Acceptance This is a term that is used in export contracts and implies that the buyer agrees to purchase goods at a stated specific price and according to stated specific terms. This term has several related meanings: (1) A time draft (or bill of exchange) that the drawee has accepted and is unconditionally obligated to pay at maturity. The draft must be presented first for acceptance – the drawee becomes the “acceptor” – then for payment. The word “accepted” and the date and place of payment must be written on the face of the draft. (2) The drawee’s act in receiving a draft and thus entering into the obligation to pay its value at maturity. (3) Broadly speaking, any agreement to purchase goods under specified terms. An agreement to purchase goods at a stated price and under stated terms.
Acceptance credit A documentary credit which requires the beneficiary to draw a usance bill for subsequent acceptance by the issuing bank or the advising bank or any other bank as the credit stipulates – see Documentary Credits.
Accession The process by which a country becomes a member of an international agreement (e.g. the GATT).
Accommodation Bill In the context of fraud, a bill drawn without a genuine underlying commercial transaction.
Accountee Another name for the applicant/opener of a documentary credit i.e. the importer = the person for whose account the transaction is made.
Actual Total Loss Marine insurance term; a ship is usually considered an actual total loss for insurance purposes when it has been listed as missing.
Ad Hoc Charter A one-off charter operated at the whim of the airline or charterer.
Ad Valorem A Latin phrase, meaning “according to value”. An ad valorem duty is an import duty based on the value of an article as defined in the customs law of a particular country, rather than on weight or volume. A percentage of that value is charged, for example 5% ad valorem. A freight rate set at a certain percentage of the value of an article is known as an ad valorem rate. (See Ad Valorem duty)
Ad Valorem Rate Rate determined according to the value of the imported merchandise as opposed to the weight or other basis for calculation. An ad valorem tariff is a tariff calculated as a percentage of the value of the goods when clearing customs.
Advance Against Documents A loan made on the security of the documents covering the shipment. An alternative to acceptance financing.
Advice Of Fate The Collecting Bank informs the Remitting Bank of non- payment/non-acceptance or (for D/A bills) of acceptance and the bill maturity date
Advising Act of conveying the terms and conditions of a DC to the beneficiary. The advising bank is the issuing bank agent, usually located in the beneficiary country – see Export – DC Advising. Advising also involves authentication i.e. advising bank should take reasonable care to check the apparent authenticity of the credit (ICC UCC 500 Art 7).
Advising Bank A bank, operating in the exporter’s country, that handles letters of credit for a foreign bank by notifying the export firm that the credit has been opened in its favour. The advising bank fully informs the exporter of the conditions of the letter of credit without necessarily bearing responsibility for payment.
Advisory Capacity A term indicating that shipper’s agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented.
Affreightment, Contract Of An agreement between a shipping company and an importer or exporter for cargo space on a vessel at a specified time for a specified price. The importer/exporter is liable for payment whether or not the shipment is made at the time agreed upon.
Aframax An Aframax ship is an oil tanker with capacity between 75 000 and 120 000 deadweight tonnage. Aframax tankers are mostly employed in the intra-regional trade of the North Sea, the Caribbean, the Far East and the Mediterranean. The term is based on the Average Freight Rate Assessment (AFRA) tanker rate system.Source
After Date (A/D) Payment on a draft or other negotiable instrument due a specified number of days after the date the draft is presented to the payee.
After Sight (A/S) Payment on a draft or other negotiable instrument due upon presentation or demand to the payee.
After Sight (A/S) Payment on a draft or other negotiable instrument due upon presentation or demand to the payee.
Air Cargo Agent A type of freight forwarder who specialises in air cargo and acts for airlines that pay him a fee. The person may be registered with the International Air Transport Association, IATA (See also Air Freight Forwarder; Forwarder, Freight Forwarder, Foreign Freight Forwarder).
Air Freight Forwarder 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.)
Airway Bill A non-negotiable contract for carriage of air transportation between an air carrier and a shipper, or an air carrier and an air freight forwarder. In the latter case the forwarder, as an indirect air carrier, issues his own house air waybill to the shipper.
All-Risk Clause An insurance clause providing that all loss or damage to goods is insured except that caused by the shipper (referred to as inherent vice).
AITA The German/French acronym for International Air Transport Association, IATA.
All-Risk Insurance 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 or loss of market, nor against war, strikes, riots and civil commotions (See Marine Insurance).
Alongside 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 aboard the ship.
Alteration A change in the boundaries of an activated zone or subzone.
Amendment Alteration to the terms of a DC; amendments must stem from the applicant, be issued and advised to the beneficiary; the beneficiary has the right to refuse an amendment if the credit is irrevocable – see Amendments to DCs.
Anti-Dumping Duty A tariff imposed to discourage the under-priced (below foreign countries domestic market) sale of foreign goods in the U.S. market.
Applicant One who applies to his bank to issue a documentary credit; in the majority of credits issued the applicant is an importer of goods.
