of goods or personal property by one person (the bailor) to another (the bailee) on an express or implied contract for a particular purpose related to the goods while in possession of the bailee, who has a duty to redeliver them to the bailor.

Balance Of Payments

A statement summarizing all the economic and financial transactions between companies, banks, private households and public authorities of one nation with those of the other nations of the world over a specific time period. It includes merchandise trade payments, payments and receipts on account of shipping services, tourist services, financial services, government expenditures, short and long term capital movements, interest and dividends, gold movements, etc.

Balance of Trade

The difference in value between a country's total imports and exports over a specific time period.

Balanced Economy

A condition of national finances in which imports and exports are equal.

Bale

A large bundle or package of compressed and bound goods, usually with an outer covering, often of burlap.

Bale Cargo

Cargo shipped in bales.

Ballast

Heavy material or water placed in the lower holds of a ship or in strategically placed tanks along the sides to improve its stability.

Bank Acceptance

A draft drawn on and accepted by a bank.

Bank Delivery Order to an Airline

A letter addressed to an air carrier from a bank who is shown as consignee on an airwaybill instructing the carrier to release a shipment. Often airlines will accept as a delivery order a bank's endorsement on the airwaybill, although an airwaybill is a non-negotiable document.

Bank Draft

A form of check drawn by a bank against its account in another bank.

Bank Guarantee

An indemnity letter in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other form of default occurs. One use is when a bank wants a carrier to release a shipment which it has financed but the original bills of lading are not yet available for surrender to the carrier.

Bank Holding Company

(USA) Any company which directly controls, with power to vote, more than five percent of voting shares of two or more banks (as defined by the Bank Holding Company Act .

Bank Holiday

A day on which banks are closed.

Bank Note

A promissory note having the appearance of currency, issued by a bank or banker authorized to do so, payable to bearer on demand, and intended to circulate as money.

Bank Release

A document issued by a bank who is the consignee of a shipment authorizing a carrier to deliver a shipment.

Banker's Bank

A bank that is established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.

Banker's Draft

A draft payable on demand and drawn by, or on behalf of, a bank upon itself or upon another bank, sometimes a foreign bank, where it maintains an account or a relationship.

Bankers Acceptance

A draft calling for payment at a future date on which the drawee is a bank, and the bank has agreed to pay by signing "accepted" on the draft.

Bankruptcy

The condition of a legal entity that does not have the financial means to pay their incurred debts as they come due. In the U.S. this status is established through legal procedures involving a petition by the bankrupt or by its creditors.

Bareboat Charter

The charter of a vessel where the charter party has the right to use his own master and crew on the vessel. Pays all operating expenses.

Barge

A flat bottomed cargo vessel primarily used on rivers and canals. Usually it is towed or pushed but it may be self-propelled.

Barratry

1. In maritime law the intentional misconduct of the ship's master or crew; includes theft, intentional casting away of vessel, or breach of trust.
2. The offense of frequently stirring up quarrels and suits, either at law or otherwise.

Barter

Trade of goods or services without the use of money.

Basing Point

A location which is used to set the selling price of goods and the freight rates to all points. A price is set at a given location chosen as the ex-factory basing point with freight to the place of delivery added to create a delivered price. Then like goods, wherever they may be sold from, are charged freight to their destination as if they were shipped from the same location (the basing point).

Basing Rate

A freight rate which is used for the sole purpose of determining other freight rates. For an explanation of how this works, see 'Basing Point'.

Basket of Currencies

A composite unit consisting of weighted amounts of the currencies of a group of designated nations.

Battens

1.The protruding fixtures on the inside walls of a vessel's hold which are used to keep the cargo away or to fasten it in place.
2. Similar structural parts to the above in truck bodies, containers and rail cars.

Bearer

The person in possession of a negotiable instrument, document of title, or security marked "payable to bearer", or the person in possession of one of these documents endorsed in blank.

Beggar-Thy-Neighbor Policy

A course of action through which a country tries to reduce unemployment and increase domestic output by raising tariffs and instituting non-tariff barriers that impede imports, and thus improve its own position at the expense of its trading partners.

Belly Pits or Holds

Compartments beneath the cabin of an aircraft used for the transport of cargo or baggage.

Beneficiary

1. In the case of a letter of credit, the individual or company who is entitled to draw or demand payment under its terms.
2. In the case of insurance, the person entitled to take the proceeds.
3. The person for whose benefit a contract, or trust, or will is executed or enforced.

Berth

The place beside a docking area where a ship is secured and cargo can be loaded or unloaded.

Bid Bond

A type of indemnity bond. A surety guarantee often required to be established by a bidder to guarantee fulfillment of his offer if accepted.

Bilateral Investment Treaty

A treaty between two countries with the goal of ensuring that investments made by either of them in the other receive treatment equal to that afforded their domestic entities or any third country entities.

Bilateral Trade

The commerce between two countries.

Bill

1. A "Bill of Exchange" or "Draft" (same thing).
2. A written statement of contract terms.3 .The word "Bill" has many other international trade connotations - "Invoice" etc.

Bill of Credit

A written authority from one person to another, empowering the recipient of the document to receive money from the correspondents of the issuer abroad . (The usual issuer is a bank)

Bill of Exchange

Draft or Bill.

Bill of Health

An official certificate (Pratique) issued by the authorities upon the departure of a vessel or airplane showing the state of health at the place of departure, and of the passengers and crew.

Bill of Lading

A document issued by a carrier which is evidence of receipt of the goods, and is a contract of carriage. It describes the goods, the details of the intended voyage, and it specifies the conditions of transportation. If issued in negotiable form, i.e. "to order", it becomes documentary evidence of title to the goods.

Bill of Sale

A written document by which a party legally transfers ownership of goods to another party.

Bill-To Party

The party designated on purchase order, invoice, or bill of lading as the one to whom the bill should be sent for payment.

Billed Weight

The designated weight shown on the freight bill which is used to calculate the freight charges.

Billing Third Party

The transference of transportation charges to a party other than the shipper or consignee.

Biological Agents

A complex substance of organic origin which can treat or cause disease.

Black Market

Buying or selling of products that violate government restrictions.

Blanket Rate

In insurance, a rate of premium applied across the board when there is more than one kind of property which is the subject of insurance.

Blockade

Prevention of commercial exchange by physically preventing carriers from entering a port or nation.

Bona Fide

In or with good faith, honesty, and sincerity.

Bond

1. A written undertaking to perform or refrain from performing specified acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due and usually specifying a rate of interest and its dates of periodic payment.

Bond of Indemnity

A bond to indemnify and save harmless the party to whom the bond is issued against some anticipated loss.

Bond System

(USA) An automated electronic system, part of the Automated Customs System, whose purpose is to control and track indemnity bonds issued to Customs to secure compliance with various laws.

Bonded

(USA) This term refers to goods which are held, stored or transported under circumstances where applicable duty or taxes have not yet been definitely determined or paid, and admissibility has not yet been arranged. Bonds must be posted by those who are responsible for the goods during this period (the carriers, warehouses, and/or importers) to indemnify the government if the goods are released improperly.

Bonded Terminal

(USA) A terminal approved by Customs for temporary storage of imported goods until Customs duties are paid or goods released. Bonds must be posted by the terminal operator to indemnify the government if the goods are released improperly.

Bonded Warehouse

(USA) An approved private warehouse used for the storage of goods until duties or taxes are paid and the goods are properly released by Customs. Bonds must be posted by the warehouse proprietor and by the importer to indemnify the government if the goods are released improperly.

Booking

The making of arrangements for a shipment with the representatives of a vessel or airline.

Bounties

A compensation paid to persons to induce certain actions. In this class are government payments to producers or exporters to strengthen their competitive position.

Box

1. Term referring to a trailer, semi-trailer, or container used in transportation.
2. A type of package of wood, cardboard, metal, plastic or other material.

Box Car

A closed railroad freight car.

Boycott

A concerted refusal to deal commercially with a person, firm, or country.

Breakage

1. A monetary allowance that a manufacturer allots for compensation to a buyer for breakage to goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for example in computing interest.
3. In marine insurance, "breakage" refers to breakage of fragile goods such as glass and china.

Breakbulk

1. A breakbulk ship is one which transports cargo which is packed in cases, bales, cartons, drums, carboys etc., and this cargo is carried in the ship's cargo holds rather than in containers (although some loaded containers may be carried).
2. 'to breakbulk' is to unload packaged cargo from a 'breakbulk ship' or from a container and to distribute it.

Breakbulk Cargo

Cargo that is shipped in packing units such as cartons, cases, crates, bales, or drums, but not containerized.

Broker

One that acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission.

Bulk Cargo

Cargo that is made up of an unpacked commodity; examples include grain, oil, and ore.

Bulk Carrier

A vessel designed for the shipment of bulk cargo.

Bulk Freight

Cargo not in packages or containers.

Bulk Sale

The transfer or sale of substantially all of an inventory of an enterprise in a single transaction not in the usual course of business.

Bulk Solids

Dry cargo shipped loose, such as grain, ore, etc.

Bunker Adjustment Factor

An adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel.

Bunker Fuel

The fuel used to power a ship.

Bunker(s)

1. A compartment (hold) of a ship for storage of fuel.
2. The fuel for a vessel

Bureau Of Alcohol, Tobacco And Firearms

The Bureau of Alcohol, Tobacco and Firearms (ATF) is a law enforcement organization within the United States Department of Treasury with unique responsibilities dedicated to reducing violent crime, collecting revenue, and protecting the public. ATF enforces the Federal laws and regulations relating to alcohol, tobacco, firearms, explosives and arson by working directly and in cooperation with others.

Bureau of Industry and Security

A U.S. government agency responsible for control of exports for reasons of national security, foreign policy and short supply.

Buy American Acts

U.S. federal and state government statutes that give a preference in government contracts to U.S. produced goods.






Cabotage

1. Water transportation, navigation or trade along the coasts, between the ports of one nation.2 Inland freight movements confined with the national boundaries of a nation are also sometimes called cabotage.

Call

1. A demand for early repayment of an obligation, or for the performance of a specific act under a contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for "Call Option," a contract giving the holder the right to receive from the issuer a specified amount of a security at a specified price on or before a certain date.5. Short for "Margin Call" - a call by a future or an options exchange, or by a broker to its clients, for additional collateral to that previously posted when the futures, options, or securities were purchased without posting their full value.

Call Money

Money lent by banks on a short term basis which the bank, as lender, can "call" (demand payment at any time, usually on 24 hours notice.)

Capacity To Contract

Legal competency to make a contract.

Capital Goods

1. Durable goods which are used to produce other goods for consumption: for example machinery, equipment, buildings
2. Also, material used or consumed to produce other goods.

Capital Market

The market for long term investment funds in the form of stocks, bonds, commercial paper etc.

Captain's protest

A written sworn statement of the master of a vessel to the effect that damage suffered by the ship during the voyage was caused by storm or other peril of the sea, without any negligence or misconduct on his own part.

Cargo

Merchandise hauled by transportation lines.

Cargo Agent

An agent appointed by an airline or shipping line to solicit and process international air and ocean freight shipments.

Cargo Manifest

A list of cargo being transported or warehoused.

Cargo Selectivity System

(USA) An Automated Customs System module which is used to identify high risk cargo and to apply more intensive examinations to it.

Cargo Tonnage

The weight of a shipment or of ship's total cargo expressed in tons.

Carnet

Called an "A T A Carnet". An international customs document which incorporates guarantees to be used in lieu of Customs documents to enter goods into certain countries temporarily without paying import duty or posting bonds.

Carriage Of Goods By Sea Act Of 1936

(USA) The basic law of ocean shipping in the U.S. Among other provisions, it establishes parameters for the carrier's liability for loss or damage to cargo.

Carrier

A legal entity that is in the business of transporting passengers or goods for hire.

Carrier's Certificate

(USA) A document issued by a carrier providing the particulars of a shipment and designating to customs who may make a customs entry on that shipment..

Cartel

A group of independent producers which regulates production, pricing, and marketing by members to maximize market power and limit competition.

Cash Against Documents (CAD)

A term used in collections supported by shipping documents which are released to the buyer only against payment. Same as Documents Against Payment (D/P).

Casus Major

An extraordinary casualty such as a fire, shipwreck etc.

Category Groups

A classification system which groups various products for statistical, export control or quota control purposes.

Caveat Emptor

Let the buyer beware, which is to say the purchaser buys at his own risk.

Cell

The space constructed on a ship into which one container fits.

Census Interface

(USA) An Automated Customs System module that captures trade data for the U.S. Bureau of Census.

Central Bank

An institution with the sole right to issue bank notes and power to dictate the monetary policy for a currency zone.

Certificate of Inspection

A certificate issued by an independent third party verifying the condition of cargo or of property.

Certificate of Manufacture

1. A certificate sometimes required from a manufacturer to attest that goods have been manufactured according to the contract; for example, to support payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback based on manufacture in the United States.

Certificate of Weight

A document certifying to the weight of a shipment.

Certification

1. Official proof of authenticity.
2. The formal assertion of some fact in writing.

Cession of Goods

A surrender or assignment of goods for the benefit of one's creditors.

CFR (Cost and Freight ...named port of destination)

The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. (Note: this Incoterm, CFR, has replaced the term C&F which has been in common usage)

Chargeable Weight

The weight or volume of a shipment used in determining freight charges.

Charter Service

Temporary hiring of an aircraft or vessel for the transportation of cargo or passengers.

Chartered Ship

A ship leased for a stated time, voyage, or voyages.

Chassis

1. A special trailer or undercarriage on which containers are moved over the road.
2. The undercarriage of a vehicle.

CIF (Cost, Insurance and Freight... named port of destination)

The seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage.

CIP (Carriage and Insurance Paid To...named place of destination)

The seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage.

Circa

Same as "about" and "approx."; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price.

City Terminal Service

A service provided by some airlines that involves receiving or delivering cargo at terminals in-town instead of at airports.

Claim

1. A demand of payment.
2. In insurance, a demand for payment of money or property as the result of an insured loss..
3. In transportation, a demand for return of overpaid charges. Also, a demand for reimbursement of losses due to loss or casualty to cargo or failure to deliver.

Classification

The categorization of merchandise: In transportation - to permit determination of freight rates within a tariff. In customs - to permit the determination of duty status within the Harmonized Tariff Schedules.

Claused Bill of Lading

A notation on a bill of lading which denotes a deficient condition of the goods or packaging, or other annotated conditions modifying the printed conditions on the Bill Of Lading.

Clean Bill of Lading

A bill of lading issued by a carrier for goods delivered in "apparent good order and condition" - bearing no notations or added clauses which may limit the liability of the carrier.

Clean Draft

A draft with no commercial documents attached.

Clearance

1. The completion of governmental requirements so that a carrier may arrive in a port and unlade cargo and passengers, or may lade cargo and passengers and depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to allow goods to be imported or to be exported.

Closed-End Transaction

A credit transaction with a fixed amount of time for repayment.

Coastal Trade

Trade by vessel between the ports of one nation.

Collar

An agreement that puts upper and lower limits on the interest rate of a financial instrument or on the price of something, and through this device limits the possible amount of loss or gain from the rise or fall of interest or price of the thing "collared"

Collect Charges

1. Transportation practice where the receiver of the goods pays the freight and charges to the carrier.
2. Collection practice where the buyer is expected to pay the bank charges for handling the collection.

Collect on Delivery (C.O.D.)

A service where the purchase price of a shipment is collected by the carrier upon delivery of the shipment and subsequently paid to the shipper.

Collecting Bank

A bank involved in the collection process. In this process if presentation is made to the drawee, it becomes also "the presenting bank."

Collection

1. The presentation for payment of an obligation and the payment thereof.
2. A gathering of similar goods.

Collection Letter

Customer's written instructions to a bank on how to handle a collection. Many banks have an instruction form for use instead of a letter.

Collection Papers

Drafts, invoices, printed lists, documents which relate to a shipment, and other similar instruments presented to the designated buyer/ payee to obtain payment or acceptance.

Collection System

(USA) In U.S. Customs, it is the process that controls and accounts for payments collected by the agency.

Combination Aircraft

An aircraft capable of transporting both cargo and passengers on the same flight.

Combined Bill of Lading

A bill of lading covering a shipment of goods by more than one mode of transportation.

Combined Transport

Consignment sent by means of various modes of transport.

Comity

1. In international relations it is the recognition that one sovereignty allows within its territory to the legislative, executive or judicial acts of another sovereignty, with due regard to the rights of its own citizens.
2. Courtesy, respect, and good will.

Command Economy

An economic system where the decisions about allocation of resources, production, distribution and consumption are made by a central government authority instead of being determined by market forces. An example was the Nazi economy.

Commercial Bank

In the USA, a bank that is authorized to accept demand deposits. It may also receive time deposits, make loans, engage in trust services, issue letters of credit, accept and pay drafts, rent safe deposit boxes and engage in many other similar activities.

Commercial Invoice

A document which details the transaction between a seller and a buyer. It minimally should give the name and address of the seller and of the buyer, the date of the sale, a description of the goods sold, the quantity, the unit price, the terms of sale, and the total money amount due. If it is an invoice between buyer and seller of different countries it should also indicate the kind of currency.

Commercial Letter of Credit

An instrument by which a bank substitutes its credit for that of a customer to enable him to finance the purchase of goods or to incur other commitments. The bank issues a letter (or document) on behalf of its client to a supplier and agrees to pay them upon presentation of documentary evidence that the supplier has performed in accordance with the terms of the letter of credit.

Commercial Officers

Embassy and consular officials who assist their country's citizens and businesses in a foreign country through arranging appointments with local business and government officials and providing counsel on local trade regulations, laws, and customs.

Commercial Paper

Negotiable instruments used in commerce. Usually they are short term, unsecured, promissory notes issued by highly rated entities and are traded on the money markets.

Commercial Set

The documents required to evidence the shipment of goods; usually includes an invoice, packing list, and bill of lading; may include certificate of origin, certificate or policy of insurance, and other special documents.

Commercial Treaty

An agreement between two or more countries that establishes the conditions under which business may be conducted between their citizens within their countries..

Commingling

1. The packing or mingling of various goods subject to different rates of duty so that the value and quantity of each class of goods cannot be readily determined.
2. To combine funds or properties into a common mass.

Commission

1. A board or committee officially appointed to perform certain functions or exercise certain jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in the completion of a transaction involving the sale of goods or services.3.The authority under which one acts, transacts business or negotiates for another.

Commodity Code

The system of identifying a commodity by an assigned number.

Commodity Rate

The rate applicable to shipping a given commodity between points.

Common Point

1. A location serviced by two or more transportation lines.
2. A significant point over which aircraft fly and report to the air controllers.

Competitive Rate

Rate determined by one transportation line to compete with the rate of another transportation line.

Compradore

An agent in a foreign country employed by a domestic businessman to facilitate transactions with local businesses within the foreign country.

Concealed Damage

Damage to the contents of a package which is not evident from the appearance of the exterior of the package.

Concealed Loss

1. Loss from a package bearing concealed damage.
2. Damage, loss, or shortage of goods within a package which is not apparent from its exterior condition.

Confirming Bank

A bank which engages to honor a letter of credit issued by another, or engages that such letter of credit will be honored by the issuer or by a third bank.

Connecting Carrier

A carrier which has direct physical connection with another carrier or forms a connecting link between two or more carriers.

Consignee

The person or firm named in a freight contract to whom goods have been shipped or turned over for care.

Consignment

1. Goods or property sent by the aid of a carrier from one person (the consignor) to another (the consignee).
2. Entrusting of goods to another to sell as agent for the sender.

Consignor

The entity that ships goods to another. On a bill of lading, the shipper.

Consolidated Container

A shipping container that contains cargo from various shippers for delivery to various consignees.

Consolidation

1. In transportation, the combining of smaller shipments into a single shipment that is sent to a destination point.2.The reorganization of corporations to combine two or more into a successor corporation.

Consolidator

A company that provides freight consolidation services.

Consular Invoice

An invoice covering a shipment of goods, usually required to be certified by the counsel of the country for which the merchandise is destined. It may be required to be on a special form and be subject to the payment of special fees.

Consulate

An office of a country within another country (often there are several, located in the larger commercial centers). These offices represent the commercial interests of the citizens of their country.

Consumer Goods

Any goods produced for the express use of individuals rather than the production or manufacturing of other goods.

Consumption Entry

(USA) A "consumption entry" is the filing with Customs in proper form of an "entry summary for consumption" on imported goods , and payment of estimated duties, taxes, and fees, if any, resulting in the release of the goods by Customs. When the release is unconditional, the importer may dispose of the goods.

Container

A reusable, rigid, exterior "box" in which merchandise is shipped by air, vessel, truck, or rail.

Container Freight Charge

Charge made for the packing or unpacking of cargo from ocean freight containers.

Container Load

A shipment of cargo that, according to weight or volume, will fit a standard container.

Container on Flatcar

A container without wheels put on railcars for transport inland,

Container Part Load

A shipment of cargo that according to weight or volume will not fill a standard container on its own but is expected to be shipped in a container, if necessary with other shipments which are also too small to take up a full container themselves.

Container Vessel

An ocean going vessel designed specifically to handle the loading, carriage and removal of standard freight containers.

Contraband

Any product that a nation has made unlawful to possess, produce, transport, import, or export.

Contract Carrier

Excluding common carriers, any person who under contract will transport passengers or goods for agreed upon compensation.

Convertibility

The attribute of being exchangeable, such as a currency freely able to be exchanged for another, or as preferred stock or bonds to be exchanged for common stock.

Core Inflation

The basic level of inflation over a period of time as opposed to temporary fluctuations.

Corporate Dumping

The practice of exporting banned or out of date goods to a foreign market where restrictions on that product are not as severe.

Cost Plus

A pricing method where the purchaser agrees to pay the production cost of the good plus a fixed percentage to the seller for profit.

Countervailing Duties (CVD)

(USA) Duties which are assessed, in addition to regular duties, to offset the effects of foreign subsidies or bounties upon the export of merchandise to the United States which has been found to materially injure, or threaten material injury to, an American industry.

Country of Departure

The country from which a shipment of goods, a carrier, or a passenger has or is scheduled to depart.

Country of Destination

The country that is the ultimate destination for a shipment of goods. For a carrier, it is the country in which it intends to complete its current voyage or flight.

Country of Dispatch

The country from which a cargo is shipped.

Country of Export Destination

The country to which goods are going in order to be consumed, further processed, or manufactured, as presumed by the shipper at the time of exportation.

Country of Exportation

The country from which goods are shipped with intention to separate them from the mass of goods in that country.

Country of Origin

The country in which goods were produced, mined, grown or manufactured.

Country Risk

The financial risks of a transaction which relate to the political, economic, or social instability of the country of the debtor, and is over and above the credit risk of the borrower.

Courier

1. Attendant who accompanies shipments.
2. Express company which handles shipments of documents and small packages on an expedited basis and may or may not have the shipments accompanied by attendants,

CPT (Carriage Paid To...named port of destination)

The seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.

Customs

The government service which is responsible for the administration of Customs law and the collection of duties and taxes relating thereto, and which has responsibility for the application of other laws and regulations relative to the importation , transit, and exportation of goods.

Customs Electronic Bulletin Board (CEBB)

(USA) Customs Electronic Bulletin Board (CEBB): An electronic bulletin board accessible by computer, sponsored by U.S. Customs, providing the trade community with up-to-date information, clearance requirements, and operation instructions.






DAF (Delivered At Frontier ...named place)

The seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country.

Damages

1. A loss or harm to a person or their property.
2. The pecuniary compensation or indemnity which may be recovered by any person who has suffered loss, detriment or injury to his person, property or rights through the unlawful act, omission, or negligence of another.

Dangerous Goods

Goods which are capable of posing a health or safety risk.

Date Draft

A draft which matures a specified number of days after the date it is issued.

Date of Issue

The arbitrary date on a contract or on a financial instrument fixed as the date from which the term runs. (Neither the actual date on the instrument, nor the date the instrument was actually signed, nor the date the instrument was executed, nor the date the instrument was delivered, are considered to be the "Date of issue" or the "issuance date".)

DDP (Delivered Duty Paid...named place of destination)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.

DDU (Delivered Duty Unpaid... named place of destination)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation as well as the costs and risks of carrying out customs formalities). The buyer has to pay any additional costs and bear any risks caused by his failure to clear the goods for import in time.

Deadweight

1. In maritime terms, the deadweight of a vessel is the maximum weight of the cargo, crew, stores and bunkers that it can carry when loaded so that it settles in the water to the Plimsoll line. This is also measurable by the weight of the water the vessel displaces when fully loaded less the displacement when it was unloaded.
2. Deadweight cargo is cargo of such high density that a long ton (2240 lbs.) of such cargo can be stowed in less than 70 cubic feet.

Dealer

An individual or firm who purchases goods for resale.

Debtor Nation

A nation that is owed less foreign currency obligations than it owes other nations.

Deck Cargo

Cargo that is shipped on the deck of a vessel rather than in holds below.

Declared Value For Carriage

The value of goods declared to the carrier by the shipper for the purposes of determining charges and establishing the liability of the carrier.

Declared Value for Customs

The value of a shipment according to the customs laws of the destination country required to be declared by the shipper on the shipping documents or by the importer when he presents the goods for customs clearance.

Deferred Air Freight

Arrangements can be made according to the tariffs of some air carriers to have less urgent freight delivered at a lower cost on later flights which are more convenient for the airline.

Deferred Payment Letter of Credit

A letter of credit that allows the buyer to take possession of goods by agreeing to pay the issuing bank or the confirming bank at a fixed future date.

Del Credere Risk

A situation where a sales agent sells on credit and for an additional commission guarantees to his principal the credit of the purchaser and the performance of the contract.

Delivery

1. In the case of transportation, the act of transferring physical possession.
2. The act of actually or of constructively placing goods or property within the possession or control of another.

Delivery Carrier

The transport carrier whose responsibility it is to place a shipment at the disposal of the consignee at the named destination.

Delivery Instructions

Specific delivery instructions for the freight forwarder or carrier stating exactly to whom, where and when goods are to be delivered.

Delivery Order

A document from the consignee, shipper, or owner of freight ordering the release of freight to another party.

Demise

1. A lease of property.
2. Death. (Isn't English an interesting language?)

Demise charter

A lease of a vessel in which all control is relinquished by the owner to the charterer, and the charterer bears all the expenses of operation. Similar to bareboat charter.

Demurrage

1. In international transportation, a charge for the failure to remove cargo from a terminal within the allowed free time. Also, a charge for failure to load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against users for use of carriers' equipment beyond the allowed free time.

DEQ (Delivered Ex Quay - Duty Paid - ...named port of destination)

The seller fulfils his obligation to deliver when he has made the goods available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto. (Note: If the parties wish the buyer to clear the goods for importation and pay the duty, the words "duty unpaid" should be used instead of "duty paid", and other costs of importation can also be excluded from the seller's obligations if this is made clear by adding words to this effect.)

DES (Delivered Ex Ship...named port of destination)

The seller fulfils his obligation to deliver when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination. The seller must bear all the costs and risks involved in bringing the goods to the named port of destination.

Destination

The place to which a shipment or person is going..

Detention

The act of keeping back or withholding either accidentally or by design a person or thing.

Devanning

The unloading of cargo from a shipping container.

Developed Countries

A term used to describe the industrialized nations.

Developing Countries

A term used to describe countries that lack strong amounts of industrialization, infrastructure, and sophisticated technology, but are beginning to build these capabilities.

Differential

An amount added to or deducted from a base shipping freight rate between two given locations to determine a new rate to or from some other point or via another route.

Direct Mail Collection (DMC)

A seller may forward his documents and instructions for collecting payment directly to a collecting bank in a foreign country, without going through the intermediary of the seller's own domestic bank.

Discharge

1. To release; liberate; annul; unburden; disencounter; dismiss. To extinguish an obligation; terminate all employment of a person; release, as from prison or military services.
2. The unloading of passengers or cargo from a vessel, vehicle, or aircraft.

Discharging

The unloading of cargo from a carrier, or of the contents from a container.

Discounted Bill

An accepted draft against which a loan is made and the interest is deducted immediately.

Discounting

1. The sale at less than original price of a commodity or monetary instrument, often for immediate payment.
2. A loan by a bank with a deduction of the interest in advance.

Discrimination

A failure to treat all persons or parties equally where no reasonable distinction can be found between those favored and those not favored. It mat be reflected in treatment, service or rates.

Dishonor

1. The refusal by a drawee to accept a draft or to pay it when due.
2. The act of disrespect or insult.

Dispatch

1.An amount paid by a vessel's operator to a charterer if loading or unloading is completed in less time than stipulated in the charter agreement.
2. a message or report to a newspaper from a correspondent, or between government services such as state or military.
3. to send to a destination.

Distribution Service

A transportation service that accepts a shipment from a shipper and at destination separates and sorts the packages and distributes them to many receivers.

Distributor

An agent who sells for a supplier at wholesale and usually maintains an inventory of the supplier's products.

Diversion

Any change in the routing of a shipment once it has been received by the carrier at point of origin and prior to delivery at destination.

Dock

1. A loading or unloading platform at an industrial location or carrier terminal.
2. A ship's berth or wharf.

Dock Examination

(USA) Examination of imported merchandise by Customs at the terminal where it is discharged from the import carrier.

Dock Receipt

A receipt issued by a vessel agent that certifies that goods have been received.

Documents Against Acceptance (D/A)

As a procedure to collect payment on an exported shipment. instructions are given that documents necessary to obtain the merchandise from customs and the carrier are to be released to a buyer only against the buyer's acceptance of a time draft drawn upon him.

Documents Upon Payment (D/P)

As a procedure to collect payment for an export shipment, instructions are given that the documents necessary for the buyer to obtain the shipment from customs and the carrier are to be released to him only upon payment of the draft. (Same as CAD)

Dolly

A piece of equipment with wheels used to move freight with or without a tractor.

Domestic Exports

Exports of goods which were grown, produced, mined, or manufactured in the country from which exported.

Domicile

That place where a person or organization has their principal residence with intent to make it their permanent home.

Door-To-Door

Shipping service from shipper's door to consignee's door.

Double-Column Tariff

A customs tariff schedule with two columns of rates, one for preferred trading partners and one for imports from others.

Downstream Dumping

The sale of products below cost or below fair value by a producer to a another producer in its own domestic market by whom the product is then further processed and exported to another country at a price lower than would otherwise be charged and thus causing injury in that country.

Drawback

(USA) A refund of duty and taxes which may be obtained upon the exportation or destruction of certain articles under certain conditions.

Drawback System

(USA) An Automated Customs System module that provides the means for processing and controlling all types of drawback entries.

Dray

A vehicle used to haul cargo or goods, usually drawn by a horse.

Drayage

The charge made for hauling freight via carts, drays or trucks.

Drop Shipment

At the request of a wholesaler, a shipment of goods from a manufacturer directly to a dealer or consumer, avoiding delivery to the wholesaler.

Drop-off

The delivery of a shipment by a shipper to a carrier for transportation.

Dry Cargo

Cargo which is of solid, dry material. It is not liquid or gas, and generally the term excludes cargo requiring special temperature controls.

Dry-Bulk Container

A shipping container designed to carry unpackaged free-flowing dry solids such as grain or sand.

Dry-Cargo Container

Any shipping container designed to transport goods other than liquids or gasses.

Dual Exchange Rate

The existence of two exchange rates for a single currency for use in different circumstances as mandated by the government.

Dual Pricing

The selling of identical products in different markets for different prices.

Dumping

The sale of goods in a foreign country at less than" fair value" (a price lower than that at which it is sold within the exporting country or to third countries), and which thereby materially injures, or threatens to materially injure, that industry in the foreign country.

Dunnage

Materials placed around cargo to prevent shifting or damage while in transit.

Durable Goods

Any product which is not consumed through use.

Dutiable List

The list of Items in a country's tariff schedule on which it charges import duty.

Duty

A tax levied by a government on the import or export of goods.(Note: The U.S. Constitution forbids the levying of taxes by the U.S. on exports. However, most foreign governments do not have this restriction,)








Easement

A right to use another person's property.

Edge Act Corporations

Banks that are subsidiaries either to bank holding companies or other banks established to engage in foreign business transactions.

Electronic Commerce

A system of integrated communications, data management, and security services that allow business applications within different organizations to automatically interchange information.

Electronic Data Interchange (EDI)

Electronic transmission of data and information according to particular protocols .

Electronic Funds Transfer

System of transferring funds from one account to another by electronic means.

Electronic Meat Health Certificate

(USA) A demonstration project that illustrates the electronic transmission of fresh meat health certificates.

