Import - Export Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accessorial Service – A service rendered by a carrier in addition to a transportation service, such as assorting, packing, precooling, heating, storage, etc.
Act of God – An irresistible super-human cause, such as no reasonable human foresight, prudence, diligence and care can anticipate and/or prevent.
Ad Valorem – A freight rate set at a certain percentage of the value an article is known as ad valorem rate.
Advance – Cargo originally booked to a ship but moved (advanced) to a carrier ship. Cargo must be physically available for loading, have all required paperwork in hand and have received customer’s permission.
Agent – A person authorized to transact business for and in the name of another.
Aggregated Shipments – Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.
Agreed Valuation – The value of a shipment agreed upon in order to secure a specific rating and/or liability.
Airway Bill – An airway bill is the same as an ocean ill of lading which serves as a receipt for the goods as well as a contract to deliver the goods to a designated person but is not negotiable.
Allowance – (a) A sum granted as a reimbursement or repayment.
                        (b) A deduction from the gross weight or value of goods.
Alternative Tariff – A tariff containing two or more rates from and to the same points, on the same goods, with authority to use the one which produces the lowest charge.
Arbitrary –    (a) A fixed a mount which a transportation line agrees to accept in dividing joint rate.
                        (b) A fixed amount added to or deducted from one point to make a rate from another point.
                        (c) A fixed amount added to or deducted from a rate to one point to make a rate to another point.
Arrival Notice – A notice, furnished to consignee and broker, alerting them to the projected arrival of freight and availability of freight for pick-up.
As/Is – A term indicating that goods offered for sale are without warranty or guarantee. The purchaser has o recourse on the vendor for quality of the goods.
Back Order – That portion of an order that cannot be delivered at the scheduled time, but will be delivered at a later date.
Bill of Lading – Straight Bill of Lading – A on-negotiable document by which a transportation line acknowledges receipt of freight and contracts for its movement. The surrender of the original Straight Bill of Lading is not required by transportation lines upon delivery of the freight, except when necessary for the purpose of identifying the consignee. Order Bill of Lading – A negotiable document by which transportation line acknowledges receipt of freight and contracts for its movement. The surrender of the original Order Bill of Lading, properly endorsed is required by transportation lines upon delivery of the freight, in accordance with the terms of the Bill of Lading.
Bill of Sale – A contract for the sale of goods.
Blank Endorsement – It is used in conjunction with negotiating Bills of Lading in which the title of the merchandise is passed on to account party by endorsement. The shipper is signing the Bill of Lading, therefore, the holder of the blank endorsed Bill of Lading can take possession of the merchandise.
Blanket Rate-   (a) A rate applicable fro and/or to a group of points
                        (b) A special rate applicable on several different articles in a single shipment.
Bob Tail – A tractor without a trailer.
Bona Fide – In good faith.
Bonded Warehouse – A warehouse owned by persons approved by the Treasury Department, and under bond or guarantee for the strict observance of the revenue laws; utilized for storing goods until duties are paid or goods are otherwise properly released.
Bond of Indemnity – An agreement made with a transportation line relieving it from liability for any action on its part for which it would otherwise be liable.
Booking – The act of recording arrangements for the movement of goods by vessels.
Break Bulk – To unload and distribute a portion or all of the contents of a car. Method of handling cargo by the piece in non-containerized mode.
Captain’s Protest – A document prepared by the captain of a vessel on arriving at port, showing conditions encountered during voyage – generally for purpose of relieving ship owner of any loss to cargo, thus requiring cargo owners to look to insurance company for reimbursement.
Cargo Tonnage – Weight tons vary depending on the trade route. The most frequently used are short ton – 2,000 lbs., long ton – 2,240 lbs. And kil ton – 2,204.6 lbs.