Arbitrage The process of buying foreign exchange, stocks, bonds, and other commodities in one market and immediately selling them in another market at higher prices.
Arbitration Clause A clause in a contract detailing how any contract disputes will be settled.
Asian Dollars U.S. dollars deposited in Asia and the Pacific Basin.
Asia-Pacific Economic Cooperation (APEC) An organization to promote open trade and practical economic cooperation in the Asia-Pacific region. It also aims to advancing Asia-Pacific economic dynamism and sense of community.
Association Of Southeast Asian Nations (ASEAN) An economic cooperation. Members countries include Thailand, Japan, Vietnam, Indonesia, Malaysia, Singapore, Philippines, and Brunei. The ASEAN Alliance for Mutual Growth (AMG) is a multilateral initiative to encourage mutually beneficial trade relations between the United States and the ASEAN countries.
ATA Carnet See Carnet.
Attributive Basis Method of accounting for merchandise where direct identification of the goods with the shipment as admitted to the zone has been lost.
Audit-Inspection Procedures provide the framework for Customs to reduce on-site supervision of zones and for zone operators/users to increase zone operating flexibility through the method of supervising zones.
Avalise The act by a bank in guaranteeing payment of a bill of exchange or promissory note by endorsing the reverse with the words good per aval and signed by the bank, or by the issuance of a separate guarantee.
Back-to-Back Consecutive, following immediately one after the other. A back-to-back escrow is one set up to handle the concurrent sale of one property and the purchase of another. A back-to-back lease is an agreement made by a lessor as a concession to a prospective lessee, in which the lessor agrees to take over an existing lease and, in return, secure a commitment from the lessee that he wants.
Back-To-Back Credit A credit issued against the security back of another credit (master credit) on the understanding that reimbursement will stem from documents eventually presented under the first credit (master credit) issued – see Special DCs. It follows therefore that each side of a B/B transaction covers the shipment of the same goods.
Balance Of Trade The difference between a country’s total imports and exports. If exports exceed imports, a favourable balance of trade exists; if not, a trade deficit is said to exist.
Bankers Acceptance A draft drawn on and accepted by the importer’s bank. Depending on the banks creditworthiness, the acceptance becomes a financial instrument which can be discounted.
Barter Trade Refers to a form of trade where goods are exchanged directly for other goods without the use of money to faciliate the transaction..
B/B See Break-bulk.
Belly Cargo This term refers to cargo that is stored below the main deck of a ship..
Beneficiary A payee or recipient, usually of money. A party in whose favour a documentary credit is established, usually the exporter.
Berth The place beside a pier, quay or wharf where a vessel can be loaded or discharged.
Berth Liner Service Refers to a regular scheduled shipping line operating according to published schedules (ports of call) from and to defined trade areas.
Berth Terms 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. See also Liner Terms
Bilateral Trade Agreement A trade agreement between a small group of countries – this term should indicate a trade agreement between just two countries, but it gets loosely used in trade agreements with five or more countries.
Bill For Collection (BC) Document(s) or cheque submitted through a bank for collection of payment from the drawee.
Bill Of Exchange A written unconditional order for payment from a drawer to a drawee, directing the drawee to pay a specified amount of money in a given currency to the drawer or a named payee at a fixed or determinable future date.
Bill Of Lading, Inland A bill of lading used in transporting goods overland to the exporter’s international carrier.
Bill Of Lading, Ocean Bill of lading indicating that the exporter consigns a shipment to an international carrier for transport to a specified foreign market.
Bill Of Lading, On Board A bill of lading acknowledging that the relative goods have been received on board for shipment on a specified vessel.
Bill Of Lading, Received for Shipment A bill of lading acknowledging the receipt of goods by a carrier for shipment on a specified vessel. This type of bill of lading is not acceptable under a letter of credit unless it is specially authorised. English law does not regard these bills as a valid tender under CIF contracts because the CIF seller is obligated to ship the goods, and a Received for Shipment Bill of Lading is not considered proof of shipment.
Bill Of Lading, Straight A non-negotiable bill of lading whereby the consignee named in the bill is the owner of the relative goods.
Bill Of Lading, Through bill of lading that covers transportation by more than one carrier from the point of issue to the final destination. Example, a bill from Cape Town, via Istanbul to Baku in Azerbaijan.
Bill Of Sight A written description of goods given by an importer to a customs officer in the event shipping documents have not arrived in time and the importer wishes to avoid delayed entry charges. When an importer enters goods on a bill of sight, he usually must make a cash deposit covering the estimated amount of duty. When the shipping documents are received and a correct entry is made, the exact amount of duty is levied.
Bill Receivable (BR) Bills which are financed by the receiving branch, whether drawn under a DC or not, are treated as BRs by both the remitting branch and the receiving branches
B/L See Bill of Lading
Blank Endorsed When a bill of lading is made out to order or shipper order and the shipper has signed on the back of it, it is said to be blank endorsed. The bill of lading then becomes a bearer instrument and the holder can present it to the shipping company to take delivery of the goods.
