ABI - Automated Brokerage Interface
Is a system available to U.S. Customs Brokers with the computer capabilities and customs certification to transmit and exchange customs entries and other information, facilitating prompt release of imported cargo.
A time draft (or bill of exchange) which the drawee has accepted and is unconditionally obligated to pay at maturity. Drawee's act in receiving a draft and thus entering into the obligation to pay its value at maturity. An agreement to purchase goods under specified terms.
Add Hoc Charter
A one-off charter operated at the necessity of an airline or charterer.
Ad Valorem ("according to the value")
A fixed percentage of the value of goods that is used to calculate customs duties and taxes.
Is a court having jurisdiction over maritime questions pertaining to ocean transport, including contracts, charters, collisions, and cargo damages.
Advance Against Documents:
Load made on the security of the documents covering the shipment.
A bank that receives a letter of credit from an issuing bank, verifies its authenticity, and forwards the original letter of credit to the exporter without obligation to pay.
A term indicating that a shipper's agent or representative is not empowered to make definite decisions or adjustment without the approval of the group or individual represented.
Is a company that controls, or is controlled by another company, or is one of two or more commonly controlled companies.
An agreement by a steamship line to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer, who then becomes liable for payment even though he is later unable to make the shipment.
The steamship line appoints the steamship agent and defines the specific duties and areas of responsibility of that agent.
Air Cargo Agent
Is a type of freight forwarder who specializes in air cargo and acts for airlines that pay him a fee (usually 5%). He is registered with the International Air Transport Association, IATA (See also Air Freight Forwarder; Forwarder, Freight Forwarder, Foreign Freight Forwarder).
Air Freight Forwarder
Is a type of freight forwarder who specializes in air cargo. He usually consolidates the air shipments of various exporters, charging them for actual weight and deriving his profit by paying the airline the lower consolidated rate. He issues his own air waybills to the exporters, is licensed by the CAB (Civil Aeronautics Board) and has the status of an indirect air carrier (See also Air Cargo Agent, Forwarder, Freight Forwarder, Foreign Freight Forwarder.)
A bill of landing that covers both international and domestic flights transporting goods to a specified destination. This is a non-negotiable documents of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.
International Air Transport Association, IATA, (French, German).
Is an insurance provision that all loss or damage to goods is insured except that of inherent vice (self caused). (See All Risk Insurance).
All Risk Insurance
Is a clause included in marine insurance policies to cover loss and damage from external causes, such as fire, collision, pilferage, etc. but not against innate flaws in the goods, such as decay, germination, nor against faulty packaging, improper packing/ loading or loss of market, nor against war, strikes, riots and civil commotions (See Marine Insurance)
A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded abroad the ship.
Is a standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association.
The transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to third party.
Assignment of Proceeds
A stipulation within a letter of credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries.
American Terms (Marine Insurance) A term used to differentiate between the conditions of American Policies from those of other nations, principally England.
Automated Brokerage Interface (ABI)
An electronic system allowing customhouse brokers and importers to interface via computer with the US Customs Service for transmitting entry and entry summary data on imported merchandise.
Automated Commercial System (ACS)
The electronic system of the US Customs Service, encompassing a variety of industry sectors, that permits on-line access to information in selected areas.
Automated Manifest System (AMS)The electronic system allowing a manifest inventory to be transmitted to the US Customs Service data center by carrier, port authority or service center computers. BAA
British Airports Authority
Baltic Air Charter Association
Balance of Trade
The difference between a country's total imports and exports; if exports exceed imports, favorable balance of trade exists, if not, a trade deficit is said to exist.
Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible.
(See Break-Bulk Cargo)
Freight accommodation below the main deck.
A firm or person on whom a letter of credit has been drawn. The beneficiary is usually the seller or exporter.
An agreement concluded in 1946 between the U.K. and the U.S., designed to regulate future international air traffic. Most governments accept its principles and follow it inter alia by limiting traffic rights on international routes to one or two carriers.
Is the place beside a pier, quay or wharf where a vessel can be loaded or discharged.
Berth Liner Service
Is a regular scheduled steamship line with regular published schedules (port of call ) from and to defined trade areas.
Berth or Liner Terms
Is an expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be for ship owner's account, and usually apply from the end of ship's tackle in port of loading to the end of ship's tackle in port of discharge.