Electronic Visa Information System (ELVIS)

(USA) An electronic data system via which participating foreign governments transmit electronically to the U. S. Government details of shipments of quota controlled textile goods they have made to the U.S.

Embargo

A government prohibition of exports or imports with respect to specific products or specific foreign countries.

En Route

In transit (referring to goods, passengers, or vessels).

Entrepot

An intermediary storage facility (often in an intermediate country) where goods are kept temporarily for distribution.

Entrepot Trade

The import and export of goods which receive no further processing but are distributed from the entrepot facility which is chosen for its location and lack of restrictions on trade,

Entry

1.That documentation required to be filed with the appropriate customs officer to secure the release of imported merchandise from customs custody.
2. The act of filing that documentation.

Entry Documents

The documents required to complete customs entry to secure the release of imported merchandise.

Entry Summary

(USA) Documentation which is necessary to enable US Customs to collect duties, collect statistics, and determine whether other requirements of law or regulations are met upon importation. In the US, the importer must classify the goods, determine their customs value, and calculate duties, taxes and fees.

Entry Summary System

(USA) An Automated Customs System module that automates the entry processing cycle.

Environmental Protection Agency (EPA)

(USA) An independent agency in the executive branch whose mandate is to control and abate pollution in the areas of air, water, solid waste, pesticides, radiation, and toxic substances.

Equalization

In transportation, a money allowance given the customer if the transport company picks up the goods at origin points or delivers them to destination points other than those named on the bill of lading.

Escape Clause

1. A provision in a bilateral or multilateral commercial agreement permitting a signatory nation to change their obligations when imports threaten serious harm to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting parties to avoid liability for nonperformance under certain conditions.

ETA

The expected date and time of arrival of a carrier.

ETD

The expected date and time of departure of a carrier.

Eurobond

A bond issued in a Euro-currency, usually Euro-dollars

Ex Factory

This term is still widely used but it is being replaced by the Incoterm EXW - Ex Works. It is a sale term where the title to goods passes to the buyer when they leave the vendor's dock and consequently at that point the liability for loss or damage and the expenses of shipment also pass from vendor to buyer.

Exchange Rate

The price of one currency expressed in terms of another.

Excise Tax

Taxes on the manufacture, sale, or consumption of goods, or upon licenses to pursue certain occupations, or upon corporate privileges. In current usage it covers various license fees imposed by government and practically every internal revenue tax from any source except the income tax.

Exculpatory Clause

1. A contractual clause that releases one party from liability in case of wrong doing by the other party involved.
2. A contractual clause which excuses a trustee from liability where he executes a power in good faith.

Expiry Date

The "End", specifically: the cessation; termination by lapse of time as the expiration of a lease, insurance policy, or statute. Coming to a close or termination. The expiry date is the date on which these events occur. It is the last date that options or warrants can be executed.

Export

To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.

Export Broker

A firm that specializes in bringing foreign buyers and domestic sellers together for a fee but usually does not participate in the actual business transaction.

Export Control

The establishment of procedures for the governmental control of exports for statistical or strategic purposes.

Export Declaration

(USA) The Shipper's Export Declaration is a required customs document for exportation of goods from the United States which provides statistics and facilitates control where applicable.

Export Draft

A documentary order in the form of a draft drawn on the importing party to pay the seller for the exported goods.

Export Duty

A tax imposed by some nations on their exports.

Export License

A license issued to exporters by governments to permit them to export certain goods to certain countries. Such goods may be of strategic importance, or simply in short supply, or are controlled to comply with foreign agreements.

Export Management Company

A private firm that serves as the export department for several manufacturers and handles the exporting aspect of the business for a commission or fee.

Export Merchant

A company that buys domestic and foreign products and sells to foreign purchasers. Usually an export merchant is able to compete because of specialized knowledge of the products in which they deal, detailed knowledge of foreign markets, and expertise in international trading techniques.

Export Processing Zone

Industrial parks designated by a government to provide tax and other incentives to export firms.

Export Quotas

Specified maximums which a nation places on the value or volume of certain of its exports.

Export Restraints

Restrictions which a nation places upon its exports, often to avoid more burdensome restrictions being applied by the importing nations.

Export Statistics

The statistics that cover the exports from one country to other countries.

Export Subsidies

Government payments to induce exportation by domestic producers.

Export Trading Company

A corporation organized for the principal purpose of exporting goods and services.

Exporter

An individual or company that ships goods from one country to another in the course of trade.

Exporter Identification Number

(USA) An identification number assigned to exporters of goods from the United States which is required to be shown on the Shipper's Export Declaration for all shipments from the USA..

External Value

The purchasing power of a currency abroad, converted using the exchange rate.

Extradition

The surrender by one state or country to another of an individual accused or convicted of an offense within the jurisdiction of the other.

EXW (Ex Works ...named place)

The seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.

Easement

A right to use another person's property.

Edge Act Corporations

Banks that are subsidiaries either to bank holding companies or other banks established to engage in foreign business transactions.

Electronic Commerce

A system of integrated communications, data management, and security services that allow business applications within different organizations to automatically interchange information.

Electronic Data Interchange (EDI)

Electronic transmission of data and information according to particular protocols .

Electronic Funds Transfer

System of transferring funds from one account to another by electronic means.

Electronic Meat Health Certificate

(USA) A demonstration project that illustrates the electronic transmission of fresh meat health certificates.

Electronic Visa Information System (ELVIS)

(USA) An electronic data system via which participating foreign governments transmit electronically to the U. S. Government details of shipments of quota controlled textile goods they have made to the U.S.

Embargo

A government prohibition of exports or imports with respect to specific products or specific foreign countries.

En Route

In transit (referring to goods, passengers, or vessels).

Entrepot

An intermediary storage facility (often in an intermediate country) where goods are kept temporarily for distribution.

Entrepot Trade

The import and export of goods which receive no further processing but are distributed from the entrepot facility which is chosen for its location and lack of restrictions on trade,

Entry

1.That documentation required to be filed with the appropriate customs officer to secure the release of imported merchandise from customs custody.
2. The act of filing that documentation.

Entry Documents

The documents required to complete customs entry to secure the release of imported merchandise.

Entry Summary

(USA) Documentation which is necessary to enable US Customs to collect duties, collect statistics, and determine whether other requirements of law or regulations are met upon importation. In the US, the importer must classify the goods, determine their customs value, and calculate duties, taxes and fees.

Entry Summary System

(USA) An Automated Customs System module that automates the entry processing cycle.

Environmental Protection Agency (EPA)

(USA) An independent agency in the executive branch whose mandate is to control and abate pollution in the areas of air, water, solid waste, pesticides, radiation, and toxic substances.

Equalization

In transportation, a money allowance given the customer if the transport company picks up the goods at origin points or delivers them to destination points other than those named on the bill of lading.

Escape Clause

1. A provision in a bilateral or multilateral commercial agreement permitting a signatory nation to change their obligations when imports threaten serious harm to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting parties to avoid liability for nonperformance under certain conditions.

ETA

The expected date and time of arrival of a carrier.

ETD

The expected date and time of departure of a carrier.

Eurobond

A bond issued in a Euro-currency, usually Euro-dollars

Ex Factory

This term is still widely used but it is being replaced by the Incoterm EXW - Ex Works. It is a sale term where the title to goods passes to the buyer when they leave the vendor's dock and consequently at that point the liability for loss or damage and the expenses of shipment also pass from vendor to buyer.

Exchange Rate

The price of one currency expressed in terms of another.

Excise Tax

Taxes on the manufacture, sale, or consumption of goods, or upon licenses to pursue certain occupations, or upon corporate privileges. In current usage it covers various license fees imposed by government and practically every internal revenue tax from any source except the income tax.

Exculpatory Clause

1. A contractual clause that releases one party from liability in case of wrong doing by the other party involved.
2. A contractual clause which excuses a trustee from liability where he executes a power in good faith.

Expiry Date

The "End", specifically: the cessation; termination by lapse of time as the expiration of a lease, insurance policy, or statute. Coming to a close or termination. The expiry date is the date on which these events occur. It is the last date that options or warrants can be executed.

Export

To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.

Export Broker

A firm that specializes in bringing foreign buyers and domestic sellers together for a fee but usually does not participate in the actual business transaction.

Export Control

The establishment of procedures for the governmental control of exports for statistical or strategic purposes.

Export Declaration

(USA) The Shipper's Export Declaration is a required customs document for exportation of goods from the United States which provides statistics and facilitates control where applicable.

Export Draft

A documentary order in the form of a draft drawn on the importing party to pay the seller for the exported goods.

Export Duty

A tax imposed by some nations on their exports.

Export License

A license issued to exporters by governments to permit them to export certain goods to certain countries. Such goods may be of strategic importance, or simply in short supply, or are controlled to comply with foreign agreements.

Export Management Company

A private firm that serves as the export department for several manufacturers and handles the exporting aspect of the business for a commission or fee.

Export Merchant

A company that buys domestic and foreign products and sells to foreign purchasers. Usually an export merchant is able to compete because of specialized knowledge of the products in which they deal, detailed knowledge of foreign markets, and expertise in international trading techniques.

Export Processing Zone

Industrial parks designated by a government to provide tax and other incentives to export firms.

Export Quotas

Specified maximums which a nation places on the value or volume of certain of its exports.

Export Restraints

Restrictions which a nation places upon its exports, often to avoid more burdensome restrictions being applied by the importing nations.

Export Statistics

The statistics that cover the exports from one country to other countries.

Export Subsidies

Government payments to induce exportation by domestic producers.

Export Trading Company

A corporation organized for the principal purpose of exporting goods and services.

Exporter

An individual or company that ships goods from one country to another in the course of trade.

Exporter Identification Number

(USA) An identification number assigned to exporters of goods from the United States which is required to be shown on the Shipper's Export Declaration for all shipments from the USA..

External Value

The purchasing power of a currency abroad, converted using the exchange rate.

Extradition

The surrender by one state or country to another of an individual accused or convicted of an offense within the jurisdiction of the other.

EXW (Ex Works ...named place)

The seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.






Facilitation

1. Programs designed to expedite the flow of international commerce.
2. The act of freeing more or less completely from obstruction or hindrance.

Factor

1. An agent who receives merchandise under consignment or under a bailment contract, who sells it for the principal or in the factor's own name, and who is paid a commission for each sale.
2. A financing company which purchases accounts receivable under agreed conditions and at agreed discounts and thus makes funds immediately available to approved sellers.

Factor's Lien

The right of a factor to retain possession of designated assets of the principal until the factor receives full compensation from the principal.

Factorage

The commission or other compensation paid to a factor.

Fair Value

(USA) In dumping evaluations, it is the price at which the items being reviewed should have been sold in the home market in order to be considered as goods offered for export in the usual course of trade at fair market value and not guilty of being dumped.

FAS (Free Alongside Ship...named port of shipment)

The seller fulfils his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. The buyer has to bear all costs and risks of loss or of damage to the goods from that moment.

FCA (Free Carrier...named place)

The seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point.

FDA

Food And Drug Administration.

Federal Reserve System

(USA) The equivalent of the central bank of the USA and the coordinator of monetary policy.

Feeder Vessel

A vessel which is part of a cargo network in which the larger, faster vessels only call at the major ports at both ends of the area being covered, and the smaller ports are served by the smaller feeder vessels which transfer the cargo to and from the major port terminals and thus keep the larger vessels filled closer to capacity and spare them the expense and loss of time in loading and unloading in the subsidiary ports.

FEU

Forty foot equivalent units of shipping containers. (Two 20 ft containers = 1 FEU).

Financial Instrument

A document which has a monetary value or is evidence of a monetary transaction, such as drafts, bills of exchange, checks and promissory notes.

Financial Market

Market for the exchange of capital and credit in an economy.

First World Countries

"Western, industrialized, non-communist countries," was the previously accepted criteria, but in view of the emergence of Japan as an economic power and the rising status of Russia and China, "industrialized" is probably the only remaining valid criterium for a "First World Country" at this time.

Five Dragons

Term used to describe the emerging economies of Hong Kong, Singapore, South Korea, Taiwan, and Thailand.

Fixed Charges

1. Charges which do not increase or decrease with a change in volume.
2. Expenses that have to be borne whether any business is done or not.

Fixed Exchange

1. When Governments or their Central Banks administratively set the exchange rate for their currency.
2. An administratively set exchange rate where no rate fluctuations are permitted.

Fixing

The setting of a price by a known method at regular times. For example, the establishment of an official exchange rate, interest rate, or security or commodity price.

Flag

A reference to the country of registry of a vessel.

Flag of Convenience

The national flag flown by a ship that is registered in a country other than that of its owners. (Usually arranged in order to save taxes and operating expenses)

Flight of Capital

The movement of capital to another country to avoid loss.

Floating

Free determination of rates based on supply and demand, for example exchange rates or interest rates.

Flotsam

Floating debris or wreckage of a ship and its cargo.

FOB (Free On Board ... named port of shipment)

The seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. The buyer has to bear all costs and risks of loss or damage to the goods from that point.

Force Majeure

A condition of superior or irresistible force such as Acts of God, including earthquakes and floods, which cannot be avoided by the exercise of due care and is included in contracts to excuse parties from performance when such events occur.

Foreign Bond

An international bond usually denominated in the currency of the country where it is issued.

Foreign Commerce

Trade between individuals or legal entities in different countries.

Foreign Currency

The currency of any foreign country which is authorized by that country as the medium of circulation.

Foreign Exchange

Currency of countries exchangeable for other currencies according to their relative values based on supply and demand.

Foreign Exchange Contract

A contract for the sale or purchase of the currency of one country to be paid for with the currency of another country, specifying an amount, an exchange rate, and delivery date.

Foreign Exchange Rate

The rate or price of the currency of one country in terms of the currency of another.

Foreign Exports

1. (USA) Exports from the United States of foreign origin merchandise. (for the purposes of USA export statistics)
2. Exports by other countries..

Foreign Flag

The national identification of a carrier registered in a foreign country. A vessel flies the national flag of the country in which it is registered, and it may be registered in a country different from that of its owner.

Foreign Income

Income gained by residents of one country from another country.

Foreign Investment

The purchase of assets which are abroad.

Foreign Market Value

From the American point of view it is the price at which merchandise is sold at wholesale in the principal markets of the country from which it is exported.

Foreign Parent

The first foreign person or entity outside the United States in an affiliate's ownership chain that has direct investment in the affiliate.

Foreign Person

1. A person belonging to or under citizenship of another country.
2. Using the United States as an example, a person who resides outside of the United States or is subject to the jurisdiction of another country other than the United States is a "foreign person".

Foreign Remittances

The transfer of any funds across national boundaries.

Foreign Trade Zone Act (FTZA)

(USA) The act which established foreign trade zones in the USA.

Forward Foreign Exchange

An agreement to purchase or sell an amount of foreign currency at a future date at a predetermined price.

Foul Bill of Lading

A bill of lading issued with notations on it which limit the carrier's liability; for example, a notation that the goods were received damaged, or short, or improperly packaged.

Fractional Currency

Any currency that is smaller than a standard money unit.

Franco

Free from duties, transportation charges and other levies.

Free Domicile

"Free Domicile" is still a widely used pricing term to describe when the shipper pays all the applicable duties and all the transportation and other charges until delivered to the buyer's premises. The term is being replaced by Incoterm "DDP - Delivered Duty Paid ... named point of destination."

Free In and Out

A pricing term indicating that the vessel operator is responsible for the cost of loading and unloading.

Free List

A schedule of items in a customs tariff that are not subject to the payment of duties.

Free Market

A market in which there is unrestricted trading of goods with prices determined by supply and demand. Internationally, there is an unrestricted movement of goods in and out , and it is unhampered by the existence of tariffs or other trade barriers.

Free Port

An area where imported goods may be brought without payment of duties.

Free Time

1. The time allowed shippers and receivers to load or unload rail cars before demurrage or detention.
2. The time allowed consignees to take physical delivery of cargo before storage or demurrage is assessed.

Free Zone

An area within a country (a seaport, airport, warehouse or any designated area) regarded as being outside its customs territory where importers may bring goods of foreign origin without paying customs duties and taxes, pending their eventual processing, transshipment or re-exportation.

Free-Astray

A shipment or part of a shipment which has been dropped off at a wrong location by a carrier

Freight

1. All merchandise, goods, products, or commodities shipped by rail, air, road, or water, other than baggage, express mail, or regular mail.
2. The compensation paid for the transport of goods.

Freight Charge

The charge assessed for transporting cargo.

Freight Claim

1. A demand upon a carrier for the repayment of overcharge.
2. A demand upon a carrier for cargo loss or damage.

Freighter

A ship or airplane used primarily to carry cargo.

Fungibles

Goods that, for commercial purposes, are identical with other goods and interchangeable in all situations.

Futures Contract

A contract for the future delivery of a specified commodity, currency or security on a specific date at a rate determined in the present.






Gang

Maritime: A group of longshoremen under a supervisor who are assigned to load or unload a portion of a vessel.

Gangway

1. The opening through which a ship is boarded.
2. A platform connecting quarterdeck and forecastle of a ship.

Gantry Crane

A specialized crane which travels on a structure which can span a wide area and raises and lowers cargo. Some of them span the deck of a vessel.

Gateway

1. A major airport or seaport;
2. or the port where customs clearance takes place;
3. or a point at which freight moving from one territory to another is interchanged between transportation lines.

Geisha Bond

Bond issued on the Japanese market in currencies other than yen.

General Agreement On Tariffs And Trade (GATT)

Both a multilateral trade agreement aimed at expanding international trade and the organization which oversees the agreement. The main goals of GATT are to liberalize world trade and place it on a secure basis thereby contributing to economic growth and development and the welfare of the world's people. The organization, GATT, has been succeeded by the World Trade Organization (WTO).

General Average

1. loss that affects all cargo interests on board a vessel as well as the ship herself.
2. An internationally accepted rule of the sea which says when a peril threatens the survival of the ship, there may be sacrificed (thrown overboard) any cargo or supplies or ships' furnishings, and any expense incurred necessary to save the ship. If the vessel is saved, all cargo owners, ship owner, and owners of the freight revenue share pro rata in the loss.

General Cargo Rate

The rate a carrier charges for the transportation of cargo which does not qualify for a lower special class or commodity rate in the carrier's tariff.

General Cargo Vessels

A vessel designed to handle breakbulk cargo such as bags, cartons, cases, crates and drums, either individually or in unitized or palletized loads.

General Commodity Rate

In a maritime tariff, a freight rate applicable to all commodities except those for which specific rates have been filed.

General Imports

The total physical arrivals of merchandise into one country from foreign countries during a period of time..

General Liability

Unlimited responsibility for an obligation, such as payment of debts of a business.

General Order

(USA) The customs requirement that goods not cleared within a specific number of days after arrival of the carrier must be taken into custody of customs and deposited in a warehouse at the risk and expense of the consignee.

General Order Warehouse

(USA) A bonded warehouse authorized by customs to store goods sent to General Order.

General Partnership

A partnership where all partners have joint ownership. They share the profit, losses and management equally and each has personal liability for all the debts.

General Tariff

A tariff that applies to countries that do not enjoy either preferential or most favored nation tariff treatment.

Generalized System Of Preferences (GSP)

A program providing for free rates of duty for merchandise from beneficiary developing independent countries and territories to encourage their economic growth.

Global Bond

A bond that can be traded in any United States capital market and in the Euromarket with special arrangements made for transferability between the markets.

Global Quota

A quota set by a nation on the total imports of a product from all countries.

Gold Exchange Standard

A monetary system adopted by some countries which did not have enough gold to go onto the gold standard so they deposited their gold with one of the leading gold standard countries and made their currency more or less freely convertible to the currency of that country.

Gold Reserves

Gold retained by a nation or its central banks contributing to the nation's creditworthiness in the issuance of bonds and currency, although there may be no commitment by it to exchange gold for its currency.

Gold Standard

A monetary system whereby every form of currency issued by a country is convertible on demand into its legal equivalent in gold or gold coin

Gondola Car

An open railway car with sides and ends, used principally for hauling coal, sand, etc.

Goods

Merchandise; supplies; raw materials; wares; commodities; products. The meaning may vary in various situations but for purposes of a contract for storage or transportation, or with reference to collateral for security, it means all things treated as movable.

Grantee

1. One to whom a grant is made; a grant being the giving or permitting as a right or privilege, an authority, a power, a license, or a property.
2. (USA) As to foreign trade zones in the US, a corporation to which the privilege of establishing, operating, and maintaining a foreign trade zone has been granted by the Foreign Trade Zone Board.

Green Card

A popular name for an identity card (visa) issued by the U.S. Immigration and Naturalization Service entitling a foreign national to enter and reside in the United States as a permanent resident.

Grid

Fixed margin within which exchange rates are allowed to fluctuate.

Gross

1. 12 dozen or 144 articles.
2. Total (as in "Gross Weight".)

Gross Domestic Product

A measure of the market value of all goods and services produced within the boundaries of a nation. It excludes income from external enterprises or investments.

Gross National Product

A measure of the market value of all goods and services produced within the boundaries of a nation plus receipts from foreign business activities and investments beyond the national boundaries.

Gross Weight

The total weight of a package or a shipment, including goods and packaging.


H



Hallmark

1. Originally an impression made on gold and silverware introduced in the beginning of the fourteenth century in England to identify the quality of the metal used. Later, a mark to identify the maker and year of production.
2. Figuratively, a distinguishing characteristic.

Harbor Fees

Charges assessed to users for use of a harbor, used generally for maintenance of the harbor.

Harbor Master

An officer who is commander of harbor activities and directs the berthing, etc. of ships in a harbor.

Hard Loan

A foreign loan that must be paid in hard money.

Hard Money

Currency of a nation having stability in the country and a reputation abroad for economic strength, and as a result it has wide and ready acceptability on world markets.

Harmonized System (HS)

A multipurpose international goods classification system designed to be used by manufacturers, transporters, exporters, importers, customs, statisticians, and others in classifying under a single commodity code goods moving in international trade.

Harmonized Tariff Schedule of the United States (HTSUS)

(USA) An organized listing of goods and their duty rates which is used as the basis for classifying imported products and identifying the rates of duty to be charged on them. It is based on the international Harmonized System Convention.

Harter Act

(USA) An 1893 Federal Statute regarding ocean bills of lading and limitation of some carrier liabilities. It has been substantially superseded by the Carriage of Goods by Sea Act of 1936 and others.

Hatch

The opening in the deck of a vessel which gives access to a cargo hold.

Haulage

1. The local transport of goods.
2. Also the charge(s) made for hauling freight on carts, drays or trucks.
3. Also called cartage or drayage.

Hazardous Materials

A substance or material which has been determined to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce.

Heavy Lift

Any article deemed by rules in a vessel's tariff to be beyond a certain weight. It may be too heavy for the ship's tackle and require special equipment such as a floating crane.

Heavy Lift Charge

In a maritime tariff, a charge made for lifting heavy articles to load or unload them.

Heavy Lift Vessel

A vessel with heavy lift cranes and other equipment designed to be self-sustaining in the handling of heavy cargo.

Hedge

To reduce one's risk of loss by compensating transactions on the other side. For example, buy goods for future delivery priced in a foreign currency. Hedge by buying the foreign exchange needed at the rate then in effect. Or, another way of hedging is to buy a forward exchange contract. In both cases the buyer will have a known cost in its own currency. This is a hedge against the risk of foreign exchange fluctuation; it is not a hedge against a change in the price of the goods.

Hedge Ratio

The amount of future exchange contracts, options, or underlying financial instruments, purchased or sold against a position to accomplish a hedge of the position.

High Density

High density cargo is cargo whose weight is high compared to its volume. A vessel tariff in which freight is charged according to weight or volume, whichever yields the highest freight charge, will result in high density freight being charged on a weight basis.

Hitchment

In maritime situations, if the tariff of the steamship company provides for it, portions of a shipment originating in different places may be joined together under one bill of lading from one shipper to one consignee at one destination.

Hold

1. The interior of a vessel below deck where cargo is carried.
2. to delay; to pause (verb); a delay; a pause (noun).
3. A verb with multiple other meanings than those noted above such as: to retain, to contain, to maintain, to bind, to bear, to own.

Hold For Pickup

Freight to be held at the carrier's destination location for pickup by the recipient.

Hold Harmless Contract

An agreement by which one party accepts responsibility for all damages and other liability that arise from a transaction, relieving the other party of any such liability.

Honor

To accept a bill of exchange; or to pay a note, check or draft at maturity.

Horizontal Export Trading Company

An export trading company which exports a range of similar or identical products supplied by a number of manufacturers who may be competitors on the domestic market.

House Air Waybill

1. A bill of lading issued by a freight forwarder for consolidated air freight shipments.
2. An airwaybill issued by an airfreight forwarder by which the forwarder assumes the risk and obligations of being "the carrier."

House-To-House

A shipping term indicating that a container will be offered by the carrier for use by the shipper and the receiver for the transport of the contents from the domicile of one to the domicile of the other, but the carrier only contracts to transport the loaded container from terminal at origin to terminal at destination.(usually called C/Y to C/Y - container yard to container yard.)

Hub And Spoke Routing

Air cargo routing pattern that feeds traffic from many places to a central airport where it is sorted and rerouted on other aircraft to final destinations.

Hull

The outer shell of a vessel.

Hump

An essential feature of a railcar sorting yard . The "hump" is that part of the track which is elevated so that when a car is pushed up on it and uncoupled, it runs down the other side by gravity and is switched onto the siding where a train is being made up for the desired destination.

Hundredweight Pricing

In transportation, special pricing for multiple-piece shipments (weighing over 100 pounds in total) traveling to one destination, which are rated on the total weight of the shipment as opposed to rating on a per package basis.









Irrevocable Corporate Purchase Order

A purchase order completed by a buyer on corporate letter head indicating type and quantity of products being ordered from a supplier.

Identical Merchandise

(USA) For U.S. Customs purposes of appraisement, identical merchandise means merchandise identical in all respect to and produced in the same country and by the same person as, the merchandise being appraised.

Immediate Delivery(ID)

(USA) In certain circumstances, merchandise may be released by U. S. Customs under a special permit for immediate delivery with entry summary (details) and duty to be submitted subsequently. It is a procedure principally utilized along the land borders.

Immediate Transportation Entry

(USA) A form of U.S. Customs entry which allows imported merchandise to be transported under bond to another port for customs clearance thereat.

Immigration

The entry of foreign nationals into a country for the purpose of establishing permanent residence.

Implied Conditions

Certain implied conditions are not written into marine insurance policies, but they are so basic to the understanding between the underwriter and the assured that the law gives them much the same effect as if written. (In many other types of contracts there also may be "implied conditions," for example a seller of goods implies that they are fit for the purpose they purport to serve.)

Import

The act of bringing or causing any goods to be brought into a customs territory.

Import Credit

A commercial letter of credit issued for the purpose of financing the importation of goods.

Import Duty

Customs duty which is collected on in connection with the importation of goods.

Import License

An import license (or import permit) is an authorization by a competent authority for the importation of goods which are subject to restriction.

Import Quota

A protective device establishing limits on the quantity of a particular product that may be imported into a country.

Import Quota Auctioning

The process of auctioning the right to import specified quantities of quota-restricted goods.

Import Relief

Any of several measures imposed by a government to temporally restrict imports of a product or commodity to protect domestic producers from competition. Or, any of several measures to strengthen domestic producers such as subsidies, educational assistance to workers, training assistance to workers, low interest loans to producers, tax relief to producers etc.

Import Restrictions

Any one of a series of tariff and non-tariff barriers imposed by an importing nation to control the volume of goods coming into the country from other countries.

Import Sensitive Producers

Domestic producers whose economic viability is threatened by competition (quality, price or service) from imported products.

Import Substitution

A national economic strategy to build up a domestic economy by emphasizing the replacement of imports by domestically produced goods.

Importer

The individual, firm or legal entity that brings goods, or causes goods to be brought from a foreign country into a customs territory.

Importer Number

(USA) An identification number assigned by the U.S. Customs Service to each importer to track entries and other transactions. In most cases the Taxpayer's Identification Number assigned by the Internal Revenue Service is the number also used by Customs.

Imports

Goods brought into a customs territory.

Imports For Consumption

The total of merchandise that has physically cleared through the customs of a country either entering domestic consumption channels immediately or entering after withdrawal for consumption from bonded warehouses or from foreign trade zones.

Impost

1. A tax, especially an import duty.
2. To classify an impost in order to fix the duty. (rarely used). (Note: an imposter is one who imposts. Another definition of an imposter is a "pretender" but that is not the meaning intended here.).)

Impound

To seize or hold; or to place in custody by order of a court.

In Bond

(USA) A procedure under which goods are transported, stored, or handled, prior to clearance and release by customs, and the government's interest is secured by indemnity bonds.

In Bond Shipment

An import or export shipment which has not been cleared by Customs and is transported, stored, or handled with security to the government provided by indemnity bonds.

In-Bond System

(USA) A part of U.S. Customs' Automated Commercial System, controls merchandise from the point of unloading at the place of arrival, while handled or transported further in bond, until customs cleared.

Incentive

A motivational force that stimulates people to greater activity or increased efficiency.

Income

Money or its equivalent, earned or accrued, arising from the sale of goods or services.

Incoterms

An abbreviation of "International Commercial Terms" published by the International Chamber of Commerce. It is a set of rules for the interpretation of the most commonly used trade terms in foreign trade which parties to a contract can agree upon to avoid misunderstandings, disputes and litigation.

Indemnify

1. To compensate for actual loss sustained.
2. To give security for the reimbursement of a person in case of an anticipated loss falling upon him.

Indemnity

1. A compensation to make a person whole from a loss already sustained.
2. A contract or assurance by which one engages to secure another against an anticipated loss.

Independent Action

The right of a conference member to depart from the common freight rates, terms or conditions of the conference without the need for prior approval of the conference.

Indexed

In finance this term means "measured by" and/or "adjusted according to," thus an interest rate on a note may be, by agreement, "indexed" i.e. adjusted according to the market at time the interest is due. Or a note denominated in a foreign currency may have its exchange rate "indexed," adjusted according to the market rate in effect at the time of payment.

Indexed Currency Borrowings

Borrowings in a foreign currency where the rate of interest is linked to an agreed scale, and/or the rate of exchange at repayment is linked to an agreed scale.

Indexed Currency Option Note

Note denominated and paying interest in one currency but whose redemption value is linked to an exchange rate for another currency.

Industrial List

(USA) The Coordinating Committee for Multilateral Export Controls industrial list contains dual-use items (usable for military or nuclear purposes in addition to normal commercial uses) and as a result whose export is controlled for strategic reasons.

Industrial Policy

Encompasses traditional activist governmental policies intended to provide a favorable economic climate for the development of industry in general or specific industrial sectors.

Infant Industry Argument

The view that "temporary protection" for a new industry or firm in a particular country through tariff and non-tariff barriers to imports can help it to become established and eventually competitive in world markets, in which case the protective measures will no longer be needed.

Inflation

Loss of purchasing power of money caused by growth of the amount of money in circulation and reflected in a rise in prices without a proportionate increase in value of the things purchased..

Informal Entry

(USA) A simplified import entry procedure accepted at the option of Customs for any baggage or commercial shipment that does not exceed a specified value.

Informed Compliance

(USA) A term that describes the improved ability of a entity to comply with Federal rules and regulations through easy access to up-to-date information.

Infrastructure

The institutions and fundamental organizations which support the basic structure of a nation's economy, among these are: the educational system, the transportation systems, the banking system, the public utilities, the water supply system, the sanitation system, the health maintenance network, the public security and safety systems, the communication systems, the postal system etc.

Inherent Vice

The inherent physical properties of goods which may cause them to suffer deterioration or damage without outside influence. (For example: spontaneous combustion, rust etc.)

Injury

1. (USA) A finding by the U.S. International Trade Commission that an import is causing harm (material injury) or threatening to cause harm (material injury) to a U.S. industry...(If caused by sales to the U.S. at "less than fair value", it may be considered "dumping" and trigger "antidumping duties", or if it is caused by foreign subsidies or bounties, it may trigger "countervailing duties").
2. A wrong or damage done to another, either in his person, rights, reputation, or property.
3. The invasion of any legally protected interest of another.

Inland Bill of Lading

A bill of lading used in transporting goods overland.

Inland Carrier

A transportation line which hauls cargo inland: truck, rail, barge, inland waterways, or domestic airline flights.

Inspection Certificate

A document describing the condition of goods and confirming that they have been inspected.

Instrument

Any written document that gives formal expression to a legal agreement or act.

