∙ Glossary of International Trade Terms ∙

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A.A.A. - See American Arbitration Association.

A/d - See After date.

AAR - See Against all risks.

ABI - See Automated Broker Interface.

Acc. - See Acceptance.

Acceptance (Acc.) - 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 - Documentary credit which requires, amongst the documents stipulated, provision of a term bill of exchange.  The bill is then generally accepted by the bank on which it is drawn or discounted.  The practical result is that the beneficiary is paid promptly at a discount.

ACH - See Automated Clearinghouse.

Act of God - Marine Insurance term meaning an act beyond man's control, e.g., lightning, flood, earthquake, etc. The carrier is not legally responsible under most circumstances for such damage.

Act. wt. - Actual weight.

Ad valorem duty - According to value, a rate of duty based upon a percentage of the appraised value of the imported merchandise. See Duty.

ADR - Alternative dispute resolution.

Advance against documents - Loan made on the security of the documents covering the shipment.

Advance payment guarantee/bond - Guarantee that advance payments will be returned if the party having received such payments does not perform its part of the contract.

Advised letter of credit - Credit the opening of which the beneficiary is informed by a local bank.

Advising bank - Bank, operating in the exporter’s country, which handles letters of credit for a foreign bank by notifying the export firm that the credit has been opened in its favor. The advising bank fully informs the exporter of the conditions of the letter of credit without necessarily bearing responsibility for payment.

Advisory capacity - Term indicating that a shipper’s agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented. Compare without reserve.

Affreightment (Contract of) - Agreement between a steam ship line (or similar carrier) and an importer or exporter in which cargo space is reserved on a vessel for a specified time and at a specific price. The importer/exporter is obligated to make payment whether or not the shipment is made.

After date - Payment on a negotiable instrument, such as a bank draft, becomes due a specified number of days after presentation of the draft.

After sight - Phrase indicating that the date of maturity of a draft or other negotiable instrument is due a specific number of days after presentation of the draft to the drawee or payee. Compare After sight and At sight.

Agent/agency agreement - Agent is an independent person or legal entity which acts on behalf of another (the ‘principal’).  In international transactions, generally refers to a sales representative who prospects on behalf of a foreign principal, earning commission on sales eventually concluded between the principal and the ultimate client.  See Foreign sales agent.

Agio - Extra amount over and above the market price which is paid in countertrade transactions and results from the particular costs of countertrade.

AGR imports - American goods returned.

AI - All Inclusive Rates.

Air Waybill (AWB) - Bill of lading that covers both domestic and international cargo transported via air freight. This is a nonnegotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and as a contract of carriage obligating the carrier to deliver the cargo to the airport of destination according to specified conditions as outlined on the lading itself and within the carrier’s own tariff.

All-in - Freight quotation including all charges, often in one lump sum rather than broken down.

All-risk Clause - Insurance condition stating that all loss or damage to goods is insured. It is the broadest kind of standard coverage, but it excludes damage caused by war, strikes, riots or inherent vice.

Alongside - 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.

Alternative dispute resolution (ADR) - General term for a variety of dispute-resolution mechanisms which may be used as alternatives to traditional litigation before governmental courts or tribunals. May be said to include such techniques as conciliation, mediation, arbitration, re-negotiation, and mini-trial.

Amendment - Proposed change to a letter of credit.

American Arbitration Association (A.A.A.) - Perhaps the world’s largest arbitration forum and institution; the great bulk of cases handled under its rules and procedures are domestic US cases, although the A.A.A. does have specific rules for international cases.

AN - Arrival notice.

Antidiversion clause - See Destination control statement.

Antidumping Duty - Duty assessed on imported merchandise that is subject to an antidumping duty order; assessed on an entry-by-entry basis in an amount equal to the difference between the United States price of that entry and the foreign market value of such or similar merchandise at the time the merchandise was sold to the United States .

Antidumping Duty Order - Notice issued announcing the determination of dumping and providing for the imposition of antidumping duty to be collected by CBP.

Applicant - In the documentary credit process, normally the buyer or importer, who applies (thus, the applicant) for a letter of credit in favor of the beneficiary, the seller.

AQ - Any quantity.

Arbitrage - Process of buying foreign exchange, stocks, bonds, and other commodities in one market and immediately selling them in another market at higher prices.

Arbitrary - Stated amount over a fixed rate to one point to make a rate to another point.

Arbitration - Process of dispute resolution in which a neutral third party (arbitrator) renders a decision after a hearing at which both parties have an opportunity to be heard.  Arbitration may be voluntary or contractually required.

Arrival Notice - Notice sent by the carrier informing the consignee, notify party, and also notify party of the arrival date of the cargo. Other pertinent information for shipment may be included, such as bill of lading number, weight, charges due and location of cargo.

Asian dollars - U.S. dollars deposited in Asia and the Pacific Basin . Compare Eurodollars.

ATA Carnet - “Admission Temoraire/Temporary Admission.” An international customs document for the temporary duty-free admission of goods into a country for display, demonstration, or similar purposes. ATA Carnets are issued by national chambers of commerce, which guarantee the payment of duties to local customs authorities should the goods not be ultimately re-exported. See Carnet.

At Sight - Phrase indicating that payment on a draft or other negotiable instrument is due upon presentation or demand. Compare After sight and After Date.

Automated Broker Interface (ABI) - Part of Customs’ Automated Commercial System, permits transmission of data pertaining to merchandise being imported into the United States .  Qualified participants include brokers, importers, carriers, port authorities, and independent data processing companies referred to as service centers.

Automated Clearinghouse (ACH) - Function within the CBP Automated Commercial System that combines the elements of bank lock box with electronic funds transfers replacing the payment of customs duties by either check or cash.

Automated Commercial System (ACS) - Customs & Border Protection’s Automated Commercial System is a joint public-private sector computerized data processing and telecommunications system linking customhouses, members of the import trade community, and other government agencies with the Customs computer.

Automated Export System (AES) - An electronic means of filing Shipper’s Export Declarations.  http://www.aesdirect.gov

Automated Manifest System (AMS) - Module of CBP’s Automated Commercial System into which international carriers electronically file cargo manifest data permitting CBP real-time visibility to cargoes inbound to the U.S.

Av. - Average.

Aval - Bank’s guarantee to pay a bill of exchange.  An irrevocable, unconditional promise to pay on the due date.  The use of avals is common in the practice of forfeiting.

AWB - See Air waybill.

Awkward Cargo - Cargo of irregular size that is either containerized or un-containerized. It requires prior approval, depending on the circumstances, before confirmation of booking.

Balance of Payments - Difference between a country’s total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.

Banker’s Acceptance - Draft drawn on and accepted by a bank.  Depending on the bank’s creditworthiness, it can be a financial instrument that can then be discounted.

Back-to-back credit - Commercial device under which a middleman uses a documentary credit to open a second credit in favor of a supplier. It should be distinguished from a transferable credit.

BAF - See Bunker adjustment factor.

Bank Guarantee - Assurance obtained from a bank by a buyer that the bank will pay the seller the stated amount of the guarantee should the buyer default on payment. A Bank Guarantee may not be issued in the U.S. by U.S. banks. See Letter of Credit.

Bank Release - Negotiable time draft drawn on and accepted by a bank which has added its own credit to that of the buyer.

Barratry - Negligence or fraud on the part of a ship’s officers or crew resulting in injury or loss to the ship’s owners.

Barter - 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.

Basic points - One thousandths; 1/100 of 1%; i.e., 100 basis points is equal to 1%.

B/B - Breakbulk (cargo).

B/D - Bank draft.

Beneficiary - The person in whose favor a letter of credit is issued or a draft is drawn.

Berne Union - International Union of Credit and Investment Insurers.

Berth - Location alongside a quay (pier) where a ship ties up to load or discharge cargo.

B/G - Bonded goods. See Bonded warehouse.

Bill of exchange (B/E) - See Draft.

Bill of lading (B/L) - 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 and actuated by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. Also see Air waybill, Inland bill of lading, Ocean bill of lading, and Through bill of lading. It may also be used as an instrument of ownership, which can be bought, sold or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order Bill of Lading."

• "Clean B/L" is issued when the shipment is received in good order. If damage or a shortage is noted, a clean bill of lading will not be issued.
• "On Board B/L" certifies that the cargo has been placed aboard the named vessel and is signed by the master of the vessel or his representative. On letter of credit transactions, an On Board B/L is usually necessary for the shipper to obtain payment from the bank. When all bills of lading are processed, a "ships manifest" is prepared by the steamship line. This summarizes all cargo aboard the vessel by port of loading and discharge.
• "Inland Bill of Lading" is also known as the "Waybill" on rail or the "Pro Forma B/L" in trucking. It's used to document the transportation of the goods between the port and the point of origin or destination. It should contain information, such as marks, numbers, steamship line, etc., to match with a dock receipt.

BIMCO - Baltic and International Maritime Conference.

BIS - Bureau of Industry and Security within the U.S. Department of Commerce. It is the agency responsible for regulatory control over the export of dual-use goods and conventional arms. It publishes and enforces the Export Administration Regulations of the U.S.

BOLERO - Originally a system for transmission of electronic bills of lading. In the process of being expanded by SWIFT into an electronic platform for transmission of all trade documents.

Bonded warehouse - Warehouse authorized by a customs authority for storage of goods on which payment of duties is deferred until the goods are removed for entry into the commerce of the country or exported from the country.

Booking - Arrangement with a steamship or air line company for the acceptance and carriage of freight on a common carrier. The equivalent of a reservation for cargo..

Box - Slang term for an ocean container for cargo.

Breakbulk  (BB) - Non-containerized cargo which is grouped or consolidated for shipment, and then later broken down, subdivided, or distributed at a further destination point.

Brokerage - Fee paid to freight forwarder by the carrier for services performed.

Brussels Tariff Nomenclature (BTN) - See Nomenclature of the Customs Cooperation Council.

Bulk Cargo - Cargo that is not packed in any way as it is loaded and carried aboard a ship. It is neither marked nor counted by number. It is in a loose, unpackaged form. E.g., crude oil, coal, iron ore, grain.

Bulk Freight - Not in packages or containers, shipped loose in the hold of the ship. Grain, coal and sulfur are usually bulk freight.

Bunkers - Ship’s fuel carried in the ship’s tanks to power the engines.

Bunker Adjustment Factor (BAF) - Surcharge levied in addition to the freight rate to compensate the carrier for differentials in the cost of purchasing fuel (bunkers) to power the ship’s engines.

Bunker Surcharge (BSC) - Extra charge by carrier to adjust for temporarily higher fuel costs. Also called fuel surcharge.

Buy-back (compensation) - Form of countertrade under which exporters of, e.g. heavy equipment, technology, or plant facilities agree to purchase a certain percentage of the output of the new facility once it is in production. See Countertrade.

Buying agent - See Purchasing agent.

Cabotage - Law which requires coastal and intercoastal movement of goods to be carried aboard ships registered in the country that owns the coast.

C & F - Common but non-standard version of Cost and Freight.

CAD - Cash against documents.

CAF - Currency Adjustment factor.

Call - Demand for payment under a loan or guarantee. In the case of demand guarantees, the abusive resort to the guarantee (i.e. in the absence of non-compliance by the principal) is sometimes referred to as an unfair call.

CBD - Cash before delivery.

Cargo NES or Cargo NOS (Cargo Not Elsewhere Specified or Cargo Not Otherwise Specified) -   Carrier’s tariff description for items not specifically listed in the tariff. Usually the highest rate.

Caribbean Basin Economic Recovery Act (CBERA) - Provides nonreciprocal tariff preference to eligible goods entered into the U.S. from developing countries in the Caribbean Basin in order to aid in their economic development.

CARICOM - Caribbean Common Market includes 13 English speaking Caribbean countries. This common market was formed in 1973. See Common Market.