Bill of Lading
A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, contract of carriage, and a receipt for goods. Also see Air Waybill and Ocean Bill of Lading.
A warehouse storage area or manufacturing facility in which imported goods may be stored or processed without payment of customs duties.
Brussels Tariff Nomenclature Number (BTN)The customs tariff number used by most European nations. The United States does not use the BTN, but a similar system known as the Harmonize Tariff Schedule. CAA
Is the Civil Aviation Authority. Government body responsible for regulating U.K. airlines.
Is where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories.
CAD Can have two meanings in the industryCAD
The acronym meaning "cash against documents," a method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
Computer Aided Design/Computer Aided Manufacturing.
The transporting of goods by truck to or from a vessel, aircraft, or bonded warehouse, all under customs custody.
Is merchandise/commodities/freight carried by means of transportation.
Is a receipt of cargo for shipment by a consolidator (used in ocean freight).
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purpose) without paying duties or posting bonds.
Carriers(s) Containers or Shipper(s) Containers
The term Carrier(s) Container(s) or Shipper(s) Container(s) means containers over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing or renting shipper owned containers.
A public or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid.
Is an association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or an industry.
Cash in Advance (C.I.A.)
Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.
Cash Against Documents (CAD)
Payment for goods in which a commission house, or other intermediary, transfers title documents to the buyer upon payment in cash.
Is a Customs Centralized Examination Facility.
Certificate of Analysis
Is a certificate required by some countries as proof of the quality and composition of food products or pharmaceuticals. The required analysis may be made by a private or government health agency. The certificate must be legalized by a foreign consul of the country concerned, as is the case with such similar certificates as the phytosanitary certificate.
Certificate of Inspection
A document certifying that the goods were in apparent good condition immediately prior to shipment.
Certificate of Manufacture
A statement in which a producer specifies where his goods were manufactured, certifies that manufacturing has been completed, and confirms that the goods are at the buyer's disposal.
Certificate of Origin
A statement signed by the exporter, or his agent, and attested to by a local Chamber of Commerce, indicating that the goods being shipped, or a major percentage of them, originated and were produced in the exporter's country.
Is a Customs Examination Station
Is a quoted price includes cost of goods and freight.
C & I
Is a quoted price includes cost of goods and insurance.
CFS (Container Freight Station)
The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo.
CFS/CFS (Pier to Pier)
The term CFS/CFS means cargo delivered by break-bulk to Carrier's CFS to be packed by Carrier into containers and to be unpacked by Carrier from the container at Carrier's destination port CFS.
CFS/CY (Pier to House)
The term CFS/CY means cargo delivered break-bulk to Carrier's CFS to be packed by Carrier into containers and accepted by consignee at Carrier's CY and unpacked by the consignee off Carrier's premises, all at consignee's risk and expense.
CFS CHARGE (Container Freight Charge)
The term CFS Charge means the charge assessed for services performed at the loading or discharging port in packing or unpacking of cargo into/from containers at CFS.
CFS Receiving Service
The term "CFS Receiving Services" means the service performed at loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following
1. Moving empty containers from CY to CFS
2. Drayage of loaded containers from CFS to CY and/or ship's tackle
3. Tallying 4. Issuing dock receipt/shipping order
5. Physical movement of cargo into, out of and within CFS
6. Stuffing, sealing and marking containers
8. Ordinary sorting and stacking
9. Preparing carrier's internal container load plan
CIF (cost, insurance and freight)
Seller is responsible for inland freight, ocean/air freight, and marine/air insurance to the port of final entry in the buyer's country. The buyer is responsible for inland transportation to his or her location.
Rate for goods where volume exceeds six cubic metres to the tonne.
Originally meant a flight where a shipper contracted hire of an aircraft from an airline. Has usually come to mean any non-scheduled commercial service.
The contract between the owner of a ship and the individual or company chartering it. Among other specifications, the contract usually stipulates the exact obligations of the ship-owner (loading the goods, carrying the goods to a certain point, returning to the charterer with other goods, etc.); or it provides for an outright leasing of the vessel to the charterer, who then is responsible for his own loading and delivery. In either case, the charter party sets forth the exact conditions and requirements agreed upon by both sides.
Charter party Bill of Lading
A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit.
A wheel assemble including bogies constructed to accept mounting of containers.
The acronym meaning "cash in advance," a method of payment for goods whereby buyer pays seller in advance of shipment of goods.