Integrated Cargo Service

A blend of all segments of the cargo system providing the combined services of carrier, forwarder, handlers, and agents, utilizing all forms of transport.

Integrated Carriers

Carriers that have multiple varieties of fleets (i.e. air and ground, truck and rail, etc.).

Intellectual Property

Non-tangible property that is the result of creativity such as copyrights and patents.

Interbank Dealings

Dealings between banks.

Interchange Agreement

An agreement that specifically lays out the terms of leasing or temporarily borrowing equipment from a carrier. A frequent use of an interchange agreement is between an ocean carrier and a trucking company when the trucking company takes a container from the pier for delivery to the consignee.

Interchange Point

A location where one carrier delivers freight to another carrier.

Interline Shipping

The movement of a single shipment on two or more carriers.

Intermodal Compatibility

The physical capability of a shipment of goods to be transported from one form of transportation to another.

Intermodal Transport

Coordinated transport of freight using multiple methods of transportation.

International Trade

The business of buying and selling commodities beyond national borders.

International Trade Data System

A proposed electronic system that would integrate the different government trade and transportation data processes into a system that provides a standard means of gathering, processing, storing and disseminating import and export trade data. See IT06.

Interstate Carrier

(USA) A common carrier whose business extends beyond the boundaries of one state.

Interstate Commerce

(USA) Trade, transport, and communication between or among the several states of the United States.

Invisible Barriers to Trade

Government regulations (national and local), and cultural conditions that do not directly restrict trade but hinder it with excessive and obscure requirements.

Invisible Trade Balance

The balance of trade reflecting the import and export of services.

Invoice

A written account or itemized statement, usually on a printed form with the name and address of the seller, listing merchandise sold or shipped to a purchaser, consignee, factor etc., showing their name and address, and containing a description of the merchandise, the quantity, values or prices and charges, and other significant details of the transaction such as the terms of sale and the currency of the purchase.

Inward Foreign Manifest (IFM)

(USA) A U.S. Customs mandated document requiring the complete listing by bill of lading number or airwaybill numbers of an arriving carrier's cargo. It should give the commercial particulars of the goods including: consignors, consignees, marks and numbers, number and kind of packages, their weights or measures, descriptions and quantities of the goods, their port of loading and intended port of discharge.

Irrevocable Letter of Credit

A letter of credit which cannot be amended or canceled without prior mutual consent of all parties to the credit.

Issuance

1. The execution, validation, and tender of delivery of a contract or financial instrument to the appropriate party.
2. The act of sending forth, promulgating, or the giving of a thing its first inception. The first delivery of an instrument to a holder or remitter.

Issuance Date of the Documents

The date indicated on documents as their date of preparation, subject to correction when necessary as noted above under the term "issuance" and under the definition of "Date of Issue" elsewhere in this glossary.

IT06

An initiative calling for the development of an international trade data system sponsored by the US Government that will meet the needs of Federal agencies involved in international trade as well as the trade information needs of businesses and the general public.

J



Jetsam

Articles from a ship or ship's cargo that were thrown overboard, (usually to lighten the load in times of emergency or distress.). The articles may sink or be washed ashore.

Jettison

The act of throwing overboard at sea part of a vessel's paraphernalia or cargo or hull - usually in hopes of saving the ship from sinking.

Joint Agent

A person having authority to transact business for two or more principals . In transportation it is a common occurrence.

Joint And Several Liability

Liability for damages imposed on two or more individuals or legal entities who are responsible together and individually, allowing the party harmed to seek full remedy against all or any number of the wrongdoers.

Joint Rate

A single freight rate on cargo moving via two or more carriers who then share the income..

Joint Stock Company

An unincorporated business enterprise with ownership interests represented by shares of stock. Also a joint Stock Association.

Joint Venture

A combination of two or more individuals or legal entities who undertake together a transaction for mutual gain or to engage in a commercial enterprise together with mutual sharing of profits and losses.

Jurat

A statement signed by a person authorized to take oaths certifying to the authenticity of a document or affidavit.

Juristic Act

Action intended to, and capable of having, a legal effect, such as the creation, termination, or modification of a legal right.

Just In Time

The principle of production and inventory control that prescribes precise controls for the movement of raw materials, component parts and work-in-progress. Goods are expected to arrive when needed for production rather than arriving prior to need and becoming inventory,













Keelage

The charges paid by a ship entering or remaining in certain ports.

Key Currency

A major currency in the global economy. Key currencies include the U.S. dollar, the British pound sterling, the German mark, the Swiss franc, the French franc, the Dutch guilder, the Japanese yen and the Canadian dollar.

Kiosk

A small structure suitable for use as a newsstand, display stand, bandstand, study stand etc.

Knocked Down

An article disassembled, or unassembled, or taken apart, or folded, or telescoped to reduce its bulk; subject to easy assembly. This is usually done to reduce the dimensions of the shipping package and thereby to save transportation and storage costs.

Known Loss

1. loss discovered before or at the time of delivery of a shipment.
2. An evident loss (as opposed to a concealed loss or damage to contents within a package.)
3. A loss of which the insured and/or the insurer is aware at the time the insurance is effected.









Laissez-faire

A term used to describe minimal governmental involvement in an economy, allowing market forces and individuals to make their own decisions, with little or no regulation.

Landbridge

The movement of cargo (usually in containers) from one foreign country by vessel, transiting another country by rail or truck, and then being loaded aboard another vessel for delivery to the destination country. The movement across the country from port to port is the "landbridge" portion of the transportation.

Lanham Act Of 1947

Federal legislation governing trademarks and trademark registration.

Lay Order

The period during which imported merchandise may remain at the place of unloading without some action being taken for its disposition.

Lead Time

That period of time needed to prepare for an action.

Legal Entity

Any individual, proprietorship, partnership, corporation, association, or other organization that has, in the eyes of the law, the capacity to make a contract or an agreement, and the ability to assume an obligation and to discharge an indebtedness.

Legal Tender

Any money that is recognized as being lawful for use by a debtor to pay a creditor, who must accept same in the discharge of a debt unless the contract between the parties specifically states that another type of money is to be used. It is that money which is lawful for the payment of all debts, public and private, public charges, taxes, duties and dues.

Less Than Truckload

A shipment which does not completely fill a truck or which weighs less than the weight required for the application of the truck load freight rate (which is usually a lower freight rate than applied to less-than-truckload cargo.)

Letter Of Assignment

A document with which the assignor assigns its rights to a third party, the assignee.

Letter Of Credit

A commitment, usually by a bank on behalf of a client, to pay a beneficiary a stated amount of money under specified conditions.

Letter of Indemnity

A document which the writer issues to another party agreeing to protect them from liability for the performance of certain acts. 1. In the case of international transportation when a negotiable bill of lading has been issued but is not available for surrender to the carrier when it is desired to take delivery of the shipment, a bank may issue a letter of indemnity to the carrier to persuade them to release the cargo. (A Letter of Guarantee may also be used ). The bank will usually obtain a similar letter from its client to protect itself against the liability it assumes on behalf of the client.
2. On export shipments, some carriers may permit shippers to issue letters of indemnity to the carriers in order to secure from them clean bills of lading in place of foul, or to replace lost original bills of lading.

Letter of Intent

A document that describes the preliminary understanding between parties who intend to make a contract or join together in another action.

Licensing Agreement

The issuance of a license permitting the use of patents, trademarks, or other technology.

Lift Van

A wooden or metal container used for packing household goods and personal effects.

Lighter

A barge towed by a tugboat and used mainly in harbors and inland waterways for the transport of cargo to and from ships. Some may be self-powered,

Lighter Aboard Ship

Some ships are constructed to carry special barges (lighters). These barges can go to smaller docks, go into inland waterways, load cargo at those places, and then carry it back to the ship which lifts the barges aboard, with their cargo, and transports them overseas. Discharge of cargo is accomplished in the same manner.

Lighterage

The loading or unloading of a ship by means of a lighter (barge), especially when shallow waters prevent an ocean going vessel from approaching a berth, or if berths are unavailable.

Limitation Period

A maximum period set by a statute within which a legal action can be brought or a right enforced..

Limited Liability

1. Restricted liability for obligations.
2. (USA) Limitation of Liability Act. A U.S. statute which permits a shipowner to restrict his liability to whatever value his ship has after an event such as a sinking or collision.

Limited Partnership

A partnership in which at least one of the partners is a general partner who conducts the business and has personal liability for the partnership debts, and at least one of the other partners is a special partner who shares in the profits and losses but their liability is limited to the sum they contribute to the partnership.

Line Haul

The direct movement of freight between two major ports by a single ship.

Line Haul Vessel

A vessel which is on a regularly defined schedule between ports,

Line Release System

(USA) A separate part of the U.S. Customs' Automated Commercial System used for truck traffic along the land borders designed for the release and tracking of shipments through the use of personal computers and bar code technology.

Liner

A vessel carrying passengers and cargo that operates with a fixed schedule on a particular route.

Liner Terms

Conditions under which a shipping company will transport goods, including in the amount payable for freight the cost both for loading and discharge of the cargo from the vessel.

Liquidated Damages

A sum of money that a contracting party agrees to pay to the other party for breaching an agreement.

Liquidation

1. The act or process of settling or making clear, fixed and determined.
2. The winding up and settlement of a debt.
3. The winding up of the financial affairs of a business.
4. (USA) The final computation or ascertainment of the duties accruing on an entry.

Liquidation System

(USA) A part of U.S. Customs' Automated Commercial System, which closes the file on each entry.

Liquidity

1. The availability of liquid funds in an economy.
2. The status or condition of a person or business in terms of its ability to convert its assets into cash and to meet its obligations.
3. The capacity of a market in a particular security or commodity to withstand an unusual amount of buying or selling without affecting the market substantially.

Lloyds Of London

An English association of insurance underwriters, the oldest of its kind in the world. Not in itself an insurance company.

Lloyds Registry

An English society, independent of Lloyds of London, which surveys and classifies the ships of the world according to their description, condition, seaworthiness, and compliance with codes and protocols. Also establishes standards for maintenance and construction. (Correct name is: Lloyds Register of Shipping.)

Loading

The physical placing of cargo into a truck, a shipping container, or onto a vessel.

Longshoreman

A laborer who loads and unloads ships, handles cargo and containers at shipping terminals, and loads and unloads containers at shipping terminals.

Lot Labels

Labels attached to each piece of multiple lot shipment for identification purposes. Each lot label will carry the same number (the lot number) There may also be a consecutive number on each label to separately identify each package.

Lower Deck Containers

Carrier owned containers specially designed as an integral part of the aircraft to fit in the cargo compartments of a wide body aircraft. These compartments are on the lower deck of the aircraft below where the passengers sit.





Macroeconomics

The study of large scale economic factors affecting an economy as a whole.

Mail Entry

A means of shipping and entering goods into a Customs Territory through the postal system.

Mala Fides

In bad faith. (A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not.)

Manifest

1. A document listing and describing the cargo contents of a carrier, container or warehouse.
2. Evident to the senses, especially to the sight, obvious to the understanding, evident to the mind, open, clear, visible, unmistakable, indubitable, indisputable, self-evident.

Manufacturer's Identification Number (MID)

(USA) An identification number used by U. S. Customs in its electronic data processing system for each manufacturer whose goods are shipped to the United States.

Maquiladora

A Mexican factory, usually located in a zone close to the US border, which has special privileges from the Mexican government to produce goods for the US market. Much of the work performed in these factories is the assembly of imported components.

Margin

1. In commercial terms the difference between the cost of goods sold and the total net sales price.
2. The purchase of a stock or a commodity with payment of only part of the purchase price in cash (called the margin) and the balance by loan (usually made by the broker.)

Marginal Cost

The increase in the total costs of a producer of producing one more unit of output, or the decrease in producing one less unit of output.

Maritime

Business pertaining to commerce or navigation by sea.

Market Access

The openness of a national market to foreign products and services.

Market Disruption

A situation where a surge of imports of a certain product causes a sharp decline in the domestic sales of that product and creates a hardship for domestic producers.

Market Economy

An economic system where resources are allocated and production of goods determined by market forces rather than by government decree.

Market Price

The price established in the market where buyers and sellers compete with each other to negotiate the best prices and terms.

Marking: Country of Origin

The physical markings on a product that indicate the country of origin where the article was produced. (With very few exceptions, the U.S. requires every imported article to be so marked.)

Marks

Identification placed on the outer surface of shipping containers or packages. At one time it consisted of pictures, letters and numbers. With the advent of computers, pictures are no longer used. Instructions on the packages for their proper handling, such as "This side up" may also be considered part of the marks. Also the weight and measurements of the packages.

Matador Bond

Bond issued on the Spanish market by an obligor who is not domiciled in Spain.

Mate's Receipt

A declaration issued by an officer of a vessel stating that certain goods have been received on board his vessel.

Material Contract Terms

Terms in a purchase/sale contract that are considered essential; they describe the goods, fix the price, fix the quantity, and set the delivery date.

Measurement Cargo

A cargo on which the transportation charge is assessed on the basis of size or dimensions, instead of upon the gross weight.

Medium of Exchange

Anything which is widely accepted in payment for goods and services and in settlement of debts. Its acceptability is based upon the fact that it can provide a common basis of measurement of the value of things.

Memorandum Bill of Lading

Sometimes the duplicate (non-original) copies of bills of lading are marked "Memorandum" and are intended for informational purposes only.

Memorandum of Understanding

An informal record, document, or instrument that serves as the basis of a future contract.

Merchant's Credit

A form of commercial letter of credit which the buyer, with no commitment on the part of a bank, sends to the seller via a bank in the district of the buyer. The seller presents his bill of sale and evidence of shipment in order to obtain payment from the buyer.

Microbridge

An intermodal movement of cargo which involves a vessel leg to a port and then a movement via another transportation mode, truck or rail, to an inland point where the movement terminates. In the reverse direction, the cargo is picked up at a point inland for transport via truck or rail to a port where a vessel loads the cargo and transports it to an overseas port. The land portion of the two intermodal moves described is the "microbridge".

Minibridge

An intermodal movement of cargo involving a vessel leg from one country to a port in another country, and then a movement via truck or rail to another port in that country, and there the voyage is terminated. The traversing of the land in the second country from discharge port to destination port is the "minibridge" portion of the movement. There could be a similar but opposite combined "minibridge" movement in the other direction.

Minimum Charge

The lowest amount that will be charged regardless of the amount of service rendered.

MOD Act

(USA) Customs Modernization and Informed Compliance Act: Passage 1992, HR 3935.

Money

Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange.

Money Creation

The increase in money supply by the central or commercial banks.

Money Market

The market for short term financial instruments (i.e. commercial paper, treasury bills, discount notes).

Money Market Operations

Creating, investing in, buying and selling short term obligations in the market for short term debt instruments.

Money Supply

The amount of cash and bank deposits available in an economy.

Moor

To secure a vessel to an anchor, buoy, or pier.

Moorage

Charges assessed for mooring a vessel to a pier or wharf.

Most Favored Nation

A trade policy commitment on the part of one nation to extend to another nation tariff rates as low as applies to any other "most favored nations," and to treat imports from that nation without discrimination.

Motor Carrier's Terminal

The place where a motor carrier receives freight, delivers freight to other motor carriers, temporarily stores freight, loads trucks and containers, and generally does all the things which a carrier has to do regarding freight handling and servicing of its trucks and equipment.

Multilateral Agreement

An agreement among more than two persons, firms, or governments.

Multimodal Transport

Transportation which includes at least two modes of transport, such as shipping by rail and by sea.

Multinational Corporation

A corporation having subsidiaries in more than one country.





NAFTA

North American Free Trade Agreement.

National Association Of Export Companies

A nonprofit organization to act as the information provider, support clearinghouse forum, and advocate for those involved in exporting and servicing exporters.

National Customs Brokers And Freight Forwarders Association

(USA) A non-profit organization which serves as the trade organization of customs brokers and international freight forwarders in the U.S.

National Trade Data Bank (NTDB)

(USA) An electronic data base which contains international economic and export promotion information supplied by 15 U.S. governmental agencies.

National Treatment

National treatment affords foreign individuals and firms the same competitive opportunities, including market access, as are available to domestic parties.

Nationalization

Takeover by a government of a public or private activity.

Negotiable

Legally capable of being transferred by endorsement or delivery.

Negotiable Bill of Lading

A bill of lading transferable by endorsement by virtue of its terms which make the goods which it covers deliverable to "bearer", or to the order of a named party, or to the assigns.

Nested

Packed one within another; for example the way paper cups are stacked as a way of saving space.

Net Cash

Payment for goods sold without any deduction allowed from the price.

Net National Product

The total amount of goods and services produced in a nation in a given period of time less the quantity of goods and services needed for its production.

Net Price

Price after all deductions, discounts, rebates, etc have been taken.

Net Weight

The weight of goods without packaging. The weight of the contents of a package.

No Show

Freight that has been booked for shipment on a carrier, but has not physically arrived in time to be loaded before departure of the carrier. This term is also applied to passengers who do not arrive for a departure

Notary Public

A person commissioned by a state for a stipulated period to administer certain oaths and to attest and certify documents. In some countries, the authority of a notary public is much more extensive.

Notify Address

Address of the party mentioned in the transport document to which the carrier is to give notice about the arrival of the shipment.

Notify Party

Name and address of a party indicated in the transport document to be notified by the shipping company of the arrival of a shipment.

NTDB

(USA) National Trade Data Bank: A data base used as the central collection point for US government generated export promotion information.





O



Ocean Bill of Lading

A receipt for the cargo and a contract for transportation issued by an ocean carrier. When issued in negotiable form, it is also an instrument of title.

Offer

1. A proposal that is made to a certain individual or legal entity to enter into a contract, that is definite in its terms, and that indicates the offerer's intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready to sell.

Office Of Export Licensing (OEL)

An agency under the Bureau of Industry and Security that administers export licenses.

Office Of Management And Budget

An executive office of the President which evaluates, formulates and coordinates management procedures and program objectives within and among federal departments an agencies. It also controls the administration of the federal budget.

Offer

1. A proposal that is made to a certain individual or legal entity to enter into a contract, that is definite in its terms, and that indicates the offerer's intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready to sell.

Official Development Assistance

Official Development Assistance Financial flows to developing countries and multilateral institutions provided by official government agencies.

Offshore Bank

A bank located in a country other than the bank which owns it. The owning bank is usually in a major country and the "offshore bank" in a smaller country.

Offshore Banking Center

A financial center where many of the financial institutions have little connection with that country's financial system, but have located themselves there to benefit from less regulation and/or lower taxes.

Old-To-Market

(USA) This is a term used by the International Trade Administration to define larger scale firms who are committed and experienced in export trade and have export sales often in excess of 15% .

On Board

Notation on a bill of lading indicating that the goods have been loaded on board a named ship.

On Deck Bill Of Lading

An ocean bill of lading containing the notation that the goods have been loaded on the deck of the vessel.

Open Account

Credit extended that is not supported by a note, mortgage, or other formal written evidence of indebtedness.

Open Conference

A shipping conference in which there are no restrictions upon membership other than ability and willingness to serve the trade and abide by the rules of the conference.

Open Economy

An economy free of trade restrictions.

Open-End Contract

An agreement by which the buyer may purchase an unspecified amount of goods from a seller over a certain period of time without changes in the price or the contract terms.

Operator of Foreign Trade Zone

(USA) A corporation that operates a foreign trade zone under the terms of an agreement with a foreign trade zone grantee.

Order

1. A request to deliver, sell, receive or purchase goods or services.
2. An instruction, command or direction authoritatively given.
3. A designation of the person to whom a bill of exchange is to be paid, or delivery of goods made, or a bill of lading consigned (A key word which makes a document negotiable.)
4. A rank, class or division of men.

Order Bill

A bill of lading that states that goods are consigned "to the order" of the person named, or simply "to order" (of no one in particular.) Such a bill of lading is a negotiable document.

Order Notify

A bill of lading which is negotiable because it is consigned to "order" with no entity named; but it does have a named party indicated to whom the carrier is expected to send a notice of arrival.

Outright

Free from reserve or restraint; direct; positive; downright; altogether; entirely; openly.

Over the Counter

Securities trading which takes place outside the normal Security Exchanges.

Overnight

The period in which settlement is required on a transaction such as a currency trade or a swap - on the next business day after the transaction.

Term

Definition





Packing List

A document listing the merchandise in a particular shipment indicating the kind and quantity in each package.

Pallet

A platform with or without sides, on which a number of packages or pieces may be loaded to facilitate handling. Usually the pallet is constructed so that it has space underneath it to permit lifting by mechanical equipment.

Pallet Loader

A device employing a vertical lift platform for the mechanical loading or unloading of pallets of freight at plane side.

Pallet Transporter

A vehicle for the movement of loaded pallets from one place to another.

Palletizing

The loading and securing of a number of sacks, bags, boxes or drums on a pallet base.

Par

Equal. An equality between the face value of a bill of exchange, share of stock etc., and its actual market value. If it can be sold for more, it is "above par;" if for less, it is "below par."

Par Exchange Rate

The free market price of one country's money in terms of the currency of another.

Par Of Exchange

The precise equivalency of a given sum of money of one country with the like sum of money of another country into which it is to be exchanged.

Par Value

1.The official fixed exchange rate between two currencies or between a currency and a specific weight of gold.
2. "Par Value" of a currency is its official rate of exchange.
3. "Par Value" of a share of stock is the value declared on its face.
4. As to a mortgage or a trust deed, it is the balance owing, without discount.

Parent Bank

A bank in one country that has a subsidiary in another country.

Parity

1. Equality in amount or value.
2. Equivalence of prices of goods or services in different markets
3. The relationship between two currencies such that they are exchangeable for each other at par or at the official rate of exchange.
4. Equivalence of prices of farm products (or farm income) to those existing at a former time, or to the general cost of living.

Parol Contract

A contract that is oral only as distinguished from one that is written.

Particular Average

A partial loss of cargo or hull which falls entirely upon the interest concerned. See also "General Average"

Partnership

An unincorporated business owned and operated by two or more persons, who, according to the agreement of the partnership, share the profits and the losses, and the responsibilities, and have general or limited liability. (At least one partner must have unlimited liability)

Patent

A grant by law of a privilege, property, or authority, to one or more individuals - including the grant to an inventor of the right to exclude others from making, using or selling the invention for a term of years.

Payable In Exchange

A negotiable instrument conspicuously marked on its face "Exchange" and naming a payee, is considered to be negotiable and payable to the order or assigns of the designated payee.

Payee

1. The person or organization to whose order a check or draft or note is made payable.
2. One to whom money is paid or is to be paid.

Payer

(Or Payor.) One who pays or is to pay, particularly the person who is to make payment of a check, bill, note, or account.

Penalties

1. Punishment, corporeal or pecuniary, or civil or criminal, although its meaning is generally confined to pecuniary punishment for doing an act that is prohibited or failing to do one which is required.
2. The sum of money which the obligor of a bond undertakes to pay in the event of his failure to perform his obligations under the conditions of the bond.

Performance

The proper fulfillment of a contract or obligation according to its terms.

Peril Point

An estimated limit beyond which a reduction in tariff protection would cause material injury to a domestic industry.

Perishable Freight

Goods subject to decay or deterioration during shipment.

Petrodollars

Hard currency, principally U.S. Dollars, earned by developing nations production and sale of petroleum.

Phytosanitary Inspections

A certificate issued by the agency of a national government indicating that an export shipment has been inspected and is free from harmful pests and plant diseases.

Pickup and Delivery Service

An optional additional service for the transport of shipments from shipper's door to originating carrier's terminal and from the terminal of destination to receiver's door, offered by some airlines, railroads and sometimes by other shipping modes. With some transportation services such as the postal and small package express services, it is a standard service rather than optional.

Pickup Order

An order to a carrier to pick up freight at a location.

Pier-to-Pier

Shipment of cargo with carrier responsibility from origin pier to discharge pier.

Piggyback

The transportation of truck trailers and containers on specially equipped railroad flat-cars.

Pilferage

Taking of property by stealth or clandestine theft, usually in small quantities.

Pilot

1. A person who flies an airplane.
2. A person whose occupation is to guide ships, particularly along a coast, or into and out of a harbor.

Plimsoll Mark

The horizontal line on the outside of a ship which represents the depth to which a vessel may be safely loaded.

Point of Origin

1. The location in which a good is manufactured or produced.
2. The location at which a shipment is received by a transportation line from the shipper.

Port

1. A place intended for loading and unloading the cargo or passengers of vessels - it may be within a natural harbor on a coast, or on a river, or within sheltered water produced by artificial jetties.
2. A place where customs officers are stationed for the collection of duties and the control of imports and exports.

Port Charge

A charge made for various services performed at ports.

Port of Discharge

The port at which a shipment is off loaded by a transportation line.

Port of Entry

A place designated by law at which Customs is stationed and carriers from foreign ports, foreign goods and persons are permitted to arrive.

Port of Export

A place where Customs is stationed to control departures of carriers, passengers, and goods to foreign countries.

Port-of-Origin Air Cargo Clearance

(USA) U.S. Customs clearance at foreign airports to facilitate the procedures before arrival in the U.S.

Portfolio Investment

In investment, the collective term for all the securities held by one person or institution.

Post-Shipment Verifications

(USA) An inspection or other action to determine that an exported strategic commodity is being used in the places and for the purposes for which its export was licensed.

Postdated Check

A check delivered prior to its date, generally payable on or after the day of its date.

Preference

1.A creditor's right to be paid before other creditors of the same debtor.
2. A trade preference is the granting of a preferred status to some or all of the goods of a preferred country, such as lower rates of duty or admissibility of goods in quantities over and above those normally permitted.

Preferential Tariff

A tariff which imposes lower rates of duty on goods imported from some countries.

Preferred Country

A country which has lower rates of duty imposed on its goods or is given other preferential trade treatment by another country.

Premium

1. A bounty or bonus above a regular price, paid as an incentive to do something.
2. The price of insurance protection for a specified risk for a specified period of time.Comment: Meaning numbered 1 above indicates that one meaning of "Premium" is: Something in addition to the regular price. In meaning numbered 2 "Premium" is the price itself.
3. A "give-away" - a reward or prize.

Prepaid

1. A notation on a shipping document indicating that shipping charges have already been paid by the shipper to the carrier, or it is an expression of the intention that payment is to be made by the shipper.
2. An expense paid before it is currently due.
3. A service or good paid for before it is delivered.

Prepaid Charges

In transportation, this term may mean that all charges, including freight, are to be paid by the shipper. Or, it may mean that only those charges designated as "prepaid" are to be paid by the shipper with other charges to be collected from the receiver. Which charges are which are generally decided by prior agreement.

Price Support

Subsidy or financial aid offered to specific growers, producers, or distributors, in accordance with governmental regulations to keep market prices from dropping below a certain minimum level.

Priority Air Freight

Reserved air freight or air express service wherein certain shipments by special arrangement, at extra cost, have a priority after mail and the small package services.

Private Corporation

A business corporation with shares that are not traded among the general public.

Procurement

The act of obtaining; attainment; acquisition; purchasing; buying.

Product Groups

Classification of products into groups for various purposes: statistics, export control, import quotas etc.

Productivity

A measurement of the efficiency of production.


Promissory Note

A written pledge to pay

Proof of Delivery

Evidence that one party has turned over something (cargo) to another. Commonly, in transportation, a signed, dated acknowledgement of receipt.

Proprietor

A person who has an exclusive right or interest in property or in a business (the owner.)

Proprietorship

A business, usually unincorporated, owned and controlled by one person (sole proprietorship.)

Protectionism

The deliberate use or encouragement of restrictions on imports to enable relatively inefficient domestic producers to compete successfully with foreign producers, or to protect and preserve those industries and producers considered of critical national interest.

Protective Service

Some airlines offer a protective service where shippers can arrange to have their shipments under carrier surveillance at each stage of transit.

Protective Tariff

A duty or tax on imported products to make them more expensive in comparison to domestic products.

Protest

1. (USA) The procedural means by which an importer, consignee, or other designated party may challenge a customs decision.
2. An action required to be taken in some countries in order to protect one's rights to seek legal remedies when a collection is dishonored.

Public Corporation

1. A business corporation with shares traded among the general public, such as through a stock exchange.
2. Also, an instrumentality of the state, founded and owned by the public interest, supported by public funds, and governed by those deriving their authority from the state.

Published Rate

1. The freight charges for a particular class and quantity of cargo as published in a carrier's tariff.
2. The service charges of many kinds of public utilities (usually government regulated enterprises) which are published in tariffs for public information.

Purchase Order

A purchaser's written offer to a supplier formally stating all terms and conditions of a proposed transaction.





Quantitative Restrictions

Explicit limits, or quotas, on the physical amounts of particular commodities that can be imported or exported during a specified time period, usually measured by volume but sometimes by value. The quota may be applied on a selective basis, with varying limits set according to the country of origin or destination, or on a quantitative global basis that only specifies the total limit and thus tends to benefit more efficient suppliers.

Quarantine

1. The term during which an arriving ship or airplane, including its passengers, crew and cargo, suspected of carrying a contagious disease, is held in isolation to prevent the possible spread of the disease.
2. The place in which a person or carrier under quarantine is held.

Quay

A structure built for the purpose of mooring a vessel; also called a pier.

Queue

A line of people, vehicles etc., especially a waiting line as before a ticket window or a toll booth.

Quid Pro Quo

1. A mutual consideration; securing an advantage or receiving a concession in return for a similar favor.
2. A mutual consideration which passes between the parties to a contract, and which renders it valid and binding.

Quota

A limitation on the quantity of goods that may be imported into a country from all countries or from specific countries during a set period of time. Export quotas have similar parameters.

Quota System

(USA) A part of the U.S. Customs' Service Automated Commercial System, which controls quota levels (quantities authorized) and quantities entered against those levels.

Rail Waybill

A document used to control the transportation of a shipment of goods via rail. It is similar in content to an inland bill of lading, with freight and other charges, and routing.

Rate Of Exchange

The price at which the money of one country can be exchanged for the money of another country.

Real Rights

Rights in real estate or in items attached to real estate.

Realignment of Currencies

Simultaneous and mutually coordinated revaluation and devaluation of the currencies of several countries.

Receipt

1. Any written acknowledgment of value received. It is a mere admission of a fact without containing any affirmative obligation.
2. Receipt of goods means taking possession of goods.

Received For Shipment Bill Of Lading

A bill of lading which confirms the receipt of goods by the carrier for transportation on a particular vessel, but not their actual loading on board the vessel nor their actual shipment.

Receiving Papers

In transportation, paperwork that accompanies a shipment when it is brought to a carrier.

Reciprocal Trade Agreement

An international agreement between two or more countries to establish mutual trade concessions that are expected to be of equal value.

Reciprocity

The process by which governments extend similar concessions to each other.

Reconsignment

In transportation, a change in the name of the consignee; a change in the place of delivery; or relinquishment of the shipment by the carrier at the point of origin.

Recourse


Term describing a type of loan. If a loan is with recourse, the lender has a claim against the parent company in case of default

Redeliver

1. To yield and deliver back a thing.
2. (USA) In U.S. Customs, it is a demand by customs to return to Custom's custody goods for reexamination, detention, re-export or destruction.

Reefer Container

A controlled temperature shipping container (usually refrigerated with a self-contained refrigeration unit).

Reexport

The export of imported goods without appreciable added value.

Refund

1. To repay or restore. To return money in restitution or repayment. To return overpaid charges
2. That which is refunded. The amount returned.
3. To fund again or renew; specifically to borrow in order to pay off an existing loan with the proceeds.

Relay

In marine transportation, a procedure in which a shipment is shipped to an intermediate port and transferred to another vessel for delivery to the ultimate destination port.

Remittance

Funds forwarded from one person to another.

Replevin

A legal action for the recovery of property brought by the owner or party entitled to repossess the property against a party who has wrongfully kept it.

Request For Quotation

A negotiating approach whereby the buyer asks for a price quotation from a potential seller for specific goods.

Rescind

To abrogate, annul, avoid, cancel a contract; declare it void in its inception and put an end to it as though it never were.

Reserved Freight Space

A service by some carriers (airlines and ship lines) enabling shippers to reserve freight space on designated voyages.

Restricted Letter of Credit

A letter of credit which restricts negotiation to the bank the issuing bank has nominated in the credit.

Restrictive Business Practices

Actions in the private sector designed to restrict competition in order to keep prices relatively high.

Retaliation

1. the return of evil for evil.
2. Action taken by a country to restrain its imports from a country that has increased a tariff or imposed other measures that adversely affect its exports.