Bonded Warehouse A warehouse authorised by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed from the warehouse.
Booking An arrangement with a transporting company such as a shipping line or airline for the acceptance and carriage of freight.
Break-Bulk (B/B or BB) Cargo which is shipped as individual units and not in containers (i.e. palletised cargo, boxed cargo, large machinery, trucks and pre-slung cargo)..
Break-Bulk Vessel/Ship This is a ship designed to handle palletised, pre-slung, boxed, and unitised cargo. The holds can be of the open bay or between deck type. Between deck means the hold can be converted from multi-levels to open bay. This type of vessel is usually self-sustaining and has its own cranes for on- and off-loading.
Bridge Loan In lending terms, a bridge is a short-term loan, generally used to cover the period between the termination of one loan, such as a construction loan, and the take-out of another, such as a permanent loan.
Broker An intermediary in a sale or transaction who receives a fee; an arranger of a deal for a fee or percentage real estate brokers act as representatives of owners while real estate consultants represent clients engaged in site selection (a site selection or real estate consulting agency should not also broker property). A data broker engaged by a site selector is generally an information assimilator who organizes what is collected into a form that that can be used for comparative analysis. Email address brokers who knowingly support spammers are partners in crime as a specialized contact data resource of the Internet, The Network is a target for cyberthugs and works with an email strategy to constantly fight spam
B/T See Berth Terms or Liner Terms
B/s An acronym that is used to refer to bags or bales..
Bulk Solids Dry cargo shipped in containers, loose, in bulk, without mark or count.
Buyer Credit Term to provide the exporter with prompt payment by the overseas importer, who borrows the necessary funds from the bank. The payment is usually made directly by the importers bank to the exporter.
Buying Agent See Purchasing agent.

C.I.F. Duty Paid The seller includes the estimated duty in the final price to the buyer in addition to C.I.F.
C.I.F. & E: Price quoted includes currency exchange in addition to C.I.F.
Cabotage 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 See Cash Against Documents..
CAFTA The Central American Free Trade Agreement (otherwise known as DR-CAFTA) is a pending agreement that has been negotiated between the United States, five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and possibly the Dominican Republic. In order for countries to official join the trade agreement, CAFTA will need to be ratified in each country’s legislature. Like the North American Free Trade Agreement, CAFTA will do more than just eliminate tariffs and trade barriers between those countries.
Capesize Capesize ships are cargo ships too large to traverse either the Suez Canal or Panama Canal (i.e., larger than both panamax and suezmax vessels). To travel between oceans, such vessels must round the Cape of Good Hope (South Africa) and Cape Horn (South America). Capesize vessels are typically above 150,000 deadweight tons, and ships in this class include VLCC and ULCC supertankers (see below) and bulk carriers transporting coal, ore, and other commodity raw materials. The term is most commonly used to describe bulk carriers rather than tankers, however. Source
Cargo The goods/commodities carried or moved by various modes of of transportation such as sea- and airfreight..
Cargo receipt This refers to the receipt issued by a consolidator of cargo for shipment by seafreight..
Cargo sweat Condensation on the surface of the cargo: Condensation can form on the cargo as a result of climatic conditions. Cargo sweat can always occur when the temperature of the cargo is lower than or equal to the dew point. It can also occur during transportation from temperate latitudes, e.g. from northern-hemisphere winter to the tropics.
Caribbean Community And Common Market (Caricom) It facilitates economic cooperation through the Caribbean Single Market and Economy, and coordinates foreign policy among the independent States in Caribbean. Related organizations are the Caribbean Investment Corporation and the Caribbean Monetary Fund.
Carnet A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.
Carrier Person or company undertaking for hire the conveyance of goods e.g. shipping company
Case Of Need Agent nominated by a principal, to whom the collecting bank may refer in specified circumstances concerning collections – see the sections on Collections
Cash Against Documents (CAD) A method of payment for goods in which an intermediary acting for the seller transfers title documents to the buyer upon payment in cash..
Cash In Advance (CIA) This is a method of payment for goods paid in full by the buyer (importer) to the seller (exporter) before shipment is made. This method is usually used only for small purchases or when the goods are built to order.
Cash With Order (CWO) A payment method for goods by which cash is paid at the time of order and the transaction then becomes binding for both the buyer and seller.
Certificate Of Analysis A certificate demanded by some countries as proof of the quality and composition of food products or pharmaceuticals. The analysis may be made by a private or government health agency. The certificate must be legalised by a foreign mission of the country concerned, as is the case with such similar certificates as the phytosanitary certificate.
Certificate Of Inspection A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.
Certificate Of Manufacture A statement (often notarised) in which a producer of goods certifies that manufacture has been completed and that the goods are now at the disposal of the buyer.
