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 onaccount
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
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.
C
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.
D
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,)
E
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.
F
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.
G
Gang
Maritime: A group of longshoremen under a
supervisor who are assigned to load or unload a portion of a vessel.
Gangway
1. Theng 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
Anrailway 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
Theng 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.
I
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,
K
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.
L
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.
M
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, 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
Theess 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.
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.
N
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.
Account
Credit extended that is not supported by a note, mortgage,
or other formal written evidence of indebtedness.
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.
Economy
An economy free of trade restrictions.
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;y.
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.
P
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.
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.
Q
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.
R
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.
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.
S
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.
T
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 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 tothe 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.
U
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. andd 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.
V
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.
X
Y
Z
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.
Please take note that we endeavor to report accurate
information and as such we obtain same from sources which we believe are
reliable; however, we cannot guarantee its accuracy. Any reliance you may
place on the accuracy of this information or the validity of our opinion
is at the reader’s own risk. All information is given in good faith, but
without guarantee.
