Incoterms 2010 (part 1)

 

ACS/ABI/AMS

Automated Commercial System/Automated Broker Interface/Automated Manifest System. U.S. Customs programs to automate the flow of Customs-related information among Customs brokers, importers, and carriers.

 

Air Waybill

The Air Way bill is a non-negotiable Bill of Lading, and is used as a receipt for cargo and a contract for transportation between shipper and air carrier. Unlike an ocean carrier with a "to order" Ocean Bill of Lading, the air carrier must deliver the shipment to the consignee named on the non-negotiable Air Waybill. International air waybills or "airline air waybills," are used by the air carriers; "House air waybills, " are used as receipts by Freight Forwarders who then consolidate them with the air carriers international air waybills.

 

Air cargo Agent

An agent appointed by an airline to solicit and process international airfreight shipments.

 

Airport Code

A three letter code assigned to all airport locations worldwide.

 

Arrival notice

A notice from the ocean carrier to the "notify party" indicating the vessel's estimated arrival date; identifying shipment details such as number of packages, weight, and container number, and indicating when free time expires. Often includes a freight invoice.

 

BAF

Bunker Adjustment Factor.

 

Barge To Ship

When cargo is loaded directly from the barge to the ocean carrier, therefore avoiding delivery to the wharf.

 

Bonded Warehouse

Goods that must be held until duties are paid are normally put in a bonded warehouse. Warehouses must be approved by the U.S. Treasury Department and must be under bond or guarantee of compliance with revenue laws.

 

Break Bulk

The movement by ocean of packaged goods that are not containerized.

 

BSC

Bunker Surcharge.

 

C/

Consignee.

 

C/Y

Container yard.

 

CAF

Currency Adjustment Factor.

 

Carnet

Customs document, issued under the terms of a convention, that permits the holder to carry or send merchandise temporarily into foreign countries ( for display, demonstration, or similar purpose) without paying duty or posting bond. Examples are ATA (Admission Temporaire) and TIR ( Transport International Routier). Violation of any of the privileges of CARNET will result in assessment of duty and charges for damage.

 

Carrier Certificate and Release Order

Used to advise Customs of the shipment's details. 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.

 

CBM

Cubic Meter (35.314 cubic Feet = 1 CBM).

 

Certificate of Origin

The document certifies that goods were manufactured in the United States. It is signed by the shipper and may also be a certified by a local Chamber of Commerce, notarized, and even visaed by a resident foreign consul. A Certificate of Origin may be required by a foreign government for control purposes, or by the foreign importer to ensure that he receives U.S. goods. Specific C/Os are required for duty reductions with Canada (U.S./Canada Free Trade Agreement) and Israel (U.S./Israel Free trade Area).

 

CFS

Container Freight Station.

 

CFS/CFS

Container Freight Station to Container Freight Station. A type of steamship line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-thancontainer load shipments.

 

CFT

Cubic Feet.

 

Chargeable Weight

The shipment weight used in determining air freight charges. The chargeable weight may be the dimensional weight or for container shipments, the gross weight of the shipment less the tare weight of the container.

 

Charterparty

A Charterparty is a contract signed between a ship owner and a charter who hires the vessel for a period of time (Time Charter) or for a particular voyage (Voyage Charter). There are many types of Charterparties, most codified by various shipping associations.

 

Clean On-Board B/L

A Bill of Lading issued without exceptions.

 

COD

Collect on Delivery: cost of goods and freight.

 

COFC

Container on Flat Car

 

COL

Collect Charges.

 

Collect Freight

Freight payable to the carrier at the port of discharge or ultimate destination. The consignee need not pay if the cargo does not arrive at destination.

 

Collection Letter

A collection is the procedure whereby the exporter entrusts the movement of his commercial documents to a remitting bank for further processing through a collection bank for settlement from the buyer. A Collection Letter is the document used by the remitting bank to relay complete and precise instructions to the collecting bank.

 

Commercial Invoice

A commercial invoice is the basic statement of the seller to the buyer for payment of the goods shipped. It must conform to any Letter of Credit requirements, foreign government requirements, and U.S. export control requirements regarding destination statements. It is used as one of the primary documents in the collection process, and is the main document used by foreign Customs for control, valuation

of the goods, pricing, terms of sale, payment and delivery, credit numbers, import license numbers, shipper and consignee names, and shipping marks and numbers. Commercial invoices are usually signed by the exporter.

 

Commercial Value

Assessment of monetary value of manufactured goods including production costs, packaging, shipping, overhead and profit margin; used to determine duty.

 

Commodity

Any article or goods of commerce.

 

Commodity Control List

List of commodities subject to U.S. Department of Commerce export controls.

 

Conference Rates

Published rates which are applied equally by all the lines belonging to that particular conference for a specific commodity.

 

Consignee

The receiver of the shipment.

 

Consular Invoice

Prepared from the information on the commercial invoice by the buyer's consulate or embassy in the shipper's country, these documents are usually stamped with an official seal. They may be specific forms required by the destination country's government or simply copies of the Commercial Invoice. Consular Invoices are required for control of certain commodities and to ensure valuation control.

 

Consularization

A document certified by the Consular of some foreign countries verifying the value, quantity and nature of a shipment.

 

Country of Transshipment

The country through which a shipment must pass and be re-sorted to reach its ultimate destination.