Is a quoted price includes cost of goods, insurance and freight.
Committee on International Trade of Endangered Species.
A class of goods or commodities is a large grouping of various items under one general heading. All items in the group make up a class. The freight rates that apply to all items in the class are called class rates.
Is a customs term. The placement of an item under the correct number in the customs tariff for duty purposes. At times this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by the customs on a given item.
Claused Bill of Lading
Is a bill of lading which has exemptions to the receipt of merchandise in "apparent good order" noted.
Clean Bill of Lading
Is a bill of lading which covers goods received in "apparent good order and condition" and without qualification.
Is a draft to which no documents have been attached.
Cargo Network Services, an IATA company. See IATA.
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Risk carried by the exporter (unless insurance is secured) that the foreign buyer may not be able to pay for goods delivered on an open account basis.
Confirmed Letter of Credit
A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured of payment by the U.S. bank even if the foreign buyer or the foreign bank defaults.
ConferenceA group of vessel operators joined together for the purpose of establishing freight rates.
- RoRo/Container Vessel - Ship designed to accommodate containers and roll-on roll-off cargo. It can be self sustaining.
- RoRo/Container/Break-bulk Vessel - Designated to accommodate three types of cargo, usually self sustaining.
A published code designed to reduce the total number of words required in a cablegram.
An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods.
Person or firm to whom goods are shipped under a bill of landing.
A formal statement, made to the consul of a foreign country, describing goods to be shipped.
A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by consular official of the foreign, it is used by the country's customs official to verify the value, quantity, and nature of the shipment.
Is an aircraft with pallet or container capacity on its main deck as well as in its belly holds.
Container/Break-bulk vessel - this type of ship accommodates both container and break-bulk cargo. It can be either self sustaining or non-self sustaining.
An itemized list of goods shipped, usually included among an exporter's collection papers.
Common Carrier: A firm or individual that transports persons or goods for compensation.
Confirmed Letter of CreditA letter of credit, issued by a foreign bank with validity confirmed by a U.S. bank.
ConfiscationThe taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property.
ConsigneeThe individual or company to whom a seller or sipper sends merchandise and who, upon presentation of necessary documents, is recognized as merchandise owner for the purpose of declaring and paying customs duties.
Consignee MarksA symbol laced on packages for identification purposes; generally consisting of a triangle, square, circle, diamond, cross, with letters and/or numbers as well as port of discharge.
ConsignmentIs the physical transfer of goods from a seller (consignor) with whom the title remains, to another legal entity (consignee) who acts as a selling agent, selling the goods and remitting the new proceeds to the consignor.
ConsignorA term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.
Consolidated ShipmentAn arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.
ConsolidatorAn agent which brings together a number of shipments for one destination to qualify for preferential airline rates.
ConsortiumThe name for an agreement under which several nations or nationals (usually corporations) of more than one nation, join together for a common purpose. It could be for management or exploitation of a natural resource, as in the case of some international petroleum consortiums.
ConsulA government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.
Consular DocumentsSpecial forms signed by the consul of a country to which cargo is destined.
Consular InvoiceA document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity and nature of the shipment.
ContainerThe term container means a single rigid, non-disposable dry cargo, insulated, temperature controlled flatrack, vehicle rack portable liquid tank, or open top container without wheels or bogies attached, having not less than 350 cubic feet capacity, having a closure or permanently hinged door that allows ready access to the cargo (closure or permanently hinged door not applicable to flatrack vehicle rack or portable liquid tank). All types of containers will have constructions, fittings and fastenings able to withstand without permanent distortion, all the stresses that may be applied in normal service use of continuous transportation. All containers must bear manufacturer's specifications.
Container ShipOcean going ship designed to carry containers both internally and on deck. Some are self sustaining.
ContainerizationIs a concept for the ultimate unitizing of cargo used by both steamship lines and air cargo lines. Containers allow a greater amount of cargo protection from weather, damage, and theft.
Containers (Air Cargo)Many types of air cargo containers are offered: The containers are designed in various sizes and irregular shapes to conform to the inside dimensions of a specific aircraft.
Containers (Ocean)Are designed to be moved inland on its own chassis and can be loaded at the shippers plant for shipment overseas. Basic types of containers are; dry van, open top, half high, hi cube, flat rock, tank container, refrigerated container, insulated container, tilting container. Average outside dimensions are generally 20, 35, and 40 feet in length, 8 feet wide and 8 feet high standard.