Revaluation

1. The restoration of the value of a nation's currency that had once been devalued in terms of the currency of another nation.
2. The restoration of purchasing power to an inflated currency.
3. Restoration of the value of a currency
4. Currencies of countries undergoing inflation are more often "devalued," meaning that either by market forces or by declaration of the issuing government, a greater number of units of its currency are required to purchase other currencies. When the reverse occurs, usually in an attempt to restore the purchasing power of an inflated currency, this is called "revaluation."

Reverse Preferences

Tariff advantages offered by developing countries to imports from certain developed countries that had granted them trade preferences in the past .(This practice has generally ceased) .

Revolving Letter of Credit

A letter of credit which when drawn upon is automatically restored to its full amount, periodically, or after a particular event prescribed in the credit.

Risk Position

The condition of an asset or liability which is exposed to fluctuations in value (on the international markets this would include changes in exchange rates or interest rates as well as changes in market value)

Road Waybill

Transport document is used to control shipments of goods via truck. It contains the same information as an inland bill of lading, with freight and other charges, and routing.

Roll on, Roll off

A category of ships designed to load and discharge cargo which rolls on wheels, and as the name says is driven onto the decks of the vessel and driven off.

Rollover Credit

Short term notes or loans which may be extended after the initial due date.

Route

1. A customary or regular line of passage or travel.
2. The course or direction that a particular shipment moves.
3. To direct the routing of a shipment (and whose services shall be employed).

Royalty

Compensation for the use of property, usually copyrighted or patented material or natural resources, based on an agreed percentage of the income arising from its use or an amount per unit produced.












Sales Agreement


A written document (a contract) by which a seller agrees to convey property to a buyer for a stipulated price under specified conditions.

Sales Tax


A tax placed by a state or municipality on items at the time of their sale, usually a percentage of the purchase price.

Salvage


1. Compensation paid for the rescue of a ship, its cargo or passengers from the perils of the sea;
2. or, the act of saving a ship or its cargo from possible loss;
3. or, property saved from a wreck or fire.

Samurai Bond


Bond issued on the Japanese market in yen for non-Japanese borrowers.

Sanction


1. A punitive act taken by one or more nations against another nation which has violated a treaty or international law.
2. A proviso in a law to secure its enforcement by imposing a penalty for its violation or offering a reward for its observance.

Seal


A mark or sign that is used to attest the execution of an instrument, contract, or other document.

Seaworthiness


The fitness or safety of a vessel for its intended use.

Secured


Guaranteed as to payment by the pledge of something valuable as security or collateral.

Security


1. Property pledged as collateral to a debt.
2. Protection; assurance; indemnification.
3. A document that indicates evidence of indebtedness or of equity interest - including notes, bonds, debentures, stocks, certificate of interest, etc. which may be traded on an exchange.

Seizure


The act of taking possession of property.

Seller's Market


Exists when goods are in short supply compared to the demand, at which point the economic forces of business tend to cause goods to be priced at the vendor's estimate of value.

Selling Rate


Rate at which a bank is willing to sell foreign exchange or to lend money.

Service A Loan


To pay interest due on a loan.

Settlement Date


The date on which payment for a transaction must be made.

Shared Foreign Sales Corporation


(USA) A foreign sales corporation formed to make export sales and earn favorable tax treatment thereon. A Shared Foreign Sales Corporation requires more than one and less than 25 unrelated exporters.

Ship's Manifest


A list of the individual shipments constituting the ship's cargo.

Ship's Papers


The documents a ship must carry to meet the safety, health, immigration, commercial and customs requirements of a port of call or of international law.

Ship's Stores


The food, medical supplies, spare parts and other provisions carried for the day-to-day running of a vessel.

Shipment


1. Delivery of cargo to a carrier for transportation.
2. The transportation of goods.
3. The property which is the subject of transportation.

Shipped On Deck


Goods shipped on the deck of a vessel. The bill of lading covering goods shipped on deck must be annotated to that effect.

Shipper


1. One who transports goods for a charge. In normal usage, such a person would be called a carrier, but carriers are also called "shippers"
2. One who tenders goods to a carrier for transportation.
3. The sender of goods to be transported as distinct from the receiver or the consignee.

Shipping Order


Instructions from a shipper to a carrier for the transportation of goods.

Short Form Bill of Lading


A bill of lading on which the detailed conditions of transportation are not listed in full, but instead there is a statement which declares them to be incorporated by reference, and states the place where they are available.

Short of Exchange


The position of a foreign exchange trader who has sold more foreign currency of a particular country than he has in possession to cover sales.

Short Weight


Any shipment found to weigh less than the documents indicate, be it a bill of lading, a dock receipt, a warehouse receipt, an inspection certificate, or a weight tally.

Shortage


A deficiency in quantity shipped, stored, or received.

Sling


A contrivance into which freight is placed to be hoisted into or out of a ship.

Slip


A vessel's berth between two piers.

Small Package Service


A specialized service to guarantee the delivery of small parcels within specified express time limits.

Smuggling


Moving goods across a customs frontier in a clandestine manner, evading customs control. It may be goods on which duty and taxes have been avoided, or it may be goods which are not permitted to be imported or exported.

Soft Currency


The currency of a country that is not readily accepted by other countries and is not readily converted into currencies which are readily acceptable (hard currencies).

Soft Loan


A loan made with easy or generous terms such as low or no interest and long payback.

Sovereign Credit


A direct borrowing or a borrowing guaranteed by the government of a sovereign state.

Sovereign Risk


1. The risk to a lender that the government of a sovereign state may default on its financial obligations.
2. Also, the risk to a lender that unfavorable changes in the borrowers overall currency exchange position might imperil the payment of a loan.
3. Also the risk to a lender that unfavorable political events in the country of the debtor might imperil repayment.

Special Rates


Rates that apply to cargo traffic under special conditions and usually to and from a limited number of points.

Specific Commodity Rate


With reference to freight rates, it is a favorable freight rate usually applicable to certain classes of commodities which move in large volume shipments.

Specific Rate of Duty


A specified amount of duty per unit of weight or other quantity.

Spot Cash


Immediate cash payment on a transaction.

Spot Exchange


The purchase and sale of foreign exchange for delivery and payment at the time of the transaction.

Spot Exchange Rate


The price of one currency expressed in terms of another currency at a given moment in time.

Spot Market


The market for a commodity or foreign exchange available for immediate delivery.

Spot Operations


Foreign exchange dealings and commodity trading in which settlement of the mutual delivery and payment commitment is made immediately.

Spot Price


The selling of goods or commodities for immediate delivery.

Spot Rate


The rate (price per unit) for purchase or sale of a commodity or foreign exchange for immediate delivery.

Spotting


The placing (or parking) of a container in the place where required, to be loaded or unloaded, or held for further action.

Standby Commitment


A bank commitment to loan money up to a specified amount for a specific period, to be used only in a certain contingency.

Standby Letter of Credit


A letter of credit which a bank issues on behalf of its customer to serve as a guarantee to the beneficiary of the letter of credit that the bank's customer will perform a specified contract with the beneficiary. If the customer defaults, the beneficiary may draw funds against the letter of credit as penalties or as payments, whichever the terms of the credit provide.

Steamship (or steamer)


Vessels powered by steam engines. However, the term is often used to describe powered vessels in general, and companies who operate ocean going cargo vessels are often called "steamship companies" despite the fact that the use of steam power for ocean going vessels is obsolete, the modern standard being diesel engines fueled by oil.

Steamship Indemnity


A contract of indemnity issued by a bank to an ocean carrier indemnifying the carrier for any loss incurred for release of goods without surrender of the original bill of lading properly endorsed.

Stevedore


1. A person having charge of the loading and unloading of ships in port.
2. Sometimes used to indicate those laborers who actually perform the physical work of loading and unloading a ship (usually called longshoremen.)

Storage


The keeping of goods in a warehouse or other repository.

Storage Demurrage


A storage charge made on property remaining on the dock or terminal past the permitted "free-time period".

Storage in Transit


The stopping of freight traffic at a point located between the point of origin and destination to be stored and reforwarded at a later date.

Store-Door Delivery


The movement of goods to the consignee's place of business, customarily applied to movement by truck.

Stowage


The arranging and packing of cargo in a vessel for shipment.

Stowage Instructions


Specific instructions given by the shipper or his agent concerning the way in which cargo is to be handled or stowed. It may refer to the location in the hold, whether a particular side is to be on top, the kind of other cargo it may not be near, the number of pieces which may be stacked, what implements may not be used to move it, such as "use no hooks" on bales, etc.

Stowplan


A diagram showing where cargo has been placed in a vessel (also known as a stowage plan.)

Straight Bill of Lading


A nonnegotiable bill of lading that designates a consignee who is to receive the goods and obligates the carrier to deliver the goods to that consignee only.

Strike Clause


An insurance clause which may be included in policies to cover against losses as a result of strikes, riots and civil commotions.

Stripping


The unloading of cargo from a container or truck; (also called devanning.)

Stuffing


The loading of cargo into a container.

Subsidiary


Any organization more than 50 percent of whose voting stock is owned by another firm.

Subsidy


A grant paid by a government to producers or exporters of goods to strengthen their competitive position.

Supply Access


Assurances sought by importing countries that they will, in the future, have fair and equitable access at reasonable prices to supplies of raw materials and other essential imports.

Surcharge

A charge or tax above the usual or customary charge.

Surety

A bond or other security that protects a person, corporation, or other legal entity in case of another's default in the payment of a given obligation, improper performance of a given contract, malfeasance of office, etc. The one who undertakes to be the surety is primarily liable in case of the default.

Survey

1. To examine and report on the condition of a vessel for purposes of establishing seaworthiness, value, or dimensions.
2. To examine and report on the condition of goods or a structure.
3. To examine and report on the condition of goods or property after a casualty to determine the extent of the loss and the probable cause. (Often to support an insurance claim, - although there may be a claim without insurance being involved.)
4. The reports described above, generally conducted by an independent third party, called "a surveyor."

Sushi Bond


Eurodollar bonds issued by Japanese corporations on the Japanese market for Japanese investors.

Swap (transactions)

A kind of financial transaction which has many variations, usually highly complex. They generally involve a simultaneous exchange of assets (the swap) by counterparties for other different assets of comparable value. The assets may be commodities or they may be financial instruments involving interest rates, cash flows, foreign exchange, debts or equities. In addition to financial profits, the swaps have many purposes such as limiting risks, overcoming restrictions in certain markets, or balancing portfolios.

Switch Arrangements

A form of countertrade in which the seller sells on credit and then transfers the credit to a third party at a discount. Or, in another type of switch, the rights to purchase certain goods, resulting from a countertrade operation, are sold to a third party at a discount.





Tare Weight

The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. (In other words, the weight of the packing.)

Tariff

1. A comprehensive list or "schedule" of merchandise with applicable duty rates to be paid or charged for each listed article; together with governing rules and regulations.(A "customs" Tariff.)
2. A schedule of rates and charges applied by a business, especially a common carrier, together with a description of the services offered and the rules and regulations applicable.

Tariff Anomaly

In a customs tariff, a tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product.

Tariff Escalation

In a customs tariff, a situation in which duties on raw materials are nonexistent or very low; duties on semi-processed goods are moderate; and duties on manufactured goods are relatively high.

Tariff Rate Quotas

(Customs) Application of a higher duty rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate.

Tariff Schedule

(Customs) A comprehensive list of the goods which may be imported into a country, and the import duties applicable to each product.

Tariff War

(Customs) When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner.

Tax Haven

A nation offering low tax rates and other incentives for individuals and businesses of other countries to locate there.

Temporary Importation (Admission Temporaire)

A customs procedure under which certain goods can be brought into a customs territory temporarily, conditionally relieved from the payment of import duties and taxes; such goods must be imported for a permitted purpose and must be intended for exportation within the permitted period.

Tender

1. A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers to and from ship to shore.
2. An offer of money. An offer to supply something. An offer to present something.
3. To satisfy a claim, an unconditional offer to perform coupled with a manifest ability to carry out the offer.
4. A car connected behind a steam railroad locomotive to carry coal and water. (Almost obsolete).

Tenor

The term fixed for the payment of a draft or debt.

Terminal

An facility which is used by a rail, ship, air, or truck line as a place for receiving and delivering cargo; loading; unloading; transferring; temporarily storing; recoopering; and similarly handling freight; and repairing and servicing equipment..

Terminal Charge

A charge made for services performed at transportation terminals.

Terms of Trade

The ratio of the index of export prices to the index of import prices. (Note the difference from "Trade Terms"

Third World Countries

Developing countries, especially in Asia, Africa, and Latin America.

Through Bill of Lading

A single bill of lading covering receipt of cargo at a point of origin for delivery to an ultimate consignee, usually involving multiple carriers and multiple modes of transport.

Through Rate

A shipping rate applicable to transportation from point of origin to destination where multiple carriers and multiple modes of transport may be involved.

Tied Loan

A loan made by a government that requires a foreign borrower to spend the proceeds in the lender's country.

To Order

A term on a financial instrument or title document indicating that it is negotiable and transferable.

Tracer

A request upon a transportation line to trace a shipment for the purpose of locating its whereabouts, expediting its movement or establishing delivery.

Tracking

A carrier's system of recording movements of shipments from origin to destination.

Trade Acceptance

A draft drawn by the seller of goods upon the buyer who agrees to pay by signing "accepted" on the draft.

Trade Deficit

A nation's excess of imports over exports over a period of time.

Trade Name

The name under which an organization conducts business, or by which the business or its goods and services are identified.

Trade Promotion

Encouragement of the progress, growth, or acceptance of trade. (Note: Some would define it solely as the encouragement of exports.)`

Trade Surplus

A nation's excess of exports over imports over a period of time.

Trade Terms

The setting of responsibilities of the buyer and seller in a sale including sale price, the payment of costs such as shipping, insurance, and customs; the arranging of the performance of these activities; and the determination of when title passes. (Note the difference from "Terms of Trade")

Trailer

A vehicle without motor power designed to be drawn by another vehicle.

Tramp Line

A transportation line operating tramp steamers in waterborne commerce.

Tramp Steamer

A vessel which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained and charges a negotiated amount of freight. Usually they transport breakbulk or bulk cargo.

Trans-Ship

1. To transfer goods from one transportation line to another, or from one ship to another, or from one airline to another in order to complete a delivery .
2. To ship to one country, and then to re-export to another. (Sometimes the second exporting country may be incorrectly represented as the country of origin.)

Transaction Value

(USA) The price actually paid or payable for merchandise imported.

Transfer Of Technology

The movement of modern or scientific methods of production or distribution from one enterprise or country to another.

Transfers (mail, wire, cable)

A transfer is the remittance of a sum of money to a party in another place. This may be accomplished by mailing cash or drafts or using the services of a commercial bank or a wire transfer company for a fee.

Transit Zone

An area in a port of entry in a coastal country that is established as a storage and distribution center for the convenience of a neighboring country which lacks adequate port facilities or access to the sea.

Transmittal Letter

In international commerce, a letter from the shipper or their agent transmitting documents relative to a shipment. Usually there will be included a list of the documents enclosed and details covering the transportation of the shipment such as the name of the carrier, date of departure etc..

Transparency

The extent to which laws, regulations, agreements, and practices affecting international trade are open, clear, measurable, and verifiable.

Transport Documents

All types of documents evidencing acceptance, receipt and shipment of goods.

Transportation and Exportation Entry

(USA) Customs entry used when merchandise arrives in the U.S. and is moved in bond to another U.S. port for re-export to a foreign country.

Traveler

One who passes from place to place, whether for pleasure, instruction, business or health.

Traveler's Checks

A check designed for business travelers and tourists, issued by a financial institution of sufficient importance that it will be readily accepted or cashed by businesses and banks. For safety it is often designed to be countersigned twice by the traveler in order to be valid, once at issuance and once upon being cashed.

Triangular Trade

Trade between three countries which creates a more favorable flow of trade for each than would exist between only two of them dealing directly with each other.

Tropical Products

Agricultural goods grown in tropical zones ...coffee, tea, spices, bananas, and tropical hardwoods etc,

Trust Receipt

A written declaration by a customer to a bank that ownership in goods released by the bank is retained by the bank, and that the client has received the goods in trust only. Such a trust receipt may be is given by the customer to the bank to induce the bank to issue a letter of indemnity to a carrier to release a shipment.

Turnkey

A term for a method of construction whereby the contractor assumes total responsibility from design through completion of the product and release to the client in a stage so complete that the buyer need only to turn the key to open the door and walk into a facility that is ready to operate.

Turnkey Contract

An agreement under which a contractor agrees to complete a product so that it is ready for use when delivered to the other contracting party.

Two-tier Market

An exchange rate regime employed in some countries with managed currency exchange rates where the more favorable rates are maintained for selected activities..

Tying Arrangement

A condition that a seller imposes on a buyer, requiring that if the buyer desires to purchase one product (tying product), the buyer must also agree to purchase another product (tied product), which the buyer may or may not want. The laws of some countries prohibit certain tying arrangements, for example in the U.S. the Clayton and the Sherman anti-trust Acts.





Ultimate Consignee

The person who is the true party in interest, receiving goods for the designated end use.

UN/Edifact

United Nations Electronic Data Interchange for Administration, Commerce and Transport: A United Nations approved Electronic Data Interchange standard.

Unconfirmed Letter Of Credit

A type of letter of credit bearing the obligation of the issuing bank only, not of any other bank.

Unconscionable

Unreasonable; outrageous. Courts in many countries may refuse to enforce contracts which they deem to be unconscionable.

Underdeveloped Country

A nation which, comparative to others, lacks industrialization, infrastructure, developed agriculture, and developed natural resources, and suffers from a low per capita income as a result.

Unfair Trade Practice

Unusual government support to firms, ranging from export subsidies to anti- competitive practices by the firms themselves, such as dumping, boycotts or discriminatory shipping arrangements, that result in competitive advantages in international trade for the benefitting firms.

Uniform Commercial Code

(USA) A law governing commercial transactions (sales of goods, commercial paper, bank deposits and collections, letter of credits, bulk transfers, warehouse receipts, bills of lading, investment securities, and secured transactions) adopted by all states in the US except Louisiana.

Unit Load

Various cargo carrying devices, or sizes of containers, which carry several smaller shipping packages, including the banding together of a number of individual packages on a pallet to create a single unit.

Unit Load Device

Term commonly used when referring to containers and pallets and similar devices which consolidate packages of freight for mechanical handling.

United Nations Conference On Trade And Development

A part of the UN General Assembly which promotes international trade and seeks to increase trade between developing countries and countries with different social and economic systems.

United Nations Industrial Development Organization

Established in 1967, under the UN Secretariat, UNIDO serves as a specialized agency to foster industrial development in lesser developed countries through offering technical assistance in the form of expert services, supplying equipment and/or training.

United States And Foreign Commercial Service

United States And Foreign Commercial Service An agency of the U.S. Department of Commerce that helps U.S. firms be more competitive in the global marketplace.

United States Code (USC)

A set of volumes containing the official compilation of U.S. law. are also local offices of the U.S. Government Printing Office in major U.S. cities.

United States Customs Service (USCS)

U.S. governmental agency whose primary duties include the assessment and collection of all duties, taxes and fees on imported merchandise, and the enforcement of customs and related laws and treaties.

United States Department Of Agriculture

An executive department which serves as the principal adviser to the president on agricultural policy. which works to improve and maintain farm income, implement nutrition programs and develop and expand markets abroad for U.S. agricultural products. It is also charged with inspecting and grading food products for safe consumption.

United States Department Of Commerce (DOC)

An executive department which encourages and promotes the United States' economic growth, international trade, and technological advancement.

United States Department Of Defense

A civilian executive department providing the military forces needed to deter war and protect the security of the U.S.

United States Department Of Energy (DOE)

An executive department created in 1977 to consolidate all major Federal energy functions into one department. The principal programmatic missions are energy programs, weapons and waste clean-up programs, and science and technology programs.

United States Department Of Labor (DOL)

An executive department which promotes and develops the welfare of U.S. wage earners, improves working conditions, and advances opportunities for profitable employment. The DOL keeps track of changes in employment, prices, and other national economic measures.

United States Department Of State

An executive department which directs U.S. foreign relations and negotiates treaties and agreements with foreign nations. Activities of the State Department are coordinated with foreign activities of other U.S. departments and agencies.

United States Department Of The Interior (DOI)

An executive department that has responsibility for most U.S. federal government owned public lands and natural resources; the principal U.S. conservation agency. The office of Territorial and International Affairs oversees activities pertaining to U.S. territorial lands and the Freely Associated States and coordinates the international affairs of the Department.

United States Department Of The Treasury

An executive department which performs four basic functions: formulating and recommending economic, financial, tax and fiscal policies; serving as financial agent for the U.S. government; enforcing the law; and, manufacturing coins and currency.

United States Department Of Transportation (DOT)

An executive department of the U.S. government which is responsible for the development of national transportation policies.

United States Information Agency (USIA)

Responsible for the U.S. government overseas information and cultural programs, including Voice of America. Conducts a wide variety of communication activities-academic and cultural exchanges to press, radio, television and library programs abroad in order to strengthen foreign understanding of American society, obtain greater support of U.S. policies, and increase understanding between the U.S. and other countries.

United States International Trade Commission

An independent fact-finding agency of the U.S. government that studies the effects of tariffs and other restraints to trade on the U.S. economy. It conducts public hearings to assist in determining whether particular U.S. industries are injured or threatened with injury by dumping, export subsidies in other countries, or rapidly rising imports.

United States Price

(USA) In the context of investigations regarding dumping, this term refers to the price at which goods are sold to the U.S. compared to the sale price in the home market or in 3rd countries. The comparisons are used in the process of determining whether the imported merchandise is sold to the United States at less than fair value.

United States Trade And Development Agency

The U.S. Trade and Development Agency assists in the creation of jobs for Americans by helping U.S. companies pursue overseas business opportunities. Through the funding of feasibility studies, orientation visits, specialized training grants, business workshops, and various forms of technical assistance, we help American businesses compete for infrastructure and industrial projects in middle-income and developing countries.

United States Trade Representative

A cabinet-level official with the rank of Ambassador who is the principal adviser to the President on international trade policy, and has responsibility for setting and administering overall trade policy. The U.S. Trade Representative is concerned with the expansion of U.S. exports.

United States Travel And Tourism Administration

An organization within the Department of Commerce which: stimulates demand internationally for travel to the United States, coordinates marketing projects and programs with U.S. and international travel interests, encourages and facilitates promotion in international travel markets by U.S. travel industry principals, works to increase the number of new-to-market travel businesses participating in the export market, generates cooperative marketing opportunities for private industry and regional and local governments, researches and provides timely and pertinent data, carries on training programs in international marketing for U.S. professionals, and works to remove government imposed travel barriers.

United States-Canada Free Trade Agreement

The provisions of the US/Canada Free Trade Agreement were adopted by the US with the enactment of the FTA Implementation Act of 1988. The FTA reduced tariffs on imported merchandise between Canada and the U.S. and opened up new areas of trade in investment. It was followed by the North American Free Trade Agreement (NAFTA) which also includes Mexico.

Unitization

The practice or technique of consolidating many small pieces of freight into a single unit for easier handling.

Universal Copyright Convention

An international agreement that affords copyright protection to literary and artistic works in all countries that voluntarily agree to be bound by the Convention terms.

Unloading

1. The physical removal of cargo from a vessel, a truck, an airplane, a railroad car.
2. The physical removal of cargo from a container; also called devanning.

Unrestricted Letter Of Credit

A letter of credit which may be negotiated through any bank of the beneficiary's choice.

Uruguay Round

The eighth round of multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT). The Uruguay Round (so named because meetings began in Punta de Este, Uruguay in 1987) concluded in December, 1993 after seven years of talks between 117 member nations. From these negotiations the World Trade Organization came into being.

Usance

The common period fixed for payment by usage, custom, or habit of dealings between the country where a bill of exchange is drawn and that where it is payable. It varies according to the countries involved.

Users Fee

(USA) Assessments collected by the U.S. Customs Service to help defray various costs to Customs involved in the handling of shipments.









Validity


1. Validity - Legal sufficiency. Mere regularity in the execution of documents may not be enough for "legal sufficiency."
2. The time period for which a letter of credit is valid.

Valuation


The act of ascertaining the worth of a thing. The estimated worth of a thing.

Valuation Charges


Transportation charges assessed shippers who declare for carriage a value of goods higher than the carriers' limits of liability. They may be in lieu of or in addition to regular freight charges.

Value Added


The amount by which the value of an article is increased at each stage of its production, exclusive of initial costs.

Value Added Tax


An indirect tax on consumption that is assessed on the increased value of goods at each discrete point in the chain of production and distribution, from the raw material stage to final consumption. The tax on processors or merchants is levied on the amount by which they increase the value of items they purchase and resell.

Vendor


A company or individual that sells goods or services. A merchant, a retail dealer; a supplier; one who buys to sell.

Vessel Ton


A unit of measurement of vessels which provides that 100 cubic feet of vessel volume equals one ton.

Visa


A stamp, seal or endorsement on a document validating it for a particular use such as on a passport admitting the holder to a country, or on a license issued by the government of an exporting country for the export to a specific importing country of a certain quantity of a quota controlled commodity subject to a voluntary export restriction or a voluntary restraint agreement.

Volume Rate

A freight rate assessed in connection with a specified volume of freight based upon the premise that it will be substantial in total over a period of time. It is generally a lower rate than normally assessed for smaller lots of cargo.

Voluntary Export Restriction

An understanding between trading partners in which the exporting nation, in order to reduce trade friction, agrees to limit exports of a particular good to the other partner.

Voluntary Restraint Agreements

Informal bilateral or multilateral arrangements through which the exporting nations voluntarily restrain certain exports, usually through export quotas, to avoid economic dislocation in an importing country and to avert the possible imposition of mandatory import restrictions by the importing country

W


War Clause


A marine insurance provision excluding the liability of an insurer if a loss is caused by war or hostile action. Bills of Lading and charter parties may contain a "War Clause" giving the vessel options to maintain it's safety in case of hostilities.

War Risk


The risk to a vessel, its cargo and passengers by aggressive actions of a hostile nation or group.

War Risk Insurance


Insurance covering loss or damage caused by war or other hostile actions. Usually a separate policy from a marine insurance policy, or a special attachment to it.

Warehouse Receipt


A document issued by a warehouse listing the goods or commodities deposited in the warehouse. It is a receipt for the commodities listed, and for which the warehouse is the bailee. Warehouse receipts may be either non-negotiable or negotiable.

Warehouse, U.S. Customs Bonded


(USA) A privately owned and operated warehouse which has posted bond and has been approved by U. S. Customs where goods remain until duty has been collected from the importer.

Warranty


A promise by a contracting party that the other party can rely on certain facts or representations as being true.

Warsaw Convention


An international multilateral treaty which set the conditions of international transportation by air.

Waybill


A document prepared by a transportation line at the point of shipment for use in the handling of the shipment showing the point of origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service and other services connected with the transport It is similar in point of information to a bill of lading..

Webb-Pomerene Act Of 1918


(USA) Federal legislation exempting certain exporters' associations from certain antitrust regulations.

Webb-Pomerene Association


(USA) Associations engaged in exporting that handle the products of similar producers for overseas sales. These associations have partial exemption from U.S. anti-trust laws but the associations may not engage in import, domestic or third country trade, or combine to export services.

Weight Break


The point at which the weight of a shipment is large enough to be assessed the lower freight rates which are applicable to larger shipments, as per the carrier's tariff.

Wharfage


A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

Without Reserve


A term applied to a sale by auction indicating that no price is reserved (there is no minimum price.)

World Bank


The International Bank for Reconstruction and Development (IBRD), commonly referred to as the World Bank, is an intergovernmental financial institution located in Washington, DC. Its objectives are to help raise productivity and incomes and reduce poverty in developing countries through the granting of loans.

World Bank Group


An integrated group of international institutions that provides financial and technical assistance to developing countries.

World Trade Clubs


Local or regional based organizations in the United States and around the world of importers, exporters, customs brokers, freight forwarders, attorneys, bankers, manufacturers and shippers.

World Trade Organization


The international organization which resulted from the Uruguay Round of GATT negotiations. It is intended to promote world trade and to settle disputes among member nations.

Zip Code

(USA) A numerical code, established by the U.S. Postal Service, used for the purpose of routing mail and to identify delivery zones. Some foreign countries have a similar system. Carriers often apply this code in the same manner in the handling of freight and the determination of freight charges.

Zone Status

(USA) Merchandise admitted to a U. S. Foreign Trade Zone may be given a special status which affects what may done with it. For example: when entered into the U. S. Customs territory it may be dutiable at rates and values applicable at that time; or it may be given a status which fixes the applicable rates and values at those in effect at the time when it was admitted to the zone; or it may have a status which denies entry to the U.S.A. altogether.

Zone User

(USA) A corporation, partnership or party that uses a U.S. foreign trade zone for storage, handling, processing, or manufacturing merchandise, whether foreign or domestic.



In transportation, advance arrangements must be made for certain kinds of cargo which require special handling: hazardous cargo, over weight, over sized, over normal quantity, time sensitive, shipped unpacked, live animals etc. Not every carrier can or will transport every kind of cargo.

Advanced Technology Products (ATP)

Products whose technology is from a recognized high technology field, represent leading edge technology in that field, and constitute a significant part of all items covered in the selected classification code.

Advice

1. A report from one party to another informing them of an occurrence with regard to some business transaction: a shipment, a collection, a manufacture etc.etc.
2. A notification by an advising bank on behalf of the issuing bank to a beneficiary informing them of the terms of a letter of credit,

Advised Credit

A letter of credit whose terms and conditions have been notified to the beneficiary by an advising bank on behalf of the issuing bank. The advising bank does not thereby commit itself to pay or guarantee the payment of the letter of credit.

Advising Bank

An 'advising bank' is a correspondent of a bank which issues a letter of credit, and, on behalf of the issuing bank, the advising bank notifies the beneficiary of the terms of the credit, without engagement on its part to pay or guarantee the credit.

Advisory Committee On Export Policy

A U.S. government interagency dispute resolution body that operates at the Assistant Secretary level.

Advisory Committee On Trade Policy And Negotiation

A U.S. government group appointed by the President to provide advice on matters of trade policy and related issues, including trade agreements.

Affiliate

A condition of being united, allied, associated, or attached. An affiliate company is one effectively controlled by another.

Affreightment Contract

A contract with a ship owner to hire all or part of a ship for transporting goods - may involve a charter.

Afloat

Refers to a shipment of cargo which is currently on board a vessel between ports

Aft

At or towards the stern of the ship or the tail of the aircraft.

After Date

A notation used on financial instruments (such as drafts or bills of exchange) to fix the maturity date as a fixed number of days past the date of drawing of the draft.

After Sight

A notation on a draft that indicates that payment is due a stated number of days after the draft has been presented to the drawee.

Agent

A person or legal entity authorized to act on behalf of another.

Agent Bank

1. A bank acting on behalf of another bank.
2. A bank acting for lenders and bondholders, similar to an indenture trustee.

Aggregated Shipments

Several shipments intended for one consignee from various shippers that are consolidated and treated as a single consignment.

Agreed Valuation

The value of a shipment that is agreed upon by both the shipper and the carrier to define the freight rate and/or the liability of the carrier.

Air Cargo

Property of any kind that is transported by aircraft (excluding passenger baggage and mail).

Air Express

Expedited air freight service.

Air Parcel Post

Parcels shipped through the mails to be transported by air.

Airwaybill

The shipping document used for the transportation of air freight: includes conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. It is generally similar to a straight non-negotiable bill of lading and is used for similar purposes.

Alienable

Ability to be transferred or conveyed.

All-Cargo Aircraft

Any aircraft that is used for the sole purpose of transporting cargo or mail.

Allowance

A deduction or discount from the price permitted by a seller.

Alternative Tariff

In transportation, a tariff with two or more rates for the same goods, to and from the same points, with the opportunity available to the shipper to use the lowest of the charges.

Amendment

An addition, deletion, or modification of a document.

Amidships

The area of a vessel midway between the front (the bow) and the rear (the stern). When the term applies to an airplane, it is midway between the nose and the tail.

Amortization

1. The provision to pay a debt over a period of time.
2. The gradual repayment of borrowings in a series of installments.
3. A transaction or security where the principal reduces over the life of the agreement.
4. The writing off or reduction in value of an intangible asset over time (c.f.depreciation)5. Allocation of the cost of an asset over its estimated useful life.

Antidumping Duties

Additional duties which are assessed on imported goods when those goods are sold to the importing country at a price that is less than "fair value", ("fair value" usually being defined as the price on the exporting country's domestic market or to third countries), and when those imported goods are found to cause or to threaten material injury to industry of the importing country.

