Incoterms 2010 (part 2)

 

Export Trading Company

A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.

 

Exporter

The person sending goods produced in one country to another country.

 

Express B/L

Ocean Bill of Lading issued by the steamship line when cargo is consigned directly to the customer. Cargo is automatically released. No originals are issued.

 

F.O.B. (Free on Board)

The price including cost of loading the goods for transportation at a specified place.

 

Facsimile

The transmission of an exact copy of a document by wire or radio.

 

FAF

Fuel Adjustment Factor.

 

FCL

Full Container Load.

 

Federal Maritime Commission (FMC)

Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States.

 

FEU

40 foot equivalent unit.

 

Flat Bed

A type of truck with no side panels on to which cargo is usually strapped, chained or otherwise attached.

 

Flat Rack

Usually a wheel-less piece of equipment to which a piece of cargo is attached, strapped, or otherwise secured. Standard size is 20' or 40' long.

 

Foreign Trade Zone

A site sanctioned by the U.S. Customs Service in which imported goods are exempted from duties until withdrawn for domestic sale or use. Such zones are used for commercial warehouses or assembly plants.

 

Form A

"Form A" refers to an origin declaration document, required by importers from their foreign suppliers, to enable the importer to receive favorable Customs duty considerations for goods imported under the Generalized Systems of Preference (GSP). The documents may be supplied only by the foreign shipper, and are not available in the U.S.

 

Form B

"Form B" would refer to the U.S. . Exporter's version of an origin declaration, and is represented by the U.S./Israel Free Trade area Certificate of Origin used by U.S. exporters for shipments to Israel.

 

Forwarder's Receipt

Receipt issued by the appointed forwarder that goods have been received without exception for export. Could be used in case of Letter of Credit shipment under Ex-Works terms of sale.

 

Forwarding

To ensure and facilitate the passage of goods from an origin to a destination.

 

Free Trade Zone

A port designated by the government of a country for duty-free entry of any nonprohibited goods. Merchandise may be sorted, displayed, used for manufacturing, etc., within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs authority.

 

Freight Forwarder

A firm that represents shippers by arranging transport and completing documentation required for international shipping. Some freight forwarders also act as cargo consolidators.

 

Freight Payable at Destination

When the ocean freight of a shipment is paid at the time of delivery at the foreign port.

 

Full Set Off B/L's

Usually means the issuance of the three original's and three copies of the ocean Bill of Lading. This term is generally accepted by banks and shippers.

 

FVD

Full Value Declared.

 

Gateway City

Key cities of entry/departure for international shipments, strategically located for the most efficient movement of goods.

 

General Order (G.O.)

A Customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival is stored at the risk and expense of the importer.

 

Gondola Cars

Special type of railroad equipment. Car usually shaped like a gondola (long with no top). Usually carries grain, ore, or other bulk cargo.

 

Gross Weight

The total weight of a shipment including the goods and packaging. (Compare with Tare Weight.)

 

Harbor Maintenance Fee

Customs form CF349 is used by both exporters and importers to report, on a quarterly basis, all shipments which used a U. S. water port. A fee of .125% of the value of the shipments is collected and used to maintain U.S. harbors.

 

Hazmat Bill of Lading

The Research and Special Programs Administration (RSPA) of the Department of Transportation provides specific regulations for shipping papers documenting hazardous material shipments in the U.S. The Haznat Bill of Lading, usually based on a straight, non-negotiable Short Form Bill of Lading, includes areas to report the additional requirements of the RSPA.

 

HBL

House Bill of Lading.

 

House to House Rates

This rate usually applied from the Shipper's Warehouse to the Consignee's Warehouse. Also known as Warehouse to Warehouse.

 

IATA (International Air Transport Association)

International Air Transport Association. The trade and service organization representing international airlines from more than 100 countries.

 

ICAO

International Civil Aviation Organization. A United Nations agency organized to ensure orderly worldwide technical development of civil aviation.

 

IMO

International Maritime Organization. A United Nations affiliated organization representing all maritime countries in matters affecting maritime transportation,including the movement of dangerous goods. The organization also is involved in deliberations on marine environmental pollution.

 

Import License

Many countries have currency exchange controls which serve to limit the amount of currency available for the purchase of foreign merchandise. The import license is used to control orders sent to foreign exporters. It is important for exporters to understand their foreign buyer's licensing requirements as payment negotiations are made prior to any exportation.

 

Import License

A document issued by a carrier required and issued by some national governments authorizing the importation of goods into their individual countries.

 

In Bond

A term applied to the status of merchandise admitted provisionally to a country without payment of duties, either for storage in a bonded warehouse or for transshipment to another point, where duties eventually will be paid.

 

Inland Bill of Lading

The Inland Bill of Lading, usually a non-negotiable document, evidences the receipt of goods by an inland carrier for transport from the point of origin to the point of export. These bills of lading include the following export information: "for export," marks and number, "freight prepaid," and special delivery/notification instructions.

 

Inspection Certificate

To protect themselves, many foreign firms request a Certificate of Inspection. This may be an affidavit by the shipper, or by an independent inspection firm hired by the buyer, certifying the quality, quantity, and conformity of the goods to the purchase order.

 

Insurance Certificate

An Insurance Certificate gives evidence of risk coverage for merchandise shipped. It is sent to the bank with other collection documents, and normally is used only when required by Letter of Credit or Documentary Collection procedures. There are many types of insurance policies available. Coverage requested is usually 110% of the value of the cargo shipped.