Continuous BondIs an annual customs bond insuring compliance with all regulations and requirements.
Contract RateIs a charge levied by carriers selling capacity forward over a given route to a shipper of forwarder; the client is therefore assured of capacity, which must be paid for regardless of load carried.
Coordinating Committee for Export Controls (COCOM)An informal group of 15 western countries established to prevent the export of certain strategic products to potentially hostile nations.
Correspondent BankA bank that, in its own country, handles the business of a foreign bank.
CountertradIs a reciprocal trading arrangement, which includes a variety of transactions involving two or more parties.
Countervailing DutiesIs a special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.
Credit Risk InsuranceInsurance designed to cover risks of nonpayment for delivered goods.
Customs Bonded WarehouseIs a warehouse where imported goods may be stored for a total of three years without the payment of duty or taxes.
Customhouse Broke: An individual or firm licensed to enter and clear goods through Customs.
Customs CourtIs the court to which importers might appeal or protest decisions made by Customs officers.
Customs TariffIs a schedule of charges assessed by the federal government on imported goods.
Customs UnionIs an agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other's goods and establish a common tariff for the imports of all other countries.
CWOThe acronym meaning "cash with order," a method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller.
CY (Container Yard)The term CY means the location designated by Carrier in the port terminal area for receiving, assembling, holding, storing and delivering containers, and where containers may be picked up by shippers or re-delivered by consignees. No container yard (CY) shall be a shipper's, consignee's, NVOCC's, or a forwarder's place of business, unless otherwise provided.
CY/CFS (House to Pier)The term CY/CFS means containers packed by shipper of carrier's premises and delivered by shipper to Carrier's CY, all at shipper's risk and expense and unpacked by Carrier at the destination port CFS.
CY/CY (House to House)The term CY/CY means containers packed by shipper off Carrier's premises and delivered by shipper to Carrier's CY and accepted by consignee a t Carrier's CY and unpacked by consignee off Carrier's premises, all at the risk and expense of cargo.
Dangerous GoodsArticles or substance capable of posing a significant risk to health, safety or property, and that ordinarily require special attention when being transported.
DATDangerous articles tariff.
Date DrafDraft that matures in a specified number of days after the date it is issued, without regard to the date of Acceptance. See Draft. DCADepartment of Civil Aviation. Commonly used term to denote the government department of any foreign country that is responsible for aviation regulation and granting traffic rights.
DDPDelivered duty paid. Also known as "free domicile."
DDUDelivered duty unpaid. Reflects the emergence of "door-to-door" intermodal or courier contracts or carriage where only the destination customs duty and taxes (if any) are paid by consignee.
Dead LegIs a sector flown without payload.
Dead FreightIs freight charges paid by the charterer of vessel for the contracted space, which is left partially unoccupied.
Deck CargoIs cargo carried on deck rather than stowed under deck. On deck carriage is required for certain commodities, such as explosives.
Deferred Payment CreditType of letter of credit providing for payment some time after presentation of shipping documents by exporter.
Deferred RebateThe return of a portion of the freight charges by a carrier or a conference shipper in exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified period of time (usually 6 months). Payment of the rate is deferred for a further similar period, during which the shipper must continue to give all or most of his shipments to the rebating carrier or conference. The shipper thus earns a further rebate which will not, however, be paid without an additional period of exclusive or almost exclusive patronage with the carrier of conference. In this way, the shipper becomes tied to the rebating carrier or conference. Although, the deferred rebate system is illegal in U.S. foreign commerce, it generally is accepted in the ocean trade between foreign countries.
DemurrageA penalty for exceeding free time allowed for loading or unloading at a pier or freight terminal. Also a charge for undue detention of transportation equipment or carriers in port while loading or unloading.
DensityDensity means pounds per cubic foot. The cubage of loose articles or pieces, or packaged articles of a rectangular, elliptical or square shape on one plane shall be determined by multiplying the greatest straight line dimensions of length, width and depth in inches, including all projections, and dividing the total by 1728 (to obtain cubic feet). The density is the weight of the article divided by the cubic feet thus obtained.
DEQDelivered ex quay/duty paid.
Destination Control StatementAny of various statements that the U.S. government requires to be displayed on export shipments and that specify the destination for which export of the shipment has been authorized.
DGRDangerous Goods Requirement.