Carnet  - Customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds or undertaking the usual customs formalities typically required for the entry of goods.

Cartel - Organization formed to regulate or control the production, pricing, or marketing practices of its members in order to limit competition and maximize market power.

Carriage and Insurance Paid (CIP) named point - Exporter’s price includes the cost of the merchandise, all shipping costs to the named point (inland city) and insurance.

Carriage paid to (CPT) and Carriage and insurance paid to (CIP) - Incoterms indicating that carriage, or carriage and insurance, are paid to the named place of destination. With either term, the buyer bears the risk of loss and damage while goods are in international transit. They may be used in place of CFR and CIF respectively as they accommodate all modes of transport.

Carrier Certificate and Release Order (Carrier Certificate) - Used to advise Customs of the details of the shipment, its ownership, port of lading, etc. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.

Cash against documents (CAD) - Payment for goods in which a bank, commission house, or other intermediary, transfers title documents to the buyer upon payment in cash.

Cash in advance (CIA) - Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases, initial purchases, or when the goods are built to order.

Cash with order (CWO) - Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.

CBM - Cubic Meter.

Certificate of inspection - Document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.

Certificate of Manufacture - Documents used with letters of credit when drafts are paid/negotiated on presentation of a certificate stating that goods have been completed and are being held for shipment.

Certificate of origin - Document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods.

C & F - Cost and freight.

CFR - Cost and freight.

CFS (Container Freight Station) - Storage/warehouse facilities for loading/unloading less than full container orders.

CFS/CFS - Cargo movement delivered loose at origin point, devanned by carrier at destination, and picked up loose at destination terminal.

CFS/CY - Loose cargo received at origin point, loaded in a container by carrier, then delivered intact at destination.

Chamber of Commerce - Association of business people organized to promote local business interests.

Charter party - Written contract, usually on a special form, between the owner of a vessel and a “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.

Chassis - Wheeled flat bed trailer on which to mount a cargo container for transport.

CHB - Customhouse Broker

Chemical Weapons Convention - Signed by some 160 nations, the CWC prohibits the development, production, stockpiling, distribution or use of chemical weapons.

Chemtrec - Chemical Transportation Emergency Center ; organization available on a 24-hour basis to provide emergency response information to anyone involved in hazardous chemical accidents. 800-424-9300

CIA - Cash in Advance.

C & I (Cost and Insurance) - Pricing term indicating that these costs are included in the quoted price.

CIF - Cost, insurance & freight.

CIF & C - Cost, insurance, freight and commission. (also CIF & I – Cost, insurance, freight, and interest); and CIF & CI (Cost, insurance, freight, commission and interest). These are variants on the standard Incoterms 1990 term CIF and not covered by international standard definitions.

CIF & E - Cost, Insurance, Freight, and (Currency) Exchange. A pricing term indicating that these costs are included in the quoted price.

CIP - Carriage and Insurance Paid To… (named point).

CISG - U.N. Convention on the Contract for the International Sale of Goods. A U.N. convention developed to provide uniformity in structure, content, and application of international contracts between buyers and sellers for the sale of goods. When cited within a contract as the governing authority, the provisions of the convention are afforded the force of law. The CISG applies automatically to all contracts for the sale of goods between traders from two different countries that have both ratified the CISG, unless the parties to the contract expressly exclude all or part of the CISG or expressly stipulate a law other than the CISG.

Claim - When used in Marine Insurance, means a demand made by a shipper or insurance company upon a carrier for payment of a loss sustained through its negligence.

Claused bill of lading - Claused (or foul) bill of lading contains notations or remarks as to defects in the goods and/or packaging. See Bill of lading and clean bill of lading.

Cld. - Cleared (through customs).

Clean bill of lading - 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. Compare Foul bill of lading.

Clean draft - Draft to which no documents have been attached.

Clean Report of Findings - Certificate of inspection of goods and verification of selling price issued by an inspection company (usually required by the buyer’s country).

CMR - International road transport convention.

COD - Collect (Cash) on Deliver; Carried on Docket (pricing); Change of Destination.

COFC (Container on Flat Car) - Containers moving on articulated flat cars without chassis.

Collecting bank - In a documentary collection, the bank acting as an agent for the seller’s bank in collecting payment or acceptance of a time draft from the buyer to be forwarded to the seller’s bank (the remitting bank). See Documentary collection.

Collection papers - All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

Commerce Control List (CCL) - List of dual use goods and conventional arms established within the Industrial List of the Wassenaar Arrangement. This list is found in Title 19, U.S. Code of Federal Regulations, Part 774 Supplement 1. Classification of a prospective export of commodity, technology or software within the CCL will determine the degree of export control the U.S. will exercise over the shipment.

Commercial attaché - Commerce expert on the diplomatic staff of his or her country’s embassy or large consulate.

Commercial invoice - Priced list of goods shipped, identifying seller and buyer, and including sales and payment terms.

Commission agent - See Purchasing agent.

Commodity Jurisdiction - Export jurisdiction of products is administered by the State Department's Office of Defense Trade Controls (DTC) if the commodities are defense articles, technical data, and services or by the Commerce Department's Bureau of Export Administration if the commodities are dual-use items. An exporter may request DTC to conduct a commodity jurisdiction (CJ) review if the exporter is uncertain as to whether an item is covered by the United States Munitions List (USML) or believes it has been inappropriately placed on the list. CJ procedures include deadlines for making a determination and the use of criteria assessing: (a) performance, (b) significant military or intelligence applicability, and (c) significant civilian applicability.

Common External Tariff - Uniform tariff adopted by a customs union (e.g. European Community) to be assessed on imports entering a region from countries outside the union.

Common Market - Common market (as opposed to a free trade area) has a common external tariff and may allow for labor mobility and common economic policies among the participating nations. The European Community is the most notable example of a common market.

Common carrier - Individual, partnership, or corporation that transports persons or goods for compensation.

Commonwealth - Commonwealth is a free association of sovereign independent states that has no charter, treaty, or constitution. The association promotes cooperation, consultation, and mutual assistance among members. The British Commonwealth (with headquarters in London , England ) is the most notable example.

Compound duty - Combination of both a specific rate of duty and an ad valorum rate of duty. Whereas specific duties are based on factors such as weight or quantity, ad valorum duties are based on the value of the goods. See Customs duty.

Conference - Group of steamship companies or shipping lines which have associated to offer regular service on specific routes at publicly announced prices.

Confirmed export letter of credit - Letter of credit, issued by a foreign bank, the validity of which has been confirmed by another bank usually in the seller’s country. An exporter presenting conforming documents against a confirmed letter of credit is assured of payment by the confirming bank, even if the buyer or the opening bank defaults. See Letter of credit.

Confirming bank - In letter of credit transactions, the bank which adds its own irrevocable undertaking for payment in addition to that given by the issuing bank. Usually located in the exporter’s country.

Conlinebill - Liner bill of lading published by the Baltic and International Maritime Conference (B.I.M.C.O).

Connecting Carrier - Intermediary carrier utilized to connect cargo to/from the mother vessel. Also known as "feeder service."

Consignee - In international export transactions: the intended receiver of a cargo shipment. The named person or legal entity having the right to claim the merchandise from the carrier at destination, and generally recognized as the legal owner for customs purposes. In international representation or distributorship relations: the holder and reseller of merchandise, who receives payment in the form of commission or a discount as and when sales are made but does not have to purchase the goods in advance.

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.

Consolidator - Company who combines small shipments to a common point for convenience and special rate to accommodate the customer.

Consolidation - Air freight forwarder’s system of combining many small shipments into one large shipment on a scheduled aircraft. (Slang: Consol)

Consortium - Group of carriers pooling resources in a trade lane to maximize their resources efficiently.

Constructed Value - Means of determining fair or foreign market value when sales of such or similar merchandise do not exist or, for various reasons, cannot be used for comparison purposes. The "constructed value" consists of the cost of materials and fabrication or other processing employed in producing the merchandise, general expenses of not less than 10 percent of material and fabrication costs, and profit of not less than 8 percent of the sum of the production costs and general expenses. To this amount is added the cost of packing for exportation.

Consular declaration - Formal statement, made to the consul of a foreign country, describing goods to be shipped.

Consular invoice - Document, required by some foreign countries, describing a shipment of goods and showing information such as the seller, buyer, 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.

Consularization - Approval of export documents by a foreign consulate or other entity in the United States .

Consumption entry - Type of customs entry admitting goods into the commerce of the United States . May be formal or informal.

Container Freight Station (CFS) - Where less-than-container-load ocean shipments are brought to be loaded into a container (export) or unloaded from containers and made available for customs clearance (import).

Container - Vehicle designed to transport cargo of many types in continuous transportation. They are constructed as to not fail under stress or handling over a long period of time. Most ocean vessels can accommodate 20' and 40' length ocean containers for below deck storage and any size above deck. Containers may be ventilated, insulated, flat rack (open sided), reefer (refrigerated), vehicle rack, or open top.

Container Load Plan (CLP) - Document prepared to show all details of cargo loaded in a container, e.g. weight (individual and total), measurement, markings, shipper, the origin of goods and destination, as well as location of the cargo within the container.

Container services charges - See Terminal handling charges.

Container Yard (CY) - Where ocean containers are received, stored, and made available for delivery.

Contingency insurance - Insurance coverage taken out by one party to an international transaction to complement and fill in any gaps in the coverage taken out by the counterparty.

Containership - Ocean vessel specifically designed to carry ocean cargo containers. It's fitted with vertical cells for maximum loading/discharge efficiency.

Convertible currency - Currency that can be bought and sold for other currencies at will.

Correspondent - Bank, Customs Broker, freight forwarder, etc. working with others in another city or country to expediate transactions.

Correspondent bank - Bank that, in its own country, handles the business of a foreign bank.

Cost and freight (CFR) - Term of sale (Incoterm) indicating that the international freight is arranged by and charges for same are borne by the seller of the goods. The buyer bears the risk of loss and damage while goods are in international transit. Applies to only ocean and inland waterway modes of transport.

Cost, insurance & freight (CIF) - Term of sale (Incoterm) indicating that the cost of the goods, insurance, and freight are included in the quoted price.

Counterpurchase - Agreement of an exporter to purchase a quantity of unrelated goods or services from a country in exchange for and approximate in value to the goods exported.

Countertrade - Sale of goods or services that are paid for in whole or in part by the transfer of goods or services rather than money. See Barter.

Countervailing duty (CVD) - Duty levied on an imported good to offset subsidies to producers or exporters of that good in the exporting country. GATT Article VI permits the use of such duties if material injury to the importing country's producers occurs.

Country of Origin - U.S. Customs & Border Protection defines country of origin as the country where an article was wholly grown, manufactured or produced, or, if not wholly grown, cultivated or produced in one country, the last country in which the article underwent a substantial transformation. Duty rates vary according to the country of origin.

Court of International Trade - Has jurisdiction over any civil action against the United States arising from Federal laws governing import transactions. The court hears antidumping, product classification, and countervailing duty matters as well as appeals of unfair trade practice cases from the International Trade Commission. The court was originally established in 1890; principal offices are located in New York City , but the court is empowered to hear and determine cases arising at any port or place within the jurisdiction of the United States . The judges are appointed for life by the President, subject to Senate confirmation.

Courtage - (Fr.) Brokerage; brokerage fee.

Cover note - Insurance document indicating coverage of a particular shipment under an open cover policy. Also known as broker’s cover note; to be distinguished, particularly as regards presentation under a documentary credit, from an insurance policy or insurance certificate.

CPT - Carriage paid to.

Credit risk insurance - Insurance designed to cover risks of nonpayment. Compare Marine insurance.

Credit Agreement - Agreement between carrier and shipper for release of cargo with promise to pay ocean freight within specified time.

c/s - Case(s).

CSC - Container service charge.

CST - Commodity Specialist Team.