                        Measurement tons also vary. The most frequently used are measurement ton – either 40 cubic feet or cubic meter; metric ton – one cubic meter.
Caribbean Basin Initiative – (CBI) – A program providing for the duty-free entry of merchandise from designated beneficiary countries or territories. This program was enacted by the United States as the Caribbean Basic Economic Recovery Act, became effective January 1, 1984 and will expire on September 30, 1995, unless the Congress takes action to extend it.
Carrier – An individual, partnership or corporation engaged in the business of transporting goods.
Cartage – The charge made for hauling freight on carts, drays or trucks.
Caveat Emptor – “Let the buyer beware.” The purchaser buys at his own risk.
Certificate of Origin – A certified document as to the origin of goods. In the United States these certificates are issued by Chamber of Commerce.
CFS – (Container Freight Station) – A facility used by ocean carrier to load/unload cargo to and from containers.
Chassis – A special trailer or undercarriage on which containers are moved over the road.
Classification (freight) – A publication containing a list of articles and the classes to which they are assigned for the purpose of applying class rates, together with governing rules and regulations.
Clean Bill of Lading – A Bill of Lading receipted by carrier for merchandise in good condition (no damage, loss, etc., apparent) and which does not bear such notations as “Shipper’s Load and Count,” etc.
Closed Conference – A conference which reserves to itself the right to refuse membership to applying carriers.
Commodity – Any article of commerce. Goods shipped.
Common Carrier – A transportation line engaged in the business of handling persons or goods for compensation and for all persons impartially.
Commercial Invoice – Signed by the seller or shipper, or his agent, is acceptable for customs purposes of it is prepared in accordance with Section 141.86 Customs Regulations and in the manner customary for a commercial transaction involving goods of the kind covered in the invoice.
Concealed Damage – A damage to the contents of a package which is in good order externally.
Conference – A group of ocean freight carriers banding together, voluntarily, for the purpose of limiting and regulating competition among themselves. It may establish uniform tariff freight charges and terms and conditions of service. Conference establishment in U.S. requires Federal Maritime Commission approval. They are exempt from anti-trust regulation.
Consignee – The person or corporation to which articles are shipped.
Consular Invoice – A document required by some foreign countries showing exact information as to consignor, consignee, value description, etc. of shipment.
Consumption Entry – A U.S. customs entry whereby the importer pays applicable duty immediately and the merchandise is released fro customs custody immediately at a U.S. port.
Container – The equipment which carries cargo on ship, tail and truck. Also called box. There are many types of containers. See end loading container, open op, ventilated container, refrigerated container, dry bulk container, bulk liquid container, flat rack, automotive carrier, livestock carrier and insulated container.
Container Yard – A location for parking trailers awaiting further movement.
Contract – An agreement between two or more competent persons to perform or no to perform a specific act or acts. May be verbal or written. (A purchase order, when accepted by a vendor, becomes a contract).
Contract Carrier – Any person not a common carrier who, under special and individual contracts and agreements, transports passengers or property for compensation.
Cost, Insurance and Freight (CIF) – Cost of goods, marine insurance, and all transportation charges are paid to the foreign point of delivery.
Cost Plus – A pricing method whereby the purchaser agrees to pay the vendor an amount determined by the costs incurred by the vendor to produce the goods or services purchased, plus a fixed percentage of that cost for profit.
Cubic Foot – 1,728 cubic inches.

Custom House – The government office where duties, tolls or imposts placed on imports or exports are paid and vessels entered or cleared.

Customs Tariff – (TSUS—tariff schedule of U.S.) – A schedule or charges assessed by the government on imported or exported goods
CY (Container Yard) – A facility where containers, either empty or loaded, are stored.
Dating – A method of granting extended credit terms used by the seller to induce buyers to receive goods in advance of required delivery date.
Delivery – The act of transferring possession, such as the transfer of property from consignor to carrier, one carrier to another, or carrier to consignee.
Delivery Order – A document authorizing the release of a trailer from the marshalling yard or instructing the release or delivery of cargo to a specified third party.
Demurrage – A penalty charge assessed by carriers for the detention of cargo, by shippers or receivers of freight beyond a specified free time at carrier’s facility.
Density – The weight of an article or container per cubic foot. The ratio of mass to bulk or volume.
Dock Receipt – A receipt given for shipment received or delivered at a pier or dock. When delivery of a foreign shipment is completed the dock receipt is surrounded to the carrier and a Bill of Lading is issued.
Drawback – A refund of customs duties paid on material imported and later exported
Drayage – The charge made for hauling freight on carts, drays, or trucks.
Duty – A tax levied by a government on the import, export and consumption of goods.
Embargo – An order prohibiting the acceptance and/or handling of freight at certain points or via certain routes due, if any, and declared before a Customs Officer or other designated officer.
Ex Dock – The buyer takes title to the goods only when they are unloaded on his dock.
Ex Factory – Buy takes title of the goods when the leave the vendor’s dock.
Export – To send goods to a foreign country.
Export Declarations – See Shipper’s Export Declaration.
Export License – A certificate granting permission to export goods.
Feeder Vessel – A vessel used to connect with a line vessel to service a port which is not served directly the the line vessel directly.
Federal Maritime Commission (FMS) – The independent federal agency charged with administration and enforcement of the liner regulatory provisions of the Shipping Act of 1916.