Dim Weight(Dimensionalized Weight) Determined by calculating length x width x height and dividing by 166. Charged when actual weight is less than the dim. weight.
Dock ReceiptWhen cargo is delivered to a steamship company at the pier, the receiving clerk issues a dock receipt.
Documents Against Acceptance (D/A)Instructions given by a shipper to a bank indicating that documents transferring title goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance of the attached draft.
DOT: Department of Transportation
Draft (or Bill of Exchange : An unconditional order in writing from one person (the drawer) to another (the drawee), directing the Drawee to pay a specified amount to a named Drawer at a fixed or determinable future date.
Drawback: A U.S. customs law that permits an American exporter to recover duties paid on imported foreign raw materials or components included in products that are subsequently exported out of the United States.
Drawee: The individual or firm on whom a draft is drawn and who owes the stated amount to the drawer.
Dry Lease: The rental of a "clean" aircraft without crew, ground staff or supporting equipment. DSTThe acronym meaning "double stack train" service, which is the transport rail between two points of a trainload of containers with two containers, one on top of the other, per chassis.
d.w. Deadweight (tons of 2,240 lbs.)
d.w.c. Deadweight for cargo
E.A.O.N. Except as otherwise noted.
EDI or EDIFACT: Electronic Data Interchange for Administration, Commerce and Transport, from the UN-backed electronic data interchange standards body, to create electronic versions of common business documents that will work on a global scale. One digital document under consideration, the International Forwarding and Transport Message will do the jobs of six different electronic messages currently in use.
Empty LegResults from an aircraft primarily chartered outbound having cargo capacity inbound or vice versa. A cheap form of airfreight.
Endorsement in Blank: Commonly used on a bank check, an endorsement in blank is an endorsement to the bearer. It contains only the name of the endorser and specifies no particular payee. Also, a common means of endorsing bills of lading dawn to the order of the shipper. The bills are endorsed "For..." (see Bill of Lading, Order).
Eurodollars: U.S. dollars on deposit outside of the United States to include dollars on deposit at foreign branches of U.S. banks, and dollars on deposit with foreign banks.
"Ex"Signifies that the quoted price applies only at the indicated point of origin (e.g. "price ex factory" means that the quoted price is for the goods available at the factory gate of the seller).
Ex. B.L.Exchange bill of lading.
Export BrokerThe individual who brings together buyer and seller for a fee, eventually withdrawing from any transaction.
Export Declaration: A form to be completed by the exporter or their authorized agent and filed in triplicate by a carrier with the United State Collector of customs at the point of exit. It serves a twofold purpose:
1. Primarily, it is used by the U.S. Bureau of Census for the compilation of export statistics on United States foreign trade (for this reason an export declaration is required for practically all shipments from the United States to foreign countries and the United States possessions, except for mail shipments of small value, or for those of a non commercial character);
2. The declaration also serves as an export control document because it must be presented, together with the export license, to the United States Customs at the port of export. If the goods may be exported under general export license, this fact must be stated on the export declaration.
Export License: A document secured from a government, authorizing an exporter to export a specific quantity of a particular commodity to a certain country. An export license is often required if a government has place embargoes or other restrictions upon exports. See General Export License.
Export Trading CompanyA corporation or other business unit organized and operated primarily for the purpose of exporting goods and services, or of providing export related services to other companies.
ExpressPremium-rated service for urgent deliveries.
EXWEx works. Same as the former "Ex Works."FAK: Freight All Kinds - uniform airline charging scale applying to a number of commodities; as opposed to SCR (Specific Commodity Rate) applying to one commodity only.
FAS (free alongside ship)Seller is responsible for inland freight costs until goods are located alongside the vessel/aircraft for loading. Buyer is responsible for loading costs, ocean /air freight and marine/air insurance.
Fathom(Nautical) Conversion equivalents: 6 feet; 1.83 meters.
F.C.L.Full container load, full car load.
F.c.s.Free of capture and seizure.
f.c.s.r.c.c.Free of capture, seizure, riots and civil commotions.
F.&.D.Freight and demurrage.
FEUForty foot equivalent
FIATAInternational Federation of Freight Forwarders Associations.
Fifth Freedom FlightWhere cargo is carried by an airline between two countries in neither of which it is based.
F.i.b.Free in bunkers; free into barge.
Flag CarrierAn airline of one national registry whose government gives it partial or total monopoly over international routes.