Cumulative Revolving Letter of Credit - Revolving L/C under which unused amounts can be carried forward and become available under the next draft.

Currency Adjustment Factor (CAF) - Additional charge in carrier’s tariff when the currency used for payment is valued low in relation to other currencies.

Currency future - Contract for the future delivery of a commodity, currency or security on a specific date.

Currency option - Contractually-agreed right to buy (call option) or to sell (put option) a specific amount of a foreign currency at a predetermined price on a specific date (European option) or up to a future date (American option).

Customs broker - Individual or firm licensed to enter and clear goods through customs.

Customs duty - Tax levied by the government on goods crossing the customs border, usually a tax imposed on imports.

Customs - Authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.

Customs Entries - Custom Entries are classified in several ways:

• Consumption Entry - Form required by U.S. Customs for entering goods into the U.S. The form contains information as to the origin of the cargo, a description of the merchandise, and estimated duties applicable to the particular commodity. Estimated duties must be paid when the entry is filed.
• Immediate Delivery Entry (I.D. Entry) - Procedure used to expedite the clearance of cargo. It allows up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits delivery of the cargo prior to payment of the estimated duty and then allows subsequent filing of the consumption entry and duty.
• Immediate Transportation Entry (I.T. Entry) - Allows the cargo to be moved from the pier to an inland destination via a bonded carrier without the payment of duties or finalization of the entry at the port of arrival. Cargo must clear Customs at the inland destination point.
• Transportation and Exportation Entry (T&E Entry) - Allows goods coming from or going to a third country (such as Canada or Mexico ) to enter the U.S. for the purpose of Trans-shipments.

Customhouse Broker - Individual or firm licensed to enter and clear goods through customs.

Customs union - Association between two or more countries whereby they eliminate tariffs and other import restrictions on each other’s goods and establish a common tariff on the goods from all other countries.

Customs Valuation Code - Formally known as the “Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade,'' this MTN agreement provides detailed rules for the determination of value for customs purposes. These rules are designed to provide a fair, uniform and neutral system of valuation based on transaction value and preclude the use of arbitrary or fictitious values.

Cut-Off - Last possible date cargo may be delivered to vessel or designated point.

cw - Commercial weight.

CWO - Cash with order.

cwt - Hundredweight; unit of measurement.

CY (Container Yard) - Storage area where full containers are received and picked up.

CY/CFS - Cargo loaded in a full container by a shipper at origin, delivered to pier facility at destination, and then devanned by carrier for loose pick up.

CY/CY - Cargo loaded by shipper in a full container at origin and delivered to carrier's terminal at destination for pick up intact by consignee.

D/A - Documents against acceptance.

DAF - Delivered at Frontier.

Date draft - A draft that matures in a specified number of days after the date it is issued, without regard to the date of acceptance. See Draft, Sight draft, and Time draft.

D/C - documentary credit.

D/D - delivered.

ddc (also D.D.C.) -  Sometimes said to be “delivered destination charges’; referring to various miscellaneous charges in the port of destination; alternatively, said to refer to dispatch money at discharge.

DDP - Delivered Duty Paid.

DDU - Delivered Duty Unpaid.

Deadfreight  - Freight charge to be paid even when shipment was not made, owing to failure by shipper or charterer to actually ship goods in the shipping space for which a reservation was made.

Deadweight - Total carrying capacity of a vessel.

Deck cargo - Goods shipped on the deck of a ship rather than in its holds.

Defense Trade Controls - Directorate of Defense Trade Controls at the Dept. of State administers licenses for the export of defense articles and services including arms, ammunition, and implements of war. These items are listed in the International Traffic in Arms Regulations (ITAR) and the U.S. Munitions List. DTC is involved in the commodity jurisdiction (CJ) process. The CJ process is used to determine whether a particular item should be transferred to another control list (primarily, whether an item may be subject to the ITAR or considered either dual-use and subject to the Commodity Control List). See International Traffic in Arms Regulations.

Deferred air freight - Air freight offered at cheaper rates for non-urgent shipments.

Deferred payment credit - Type of letter of credit providing for payment some time after presentation of shipping documents by exporter.

del. - Delivery.

del credere - As relates to international commercial agency relationships: a del credere agent is one who guarantees the ability to pay of prospective clients he has brought to the principal; in exchange, the del credere agent is usually accorded a higher percentage commission than is a regular agent.

Delivery Instructions -These instructions provide specific information to the inland carrier about the merchandise to the particular pier or steamship line. This term is not to be confused with "Delivery Order" which is used for import cargo.

Delivery order - Order, commonly addressed to a terminal superintendant or warehouse manager, directing the release of specified cargo to a particular receiver.

Delivered at Frontier (DAF) - Incoterm that means the seller's obligations are fulfilled when the goods have arrived at the frontier -- but before "the customs border" of the country named in the sales contract. The term is primarily intended to apply to goods by rail or road but is also used irrespective of the mode of transport. In the U.S. this term of sale is relevant only to U.S. persons selling goods to a Mexican buyer.

Delivered Duty Paid (DDP) - Incoterm for when the seller delivers the goods, cleared for export and import , at the named point in the country of destination.

Delivered Duty Unpaid (DDU) - Incoterm for when the seller delivers the goods, cleared for export, at the named point in the country of destination.

Delivered Ex Ship (DES) - Incoterm for when the seller deliver the goods, cleared fro export, on board the named vessel in the port of destination.

Delivered Ex Quay (DEQ) - Incoterm for when the seller delivers the goods, cleared for export and import, on the quay in the port of destination.

Delivery Verification Certificate - U.S. CBP defines a DVC as a form used to track imported merchandise from the custody of the importer to the custody of a manufacturer and is used to substantiate a manufacturing drawback claim. The DVC is also known as a Certificate of Delivery (Customs Form 331). An export license may be issued with a requirement for delivery verification by a governmental authority in the receiving country. When delivery verification is required by a foreign government for goods imported into the U.S. , the U.S. CBP will certify a delivery verification certificate (Form ITA-647). A U.S. export license may require submission of a similar form from an importing country.

Demand draft - See Sight draft.

Demand guarantee - Guarantee usually issued by a bank, under which the beneficiary is only required to make a demand in order to receive payment.

Demurrage - Penalty for exceeding free time (generally 48 hours) allowed for loading/unloading under terms of railroad/ocean tariffs; detention is used to mean the same thing for motor carriers. Excess time taken for loading or unloading of a vessel not caused by the vessel operator, but due to the acts of a charterer or shipper. Also refers to imported cargo not picked up within prescribed time.

DEQ - Delivered Ex Quay.

DES - Delivered Ex Ship.

Destination control statement - U.S. exporters are required to place destination control statements on commercial invoices and bills of lading for most export sales. These statements alert foreign recipients of goods and documents that diversion contrary to U.S. law is prohibited. Destination control statements are discussed in the Code of Federal Regulations (15 CFR 786.5 and 786.6).

Destination Delivery Charges (DDC) - Unloading charges at destination port of a steamship line of NVOCC.

Destuffing - Unloading goods from a container.

Devanning - Unloading goods from a container.

Devaluation - 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 euro, one dollar will “buy” fewer euros than before.

DISC - Domestic international sales corporation.

Discount - Purchase by a bank or finance house of a bill of exchange at face value less interest.

Discrepancy - Situations where documents do not conform to an L/C’s terms and conditions.

Dispatch Money - Incentive payment paid by a vessel’s operator to a charterer if loading or unloading is completed in less time than stipulated in the charter party. (Also despatch)

Distributor - Foreign company or person who purchases directly from a supplier and maintains an inventory of the supplier’s products.

Diversion - Change made in the route of a shipment.

Dk. - Dock.

D/O - Delivery Order.

Dock receipt - Receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse facilities. Also see Warehouse receipt.

Documentary collection - Method of payment under which the shipping documents relating to a particular cargo are released to the importer on payment (documents against payment D/P) or acceptance (documents against acceptance D/A) of a documentary draft drawn on him by the exporter.

Documentary draft - Draft to which documents are attached.

Documents against acceptance (D/A) - Instructions given by a shipper to a bank indicating that documents transferring possession rights and/or 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) - In the case of a sight draft, the documents transferring title to goods are released to the buyer/importer only against cash payment.

Documentary credit (D/C) - See letter of credit.

Door-to-door - Transport service covering carriage from the seller’s premises to the buyer’s premises. Note that this term refers to a freight charge in a carriage contract between a carrier and a shipper and thus is distinct from the issue of the Incoterm chosen in the contract of sale (an agreement between seller and buyer).

DOT - Department of Transportation.

D/P - Documents against payment.

Draft (or Bill of Exchange) - 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 date. See Date draft, Sight draft, Time draft.

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 - Individual or firm on whom a draft is drawn and who owes the stated amount. Compare Drawer. Also see Draft.

Drawer - Individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee. Compare Drawee. Also see Draft.

D/S - Days after sight.

DST (Double Stack Train) - Rail car train capable of carrying two forty-foot equivalent containers, one on top of each other.

Dumping - Generally seen as an unfair trading practice. It occurs when a good is sold for less than its "fair value", generally meaning it is exported for less than it is sold in the domestic market or third country markets, or it is sold for less than production cost. Article VI of the GATT permits the imposition of special anti-dumping duties against dumped goods, equal to the difference between their export price and their ''fair value'' in the export market, if dumping causes injury in the importing country.

Dumping Margin - Amount by which the imported merchandise is sold in the United States below the home market or third country price or the constructed value (that is, at less than its "fair value"). For example, if the U.S. "purchase price" is $200 and the fair value is $220, the dumping margin is $20. This margin is expressed as a percentage of the United States price. In this example, the margin is 10 percent.

Duty - 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 Rates - Tax imposed by U.S. Customs on imported merchandise. There are three basic types: (1) ad valorem - based on the entered value, (2) specific - an amount per unit of quantity, (3) compound - combination of ad valorem and specific rates.

DWT - Deadweight capacity of vessel to carry cargo.

ECE - See UNECE.

EDI (edi) - Electronic data interchange.

EDIFACT - Electronic Data Interchange for Administration, Commerce, and Transportation EDIFACT is an international syntax used in the interchange of electronic data. Customs uses EDIFACT to interchange data with the importing trade community.

Electronic Date exchange - (EDI) Computer-to-computer transmission of business messages (such as purchase orders, invoices, booking instructions, etc.) according to an agreed standard (such as EDIFACT).

EMC - See Export management company.

Enhanced Proliferation Control Initiative (EPCI) - In December 1990, the United States announced a series of measures -- collectively referred to as the Enhanced Proliferation Control Initiative (EPCI) -- to reduce certain proliferation risks. Under the initiative, the U.S. requires licenses for exports of: (a) precursor chemicals that can be used in making chemical weapons and whole chemical plants to make such precursors; (b) potential chemical and biological weapon-related industrial facilities, related designs, technologies, and equipment; and (c) any items to destinations that raise proliferation concerns when the exporter knows, or is informed by the Commerce Department, of such concerns. The initiative also calls for: (d) penalties on U.S. firms and individuals that promote the spread of chemical weapons and missile technology; (e) control lists of (i) dual-use equipment and technologies related to chemical and biological weapons and missiles, and (ii) countries to which exports of such items should be controlled; and (f) multilateral adoption of the initiative's measures.

Entry - Document or set of documents required to be filed with U.S. Customs to secure the release of imported merchandise. The entry is the appropriate Customs document accompanying required supporting documentation. The final disposition of the imported cargo will determine the type of entry to be filed.

Est. - Estimated.

ETA - Estimated time of arrival.

ETD - Estimated time of departure.

Ethnocentrism - Belief that the way things are done in a particular person’s culture is automatically the correct way for everyone. Anyone who deviates is wrong.

ETS - Estimated time of sailing.

ETC - See Export trading company.

EU - European Union.

EURO - European Currency Unit, previously called ECU.

