Glossary

The online portal for reporting export and import data to the U.S. government.

A term from Latin which means “according to value.” Import duty that is calculated based on a percentage of the cargo’s dutiable value.

The system used by the U.S. government to collect data on exports.

Multiple shipments from different sellers consolidated into one.

A document controlling cargo routing for air transport.

Promotes trade harmonization among Latin American countries.

Refers to the side of a ship for cargo delivery (e.g., Free Alongside Ship).

Ensures goods reach the intended recipient.

Offsets the impact of goods sold below fair market value.

Freight seemingly free of damage upon initial assessment.

Resolving disputes outside the court system.

Notification of shipment arrival to consignee.

Behind a ship or across the ship’s width, respectively.

Examining a business’s compliance with regulations.

System for tracking business processes.

Promotes trade between the U.S. and Australia.

Satellite system for identifying and locating ships.

Cargo carried on a return journey.

Low-weight, high-volume cargo.

Financial instrument drawn on a bank.

Width of a ship.

Party receiving payment.

Agreement with mutual benefits for both parties.

Document acknowledging receipt of cargo for shipment.

Document confirming goods transfer for payment.

Party responsible for payment.

Enforces U.S. export regulations.

Minimizes cargo movement during transit.

Secures cargo during transit.

Secures container to chassis or railcar.

Initial port of entry for a vessel.

Reserving space with a carrier for cargo movement.

Front of a vessel.

Empty space in a container.

Unpackaged cargo (e.g., grain, coal).

Secures cargo within a container.

Transporting goods within a country by a foreign transporter.

Promotes trade between the U.S. and Central American countries.

Required for certain exports to Canada.

Goods being transported.

Information submitted to customs authorities.

Document detailing cargo on a ship.

Promotes economic integration among Caribbean countries.

 Allows temporary duty-free import of goods for display.

Party transporting goods and responsible for their safety.

Payment received before goods are shipped.

Payment made upon delivery.

Controls the flow of people and goods into and out of the U.S.

Indicates conformity to Chinese standards.

List of dual-use items with export restrictions.

Indicates conformity to European Union standards.

Verifies product meets quality standards.

Indicates product is marketable and eligible for export.

Verifies goods’ condition before shipment.

Certifies goods’ origin.

Compilation of U.S. federal regulations.

Incoterm where the seller covers costs and freight to the destination port.

Association of businesses offering advocacy and document certification.

Certification by a Chamber of Commerce on documents like COOs.

Legal notes within the Harmonized System (HS) nomenclature.

Base frame for securing a container.

Prevents cargo movement during transit. How do chocks work?

• Wedge Power
  Chocks are designed to be wedged tightly against a wheel or object, providing a strong and stable barrier against movement. The wedge shape allows them to distribute force effectively, preventing even heavy cargo from moving.

• Material Matters
  Chocks come in a variety of materials, each with its own strengths. Wood is a traditional choice, offering affordability and ease of use. Metal chocks, on the other hand, are sturdier and better suited for heavy loads or uneven surfaces. Depending on the application, rubber or composite materials might also be used for enhanced grip or protection.

• Securing Different Cargo
  Chocks are versatile tools that can be used to secure a wide range of cargo on various transportation platforms. They’re commonly seen on trucks, trailers, and even ships, where they prevent containers from rolling during movement. In construction, chocks might be used to stabilize machinery or lumber.

CIF stands for Cost, Insurance, and Freight. It’s an Incoterm, a standardized term developed by the International Chamber of Commerce (ICC) to bring clarity and consistency to international commercial transactions. Under CIF, the seller takes on a significant portion of the legwork, ensuring the goods reach the buyer’s designated port safely.

How Does CIF Work?

1. The seller covers the cost of transporting the goods from their origin to the buyer’s designated port. This includes arranging and paying for ocean freight, terminal handling charges, and any necessary export documentation.
2. The seller is also responsible for obtaining minimum insurance coverage for the goods during their journey. This minimum insurance typically covers loss or damage caused by maritime perils, such as fire, storms, or collisions.
3. The seller takes care of loading the goods onto the vessel at the origin port and ensures their proper unloading at the destination port (though the buyer might be responsible for any unloading costs).

It’s an Incoterm established by the International Chamber of Commerce (ICC) to provide a clear roadmap for international transactions, ensuring both seller and buyer understand their roles when delivering goods to any designated location.

Under CIP, the seller takes on a more comprehensive role than CIF. Here’s what CIP entails for the seller:

1. The seller is responsible for arranging and paying for the transportation of the goods to the named destination. This can encompass various modes of transport, including ocean freight, inland waterways, or even multimodal journeys involving a combination of methods.
2. Similar to CIF, the seller must obtain insurance coverage for the goods during their entire journey. This minimum insurance typically protects against loss or damage caused by unforeseen events like fire, theft, or adverse weather conditions.

Carload or container load.

• Carload (CL)
  When you see “CL” referring to a carload, it signifies the shipment fills an entire railroad car. This option is ideal for bulk goods that can efficiently utilize the significant space offered by a railcar.

• Containerload (CL)
  When “CL” refers to container load, it signifies the shipment fills a standardized intermodal shipping container. These ubiquitous metal boxes are a workhorse of global trade, offering flexibility and security for a wide range of goods.

It’s a documented record of the event, outlining the details of the loss or damage and serving as a springboard for resolving the issue.