Certificate of Origin This is a statement by the exporter with the backing of a Chamber of Commerce and sometimes an embassy. The document states from which country the goods emanate.
CFR Cost and freight. A pricing term indicating that the cost of the goods and freight charges are included in the quoted price; the buyer arranges for and pays insurance.
Chapter 11 Is a chapter in the North American Free Trade Agreement (NAFTA) that deals with foreign direct investment. This chapter has become very controversial because of a provision that established a member country system of private arbitration for foreign investors to bring injury claims against governments. These so called “investor-state” cases are litigated in special international arbitration bodies, which are closed to public participation, observation and input. Written to protect foreign investors from governments seizing their property, corporations have stretched NAFTA’s Chapter 11 to undermine government decisions made to protect public health, the environment and local communities. [This should not be confused with Chapter 11 of the US bankruptcy code.]
Chargable kilo This is a rate that is applied to goods where volume exceeds six cubic metres to the tonne..
Charter A charter refers to any non-scheduled service where a shipper contracts for the ad hoc hire of an ship or aircraft from an shipping line or airline.
Charter Party A written contract, usually on a special form, between the owner of a vessel and the “charterer” who rents use of the vessel or a part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation.
Charter Party Bill of Lading A bill of lading issued under a charter party. It is generally not acceptable by banks under letters of credit unless so authorised in the credit.
Chaser Reminder sent by the collecting (or DC issuing) bank to the importer, repeating a request for payment – see Handling Import Collections.
C&I The quoted price includes cost of goods and insurance.
CIA See Cash in Advance..
CIF (Cost, insurance, freight) A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
Civil Society This term refers to all of the organizations which are not public or for-profit institutions
CKD See Completely Knocked Down..
Classification This is a customs term and is used to describe the assigning of the correct definition and category of imported merchandise within the Harmonised Tariff Schedule of the country in question. Classification is used as precursor to determining the import duties applicable to the goods concerned. At times the process of the correct classification of products can be highly complicated and it is not uncommon for importers and or exporters to resort to litigation with the customs authorities to ensure that the correct duty be applied by them (customs) to a given item..
Class rates 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.
Claused Bill of Lading A bill of lading which has exemptions to the receipt of merchandise in “apparent good order” noted.
Clean Used to describe a draft/cheque with no shipping documents – see Collections Introduction.
Clean Bill Of Lading . A receipt for goods issued by a carrier that indicates that the goods were received in “apparent good order and condition”, without damages or other irregularities.
Clean Bill Purchased A collection bill purchased with no shipping Purchase documents – see Financing Export Collections.
Clean Bill Receivable (CBR) BR (Bill Receivable) with no shipping documents. The term is more often used for non-trade bills such as travellers cheques.
Clean Collection . A draft with no documents
Clean Draft A draft to which no documents have been attached.
Clean Import Loan (Cil) A loan granted to an importer for payment of import bills, without the Bank having any claim to the goods.
Cocom Coordinating Committee on Multilateral Export Controls A committee of all NATO countries (except Iceland) plus Japan to coordinate and control exports of member countries, especially in high-technology equipment.
Codes Of Conduct Represent voluntary guidelines for treatment of workers and business behavior. In some cases the acceptance of inspections by independent agencies is a key factor of the guidelines.
Collection An exporter draws a bill of exchange on a customer abroad and gives the bill to his or her bank to collect funds. The importer must be willing to pay. The bank charges a fee to collect payment, but is not liable should the importer refuse to release the funds.
Collection Bank Bank in the drawee country that is instructed to collect payment from the drawee – see Collections Introduction.
Collection Order . Form submitted, with documents, to the Remitting/Negotiating Bank by an exporter with his instructions
Collective Papers All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Combi An aircraft with pallet or container capacity on its main deck as well as in its belly holds.
Combination Vessels A mix between a container and break-bulk vessel. It can be either self sustaining or non-self sustaining.
Combined Nomenclature Used in the European Union,

The codes and the descriptions of goods established on the basis of the combined nomenclature are replaced by those established on the basis of the nomenclatures of the Common Customs Tariff and the Nimexe. It is established on the basis of the harmonized system. The combined nomenclature comprises : (a) the harmonized system nomenclature; (b) Community subdivisions to that nomenclature, referred to as ‘CN subheadings’ in those cases where a corresponding rate of duty is specified; (c) preliminary provisions, additional section or chapter notes and footnotes relating to CN subheadings.

Each CN subheading has an eight digit code number : (a) the first six digits are the code numbers relating to the headings and subheadings of the harmonized system nomenclature; (b) the seventh and eighth digits identify the CN subheadings

The European Commission established an integrated tariff, of the European Communities, referred to as the TARIC, based on the combined nomenclature.

Commercial Attaché The commerce expert on the diplomatic staff of his/her country’s embassy or large consulate.
Commercial Invoice This document contains a full itemosed description of goods, along with packing marks, weights, insurance details and information regarding transportation routes. Some countries require Chamber of Commerce confirmation of the invoice’s contents; others require all information provided to be given in their own official language.