FOB (Free on Board) – A price quote under which the exporter quotes a price that includes delivery of the goods on board the vessel.
Free-Astray – A shipment miscarried or unloaded at the wrong station is billed and forwarded to the correct station free of charges, account of being astray, hence the term “Free-astray.”
Free Time – The amount of time allowed by the carriers for the loading or unloading of freight at the expiration of which demurrage or detention charges will accrue.
Freight Bill – Destination Freight Bill – A bill rendered by a transportation line to consignee, giving a description of the freight, the name of shopper, point of origin, weight, and amount of charges (if not prepaid). Prepaid Freight Bill – A bill rendered by a transportation line to shipper, giving a description of the freight, the names of consignee and destination, weight and amount of charges.
Freight Forwarder – A person engaged in the business of assembling, collecting, consolidating shipping and distributing less than carload or less than truckload freight; also a person acting as agent in the transshipping of freight to or from foreign countries and the clearing of freight through Federal Customs.
Foreign of “Free” Trade Zones – Secured areas legally outside a nation’s customary territory. Their purpose is to attract and promote international trade and commerce.
GATT – Generalized Agreement Tariff and Trade --- World-wide agreement to encourage trade between countries by reduction of tariff rates. The last agreement, Tokyo round, will expire in 1987.
General Average (Marine Insurance) – A contribution made by the owners of a ship and its cargo toward a loss sustained by one or more of their number whose property has been thrown overboard or sacrificed necessarily in order to save the ship a part of its cargo.
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. This program was enacted by the United States in the Trade Act of 1974, became effective on January 1, 1976 and was extended to July 4, 1993.
Gross Weight – The weight of an article together with the weight of its container and the material used for packing.
Hand-to-Mouth Buying – Buying over a short period of time to meet immediate requirements.
Hedge -  Any purchase or sale having as its purpose the elimination of the negative aspects of price fluctuations.
High Density – The compression of flat or standard bale of cotton to high density of approximately 32 pounds per cubic foot. This compression usually applies to cotton exported or shipped coastwise.
IFM (Inward Foreign Manifest) – A U.S. Customs mandated document with the complete accurate listing by Bill of Lading numbers of freight being imported into the U.S.
Immediate Transportation Entry (I. T.) – To avoid double handling, imported merchandise can be forwarded from the port of original entry to another final destination for customs clearance. Merchandise travels in bond, without appraisement from the original port of entry to the final destination, where it is then inspected by customs.
Import Quota – A quantity control on imported merchandise for a certain period of time. United States import quotas may be divided into two types: absolute and tariff-rate.
In Bond – Freight which has not cleared customs.
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.
Inland Carrier – A transportation line which hauls export or import traffic between ports and inland points.
Intermodal – A system involving the movement of cargo by more than one form of transportation, such as rail, truck and ship.
Jettison – To unload or throw overboard at sea a part of a ship’s paraphernalia or cargo to relieve the ship when in danger.
Known Loss – A loss discovered before or at the time of delivery of a shipment.
Landbridge – Movement of a container from a port through water, over land and through water to another port. As an example, a container shipped from Japan to Seattle, moved to New York by rail and finally shipped to Rotterdam on board a vessel.
Landed Price – A supplier’s price that includes all his costs related to the sale.
Legal Weight – The weight of the goods and interior packing but not the container (a term used in foreign trade)

Letter of Credit – A form letter issued by bank indicating that a purchaser in a foreign country has established credit in a specified amount in the seller’s favor and that payment will be made upon presentation of draft together with certain specified documents.
Irrevocable L/C – All concerned parties have to agree on any modification or cancellation once it has been established.
Stand-By-L/C – A guarantee by the issuing bank that a customer’s bill will be paid. The letter is generally not supported by money on deposit with the bank, because the bank does not expect to pay out the funds. If the customer cannot pay the bill, the bank is obligated to pay it and then collect the money from the customer.
Draft – A written unconditional order sent by one party (the drawee) to pay a set sum of money to the drawer of (payee) at a designated or determinable time.
Trust Receipt – A document signed by the buyer on the strength of which a bank retains title to the goods but release documents of title to the buyer. Trust receipts are used under letters of credit or collections in order so that the buyer may receive the goods before paying the issuing bank or collecting bank.
Letter of Credit – Three major items to look for:

What are Discrepancies?
When documents do not comply to the terms of the l/c and they must be approved by the applicant before a bank will make the payment.
What parties are usually involved in a l/c?

Line-Haul – The direct movement of freight between two major ports by a single ship.
Liquidation of Entry – The point at which customs’ ascertainment of the rate of duty and amount of duty becomes final for most purposes. Final determination of entry.
Long Ton – 2,240 pounds.
Manifest – A document giving the description of a ship’s cargo or the contents of a car or truck.
Marine Insurance – Insurance against loss or damage to property while in transit by water.
Maritime – Business pertaining to commerce or navigation transaction upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law.
Marks – Letters, numbers and/or characters placed on package for purposes of identification.
Measurement Ton – Also known as cargo or freight ton. A space measurement, usually 40 cu. Feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies.
Metric Ton – A ton of 2,204.68 pounds.
Microbridge – Movement of cargo from a port over water, then over land to a port in an opposite coast.
Nested – Packed one within another.
Net Cash – Payment for goods sold usually within short period of time with no deduction allowed from the invoice price.
Net Price – Price after all discounts, rebates, etc. have been allowed.
Net Ton-Mile –                 (a) The weight of an article clear of packing and container.
                                (b) As applied to a container, the weight of the entire contents of the TL.
No Show – Freight that has been booked to a ship, but has not physically arrived in time to be loaded to that ship.
NVOCC – Non-Vessel Owning Common Carrier – Similar to a freight forwarder.
Open Conference – A conference in which there are no restrictions upon membership other than ability and willingness to serve the trade. U.S. law requires all conferences serving the U.S. to be open.
Packing List – A detailed specification as to goods packed.
Pallet – A small portable, platform for holding material for storage or transportation.
Pick-up Order – An order from a broker (working as the agent of a consignee) to an interline carrier to pick up freight at a location.