FOB (free on board)Seller is responsible for inland freight and all other costs until the cargo has been loaded on the vessel/aircraft. Buyer is responsible for ocean/air freight and marine/air insurance.
F.o.d. Free of damage
FoldedAn article folded in such a manner as to reduce its bulk 33 1/3% from its normal shipping cubage when not folded.
Force MajeureThe title of a standard clause found in marine contracts exempting the parties for nonfulfillment of their obligations by reasons of occurrences beyond their control, such as earthquakes, floods or war.
Foreign Trade ZoneA free port in the United Stated divorced from Customs authority but under Federal control. Merchandise, except that which is prohibited, may be stored in the zone without being subjected to the United States tariff regulation. Also called Free Trade Zone.
Foreign Trade Zone EntryA form declaring goods which are brought duty free into a Foreign Trade Zone for further processing or storage and subsequent exportation.
Forwarder, Freight Forwarder, Foreign Freight ForwarderAn independent business that dispatches shipments for exporters for a fee. The firm may ship by land, air, or sea, or it may specialize. Usually it handles all the services connected with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery and export clearance. The firm may also handle banking and insurance services on behalf of a client. The U.S. forwarder is licensed by the Federal Maritime Commission for ocean shipments.
Foul Bill of LandingA receipt for goods issued by a carrier with an indication that the goods were damaged when received.
F. P.A.A.C. F.p.a. (A.C.)Free of Particular Average, American Conditions-(Marine Insurance Term). The American form of clause commonly used, as distinguished from that used by the English underwriters. Under the American clause the underwriter does not assume responsibility for partial losses unless caused by stranding, sinking, burning or collision with another vessel whereas under the English clause, the underwriter assumes responsibility for partial losses if the vessel be stranded, sunk, burnt or in collision even though such an event did not actually cause the damage suffered by the goods. Conditions (See F.P.A.A.C.).
F.P.A.Free of Particular Average (Marine Insurance Term). A term used in marine insurance policies to indicate that while the underwriter is unwilling to assume liability for ordinary partial losses due to the peculiar qualities of the particular article or to its form of package, he is willing to bear partial losses, the direct result of stranding, sinking, burning, collision, or other named peril
Free AlongsideQuoted price includes the cost of delivering the goods alongside a designated vessel.Free In (F.I.)Cost of loading a vessel is borne by the charterer.
Free In and Out (F.I.O.)Cost of loading and unloading a vessel is borne by the charterer.
Free of Capture and Seizure (F.C.& S.)An insurance clause providing that loss is not insured if due to capture, seizure, confiscation and like actions, whether legal or not , or from such acts as piracy, civil war, rebellion and civil strife.
Free of Particular Average (F.P.A.)A marine insurance clause providing that partial loss or damage is not insured American conditions (F.P.A.A.C.). Partial loss is not insured unless caused by the vessel being sunk, stranded, burned, on fire, or in collision. English conditions (F.P. A.E.C.). Partial loss not insured unless a result of the vessel being sunk, stranded, burned, on fire, or in collision.
Free Out (F.O.)Cost of unloading a vessel is borne by the charterer.
Free PortA port which is a foreign trade zone, open to all traders on equal terms; more specifically a port where merchandise may be stored duty-free, pending re-export or sale within that country.
Free Trade ZoneA port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs Authority.
Freight ForwarderAn individual or company , acting on the behalf of a shipper, who arranges all necessary details of shipping and documentation for a manufacturer or exporter, which includes employing the services of a carrier of carriers.
GangGroup of stevedores usually 4 to 5 members with supervisor assigned to a hold or portion of the vessel being loaded or unloaded.
GatewayPort of entry into a country or region.
GATTGeneral Agreement on Tariffs and Trade, a multilateral treaty intended to help reduce trade barriers and promote tariff concessions.
GCRGeneral Cargo Rate. The basic tariff category which was introduced to cover most air cargo now covers only a minority, the remainder being under SCR or class rates.
General AverageWhen damage to cargo on board a vessel exceeds carrier's insurance, carrier will release cargo only with an acceptance agreement to claim only a general percentage of all the damage sustained.
General Export LicenseAny of various export licenses covering export commodities for which validated export licenses are not required. No formal application or written authorization is needed to ship exports under a general export license.
General OrderGovernment contract warehouse for the storage of cargoes left unclaimed for ten working days after availability. Unclaimed cargoes are auctioned publicly after one year.