Commission Agent See Purchasing agent.
Common Carrier An individual, partnership, firm, or corporation that transports persons or goods for payment.
Comparative Advantage A component of free market theory that states that if each nation made just those things which it could produce cheaper relative to a foreign country and then trade with other nations to get that which they could produce relatively cheaper, wealth would expand and everyone would benefit.
Completely Knocked Down (CKD) This is a term often referred to in exports and international trade when goods are imported into a country in unassembled (i.e. in ‘compeletly knocked down’) form and then reassembled in that country usually to facilitate packing and shipping as may be the case with large machines, but also to save on import duties as the component parts being imported may attract a lower duty that the assembled item. This is sometimes refered to as just ‘knocked down’ (KD) form and the difference is that in the case of CKD goods the items are broken down into their most basic parts (i.e. ‘completely’ knocked down), while with KD goods, they may be shipped in partly assembled form with only minor assembly required..
Conditional Free Merchandise free of duty under certain conditions, if the conditions can be satisfied.
Conditionality Countries must adopt specified economic policies as a condition for receiving a loan from multilateral financial institutions such as the International Monetary Fund or the World Bank. One example of conditionality is Structural Adjustment Programs which include stringent austerity measures that in many cases have had devastating effects on struggling economies.
CIF (Cost, insurance, freight) A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
Conference A group of vessel operators joined together for the purpose of establishing freight rates.
Confirmed Letter Of Credit A letter of credit, issued by a foreign bank, the validity of which has been confirmed by a domestic (South Africa) bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment by the local bank even if the foreign buyer or the foreign bank defaults. See Letter of credit.
Confirming Act of a bank other than the issuing bank assuming the liability for payment, acceptance or negotiation of correctly presented documents under a DC – see Confirmation of DCs.
Confiscation The 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.
Consignee The person/company/bank to whom the goods are delivered – usually the importer or the Collecting Bank – see Handling Import Collections.
Consignee marks A 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.
Consignment Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.
Consolidated shipment An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.
Consolidator An agent which brings together a number of shipments for one destination to qualify for preferential airline or shipping rates.
Consignor Also called shipper, is the person/company who sends goods by ship, by land or air. Consolidated Where your exported goods are consolidated or grouped with others, usually in a container, in order to obtain the benefits of cheaper shipping rates. Constructive Transfer A legal fiction which permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory.
Constructive Transfer A legal fiction which permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory.
Consul A government official residing in a foreign country charged with representing the interests of his country and its nationals..
Consular Declaration A formal statement describing goods to be shipped, made out to the consul of the country of destination. Approval from the consul must be obtained prior to shipment.
Consular Invoice 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 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.
Container The 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 (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.
Container (sea cargo) 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.
Containerisation Containerisation involves the unitizing of cargo through the use of standard metal containers and is used by both shipping lines and air cargo lines. Containers provide cargo protection from weather, damage, and theft, and have helped reduce logistical costs and increase the grow of trade..
Container Ship Ocean going ship designed to carry containers both internally and on deck. Some are self sustaining.
Container Yard (CY) 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.
Contingent Liability A liability that arises only under specified conditions, e.g. when a bank opens a DC it incurs an obligation to make a future payment on condition that the terms are fully met.
Conventional Tariff A tariff established in the agreements resulting from tariff negotiations under the GATT (see GATT).
Convertible Currency A currency that can be bought and sold for other currencies at will.
Corporation, Private Any corporation which is organized for the purpose of establishing, operating and maintaining a foreign-trade zone and which is chartered under a special act of the State within which it is to operate such a zone.
Corporation, Public A State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of one or more States.
Correspondent Bank A bank that, in its own country, handles the business of a foreign bank.
Cost And Freight (C & F) A pricing term indicating that the cost of the goods and freight charges are included in the quoted price.
Cost And Insurance (C & I) A pricing term indicating that the cost of the product and insurance are included in the quoted price.
Cost, Insurance And Freight (C.I.F) . Same as C&F except that seller also provides insurance up to the named destination. Cost, Insurance, Freight A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
Cost, Insurance And Freight & Commission (C.I.F & C) Same as C.I.F and price includes commission as well.
Countertrade The sale of goods or services that are paid in whole or in part by the transfer of goods or services from a foreign country. Countertrade The sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a foreign country.
Countervailing duties These are special and additional duties that are imposed on imported merchandise when it has been determined that a foreign government has been subsidising the production of the merchandise being imported and where the practice is harming a domestic industry. These duties are intended to offset the benefits of the subsidies being paid by the foreign country to its domestic producers/exporters of the goods concerned..
Country of Origin The physical stamp, wording, or marking on an article or merchandise that shows in what country the article or merchandise was produced.