Any Quantity

A cargo freight rate that applies to an article without regard to the weight or quantity shipped.

Applicant (also Account Party)

1. The party at whose request a bank issues a letter of credit.
2. A person who applies for something: a job, a passport, a visa, a license, a ticket etc. etc.

Appreciation

An increase in the value of something, - of goods, of currency, of shares of stock, etc,.

Approx. (Approximately)

Same as "about" and "circa"; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price.

Appurtenance

An accessory, adjunct, or appendage connected to a primary property and used in conjunction therewith.

Apron

1. Area of the airport where planes are parked. May be used for loading and unloading of aircraft.
2. Area along the waterside edges of a pier, not under cover, used for loading and unloading of vessels.

Arbitrage

A method of taking advantage of the fact that there may be different prices in different markets for identical goods such as gold, foreign exchange or commodities. Simultaneously, one buys in the lower price market and sells in the higher one.

As Is

Indicates goods for sale do not include a warranty, implied or expressed; the buyer takes the entire risk as to the quality or condition of the goods involved and must trust to his own inspection. In sum, the sale is "without recourse".

Assembly Service

A service under which a carrier or a forwarder or a warehouse combines multiple shipments from multiple shippers into one shipment for one receiver.

Assessment

1. The valuation, or determination as to value, of property.
2. The act of apportioning amounts to be paid.
3. An amount assessed or charged, for example: taxes or dues.

Assignment of Proceeds of a Letter Of Credit

If the bank agrees, the beneficiary assigns all or part of the proceeds to be paid to another party after the required documents have been presented.

At Sight

A notation on a draft which indicates that payment is due upon its presentation.

Athwartships

Across a vessel form side to side.

Automated Broker Interface (ABI)

(USA) A module of the U. S. Customs Automated Commercial System which provides a communications link for the transmission of entry and entry summary data on imported merchandise between ABI users and Customs.

Automated Commercial Environment (ACE)

(USA) A US Customs electronic data system, which provides support for enforcing trade and contraband laws, ensuring trade compliance, and providing service and information to the international trade community. When completed, it will cover the full gamut of Customs activities.

Automated Commercial System (ACS)

(USA) The comprehensive electronic data system of U. S. Customs for tracking, controlling, and processing commercial importations.

Automated Information Exchange System (AIES)

(USA) A module of the Automated Commercial System of U. S. Customs which provides an automated method of exchanging information between Field Import Specialists and National Import Specialists.

Automated Manifest System (AMS)

(USA) A module of the Automated Commercial System of U. S. Customs designed to control imported merchandise from the time a carrier's cargo manifest is electronically transmitted to U.S. Customs until the cargo is properly entered, released by customs and delivered.

Avoidance Of Contract

The legal cancellation of a contract because an event occurs that makes performance of the contract terms impossible or inequitable and that releases the parties from their obligations.


B



Back Haul

The return of a carrier to the original point or area from which its journey began. If a carrier can obtain cargo to carry on the back haul route, that cargo may often obtain a favorable freight rate because otherwise the carrier would have to return empty.

Back Order

That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date when available.

Bad Faith

The intent to mislead or deceive. It does not include misleading by an honest, inadvertent or uncalled-for misstatement.

Bagged Cargo

Goods shipped in sacks.

Bailment

A delivery of goods or personal property by one person (the bailor) to another (the bailee) on an express or implied contract for a particular purpose related to the goods while in possession of the bailee, who has a duty to redeliver them to the bailor.

Balance Of Payments

A statement summarizing all the economic and financial transactions between companies, banks, private households and public authorities of one nation with those of the other nations of the world over a specific time period. It includes merchandise trade payments, payments and receipts on account of shipping services, tourist services, financial services, government expenditures, short and long term capital movements, interest and dividends, gold movements, etc.

Balance of Trade

The difference in value between a country's total imports and exports over a specific time period.

Balanced Economy

A condition of national finances in which imports and exports are equal.

Bale

A large bundle or package of compressed and bound goods, usually with an outer covering, often of burlap.

Bale Cargo

Cargo shipped in bales.

Ballast

Heavy material or water placed in the lower holds of a ship or in strategically placed tanks along the sides to improve its stability.

Bank Acceptance

A draft drawn on and accepted by a bank.

Bank Delivery Order to an Airline

A letter addressed to an air carrier from a bank who is shown as consignee on an airwaybill instructing the carrier to release a shipment. Often airlines will accept as a delivery order a bank's endorsement on the airwaybill, although an airwaybill is a non-negotiable document.

Bank Draft

A form of check drawn by a bank against its account in another bank.

Bank Guarantee

An indemnity letter in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other form of default occurs. One use is when a bank wants a carrier to release a shipment which it has financed but the original bills of lading are not yet available for surrender to the carrier.

Bank Holding Company

(USA) Any company which directly controls, with power to vote, more than five percent of voting shares of two or more banks (as defined by the Bank Holding Company Act .

Bank Holiday

A day on which banks are closed.

Bank Note

A promissory note having the appearance of currency, issued by a bank or banker authorized to do so, payable to bearer on demand, and intended to circulate as money.

Bank Release

A document issued by a bank who is the consignee of a shipment authorizing a carrier to deliver a shipment.

Banker's Bank

A bank that is established by mutual consent by independent and unaffiliated banks to provide a clearinghouse for financial transactions.

Banker's Draft

A draft payable on demand and drawn by, or on behalf of, a bank upon itself or upon another bank, sometimes a foreign bank, where it maintains an account or a relationship.

Bankers Acceptance

A draft calling for payment at a future date on which the drawee is a bank, and the bank has agreed to pay by signing "accepted" on the draft.

Bankruptcy

The condition of a legal entity that does not have the financial means to pay their incurred debts as they come due. In the U.S. this status is established through legal procedures involving a petition by the bankrupt or by its creditors.

Bareboat Charter

The charter of a vessel where the charter party has the right to use his own master and crew on the vessel. Pays all operating expenses.

Barge

A flat bottomed cargo vessel primarily used on rivers and canals. Usually it is towed or pushed but it may be self-propelled.

Barratry

1. In maritime law the intentional misconduct of the ship's master or crew; includes theft, intentional casting away of vessel, or breach of trust.
2. The offense of frequently stirring up quarrels and suits, either at law or otherwise.

Barter

Trade of goods or services without the use of money.

Basing Point

A location which is used to set the selling price of goods and the freight rates to all points. A price is set at a given location chosen as the ex-factory basing point with freight to the place of delivery added to create a delivered price. Then like goods, wherever they may be sold from, are charged freight to their destination as if they were shipped from the same location (the basing point).

Basing Rate

A freight rate which is used for the sole purpose of determining other freight rates. For an explanation of how this works, see 'Basing Point'.

Basket of Currencies

A composite unit consisting of weighted amounts of the currencies of a group of designated nations.

Battens

1.The protruding fixtures on the inside walls of a vessel's hold which are used to keep the cargo away or to fasten it in place.
2. Similar structural parts to the above in truck bodies, containers and rail cars.

Bearer

The person in possession of a negotiable instrument, document of title, or security marked "payable to bearer", or the person in possession of one of these documents endorsed in blank.

Beggar-Thy-Neighbor Policy

A course of action through which a country tries to reduce unemployment and increase domestic output by raising tariffs and instituting non-tariff barriers that impede imports, and thus improve its own position at the expense of its trading partners.

Belly Pits or Holds

Compartments beneath the cabin of an aircraft used for the transport of cargo or baggage.

Beneficiary

1. In the case of a letter of credit, the individual or company who is entitled to draw or demand payment under its terms.
2. In the case of insurance, the person entitled to take the proceeds.
3. The person for whose benefit a contract, or trust, or will is executed or enforced.

Berth

The place beside a docking area where a ship is secured and cargo can be loaded or unloaded.

Bid Bond

A type of indemnity bond. A surety guarantee often required to be established by a bidder to guarantee fulfillment of his offer if accepted.

Bilateral Investment Treaty

A treaty between two countries with the goal of ensuring that investments made by either of them in the other receive treatment equal to that afforded their domestic entities or any third country entities.

Bilateral Trade

The commerce between two countries.

Bill

1. A "Bill of Exchange" or "Draft" (same thing).
2. A written statement of contract terms.3 .The word "Bill" has many other international trade connotations - "Invoice" etc.

Bill of Credit

A written authority from one person to another, empowering the recipient of the document to receive money from the correspondents of the issuer abroad . (The usual issuer is a bank)

Bill of Exchange

Draft or Bill.

Bill of Health

An official certificate (Pratique) issued by the authorities upon the departure of a vessel or airplane showing the state of health at the place of departure, and of the passengers and crew.

Bill of Lading

A document issued by a carrier which is evidence of receipt of the goods, and is a contract of carriage. It describes the goods, the details of the intended voyage, and it specifies the conditions of transportation. If issued in negotiable form, i.e. "to order", it becomes documentary evidence of title to the goods.

Bill of Sale

A written document by which a party legally transfers ownership of goods to another party.

Bill-To Party

The party designated on purchase order, invoice, or bill of lading as the one to whom the bill should be sent for payment.

Billed Weight

The designated weight shown on the freight bill which is used to calculate the freight charges.

Billing Third Party

The transference of transportation charges to a party other than the shipper or consignee.

Biological Agents

A complex substance of organic origin which can treat or cause disease.

Black Market

Buying or selling of products that violate government restrictions.

Blanket Rate

In insurance, a rate of premium applied across the board when there is more than one kind of property which is the subject of insurance.

Blockade

Prevention of commercial exchange by physically preventing carriers from entering a port or nation.

Bona Fide

In or with good faith, honesty, and sincerity.

Bond

1. A written undertaking to perform or refrain from performing specified acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due and usually specifying a rate of interest and its dates of periodic payment.

Bond of Indemnity

A bond to indemnify and save harmless the party to whom the bond is issued against some anticipated loss.

Bond System

(USA) An automated electronic system, part of the Automated Customs System, whose purpose is to control and track indemnity bonds issued to Customs to secure compliance with various laws.

Bonded

(USA) This term refers to goods which are held, stored or transported under circumstances where applicable duty or taxes have not yet been definitely determined or paid, and admissibility has not yet been arranged. Bonds must be posted by those who are responsible for the goods during this period (the carriers, warehouses, and/or importers) to indemnify the government if the goods are released improperly.

Bonded Terminal

(USA) A terminal approved by Customs for temporary storage of imported goods until Customs duties are paid or goods released. Bonds must be posted by the terminal operator to indemnify the government if the goods are released improperly.

Bonded Warehouse

(USA) An approved private warehouse used for the storage of goods until duties or taxes are paid and the goods are properly released by Customs. Bonds must be posted by the warehouse proprietor and by the importer to indemnify the government if the goods are released improperly.

Booking

The making of arrangements for a shipment with the representatives of a vessel or airline.

Bounties

A compensation paid to persons to induce certain actions. In this class are government payments to producers or exporters to strengthen their competitive position.

Box

1. Term referring to a trailer, semi-trailer, or container used in transportation.
2. A type of package of wood, cardboard, metal, plastic or other material.

Box Car

A closed railroad freight car.

Boycott

A concerted refusal to deal commercially with a person, firm, or country.

Breakage

1. A monetary allowance that a manufacturer allots for compensation to a buyer for breakage to goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for example in computing interest.
3. In marine insurance, "breakage" refers to breakage of fragile goods such as glass and china.

Breakbulk

1. A breakbulk ship is one which transports cargo which is packed in cases, bales, cartons, drums, carboys etc., and this cargo is carried in the ship's cargo holds rather than in containers (although some loaded containers may be carried).
2. 'to breakbulk' is to unload packaged cargo from a 'breakbulk ship' or from a container and to distribute it.

Breakbulk Cargo

Cargo that is shipped in packing units such as cartons, cases, crates, bales, or drums, but not containerized.

Broker

One that acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission.

Bulk Cargo

Cargo that is made up of an unpacked commodity; examples include grain, oil, and ore.

Bulk Carrier

A vessel designed for the shipment of bulk cargo.

Bulk Freight

Cargo not in packages or containers.

Bulk Sale

The transfer or sale of substantially all of an inventory of an enterprise in a single transaction not in the usual course of business.

Bulk Solids

Dry cargo shipped loose, such as grain, ore, etc.

Bunker Adjustment Factor

An adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel.

Bunker Fuel

The fuel used to power a ship.

Bunker(s)

1. A compartment (hold) of a ship for storage of fuel.
2. The fuel for a vessel

Bureau Of Alcohol, Tobacco And Firearms

The Bureau of Alcohol, Tobacco and Firearms (ATF) is a law enforcement organization within the United States Department of Treasury with unique responsibilities dedicated to reducing violent crime, collecting revenue, and protecting the public. ATF enforces the Federal laws and regulations relating to alcohol, tobacco, firearms, explosives and arson by working directly and in cooperation with others.

Bureau of Industry and Security

A U.S. government agency responsible for control of exports for reasons of national security, foreign policy and short supply.

Buy American Acts

U.S. federal and state government statutes that give a preference in government contracts to U.S. produced goods.






Cabotage

1. Water transportation, navigation or trade along the coasts, between the ports of one nation.2 Inland freight movements confined with the national boundaries of a nation are also sometimes called cabotage.

Call

1. A demand for early repayment of an obligation, or for the performance of a specific act under a contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for "Call Option," a contract giving the holder the right to receive from the issuer a specified amount of a security at a specified price on or before a certain date.5. Short for "Margin Call" - a call by a future or an options exchange, or by a broker to its clients, for additional collateral to that previously posted when the futures, options, or securities were purchased without posting their full value.

Call Money

Money lent by banks on a short term basis which the bank, as lender, can "call" (demand payment at any time, usually on 24 hours notice.)

Capacity To Contract

Legal competency to make a contract.

Capital Goods

1. Durable goods which are used to produce other goods for consumption: for example machinery, equipment, buildings
2. Also, material used or consumed to produce other goods.

Capital Market

The market for long term investment funds in the form of stocks, bonds, commercial paper etc.

Captain's protest

A written sworn statement of the master of a vessel to the effect that damage suffered by the ship during the voyage was caused by storm or other peril of the sea, without any negligence or misconduct on his own part.

Cargo

Merchandise hauled by transportation lines.

Cargo Agent

An agent appointed by an airline or shipping line to solicit and process international air and ocean freight shipments.

Cargo Manifest

A list of cargo being transported or warehoused.

Cargo Selectivity System

(USA) An Automated Customs System module which is used to identify high risk cargo and to apply more intensive examinations to it.

Cargo Tonnage

The weight of a shipment or of ship's total cargo expressed in tons.

Carnet

Called an "A T A Carnet". An international customs document which incorporates guarantees to be used in lieu of Customs documents to enter goods into certain countries temporarily without paying import duty or posting bonds.

Carriage Of Goods By Sea Act Of 1936

(USA) The basic law of ocean shipping in the U.S. Among other provisions, it establishes parameters for the carrier's liability for loss or damage to cargo.

Carrier

A legal entity that is in the business of transporting passengers or goods for hire.

Carrier's Certificate

(USA) A document issued by a carrier providing the particulars of a shipment and designating to customs who may make a customs entry on that shipment..

Cartel

A group of independent producers which regulates production, pricing, and marketing by members to maximize market power and limit competition.

Cash Against Documents (CAD)

A term used in collections supported by shipping documents which are released to the buyer only against payment. Same as Documents Against Payment (D/P).

Casus Major

An extraordinary casualty such as a fire, shipwreck etc.

Category Groups

A classification system which groups various products for statistical, export control or quota control purposes.

Caveat Emptor

Let the buyer beware, which is to say the purchaser buys at his own risk.

Cell

The space constructed on a ship into which one container fits.

Census Interface

(USA) An Automated Customs System module that captures trade data for the U.S. Bureau of Census.

Central Bank

An institution with the sole right to issue bank notes and power to dictate the monetary policy for a currency zone.

Certificate of Inspection

A certificate issued by an independent third party verifying the condition of cargo or of property.

Certificate of Manufacture

1. A certificate sometimes required from a manufacturer to attest that goods have been manufactured according to the contract; for example, to support payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback based on manufacture in the United States.

Certificate of Weight

A document certifying to the weight of a shipment.

Certification

1. Official proof of authenticity.
2. The formal assertion of some fact in writing.

Cession of Goods

A surrender or assignment of goods for the benefit of one's creditors.

CFR (Cost and Freight ...named port of destination)

The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. (Note: this Incoterm, CFR, has replaced the term C&F which has been in common usage)

Chargeable Weight

The weight or volume of a shipment used in determining freight charges.

Charter Service

Temporary hiring of an aircraft or vessel for the transportation of cargo or passengers.

Chartered Ship

A ship leased for a stated time, voyage, or voyages.

Chassis

1. A special trailer or undercarriage on which containers are moved over the road.
2. The undercarriage of a vehicle.

CIF (Cost, Insurance and Freight... named port of destination)

The seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage.

CIP (Carriage and Insurance Paid To...named place of destination)

The seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage.

Circa

Same as "about" and "approx."; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price.

City Terminal Service

A service provided by some airlines that involves receiving or delivering cargo at terminals in-town instead of at airports.

Claim

1. A demand of payment.
2. In insurance, a demand for payment of money or property as the result of an insured loss..
3. In transportation, a demand for return of overpaid charges. Also, a demand for reimbursement of losses due to loss or casualty to cargo or failure to deliver.

Classification

The categorization of merchandise: In transportation - to permit determination of freight rates within a tariff. In customs - to permit the determination of duty status within the Harmonized Tariff Schedules.

Claused Bill of Lading

A notation on a bill of lading which denotes a deficient condition of the goods or packaging, or other annotated conditions modifying the printed conditions on the Bill Of Lading.

Clean Bill of Lading

A bill of lading issued by a carrier for goods delivered in "apparent good order and condition" - bearing no notations or added clauses which may limit the liability of the carrier.

Clean Draft

A draft with no commercial documents attached.

Clearance

1. The completion of governmental requirements so that a carrier may arrive in a port and unlade cargo and passengers, or may lade cargo and passengers and depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to allow goods to be imported or to be exported.

Closed-End Transaction

A credit transaction with a fixed amount of time for repayment.

Coastal Trade

Trade by vessel between the ports of one nation.

Collar

An agreement that puts upper and lower limits on the interest rate of a financial instrument or on the price of something, and through this device limits the possible amount of loss or gain from the rise or fall of interest or price of the thing "collared"

Collect Charges

1. Transportation practice where the receiver of the goods pays the freight and charges to the carrier.
2. Collection practice where the buyer is expected to pay the bank charges for handling the collection.

Collect on Delivery (C.O.D.)

A service where the purchase price of a shipment is collected by the carrier upon delivery of the shipment and subsequently paid to the shipper.

Collecting Bank

A bank involved in the collection process. In this process if presentation is made to the drawee, it becomes also "the presenting bank."

Collection

1. The presentation for payment of an obligation and the payment thereof.
2. A gathering of similar goods.

Collection Letter

Customer's written instructions to a bank on how to handle a collection. Many banks have an instruction form for use instead of a letter.

Collection Papers

Drafts, invoices, printed lists, documents which relate to a shipment, and other similar instruments presented to the designated buyer/ payee to obtain payment or acceptance.

Collection System

(USA) In U.S. Customs, it is the process that controls and accounts for payments collected by the agency.

Combination Aircraft

An aircraft capable of transporting both cargo and passengers on the same flight.

Combined Bill of Lading

A bill of lading covering a shipment of goods by more than one mode of transportation.

Combined Transport

Consignment sent by means of various modes of transport.

Comity

1. In international relations it is the recognition that one sovereignty allows within its territory to the legislative, executive or judicial acts of another sovereignty, with due regard to the rights of its own citizens.
2. Courtesy, respect, and good will.

Command Economy

An economic system where the decisions about allocation of resources, production, distribution and consumption are made by a central government authority instead of being determined by market forces. An example was the Nazi economy.

Commercial Bank

In the USA, a bank that is authorized to accept demand deposits. It may also receive time deposits, make loans, engage in trust services, issue letters of credit, accept and pay drafts, rent safe deposit boxes and engage in many other similar activities.

Commercial Invoice

A document which details the transaction between a seller and a buyer. It minimally should give the name and address of the seller and of the buyer, the date of the sale, a description of the goods sold, the quantity, the unit price, the terms of sale, and the total money amount due. If it is an invoice between buyer and seller of different countries it should also indicate the kind of currency.

Commercial Letter of Credit

An instrument by which a bank substitutes its credit for that of a customer to enable him to finance the purchase of goods or to incur other commitments. The bank issues a letter (or document) on behalf of its client to a supplier and agrees to pay them upon presentation of documentary evidence that the supplier has performed in accordance with the terms of the letter of credit.

Commercial Officers

Embassy and consular officials who assist their country's citizens and businesses in a foreign country through arranging appointments with local business and government officials and providing counsel on local trade regulations, laws, and customs.

Commercial Paper

Negotiable instruments used in commerce. Usually they are short term, unsecured, promissory notes issued by highly rated entities and are traded on the money markets.

Commercial Set

The documents required to evidence the shipment of goods; usually includes an invoice, packing list, and bill of lading; may include certificate of origin, certificate or policy of insurance, and other special documents.

Commercial Treaty

An agreement between two or more countries that establishes the conditions under which business may be conducted between their citizens within their countries..

Commingling

1. The packing or mingling of various goods subject to different rates of duty so that the value and quantity of each class of goods cannot be readily determined.
2. To combine funds or properties into a common mass.

Commission

1. A board or committee officially appointed to perform certain functions or exercise certain jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in the completion of a transaction involving the sale of goods or services.3.The authority under which one acts, transacts business or negotiates for another.

Commodity Code

The system of identifying a commodity by an assigned number.

Commodity Rate

The rate applicable to shipping a given commodity between points.

Common Point

1. A location serviced by two or more transportation lines.
2. A significant point over which aircraft fly and report to the air controllers.

Competitive Rate

Rate determined by one transportation line to compete with the rate of another transportation line.

Compradore

An agent in a foreign country employed by a domestic businessman to facilitate transactions with local businesses within the foreign country.

Concealed Damage

Damage to the contents of a package which is not evident from the appearance of the exterior of the package.

Concealed Loss

1. Loss from a package bearing concealed damage.
2. Damage, loss, or shortage of goods within a package which is not apparent from its exterior condition.

Confirming Bank

A bank which engages to honor a letter of credit issued by another, or engages that such letter of credit will be honored by the issuer or by a third bank.

Connecting Carrier

A carrier which has direct physical connection with another carrier or forms a connecting link between two or more carriers.

Consignee

The person or firm named in a freight contract to whom goods have been shipped or turned over for care.

Consignment

1. Goods or property sent by the aid of a carrier from one person (the consignor) to another (the consignee).
2. Entrusting of goods to another to sell as agent for the sender.

Consignor

The entity that ships goods to another. On a bill of lading, the shipper.

Consolidated Container

A shipping container that contains cargo from various shippers for delivery to various consignees.

Consolidation

1. In transportation, the combining of smaller shipments into a single shipment that is sent to a destination point.2.The reorganization of corporations to combine two or more into a successor corporation.

Consolidator

A company that provides freight consolidation services.

Consular Invoice

An invoice covering a shipment of goods, usually required to be certified by the counsel of the country for which the merchandise is destined. It may be required to be on a special form and be subject to the payment of special fees.

Consulate

An office of a country within another country (often there are several, located in the larger commercial centers). These offices represent the commercial interests of the citizens of their country.

Consumer Goods

Any goods produced for the express use of individuals rather than the production or manufacturing of other goods.

Consumption Entry

(USA) A "consumption entry" is the filing with Customs in proper form of an "entry summary for consumption" on imported goods , and payment of estimated duties, taxes, and fees, if any, resulting in the release of the goods by Customs. When the release is unconditional, the importer may dispose of the goods.

Container

A reusable, rigid, exterior "box" in which merchandise is shipped by air, vessel, truck, or rail.

Container Freight Charge

Charge made for the packing or unpacking of cargo from ocean freight containers.

Container Load

A shipment of cargo that, according to weight or volume, will fit a standard container.

Container on Flatcar

A container without wheels put on railcars for transport inland,

Container Part Load

A shipment of cargo that according to weight or volume will not fill a standard container on its own but is expected to be shipped in a container, if necessary with other shipments which are also too small to take up a full container themselves.

Container Vessel

An ocean going vessel designed specifically to handle the loading, carriage and removal of standard freight containers.

Contraband

Any product that a nation has made unlawful to possess, produce, transport, import, or export.

Contract Carrier

Excluding common carriers, any person who under contract will transport passengers or goods for agreed upon compensation.

Convertibility

The attribute of being exchangeable, such as a currency freely able to be exchanged for another, or as preferred stock or bonds to be exchanged for common stock.

Core Inflation

The basic level of inflation over a period of time as opposed to temporary fluctuations.

Corporate Dumping

The practice of exporting banned or out of date goods to a foreign market where restrictions on that product are not as severe.

Cost Plus

A pricing method where the purchaser agrees to pay the production cost of the good plus a fixed percentage to the seller for profit.

Countervailing Duties (CVD)

(USA) Duties which are assessed, in addition to regular duties, to offset the effects of foreign subsidies or bounties upon the export of merchandise to the United States which has been found to materially injure, or threaten material injury to, an American industry.

Country of Departure

The country from which a shipment of goods, a carrier, or a passenger has or is scheduled to depart.

Country of Destination

The country that is the ultimate destination for a shipment of goods. For a carrier, it is the country in which it intends to complete its current voyage or flight.

Country of Dispatch

The country from which a cargo is shipped.

Country of Export Destination

The country to which goods are going in order to be consumed, further processed, or manufactured, as presumed by the shipper at the time of exportation.

Country of Exportation

The country from which goods are shipped with intention to separate them from the mass of goods in that country.

Country of Origin

The country in which goods were produced, mined, grown or manufactured.

Country Risk

The financial risks of a transaction which relate to the political, economic, or social instability of the country of the debtor, and is over and above the credit risk of the borrower.

Courier

1. Attendant who accompanies shipments.
2. Express company which handles shipments of documents and small packages on an expedited basis and may or may not have the shipments accompanied by attendants,

CPT (Carriage Paid To...named port of destination)

The seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.

Customs

The government service which is responsible for the administration of Customs law and the collection of duties and taxes relating thereto, and which has responsibility for the application of other laws and regulations relative to the importation , transit, and exportation of goods.

Customs Electronic Bulletin Board (CEBB)

(USA) Customs Electronic Bulletin Board (CEBB): An electronic bulletin board accessible by computer, sponsored by U.S. Customs, providing the trade community with up-to-date information, clearance requirements, and operation instructions.






DAF (Delivered At Frontier ...named place)

The seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country.

Damages

1. A loss or harm to a person or their property.
2. The pecuniary compensation or indemnity which may be recovered by any person who has suffered loss, detriment or injury to his person, property or rights through the unlawful act, omission, or negligence of another.

Dangerous Goods

Goods which are capable of posing a health or safety risk.

Date Draft

A draft which matures a specified number of days after the date it is issued.

Date of Issue

The arbitrary date on a contract or on a financial instrument fixed as the date from which the term runs. (Neither the actual date on the instrument, nor the date the instrument was actually signed, nor the date the instrument was executed, nor the date the instrument was delivered, are considered to be the "Date of issue" or the "issuance date".)

DDP (Delivered Duty Paid...named place of destination)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.

DDU (Delivered Duty Unpaid... named place of destination)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation as well as the costs and risks of carrying out customs formalities). The buyer has to pay any additional costs and bear any risks caused by his failure to clear the goods for import in time.

Deadweight

1. In maritime terms, the deadweight of a vessel is the maximum weight of the cargo, crew, stores and bunkers that it can carry when loaded so that it settles in the water to the Plimsoll line. This is also measurable by the weight of the water the vessel displaces when fully loaded less the displacement when it was unloaded.
2. Deadweight cargo is cargo of such high density that a long ton (2240 lbs.) of such cargo can be stowed in less than 70 cubic feet.

Dealer

An individual or firm who purchases goods for resale.

Debtor Nation

A nation that is owed less foreign currency obligations than it owes other nations.

Deck Cargo

Cargo that is shipped on the deck of a vessel rather than in holds below.

Declared Value For Carriage

The value of goods declared to the carrier by the shipper for the purposes of determining charges and establishing the liability of the carrier.

Declared Value for Customs

The value of a shipment according to the customs laws of the destination country required to be declared by the shipper on the shipping documents or by the importer when he presents the goods for customs clearance.

Deferred Air Freight

Arrangements can be made according to the tariffs of some air carriers to have less urgent freight delivered at a lower cost on later flights which are more convenient for the airline.

Deferred Payment Letter of Credit

A letter of credit that allows the buyer to take possession of goods by agreeing to pay the issuing bank or the confirming bank at a fixed future date.

Del Credere Risk

A situation where a sales agent sells on credit and for an additional commission guarantees to his principal the credit of the purchaser and the performance of the contract.

Delivery

1. In the case of transportation, the act of transferring physical possession.
2. The act of actually or of constructively placing goods or property within the possession or control of another.

Delivery Carrier

The transport carrier whose responsibility it is to place a shipment at the disposal of the consignee at the named destination.

Delivery Instructions

Specific delivery instructions for the freight forwarder or carrier stating exactly to whom, where and when goods are to be delivered.

Delivery Order

A document from the consignee, shipper, or owner of freight ordering the release of freight to another party.

Demise

1. A lease of property.
2. Death. (Isn't English an interesting language?)

Demise charter

A lease of a vessel in which all control is relinquished by the owner to the charterer, and the charterer bears all the expenses of operation. Similar to bareboat charter.

Demurrage

1. In international transportation, a charge for the failure to remove cargo from a terminal within the allowed free time. Also, a charge for failure to load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against users for use of carriers' equipment beyond the allowed free time.

DEQ (Delivered Ex Quay - Duty Paid - ...named port of destination)

The seller fulfils his obligation to deliver when he has made the goods available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto. (Note: If the parties wish the buyer to clear the goods for importation and pay the duty, the words "duty unpaid" should be used instead of "duty paid", and other costs of importation can also be excluded from the seller's obligations if this is made clear by adding words to this effect.)

DES (Delivered Ex Ship...named port of destination)

The seller fulfils his obligation to deliver when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination. The seller must bear all the costs and risks involved in bringing the goods to the named port of destination.

Destination

The place to which a shipment or person is going..

Detention

The act of keeping back or withholding either accidentally or by design a person or thing.

Devanning

The unloading of cargo from a shipping container.

Developed Countries

A term used to describe the industrialized nations.

Developing Countries

A term used to describe countries that lack strong amounts of industrialization, infrastructure, and sophisticated technology, but are beginning to build these capabilities.

Differential

An amount added to or deducted from a base shipping freight rate between two given locations to determine a new rate to or from some other point or via another route.

Direct Mail Collection (DMC)

A seller may forward his documents and instructions for collecting payment directly to a collecting bank in a foreign country, without going through the intermediary of the seller's own domestic bank.

Discharge

1. To release; liberate; annul; unburden; disencounter; dismiss. To extinguish an obligation; terminate all employment of a person; release, as from prison or military services.
2. The unloading of passengers or cargo from a vessel, vehicle, or aircraft.

Discharging

The unloading of cargo from a carrier, or of the contents from a container.

Discounted Bill

An accepted draft against which a loan is made and the interest is deducted immediately.

Discounting

1. The sale at less than original price of a commodity or monetary instrument, often for immediate payment.
2. A loan by a bank with a deduction of the interest in advance.

Discrimination

A failure to treat all persons or parties equally where no reasonable distinction can be found between those favored and those not favored. It mat be reflected in treatment, service or rates.

Dishonor

1. The refusal by a drawee to accept a draft or to pay it when due.
2. The act of disrespect or insult.

Dispatch

1.An amount paid by a vessel's operator to a charterer if loading or unloading is completed in less time than stipulated in the charter agreement.
2. a message or report to a newspaper from a correspondent, or between government services such as state or military.
3. to send to a destination.

Distribution Service

A transportation service that accepts a shipment from a shipper and at destination separates and sorts the packages and distributes them to many receivers.

Distributor

An agent who sells for a supplier at wholesale and usually maintains an inventory of the supplier's products.

Diversion

Any change in the routing of a shipment once it has been received by the carrier at point of origin and prior to delivery at destination.

Dock

1. A loading or unloading platform at an industrial location or carrier terminal.
2. A ship's berth or wharf.

Dock Examination

(USA) Examination of imported merchandise by Customs at the terminal where it is discharged from the import carrier.

Dock Receipt

A receipt issued by a vessel agent that certifies that goods have been received.