1. Establishing the Facts
   A well-crafted claim meticulously lays out the specifics of the situation. It details the nature of the goods, their value, and the point at which the loss or damage occurred. This clear documentation becomes a vital reference point for both the claimant (the party seeking compensation) and the party responsible (often the carrier or seller).
2. Seeking Resolution
   The claim serves as a formal notification of the issue, prompting an investigation and a potential path toward resolution. It allows the responsible party to understand the nature of the claim and take appropriate action, which could involve offering compensation, replacement goods, or other forms of remedy.
3. Protecting Rights
   A documented claim establishes a record of the event and protects the claimant’s rights. If negotiations for compensation stall, the claim serves as a foundation for pursuing legal action if necessary.

CM/cm (capitalization doesn’t affect the unit) represents two different units commonly used for measurement, depending on the context:

• Centimeters (cm)
  This is the most frequent meaning of CM/cm. A centimeter is a metric unit of length equal to one-hundredth (1/100) of a meter. It’s a widely used unit for measuring everyday objects, distances, and dimensions. For instance, you might see furniture dimensions listed in centimeters (e.g., a shelf measuring 120 cm long).

• Cubic Meters (cm³ or m³)
  When the “CM” is meant to represent volume, it indicates cubic meters. A cubic meter is the volume of a cube measuring one meter on each side.

This massive, annually updated publication serves as the official codification of general and permanent regulations issued by the executive departments and agencies of the U.S. federal government. In simpler terms, it’s the rulebook that dictates how various federal laws are implemented and enforced.

The CFR is a publicly available document, accessible through various channels:

• Printed Volumes
  While less common in today’s digital age, the CFR is still available for purchase in hardcopy format from the Government Publishing Office (GPO).

• Electronic CFR (eCFR)
  The official online version of the CFR, is hosted by the National Archives’ Office of the Federal Register. The eCFR offers a user-friendly interface for searching, browsing, and downloading specific sections of the code. (https://bookstore.gpo.gov/catalog/code-federal-regulations-cfrs-print)

• Government Agency Websites
  Many federal agencies also maintain their own websites, often providing summaries or easy access to CFR sections relevant to their specific areas of responsibility.

Сrucial tool that helps businesses chart a clear course, published by the Bureau of Industry and Security (BIS) within the U.S. Department of Commerce. At its core, the Commerce Country Chart functions as a decision-making aid for businesses seeking to export specific items from the United States.

Document that plays a crucial role in the process of international trade. A well-drafted commercial invoice typically includes the following essential information:

1. Invoice Details
   A unique invoice number and date of issuance are crucial for identification and tracking purposes.
2. Seller (Exporter) Information
   The legal name and address of the company exporting the goods must be clearly stated. Contact details like phone number and email might also be included for easy communication.
3. Buyer (Consignee) Information
   Similar to the seller details, the legal name and address of the company receiving the goods are mandatory.
4. Product Descriptions
   A detailed breakdown of the goods being shipped is essential. This includes product names, quantities, unit prices, and total value. Harmonized System (HS) codes, which are internationally standardized product classification codes, might also be included to facilitate customs clearance.
5. Payment Terms
   Clearly outlining the agreed-upon payment terms, such as Incoterms (International Commercial Terms), helps avoid misunderstandings regarding payment methods, responsibilities, and risk transfer during the shipping process.
6. Currency
   The currency in which the transaction is denominated should be clearly stated to avoid confusion and facilitate currency conversion if necessary.
7. Country of Origin
   Identifying the country where the goods were manufactured is crucial for customs authorities and can impact import duties or regulations.
8. Additional Information
   Depending on the specific goods or trade agreement, additional details like weight, dimensions, insurance information, or special certifications might be required on the invoice.

It doesn’t refer to just any old product you might buy at a store. Instead, a commodity is a basic good, typically raw materials or agricultural products, that are:

• Fungible
  This means individual units of the commodity are essentially interchangeable. A bushel of wheat from one farm is generally considered the same as a bushel of wheat from another, as long as they meet the same quality standards.

• Traded on Public Exchanges
  Commodities are often bought and sold in bulk on specialized marketplaces, allowing for price fluctuations based on supply and demand.

• Standardized
  Many commodities adhere to specific quality grades or classifications, ensuring a level of consistency for buyers.

Commodities are typically raw materials or agricultural products that serve as building blocks for other goods. Examples include:

• Agricultural Products – wheat, corn, soybeans, cotton, coffee, cocoa, sugar
• Energy Products – crude oil, natural gas, gasoline
• Metals – gold, silver, copper, iron ore
• Industrial Materials – rubber, lumber, plastics

Provides transportation services to the public. Common carriers come in various forms, each suited to different types of transportation needs:

1. Shipping Companies
   These giants of the seas transport cargo containers across vast distances, connecting continents through international trade routes.
2. Airlines
   They specialize in air freight, offering fast and efficient transportation for time-sensitive or valuable goods.
3. Trucking Companies
   Trucks are a dominant force on land, transporting a wide range of goods over shorter or longer distances depending on the carrier’s network.
4. Railroads
   While less common in some regions, established railway systems offer a cost-effective and reliable option for bulk cargo transportation.

In the legal landscape, there exist two main families of legal systems: common law and civil law. Common law, also known as judge-made law, stands on a foundation of precedent and custom.