CPT (Carriage Paid To) And CIP (Carriage And Insurance Paid To) Pricing terms indicating that carriage, or carriage and insurance, are paid to the named place of destination. They apply in place of CFR and CIF, respectively, for shipment by modes other than water.
Credit Risk Insurance Insurance which protects the seller against loss due to default on the part of the buyer.
Customhouse Brokers A person or firm, licensed by the U.S. Treasury Department, engaged in clearing goods through U.S. Customs. A brokers duties include preparing the entry form and filing it, advising the importer on duties to be paid;, advancing duties and other costs, and arranging for delivery to the brokers client, the trucking firm or other carrier.
Customs The authorities designated to collect duties levied by a country on imports and exports.
Customs Bonded Warehous An authorised warehouse in the importing country where imported goods may be stored for a certain period of time without the payment of duty or taxes until such time as they are removed from the warehouse.
Customs broker The importer’s agent that transacts custom formalities on the importer’s behalf. The customs broker may need to be licensed by the customs service in the importing country in order to enter and clear goods through Customs..
Customs Tariff Charges imposed by the government of the importing country on imported (and sometimes exported) goods.
Customs Territory Territory of the U.S. in which the general tariff laws of the U.S. apply.
Customs Union 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.
CWO See Cash with Order..
CY See Container Yard..
CY/CFS 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 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.
Date Draft (D/D) A draft payable a specified number of days after the date it was issued, regardless of the date of acceptance.
Dc Bills Bills drawn under documentary credits.
Deactivization Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator.
Declaration A formal representation by the importer or its agent to the Customs Service attesting to the correctness, description, valuation, classification, etc., of the imported merchandise.
Default An act or omission that will result in a claim for duties, taxes, charges or liquidated damages under the FTZ Operator’s Bond
Deferred Payment Credit (DPC) Type of letter of credit providing for payment some time after presentation of shipping documents by exporter.
Delivered At Frontier Term referring to the seller’s obligation to deliver the goods to the buyer at the specified time and the specified frontier at his or her own risk and expense. The buyer is responsible for complying with import formalities and payment of duties.
Delivery Duty Paid Term referring to the sellers obligation to supply goods according to the terms of the contract. At his or her own risk and expense, the seller must deliver the goods, duty paid, at the specified time and the specified frontier, after complying with all necessary formalities at that frontier.
Demand Draft See Sight draft.
Demurrage A charge paid by the charterer to a ship owner to compensate the owner for use of the ship beyond upon the loading and discharging times. Also refers to imported cargo not picked up within prescribed time.
Destination Control Statement Any of various statements that the U.S. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has been authorized.
Devaluation The official lowering of the value of one country’s currency in terms of one or more foreign currencies. For example, if the U.S. dollar is devalued in relation to the French franc, one dollar will “buy” fewer francs than before.
Disc Domestic international sales corporation.
Discounting Act of purchasing an accepted usance bill of exchange at an amount less than the face value.
Discrepancy – Letter of credit When documents presented do not conform to the letter of credit it is referred to as a discrepancy.
Dishonour Non-payment or non-acceptance.
Dispatch 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 party.
Distribution License A license given to an exporter to replace numerous individual validated licenses when there is continuous shipping of authorized products.
Distributor A foreign agent who sells for a supplier directly and maintains an inventory of the supplier’s products.
District Director The district director of customs in whose district the zone is located.
District Engineer The engineer of the Department of the Army in whose district the zone is located.
Dock Receipt A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse facilities.
Document Of Title Evidence of entitlement or ownership, such as a carriers negotiable bill of lading, which allows a party to claim title to the goods in question.
Documentary Against Acceptance (D/A) Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer’s acceptance of the attached draft.
Documentary Credit (Dc) A conditional undertaking by a bank to make payment, often abbreviated to credit. More precisely, it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request of the buyer (applicant) to pay a sum of money against presentation of documents complying with the terms of the credit within a set time limit.
Documentary Draft A draft to which documents are attached.
Documents Against Acceptance (D/A) Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer’s acceptance of the attached draft.
Documents Against Payment (D/P) Payment for goods without a guaranteed form of payment in which the documents transferring title to the goods are not given to the buyer until he/she has signed a sight draft.
Documents Of Title Documents that give their owner the right to the goods, i.e. Bill of Lading.
Doha Development Round The round of World Trade Organization talks that began in 2001 at Doha, Qatar, where developing countries scored significant victories on intellectual property rights and health but still have uphill battles on market access and subsidies in areas such as agriculture.
Draft 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 Articles manufactured or produced in the United States with the use of imported components or raw materials and later exported are entitled to a refund of up to 99 percent of the duty charged on the imported components. The refund of duty is known as a drawback.
Drawee The individual or firm on whom a draft is drawn and who owes the stated amount. Compare Drawer. Also see Draft.
Drawer The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.
Dr-Cafta See CAFTA
Due Date Maturity date for payment
Dumping Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment..
Duty A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factor such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).
Duty Drawback A partial refund of duties paid on importation of goods that are further processed and then re-exported, or exported in same condition as imported.