Eurodollars - U.S. dollars placed on deposit in banks outside the United States ; usually refers to deposits in Europe .

European Commission - One of the five major institutions of the European Community, the Commission is responsible for ensuring the implementation of the Treaty of Rome and Community rules and obligations; submission of proposals to the Council of Ministers; execution of the Council's decisions; reconciliation of disagreements among Council members; administration of EC policies, such as the Common Agricultural Policy and coal and steel policies; taking necessary legal action against firms or member governments; and representing the Community in trade negotiations with non-member countries.

European Community (EC) - One of the three pillars of the European Union (EU) created under the Maastricht Treaty (1992), the customs union of countries in Europe, organizing freedom of movement for goods, services, capital and people.

Ex - From. When used in terms of sale such as “ex works” it signifies that the price quoted applies only at the point of origin (at the seller’s factory). 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 factory - Non-standard term, a variation of the preferred formulation: EXW Incoterms 1990.

Exchange permit - Permit sometimes required by the importer’s government to enable the import firm to convert its own country’s currency into foreign currency with which to pay a seller in another country.

Exchange rate - Price of one currency in terms of another, that is, the number of units of one currency that may be exchanged for one unit of another currency.

Eximbank - Export-Import Bank of the United States . http://www.exim.gov/

Export - To send or transport goods out of a country for sale in another country. In international sales, the exporter is usually the seller or the seller’s agent. Compare Import.

Export Administration Regulations - Export Administration Regulations provide specific instructions on the use and types of licenses required and the types of commodities and technical data under control. These regulations are found in Title 15, Code of Federal Regulations, Parts 730 through 774.

Export broker - Individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transactions.

Export commission house - Organization which, for a commission, acts as a purchasing agent for a foreign buyer.

Export Control Classification Number (ECCN) - All commodities, technologies and software have an export control classification number (formerly: Export Control Commodity Number) within the Commerce Control List (CCL); 15 CFR Part 774, Supplement 1.

Export credit insurance - Exporter’s insurance provided either by a private supplier or government agency against non-payment by importer and certain other risks depending on the type of policy.

Export declaration - See Shipper’s Export Declaration.

Export Declaration - Required by the U.S. Department of Commerce to control exports and to act as a source document for export statistics. It includes complete particulars on the shipment. Common abbreviation is Ex Dec.

Export-Import Bank of the United States - Eximbank was chartered in 1934 as an independent agency to finance the export of U.S. goods and services. Eximbank offers four major export finance support programs: loans, guarantees, working capital guarantees, and insurance. Eximbank undertakes some of the risk associated with financing the production and sale of American-made goods; provides financing to overseas customers for American goods when lenders are not prepared to finance the transactions; and enhances a U.S. exporter's ability to match foreign government subsidies by helping lenders meet lower rates, or by giving financing incentives directly to foreign buyers. Eximbank's information hotline number is 1-800-424-5201. See Commercial Risk Political Risk Private Export Funding Corporation.

Export license -Required document issued by the U.S. Government authorizing the export of specific commodities. This license is for a specific transaction or time period in which the export is to take place.

Export management company - Private firm that serves as the export department for several producers of goods or services, either by taking title or by soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission.

Export Merchant  - Company that buys products directly from manufacturers, then packages and marks the merchandise for resale under its own name.

Export trading company - A firm similar or identical to an export management company.

EXW - Ex Works.

Ex factory - Non-standard trade term, a variation of the preferred formation: EXW Incoterms 1990.

E&OE (Errors and Omissions Excepted) - When appended to a signature on a shipping document, indicates a disclaimer of responsibility for spelling, typographical, or clerical errors.

Ex Works - Incoterm for when the seller is only required to make the goods available at seller’s premises, which commonly is at his factory or warehouse; everything else is for buyer.

F&D - Freight and demurrage.

FAS - Free alongside ship.

Factor - Agent appointed to sell goods on commission, also known as a commission merchant.

Factoring - Factoring is the discounting of a foreign account receivable that does not involve a draft. The exporter transfers title to its foreign accounts receivable to a factoring house for cash at a discount from the face value. Factoring is often done without recourse to the exporter. Export factoring allows an exporter to ship on "open account," by which goods are shipped without guarantee of payment (that is, a letter of credit). The factor assumes financial ability of the customer to pay and handles collections on the receivables. See: Factoring House.

FAK - Freight of all kinds.

Fair Market Value - Reference against which U.S. purchase prices of imported merchandise are compared during an antidumping investigation. Generally expressed as the weighted average of the exporter's domestic market price, or prices of exports to third countries during the period of investigation. In some cases fair value is the constructed value. Constructed value is used if there are no or virtually no home market or third country sales or if the number of such sales made at prices below the cost of production is so great that remaining sales above the cost of production provide an inadequate basis for comparison.

FB - Freight bill.

FCA - Free carrier.

FCIA - Foreign Credit Insurance Association.

FCL - Full container load.

Federal Register - Government publication that prints rules/regulations of federal agencies on a daily basis; rules and regulations must be published to become legal in most cases.

Feeder Service - See Connecting Carrier.

FEU (Forty Foot Equivalent Unit) - 40' container equals 2 TEUS.

FF (Freight Forwarder) - Federally licensed company that handles documentation details for shipper of export cargo.

Flat Car - Platform rail car on which trailers, containers, etc. are loaded.

FI - Free in. A term of sale indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods from the vessel.

FIO  - Free In and Out.

Floating policy - See Open insurance policy.

FMC (Federal Maritime Commission) - U.S. Government Agency responsible for overseeing regulatory aspects of all maritime activities.

FO - Free out. A term of sale 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 term of sale indicating that the quoted price covers all expenses up to and including delivery of goods upon a vessel provided by or for the buyer.

Fob airport - No longer a valid Incoterm, see FCA, Inctoterms 1990.

f.o.c. - Free of charge.

f.o.d. - Free of damage.

FOR - Free on rail. No longer a valid Incoterm. Suitable term from Incoterms 1990 is FCA.

Force majeure - 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 Corrupt Practices Act - FCPA prohibits U.S. individuals, companies and direct foreign subsidiaries of U.S. companies from offering, promising, or paying anything of value to any foreign government official in order to obtain or retain business.

Foreign exchange - Currency or credit instruments of a foreign country. Also, transactions involving purchase or sale of currencies.

Foreign freight forwarder - 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; (5) payment of the ocean freight charges on shipments.

Foreign sales agent - Individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.

Foreign Trade Agreement - Agreement between countries to reduce and eventually eliminate tariff and non-tariff barriers between them.

Foreign trade zone (FTZ) -   U.S. form of free trade zones. These zones are restricted-access sites in or near ports of entry, that operate under public utility principles to create and maintain employment by encouraging operations in the U.S. which might otherwise have been carried on abroad. Goods brought into a zone for a bona fide Customs reason are exempt from state and local ad valorem tax. The zones are licensed by the Commerce Department's Foreign-Trade Zones Board and operate under the supervision of the Customs Service. Quota restrictions do not normally apply to foreign goods stored in zones, but the Board can limit or deny zone use in specific cases on public interest grounds. Domestic goods moved into a zone for export may be considered exported upon entering the zone for purposes of excise tax rebates and drawback. A foreign trade "subzone" is a non-contiguous zone site located at a manufacturing plant.

Forfaiting - Form of supplier credit in which an exporter surrenders possession of export receivables, which are usually guaranteed by a bank in the importer's country, by selling them at a discount to a "forfaiter" in exchange for cash. These instruments may also carry the guarantee of the foreign government. In a typical forfaiting transaction, an exporter approaches a forfaiter before completing a transaction's structure. Once the forfaiter commits to the deal and sets the discount rate, the exporter can incorporate the discount into the selling price. Forfaiters usually work with bills of exchange or promissory notes, which are unconditional and easily transferable debt instruments that can be sold on the secondary market. Three primary differences between export factoring and forfaiting are:- Factors usually want access to a large percentage of an exporter's business, while most forfaiters will work on a one-shot basis; -Forfaiters generally work with medium and long-term receivables (180 days to seven years), while factors work with short-term receivables (up to 180 days). Payment terms usually reflect the type of product involved: forfaiters usually work with capital goods, commodities, and large projects; factors work mostly with consumer goods. - Most factors do not have strong capabilities in developing regions of the world where legal and financial frameworks are inadequate and credit information is not readily available through affiliate factors. However, since forfaiters usually require a bank guarantee, most are willing to work with receivables from these countries.

FOT - Free on truck. No longer a valid Incoterm. The suitable term from Incoterms 1990 is FCA.

Forward rate - Price of a foreign currency which is bought or sold for delivery and payment at a fixed future time, usually 30, 60, or 90 days.

Foul bill of lading - Receipt for goods issued by a carrier with an indication that goods were damaged or missing when received. Compare Clean bill of lading.

FPA (Free of Particular Average) - Title of a clause used in marine insurance, indicating that partial loss or damage to a foreign shipment is not covered. (Note: Loss resulting from certain conditions, such as the sinking or burning of the ship, may be specifically exempted from the effect of the clause. Compare W.P.A.

Franchising - System based on the licensing of the right to duplicate a successful business format or industrial process.

Franco (French; European shipping) - Non-standard term meaning “free delivered”: shipper pays all charges to a particular point.

Free in and out (F.I.O) - Transport or freight term which indicates that loading/discharging costs are not included in the freight; in the charter party contract, this means that loading/discharging are not the shipowner’s responsibility – the charterer is responsible for loading/discharging.

Free Alongside Ship - FAS (named port of export); Under Incoterm FAS, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The costs of unloading and wharfage, loading, unloading, ocean transportation, and insurance are left to the buyer.

Free Carrier - FCA (named place); Under Incoterm FCA, the seller is responsible to make the goods available to the buyer at a named place within the seller’s country. Once delivery by the seller to the named place has been completed, the buyer bears all further obligations, risks, and costs in taking the goods to whatever final destination of the buyer’s choosing. FCA is applied to all modes of transport.

Free In - Pricing term indicating that the charterer of a vessel is responsible for the cost of loading goods onto the vessel.

Free In and Out - Pricing term indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods from the vessel.

Free On Board - FOB (named port); Under Incoterm FOB the seller bears obligations, risk and cost to deliver the goods to a named port of export in the seller’s country. Once the goods have “crossed the ship’s rail” aboard a vessel arranged for by the buyer, all further obligations, risk and cost are for the account of the buyer. FOB is applicable only to ocean or inland waterway modes of transport.

Free Out - Pricing term indicating that the quoted prices include the cost of unloading the goods from the vessel.

Free port - Area into which merchandise may legally be moved without payment of duties.

Free Time - Storage time allowed at carriers' facility without penalties being assessed.

Free Trade Agreement (FTA) - Arrangement which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders. An FTA does not (as opposed to a common market) address labor mobility across borders, common currencies or uniform standards or other common policies such as taxes. Member countries of a free trade area apply their individual tariff rates to countries outside the free trade area.

Free Trade Area - A free trade area is a cooperative arrangement among two or more nations, pursuant to the General Agreement on Tariffs and Trade, whereby trade barriers are removed among the members. The arrangement generally includes a customs union with a common external tariff, although there are exceptions in which members maintain individually separate tariff schedules for external countries.

Free-trade zone - Area 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 reexported 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. (These are called foreign trade zones in the United States ).

Freight all kinds (FAK) - Freight rate applicable to all types of goods.

Freight Brokerage - Commission paid to a licensed Freight Forwarder or Custom House Broker by the steamship line concerning export transactions. Commission is paid either as a percentage or the freight charges or as a lump sum amount per container, depending on the carrier and/or trade lane.

Freight forwarder - Independent business that handles export shipments for compensation. (A freight forwarder is among the best sources of information and assistance on U.S. export regulations and documentation, shipping methods, freight costs, and foreign import regulations.)