Documents Against Acceptance (D/A)

As a procedure to collect payment on an exported shipment. instructions are given that documents necessary to obtain the merchandise from customs and the carrier are to be released to a buyer only against the buyer's acceptance of a time draft drawn upon him.

Documents Upon Payment (D/P)

As a procedure to collect payment for an export shipment, instructions are given that the documents necessary for the buyer to obtain the shipment from customs and the carrier are to be released to him only upon payment of the draft. (Same as CAD)

Dolly

A piece of equipment with wheels used to move freight with or without a tractor.

Domestic Exports

Exports of goods which were grown, produced, mined, or manufactured in the country from which exported.

Domicile

That place where a person or organization has their principal residence with intent to make it their permanent home.

Door-To-Door

Shipping service from shipper's door to consignee's door.

Double-Column Tariff

A customs tariff schedule with two columns of rates, one for preferred trading partners and one for imports from others.

Downstream Dumping

The sale of products below cost or below fair value by a producer to a another producer in its own domestic market by whom the product is then further processed and exported to another country at a price lower than would otherwise be charged and thus causing injury in that country.

Drawback

(USA) A refund of duty and taxes which may be obtained upon the exportation or destruction of certain articles under certain conditions.

Drawback System

(USA) An Automated Customs System module that provides the means for processing and controlling all types of drawback entries.

Dray

A vehicle used to haul cargo or goods, usually drawn by a horse.

Drayage

The charge made for hauling freight via carts, drays or trucks.

Drop Shipment

At the request of a wholesaler, a shipment of goods from a manufacturer directly to a dealer or consumer, avoiding delivery to the wholesaler.

Drop-off

The delivery of a shipment by a shipper to a carrier for transportation.

Dry Cargo

Cargo which is of solid, dry material. It is not liquid or gas, and generally the term excludes cargo requiring special temperature controls.

Dry-Bulk Container

A shipping container designed to carry unpackaged free-flowing dry solids such as grain or sand.

Dry-Cargo Container

Any shipping container designed to transport goods other than liquids or gasses.

Dual Exchange Rate

The existence of two exchange rates for a single currency for use in different circumstances as mandated by the government.

Dual Pricing

The selling of identical products in different markets for different prices.

Dumping

The sale of goods in a foreign country at less than" fair value" (a price lower than that at which it is sold within the exporting country or to third countries), and which thereby materially injures, or threatens to materially injure, that industry in the foreign country.

Dunnage

Materials placed around cargo to prevent shifting or damage while in transit.

Durable Goods

Any product which is not consumed through use.

Dutiable List

The list of Items in a country's tariff schedule on which it charges import duty.

Duty

A tax levied by a government on the import or export of goods.(Note: The U.S. Constitution forbids the levying of taxes by the U.S. on exports. However, most foreign governments do not have this restriction,)








Easement

A right to use another person's property.

Edge Act Corporations

Banks that are subsidiaries either to bank holding companies or other banks established to engage in foreign business transactions.

Electronic Commerce

A system of integrated communications, data management, and security services that allow business applications within different organizations to automatically interchange information.

Electronic Data Interchange (EDI)

Electronic transmission of data and information according to particular protocols .

Electronic Funds Transfer

System of transferring funds from one account to another by electronic means.

Electronic Meat Health Certificate

(USA) A demonstration project that illustrates the electronic transmission of fresh meat health certificates.

Electronic Visa Information System (ELVIS)

(USA) An electronic data system via which participating foreign governments transmit electronically to the U. S. Government details of shipments of quota controlled textile goods they have made to the U.S.

Embargo

A government prohibition of exports or imports with respect to specific products or specific foreign countries.

En Route

In transit (referring to goods, passengers, or vessels).

Entrepot

An intermediary storage facility (often in an intermediate country) where goods are kept temporarily for distribution.

Entrepot Trade

The import and export of goods which receive no further processing but are distributed from the entrepot facility which is chosen for its location and lack of restrictions on trade,

Entry

1.That documentation required to be filed with the appropriate customs officer to secure the release of imported merchandise from customs custody.
2. The act of filing that documentation.

Entry Documents

The documents required to complete customs entry to secure the release of imported merchandise.

Entry Summary

(USA) Documentation which is necessary to enable US Customs to collect duties, collect statistics, and determine whether other requirements of law or regulations are met upon importation. In the US, the importer must classify the goods, determine their customs value, and calculate duties, taxes and fees.

Entry Summary System

(USA) An Automated Customs System module that automates the entry processing cycle.

Environmental Protection Agency (EPA)

(USA) An independent agency in the executive branch whose mandate is to control and abate pollution in the areas of air, water, solid waste, pesticides, radiation, and toxic substances.

Equalization

In transportation, a money allowance given the customer if the transport company picks up the goods at origin points or delivers them to destination points other than those named on the bill of lading.

Escape Clause

1. A provision in a bilateral or multilateral commercial agreement permitting a signatory nation to change their obligations when imports threaten serious harm to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting parties to avoid liability for nonperformance under certain conditions.

ETA

The expected date and time of arrival of a carrier.

ETD

The expected date and time of departure of a carrier.

Eurobond

A bond issued in a Euro-currency, usually Euro-dollars

Ex Factory

This term is still widely used but it is being replaced by the Incoterm EXW - Ex Works. It is a sale term where the title to goods passes to the buyer when they leave the vendor's dock and consequently at that point the liability for loss or damage and the expenses of shipment also pass from vendor to buyer.

Exchange Rate

The price of one currency expressed in terms of another.

Excise Tax

Taxes on the manufacture, sale, or consumption of goods, or upon licenses to pursue certain occupations, or upon corporate privileges. In current usage it covers various license fees imposed by government and practically every internal revenue tax from any source except the income tax.

Exculpatory Clause

1. A contractual clause that releases one party from liability in case of wrong doing by the other party involved.
2. A contractual clause which excuses a trustee from liability where he executes a power in good faith.

Expiry Date

The "End", specifically: the cessation; termination by lapse of time as the expiration of a lease, insurance policy, or statute. Coming to a close or termination. The expiry date is the date on which these events occur. It is the last date that options or warrants can be executed.

Export

To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.

Export Broker

A firm that specializes in bringing foreign buyers and domestic sellers together for a fee but usually does not participate in the actual business transaction.

Export Control

The establishment of procedures for the governmental control of exports for statistical or strategic purposes.

Export Declaration

(USA) The Shipper's Export Declaration is a required customs document for exportation of goods from the United States which provides statistics and facilitates control where applicable.

Export Draft

A documentary order in the form of a draft drawn on the importing party to pay the seller for the exported goods.

Export Duty

A tax imposed by some nations on their exports.

Export License

A license issued to exporters by governments to permit them to export certain goods to certain countries. Such goods may be of strategic importance, or simply in short supply, or are controlled to comply with foreign agreements.

Export Management Company

A private firm that serves as the export department for several manufacturers and handles the exporting aspect of the business for a commission or fee.

Export Merchant

A company that buys domestic and foreign products and sells to foreign purchasers. Usually an export merchant is able to compete because of specialized knowledge of the products in which they deal, detailed knowledge of foreign markets, and expertise in international trading techniques.

Export Processing Zone

Industrial parks designated by a government to provide tax and other incentives to export firms.

Export Quotas

Specified maximums which a nation places on the value or volume of certain of its exports.

Export Restraints

Restrictions which a nation places upon its exports, often to avoid more burdensome restrictions being applied by the importing nations.

Export Statistics

The statistics that cover the exports from one country to other countries.

Export Subsidies

Government payments to induce exportation by domestic producers.

Export Trading Company

A corporation organized for the principal purpose of exporting goods and services.

Exporter

An individual or company that ships goods from one country to another in the course of trade.

Exporter Identification Number

(USA) An identification number assigned to exporters of goods from the United States which is required to be shown on the Shipper's Export Declaration for all shipments from the USA..

External Value

The purchasing power of a currency abroad, converted using the exchange rate.

Extradition

The surrender by one state or country to another of an individual accused or convicted of an offense within the jurisdiction of the other.

EXW (Ex Works ...named place)

The seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.

Easement

A right to use another person's property.

Edge Act Corporations

Banks that are subsidiaries either to bank holding companies or other banks established to engage in foreign business transactions.

Electronic Commerce

A system of integrated communications, data management, and security services that allow business applications within different organizations to automatically interchange information.

Electronic Data Interchange (EDI)

Electronic transmission of data and information according to particular protocols .

Electronic Funds Transfer

System of transferring funds from one account to another by electronic means.

Electronic Meat Health Certificate

(USA) A demonstration project that illustrates the electronic transmission of fresh meat health certificates.

Electronic Visa Information System (ELVIS)

(USA) An electronic data system via which participating foreign governments transmit electronically to the U. S. Government details of shipments of quota controlled textile goods they have made to the U.S.

Embargo

A government prohibition of exports or imports with respect to specific products or specific foreign countries.

En Route

In transit (referring to goods, passengers, or vessels).

Entrepot

An intermediary storage facility (often in an intermediate country) where goods are kept temporarily for distribution.

Entrepot Trade

The import and export of goods which receive no further processing but are distributed from the entrepot facility which is chosen for its location and lack of restrictions on trade,

Entry

1.That documentation required to be filed with the appropriate customs officer to secure the release of imported merchandise from customs custody.
2. The act of filing that documentation.

Entry Documents

The documents required to complete customs entry to secure the release of imported merchandise.

Entry Summary

(USA) Documentation which is necessary to enable US Customs to collect duties, collect statistics, and determine whether other requirements of law or regulations are met upon importation. In the US, the importer must classify the goods, determine their customs value, and calculate duties, taxes and fees.

Entry Summary System

(USA) An Automated Customs System module that automates the entry processing cycle.

Environmental Protection Agency (EPA)

(USA) An independent agency in the executive branch whose mandate is to control and abate pollution in the areas of air, water, solid waste, pesticides, radiation, and toxic substances.

Equalization

In transportation, a money allowance given the customer if the transport company picks up the goods at origin points or delivers them to destination points other than those named on the bill of lading.

Escape Clause

1. A provision in a bilateral or multilateral commercial agreement permitting a signatory nation to change their obligations when imports threaten serious harm to the producers of competitive domestic goods.
2. A provision in a contract or other document permitting parties to avoid liability for nonperformance under certain conditions.

ETA

The expected date and time of arrival of a carrier.

ETD

The expected date and time of departure of a carrier.

Eurobond

A bond issued in a Euro-currency, usually Euro-dollars

Ex Factory

This term is still widely used but it is being replaced by the Incoterm EXW - Ex Works. It is a sale term where the title to goods passes to the buyer when they leave the vendor's dock and consequently at that point the liability for loss or damage and the expenses of shipment also pass from vendor to buyer.

Exchange Rate

The price of one currency expressed in terms of another.

Excise Tax

Taxes on the manufacture, sale, or consumption of goods, or upon licenses to pursue certain occupations, or upon corporate privileges. In current usage it covers various license fees imposed by government and practically every internal revenue tax from any source except the income tax.

Exculpatory Clause

1. A contractual clause that releases one party from liability in case of wrong doing by the other party involved.
2. A contractual clause which excuses a trustee from liability where he executes a power in good faith.

Expiry Date

The "End", specifically: the cessation; termination by lapse of time as the expiration of a lease, insurance policy, or statute. Coming to a close or termination. The expiry date is the date on which these events occur. It is the last date that options or warrants can be executed.

Export

To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.

Export Broker

A firm that specializes in bringing foreign buyers and domestic sellers together for a fee but usually does not participate in the actual business transaction.

Export Control

The establishment of procedures for the governmental control of exports for statistical or strategic purposes.

Export Declaration

(USA) The Shipper's Export Declaration is a required customs document for exportation of goods from the United States which provides statistics and facilitates control where applicable.

Export Draft

A documentary order in the form of a draft drawn on the importing party to pay the seller for the exported goods.

Export Duty

A tax imposed by some nations on their exports.

Export License

A license issued to exporters by governments to permit them to export certain goods to certain countries. Such goods may be of strategic importance, or simply in short supply, or are controlled to comply with foreign agreements.

Export Management Company

A private firm that serves as the export department for several manufacturers and handles the exporting aspect of the business for a commission or fee.

Export Merchant

A company that buys domestic and foreign products and sells to foreign purchasers. Usually an export merchant is able to compete because of specialized knowledge of the products in which they deal, detailed knowledge of foreign markets, and expertise in international trading techniques.

Export Processing Zone

Industrial parks designated by a government to provide tax and other incentives to export firms.

Export Quotas

Specified maximums which a nation places on the value or volume of certain of its exports.

Export Restraints

Restrictions which a nation places upon its exports, often to avoid more burdensome restrictions being applied by the importing nations.

Export Statistics

The statistics that cover the exports from one country to other countries.

Export Subsidies

Government payments to induce exportation by domestic producers.

Export Trading Company

A corporation organized for the principal purpose of exporting goods and services.

Exporter

An individual or company that ships goods from one country to another in the course of trade.

Exporter Identification Number

(USA) An identification number assigned to exporters of goods from the United States which is required to be shown on the Shipper's Export Declaration for all shipments from the USA..

External Value

The purchasing power of a currency abroad, converted using the exchange rate.

Extradition

The surrender by one state or country to another of an individual accused or convicted of an offense within the jurisdiction of the other.

EXW (Ex Works ...named place)

The seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. In particular, he is not responsible for loading the goods on the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.






Facilitation

1. Programs designed to expedite the flow of international commerce.
2. The act of freeing more or less completely from obstruction or hindrance.

Factor

1. An agent who receives merchandise under consignment or under a bailment contract, who sells it for the principal or in the factor's own name, and who is paid a commission for each sale.
2. A financing company which purchases accounts receivable under agreed conditions and at agreed discounts and thus makes funds immediately available to approved sellers.

Factor's Lien

The right of a factor to retain possession of designated assets of the principal until the factor receives full compensation from the principal.

Factorage

The commission or other compensation paid to a factor.

Fair Value

(USA) In dumping evaluations, it is the price at which the items being reviewed should have been sold in the home market in order to be considered as goods offered for export in the usual course of trade at fair market value and not guilty of being dumped.

FAS (Free Alongside Ship...named port of shipment)

The seller fulfils his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. The buyer has to bear all costs and risks of loss or of damage to the goods from that moment.

FCA (Free Carrier...named place)

The seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point.

FDA

Food And Drug Administration.

Federal Reserve System

(USA) The equivalent of the central bank of the USA and the coordinator of monetary policy.

Feeder Vessel

A vessel which is part of a cargo network in which the larger, faster vessels only call at the major ports at both ends of the area being covered, and the smaller ports are served by the smaller feeder vessels which transfer the cargo to and from the major port terminals and thus keep the larger vessels filled closer to capacity and spare them the expense and loss of time in loading and unloading in the subsidiary ports.

FEU

Forty foot equivalent units of shipping containers. (Two 20 ft containers = 1 FEU).

Financial Instrument

A document which has a monetary value or is evidence of a monetary transaction, such as drafts, bills of exchange, checks and promissory notes.

Financial Market

Market for the exchange of capital and credit in an economy.

First World Countries

"Western, industrialized, non-communist countries," was the previously accepted criteria, but in view of the emergence of Japan as an economic power and the rising status of Russia and China, "industrialized" is probably the only remaining valid criterium for a "First World Country" at this time.

Five Dragons

Term used to describe the emerging economies of Hong Kong, Singapore, South Korea, Taiwan, and Thailand.

Fixed Charges

1. Charges which do not increase or decrease with a change in volume.
2. Expenses that have to be borne whether any business is done or not.

Fixed Exchange

1. When Governments or their Central Banks administratively set the exchange rate for their currency.
2. An administratively set exchange rate where no rate fluctuations are permitted.

Fixing

The setting of a price by a known method at regular times. For example, the establishment of an official exchange rate, interest rate, or security or commodity price.

Flag

A reference to the country of registry of a vessel.

Flag of Convenience

The national flag flown by a ship that is registered in a country other than that of its owners. (Usually arranged in order to save taxes and operating expenses)

Flight of Capital

The movement of capital to another country to avoid loss.

Floating

Free determination of rates based on supply and demand, for example exchange rates or interest rates.

Flotsam

Floating debris or wreckage of a ship and its cargo.

FOB (Free On Board ... named port of shipment)

The seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. The buyer has to bear all costs and risks of loss or damage to the goods from that point.

Force Majeure

A condition of superior or irresistible force such as Acts of God, including earthquakes and floods, which cannot be avoided by the exercise of due care and is included in contracts to excuse parties from performance when such events occur.

Foreign Bond

An international bond usually denominated in the currency of the country where it is issued.

Foreign Commerce

Trade between individuals or legal entities in different countries.

Foreign Currency

The currency of any foreign country which is authorized by that country as the medium of circulation.

Foreign Exchange

Currency of countries exchangeable for other currencies according to their relative values based on supply and demand.

Foreign Exchange Contract

A contract for the sale or purchase of the currency of one country to be paid for with the currency of another country, specifying an amount, an exchange rate, and delivery date.

Foreign Exchange Rate

The rate or price of the currency of one country in terms of the currency of another.

Foreign Exports

1. (USA) Exports from the United States of foreign origin merchandise. (for the purposes of USA export statistics)
2. Exports by other countries..

Foreign Flag

The national identification of a carrier registered in a foreign country. A vessel flies the national flag of the country in which it is registered, and it may be registered in a country different from that of its owner.

Foreign Income

Income gained by residents of one country from another country.

Foreign Investment

The purchase of assets which are abroad.

Foreign Market Value

From the American point of view it is the price at which merchandise is sold at wholesale in the principal markets of the country from which it is exported.

Foreign Parent

The first foreign person or entity outside the United States in an affiliate's ownership chain that has direct investment in the affiliate.

Foreign Person

1. A person belonging to or under citizenship of another country.
2. Using the United States as an example, a person who resides outside of the United States or is subject to the jurisdiction of another country other than the United States is a "foreign person".

Foreign Remittances

The transfer of any funds across national boundaries.

Foreign Trade Zone Act (FTZA)

(USA) The act which established foreign trade zones in the USA.

Forward Foreign Exchange

An agreement to purchase or sell an amount of foreign currency at a future date at a predetermined price.

Foul Bill of Lading

A bill of lading issued with notations on it which limit the carrier's liability; for example, a notation that the goods were received damaged, or short, or improperly packaged.

Fractional Currency

Any currency that is smaller than a standard money unit.

Franco

Free from duties, transportation charges and other levies.

Free Domicile

"Free Domicile" is still a widely used pricing term to describe when the shipper pays all the applicable duties and all the transportation and other charges until delivered to the buyer's premises. The term is being replaced by Incoterm "DDP - Delivered Duty Paid ... named point of destination."

Free In and Out

A pricing term indicating that the vessel operator is responsible for the cost of loading and unloading.

Free List

A schedule of items in a customs tariff that are not subject to the payment of duties.

Free Market

A market in which there is unrestricted trading of goods with prices determined by supply and demand. Internationally, there is an unrestricted movement of goods in and out , and it is unhampered by the existence of tariffs or other trade barriers.

Free Port

An area where imported goods may be brought without payment of duties.

Free Time

1. The time allowed shippers and receivers to load or unload rail cars before demurrage or detention.
2. The time allowed consignees to take physical delivery of cargo before storage or demurrage is assessed.

Free Zone

An area within a country (a seaport, airport, warehouse or any designated area) regarded as being outside its customs territory where importers may bring goods of foreign origin without paying customs duties and taxes, pending their eventual processing, transshipment or re-exportation.

Free-Astray

A shipment or part of a shipment which has been dropped off at a wrong location by a carrier

Freight

1. All merchandise, goods, products, or commodities shipped by rail, air, road, or water, other than baggage, express mail, or regular mail.
2. The compensation paid for the transport of goods.

Freight Charge

The charge assessed for transporting cargo.

Freight Claim

1. A demand upon a carrier for the repayment of overcharge.
2. A demand upon a carrier for cargo loss or damage.

Freighter

A ship or airplane used primarily to carry cargo.

Fungibles

Goods that, for commercial purposes, are identical with other goods and interchangeable in all situations.

Futures Contract

A contract for the future delivery of a specified commodity, currency or security on a specific date at a rate determined in the present.






Gang

Maritime: A group of longshoremen under a supervisor who are assigned to load or unload a portion of a vessel.

Gangway

1. The opening through which a ship is boarded.
2. A platform connecting quarterdeck and forecastle of a ship.

Gantry Crane

A specialized crane which travels on a structure which can span a wide area and raises and lowers cargo. Some of them span the deck of a vessel.

Gateway

1. A major airport or seaport;
2. or the port where customs clearance takes place;
3. or a point at which freight moving from one territory to another is interchanged between transportation lines.

Geisha Bond

Bond issued on the Japanese market in currencies other than yen.

General Agreement On Tariffs And Trade (GATT)

Both a multilateral trade agreement aimed at expanding international trade and the organization which oversees the agreement. The main goals of GATT are to liberalize world trade and place it on a secure basis thereby contributing to economic growth and development and the welfare of the world's people. The organization, GATT, has been succeeded by the World Trade Organization (WTO).

General Average

1. loss that affects all cargo interests on board a vessel as well as the ship herself.
2. An internationally accepted rule of the sea which says when a peril threatens the survival of the ship, there may be sacrificed (thrown overboard) any cargo or supplies or ships' furnishings, and any expense incurred necessary to save the ship. If the vessel is saved, all cargo owners, ship owner, and owners of the freight revenue share pro rata in the loss.

General Cargo Rate

The rate a carrier charges for the transportation of cargo which does not qualify for a lower special class or commodity rate in the carrier's tariff.

General Cargo Vessels

A vessel designed to handle breakbulk cargo such as bags, cartons, cases, crates and drums, either individually or in unitized or palletized loads.

General Commodity Rate

In a maritime tariff, a freight rate applicable to all commodities except those for which specific rates have been filed.

General Imports

The total physical arrivals of merchandise into one country from foreign countries during a period of time..

General Liability

Unlimited responsibility for an obligation, such as payment of debts of a business.

General Order

(USA) The customs requirement that goods not cleared within a specific number of days after arrival of the carrier must be taken into custody of customs and deposited in a warehouse at the risk and expense of the consignee.

General Order Warehouse

(USA) A bonded warehouse authorized by customs to store goods sent to General Order.

General Partnership

A partnership where all partners have joint ownership. They share the profit, losses and management equally and each has personal liability for all the debts.

General Tariff

A tariff that applies to countries that do not enjoy either preferential or most favored nation tariff treatment.

Generalized System Of Preferences (GSP)

A program providing for free rates of duty for merchandise from beneficiary developing independent countries and territories to encourage their economic growth.

Global Bond

A bond that can be traded in any United States capital market and in the Euromarket with special arrangements made for transferability between the markets.

Global Quota

A quota set by a nation on the total imports of a product from all countries.

Gold Exchange Standard

A monetary system adopted by some countries which did not have enough gold to go onto the gold standard so they deposited their gold with one of the leading gold standard countries and made their currency more or less freely convertible to the currency of that country.

Gold Reserves

Gold retained by a nation or its central banks contributing to the nation's creditworthiness in the issuance of bonds and currency, although there may be no commitment by it to exchange gold for its currency.

Gold Standard

A monetary system whereby every form of currency issued by a country is convertible on demand into its legal equivalent in gold or gold coin

Gondola Car

An open railway car with sides and ends, used principally for hauling coal, sand, etc.

Goods

Merchandise; supplies; raw materials; wares; commodities; products. The meaning may vary in various situations but for purposes of a contract for storage or transportation, or with reference to collateral for security, it means all things treated as movable.

Grantee

1. One to whom a grant is made; a grant being the giving or permitting as a right or privilege, an authority, a power, a license, or a property.
2. (USA) As to foreign trade zones in the US, a corporation to which the privilege of establishing, operating, and maintaining a foreign trade zone has been granted by the Foreign Trade Zone Board.

Green Card

A popular name for an identity card (visa) issued by the U.S. Immigration and Naturalization Service entitling a foreign national to enter and reside in the United States as a permanent resident.

Grid

Fixed margin within which exchange rates are allowed to fluctuate.

Gross

1. 12 dozen or 144 articles.
2. Total (as in "Gross Weight".)

Gross Domestic Product

A measure of the market value of all goods and services produced within the boundaries of a nation. It excludes income from external enterprises or investments.

Gross National Product

A measure of the market value of all goods and services produced within the boundaries of a nation plus receipts from foreign business activities and investments beyond the national boundaries.

Gross Weight

The total weight of a package or a shipment, including goods and packaging.


H



Hallmark

1. Originally an impression made on gold and silverware introduced in the beginning of the fourteenth century in England to identify the quality of the metal used. Later, a mark to identify the maker and year of production.
2. Figuratively, a distinguishing characteristic.

Harbor Fees

Charges assessed to users for use of a harbor, used generally for maintenance of the harbor.

Harbor Master

An officer who is commander of harbor activities and directs the berthing, etc. of ships in a harbor.

Hard Loan

A foreign loan that must be paid in hard money.

Hard Money

Currency of a nation having stability in the country and a reputation abroad for economic strength, and as a result it has wide and ready acceptability on world markets.

Harmonized System (HS)

A multipurpose international goods classification system designed to be used by manufacturers, transporters, exporters, importers, customs, statisticians, and others in classifying under a single commodity code goods moving in international trade.

Harmonized Tariff Schedule of the United States (HTSUS)

(USA) An organized listing of goods and their duty rates which is used as the basis for classifying imported products and identifying the rates of duty to be charged on them. It is based on the international Harmonized System Convention.

Harter Act

(USA) An 1893 Federal Statute regarding ocean bills of lading and limitation of some carrier liabilities. It has been substantially superseded by the Carriage of Goods by Sea Act of 1936 and others.

Hatch

The opening in the deck of a vessel which gives access to a cargo hold.

Haulage

1. The local transport of goods.
2. Also the charge(s) made for hauling freight on carts, drays or trucks.
3. Also called cartage or drayage.

Hazardous Materials

A substance or material which has been determined to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce.

Heavy Lift

Any article deemed by rules in a vessel's tariff to be beyond a certain weight. It may be too heavy for the ship's tackle and require special equipment such as a floating crane.

Heavy Lift Charge

In a maritime tariff, a charge made for lifting heavy articles to load or unload them.

Heavy Lift Vessel

A vessel with heavy lift cranes and other equipment designed to be self-sustaining in the handling of heavy cargo.

Hedge

To reduce one's risk of loss by compensating transactions on the other side. For example, buy goods for future delivery priced in a foreign currency. Hedge by buying the foreign exchange needed at the rate then in effect. Or, another way of hedging is to buy a forward exchange contract. In both cases the buyer will have a known cost in its own currency. This is a hedge against the risk of foreign exchange fluctuation; it is not a hedge against a change in the price of the goods.

Hedge Ratio

The amount of future exchange contracts, options, or underlying financial instruments, purchased or sold against a position to accomplish a hedge of the position.

High Density

High density cargo is cargo whose weight is high compared to its volume. A vessel tariff in which freight is charged according to weight or volume, whichever yields the highest freight charge, will result in high density freight being charged on a weight basis.

Hitchment

In maritime situations, if the tariff of the steamship company provides for it, portions of a shipment originating in different places may be joined together under one bill of lading from one shipper to one consignee at one destination.

Hold

1. The interior of a vessel below deck where cargo is carried.
2. to delay; to pause (verb); a delay; a pause (noun).
3. A verb with multiple other meanings than those noted above such as: to retain, to contain, to maintain, to bind, to bear, to own.

Hold For Pickup

Freight to be held at the carrier's destination location for pickup by the recipient.

Hold Harmless Contract

An agreement by which one party accepts responsibility for all damages and other liability that arise from a transaction, relieving the other party of any such liability.

Honor

To accept a bill of exchange; or to pay a note, check or draft at maturity.

Horizontal Export Trading Company

An export trading company which exports a range of similar or identical products supplied by a number of manufacturers who may be competitors on the domestic market.

House Air Waybill

1. A bill of lading issued by a freight forwarder for consolidated air freight shipments.
2. An airwaybill issued by an airfreight forwarder by which the forwarder assumes the risk and obligations of being "the carrier."

House-To-House

A shipping term indicating that a container will be offered by the carrier for use by the shipper and the receiver for the transport of the contents from the domicile of one to the domicile of the other, but the carrier only contracts to transport the loaded container from terminal at origin to terminal at destination.(usually called C/Y to C/Y - container yard to container yard.)

Hub And Spoke Routing

Air cargo routing pattern that feeds traffic from many places to a central airport where it is sorted and rerouted on other aircraft to final destinations.

Hull

The outer shell of a vessel.

Hump

An essential feature of a railcar sorting yard . The "hump" is that part of the track which is elevated so that when a car is pushed up on it and uncoupled, it runs down the other side by gravity and is switched onto the siding where a train is being made up for the desired destination.

Hundredweight Pricing

In transportation, special pricing for multiple-piece shipments (weighing over 100 pounds in total) traveling to one destination, which are rated on the total weight of the shipment as opposed to rating on a per package basis.









Irrevocable Corporate Purchase Order

A purchase order completed by a buyer on corporate letter head indicating type and quantity of products being ordered from a supplier.

Identical Merchandise

(USA) For U.S. Customs purposes of appraisement, identical merchandise means merchandise identical in all respect to and produced in the same country and by the same person as, the merchandise being appraised.

Immediate Delivery(ID)

(USA) In certain circumstances, merchandise may be released by U. S. Customs under a special permit for immediate delivery with entry summary (details) and duty to be submitted subsequently. It is a procedure principally utilized along the land borders.

Immediate Transportation Entry

(USA) A form of U.S. Customs entry which allows imported merchandise to be transported under bond to another port for customs clearance thereat.

Immigration

The entry of foreign nationals into a country for the purpose of establishing permanent residence.

Implied Conditions

Certain implied conditions are not written into marine insurance policies, but they are so basic to the understanding between the underwriter and the assured that the law gives them much the same effect as if written. (In many other types of contracts there also may be "implied conditions," for example a seller of goods implies that they are fit for the purpose they purport to serve.)

Import

The act of bringing or causing any goods to be brought into a customs territory.

Import Credit

A commercial letter of credit issued for the purpose of financing the importation of goods.

Import Duty

Customs duty which is collected on in connection with the importation of goods.

Import License

An import license (or import permit) is an authorization by a competent authority for the importation of goods which are subject to restriction.

Import Quota

A protective device establishing limits on the quantity of a particular product that may be imported into a country.

Import Quota Auctioning

The process of auctioning the right to import specified quantities of quota-restricted goods.

Import Relief

Any of several measures imposed by a government to temporally restrict imports of a product or commodity to protect domestic producers from competition. Or, any of several measures to strengthen domestic producers such as subsidies, educational assistance to workers, training assistance to workers, low interest loans to producers, tax relief to producers etc.

Import Restrictions

Any one of a series of tariff and non-tariff barriers imposed by an importing nation to control the volume of goods coming into the country from other countries.

Import Sensitive Producers

Domestic producers whose economic viability is threatened by competition (quality, price or service) from imported products.

Import Substitution

A national economic strategy to build up a domestic economy by emphasizing the replacement of imports by domestically produced goods.

Importer

The individual, firm or legal entity that brings goods, or causes goods to be brought from a foreign country into a customs territory.

Importer Number

(USA) An identification number assigned by the U.S. Customs Service to each importer to track entries and other transactions. In most cases the Taxpayer's Identification Number assigned by the Internal Revenue Service is the number also used by Customs.

Imports

Goods brought into a customs territory.

Imports For Consumption

The total of merchandise that has physically cleared through the customs of a country either entering domestic consumption channels immediately or entering after withdrawal for consumption from bonded warehouses or from foreign trade zones.

Impost

1. A tax, especially an import duty.
2. To classify an impost in order to fix the duty. (rarely used). (Note: an imposter is one who imposts. Another definition of an imposter is a "pretender" but that is not the meaning intended here.).)

Impound

To seize or hold; or to place in custody by order of a court.

In Bond

(USA) A procedure under which goods are transported, stored, or handled, prior to clearance and release by customs, and the government's interest is secured by indemnity bonds.

In Bond Shipment

An import or export shipment which has not been cleared by Customs and is transported, stored, or handled with security to the government provided by indemnity bonds.

In-Bond System

(USA) A part of U.S. Customs' Automated Commercial System, controls merchandise from the point of unloading at the place of arrival, while handled or transported further in bond, until customs cleared.

Incentive

A motivational force that stimulates people to greater activity or increased efficiency.

Income

Money or its equivalent, earned or accrued, arising from the sale of goods or services.