Embargo A restriction or prohibition upon exports or imports for specific products or specific countries.
Emc See Export management company.
Entry The process for getting imported merchandise released from the Customs Service.
Entry Papers Documents that must be filed with U.S. Customs officials describing goods imported, such as the commercial invoice, Ocean Bill of Lading or Carrier Release.
Etc See Export trading company.
Eurodollars U.S. dollars placed on deposit in banks outside the United States; usually in Europe.
European Economic Community (Eec) An economic grouping of countries also known as the European Common Market, organized by the Treaty of Rome in 1957. Member countries are Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom. The EEC was the largest trading bloc in the world until the North American Free Trade Agreement created a larger market beginning in January 1994.
Ex From. When used in pricing terms such as “ex factory” or “ex dock,” it signifies that the price quoted applies only at the point of origin (in the two examples, at the seller’s factory or a dock at the import point). In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.
Ex Mill (Ex Warehouse, Ex Mine, Ex Factory) A sale term used by a seller describing the net cost of goods at placement on a mill, a warehouse, a mine or a factory.
Ex Ship An international trade term meaning that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contract. The seller must bear the full cost and risk involved in bringing the goods to the buyer.
Ex Works An international trade term meaning that the seller’s sole responsibility is to make the goods available at sellers premises. The seller is not responsible for loading the goods on the vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved in bringing the goods from there to buyers desired destination.
Exchange Permit A government permit sometimes required by the importer’s government to enable the importer to convert his or her own country’s currency into foreign currency with which to pay a seller in another country.
Exhibition The showing of merchandise within a zone, usually to prospective buyers.
Eximbank The Export-Import Bank of the United States.
Expiry Date Latest date, usually in the country of the beneficiary, on which negotiation/payment of a DC can take place.
Export Broker An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales.
Export Commission House An organization which, for a commission, acts as a purchasing agent for a foreign buyer.
Export Declaration A formal statement made to Customs at the exit port declaring full particulars about goods being exported.
Export License A government document that permits the licensee to export designated goods to certain destinations. See General export license and Individually validated export license.
Export Management Company (EMC) A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission.
Export Quotas Restrictions or set objectives on the export of specified goods imposed by the government of the exporting country. Such restraints may be intended to protect domestic producers and consumers from temporary shortages of certain materials or as a means to moderate world prices of specified commodities. Commodity agreements sometimes contain explicit provisions to indicate when export quotas should go into effect among producers.
Export Rate A freight rate specially established for application on export traffic and generally lower than the domestic rate.
Export Trading Company A firm similar or identical to an export management company.
F.O.B. Freight Allowed The same as F.O.B. named inland carrier, except the buyer pays the freight charges of the inland carrier and the seller reduces the invoice by that amount.
F.O.B. Freight Prepaid The same as F.O.B. named inland carrier, except the seller pays the freight charges of the inland carrier.
F.O.B. Named Inland Carrier Seller must place the goods on the named carrier at the specified inland point and obtain a bill of lading. The buyer pays for the transportation.
F.O.B. Named Port Of Exportation Seller is responsible for placing the goods at a named point of exportation at the sellers expense. Some European buyers use this form when they actually mean F.O.B. vessel.
F.O.B. Vessel Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.
Factoring Houses Certain companies which purchase international accounts receivable at a discount price, usually about two to four percent less than their face value. The fee charged the exporter is offset by the immediate availability of payment, plus the reduction in risk for the exporter.
Fair Trade These companies negotiate directly with the growers or producers of products to establish a fair price for the product. In commodities such as coffee, organizations have committed to paying a price and following procedures, which meet needs of the small growers even when the world market is below that price.
FAS Free alongside ship. A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.
Fast Track A procedure adopted by the US Congress, at the request of the President, committing Congress to vote to pass or reject a trade agreement without amendment. Critics argue that this procedure is undemocratic because Congress members cannot amend or reject objectionable clauses before agreements are passed. Fast Track was first introduced in the Trade Act of 1974. See Trade Promotion Authority(TPA)
Fca “Free carrier” to named place. Replaces the former term “FOB named inland port” to designate the seller’s responsibility for the cost of loading goods at the named shipping point. May be used for multimodal transport, container stations, and any mode of transport, including air.
Fcia Foreign Credit Insurance Association.
Fdi Foreign Direct Investment is the purchase by the investors or corporations of one country of non-financial assets in another country. This involves a flow of capital from one country to another to build a factory, purchase a business or buy real estate.
Fi Free in. A pricing term indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods from the vessel.
Financed Bills Bills sent on collection in which the remitting branch has a financial interest.
First In-First Out (Fifo) An accounting method based on an assumption regarding the flow of goods that older stock is disposed of first, in accordance with good merchandising policy.
Floating Policy See Open policy.
Fo – Free out. A pricing term indicating that the charterer of a vessel is responsible for the cost of loading goods from the vessel.