Freight Release (Freight Bill Receipt) - Evidence that the freight charges for the cargo have been paid. If in writing, it may be presented at the pier to obtain release of the cargo. (Normally, once the freight is paid, releases are usually arranged without additional documentation).

F&D - Freight and demurrage.

Fuel surcharge (FSC) - Additional charge in a carrier’s tariffs when the price of fuel increases.

Gateway - Principal airport, domestic or international, with many flights, offering maximum service and connections. Sometimes used to refer to a truck or trail border crossing to Canada or Mexico .

GATT - General Agreement on Tariffs and Trade now called the World Trade Organization (WTO). A multilateral treaty intended to help reduce trade barriers between signatory countries and to promote trade through tariff concessions. http://www.wto.org

General Average (GA) - Coverage for loss resulting from voluntary sacrifice, e.g., jettison, or the act of expending cargo to prevent loss of vessel, crew, passengers, or total cargo. The value of such a loss is averaged among all interested parties.

General Export License -Any of various export licenses covering export commodities for which Validated Export Licenses are not requires. No formal application or written authorization is need to ship exports under a General Export License.

GO (General Order) - Cargo seized by customs due to failure on part of consignee to make customs entry within allotted free time.

GRI - General Rate Increase.

Generalized System of Preferences - GSP is a framework under which developed countries give preferential tariff treatment to manufactured goods imported from certain developing countries. GSP is one element of a coordinated effort by the industrial trading nations to bring developing countries more fully into the international trading system. The U.S. GSP scheme is a system of nonreciprocal tariff preferences for the benefit of these countries. The U.S. conducts annual GSP reviews to consider petitions requesting modification of product coverage and/or country eligibility. United States GSP law requires that a beneficiary country's laws and practices relating to market access, intellectual property rights protection, investment, export practices, and workers rights be considered in all GSP decisions.

Gross weight  - Full weight of a shipment, including goods and packaging. Compare Tare weight.

Heavy Lift - Single commodities too heavy to be lifted by the ship's regular equipment.

H/H - House to House (same as CY/CY).

H/P - House to Pier (same as CY/CFS).

HH/Goods - Household goods.

HM - Hazardous Materials.

Hague Rules - International Convention for the Unification of Certain Rules relating to Bills of Lading – Brussels Convention of 1924- A set of rules for international transport contained in an international treaty first published in 1924 and subsequently implemented by the greater part of the world trading nations.

Hague- Visby Rules - Set of rules amending the Hague Rules, published in 1968, which have not received as much universal an implementation as their predecessors.

Hard currency - the currency of a nation which may be exchanged for that of another nation without restriction. Sometimes referred to as convertible currency. Hard currency countries typically have sizeable exchange reserves and surpluses in their balance of payments.

Harmonized System - Schedule of tariff nomenclature arranged in 6 digit codes allowing all participating countries to classify traded goods on a common basis. Beyond the 6 digit level, countries are free to introduce national distinctions for tariff or statistical purposes. This system will replace the Tariff Schedule of the United States (TSUS). The Harmonized System was implemented by the United States and other major GATT countries after Jan, 1. 1988. Additional countries are expected to be implementing the system subsequent to that date.

House air way bill (house AWB, HAWB) - Transport document issued by an air freight consolidator. May be acceptable transport documents under documentary credits, provided precise conditions of forwarder liability are followed, or if the credit expressly authorizes the document.

House bill of lading (house B/L) - Bill of lading issued by a freight forwarder. Often covers a consignment of parcels from various shippers that has been grouped or consolidated by the forwarder.

House to house - Terms generally refers to a container yard to container yard (CY/CY) shipment (in which case, it may be used merely to quote the rental rate for the container itself), but is also used in some cases, synonymously with “door to door” a term which more generally refers to overall transport services from seller’s premises to buyer’s premises.

HTS - See HTSUSA.

HTSUSA - Harmonized Tariff Schedule of the U.S. Annotated. The U.S. application of the Harmonized System for the classification of imported merchandise. The U.S. adheres to the international classification system to the six digit level and then adds four addition digits for rate of duty assignment and statistical purposes.

IA (Independent Action) - Carrier can take an independent action within a conference resulting in a unique rate for that carrier, ability to file a rate independently of other carrier's action.

ICTF - Immediate Container Transfer Facility.

IFM - Inward Foreign Manifest.

IATA - International Air Transport Association.

IBCC - International Bureau of Chambers of Commerce.

IBCC-Net - International data bank for the posting of commercial offers, including the purchase and sale of consumer goods and commodities; operates through networks of chambers of commerce.

ICC - International Chamber of Commerce.

ICC Arbitration - Loose term to refer either to ICC Rules for Conciliation and Arbitration or the process of submitting an arbitral complaint to the ICC Court of International Arbitration.

ICPO - Irrevocable Corporate Purchase Order.

Immediate Delivery Entry - See Customs Entries.

Immediate Transportation Entry (IT) - See Customs Entries.

Import - To bring foreign goods into a country. In international sales, the importer is usually the buyer or an intermediary who accepts and transmits goods to the buyer. Compare Export.

Import Letter of Credit - Used to finance importation of goods.

Importer - U.S. CBP defines "importer" as a person primarily liable for the payment of duties on the merchandise, or an authorized agent acting on the importer's behalf. The importer may be: (a) a consignee, (b) the importer of record, or (c) the actual owner of the merchandise if the actual owner has filed with Customs a declaration acknowledging ownership along with a superseding bond. See 19 CFR 141.20.

Importer of Record - See Importer.

Import license - Document required and issued by some national governments authorizing the importation of goods into their individual countries.

Import Quota - Means of restricting imports by the issuance of licenses to importers, assigning each a quota, after determination of the total amount of any commodity which is to be imported during a period. Import licenses may also specify the country from which the importer must purchase the goods.

In Bond - Procedure under which goods are transported or warehoused under customs supervision until they are either formally entered into the customs territory of the United States and applicable duties are paid, or until they are exported from the United States.

Incoterms - International Commercial Terms define the obligations, risks and costs of buyer and seller for the delivery of goods subject to their contract.  Incoterms are issued by the International Chamber of Commerce.

Incoterms 1990 - Set of 13 internationally standard trade terms (also known as delivery terms). Incoterms 1990 allows the parties to designate a point at which the costs and risks of transport are precisely divided between the seller and the buyer. Incoterms also allocate responsibility for customs clearance/duties between parties.

Inherent Vice - Insurance term referring to any defect or other characteristics of a product which could result in damage to the product without external cause. Insurance policies may specifically exclude losses caused by inherent vice.

Inland B/L - See B/L.

Inland clearance depot (inland dry port) - Combination transport terminal and customs clearance centre.

Injury - In U.S. law, a finding by the International Trade Commission that imports are causing, or are likely to cause, harm to a U.S. industry. An injury determination is the basis for a Section 201 case. It is also a requirement in all antidumping and most countervailing duty cases, in conjunction with Commerce Department determinations on dumping and subsidization.

Inland bill of lading - Bill of lading used in transporting goods overland. Although a Through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipments. Compare Air waybill, Ocean bill of lading, and Through bill of lading. (Also see Pre-carriage and On-carriage).

Inspection Certificate - Some purchasers and countries may require a certificate of inspection attesting to the specifications of the goods shipped, usually performed by a third party. Inspection certificates are often obtained from independent testing organizations.

Institute clauses - Standard international transport insurance clauses, published by the Institute of London Underwriters . The Institute Cargo Clauses are three sets of clauses providing different levels of protection: The “A” Clauses correspond to the general notion which is referred to in the trade as “all risks” coverage; while clauses “B” and “C” indicate a lower level of coverage and a greater number of exclusions.

Instruments of International Traffic - Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are designated as "instruments of international traffic" (IIT) within the meaning of section 322(a0, Tariff Act of 1930, as amended. Upon Customs acceptance of a type 3 bond, covering these IIT types, such instruments may be released without entry or the payment of duty, subject to the provisions of 19 CFR 10.41a.

Insurance Certificate - Assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit.

Integrated Carrier - Carriers that have both air and ground fleets; or other combinations, such as sea, rail, and truck. Since they usually handle thousands of small parcels an hour, they are less expensive and offer more diverse services than regular carriers.

Intellectual Property Rights - Generic phrase encompassing intangible property rights, including, among others, patents, trade and service marks, copyrights, industrial designs, rights in semiconductor chip layout designs, and rights in trade secrets.

Interchange - Transfer of a container from one party to another.

Interchange Agreement - Contract between carrier and trucker that legally permits interchange of equipment.

Interline service - Routing from origin to destination involving more than one carrier.

Intermediate Consignee - Intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.

Intermodal - More than one mode of transportation is used, e.g. truck and steamship, in one shipment, and one bill of lading is issued for the entire shipment.

International Air Transport Association (IATA) - Established in 1945, is a trade association serving airlines, passengers, shippers, travel agents, and governments. The association promotes safety, standardization in forms (baggage checks, tickets, weigh bills), and aids in establishing international airfares. IATA headquarters are in Geneva , Switzerland .

International Atomic Energy Agency (IAEA) - Specialized agency of the UN, is the primary international organization that enforces a system of safeguards to ensure that non-nuclear weapons states do not divert shipments of sensitive nuclear-related equipment from peaceful applications to the production of nuclear weapons. Before a supplier state of nuclear materials or equipment may approve an export to a non-nuclear weapons NPT (Nuclear non-Proliferation Treaty) signatory state, it must receive assurances that the recipient will place the material under IAEA safeguards. Subsequent to shipment, the recipient state must allow IAEA officials to verify the legitimate end use of the exported materials or equipment. IAEA, established in July 1957, gives advice and technical assistance to developing countries on nuclear power development, nuclear safety, radioactive waste management, and related efforts. Safeguards are the technical means applied by the IAEA to verify that nuclear equipment or materials are used exclusively for peaceful purposes. IAEA headquarters are in Vienna , Austria .

International Chamber of Commerce (ICC) - World business organization headquartered in Paris .

International Civil Aviation Organization (ICAO) - United Nations specialized agency which promotes international cooperation in civil aviation. The ICAO Council adopts standards and recommended practices concerning air navigation, prevention of unlawful interference, and facilitation of border-crossing procedures for international civil aviation. Operating since 1947, ICAO includes almost all U.N. members. Headquarters are in Montreal , Canada .

International Emergency Economic Powers Act (IEEPA) - Enacted in 1977 to extend emergency powers previously granted to the President by the Trading with the Enemy Act of 1917 (which still authorized the President to exercise extraordinary powers when the United States is at war). IEEPA enables the President, after declaring that a national emergency exists because of a threat from a source outside the United States, to investigate, regulate, compel or prohibit virtually any economic transaction involving property in which a foreign country or national has an interest.

International freight forwarder - See Freight forwarder.

International Maritime Organization (IMO) - Established as a specialized agency of the United Nations in 1948. The IMO facilitates cooperation on technical matters affecting merchant shipping and traffic, including improved maritime safety and prevention of marine pollution. Headquarters are in London , England .

International Trade Commission - Independent U.S. Government agency concerned with imports, import duties, and the effect of imports on U.S. industry. The Commission has six commissioners who review and make recommendations concerning countervailing duty and antidumping petitions submitted by U.S. industries seeking relief from imports that benefit unfair trade practices. Known as the U.S. Tariff Commission before its mandate was broadened by the Trade Act of 1974.

International Traffic in Arms Regulations (ITAR) - Administered by the State Department to control the export of U.S. defense articles and services. The provisions implemented in the ITAR are governed by the Arms Export Control Act. Direct commercial sales of U.S.-origin defense products, components, technologies, and services are controlled under the ITAR by the State Department’s Directorate of Defense Trade Controls.

Intransit (IT) entry - Customs entry permitting goods to move between ports under bond.

Inv. - Invoice.

Immediate Transportation Entry (IT) - Type of customs entry declaring goods for transportation by a bonded carrier from a port of entry to a bonded warehouse at an inland port, or another customs port where entry will be filed.