1. Common law systems rely heavily on past court decisions, also known as precedents. When a judge makes a ruling on a particular case, it sets a legal precedent that can be applied to similar cases in the future. This creates a body of law that evolves over time, adapting to new situations while maintaining consistency.
2. Common law also incorporates customs and traditions that have been established over time. These customs, if recognized by courts, can become part of the legal framework, shaping how legal issues are approached.

Compliance in maritime shipping refers to adhering to a complex web of international and national laws and regulations. These regulations govern various aspects, including:

• Safety
  This encompasses everything from vessel construction and maintenance standards to crew training and emergency preparedness procedures. International Maritime Organization (IMO) regulations like the Safety of Life at Sea (SOLAS) convention play a major role.

• Security
  Measures to prevent piracy, terrorism, and other threats to maritime security are outlined in international agreements like the International Ship and Port Facility Security (ISPS) Code.

• Environmental Protection
  Regulations aim to minimize pollution from ships, such as MARPOL (International Convention for the Prevention of Pollution from Ships), which restricts discharges and promotes cleaner operations.

• Labor Standards
  International Labour Organization (ILO) conventions ensure fair treatment and working conditions for seafarers.

It refers to situations where damage to your shipment, or even a portion of the shipment being missing, isn’t immediately apparent upon delivery.

1. Unlike obvious damage to boxes or leaking containers, concealed loss/damage is more insidious. It might involve:

• Internal Damage
  Products inside seemingly intact packaging could be broken, dented, or malfunctioning.
• Missing Items
  Discrepancies between the shipment manifest (packing list) and the actual contents can reveal missing items only discovered during unpacking.

2. Concealed loss/damage typically comes to light only after the delivery process is complete, during unpacking or inspection at the receiving location.
3. Several factors can contribute to concealed loss/damage:

• Rough Handling
  Improper handling during transport, such as dropping or crushing packages, can cause internal damage that might not be visible from the outside.
• Shifting Contents
  During transportation, items within boxes can shift and collide, leading to hidden breakage or malfunction.
• Pre-Existing Damage
  In rare cases, concealed damage could be present even before the shipment is picked up, due to faulty manufacturing or improper packaging at the origin.

4. A thorough inspection upon delivery and detailed documentation of any discrepancies is crucial. Keeping a record of the condition upon receipt strengthens your case if concealed loss/damage is discovered later.

Confirming House is a trusted intermediary between an exporter (seller) and an overseas buyer (importer). They act as the buyer’s agent, ensuring a smooth transaction for both parties.

1. The key advantage for exporters is the payment guarantee. Unlike traditional transactions where payment relies on the buyer’s creditworthiness, a Confirming House takes on the financial risk. They assure the exporter of receiving payment, regardless of any potential issues with the buyer.
2. Confirming Houses can simplify the export process by handling various tasks, such as:

• Credit Assessment
  They evaluate the overseas buyer’s creditworthiness, minimizing the risk of non-payment for the exporter.

• Documentation Management
  Confirming Houses ensure all necessary export documents are in order, avoiding delays at customs.

• Payment Collection
  They handle the collection of payment from the buyer and guarantee the exporter receives the agreed-upon amount.

3.Utilizing a Confirming House offers several advantages for exporters:

• Reduced Risk
  The guaranteed payment removes the financial risk associated with selling to unknown buyers in foreign markets.

• Improved Cash Flow
  Exporters receive payment promptly, even before the buyer settles their debt with the Confirming House.

• Focus on Core Business
  By outsourcing export complexities, exporters can focus on production, sales, and core business activities.

Unlike traditional carriers that handle the physical transportation of goods, connecting carriers don’t own trucks, ships, or airplanes. Instead, they act as intermediaries, connecting shippers with the most suitable carriers for each leg of a multi-modal journey.

Connecting carriers understand the strengths and limitations of different transportation modes (truck, rail, air, ocean). They leverage this knowledge to design efficient and cost-effective routes for your shipment, ensuring a seamless handover between carriers throughout the journey.

The consignee is the designated recipient of a shipment. They can be an individual, a company, or any entity expecting to receive the goods. Essentially, they’re the one waiting for that knock on the door or the arrival notice for their package.

The consignee’s complete and accurate information, including name and address, is vital for a successful delivery. This ensures the shipment arrives at the intended location without any confusion or delays.

Once the shipment arrives, the consignee typically signs a document acknowledging receipt. This serves as confirmation that the goods have been delivered and accepted. In some cases, the consignee might also be responsible for any import duties or taxes associated with the shipment.

Consignor

It’s important to distinguish the consignee from the consignor. The consignor is the party who initiates the shipment, the one sending the goods off on their journey. The consignee is on the receiving end, eagerly awaiting the package’s arrival.

A consignment differs from a typical sale in one key aspect: ownership. While the goods are shipped (consigned) to a recipient (consignee), the consignor (sender) often retains ownership until certain conditions are met.

In simple terms, a consignment is a loan of goods. The consignee receives and takes care of the goods, but they don’t necessarily own them outright. The ownership transfer usually happens when the consignee sells the goods or fulfills a specific agreement with the consignor.

Consignor, also commonly referred to as the shipper or exporter. Regardless of the term used – consignor, shipper, or exporter – they all represent the same party: the one sending the goods. They’re the driving force behind the shipment, responsible for preparing the goods for their journey.