Fob “Free on board” at named port of export. A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods upon an overseas vessel provided by or for the buyer.
Force Majeure The title of a standard clause in marine contracts exempting the parties for nonfulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war.
Foreign Bill Purchased (Fbp) A bill remitted to a correspondent bank in which the remitting branch is financing the exporter – see Financing Export Collections.
Foreign Exchange The currency or credit instruments of a foreign country. Also, transactions involving purchase or sale of currencies.
Foreign First (Fofi) An accounting method based on an assumption regarding the flow of goods that foreign status merchandise is disposed of first.
Foreign Freight Forwarder A corporation carrying on the business of forwarding who is not a shipper or consignee. The foreign freight forwarder receives compensation from the shipper for preparing documents and arranging various transactions related to the international distribution of goods. Also a brokerage fee may be paid to the forwarder from steamship lines if the forwarder performs at least two of the following services: (1) coordination of the movement of the cargo to shipside; (2) preparation and processing of the Ocean Bill of Lading; (3) preparation and processing of dock receipts or delivery orders; (4) preparation and processing of consular documents or export declarations; and (5) payment of the ocean freight charges on shipments.
Foreign Sales Agent An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.
Foreign Trade Zone See Free-trade zone.
Foreign Trade Zone Entry A form declaring goods which are brought duty-free into a Foreign Trade Zone for further processing or storage and subsequent exportation and/or consumption.
Forfaiting Forfaiting, similar to factoring, is an arrangement under which exporters actually forfeit their rights to future payment in return for immediate cash. The arrangement is commonly used for sales of capital equipment with terms of one-to-five years.
Foreign-Based Agent/Distributor An individual or firm serving as the foreign representative of U.S. suppliers, locating buyers for them in the foreign market.
FOREIGN-TRADE ZONE/FREE TRADE ZONE A port designated by the government of a country for duty-free entry of any non-prohibited goods.  Merchandise may be stored, displayed, or used for manufacturing, etc., within the zone and reexported without duties being paid.
Foreign-Trade Zone/Free Trade Zone A port designated by the government of a country for duty-free entry of any non-prohibited goods.  Merchandise may be stored, displayed, or used for manufacturing, etc., within the zone and reexported without duties being paid.
FOREIGN-TRADE ZONE/FREE TRADE ZONE A port designated by the government of a country for duty-free entry of any non-prohibited goods.  Merchandise may be stored, displayed, or used for manufacturing, etc., within the zone and reexported without duties being paid.
Foreign-Trade Zones Act The Foreign-Trade Zones Act of June 18, 1934, (48 Stat. 998-1003; 19 U.S.C. 81a-81u) as amended.
Foreign-Trade Zones Board The Board which is established to carry out the provisions of the Foreign-Trade Zones Act.
Forward Exchange Contract Contract between the Bank and its customer to buy/sell a fixed amount of foreign currency at a future date at a specified rate. This could be for a customer to make payment under a DC or to sell the proceeds received from an export negotiation.
Foul Bill Of Lading A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare Clean bill of lading.
FREE ALONGSIDE (F.A.S.) (Or Free Alongside Steamer) The seller must deliver the goods to a pier and place them within reach of the ships loading equipment. The buyer arranges ship space and informs the seller when and where the goods are to be placed.
Free In (F.I.) A pricing term indicating that the charter of a vessel is responsible for the cost of loading and unloading goods from the vessel.
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 Port An area such as a port city into which merchandise may legally be moved without payment of duties.
Free Trade A term based on a theory in economics, but in reality the practice is something quite different. The theory of free trade contends that everyone in the world will be better off if each nation eliminates tariffs and other barriers to the flow of products across borders. The practice of “free trade” departs from theory by including the export of money either for investment purposes or speculation. With firms able to move both money and products around the world, the benefits of lower prices and higher wages have not been enjoyed by most people. In addition, under recent “free trade” agreements, the concept of barriers to trade has been expanded to include domestic regulations, public health and human rights measures, and environmental protection laws which inhibit business activity.
Free-Trade Zone A port designated by the government of a country for duty-free entry of any nonprohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., 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 Forwarder An independent business that handles export shipments for compensation. (A freight forwarder is among the best sources of information and assistance on export regulations and documentation, shipping methods, and foreign import regulations.)
Freight To (Named Destination) The seller must pay to forward the goods to the agreed destination by road, rail or inland waterway and is responsible for all risks of the goods until they are delivered to the first carrier.
Fta A free trade area is a term used for a group of states that have reduced or eliminated trade barriers between themselves, but who maintain their own individual tariffs as to other states.
Ftaa The Free Trade Area of the Americas (FTAA) is an ambitious trade agreement would include all 34 countries in Central America, South America, and the Caribbean (except Cuba). The FTAA was proposed in 1994 right after the North American Free Trade Agreement (NAFTA) was enacted in attempt to expand that agreement and create the world’s largest free-trade bloc.