IPI (Inland Point Intermodal) - Inland carriage by another mode of transportation after port discharge, cargo moving to/from an inland point.

Irrevocable - Most common designation of an instrument of credit in international trade. It carries an irrevocable obligation of the issuing bank to pay the beneficiary when drafts and documents are presented in accordance with the terms of the letter of credit. An irrevocable letter of credit, once issued, cannot be amended or canceled without the agreement of all named parties. As such, it must have a fixed expiration date.

Irrevocable Corporate Purchase Order - Offer to buy stated goods under specified terms and conditions.

Irrevocable letter of credit - Irrevocable letter of credit, once issued, cannot be amended or canceled without the agreement of all named parties. As such, it must have a fixed expiration date.

ISO 9000 - International production quality standards established by ISO (International Standards Organization).

Issuing Bank - Bank which opens, issues, a straight or a negotiable letter of credit. This bank assumes the obligation to pay the beneficiary or a correspondent bank if the documents presented are in accordance with the terms of the terms and conditions of the documentary credit instrument.

Japan External Trade Organization (JETRO) - Administers the export programs of the Japanese Government independently. MITI subsidizes about 60 percent of JETRO's total annual expenditures and, technically, has final decision-making authority over JETRO management and programs. Originally established to help Japanese firms export, JETRO also assists American companies seeking to export to Japan and promotes Japanese direct investment in the United States and U.S. direct investment in Japan .

JOC (Journal of Commerce) - Trade publication. Trade Transportation Journal.

Joint Venture - Business undertaking in which more than one firm share ownership and control of production and/or marketing.

Landbridge - Microbridge or a minibridge.

Laydays/laytime - Time allowed by the ship-owner to the charterer or shipper in which to load or discharge the cargo. May be expressed in days or hours, or tons per day. Set in running days (every calendar day), working days (excludes Sundays and holidays observed by the port), or weather working days (in addition, excludes days where operations are prevented by bad weather).

(L/C) - Letter of Credit.

LCL - Less than container load. Refers to shipments of goods which will have to be packed together with other consignments in order to fill up a container.

LCL/FCL - Way of quoting container freight rates in which the carrier agrees to pack the container at the outset (LCL), but the unpacking at destination must be carried our by the receiver or consignee.

LCL/LCL - Way of quoting container freight rates in which the carrier agrees to pack the container on departure as well as unpack the container at destination.

ldg. - Loading.

Legalization - Approval of export documents by a foreign consulate or other entity in the United States .

Letter of credit (L/C) - Financial document issued by a bank at the request of a buyer guaranteeing payment to the seller if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary.- A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults.- A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.

Letter of Credit Advice - Communication by the advising bank that a letter of credit has been issued. The primary responsibility of the advising bank is to take care in establishing the authenticity of the credit.

Letter of Credit-Revolving - Credit which includes a provision for reinstating its face value after being drawn under within a stated period of time. This kind of credit facilitates the financing of on going regular purchases.

Letter of Credit-Standby -Issued for the express purpose of effecting payment in the event of default. The issuing bank is prepared to pay but does not expect to as long as the underlying transaction is properly fulfilled.

Letter of Indemnity (LOI) - Document commonly used in international trade to allow a carrier to release goods to a receiver who is not yet in possession of the bill of lading.

Lex mercatoria - Internationally accepted general trade practices; the international, informal law of merchants.

Licensing - Business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment.

l.i.f.o. - In international trade: liner in free out, referring to a freight charge which includes the cost of loading in the port or departure but does not include unloading coasts in the port of destination. In accounting practice: last in first out.

Lighter - Open or covered vessel which transfers cargo between ship and shore, used mainly in harbors and inland waterways. Lighters are generally used for shorter hauls than barges.

Line Release - Part of Customs' Automated Commercial System, is designed for the release and tracking of shipments through the use of personal computers and bar code technology. To qualify for line release, a commodity must have a history of invoice accuracy, and be selected by local Customs districts on the basis of high volume. To release the merchandise, Customs reads the bar code into a personal computer, verifies that the bar code matches the invoice data, and enters the quantity. The cargo release is transmitted to the Automated Commercial System, which establishes an entry and the requirement for an entry summary, and provides the Automated Broker Interface system participants with release information.

Liner shipping -Services provided by a steamship company or shipping line, under which cargo vessels operate according to a fixed schedule and publicly advertised freight rates.

Liner terms - Freight rates which include loading/unloading charges according to the custom of the respective ports which varies widely. “Liner terms” therefore is not a standard designation. ICC currently working on establishing a standard liner term.

Lkg. & Bkg. - Leakage and breakage.

LOI - See Letter of indemnity.

LT - Long Ton (2,240 pounds).

LTL - Less than truck load.

M3 - Cubic meters.

M & R - Maintenance and Repair.

Main carriage - Freight movement and cost from the seller’s side to the buyer’s side. Usually considered to be the international portion of the transport movement.

Manifest - See Ship’s manifest.

Maquiladora - Also known as "in-bond" industry, this program allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico 's second largest source of foreign revenue (following oil exports). The maquiladora programs was established in 1965; in December 1989, the Mexican government liberalized the maquiladora program to make this a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment.

Marine Bill of Lading (also ocean bill of lading) - Classic document of the traditional export trade. Plays three potential roles: 1) as receipt for the cargo and evidence that the goods have been received in apparent good order, 2) evidence that the terms of the contract of carriage between the shipper and the ocean carrier, and 3) an instrument enabling transfer of control over delivery of the goods (negotiability) which allows the holder of the bill to trade the goods in transit by simple endorsement and physical transfer of the bill.

Marine (Cargo) Insurance - Insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. Three of the most common types of marine insurance coverage are "free of particular average" (f.p.a.), "with average" (w.a.), and "All Risks Coverage."

Marking (or marks) - Letters, numbers, and other symbols placed on cargo packages to facilitate identification.

Master document/form - Central document in export administrative systems under which all necessary information is entered into a single master document or computer file, which is then used to generate all shipping and export documents, also known as aligned export documentation systems.

Mate’s receipt - Documents issued by the carrier to the shipper, indicating receipt of the goods, but not loading on board.

Mercosur - Comprised of Argentina , Brazil , Paraguay , and Uruguay . Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay . Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. While in the Southern Cone, Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits.

Metric Ton (M/T) - 1,000 kilograms (2,204 pounds)

Microbridge - Rate from a city that is not a seaport to a foreign city, via another city that is a seaport, with the steamship line or NVOCC issuing a bill of lading from the original city and taking responsibility for the cargo all the way.

Military Critical Technologies List (MCTL) - Document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list.

Minibridge - Rate from a city that is a seaport to a foreign seaport, via another city that is a seaport, with the steamship line of NVOCC issuing a bill of lading from the origin city and taking responsibility for the cargo all the way.

Minimum B/L - Minimum amount one can charge per individual bill of lading.

Ministry of International Trade and Industry (MITI) - Occupies a central position in Japan 's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan 's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan .

Missile Technology Control Regime - Purpose of the MTCR is to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada , France , Germany , Japan , the U.K. , and the U.S. agreed to establish the MTCR. The regime expanded to include 23 countries, with the addition of Australia , Austria , Belgium , Denmark , Finland , Greece , Iceland , Ireland , Italy , Luxembourg , the Netherlands , New Zealand , Norway , Portugal , Spain , Sweden , and Switzerland . The MTCR does not have permanent organizations but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex.

MLB (Minilandbridge) - Cargo moving port to port via land or rail; port destination served overland by rail.

MO - Money order.

Most Favored Nation (MFN) - Commitment that a country will extend to another country the lowest tariff rates it applies to any other country. All contracting parties undertake to apply such treatment to one another under Article I of GATT. When a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement.

M/T - Metric Ton.

MTO - Multimodal transport operator.

Multi-Fiber Agreement - International umbrella compact, authorized by the General Agreement on Tariffs and Trade (GATT), that allows contracting parties to negotiate bilaterally quantitative restrictions on textile imports (which normally would be considered contrary to GATT provisions) to the extent the importing country considers them necessary to prevent market disruption. The Uruguay Round Agreement on Textiles and Clothing contains an agreed schedule for the gradual phase-out of quotas established pursuant to the MFA over a ten-year transition period, after which textile and clothing trade will be fully integrated into the GATT and subject to the same disciplines as other sectors.

Multilateral Agreement - International compact in which three or more parties participate.

Multimodal transport bill of lading - Bill of lading used for carriage whenever there are at least two different forms of transport, such as shipping by rail and by sea.

Multimodal transport operator (MTO) - Carrier who concludes multimodal transport contracts; i.e. contracts involving transport by more than one mode of carriage, and for which the MTO accepts liability as a carrier.

M/V - Motor vessel.

N/A - Not applicable.

NCND - Non-circumvention non-disclosure agreement. Often contains false reference to non-existent ICC standard rules.

NCV - No commercial value.

ne - Not exceeding.

Negotiable instrument - Written document that can be used to transfer the rights embodied in it by mere delivery ( in the case of instruments made out to bearer) or by endorsement and delivery ( in the case of instruments made out to order). Some instruments, such as the bill of exchange and the cheque, are negotiable unless their negotiability is explicitly excluded while the bill of lading is negotiable only if made negotiable by the shipper.

Negotiable B/L - Original Bill of Lading endorsed by shipper that is used for negotiating documents with bank.

Net Weight - Weight of the goods being shipped not counting packaging.  Compare gross and tare weights.

Neutral Body - Neutral party used to police the practices of members of the conference.

N/F - No funds.

Nomenclature of the Customs Cooperation Council - Customs tariff used by many countries worldwide, including most trading nations. Compare Standard Industrial Classification, Standard International Trade Classification.

Non-circumvention non-disclosure agreement (NCND) - Type of contract frequently requested by international broker or middlemen in order to prevent buyers form trying to go around the broker to deal directly with suppliers. Although many of these agreements are said to be “issued pursuant to ICC Rules – such ICC rules are nonexistent.

Non Conference Carrier - Independent ocean carrier who does not belong to any group or conference of ocean carriers and who establishes their own pricing and policies.

Non-Governmental Organization (NGO) - Generally applied to private sector nonprofit organizations that contribute to development in developing countries through such activities as development cooperation projects, financial aid, material aid, the dispatch of personnel, the acceptance of trainees, and development education. In this context, NGOs are accredited by the United Nations or its specialized agencies and can lobby and do business with them.

Non-negotiable - Document that cannot be used to claim title to the cargo. Most important: Air waybills are always non-negotiable.

Non Negotiable B/L - Copy of original Bill of Lading which cannot be negotiated with bank.

Non-Tariff Barriers - Measures other than tariffs imposed by governments which restrict imports with or without the intent to do so. Such barriers have become more prevalent since the end of World War II. Since that time, tariff rates have declined significantly while other forms of protection, such as licensing and quotas, have risen.

Non-Vessel-Operating Common Carrier (NVOCC) - Firm which consolidates and disperses international containers that originate at, or are bound for, inland ports. They carry the same obligations and liabilities as traditional steamship lines but do not, themselves, own or operate ships.

Nostro account - Bank account held in by a bank with its foreign correspondent bank, in the currency of that foreign country.

Notify Party - Name and address appear in a bill of lading, who is to be notified by the shipping company of the arrival of goods at the discharge port. There is normally a box on the bill of lading where the details of the notify party are inserted.

N/S/F - Not sufficient funds.

Nuclear Suppliers Group (NSG) - Organization of nuclear supplier nations, which coordinates exports of nuclear materials and equipment with the International Atomic Energy Agency (IAEA) inspectorate regime. The reason for creating the NSG was to allow member states some flexibility in controlling items to non-nuclear weapons states. The NSG's independence from the NPT enables NSG to enlist the cooperation of supplier states that are not signatories to the NPT and thus not involved in the nuclear export control activities of the Zangger Committee. It requires the imposition of safeguards on exports of nuclear technology in addition to nuclear materials and equipment. The NSG developed a multilateral list for national adoption of export controls on dual-use commodities with a nuclear application.