The consignor/shipper/exporter has several tasks:

• Preparation
  This involves ensuring the goods are properly packaged, labeled, and documented to meet all regulations.

• Booking Transportation
  They arrange with a carrier (shipping company, airline, etc.) to transport the goods to the intended destination.

• Customs and Documentation
  For international shipments, the consignor/shipper/exporter handles export customs clearance, ensuring all necessary paperwork is in order.

Consolidation is essentially carpooling for cargo. Multiple smaller shipments from different companies are grouped together to fill a single container. This allows everyone to benefit from the efficiency and cost-effectiveness of containerized shipping.

By sharing the container cost among multiple shippers, consolidation brings down the individual shipping expense for everyone involved. It’s a win-win situation, especially for smaller businesses that wouldn’t be able to fill an entire container on their own.

A government official who resides in a foreign country and represents the interests of their native country.

Document required by some foreign countries, specifying exact information about consignor, consignee, value description, etc. for a shipment. The Consular Invoice is certified by the country’s consul to which the merchandise is being sent.

Type of entry, when goods are imported for use (commercial, business, or personal purposes) into the United States without any time or use restrictions. A Consumption Entry may be formal or informal depending on the circumstances.

Large metal box used for transporting goods.

Cargo that is large enough in volume or weight to fill a container.

A document indicating the contents of the container, its place of departure, and destination. By law, vessels may be required to submit a manifest for each transported container.

Prohibited cargo imported or exported from a country illegally, e.g. drugs or unauthorized weapons.

A document that legally binds an agreement between two or more people/organizations to carry out reciprocal obligations or value.

Protection given to the authors of literary, artistic, musical, and certain other intellectual works. It is a type of intellectual property that gives its creator the right to produce, distribute, copy, and display their work.

Anti-subsidy duties, imposed to offset export grants, bounties, or subsidies paid to foreign suppliers in certain countries by that country’s government to promote export. These duties are imposed under World Trade Organization (WTO) rules after an investigation finds out that a foreign country subsidizes its exports, injuring domestic producers in the importing country.

A country, where goods were made, mined, grown, manufactured, or significantly transformed.

International trade term for any mode of transport. When goods are bought or sold “carriage paid to” (CPT), this means that the seller delivers the goods to a destination agreed in advance between the seller and the buyer. The seller is responsible for arranging and paying for transport to the buyer’s appointed carrier. Once the cargo has arrived at the first carrier, the risk is transferred to the buyer.

An abbreviation for “Cubic.” A unit of volume measurement. E.g., standard 20-foot container has a volume of 1,170 cubic ft. or 33.1 cubic m.

A situation where a container or vessel has reached its volumetric capacity before reaching its maximum allowed weight.

A government office, especially at a port, where duties are paid and import and export paperwork are filed.

1. The authority that provides control over the transportation of goods across the state border and deals with taxes on these goods;
2. The place at an airport, port, or border where imported goods are examined to make sure they are legal and whether any tax should be paid on them;
3. Taxes that are imposed on goods that are brought into a country.

A building or other secured area where imported dutiable goods may be stored, repacked, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation.

Form of insurance that guarantees that the importer promises to pay necessary taxes and obey Customs regulations of importing goods.

An individual or organization contracted to make sure the customs declaration is correct, duties and taxes are provided accurately, and payment is received so that goods can transit across borders smoothly.

A process in which a customs authority evaluates a shipment imported into their country to ensure compliance with their country’s import regulations. A shipment approved by the customs authority and allowed to trade in their country is considered to have cleared customs.

A document that usually accompanies exported goods and contains information such as the nature of the goods, their value, the consignee, and the final destination.

A document that provides the U.S. Customs and Border Protection (CBP) with information about cargo imported into the United States, such as value, classification, and origin. CBP uses this form to calculate duties owed. An Entry Summary must be filed within 10 days of the cargo’s release from CBP custody and estimated duties deposited within 10 working days after entry of the merchandise.

A document that allows importers and exporters to send goods internationally. It is required by a country’s customs authority, and serves the same purpose as a standard commercial invoice but also contains additional information such as a certificate of origin: the description, quantity, selling price, freight, insurance packing costs, delivery services, and the port of destination for the goods.

Local rules and practices to which export and import will be subjected in customs.

Some shipments involve no actual monetary transaction between the exporter and the consignee, such as shipments for repair under warranty, or shipments of items used for display at trade shows. These shipments are still subject to duties and taxes, and exporters must list the items’ value on the customs invoice to enable the customs authority in the country of import to assess how much duty the importer must pay. The exporter should include a customs value-only statement on the invoice in these cases.

The deadline by which the cargo may be delivered to a terminal for loading.

A voluntary partnership to help ensure supply chain security established by U.S. Customs and Border Protection in November 2001. Meeting the C–TPAT standards allows cargo owners to process cargo more quickly through customs formalities and inspections.

Products may be considered dangerous if they are corrosive, flammable, poisonous, toxic, explosive, etc., and capable of posing an unreasonable risk to health, safety, and property when transported in commerce. Shipping hazardous goods may require special documentation or packaging to ensure safety.

A document required when shipping dangerous goods (hazardous materials). There are three types of declaration: the DG IATA form for air transport, the DG IMO form for inland and ocean transport, and the Lithium Battery Declaration required for shipments of lithium batteries.