 

Country of Ultimate Destination

Final country, as known by an exporter, where goods are scheduled to arrive.

 

Courier

A term used to connote fast, expedited, personalized package and document handling.

 

CSC

Container Service Charge.

 

Customs Broker

A firm that represents importers in dealings with Customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through Customs, arranging inland transport, and paying all charges related to these functions.

 

Customs Clearance

International procedure of declaring goods at the Customs Office to gain authorized entry of those goods into a country.

 

Customs Invoice

Certain countries require special invoices containing specific information for the Customs clearance and valuation of imported shipments. These documents contain most of the elements of the Commercial Invoice, and are usually in the language of the importing country. The Canadian Customs Invoice is the most popular of this type.

 

Customs Value

The value of a shipment as declared by the shipper or appraised by Customs to enable determination of accurate import duties.

 

CY/CY

Container Yard to Container Yard. A type of steamship line service in which freight is transported from origin container yard to destination container yard.

 

Dangerous Goods

Articles or substances which are capable of posing a significant risk to health, safety or property when transported by air and which are classified according to subsections 3.1 through 2.10 in IATA. This includes cargo labeled as flammable, corrosive, radioactive, etc.

 

DDC

Destination Delivery Charge.

 

Declared Value

The value of a shipment as declared by the shipper, used to determine the value for duty and carrier liability.

 

Delivery Instructions

Also called delivery Orders, these documents provide specific information to a carrier regarding delivery to a specific port, pier, terminal, airport, or steamship ine. They show the shipping carrier, delivery deadlines, name and address of consignee, and the contact name and telephone number of the shipper n case of delivery problems.

 

Delivery Order

Document issued by the Customs broker to the ocean carrier as authority to release the cargo to the inland carrier.

 

Delivery Service

Bringing goods to a destination on behalf of a shipper for a fee.

 

Demurrage

A charge for storage of incoming merchandise beyond the free time allotted by the shipping company. Also applies to carrier owned or leased equipment, such as containers and chassis.

 

Destination

The location to which a shipment is being delivered.

 

DG

Dangerous Goods.

 

Dimensional Weight

The weight calculated by measuring the length x width x height of a package: used when calculating the rate of oversized pieces.

 

Dock Receipt

The Dock Receipt provides the exporter with a receipt indicating that the oceanterminal operator has taken custody of the shipment on behalf of the ocean carrier. It is basically a proof of delivery of the goods from the exporter to the pier.

 

Draft

Sometimes called a Bank Drafter Bill of Exchange, the Draft is a negotiable instrument which contains an order to pay. It must be signed by the drawer (seller) and be payable at sight or by a certain time. The Draft must contain an unconditional order to pay a certain sum of money to the drawee (buyer). Drafts are used in both collection and Letter of Credit methods of payment.

 

DTD

Door To Door.

 

DTP

Door to Port.

 

Dutiable

Those goods which are subject to duty as per each nation's Customs regulation.

 

Duty

A tax imposed by a government on merchandise imported from another country. There are several types of duty, including: A) Ad valorem duty ("According to the value") - an assessment based on of the actual value of an article. B) Specific duty - an assessment based on the weight or quantity of an article without reference to its monetary value or market price.

 

Duty Drawback

A refund of duty paid on imported merchandise when it is later exported.

 

ECCN (Export Control Commodity Number)

Number (sometimes required on international shipping documentation) that indicates the commodities subject to U.S. Department of Commerce export controls.

 

EIN (Exporter Identification Number)

An Employer's IRS Identification Number (needed on some international shipping documentation) assigned by the Government when exporting goods from the United States.

 

Embargo

The prohibition of accepting freight at origin because of a crisis at the point of destination.

 

Entry Summary

Issued by: Customs broker on behalf of importer. Purpose: Customs Form 7501 specifies all shipment particulars that allow U.S. Customs to assess and collect import duties. Highly standardized to allow computer processing. Includes Harmonized Code number, broker identification number, and auxiliary fees. Broker figures all assessments, then submits form with supporting documents and payment. Customs later either accepts or modifies entry and payment.

 

Entry/Immediate Delivery

Customs Form CF3461 allows the importer or Customs Broker to take immediate delivery of imported goods prior to payment of duties and processing of an Entry Summary for most types of merchandise. The importer has ten days to file the Entry Summary and pay the appropriate duties.

 

ETA

Estimated Time of Arrival.

 

ETD

Estimated Time of Departure.

 

EX DEC

Shipper's Export Declaration.

 

Export Airbill

A non-negotiable document prepared by the shipper which includes pertinent information. For example, Shipper and consignee name and address, Account Number, brief description of goods, etc.

 

Export Broker

An individual or organization that unites buyer and broker for a fee.

 

Export License

Under the Export Administration Act, the U.S. Bureau of Export Administration (BXA) is charged with controlling and licensing most items exported from the U.S. for reasons of national security, short supply, and foreign policy. There are two basic types of export licenses: Individual Validated Licenses which must be applied for and received from the BXA: and General Licenses, which are not documents but rather published authorizations covering commodities not subject to validated licensing.

 

Export License

A Government authorization which allows a shipper to export specified goods to designated countries.

 

Export Management Company

A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of it s clients in return for a commission, salary, or retainer plus commission.