Incoterms

An abbreviation of "International Commercial Terms" published by the International Chamber of Commerce. It is a set of rules for the interpretation of the most commonly used trade terms in foreign trade which parties to a contract can agree upon to avoid misunderstandings, disputes and litigation.

Indemnify

1. To compensate for actual loss sustained.
2. To give security for the reimbursement of a person in case of an anticipated loss falling upon him.

Indemnity

1. A compensation to make a person whole from a loss already sustained.
2. A contract or assurance by which one engages to secure another against an anticipated loss.

Independent Action

The right of a conference member to depart from the common freight rates, terms or conditions of the conference without the need for prior approval of the conference.

Indexed

In finance this term means "measured by" and/or "adjusted according to," thus an interest rate on a note may be, by agreement, "indexed" i.e. adjusted according to the market at time the interest is due. Or a note denominated in a foreign currency may have its exchange rate "indexed," adjusted according to the market rate in effect at the time of payment.

Indexed Currency Borrowings

Borrowings in a foreign currency where the rate of interest is linked to an agreed scale, and/or the rate of exchange at repayment is linked to an agreed scale.

Indexed Currency Option Note

Note denominated and paying interest in one currency but whose redemption value is linked to an exchange rate for another currency.

Industrial List

(USA) The Coordinating Committee for Multilateral Export Controls industrial list contains dual-use items (usable for military or nuclear purposes in addition to normal commercial uses) and as a result whose export is controlled for strategic reasons.

Industrial Policy

Encompasses traditional activist governmental policies intended to provide a favorable economic climate for the development of industry in general or specific industrial sectors.

Infant Industry Argument

The view that "temporary protection" for a new industry or firm in a particular country through tariff and non-tariff barriers to imports can help it to become established and eventually competitive in world markets, in which case the protective measures will no longer be needed.

Inflation

Loss of purchasing power of money caused by growth of the amount of money in circulation and reflected in a rise in prices without a proportionate increase in value of the things purchased..

Informal Entry

(USA) A simplified import entry procedure accepted at the option of Customs for any baggage or commercial shipment that does not exceed a specified value.

Informed Compliance

(USA) A term that describes the improved ability of a entity to comply with Federal rules and regulations through easy access to up-to-date information.

Infrastructure

The institutions and fundamental organizations which support the basic structure of a nation's economy, among these are: the educational system, the transportation systems, the banking system, the public utilities, the water supply system, the sanitation system, the health maintenance network, the public security and safety systems, the communication systems, the postal system etc.

Inherent Vice

The inherent physical properties of goods which may cause them to suffer deterioration or damage without outside influence. (For example: spontaneous combustion, rust etc.)

Injury

1. (USA) A finding by the U.S. International Trade Commission that an import is causing harm (material injury) or threatening to cause harm (material injury) to a U.S. industry...(If caused by sales to the U.S. at "less than fair value", it may be considered "dumping" and trigger "antidumping duties", or if it is caused by foreign subsidies or bounties, it may trigger "countervailing duties").
2. A wrong or damage done to another, either in his person, rights, reputation, or property.
3. The invasion of any legally protected interest of another.

Inland Bill of Lading

A bill of lading used in transporting goods overland.

Inland Carrier

A transportation line which hauls cargo inland: truck, rail, barge, inland waterways, or domestic airline flights.

Inspection Certificate

A document describing the condition of goods and confirming that they have been inspected.

Instrument

Any written document that gives formal expression to a legal agreement or act.

Integrated Cargo Service

A blend of all segments of the cargo system providing the combined services of carrier, forwarder, handlers, and agents, utilizing all forms of transport.

Integrated Carriers

Carriers that have multiple varieties of fleets (i.e. air and ground, truck and rail, etc.).

Intellectual Property

Non-tangible property that is the result of creativity such as copyrights and patents.

Interbank Dealings

Dealings between banks.

Interchange Agreement

An agreement that specifically lays out the terms of leasing or temporarily borrowing equipment from a carrier. A frequent use of an interchange agreement is between an ocean carrier and a trucking company when the trucking company takes a container from the pier for delivery to the consignee.

Interchange Point

A location where one carrier delivers freight to another carrier.

Interline Shipping

The movement of a single shipment on two or more carriers.

Intermodal Compatibility

The physical capability of a shipment of goods to be transported from one form of transportation to another.

Intermodal Transport

Coordinated transport of freight using multiple methods of transportation.

International Trade

The business of buying and selling commodities beyond national borders.

International Trade Data System

A proposed electronic system that would integrate the different government trade and transportation data processes into a system that provides a standard means of gathering, processing, storing and disseminating import and export trade data. See IT06.

Interstate Carrier

(USA) A common carrier whose business extends beyond the boundaries of one state.

Interstate Commerce

(USA) Trade, transport, and communication between or among the several states of the United States.

Invisible Barriers to Trade

Government regulations (national and local), and cultural conditions that do not directly restrict trade but hinder it with excessive and obscure requirements.

Invisible Trade Balance

The balance of trade reflecting the import and export of services.

Invoice

A written account or itemized statement, usually on a printed form with the name and address of the seller, listing merchandise sold or shipped to a purchaser, consignee, factor etc., showing their name and address, and containing a description of the merchandise, the quantity, values or prices and charges, and other significant details of the transaction such as the terms of sale and the currency of the purchase.

Inward Foreign Manifest (IFM)

(USA) A U.S. Customs mandated document requiring the complete listing by bill of lading number or airwaybill numbers of an arriving carrier's cargo. It should give the commercial particulars of the goods including: consignors, consignees, marks and numbers, number and kind of packages, their weights or measures, descriptions and quantities of the goods, their port of loading and intended port of discharge.

Irrevocable Letter of Credit

A letter of credit which cannot be amended or canceled without prior mutual consent of all parties to the credit.

Issuance

1. The execution, validation, and tender of delivery of a contract or financial instrument to the appropriate party.
2. The act of sending forth, promulgating, or the giving of a thing its first inception. The first delivery of an instrument to a holder or remitter.

Issuance Date of the Documents

The date indicated on documents as their date of preparation, subject to correction when necessary as noted above under the term "issuance" and under the definition of "Date of Issue" elsewhere in this glossary.

IT06

An initiative calling for the development of an international trade data system sponsored by the US Government that will meet the needs of Federal agencies involved in international trade as well as the trade information needs of businesses and the general public.

J



Jetsam

Articles from a ship or ship's cargo that were thrown overboard, (usually to lighten the load in times of emergency or distress.). The articles may sink or be washed ashore.

Jettison

The act of throwing overboard at sea part of a vessel's paraphernalia or cargo or hull - usually in hopes of saving the ship from sinking.

Joint Agent

A person having authority to transact business for two or more principals . In transportation it is a common occurrence.

Joint And Several Liability

Liability for damages imposed on two or more individuals or legal entities who are responsible together and individually, allowing the party harmed to seek full remedy against all or any number of the wrongdoers.

Joint Rate

A single freight rate on cargo moving via two or more carriers who then share the income..

Joint Stock Company

An unincorporated business enterprise with ownership interests represented by shares of stock. Also a joint Stock Association.

Joint Venture

A combination of two or more individuals or legal entities who undertake together a transaction for mutual gain or to engage in a commercial enterprise together with mutual sharing of profits and losses.

Jurat

A statement signed by a person authorized to take oaths certifying to the authenticity of a document or affidavit.

Juristic Act

Action intended to, and capable of having, a legal effect, such as the creation, termination, or modification of a legal right.

Just In Time

The principle of production and inventory control that prescribes precise controls for the movement of raw materials, component parts and work-in-progress. Goods are expected to arrive when needed for production rather than arriving prior to need and becoming inventory,













Keelage

The charges paid by a ship entering or remaining in certain ports.

Key Currency

A major currency in the global economy. Key currencies include the U.S. dollar, the British pound sterling, the German mark, the Swiss franc, the French franc, the Dutch guilder, the Japanese yen and the Canadian dollar.

Kiosk

A small structure suitable for use as a newsstand, display stand, bandstand, study stand etc.

Knocked Down

An article disassembled, or unassembled, or taken apart, or folded, or telescoped to reduce its bulk; subject to easy assembly. This is usually done to reduce the dimensions of the shipping package and thereby to save transportation and storage costs.

Known Loss

1. loss discovered before or at the time of delivery of a shipment.
2. An evident loss (as opposed to a concealed loss or damage to contents within a package.)
3. A loss of which the insured and/or the insurer is aware at the time the insurance is effected.









Laissez-faire

A term used to describe minimal governmental involvement in an economy, allowing market forces and individuals to make their own decisions, with little or no regulation.

Landbridge

The movement of cargo (usually in containers) from one foreign country by vessel, transiting another country by rail or truck, and then being loaded aboard another vessel for delivery to the destination country. The movement across the country from port to port is the "landbridge" portion of the transportation.

Lanham Act Of 1947

Federal legislation governing trademarks and trademark registration.

Lay Order

The period during which imported merchandise may remain at the place of unloading without some action being taken for its disposition.

Lead Time

That period of time needed to prepare for an action.

Legal Entity

Any individual, proprietorship, partnership, corporation, association, or other organization that has, in the eyes of the law, the capacity to make a contract or an agreement, and the ability to assume an obligation and to discharge an indebtedness.

Legal Tender

Any money that is recognized as being lawful for use by a debtor to pay a creditor, who must accept same in the discharge of a debt unless the contract between the parties specifically states that another type of money is to be used. It is that money which is lawful for the payment of all debts, public and private, public charges, taxes, duties and dues.

Less Than Truckload

A shipment which does not completely fill a truck or which weighs less than the weight required for the application of the truck load freight rate (which is usually a lower freight rate than applied to less-than-truckload cargo.)

Letter Of Assignment

A document with which the assignor assigns its rights to a third party, the assignee.

Letter Of Credit

A commitment, usually by a bank on behalf of a client, to pay a beneficiary a stated amount of money under specified conditions.

Letter of Indemnity

A document which the writer issues to another party agreeing to protect them from liability for the performance of certain acts. 1. In the case of international transportation when a negotiable bill of lading has been issued but is not available for surrender to the carrier when it is desired to take delivery of the shipment, a bank may issue a letter of indemnity to the carrier to persuade them to release the cargo. (A Letter of Guarantee may also be used ). The bank will usually obtain a similar letter from its client to protect itself against the liability it assumes on behalf of the client.
2. On export shipments, some carriers may permit shippers to issue letters of indemnity to the carriers in order to secure from them clean bills of lading in place of foul, or to replace lost original bills of lading.

Letter of Intent

A document that describes the preliminary understanding between parties who intend to make a contract or join together in another action.

Licensing Agreement

The issuance of a license permitting the use of patents, trademarks, or other technology.

Lift Van

A wooden or metal container used for packing household goods and personal effects.

Lighter

A barge towed by a tugboat and used mainly in harbors and inland waterways for the transport of cargo to and from ships. Some may be self-powered,

Lighter Aboard Ship

Some ships are constructed to carry special barges (lighters). These barges can go to smaller docks, go into inland waterways, load cargo at those places, and then carry it back to the ship which lifts the barges aboard, with their cargo, and transports them overseas. Discharge of cargo is accomplished in the same manner.

Lighterage

The loading or unloading of a ship by means of a lighter (barge), especially when shallow waters prevent an ocean going vessel from approaching a berth, or if berths are unavailable.

Limitation Period

A maximum period set by a statute within which a legal action can be brought or a right enforced..

Limited Liability

1. Restricted liability for obligations.
2. (USA) Limitation of Liability Act. A U.S. statute which permits a shipowner to restrict his liability to whatever value his ship has after an event such as a sinking or collision.

Limited Partnership

A partnership in which at least one of the partners is a general partner who conducts the business and has personal liability for the partnership debts, and at least one of the other partners is a special partner who shares in the profits and losses but their liability is limited to the sum they contribute to the partnership.

Line Haul

The direct movement of freight between two major ports by a single ship.

Line Haul Vessel

A vessel which is on a regularly defined schedule between ports,

Line Release System

(USA) A separate part of the U.S. Customs' Automated Commercial System used for truck traffic along the land borders designed for the release and tracking of shipments through the use of personal computers and bar code technology.

Liner

A vessel carrying passengers and cargo that operates with a fixed schedule on a particular route.

Liner Terms

Conditions under which a shipping company will transport goods, including in the amount payable for freight the cost both for loading and discharge of the cargo from the vessel.

Liquidated Damages

A sum of money that a contracting party agrees to pay to the other party for breaching an agreement.

Liquidation

1. The act or process of settling or making clear, fixed and determined.
2. The winding up and settlement of a debt.
3. The winding up of the financial affairs of a business.
4. (USA) The final computation or ascertainment of the duties accruing on an entry.

Liquidation System

(USA) A part of U.S. Customs' Automated Commercial System, which closes the file on each entry.

Liquidity

1. The availability of liquid funds in an economy.
2. The status or condition of a person or business in terms of its ability to convert its assets into cash and to meet its obligations.
3. The capacity of a market in a particular security or commodity to withstand an unusual amount of buying or selling without affecting the market substantially.

Lloyds Of London

An English association of insurance underwriters, the oldest of its kind in the world. Not in itself an insurance company.

Lloyds Registry

An English society, independent of Lloyds of London, which surveys and classifies the ships of the world according to their description, condition, seaworthiness, and compliance with codes and protocols. Also establishes standards for maintenance and construction. (Correct name is: Lloyds Register of Shipping.)

Loading

The physical placing of cargo into a truck, a shipping container, or onto a vessel.

Longshoreman

A laborer who loads and unloads ships, handles cargo and containers at shipping terminals, and loads and unloads containers at shipping terminals.

Lot Labels

Labels attached to each piece of multiple lot shipment for identification purposes. Each lot label will carry the same number (the lot number) There may also be a consecutive number on each label to separately identify each package.

Lower Deck Containers

Carrier owned containers specially designed as an integral part of the aircraft to fit in the cargo compartments of a wide body aircraft. These compartments are on the lower deck of the aircraft below where the passengers sit.





Macroeconomics

The study of large scale economic factors affecting an economy as a whole.

Mail Entry

A means of shipping and entering goods into a Customs Territory through the postal system.

Mala Fides

In bad faith. (A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not.)

Manifest

1. A document listing and describing the cargo contents of a carrier, container or warehouse.
2. Evident to the senses, especially to the sight, obvious to the understanding, evident to the mind, open, clear, visible, unmistakable, indubitable, indisputable, self-evident.

Manufacturer's Identification Number (MID)

(USA) An identification number used by U. S. Customs in its electronic data processing system for each manufacturer whose goods are shipped to the United States.

Maquiladora

A Mexican factory, usually located in a zone close to the US border, which has special privileges from the Mexican government to produce goods for the US market. Much of the work performed in these factories is the assembly of imported components.

Margin

1. In commercial terms the difference between the cost of goods sold and the total net sales price.
2. The purchase of a stock or a commodity with payment of only part of the purchase price in cash (called the margin) and the balance by loan (usually made by the broker.)

Marginal Cost

The increase in the total costs of a producer of producing one more unit of output, or the decrease in producing one less unit of output.

Maritime

Business pertaining to commerce or navigation by sea.

Market Access

The openness of a national market to foreign products and services.

Market Disruption

A situation where a surge of imports of a certain product causes a sharp decline in the domestic sales of that product and creates a hardship for domestic producers.

Market Economy

An economic system where resources are allocated and production of goods determined by market forces rather than by government decree.

Market Price

The price established in the market where buyers and sellers compete with each other to negotiate the best prices and terms.

Marking: Country of Origin

The physical markings on a product that indicate the country of origin where the article was produced. (With very few exceptions, the U.S. requires every imported article to be so marked.)

Marks

Identification placed on the outer surface of shipping containers or packages. At one time it consisted of pictures, letters and numbers. With the advent of computers, pictures are no longer used. Instructions on the packages for their proper handling, such as "This side up" may also be considered part of the marks. Also the weight and measurements of the packages.

Matador Bond

Bond issued on the Spanish market by an obligor who is not domiciled in Spain.

Mate's Receipt

A declaration issued by an officer of a vessel stating that certain goods have been received on board his vessel.

Material Contract Terms

Terms in a purchase/sale contract that are considered essential; they describe the goods, fix the price, fix the quantity, and set the delivery date.

Measurement Cargo

A cargo on which the transportation charge is assessed on the basis of size or dimensions, instead of upon the gross weight.

Medium of Exchange

Anything which is widely accepted in payment for goods and services and in settlement of debts. Its acceptability is based upon the fact that it can provide a common basis of measurement of the value of things.

Memorandum Bill of Lading

Sometimes the duplicate (non-original) copies of bills of lading are marked "Memorandum" and are intended for informational purposes only.

Memorandum of Understanding

An informal record, document, or instrument that serves as the basis of a future contract.

Merchant's Credit

A form of commercial letter of credit which the buyer, with no commitment on the part of a bank, sends to the seller via a bank in the district of the buyer. The seller presents his bill of sale and evidence of shipment in order to obtain payment from the buyer.

Microbridge

An intermodal movement of cargo which involves a vessel leg to a port and then a movement via another transportation mode, truck or rail, to an inland point where the movement terminates. In the reverse direction, the cargo is picked up at a point inland for transport via truck or rail to a port where a vessel loads the cargo and transports it to an overseas port. The land portion of the two intermodal moves described is the "microbridge".

Minibridge

An intermodal movement of cargo involving a vessel leg from one country to a port in another country, and then a movement via truck or rail to another port in that country, and there the voyage is terminated. The traversing of the land in the second country from discharge port to destination port is the "minibridge" portion of the movement. There could be a similar but opposite combined "minibridge" movement in the other direction.

Minimum Charge

The lowest amount that will be charged regardless of the amount of service rendered.

MOD Act

(USA) Customs Modernization and Informed Compliance Act: Passage 1992, HR 3935.

Money

Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange.

Money Creation

The increase in money supply by the central or commercial banks.

Money Market

The market for short term financial instruments (i.e. commercial paper, treasury bills, discount notes).

Money Market Operations

Creating, investing in, buying and selling short term obligations in the market for short term debt instruments.

Money Supply

The amount of cash and bank deposits available in an economy.

Moor

To secure a vessel to an anchor, buoy, or pier.

Moorage

Charges assessed for mooring a vessel to a pier or wharf.

Most Favored Nation

A trade policy commitment on the part of one nation to extend to another nation tariff rates as low as applies to any other "most favored nations," and to treat imports from that nation without discrimination.

Motor Carrier's Terminal

The place where a motor carrier receives freight, delivers freight to other motor carriers, temporarily stores freight, loads trucks and containers, and generally does all the things which a carrier has to do regarding freight handling and servicing of its trucks and equipment.

Multilateral Agreement

An agreement among more than two persons, firms, or governments.

Multimodal Transport

Transportation which includes at least two modes of transport, such as shipping by rail and by sea.

Multinational Corporation

A corporation having subsidiaries in more than one country.





NAFTA

North American Free Trade Agreement.

National Association Of Export Companies

A nonprofit organization to act as the information provider, support clearinghouse forum, and advocate for those involved in exporting and servicing exporters.

National Customs Brokers And Freight Forwarders Association

(USA) A non-profit organization which serves as the trade organization of customs brokers and international freight forwarders in the U.S.

National Trade Data Bank (NTDB)

(USA) An electronic data base which contains international economic and export promotion information supplied by 15 U.S. governmental agencies.

National Treatment

National treatment affords foreign individuals and firms the same competitive opportunities, including market access, as are available to domestic parties.

Nationalization

Takeover by a government of a public or private activity.

Negotiable

Legally capable of being transferred by endorsement or delivery.

Negotiable Bill of Lading

A bill of lading transferable by endorsement by virtue of its terms which make the goods which it covers deliverable to "bearer", or to the order of a named party, or to the assigns.

Nested

Packed one within another; for example the way paper cups are stacked as a way of saving space.

Net Cash

Payment for goods sold without any deduction allowed from the price.

Net National Product

The total amount of goods and services produced in a nation in a given period of time less the quantity of goods and services needed for its production.

Net Price

Price after all deductions, discounts, rebates, etc have been taken.

Net Weight

The weight of goods without packaging. The weight of the contents of a package.

No Show

Freight that has been booked for shipment on a carrier, but has not physically arrived in time to be loaded before departure of the carrier. This term is also applied to passengers who do not arrive for a departure

Notary Public

A person commissioned by a state for a stipulated period to administer certain oaths and to attest and certify documents. In some countries, the authority of a notary public is much more extensive.

Notify Address

Address of the party mentioned in the transport document to which the carrier is to give notice about the arrival of the shipment.

Notify Party

Name and address of a party indicated in the transport document to be notified by the shipping company of the arrival of a shipment.

NTDB

(USA) National Trade Data Bank: A data base used as the central collection point for US government generated export promotion information.





O



Ocean Bill of Lading

A receipt for the cargo and a contract for transportation issued by an ocean carrier. When issued in negotiable form, it is also an instrument of title.

Offer

1. A proposal that is made to a certain individual or legal entity to enter into a contract, that is definite in its terms, and that indicates the offerer's intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready to sell.

Office Of Export Licensing (OEL)

An agency under the Bureau of Industry and Security that administers export licenses.

Office Of Management And Budget

An executive office of the President which evaluates, formulates and coordinates management procedures and program objectives within and among federal departments an agencies. It also controls the administration of the federal budget.

Offer

1. A proposal that is made to a certain individual or legal entity to enter into a contract, that is definite in its terms, and that indicates the offerer's intent to be bound by an acceptance.
2. With respect to securities, the price at which one is ready to sell.

Official Development Assistance

Official Development Assistance Financial flows to developing countries and multilateral institutions provided by official government agencies.

Offshore Bank

A bank located in a country other than the bank which owns it. The owning bank is usually in a major country and the "offshore bank" in a smaller country.

Offshore Banking Center

A financial center where many of the financial institutions have little connection with that country's financial system, but have located themselves there to benefit from less regulation and/or lower taxes.

Old-To-Market

(USA) This is a term used by the International Trade Administration to define larger scale firms who are committed and experienced in export trade and have export sales often in excess of 15% .

On Board

Notation on a bill of lading indicating that the goods have been loaded on board a named ship.

On Deck Bill Of Lading

An ocean bill of lading containing the notation that the goods have been loaded on the deck of the vessel.

Open Account

Credit extended that is not supported by a note, mortgage, or other formal written evidence of indebtedness.

Open Conference

A shipping conference in which there are no restrictions upon membership other than ability and willingness to serve the trade and abide by the rules of the conference.

Open Economy

An economy free of trade restrictions.

Open-End Contract

An agreement by which the buyer may purchase an unspecified amount of goods from a seller over a certain period of time without changes in the price or the contract terms.

Operator of Foreign Trade Zone

(USA) A corporation that operates a foreign trade zone under the terms of an agreement with a foreign trade zone grantee.

Order

1. A request to deliver, sell, receive or purchase goods or services.
2. An instruction, command or direction authoritatively given.
3. A designation of the person to whom a bill of exchange is to be paid, or delivery of goods made, or a bill of lading consigned (A key word which makes a document negotiable.)
4. A rank, class or division of men.

Order Bill

A bill of lading that states that goods are consigned "to the order" of the person named, or simply "to order" (of no one in particular.) Such a bill of lading is a negotiable document.

Order Notify

A bill of lading which is negotiable because it is consigned to "order" with no entity named; but it does have a named party indicated to whom the carrier is expected to send a notice of arrival.

Outright

Free from reserve or restraint; direct; positive; downright; altogether; entirely; openly.

Over the Counter

Securities trading which takes place outside the normal Security Exchanges.

Overnight

The period in which settlement is required on a transaction such as a currency trade or a swap - on the next business day after the transaction.

Term

Definition





Packing List

A document listing the merchandise in a particular shipment indicating the kind and quantity in each package.

Pallet

A platform with or without sides, on which a number of packages or pieces may be loaded to facilitate handling. Usually the pallet is constructed so that it has space underneath it to permit lifting by mechanical equipment.

Pallet Loader

A device employing a vertical lift platform for the mechanical loading or unloading of pallets of freight at plane side.

Pallet Transporter

A vehicle for the movement of loaded pallets from one place to another.

Palletizing

The loading and securing of a number of sacks, bags, boxes or drums on a pallet base.

Par

Equal. An equality between the face value of a bill of exchange, share of stock etc., and its actual market value. If it can be sold for more, it is "above par;" if for less, it is "below par."

Par Exchange Rate

The free market price of one country's money in terms of the currency of another.

Par Of Exchange

The precise equivalency of a given sum of money of one country with the like sum of money of another country into which it is to be exchanged.

Par Value

1.The official fixed exchange rate between two currencies or between a currency and a specific weight of gold.
2. "Par Value" of a currency is its official rate of exchange.
3. "Par Value" of a share of stock is the value declared on its face.
4. As to a mortgage or a trust deed, it is the balance owing, without discount.

Parent Bank

A bank in one country that has a subsidiary in another country.

Parity

1. Equality in amount or value.
2. Equivalence of prices of goods or services in different markets
3. The relationship between two currencies such that they are exchangeable for each other at par or at the official rate of exchange.
4. Equivalence of prices of farm products (or farm income) to those existing at a former time, or to the general cost of living.

Parol Contract

A contract that is oral only as distinguished from one that is written.

Particular Average

A partial loss of cargo or hull which falls entirely upon the interest concerned. See also "General Average"

Partnership

An unincorporated business owned and operated by two or more persons, who, according to the agreement of the partnership, share the profits and the losses, and the responsibilities, and have general or limited liability. (At least one partner must have unlimited liability)

Patent

A grant by law of a privilege, property, or authority, to one or more individuals - including the grant to an inventor of the right to exclude others from making, using or selling the invention for a term of years.

Payable In Exchange

A negotiable instrument conspicuously marked on its face "Exchange" and naming a payee, is considered to be negotiable and payable to the order or assigns of the designated payee.

Payee

1. The person or organization to whose order a check or draft or note is made payable.
2. One to whom money is paid or is to be paid.

Payer

(Or Payor.) One who pays or is to pay, particularly the person who is to make payment of a check, bill, note, or account.

Penalties

1. Punishment, corporeal or pecuniary, or civil or criminal, although its meaning is generally confined to pecuniary punishment for doing an act that is prohibited or failing to do one which is required.
2. The sum of money which the obligor of a bond undertakes to pay in the event of his failure to perform his obligations under the conditions of the bond.

Performance

The proper fulfillment of a contract or obligation according to its terms.

Peril Point

An estimated limit beyond which a reduction in tariff protection would cause material injury to a domestic industry.

Perishable Freight

Goods subject to decay or deterioration during shipment.

Petrodollars

Hard currency, principally U.S. Dollars, earned by developing nations production and sale of petroleum.

Phytosanitary Inspections

A certificate issued by the agency of a national government indicating that an export shipment has been inspected and is free from harmful pests and plant diseases.

Pickup and Delivery Service

An optional additional service for the transport of shipments from shipper's door to originating carrier's terminal and from the terminal of destination to receiver's door, offered by some airlines, railroads and sometimes by other shipping modes. With some transportation services such as the postal and small package express services, it is a standard service rather than optional.

Pickup Order

An order to a carrier to pick up freight at a location.

Pier-to-Pier

Shipment of cargo with carrier responsibility from origin pier to discharge pier.

Piggyback

The transportation of truck trailers and containers on specially equipped railroad flat-cars.

Pilferage

Taking of property by stealth or clandestine theft, usually in small quantities.

Pilot

1. A person who flies an airplane.
2. A person whose occupation is to guide ships, particularly along a coast, or into and out of a harbor.

Plimsoll Mark

The horizontal line on the outside of a ship which represents the depth to which a vessel may be safely loaded.

Point of Origin

1. The location in which a good is manufactured or produced.
2. The location at which a shipment is received by a transportation line from the shipper.

Port

1. A place intended for loading and unloading the cargo or passengers of vessels - it may be within a natural harbor on a coast, or on a river, or within sheltered water produced by artificial jetties.
2. A place where customs officers are stationed for the collection of duties and the control of imports and exports.

Port Charge

A charge made for various services performed at ports.

Port of Discharge

The port at which a shipment is off loaded by a transportation line.

Port of Entry

A place designated by law at which Customs is stationed and carriers from foreign ports, foreign goods and persons are permitted to arrive.

Port of Export

A place where Customs is stationed to control departures of carriers, passengers, and goods to foreign countries.

Port-of-Origin Air Cargo Clearance

(USA) U.S. Customs clearance at foreign airports to facilitate the procedures before arrival in the U.S.

Portfolio Investment

In investment, the collective term for all the securities held by one person or institution.

Post-Shipment Verifications

(USA) An inspection or other action to determine that an exported strategic commodity is being used in the places and for the purposes for which its export was licensed.

Postdated Check

A check delivered prior to its date, generally payable on or after the day of its date.

Preference

1.A creditor's right to be paid before other creditors of the same debtor.
2. A trade preference is the granting of a preferred status to some or all of the goods of a preferred country, such as lower rates of duty or admissibility of goods in quantities over and above those normally permitted.

Preferential Tariff

A tariff which imposes lower rates of duty on goods imported from some countries.

Preferred Country

A country which has lower rates of duty imposed on its goods or is given other preferential trade treatment by another country.

Premium

1. A bounty or bonus above a regular price, paid as an incentive to do something.
2. The price of insurance protection for a specified risk for a specified period of time.Comment: Meaning numbered 1 above indicates that one meaning of "Premium" is: Something in addition to the regular price. In meaning numbered 2 "Premium" is the price itself.
3. A "give-away" - a reward or prize.

Prepaid

1. A notation on a shipping document indicating that shipping charges have already been paid by the shipper to the carrier, or it is an expression of the intention that payment is to be made by the shipper.
2. An expense paid before it is currently due.
3. A service or good paid for before it is delivered.

Prepaid Charges

In transportation, this term may mean that all charges, including freight, are to be paid by the shipper. Or, it may mean that only those charges designated as "prepaid" are to be paid by the shipper with other charges to be collected from the receiver. Which charges are which are generally decided by prior agreement.

Price Support

Subsidy or financial aid offered to specific growers, producers, or distributors, in accordance with governmental regulations to keep market prices from dropping below a certain minimum level.

Priority Air Freight

Reserved air freight or air express service wherein certain shipments by special arrangement, at extra cost, have a priority after mail and the small package services.

Private Corporation

A business corporation with shares that are not traded among the general public.

Procurement

The act of obtaining; attainment; acquisition; purchasing; buying.

Product Groups

Classification of products into groups for various purposes: statistics, export control, import quotas etc.

Productivity

A measurement of the efficiency of production.


Promissory Note

A written pledge to pay

Proof of Delivery

Evidence that one party has turned over something (cargo) to another. Commonly, in transportation, a signed, dated acknowledgement of receipt.

Proprietor

A person who has an exclusive right or interest in property or in a business (the owner.)

Proprietorship

A business, usually unincorporated, owned and controlled by one person (sole proprietorship.)

Protectionism

The deliberate use or encouragement of restrictions on imports to enable relatively inefficient domestic producers to compete successfully with foreign producers, or to protect and preserve those industries and producers considered of critical national interest.

Protective Service

Some airlines offer a protective service where shippers can arrange to have their shipments under carrier surveillance at each stage of transit.

Protective Tariff

A duty or tax on imported products to make them more expensive in comparison to domestic products.

Protest

1. (USA) The procedural means by which an importer, consignee, or other designated party may challenge a customs decision.
2. An action required to be taken in some countries in order to protect one's rights to seek legal remedies when a collection is dishonored.

Public Corporation

1. A business corporation with shares traded among the general public, such as through a stock exchange.
2. Also, an instrumentality of the state, founded and owned by the public interest, supported by public funds, and governed by those deriving their authority from the state.

Published Rate

1. The freight charges for a particular class and quantity of cargo as published in a carrier's tariff.
2. The service charges of many kinds of public utilities (usually government regulated enterprises) which are published in tariffs for public information.

Purchase Order

A purchaser's written offer to a supplier formally stating all terms and conditions of a proposed transaction.





Quantitative Restrictions

Explicit limits, or quotas, on the physical amounts of particular commodities that can be imported or exported during a specified time period, usually measured by volume but sometimes by value. The quota may be applied on a selective basis, with varying limits set according to the country of origin or destination, or on a quantitative global basis that only specifies the total limit and thus tends to benefit more efficient suppliers.

Quarantine

1. The term during which an arriving ship or airplane, including its passengers, crew and cargo, suspected of carrying a contagious disease, is held in isolation to prevent the possible spread of the disease.
2. The place in which a person or carrier under quarantine is held.

Quay

A structure built for the purpose of mooring a vessel; also called a pier.