International trade term for any mode of transport. It is used when the seller bears all risks and costs associated with delivering the goods to the named foreign destination not unloaded. The buyer is responsible for all costs and risks associated with unloading the goods and clearing customs to import the goods into the named country of destination.

A document used when the exporter extends credit to the buyer. It indicates a specific future date when the draft is payable.

A legal term for doing business under a certain registered name.

International trade term for any mode of transport. It is used when the seller bears all risks and costs associated with delivering cargo to the named place of destination ready for unloading and cleared for import.

The government agency within the U.S. Department of State tasked with enforcing the International Traffic in Arms Regulations (ITAR). It controls the export and temporary import of defense articles and defense services covered by the United States Munitions List (USML).

A cargo that is stowed in less than 40 cubic feet but weighs a long ton.

It measures a vessel’s total weight, including cargo, fuel, water, supplies, crew, and passengers. It is the difference between the number of tons of water a vessel displaces “light” and the number of tons it displaces when submerged to the “load line.”

Location where a large shipment is broken down into smaller units in preparation for delivery.

Sharing or release of controlled technology, source code, or information to a foreign person at home or abroad. Export regulations apply to deemed exports as well.

The weight by which a shipment is less than the minimum weight.

A document signed and dated by a buyer or their authorized agent confirming receipt of goods and stating their condition upon delivery.

A penalty charge to be paid by a shipper or consignee to the carrier for delaying cargo beyond the allowed time.

Also called “restricted party screening” or “trade party screening”. It is the process of checking whether potential business partners are on denied party lists. These are lists of individuals or organizations that a government has identified as parties that one can’t do business with and that one may be penalized for doing business with.

Also called an anti-diversion clause. It is a legal statement put on an export invoice that specifies that the cargo is to be transferred to the ultimate consignee and no one else. Diversion to other countries or parties without prior authorization is a violation of U.S. law.

A legal statement put on a shipping document. It specifies the goods are to be transferred to the ultimate consignee. Diversion to other countries or parties without prior authorization violates U.S. law.

A penalty charge to be paid by a shipper or consignee to the carrier for delaying the carrier’s equipment beyond the allowed time.

The unloading of cargo from a container.

The sale by an exporter directly to a customer located in a foreign country.

A situation when documents presented do not conform to the requirements of the letter of credit (L/C). Banks will not process L/C’s that have discrepancies. They will refer the situation back to the buyer and/or seller and await further instructions.

A facility created for storing, sorting, and circulating products into a specific market. It serves as a central hub in a supply chain network for inventory management and order fulfillment. This may or may not be a part of the same company that uses it to move its products to market.

Intermediary entity between the producer of a product and another entity in the distribution channel or supply chain. The distributor generally provides support and service for the product, relieving the exporter of these responsibilities.

1) a change made in the route of cargo transportation or the route of the entire vessel;
2) the transfer of goods from the intended end-user to some other party.

1․ For ships: a cargo handling area parallel to the shoreline where a vessel usually

ties up;

2․ For land transportation: a loading or unloading platform at an industrial location

or carrier terminal.

A form used to acknowledge receipt of cargo. Provides the framework for the preparation of an ocean bill of lading.

A financial instrument used in international trade transactions to protect the interests of both buyer and seller. It requires that payment be made on the presentation of specified documents to a lender conveying the title and indicating the specific steps that have been taken.

Instructions given by a seller/exporter to a bank indicating that documents transferring title to goods should be delivered to the buyer/importer only after the buyer accepts the attached draft.

Instructions given by a seller/exporter to a bank indicating that the attached documents are to be released to the buyer/importer only upon payment.

The executive branch department that coordinates and oversees transportation in the United States.

International trade term for any mode of transport. It is used in the situation when the seller assumes all costs and risks until the goods are unloaded at the agreed and named place of destination. In this case, the buyer is responsible for import customs formalities.

1. The number of feet that the ship’s hull is beneath the water’s surface.
2. Commonly known as a bill of exchange. It is an unconditional order in writing, signed by a drawer (a buyer) and addressed to a drawee (a bank). It requires the drawee to pay a specified sum in lawful currency to the order of a specified person (a seller) at a fixed or determinable date.

A partial refund of an import fee. It is usually given if goods are re-exported from the country that collected the fee.

Transportation of goods over a short distance. Some definitions specify that drayage is the transport of goods in which both the trip origin and destination are within the same urban area. Same as cartage

An e-commerce business model in which the vendors take orders from customers, but does not store goods in stock. Instead, they pass the order to a manufacturer, another retailer, a wholesaler, or a fulfillment house that transports the order directly to the buyer.

A company that makes a good effort to comply with all relevant rules and regulations that apply to them. They need to know exactly what product is being sold/shipped, its condition, as well as the associated commercial, technical, and environmental risks. This is an integral part of establishing a formal Export Compliance Program (ECP).

Importing merchandise into a country at a price less than the fair market value, usually through subsidy by the exporting country.

The amount on which an Ad Valorem or customs duty is calculated.

Also called tariffs. These are taxes collected on importing and exporting merchandise.

Regulate export and re-export of items and technologies for foreign policy and national security purposes. The EAR is administered by the BIS.

Five-character alphanumeric code used to identify items for export control purposes. Knowing the right ECCN for your product plays a role in determining if you need an export license.

It is an association of mainly U.S. engineering, procurement, and construction companies and their freight forwarders. It was created jointly by the Maritime Administration in 1997 to find solutions to transportation problems and expand the export of U.S. project cargoes.