NVOCC - Non-vessel-operating common carrier.

OBL - Original Bill of Lading.

Ocean bill of lading (B/L) - Receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership which can be bought, sold, or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order" Bill-of-Lading.- A Clean Bill-of-Lading is issued when the shipment is received in good order. If damaged or a shortage is noted, a clean bill-of-lading will not be issued.- An On Board Bill-of-Lading certifies that the cargo has been placed aboard the named vessel and is signed by the master of the vessel or his representative. On letter of credit transactions, an On Board Bill-of-Lading is usually necessary for the shipper to obtain payment from the bank. When all Bills-of-Lading are processed a ship's manifest is prepared by the steamship line. This summarizes all cargo aboard the vessel by port of loading and discharge. - An Inland Bill-of-Lading (a waybill on rail or the "pro forma" bill-of-lading in trucking) is used to document the transportation of the goods between the port and the point of origin or destination. It should contain information such as marks, numbers, steamship line, and similar information to match with a dock receipt.

Offset - Type of countertrade transaction. In an offset contract, which may be required by importers’ governments as a condition for approval of major sales agreements, the exporter makes an additional agreement to buy goods and services from the importer’s country. In a “direct offset” transaction, an exporter may be required to establish manufacturing facilities in the importing company or to use a specific percentage of the components in the product sold from the importer’s country. In an indirect offset, an exporter may be obliged to buy goods or services from the importing country without any link to the product sold. See Countertrade.

O/N - Order notify.

O/o - Order of.

OP - Open policy.

On board bill of lading (B/L) - Ocean bill of lading in which a carrier certifies that goods have been placed on board a certain vessel.

On-carriage - Inland freight movement and cost on the buyer’s side.

Open account - Trade arrangement in which goods are shipped to a foreign buyer without promise of payment. The obvious risk this method poses to the supplier makes it essential that the buyer’s integrity and the buyer’s country’s stability be unquestionable.

Open account trading - Exporter allows buyer to pay a specified time after receiving the shipment.

Open insurance policy - Marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.

Opening bank - Bank that opens a letter of credit as the request of an importer.

Order bill of lading (B/L) - Bill of lading made out to the order of the shipper (also called a negotiable bill of lading).

Original Bill of Lading (B/L) - Bill of lading that bears the original signature of the master of a ship or his agent.

OR - Owner’s Risk.

ORB - Owner’s risk of breakage.

ORF - Owner’s risk of fire.

ORL - Owner’s risk of loss (or leakage).

Origin receiving charges - Loading charges at origin point. See TRC.

Overland Common Point (OCP) - Term stated on bill of lading offering lower shipping rates to importers east of the Rockies provided merchandise from the Far East comes in through the West Coast Ports.

Packing list - List showing the number and kinds of items being shipped, as well as other information needed for transportation purposes as well as types of packaging.

Pallet - Flat support of wood or steel on which goods can be stacked and which can be easily moved by forklift trucks.

Paramount clause - Clause in a bill of lading or charter party invoking coverage by the Hague Rules, Hague-Visby Rules, or by the particular enactment of these rules in the country with jurisdiction over the counteract.

P/A - Power of attorney.

PA - Particular average.

Parcel post receipt - Postal authorities’ signed acknowledgment of delivery to receiver of a shipment made by parcel post.

PD - Port dues.

PEFCO - Private Export Funding Corporation. A corporation that lends to foreign buyers to finance exports from the United States .

Performance bond (guarantee) - Bond or guarantee which had been issued as security for one party’s performance: if that party (the principal) fails to perform, the beneficiary under the bond/guarantee may obtain payment. A performance bond may be of either the demand or conditional variety, which means that the beneficiary may or may not be required to prove default by the principal in order to obtain payment.

Per Diem - Costs per day. Charge on containers held by customers for an extended time; charges levied upon a trucker due to late return of equipment.

Perils of the sea - Marine insurance term used to designate heavy weather, stranding, lightning, collision, and sea water damage.

Phytosanitary inspection certificate - Certificate, issued by the U.S. Department of Agriculture to satisfy import regulations for foreign countries, indicating that a U.S. shipment has been inspected and is free from harmful pests and plant diseases.

P&I Club - Protection and Indemnity Club, ship-owners’ insurance association.

Pick up and delivery (PU&D) - Freight quote includes service of picking cargo up at shipper’s premises and delivering it at consignee’s premises.

Pier-topier (quay to quay) - Freight quote which only covers from export pier to import pier(excludes handling charges to bring cargo to and from piers).

Pilferage - The act of stealing cargo.

P/N - Promissory note.

POD - Pay on delivery.

POD - Port of Discharge . Also an acronym for Proof of Delivery.

POR - Port of Origin .

POL - Port of Loading .

Political risk - In export financing, the risk of loss due to such causes as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, and war.

Port of Arrival - Location where imported merchandise is off-loaded from the importing aircraft or vessel.

Port of Departure - In export, the final ocean port of aircraft where the shipment in the vessel or aircraft departs from the United States .

Port of Discharge - Port where goods are unloaded from vessel.

Prepaid B/L - Freight paid prior to movement; money to be paid prior to issuance of bill of lading.

P/H - Pier to House (same as CFS/CY).

P/P - Pier to Pier (same as CFS/CFS).

Ppd. (or P.P.) - Prepaid.

Pre-carriage - Inland freight movement and cost on the seller’s side.

Pre-License Check - Conducted to determine that dual-use items on an export license application are destined for a legitimate end-use by a reliable end-user. Firms or individuals representing the licensee (the applicant), the consignee, the purchaser, the intermediate consignee, or the end user may be subject to inquiries pertaining to the pre-license check. As part of the process, BIS forwards a cable to the U.S. embassy or consulate in the respective geographical location to conduct an inspection or meet with company representatives to conduct inquiries on behalf of BIS.

Pre-shipment inspection (PSI) - Inspection of contract goods prior to shipment to ascertain their quality, quantity, or price.

Pro forma invoice - Quotation in invoice form provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, specifications, terms of sale and payment.

Promissory note - Unconditional written promise to pay a specified sum of money on demand or at a specified date to, or to the order of, a specified person, or to bearer. Promissory notes are negotiable instruments and perform more of less the same function as an accepted bill of exchange.

PSI - Pre-shipment inspection.

PSV - Post-shipment verification.

PU & D - Pick up and delivery.

Purchasing agent - Agent who purchases goods in his/her own country on behalf of foreign importers such as government agencies and large private concerns.

Quantitative Restrictions - Explicit limits, usually by volume, on the amount of a specified commodity that may be imported into a country, sometimes also indicating the amounts that may be imported from each supplying country. Compared to tariffs, the protection afforded by QR's tends to be more predictable, being less affected by changes in competitive factors.

Quay - Solid structure alongside a navigable waterway, used for loading and unloading of ships. Think pier or wharf.

Quota - Quantity of goods of a specific kind that a country permits to be imported without restriction or imposition of additional duties.

Quotation - Offer to sell goods at a stated price and under specified conditions (see Pro forma invoice).

r & c.c. - Insurance clause: riots and civil commotion; also s.r.c.c. – strikes, riots, and civil commotion.

Railway consignment note - Freight document indicating that goods have been received for shipment by rail. See Bill of lading.

R/T - Revenue Ton.

Rates - Ocean rates are classified in many ways, here is just a sampling:

• Class - Grouping of articles.
• Commodity - Specific articles.
• Arbitrary - Fixed rate according to port to port.
• Minimum - Lowest charge.
• Heavy Lift Charge - Extra Charge for cargo which needs extra or heavy equipment to load or unload, charge assessed for cargo over a certain length.
• Charter - Use of an entire vessel.
• Ad Valorem - Based on value of cargo.
• Refrigerated - Cargo which requires refrigeration equipment.
• Dangerous Cargo - Needs special handling or stowage.
• On Deck Cargo - Cargo which must be shipped on the deck of the vessel.

Refrigerated Container (Reefer) - Specialized type of container with built-in diesel power generator, engineered for the transportation of refrigerated and perishable commodities.

Revenue Ton - Tonnage used to calculate freight rates as in ocean cargo.

Reciprocity - Reduction of a country's import duties or other trade restraints in return for comparable trade concessions from another country. Reciprocity includes the lowering of customs duties on imports in return for tariff concessions from other countries; the negotiated reduction of a country's import duties or other trade restraints in return for similar concessions from another country.

Red Clause - Authorization in a commercial letter of credit authorizing the advising/negotiating bank to make a limited advance to the seller before the shipment to the buyer is made. Such advances can be made up to 100% of the shipment value. These advances enable the seller to procure supplies for manufacturing or shipment. Negotiations of Red Clause credits are restricted to the bank making the advances in order to assure that proceeds from the shipment are used to repay the advances.

Reefer box/container/ship - Refrigerated container or ship.

Reexport - For export control purposes: the shipment of U.S. origin products from one foreign destination to another. For statistical reporting purposes: exports of foreign-origin merchandise which have previously entered the United States for consumption or into Customs bonded warehouses for U.S. Foreign Trade Zones.

Remitting bank - Bank that sends a draft to an overseas bank for collection.

Representative - See Foreign sales agent.

Retention of title (reservation of title) clause (ROT) - Contract clause whereby a seller declares his intention to retain title or ownership over the contract goods until payment by the buyer is complete.

Revocable letter of credit - Letter of credit that can be canceled or altered by the applicant (buyer) or its bank after it has been issued. Compare irrevocable letter of credit.

Revolving Letter of Credit - Credit which can be drawn against repeatedly by the beneficiary; can take a variety of different forms, depending on whether the credit is limited in terms of time, number of possible drafts, maximum quantity per draft, or maximum total quantity.

Roll-on/roll-off (RoRo) - Combination of road and sea transport, where loaded road vehicles are driven on to a ferry or ship (roll-on/roll-off ship) and off at the port of destination.

ROT - Retention of title.

S.A. - Abbreviation after names of corporations in French and Spanish-speaking countries. Société Anonyme (Fr.); Sociedad Anonima (Sp.).

SAD - Single Administrative Document; European administrative document for intra-European trade.

S&C - Shipper’s load and count.

S&T - Shipper’s load and tally.

S.R. & C.C. - Strikes, Riot, and Civil Commotion. A type of coverage that may be added as an amendment to marine cargo insurance policies.

Schedule B - Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States . All commodities exported from the United States must be assigned a ten-digit Schedule B number. Note: the first 6 digits of the Schedule B number are harmonized.

SD - Short delivery.

Sea waybill - Transport document for maritime shipment, which serves as evidence of the contract of carriage and as a receipt for the goods, but is not a document of title.

Seals on Containers - Attached to locking device on container to prevent pilferage and to certify no tampering; made of steel by customs or carrier.

Service Contract - As provided in the Shipping Act of 1984, a contract between a shipper (or a shipper's association) and an ocean carrier (or conference) in which the shipper makes a commitment to provide a certain minimum quantity of cargo or freight revenue over a fixed time period, and the ocean common carrier or conference commits to a certain rate or rate schedule as well as a defined service level (such as assured space, transit time, port rotation, or similar service failures). The contract may also specify provisions in the event of nonperformance on the part of either party.

Shipper - Export trade: The party (as between exporter and importer) who enters into a contract of carriage for the international transport of goods. The party receiving the goods (the importer or buyer) may be called the receiver or the consignee. Depending on the Incoterm chosen, either the exporter or importer (or middleman) can be the shipper.

Shipper’s Export Declaration - Form required for most shipments. It is prepared by the shipper and indicates the value, weight, destination, and other basic information about an export shipment. Used by U.S. Customs as a statistical information gathering tool.