Gross WeightEntire weight of goods, packing, and container,, ready for shipment.
General Sales Agent acting on behalf of an airline. Usually Broker or Forwarder.
Harmonized CodeAn internationally accepted and uniform description system for classifying goods for customs, statistical and other purposes.
Harmonized SystemsA key provision of the recently signed trade bill, effective Jan. 1, 1989, that establishes international uniformity for product classifications. Most U.S. Trading partners adopted it a year earlier, and it was drafted in Brussels a decade ago with U.S. representatives' input. In essence, it is a new tariff schedule in that it changes methods of rating some items.
HatchThe cover of - or opening- in the deck of a vessel, through which cargo is loaded.
Heavy LiftsFreight too heavy to be handled by regular ship's tackle.
Heavy Lift VesselSpecifically designed to be self sustaining with heavy lift cranes, to handle unusually heavy and/or out-sized cargoes.
House Air WaybillAn air waybill issued by a freight consolidator. See Air Waybill.
HubA central location to which traffic from many cities is directed and from which traffic is fed to other areas.
Hundredweight (cwt.)A short ton hundredweight = 100 pounds. Long ton hundredweight = 112 pounds.
Term used by steamship lines, agents, or port captains who are appointed to handle all matters in assisting the master of the vessel while in port to obtain bunkering, fresh water, food and supplies, pyroll for the crew, doctors appointments, ship repair, etc.
International Air Transport Association.
ICAO: International Civil Aviation Organization. A specialized agency of the United Nations, with headquarters in Montreal. Its task is to promote general development of civil aviation (e.g. aircraft design and operation, safety procedures, contractual agreements).
ICC: International Chamber of Commerce
I.C.T.F. : Intermodal Container Transfer Facility, an on-dock facility for moving containers from ship to rail or truck.
IFF: Institute of Freight Forwarders.
Igloo: Container designed to occupy full main deck width of carrying aircraft.
Import License: A certificate, issued by countries exercising import controls, that permits importation of the articles stated in the license. The issuance of such a permit frequently is connected with the release of foreign exchange needed to pay for the shipment for which the import license has been requested.
In-Bond: A customs program for inland ports that provide for cargo arriving at a seaport to be shipped under a Customs bond to a more conveniently located inland port where the entry documents have been filed. Customs clears the shipment there, and the cargo is trucked to its destination, which normally is close to the inland port.
Independent Action: A move by whereby a member of a shipping conference elect to depart from the specific service rates set forth by the conference, giving ten calendar days notice of such action. The conference member's new schedule of rate, or rates, officially takes effect no later than ten days after receipt of notice by the conference.
Inducemen: Some steamship lines publish in their schedules the name of a port and the words by inducement in parentheses. This means the vessel will call at the port if there is sufficient amount of profitable cargo available and booked.
Inland Carrier: Transportation line which hauls export or import traffic between ports and inland points.
I.p.a.: Including particular average
Inspection Certificate:A document certifying that merchandise (such as perishable goods) was in goods condition immediately prior to shipment.
Integrated Carrier: Forwarder which uses own aircraft, whether owned or leased, rather than scheduled airlines.
Intellectual Property: Ownership of the legal rights to possess, use or dispose of products created by human ingenuity, including patents, trademarks and copyrights.
Interline: Mutual agreement between airlines to link their route network. ISOInternational Standards Organization also referred to as the International Organizational for Standardization.
Incoterms: A codification of terms used in foreign trade contracts that are maintained by the International Chamber of Commerce.
Incremental Cost to Export: The additional costs incurred while manufacturing and preparing a product for export ( e.g., product modifications, special export packaging and export administration costs.) This does not include the costs to manufacture a standard domestic product, export crating and transportation to the foreign market.
Irrevocable Letter of Credit: A letter of credit with a fixed expiration date that carries the irrevocable obligation of the issuing bank to pay the exporter when all of the terms and conditions of the letter of credit have been met.
J.&W.O.Jettison and washing overboard
JETSAM: Goods from a ship's cargo, or parts of its equipment, that have been thrown overboard to lighten the lad in time of danger, or to set a stranded ship adrift.
Joint Venture: A form of business partnership involving joint management and the sharing of risks and profits between enterprises sometimes based in different countries.
Just-In-Time (JIT): The principle of production and inventory control in which goods arrive when needed for production or use.