Digital document issued by the registered chamber of commerce to the exporter. It helps document transfer and control between customs be done online. Certificates of origin are a common customs document required by many countries and as part of various free trade agreements.

Electronically automated exchange of business documents such as invoices, purchase orders, and bills of lading.

Data that must be filed in the Automated Export System (AES) via the Automated Commercial Environment (ACE) online web portal for goods transported from the U.S. to a foreign country.

Official prohibition designed to protect economic or national security. This is a ban on trade or other commercial activity with a particular country.

The power of a sovereign government or its agent to take property for necessary public use, with payment of compensation.

Stands for empty repositioning. It means the movement of empty containers.

Synonym for ‘ultimate consignee’. A shipment’s ultimate recipient. This may be different from the party being billed.

A legal signature that signals the transfer of rights from a holder to another party. It is usually placed on the reverse of a draft.

An official statement made to Customs regarding details of cargo entering the country.

A document used when transferring a container from one carrier to another, or from one terminal to another.

Software that helps companies improve the shipping process by integrating order processing, tracking, accounting, etc. Some ERP systems include international shipping or trade compliance modules.

Notations made when goods are received at the carrier’s terminal or loaded aboard a vessel. They are usually related to a shortage or damage of goods and are noted on the bill of lading.

A situation when the container or trailer is only filled with the shipper’s goods and not those of any other party, even if there is additional space. A shipper may pay a premium rate to obtain exclusive use.

Issued with documents such as letters of credit, tariffs, etc. to advise that stated provisions will expire at a set time.

The official interpretation of the Harmonized System (HS) at the international level published by the World Customs Organization. They provide a commentary on the scope of each heading, giving a list of products included or excluded, with technical descriptions of the items and guidance for their identification.

Transportation of goods to a foreign country. The opposite of import.

A company’s written set of procedures for ensuring operating export activities following the Export Administration Regulations (EAR).

Laws and regulations applied by a government to manage an export or import of certain items, e.g. technology, military goods, or chemicals.

A type of form submitted at the port by an exporter, declaring details about the goods being shipped out of the country. Customs use this information to control exports and compile statistical information about a country’s foreign trade.

A government-issued document that indicates approval to export a certain good to a certain country.

An outsourcing company that manages export operations of manufacturers and suppliers that do not have their export department.

A restriction imposed by a government on the value or number of exported goods or services. It is typically designed to protect domestic producers and consumers from temporary shortages of goods or to maintain their prices in world markets.

Government payments, low-cost loans, tax relief, or other benefits provided to domestic producers to support the export of their goods on the world market.

A company that acts as an independent distributor and links local manufacturers with foreign buyers. Its services may include warehousing, shipping, insurance, etc.

A U.S. official export credit agency that provides finance products to U.S. exporters and foreign buyers of U.S. products.

An international trade term for any mode of transport. It is used in the situation when the seller fulfills their obligations by having the goods available for the buyer at the named place at the agreed time. The buyer bears all risks and costs starting when the goods are made available at the named place and continuing until they are delivered. The seller has no obligation to load the goods or clear them for export.

Buying and selling of goods and services over the Internet.

Abbreviation for “freight all kinds.” Typically refers to full container loads of mixed cargo.

Misrepresenting freight or weight information on shipping documents.

It is an Incoterm rule for sea and inland waterway transport. The seller clears the goods for export and delivers them alongside the vessel at the named port of shipment. The buyer assumes all risks and costs for goods from this point forward.

An international trade term for any mode of transport. It is used in the situation when the seller is responsible for either making the goods available at its premises or at a named place. The seller is responsible for loading the goods on the buyer’s transport, delivery to the port, and export clearance including security requirements. Risk transfers once the goods are loaded on the buyer’s transport.

The agency within the U.S. federal government responsible for administering maritime affairs including the tariff system, freight forwarder licensing, enforcing the conditions of the Shipping Act, and approving conference or other carrier agreements.

Sometimes abbreviated as Fed. Reg., FedReg, or FR. It is the official journal of the federal government of the U.S. where government agency rules, proposed rules, and public notices are published.

A short-distance or regional maritime service that transfers cargo from regional ports or small terminals to a central hub port for a long-haul ocean voyage.

A short-sea vessel that transports cargo between smaller ports and a central hub port.

A standard 40ft shipping container, measuring approximately 40 ft (12.2 m) long, 8 ft (2.4 m) wide, and 8 ft (2.4 m) high. One standard FEU can hold 22 to 23 pallets and carry approximately 58,930 pounds (26,730 kg), depending on the shipping line’s limitations.

A container with two end walls, but without side walls and a roof. It is usually used for oversized cargo that cannot be transported in a standard container.

An international trade term for sea and inland waterway transport. It is used when the seller clears the goods for export and delivers them on board the vessel at the named port of shipment. The buyer assumes all risks and costs for the goods from this moment forward.

A common clause in contracts that exempts the parties from not fulfilling their obligations due to events beyond their control, such as natural disasters or war.

The direction on a vessel parallel to the center line.

A part of the U.S. Department of Agriculture. It helps bring U.S. farm products to international markets by providing exporters with resource and market intelligence assistance.

An act making it unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official to obtain or retain business.

Also abbreviated FTZ and sometimes called a ‘free trade zone’ or ‘free port’. These are secure areas where goods can be manufactured, modified, and stored under specific customs regulations and are generally not subject to customs duties.