Shipper’s load and count (SL & C) - Carrier’s notation disclaiming responsibility for the quantity of the cargo’s contents; the quantity declared is thus purely the shipper’s statement. If there is a dispute because less than contract is delivered, the carrier whishes to be free from liability and the receiver will have to claim directly against the shipper or insurer.

Shipping Weight - Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

Ship’s manifest - Instrument in writing, signed by the captain of a ship, which lists the individual shipments constituting the ship’s cargo.

Short delivery (SD) - Non-delivery of cargo at the intended port. When reported, will result in ship’s agent sending a cargo tracer to see if the cargo has been misdelivered in another port (also short-landed cargo).

Short-form bill of lading (B/L) - Simplified B/L which contain s a reference to or an abbreviation of the carrier’s full B/L or carriage conditions.

Short Supply Controls - Commodities in short supply may be subject to export controls to protect the domestic economy from the excessive drain of scarce materials and to reduce the serious inflationary impact of satisfying foreign demand. Items that the U.S. controls for short supply purposes include petroleum and petroleum products, unprocessed western red cedar, and shipment of horses by sea. The controls are included in the Export Administration Regulations.

SIC - See Standard Industrial Classification.

Sight draft (S/D) - Draft that is payable upon presentation to the drawee. Also known as sight bill. Compare Date draft and Time draft.

Sight letter of credit - Beneficiary is entitled to present a sight draft or sight bill of exchange which is a call for immediate payment upon acceptance of shipping documents.

SITC -See Standard International Trade Classification.

SL&C (Shippers Load and Count) - Shipments loaded and sealed by shippers and not checked or verified by the carriers.

Special Customs Invoice - Official form usually required by U.S. Customs if the rate of duty is based upon the value and the value of the shipment exceeds $500. This document is usually prepared by the foreign exporter or his forwarder and is used by Customs in determining the value of the shipment. The exporter or his agent must attest to the authenticity of the data furnished.

S/N - Shipping note.

Society for Worldwide Interbank Financial Telecommunications (SWIFT) - Cooperative organized under Belgian law, with headquarters in La Hulpe, near Brussels . SWIFT provides communications services to the international banking industry, including payments and administrative messages and, more recently, securities settlements. Traffic in 1991 was about 362 million messages. SWIFT is owned by the member banks -- approximately 1,600 -- including the central banks of most countries. The U.S. Federal Reserve is not a member, but participates in certain types of payments. Securities brokers and dealers, clearing and depository institutions, exchanges for securities, and travelers’ checks issuers also participate in SWIFT. SWIFT was organized in 1973 and started operations in 1977.

Soft Currency - Currency of a nation in which exchange may be made only with difficulty. Soft currency countries typically have minimal exchange reserves and deficits in their balance of payments. See: Hard Currency.

Specially Designated Nationals (SDN) - Office of Foreign Assets Control (OFAC), Department of the Treasury, implements and enforces financial and trade sanctions. FAC has the authority to include within the definition of the sanctioned government those individuals and entities that FAC has determined are owned by, controlled by, or acting directly or indirectly on behalf of the target government. Parties so identified are known as Specially Designated Nationals or SDNs. In practice, an SDN is a target government body, representative, intermediary, or front (whether overt or covert) that usually is located in a third country and functions as an extension of the sanctioned government. An SDN may also be a third-party company that otherwise becomes owned or controlled by the target government or that operates on its behalf. No criminal linkage is necessary. Ownership by, control by, acting on behalf of, or profiting from trade with the target government or country would suffice to qualify a person for designation.

Specific duty - Duty based on some measure or quantity, such as weight, length, or number of units.

Spot exchange - Purchase or sale of foreign exchange for immediate delivery.

Spot rate - Rate of exchange quoted for purchases and sales of a foreign currency for immediate delivery and payment.

Standby Letter of Credit - Akin to a demand guarantee or bank guarantee, generally used to assure performance or payment by the counterparty.

Standard industrial classification (SIC) - Standard numerical code system used by the U.S. government to classify products and services.

Standard international trade classification (SITC) - Standard numerical code system developed by the United Nations to classify commodities used in international trade.

State Controlled Trading Company - ­In a country with a state trading monopoly, a trading entity empowered by the country’s government to conduct export business.

STC (said to contain) / STW (said to weigh) - Notations on transport documents by which carriers give notice that they do not wish to accept responsibility for the accuracy of a shipper’s declarations as to the content, weight, or quantity of a particular shipped. See Shipper’s load and count.

Steamer guarantee - See Letter of indemnity.

Steamship conference - Group of steamship operators that operate under mutually agreed-upon freight rates between countries but not in the U.S.

Straight bill of lading - Nonnegotiable bill of lading in which the goods are consigned directly to a named party.

Stevedore - Terminal operator who facilitates the operation of loading and discharging vessels and other terminal activities.

Stripping - Unloading goods from a container. See devanning, destuffing.

Stowage - Placing of cargo in a ship’s hold in such a fashion as to assure safe and stable transport.

Stuffing - Loading goods inside a container.

Subsidy - Two general types of subsidies: export and domestic. An export subsidy is a benefit conferred on a firm by the government that is contingent or exports. A domestic subsidy is a benefit not linked to exports, conferred by the government upon a specific industry or enterprise or group of industries or enterprises.

Substantial Transformation - Item is substantially transformed if it has a new name, use or character. Once an item has been substantially transformed, the country the item was transformed in becomes the new country of origin.

Surcharge - Charges added to ocean freight, variously, for bunker (fuel), currency fluctuation, congestion, port detention, or extra risk insurance.

Surety Bond - Contract between principal and responsible third party (surety) that makes surety momentarily responsible for principals fulfillment of obligation to obligee (party who is protected).

Swap - Trading of almost identical products (such as oil) from different location to save transportation coasts. See Countertrade.

SWIFT payment - International electronic funds transfer via the system known as SWIFT (Society for World-Wide Inter-bank Financial Telecommunications) offered by most major banks.

Table of Denial Orders - List of individuals and firms that have been disbarred from shipping or receiving U.S. goods or technology. Firms and individuals on the list may be disbarred with respect to either controlled commodities or general destination (across-the-board) exports. The list is published in the Export Administration Regulations.

Tare weight - weight of a container and packing materials without the weight of the goods it contains. Compare Gross weight.

Tariff  - Tax assessed by a government in accordance with its tariff schedule on goods as they enter (or leave) a country. May be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or some combination.

Tarriff barrier - Customs duties, which are one possible barrier to imports into a country by making them more expensive.

Tariff Quotas - Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate.

Tariff Schedule - Comprehensive list of the goods which a country may import and the import duties applicable to each product.

Tenor (of a draft) - Designation of a payment as being due at sight, a given number of days after sight, or a given number of days after date.

Temporary Import Under Bond (TIB) - Procedure in which goods are imported without payment of duty, by posting a bond to guarantee that they will be exported.

Tender bond/ guarantee - Guarantee provided by a company responding to an international invitation to submit bids or tenders (as for a large construction project); the tender bond is submitted along with the tender; the tender bond is required with the purpose of discouraging frivolous bids and ensuring that the winning bidder will actually sign and execute the contract.

Terminal handling charge (THC) - Handling charges assessed for services rendered within container terminals or with respect to containers which will be processed through terminals. When delivery or pickup of the goods is expected to be at a container terminal, traders are well-advised to stipulate precisely which party will pay for all or part of the terminal handling charges.

TEU - Twenty-foot equivalent units; a means of measuring the carrying capacity of container ships; e.g. a ship can be said to be capable of 3000 TEU’s, which is roughly equivalent to saying it could carry 3000 standard containers.

THC - Terminal handling charge.

Through bill of lading - Single bill of lading converting both the domestic and international carriage of a shipment. Compare Air waybill, Inland bill of lading, and Ocean bill of lading.

TIB - Temporary Import Under Bond.

Time draft - Draft that matures either a certain number of days after acceptance or a certain number of days after the date of the draft. Compare Date draft and Sight draft.

TIR (TIR Carnets; TIR Convention) - Transport documents used to cover international transport shipment on road vehicles such as trucks/lorries. TIR Carnets, issued pursuant to the 1949 TIR Convention, allow the truck or other vehicle to pass through all TIR-member countries without having to go through customs inspection until reaching the country of destination.

TIR (Trailer Interchange Receipt) - Interchange receipt between trucker and carrier; document showing condition of container/equipment at the time of interchange.

T/L - Total loss.

TL - Truckload.

Trade acceptance -Bill of exchange drawn by the seller/exporter on the purchaser/importer of goods sold, and accepted by such purchaser. See Bill of exchange.

Tramp vessel - “Freelance” seagoing cargo vessel, available on a contract basis to carry cargoes to any given port. To be distinguished from liner ships, operating according to advertised routes, schedules, and rates.

Tramp Steamer - Ship not operating on regular routes or schedules.

TOFC (Trailer on Flat Car) - Containers with chassis loaded onto rail cars.

Transmittal Letter - Contains a list of the particulars of the shipment, a record of the documents being transmitted, and instructions for disposition of these documents. Any special instructions are also included.

Transportation and Exportation Entry - See Customs Entries.

Transshipment  - Transfer of cargo from one carrier to another.

TRC (Terminal Receiving Charge) - Charge assessed by the terminal for cargo being delivered for export.

Transaction statement - Document that delineates the terms and conditions agreed upon between the importer and exporter.

Transaction Value  - Value of the imported merchandise as determined by U.S. Customs officers for statistical purposes as well as to determine the amount of import duty.  This is the purchase price subject to certain additions and subtractions.

Transferable Letter of Credit - Allows the beneficiary to make part of all of his credit payable to another supplier; used in middleman/brokerage contexts; distinguishable from back-to-back L/Cs because the transferable credit requires the knowledge and authorization of the importer (applicant/principal).

Transship - To change carriers in a foreign port en route to a third port. Also used to refer to a country of transshipment as “We are shipping from Canada to Mexico , transshipping across the United States .”

TRC - Terminal Receiving Charges. Loading charges at origin port of a steamship or NVOCC.

Trimming - Operation of shoveling and spreading, within the ship’s hold, dry bulk cargoes such as cement, ore or grains, so as to avoid weight imbalances which might hinder the ship’s handling or unloading.

Trust receipt - Release of merchandise by a bank to a buyer in which the bank retains title to the merchandise. The buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods (or the proceeds from their sale) distinct from the remainder of his or her assets and to hold them ready for repossession by the bank.

UCC - ( US ) Uniform Commercial Code, the codification of American commercial law, followed in more or less uniform fashion by the US states. Article 5 of the UCC deals with letters of credit.

UCP 500 - Uniform Customs and Practice for Documentary Credits, ICC Publication No. 500 the set of rules which govern international documentary credit practice. UCP 500 is generally considered contractually incorporated into the documentary credit transaction by virtue of a mention in the credit application form ; the UCP 500 may also have additional force as a trade custom, and in some countries UCP is even recognized as having legal effect generally. In other countries, the UCP 500 is complementary to national law and jurisprudence on documentary credits.

U.S. Munitions List - USML identifies those items or categories of items considered to be defense articles and defense services subject to export control.  The Dept. of State, with the concurrence of Defense, designates which articles will be controlled. http://www.pmdtc.org

Ultimate Consignee - Person located abroad who is the true party in interest, receiving the export for the designated end-use.

UNCITRAL - United Nations Commission on International Trade Law. UN Agency based in Vienna , specializing in the development of model legal instruments and conventions in the area of international trade law. Most notable success is perhaps the so-called 1980 Vienna Convention, the Convention on the International Sale of Goods (CISG). Also, UNCITRAL Rules for Arbitration, which provides a procedural framework for international commercial arbitration but which, unlike, the ICC Rules, do not provide direct administrative supervision of the arbitral process.

UNCTAD - United Nations Commission for Trade and Development UN Agency based in