Queue

A line of people, vehicles etc., especially a waiting line as before a ticket window or a toll booth.

Quid Pro Quo

1. A mutual consideration; securing an advantage or receiving a concession in return for a similar favor.
2. A mutual consideration which passes between the parties to a contract, and which renders it valid and binding.

Quota

A limitation on the quantity of goods that may be imported into a country from all countries or from specific countries during a set period of time. Export quotas have similar parameters.

Quota System

(USA) A part of the U.S. Customs' Service Automated Commercial System, which controls quota levels (quantities authorized) and quantities entered against those levels.

Rail Waybill

A document used to control the transportation of a shipment of goods via rail. It is similar in content to an inland bill of lading, with freight and other charges, and routing.

Rate Of Exchange

The price at which the money of one country can be exchanged for the money of another country.

Real Rights

Rights in real estate or in items attached to real estate.

Realignment of Currencies

Simultaneous and mutually coordinated revaluation and devaluation of the currencies of several countries.

Receipt

1. Any written acknowledgment of value received. It is a mere admission of a fact without containing any affirmative obligation.
2. Receipt of goods means taking possession of goods.

Received For Shipment Bill Of Lading

A bill of lading which confirms the receipt of goods by the carrier for transportation on a particular vessel, but not their actual loading on board the vessel nor their actual shipment.

Receiving Papers

In transportation, paperwork that accompanies a shipment when it is brought to a carrier.

Reciprocal Trade Agreement

An international agreement between two or more countries to establish mutual trade concessions that are expected to be of equal value.

Reciprocity

The process by which governments extend similar concessions to each other.

Reconsignment

In transportation, a change in the name of the consignee; a change in the place of delivery; or relinquishment of the shipment by the carrier at the point of origin.

Recourse


Term describing a type of loan. If a loan is with recourse, the lender has a claim against the parent company in case of default

Redeliver

1. To yield and deliver back a thing.
2. (USA) In U.S. Customs, it is a demand by customs to return to Custom's custody goods for reexamination, detention, re-export or destruction.

Reefer Container

A controlled temperature shipping container (usually refrigerated with a self-contained refrigeration unit).

Reexport

The export of imported goods without appreciable added value.

Refund

1. To repay or restore. To return money in restitution or repayment. To return overpaid charges
2. That which is refunded. The amount returned.
3. To fund again or renew; specifically to borrow in order to pay off an existing loan with the proceeds.

Relay

In marine transportation, a procedure in which a shipment is shipped to an intermediate port and transferred to another vessel for delivery to the ultimate destination port.

Remittance

Funds forwarded from one person to another.

Replevin

A legal action for the recovery of property brought by the owner or party entitled to repossess the property against a party who has wrongfully kept it.

Request For Quotation

A negotiating approach whereby the buyer asks for a price quotation from a potential seller for specific goods.

Rescind

To abrogate, annul, avoid, cancel a contract; declare it void in its inception and put an end to it as though it never were.

Reserved Freight Space

A service by some carriers (airlines and ship lines) enabling shippers to reserve freight space on designated voyages.

Restricted Letter of Credit

A letter of credit which restricts negotiation to the bank the issuing bank has nominated in the credit.

Restrictive Business Practices

Actions in the private sector designed to restrict competition in order to keep prices relatively high.

Retaliation

1. the return of evil for evil.
2. Action taken by a country to restrain its imports from a country that has increased a tariff or imposed other measures that adversely affect its exports.

Revaluation

1. The restoration of the value of a nation's currency that had once been devalued in terms of the currency of another nation.
2. The restoration of purchasing power to an inflated currency.
3. Restoration of the value of a currency
4. Currencies of countries undergoing inflation are more often "devalued," meaning that either by market forces or by declaration of the issuing government, a greater number of units of its currency are required to purchase other currencies. When the reverse occurs, usually in an attempt to restore the purchasing power of an inflated currency, this is called "revaluation."

Reverse Preferences

Tariff advantages offered by developing countries to imports from certain developed countries that had granted them trade preferences in the past .(This practice has generally ceased) .

Revolving Letter of Credit

A letter of credit which when drawn upon is automatically restored to its full amount, periodically, or after a particular event prescribed in the credit.

Risk Position

The condition of an asset or liability which is exposed to fluctuations in value (on the international markets this would include changes in exchange rates or interest rates as well as changes in market value)

Road Waybill

Transport document is used to control shipments of goods via truck. It contains the same information as an inland bill of lading, with freight and other charges, and routing.

Roll on, Roll off

A category of ships designed to load and discharge cargo which rolls on wheels, and as the name says is driven onto the decks of the vessel and driven off.

Rollover Credit

Short term notes or loans which may be extended after the initial due date.

Route

1. A customary or regular line of passage or travel.
2. The course or direction that a particular shipment moves.
3. To direct the routing of a shipment (and whose services shall be employed).

Royalty

Compensation for the use of property, usually copyrighted or patented material or natural resources, based on an agreed percentage of the income arising from its use or an amount per unit produced.












Sales Agreement


A written document (a contract) by which a seller agrees to convey property to a buyer for a stipulated price under specified conditions.

Sales Tax


A tax placed by a state or municipality on items at the time of their sale, usually a percentage of the purchase price.

Salvage


1. Compensation paid for the rescue of a ship, its cargo or passengers from the perils of the sea;
2. or, the act of saving a ship or its cargo from possible loss;
3. or, property saved from a wreck or fire.

Samurai Bond


Bond issued on the Japanese market in yen for non-Japanese borrowers.

Sanction


1. A punitive act taken by one or more nations against another nation which has violated a treaty or international law.
2. A proviso in a law to secure its enforcement by imposing a penalty for its violation or offering a reward for its observance.

Seal


A mark or sign that is used to attest the execution of an instrument, contract, or other document.

Seaworthiness


The fitness or safety of a vessel for its intended use.

Secured


Guaranteed as to payment by the pledge of something valuable as security or collateral.

Security


1. Property pledged as collateral to a debt.
2. Protection; assurance; indemnification.
3. A document that indicates evidence of indebtedness or of equity interest - including notes, bonds, debentures, stocks, certificate of interest, etc. which may be traded on an exchange.

Seizure


The act of taking possession of property.

Seller's Market


Exists when goods are in short supply compared to the demand, at which point the economic forces of business tend to cause goods to be priced at the vendor's estimate of value.

Selling Rate


Rate at which a bank is willing to sell foreign exchange or to lend money.

Service A Loan


To pay interest due on a loan.

Settlement Date


The date on which payment for a transaction must be made.

Shared Foreign Sales Corporation


(USA) A foreign sales corporation formed to make export sales and earn favorable tax treatment thereon. A Shared Foreign Sales Corporation requires more than one and less than 25 unrelated exporters.

Ship's Manifest


A list of the individual shipments constituting the ship's cargo.

Ship's Papers


The documents a ship must carry to meet the safety, health, immigration, commercial and customs requirements of a port of call or of international law.

Ship's Stores


The food, medical supplies, spare parts and other provisions carried for the day-to-day running of a vessel.

Shipment


1. Delivery of cargo to a carrier for transportation.
2. The transportation of goods.
3. The property which is the subject of transportation.

Shipped On Deck


Goods shipped on the deck of a vessel. The bill of lading covering goods shipped on deck must be annotated to that effect.

Shipper


1. One who transports goods for a charge. In normal usage, such a person would be called a carrier, but carriers are also called "shippers"
2. One who tenders goods to a carrier for transportation.
3. The sender of goods to be transported as distinct from the receiver or the consignee.

Shipping Order


Instructions from a shipper to a carrier for the transportation of goods.

Short Form Bill of Lading


A bill of lading on which the detailed conditions of transportation are not listed in full, but instead there is a statement which declares them to be incorporated by reference, and states the place where they are available.

Short of Exchange


The position of a foreign exchange trader who has sold more foreign currency of a particular country than he has in possession to cover sales.

Short Weight


Any shipment found to weigh less than the documents indicate, be it a bill of lading, a dock receipt, a warehouse receipt, an inspection certificate, or a weight tally.

Shortage


A deficiency in quantity shipped, stored, or received.

Sling


A contrivance into which freight is placed to be hoisted into or out of a ship.

Slip


A vessel's berth between two piers.

Small Package Service


A specialized service to guarantee the delivery of small parcels within specified express time limits.

Smuggling


Moving goods across a customs frontier in a clandestine manner, evading customs control. It may be goods on which duty and taxes have been avoided, or it may be goods which are not permitted to be imported or exported.

Soft Currency


The currency of a country that is not readily accepted by other countries and is not readily converted into currencies which are readily acceptable (hard currencies).

Soft Loan


A loan made with easy or generous terms such as low or no interest and long payback.

Sovereign Credit


A direct borrowing or a borrowing guaranteed by the government of a sovereign state.

Sovereign Risk


1. The risk to a lender that the government of a sovereign state may default on its financial obligations.
2. Also, the risk to a lender that unfavorable changes in the borrowers overall currency exchange position might imperil the payment of a loan.
3. Also the risk to a lender that unfavorable political events in the country of the debtor might imperil repayment.

Special Rates


Rates that apply to cargo traffic under special conditions and usually to and from a limited number of points.

Specific Commodity Rate


With reference to freight rates, it is a favorable freight rate usually applicable to certain classes of commodities which move in large volume shipments.

Specific Rate of Duty


A specified amount of duty per unit of weight or other quantity.

Spot Cash


Immediate cash payment on a transaction.

Spot Exchange


The purchase and sale of foreign exchange for delivery and payment at the time of the transaction.

Spot Exchange Rate


The price of one currency expressed in terms of another currency at a given moment in time.

Spot Market


The market for a commodity or foreign exchange available for immediate delivery.

Spot Operations


Foreign exchange dealings and commodity trading in which settlement of the mutual delivery and payment commitment is made immediately.

Spot Price


The selling of goods or commodities for immediate delivery.

Spot Rate


The rate (price per unit) for purchase or sale of a commodity or foreign exchange for immediate delivery.

Spotting


The placing (or parking) of a container in the place where required, to be loaded or unloaded, or held for further action.

Standby Commitment


A bank commitment to loan money up to a specified amount for a specific period, to be used only in a certain contingency.

Standby Letter of Credit


A letter of credit which a bank issues on behalf of its customer to serve as a guarantee to the beneficiary of the letter of credit that the bank's customer will perform a specified contract with the beneficiary. If the customer defaults, the beneficiary may draw funds against the letter of credit as penalties or as payments, whichever the terms of the credit provide.

Steamship (or steamer)


Vessels powered by steam engines. However, the term is often used to describe powered vessels in general, and companies who operate ocean going cargo vessels are often called "steamship companies" despite the fact that the use of steam power for ocean going vessels is obsolete, the modern standard being diesel engines fueled by oil.

Steamship Indemnity


A contract of indemnity issued by a bank to an ocean carrier indemnifying the carrier for any loss incurred for release of goods without surrender of the original bill of lading properly endorsed.

Stevedore


1. A person having charge of the loading and unloading of ships in port.
2. Sometimes used to indicate those laborers who actually perform the physical work of loading and unloading a ship (usually called longshoremen.)

Storage


The keeping of goods in a warehouse or other repository.

Storage Demurrage


A storage charge made on property remaining on the dock or terminal past the permitted "free-time period".

Storage in Transit


The stopping of freight traffic at a point located between the point of origin and destination to be stored and reforwarded at a later date.

Store-Door Delivery


The movement of goods to the consignee's place of business, customarily applied to movement by truck.

Stowage


The arranging and packing of cargo in a vessel for shipment.

Stowage Instructions


Specific instructions given by the shipper or his agent concerning the way in which cargo is to be handled or stowed. It may refer to the location in the hold, whether a particular side is to be on top, the kind of other cargo it may not be near, the number of pieces which may be stacked, what implements may not be used to move it, such as "use no hooks" on bales, etc.

Stowplan


A diagram showing where cargo has been placed in a vessel (also known as a stowage plan.)

Straight Bill of Lading


A nonnegotiable bill of lading that designates a consignee who is to receive the goods and obligates the carrier to deliver the goods to that consignee only.

Strike Clause


An insurance clause which may be included in policies to cover against losses as a result of strikes, riots and civil commotions.

Stripping


The unloading of cargo from a container or truck; (also called devanning.)

Stuffing


The loading of cargo into a container.

Subsidiary


Any organization more than 50 percent of whose voting stock is owned by another firm.

Subsidy


A grant paid by a government to producers or exporters of goods to strengthen their competitive position.

Supply Access


Assurances sought by importing countries that they will, in the future, have fair and equitable access at reasonable prices to supplies of raw materials and other essential imports.

Surcharge

A charge or tax above the usual or customary charge.

Surety

A bond or other security that protects a person, corporation, or other legal entity in case of another's default in the payment of a given obligation, improper performance of a given contract, malfeasance of office, etc. The one who undertakes to be the surety is primarily liable in case of the default.

Survey

1. To examine and report on the condition of a vessel for purposes of establishing seaworthiness, value, or dimensions.
2. To examine and report on the condition of goods or a structure.
3. To examine and report on the condition of goods or property after a casualty to determine the extent of the loss and the probable cause. (Often to support an insurance claim, - although there may be a claim without insurance being involved.)
4. The reports described above, generally conducted by an independent third party, called "a surveyor."

Sushi Bond


Eurodollar bonds issued by Japanese corporations on the Japanese market for Japanese investors.

Swap (transactions)

A kind of financial transaction which has many variations, usually highly complex. They generally involve a simultaneous exchange of assets (the swap) by counterparties for other different assets of comparable value. The assets may be commodities or they may be financial instruments involving interest rates, cash flows, foreign exchange, debts or equities. In addition to financial profits, the swaps have many purposes such as limiting risks, overcoming restrictions in certain markets, or balancing portfolios.

Switch Arrangements

A form of countertrade in which the seller sells on credit and then transfers the credit to a third party at a discount. Or, in another type of switch, the rights to purchase certain goods, resulting from a countertrade operation, are sold to a third party at a discount.





Tare Weight

The weight of a container and/or packing materials, but without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. (In other words, the weight of the packing.)

Tariff

1. A comprehensive list or "schedule" of merchandise with applicable duty rates to be paid or charged for each listed article; together with governing rules and regulations.(A "customs" Tariff.)
2. A schedule of rates and charges applied by a business, especially a common carrier, together with a description of the services offered and the rules and regulations applicable.

Tariff Anomaly

In a customs tariff, a tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product.

Tariff Escalation

In a customs tariff, a situation in which duties on raw materials are nonexistent or very low; duties on semi-processed goods are moderate; and duties on manufactured goods are relatively high.

Tariff Rate Quotas

(Customs) Application of a higher duty rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate.

Tariff Schedule

(Customs) A comprehensive list of the goods which may be imported into a country, and the import duties applicable to each product.

Tariff War

(Customs) When one nation increases the tariffs on goods imported from, or exported to another country, and that country then follows by raising tariffs itself in a retaliatory manner.

Tax Haven

A nation offering low tax rates and other incentives for individuals and businesses of other countries to locate there.

Temporary Importation (Admission Temporaire)

A customs procedure under which certain goods can be brought into a customs territory temporarily, conditionally relieved from the payment of import duties and taxes; such goods must be imported for a permitted purpose and must be intended for exportation within the permitted period.

Tender

1. A small vessel which serves a larger vessel in a port for the purpose of supplying provisions and carrying passengers to and from ship to shore.
2. An offer of money. An offer to supply something. An offer to present something.
3. To satisfy a claim, an unconditional offer to perform coupled with a manifest ability to carry out the offer.
4. A car connected behind a steam railroad locomotive to carry coal and water. (Almost obsolete).

Tenor

The term fixed for the payment of a draft or debt.

Terminal

An facility which is used by a rail, ship, air, or truck line as a place for receiving and delivering cargo; loading; unloading; transferring; temporarily storing; recoopering; and similarly handling freight; and repairing and servicing equipment..

Terminal Charge

A charge made for services performed at transportation terminals.

Terms of Trade

The ratio of the index of export prices to the index of import prices. (Note the difference from "Trade Terms"

Third World Countries

Developing countries, especially in Asia, Africa, and Latin America.

Through Bill of Lading

A single bill of lading covering receipt of cargo at a point of origin for delivery to an ultimate consignee, usually involving multiple carriers and multiple modes of transport.

Through Rate

A shipping rate applicable to transportation from point of origin to destination where multiple carriers and multiple modes of transport may be involved.

Tied Loan

A loan made by a government that requires a foreign borrower to spend the proceeds in the lender's country.

To Order

A term on a financial instrument or title document indicating that it is negotiable and transferable.

Tracer

A request upon a transportation line to trace a shipment for the purpose of locating its whereabouts, expediting its movement or establishing delivery.

Tracking

A carrier's system of recording movements of shipments from origin to destination.

Trade Acceptance

A draft drawn by the seller of goods upon the buyer who agrees to pay by signing "accepted" on the draft.

Trade Deficit

A nation's excess of imports over exports over a period of time.

Trade Name

The name under which an organization conducts business, or by which the business or its goods and services are identified.

Trade Promotion

Encouragement of the progress, growth, or acceptance of trade. (Note: Some would define it solely as the encouragement of exports.)`

Trade Surplus

A nation's excess of exports over imports over a period of time.

Trade Terms

The setting of responsibilities of the buyer and seller in a sale including sale price, the payment of costs such as shipping, insurance, and customs; the arranging of the performance of these activities; and the determination of when title passes. (Note the difference from "Terms of Trade")

Trailer

A vehicle without motor power designed to be drawn by another vehicle.

Tramp Line

A transportation line operating tramp steamers in waterborne commerce.

Tramp Steamer

A vessel which does not operate under any regular schedule from one port to another, but calls at any port where cargo may be obtained and charges a negotiated amount of freight. Usually they transport breakbulk or bulk cargo.

Trans-Ship

1. To transfer goods from one transportation line to another, or from one ship to another, or from one airline to another in order to complete a delivery .
2. To ship to one country, and then to re-export to another. (Sometimes the second exporting country may be incorrectly represented as the country of origin.)

Transaction Value

(USA) The price actually paid or payable for merchandise imported.

Transfer Of Technology

The movement of modern or scientific methods of production or distribution from one enterprise or country to another.

Transfers (mail, wire, cable)

A transfer is the remittance of a sum of money to a party in another place. This may be accomplished by mailing cash or drafts or using the services of a commercial bank or a wire transfer company for a fee.

Transit Zone

An area in a port of entry in a coastal country that is established as a storage and distribution center for the convenience of a neighboring country which lacks adequate port facilities or access to the sea.

Transmittal Letter

In international commerce, a letter from the shipper or their agent transmitting documents relative to a shipment. Usually there will be included a list of the documents enclosed and details covering the transportation of the shipment such as the name of the carrier, date of departure etc..

Transparency

The extent to which laws, regulations, agreements, and practices affecting international trade are open, clear, measurable, and verifiable.

Transport Documents

All types of documents evidencing acceptance, receipt and shipment of goods.

Transportation and Exportation Entry

(USA) Customs entry used when merchandise arrives in the U.S. and is moved in bond to another U.S. port for re-export to a foreign country.

Traveler

One who passes from place to place, whether for pleasure, instruction, business or health.

Traveler's Checks

A check designed for business travelers and tourists, issued by a financial institution of sufficient importance that it will be readily accepted or cashed by businesses and banks. For safety it is often designed to be countersigned twice by the traveler in order to be valid, once at issuance and once upon being cashed.

Triangular Trade

Trade between three countries which creates a more favorable flow of trade for each than would exist between only two of them dealing directly with each other.

Tropical Products

Agricultural goods grown in tropical zones ...coffee, tea, spices, bananas, and tropical hardwoods etc,

Trust Receipt

A written declaration by a customer to a bank that ownership in goods released by the bank is retained by the bank, and that the client has received the goods in trust only. Such a trust receipt may be is given by the customer to the bank to induce the bank to issue a letter of indemnity to a carrier to release a shipment.

Turnkey

A term for a method of construction whereby the contractor assumes total responsibility from design through completion of the product and release to the client in a stage so complete that the buyer need only to turn the key to open the door and walk into a facility that is ready to operate.

Turnkey Contract

An agreement under which a contractor agrees to complete a product so that it is ready for use when delivered to the other contracting party.

Two-tier Market

An exchange rate regime employed in some countries with managed currency exchange rates where the more favorable rates are maintained for selected activities..

Tying Arrangement

A condition that a seller imposes on a buyer, requiring that if the buyer desires to purchase one product (tying product), the buyer must also agree to purchase another product (tied product), which the buyer may or may not want. The laws of some countries prohibit certain tying arrangements, for example in the U.S. the Clayton and the Sherman anti-trust Acts.





Ultimate Consignee

The person who is the true party in interest, receiving goods for the designated end use.

UN/Edifact

United Nations Electronic Data Interchange for Administration, Commerce and Transport: A United Nations approved Electronic Data Interchange standard.

Unconfirmed Letter Of Credit

A type of letter of credit bearing the obligation of the issuing bank only, not of any other bank.

Unconscionable

Unreasonable; outrageous. Courts in many countries may refuse to enforce contracts which they deem to be unconscionable.

Underdeveloped Country

A nation which, comparative to others, lacks industrialization, infrastructure, developed agriculture, and developed natural resources, and suffers from a low per capita income as a result.

Unfair Trade Practice

Unusual government support to firms, ranging from export subsidies to anti- competitive practices by the firms themselves, such as dumping, boycotts or discriminatory shipping arrangements, that result in competitive advantages in international trade for the benefitting firms.

Uniform Commercial Code

(USA) A law governing commercial transactions (sales of goods, commercial paper, bank deposits and collections, letter of credits, bulk transfers, warehouse receipts, bills of lading, investment securities, and secured transactions) adopted by all states in the US except Louisiana.

Unit Load

Various cargo carrying devices, or sizes of containers, which carry several smaller shipping packages, including the banding together of a number of individual packages on a pallet to create a single unit.

Unit Load Device

Term commonly used when referring to containers and pallets and similar devices which consolidate packages of freight for mechanical handling.

United Nations Conference On Trade And Development

A part of the UN General Assembly which promotes international trade and seeks to increase trade between developing countries and countries with different social and economic systems.

United Nations Industrial Development Organization

Established in 1967, under the UN Secretariat, UNIDO serves as a specialized agency to foster industrial development in lesser developed countries through offering technical assistance in the form of expert services, supplying equipment and/or training.

United States And Foreign Commercial Service

United States And Foreign Commercial Service An agency of the U.S. Department of Commerce that helps U.S. firms be more competitive in the global marketplace.

United States Code (USC)

A set of volumes containing the official compilation of U.S. law. are also local offices of the U.S. Government Printing Office in major U.S. cities.

United States Customs Service (USCS)

U.S. governmental agency whose primary duties include the assessment and collection of all duties, taxes and fees on imported merchandise, and the enforcement of customs and related laws and treaties.

United States Department Of Agriculture

An executive department which serves as the principal adviser to the president on agricultural policy. which works to improve and maintain farm income, implement nutrition programs and develop and expand markets abroad for U.S. agricultural products. It is also charged with inspecting and grading food products for safe consumption.

United States Department Of Commerce (DOC)

An executive department which encourages and promotes the United States' economic growth, international trade, and technological advancement.

United States Department Of Defense

A civilian executive department providing the military forces needed to deter war and protect the security of the U.S.

United States Department Of Energy (DOE)

An executive department created in 1977 to consolidate all major Federal energy functions into one department. The principal programmatic missions are energy programs, weapons and waste clean-up programs, and science and technology programs.

United States Department Of Labor (DOL)

An executive department which promotes and develops the welfare of U.S. wage earners, improves working conditions, and advances opportunities for profitable employment. The DOL keeps track of changes in employment, prices, and other national economic measures.

United States Department Of State

An executive department which directs U.S. foreign relations and negotiates treaties and agreements with foreign nations. Activities of the State Department are coordinated with foreign activities of other U.S. departments and agencies.

United States Department Of The Interior (DOI)

An executive department that has responsibility for most U.S. federal government owned public lands and natural resources; the principal U.S. conservation agency. The office of Territorial and International Affairs oversees activities pertaining to U.S. territorial lands and the Freely Associated States and coordinates the international affairs of the Department.

United States Department Of The Treasury

An executive department which performs four basic functions: formulating and recommending economic, financial, tax and fiscal policies; serving as financial agent for the U.S. government; enforcing the law; and, manufacturing coins and currency.

United States Department Of Transportation (DOT)

An executive department of the U.S. government which is responsible for the development of national transportation policies.

United States Information Agency (USIA)

Responsible for the U.S. government overseas information and cultural programs, including Voice of America. Conducts a wide variety of communication activities-academic and cultural exchanges to press, radio, television and library programs abroad in order to strengthen foreign understanding of American society, obtain greater support of U.S. policies, and increase understanding between the U.S. and other countries.

United States International Trade Commission

An independent fact-finding agency of the U.S. government that studies the effects of tariffs and other restraints to trade on the U.S. economy. It conducts public hearings to assist in determining whether particular U.S. industries are injured or threatened with injury by dumping, export subsidies in other countries, or rapidly rising imports.

United States Price

(USA) In the context of investigations regarding dumping, this term refers to the price at which goods are sold to the U.S. compared to the sale price in the home market or in 3rd countries. The comparisons are used in the process of determining whether the imported merchandise is sold to the United States at less than fair value.

United States Trade And Development Agency

The U.S. Trade and Development Agency assists in the creation of jobs for Americans by helping U.S. companies pursue overseas business opportunities. Through the funding of feasibility studies, orientation visits, specialized training grants, business workshops, and various forms of technical assistance, we help American businesses compete for infrastructure and industrial projects in middle-income and developing countries.

United States Trade Representative

A cabinet-level official with the rank of Ambassador who is the principal adviser to the President on international trade policy, and has responsibility for setting and administering overall trade policy. The U.S. Trade Representative is concerned with the expansion of U.S. exports.

United States Travel And Tourism Administration

An organization within the Department of Commerce which: stimulates demand internationally for travel to the United States, coordinates marketing projects and programs with U.S. and international travel interests, encourages and facilitates promotion in international travel markets by U.S. travel industry principals, works to increase the number of new-to-market travel businesses participating in the export market, generates cooperative marketing opportunities for private industry and regional and local governments, researches and provides timely and pertinent data, carries on training programs in international marketing for U.S. professionals, and works to remove government imposed travel barriers.

United States-Canada Free Trade Agreement

The provisions of the US/Canada Free Trade Agreement were adopted by the US with the enactment of the FTA Implementation Act of 1988. The FTA reduced tariffs on imported merchandise between Canada and the U.S. and opened up new areas of trade in investment. It was followed by the North American Free Trade Agreement (NAFTA) which also includes Mexico.

Unitization

The practice or technique of consolidating many small pieces of freight into a single unit for easier handling.

Universal Copyright Convention

An international agreement that affords copyright protection to literary and artistic works in all countries that voluntarily agree to be bound by the Convention terms.

Unloading

1. The physical removal of cargo from a vessel, a truck, an airplane, a railroad car.
2. The physical removal of cargo from a container; also called devanning.

Unrestricted Letter Of Credit

A letter of credit which may be negotiated through any bank of the beneficiary's choice.

Uruguay Round

The eighth round of multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT). The Uruguay Round (so named because meetings began in Punta de Este, Uruguay in 1987) concluded in December, 1993 after seven years of talks between 117 member nations. From these negotiations the World Trade Organization came into being.

Usance

The common period fixed for payment by usage, custom, or habit of dealings between the country where a bill of exchange is drawn and that where it is payable. It varies according to the countries involved.

Users Fee

(USA) Assessments collected by the U.S. Customs Service to help defray various costs to Customs involved in the handling of shipments.









Validity


1. Validity - Legal sufficiency. Mere regularity in the execution of documents may not be enough for "legal sufficiency."
2. The time period for which a letter of credit is valid.

Valuation


The act of ascertaining the worth of a thing. The estimated worth of a thing.

Valuation Charges


Transportation charges assessed shippers who declare for carriage a value of goods higher than the carriers' limits of liability. They may be in lieu of or in addition to regular freight charges.

Value Added


The amount by which the value of an article is increased at each stage of its production, exclusive of initial costs.

Value Added Tax


An indirect tax on consumption that is assessed on the increased value of goods at each discrete point in the chain of production and distribution, from the raw material stage to final consumption. The tax on processors or merchants is levied on the amount by which they increase the value of items they purchase and resell.

Vendor


A company or individual that sells goods or services. A merchant, a retail dealer; a supplier; one who buys to sell.

Vessel Ton


A unit of measurement of vessels which provides that 100 cubic feet of vessel volume equals one ton.

Visa


A stamp, seal or endorsement on a document validating it for a particular use such as on a passport admitting the holder to a country, or on a license issued by the government of an exporting country for the export to a specific importing country of a certain quantity of a quota controlled commodity subject to a voluntary export restriction or a voluntary restraint agreement.

Volume Rate

A freight rate assessed in connection with a specified volume of freight based upon the premise that it will be substantial in total over a period of time. It is generally a lower rate than normally assessed for smaller lots of cargo.

Voluntary Export Restriction

An understanding between trading partners in which the exporting nation, in order to reduce trade friction, agrees to limit exports of a particular good to the other partner.

Voluntary Restraint Agreements

Informal bilateral or multilateral arrangements through which the exporting nations voluntarily restrain certain exports, usually through export quotas, to avoid economic dislocation in an importing country and to avert the possible imposition of mandatory import restrictions by the importing country

W


War Clause


A marine insurance provision excluding the liability of an insurer if a loss is caused by war or hostile action. Bills of Lading and charter parties may contain a "War Clause" giving the vessel options to maintain it's safety in case of hostilities.

War Risk


The risk to a vessel, its cargo and passengers by aggressive actions of a hostile nation or group.

War Risk Insurance


Insurance covering loss or damage caused by war or other hostile actions. Usually a separate policy from a marine insurance policy, or a special attachment to it.

Warehouse Receipt


A document issued by a warehouse listing the goods or commodities deposited in the warehouse. It is a receipt for the commodities listed, and for which the warehouse is the bailee. Warehouse receipts may be either non-negotiable or negotiable.

Warehouse, U.S. Customs Bonded


(USA) A privately owned and operated warehouse which has posted bond and has been approved by U. S. Customs where goods remain until duty has been collected from the importer.

Warranty


A promise by a contracting party that the other party can rely on certain facts or representations as being true.

Warsaw Convention


An international multilateral treaty which set the conditions of international transportation by air.

Waybill


A document prepared by a transportation line at the point of shipment for use in the handling of the shipment showing the point of origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service and other services connected with the transport It is similar in point of information to a bill of lading..

Webb-Pomerene Act Of 1918


(USA) Federal legislation exempting certain exporters' associations from certain antitrust regulations.

Webb-Pomerene Association


(USA) Associations engaged in exporting that handle the products of similar producers for overseas sales. These associations have partial exemption from U.S. anti-trust laws but the associations may not engage in import, domestic or third country trade, or combine to export services.

Weight Break


The point at which the weight of a shipment is large enough to be assessed the lower freight rates which are applicable to larger shipments, as per the carrier's tariff.

Wharfage


A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

Without Reserve


A term applied to a sale by auction indicating that no price is reserved (there is no minimum price.)

World Bank


The International Bank for Reconstruction and Development (IBRD), commonly referred to as the World Bank, is an intergovernmental financial institution located in Washington, DC. Its objectives are to help raise productivity and incomes and reduce poverty in developing countries through the granting of loans.

World Bank Group


An integrated group of international institutions that provides financial and technical assistance to developing countries.

World Trade Clubs


Local or regional based organizations in the United States and around the world of importers, exporters, customs brokers, freight forwarders, attorneys, bankers, manufacturers and shippers.

World Trade Organization


The international organization which resulted from the Uruguay Round of GATT negotiations. It is intended to promote world trade and to settle disputes among member nations.

Zip Code

(USA) A numerical code, established by the U.S. Postal Service, used for the purpose of routing mail and to identify delivery zones. Some foreign countries have a similar system. Carriers often apply this code in the same manner in the handling of freight and the determination of freight charges.

Zone Status

(USA) Merchandise admitted to a U. S. Foreign Trade Zone may be given a special status which affects what may done with it. For example: when entered into the U. S. Customs territory it may be dutiable at rates and values applicable at that time; or it may be given a status which fixes the applicable rates and values at those in effect at the time when it was admitted to the zone; or it may have a status which denies entry to the U.S.A. altogether.

Zone User

(USA) A corporation, partnership or party that uses a U.S. foreign trade zone for storage, handling, processing, or manufacturing merchandise, whether foreign or domestic.