Foreign Principal Party in Interest. This is the party abroad to whom the final delivery of the goods will be made.

A shipment that is miscarried or unloaded at the wrong place and then sent to its proper destination without additional charge.

A marine insurance agreement in which the assurer does not have to pay for partial loss or damage to cargo shipments except in certain circumstances, such as stranding, sinking, collision, or fire.

The amount of time that a carrier’s equipment may be used without incurring additional charges.

Goods or cargo being transported by ship, train, truck, or airplane.

An Invoice form issued by the carrier based on the Bill of Lading and other information. It includes transactional details and costs for a freight shipment, including services rendered and accessorial charges.

A person who arranges transportation on behalf of a shipper. Typically, a freight broker connects shippers to freight service providers.

A third party who arranges the transportation of goods on behalf of a shipper. A freight forwarder may have its in-house carriers or may contract with external carriers.

Treaties between countries that are designed to reduce barriers to trade and investment, and to facilitate stronger commercial ties between these countries. FTA usually involves lowering duty rates for shipments, provisions for intellectual property rights, environmental protection, dispute resolution, etc.

Refers to the cargo that is large enough to fill a truck. This cargo won’t be consolidated with other shipments from other customers.

The set of regulations placed on international trade in the U.S. They are established and updated by the U.S. Census Bureau.

A loaded vessel is said to be “full and down” when it carries cargoes of such a volume and weight that it fills all the vessel’s spaces and also brings her down to her tonnage load line.

The amount of cargo a vessel can carry. While the cargo lot may take up most of the vessel’s space or tonnage capacity, it does not require a vessel’s volume and weight capacity to be fully utilized.

The quantity of freight that fills a standard truck so that no more of the same type of freight can be loaded, consistent with safety and damage precautions.

An agreement between two parties where both collectively share savings from productivity improvements.

A legal agreement between many countries which promoted international trade by minimizing trade barriers, e.g. tariffs and quotas. It was succeeded by the World Trade Organization (WTO) in 1995, with the original GATT text remaining part of the WTO framework.

A status given to cargo imported into the U.S. that is missing proper Customs documentation or cannot be quickly cleared through Customs for other reasons.

The total monetary value of all goods and services a country produces during a certain period.

The maximum operating weight of a vehicle as specified by the manufacturer including cargo, passengers, and fuel.

A sheltered body of water where ships stop to resupply and load or unload cargo.

A federal charge imposed on importers and domestic shippers to fund the maintenance and improvement of US ports and harbors. HMF is calculated at 0.125% of the cargo value, as declared on the commercial invoice.

An official responsible for the safe and efficient operation of harbors and ports.

An internationally standardized system used to classify traded products. The first six digits of an HS code are universal worldwide, but each country adds additional digits to further specify products. These codes play a role in determining import and export controls and duty rates. The HS is administrated by the World Customs Organization (WCO) and is updated every five years.

An opening on the deck of a vessel, through which cargo or people can go.

The unification of two or more parts of one shipment originating at different locations, moving under one Bill of Lading, from one shipper to one consignee.

A document issued by an Ocean Transport Intermediary (OTI), such as a freight forwarder or a non-vessel operating company (NVOCC), to a shipper to acknowledge receipt of their cargo for shipment.

A classification system that sets out the tariff rates and statistical categories for all merchandise imported into the United States. It is based on the internationally recognized Harmonized System (HS).

The regulations established by the International Maritime Organization (IMO) for the international transport of dangerous goods by sea. This code’s principles help keep people safe, prevent ship damage, and preserve the environment.

Transportation of goods into a country. The opposite of export.

A form submitted by an importer (buyer) or their agent (customs broker) to their country’s customs authority before or upon the importation of goods. It includes the contact details of the importer, how the goods are being transported, and the tariff classifications and values of the items on the shipment.

A government-issued permit authorizing the importation of goods into the country.

Refers to an import or export shipment that has not yet cleared customs.

A permit that enables foreign merchandise arriving at one port to be transported in bond to another port, where a superseding entry is filed.

A set of universal trade terms published by the International Chamber of Commerce (ICC). They consist of three-letter codes intended to communicate the tasks, costs, and risks associated with the goods transportation and delivery in an international transaction. They define the responsibilities of sellers and buyers for different parts of the transaction.

A sale by an exporter to the buyer through a domestic intermediary, e.g. an export management company or an export trading company.

A document required by some purchasers and countries to attest to the necessary quality, safety, and performance criteria of the goods shipped. The inspection is usually performed by an independent inspection firm.

A document used as evidence that insurance against loss or damage has been obtained for the goods. It is prepared by the exporter or freight forwarder.

The collective term for creations of the mind, such as literary and artistic works, new ideas, inventions, designs, and films protected by copyright, patent, or trademark.

A location where freight in transit is transferred from one carrier to another.

Also known as a tote, IBC tote, or IBC tank. A pallet-mounted, industrial-grade reusable container used for transportation and storage of liquids, pastes, semi-solids, and solids. The two most common totes are the composite 275-gallon and 330-gallon (1,040 and 1,250 liters) tanks made of high-density polyethylene (HDPE), surrounded by a galvanized steel cage. They feature integrated pallet bases with dimensions near the common pallet standard size of 48” x 40” (1,219 mm × 1,016 mm).