 

Insured Value

Dollar amount of which goods are insured by shipper.

 

Integrated Carrier

An airfreight company that offers a blend of transportation services such as air carriage, freight forwarding, and ground handling.

 

Interchange Agreement

A contract between a steamship line and the truck line, stating the (truck line) is responsible for any detention charges and/or repairs that may occur while container is in their possession. Contract also proves that truck line has the required insurance.

 

International Import Certificate

This document is the Bureau of Export Administration (BXA) form number BXA-645P. It is required for the import of selected commodities form COCOM nations. The U.S. importer would supply this form, after authorization by BXA, to the foreign exporter so that he could apply for an export license.

 

In-Transit Declaration

The In-Transit Declaration, Department of Commerce form 7513, is prepared for shipments in transit form one foreign country to another which pass through the continental U.S., the U.S. Virgin Islands, or Puerto Rico. Also used for merchandise exported from General Order warehouses and for imports rejected by the U.S. government and re-exported.

 

KGS

Kilogram (2.2046 pounds).

 

Knots Per Hour

Units of measure for ship's speed: Nautical Miles per Hour. One nautical mile is 1852 meters.

 

KT

Kilo ton (1,000 kilograms).

 

L/B

Land Bridge.

 

L/C

Letter of Credit.

 

Lash Down

A method of securing cargo inside the hold or on deck of a vessel. Usually done with cables.

 

LBS

Pounds.

 

LCL

Less than Container Load.

 

Letter of Credit

The Letter of Credit is a financial Instrument issued by an importer's bank (opening bank, on behalf of the importer). The opening bank substitutes its own credit for that of the importer, and undertakes a commitment to designated beneficiary (the exporter) to pay a stated amount within a stated time frame,provided that the exporter complies with all the terms and conditions of the Letter of Credit.

 

Limits of Liability

The extent to which carrier is liable for loss or damage to a particular shipment.

 

Loss and Damage Claim

This document is used to claim insurance compensation for goods lost or damaged during exportation. The items lost or damaged must be fully described. Supporting documentation would include copies of the Commercial Invoice, Bill of Lading, and Insurance Certificate.

 

LRD

Last Receiving Date.

 

LT

Long Ton (2,249 Pounds).

 

LTL

Less than Trailer Load.

 

M/N

Marks and Numbers.

 

M3

Cubic Meters.

 

Manufacturer's Certificate

A Certificate of Manufacture is used when a buyer intends to pay for goods prior to shipment, but the lead time for the manufacturing process is lengthy and the buyer does not which to tie up funds too far in advance. Usually, the goods are manufactured after a small down payment. when the goods have been manufactured, the seller prepares a Manufacturer's Certificate stating that the goods ordered have been produced in accordance with the contract with the buyer. Upon receiving the certificate, the buyer forwards both payment and shipping instructions, and the shipment is made by the seller.

 

Marine Cargo Insurance

Average - A term in marine cargo insurance signifying loss or damage to merchandise.

General average - A loss arising out of a voluntary sacrifice made of any part of a shipment or cargo to prevent loss of the whole and for the benefit of all persons concerned.

FPA - Free of particular average - a provision in a marine cargo insurance policy that no claim shall be paid for damage to goods in the course of a voyage unless a loss is sustained that totals or exceeds a certain percentage of the value as specified in the policy. The object of such a provision is the avoidance of petty claims.

Open Policy - A contract between an insurance company and the exporter by which all shipments made by the assured are automatically protected from the time the merchandise leaves the initial shipping.

Particular average - A partial loss or damage of merchandise caused by a peril insured against, but which is not a general-average loss.

 

MLB

Mini-Land Bridge.

 

N/

Notify Party.

 

NCV (No Commercial Value)

Shipments declared as having no commercial value but having a value for Customs. Best example would be business documents.

Non-Conference Rate Rates which are assessed by those lines that do not belong to a particular conference. Rates can be approximately 10% lower than conference rates.

 

Non-Dutiable

Those goods which are exempt from duty as per each nation's Customs regulation.

 

NOS/NES

Not otherwise specified/Not elsewhere specified. This term often appears in ocean or airfreight tariffs respectively. If no rate for the specific commodity shipped appears in the tariff, then a general class rate (for example, "printed matter NES") will apply. Such rates usually are higher than rates for specific commodities.

 

NVOCC

Non-vessel operating common carrier. A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full containerloads. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime commission and are subject to the same laws and statutes that apply to primary common carriers.

 

O/B

Onboard Vessel.

 

O/F

Ocean Freight (charges).

 

OBL

Ocean Bill of Lading.

Ocean Bill of Lading Issued by: Steamship line Purpose: Each carrier has its own bill of lading form. Serves as contract of carriage between carrier and shipper, spelling out legal responsibilities and liability limits for all parties to the shipment. The B/L also can be used to transfer title to the goods to a party named in the document. Specifics shipment details, such as number of pieces, weight, destination, etc. Usually three signed originals issued. Licensed consolidators (NVOCCs) issue their own B/Ls to shippers.

 

On-Board Courier

A dedicated messenger who physically accompanies an international shipment.

 

On-Deck Cargo

Cargo usually stowed on the deck of a vessel. This cargo is usually subjected to wind and sea water.