Also known as Multimodal. A method of moving goods in the same load unit using more than one type of transportation (air, rail, sea, truck, etc.). An intermodal container is used in different modes of transport without having to unload and reload the goods at each point where the mode of transport changes. In international trade, the intermodal container is usually synonymous with the container.

An organization that plays a role in rule setting, dispute resolution, and policy advocacy in international trade, supporting the commerce goals of the United Nations and the World Trade Organization.

A U.S. Department of Commerce bureau that promotes exports by providing diplomatic support, helping to shape trade policy, removing trade barriers, and enforcing U.S. trade laws and agreements.

An itemized list of goods shipped to a buyer, usually specifying quantities, prices, shipping charges, etc.

A document listing all cargo entering a country of import. It is required by all world ports, primarily for assessing duty in the receiving country.

International Standards for Phytosanitary Measures No. 15 is an international environmental standard for treating wood packaging materials. It was set up to help prevent the spread of pests and diseases. Under these rules, all wood packaging materials such as pallets, crates, and boxes must be debarked, heat treated, or fumigated to eliminate insects or diseases that could be harmful to ecosystems.

Establish controls regarding the export and import of space- or defense-related products. They are enforced by the U.S. Department of State.

A method of inventory control which minimizes warehousing and in which the container acts as a movable warehouse. A company receives goods as close as possible to when they are needed.

A unified cost applied by multiple transport providers when delivering a load of goods over a route.

A list of items exempt from country of origin marking requirements when importing into the US. Items on the J-list are usually exempt because they are either incapable of being marked (e.g. liquids) or marking them is impractical (e.g. fine art).

A unit of speed equal to one nautical mile (6,076 feet or 1852 meters) per hour. It is abbreviated kt or kn.

A loss discovered before or at the time of shipment’s arrival.

Loaded aboard a vessel.

The total cost of a product after it has been delivered to a customer. It includes raw materials, shipping costs, insurance, warehousing, and all applicable duties and fees.

a) For the purpose of determining the applicability a vehicle that is self-propelled and capable of transporting a person or persons or any material or any permanently or temporarily affixed apparatus shall be deemed a motor vehicle, unless any one or more of the criteria set forth below are met, in which case the vehicle shall be deemed not a motor vehicle:

• The vehicle cannot exceed a maximum speed of 25 miles per hour over level, paved surfaces; or
• The vehicle lacks features customarily associated with safe and practical street or highway use, such features including, but not being limited to, a reverse gear (except in the case of motorcycles), a differential, or safety features required by state and/or federal law; or
• The vehicle exhibits features that render its use on a street or highway unsafe, impractical, or highly unlikely, such features including, but not being limited to, tracked road contact means, an inordinate size, or features ordinarily associated with military combat or tactical vehicles such as armor and/or weaponry.

b) Note that in applying the criterion in paragraph (a)of this section, vehicles that are clearly intended for operation on highways are motor vehicles. The absence of a particular safety feature is relevant only when absence of that feature would prevent operation on highways.

The USPPI is the party in the United States that primarily benefits from an export transaction. This is typically the seller or exporter of the goods. The USPPI is responsible for providing accurate export information and ensuring compliance with U.S. export regulations.

A North American free trade agreement that replaced the North American Free Trade Agreement (NAFTA). It aims to promote economic growth and job creation among the three countries by reducing tariffs and other trade barriers.

A list of defense articles and defense services that are subject to U.S. export controls. It is maintained by the U.S. Department of State and is used to regulate the export of military and dual-use items.

A U.S. federal department responsible for promoting American business and economic growth. It oversees various aspects of domestic and international commerce, including international trade, economic analysis, and technology policy.

A U.S. government agency that provides support and assistance to small businesses. This includes a variety of programs and services, such as loans, counseling, and training, to help small businesses start, grow, and export.

A U.S. government agency that promotes U.S. exports by funding feasibility studies and technical assistance projects in developing countries.

A consumption tax added to the price of goods and services at each stage of production and distribution. This tax is ultimately borne by the end consumer.

Common term for all types of machines used for transporting people or/and goods, especially on land, e.g. cars, trucks, buses, etc.

A watercraft, such as a boat or a ship, used for transportation on water.

A detailed document that lists all the cargo, passengers, and crew on a vessel. It provides crucial information for customs, immigration, and port authorities.

A system that monitors and controls ship traffic in a specific area, such as a harbor or port. VTS systems use radar, radio communication, and other technologies to ensure the safe and efficient movement of vessels.

Insurance coverage that protects against financial losses resulting from war-related events such as invasion, civil war, terrorism, or acts of war.

A building or facility designed to store goods, merchandise, or materials. Warehouses are used to protect goods from damage, theft, and weather conditions.

A legal document issued by a warehouse to acknowledge the receipt of goods. It serves as proof of ownership and can be used as collateral for loans.

The process of storing goods in a warehouse. This includes activities like receiving, storing, and retrieving goods, as well as inventory management and order fulfillment.

A structure built along a waterfront for loading and unloading ships. Wharves provide a platform for the transfer of cargo between ships and land-based transportation.

An intergovernmental organization that aims to simplify and harmonize customs procedures and regulations worldwide. The WCO is responsible for developing and maintaining the Harmonized System (HS) of tariff classification.

An international organization that regulates international trade. The WTO oversees trade agreements, resolves trade disputes, and promotes free trade among member countries.