Incoterms 2010 (Part 3)

 

On-Forwarding

Forwarding a shipment from an intermediate stop to its final destination; subject to additional charge.

 

Open Tops

A 20' or 40' container with the top being open. Used for oversized cargo, and it's covered by a tarp for protection of the cargo.

Oversized Pieces Shipments of 85 inches or greater that are too large to fit on a pallet.

 

Packing List

This important document describes all items in the box, crate, pallet, or container, plus the type, dimensions, and weight of the container. It is used to determine total shipping weight and volume (cubes) by Customs officials to check cargo, and by the buyer to inventory merchandise received. Prices and item values are usually omitted from the Packing List. Shipping marks, reference numbers and carton numbers are also important additions to the packing list.

 

Palletized Cargo

Cargo that is placed on portable platforms for easier loading/unloading or transportation. Platforms are called pallets.

 

Perishable

Products that require expedited transport or special attention to prevent spoilage or decay such as fruits, vegetables, frozen fish or certain chemical products.

 

Phytosanitary Inspection Certificates

Also referred to as "plant health" certificates, these are required by many foreign countries for shipments of plants and plant products. They serve to certify conformity to local plant quarantine import regulation with respect to pest and disease infection.

 

Pick Up Service

Retrieving goods from a shipper to be brought to their destination for a fee.

 

POD

Port of Discharge, also Proof of Delivery.

 

Point of Origin

The location where a shipment first starts out.

 

POL

Port of Landing

 

Port of Entry

The Port, airport, or other location whereby a shipment enters a country.

 

Postal Code

A four to nine digit number identifying postal delivery zones in Canadian and international cities.

 

Power of Attorney

Exporters and Importers authorize Freight Fowarders and Customs Brokers to act as their agents, for export control and Customs purposes, with this document. Completed Power of Attorney documents, however, do not relieve importers or exporters from liability to the U.S. Government in the event of export control or entry errors.

 

PPD

Prepaid Charges.

 

Prepaid freight

Freight paid by the shipper to the carrier when merchandise is tendered for shipment. Not refundable if the merchandise does not arrive at the intended destination.

 

Preprinted Airbill

Airbills preprinted with shipping company name, address and account number. Preprinted airbills help speed completion of shipping documentation and assure accurate billing.

 

Pro forma Invoice

The Pro Forma is used primarily to document to the buyer, in advance, the cost and terms of sale of a proposed export. It is used by the foreign buyer as a quotation from the exporter and also to assist in applying for a Letter of Credit from his bank. The Pro Forma Invoice serves as the basis for the subsequent Commercial Invoice.

 

PTP

Port to Port.

 

Receipt For Shipment B/L

When the steamship line gives the shipper a B/L indicating that cargo has been received at the pier, but not necessarily loaded on the vessel.

 

Reefer

This container usually has a self-sustaining unity to keep cargo cool/cold at certain temperatures.

 

Restricted Articles

An airline term meaning a hazardous material as defined by Title 49, Code of Federal Regulations (U.S.) and Air Transport Restricted Articles Circular 6-D. Restricted articles may be transported domestically and may be classified as dangerous goods when transported internationally by air.

 

Ro/Ro

Roll-on/Roll-off. A type of vessel that transports wheeled vehicles. Also used to refer to the cargo itself.

 

S/

Shipper.

 

Schedule B Number

A number from a published governmental list that classifies commodities being exported from the United States. Needed for completion of international shipping documentation.

 

Shipper's Declaration for Dangerous Goods

Under the regulations of the Department of Transportation, the International Air Transport Association (IATA), and the International Maritime Organization (IMO), shippers and exporters are required to declare dangerous cargos to the air and ocean carriers they use for shipment. Both the IMO and IATA require specific documents to report hazardous goods, and these requirements are published in their respective Codes. IATA also provides a document specifically for non-restricted articles.

 

Shipper's Export Declaration (SED)

Issued by: Exporter (or freight forwarder on exporter's behalf) Purpose: U.S. Forms 7525-V and 7525-V-Alternate (for intermodal shipments) required by federal law for any commodity with value over $2,500 or any shipment requiring validated export license. Enables Bureau of the Census to compile trade statistics. Shipper or its agent submits form to carrier, which then submits SEDs for all shipments on vessel voyage or aircraft flight to U.S. Customs.

 

Shipper's Interest Insurance

Insurance, arranged for by carrier if specified on the Airbill, which covers shipments against risk of physical loss or damage from any external causes.

 

Shipper's Letter of Instruction

These instructions, often prepared along with a Shipper's Export Declaration, are the exporter's direction to the freight forwarder on how to handle the exporter's shipment. The information prepared on the SLI includes a description of the goods and containers, the ultimate consignee, shipping method desired, insurance requirements, and special instructions pertaining to the shipment.

 

Ship's Gear

Any equipment ( such as cranes, hatches, winches, cables) belonging to or part of the vessel.

 

Sight, Time Drafts

Issued by: Exporter (or freight forwarder on exporter's behalf) Purpose: Request for payment from foreign buyer. Instructs buyer's bank to collect payment; when collected it releases shipping documents to buyer. Buyer's bank then remits to seller's bank. Sight drafts are payable on receipt at buyer's bank. Time drafts extend credit; foreign bank releases documents immediately, but collects payment later, for example, 30 days after receipt of draft.

 

Single Access Document

Also referred to as "SAD" the Single Access Document required for movement of goods through the countries of the European Economic Community. Generally prepared by Customs Brokers in Europe for imports entering the EC.

 

Skidded Crate

A crate with skids underneath for easy lifting with fork lifts.

 

SL&C

Shipper Load and Count.

 

ST

Short Ton (2,000 pounds).

 

STC

Said to Contain.

 

Steamship conference

A voluntary collective ratemaking body representing member steamship lines.

 

Steamship line

A company that owns and/or operates vessels in maritime trade.

 

T.O.F.C.

Railroad term which means Trailer On Flat Car.

 

Tare Weight

The weight of a shipment excluding the goods being shipped (compare with Gross Weight.)

 

Tariff

A document issued by a carrier setting forth applicable rules, rates, and charges for the movement of goods. It sets up a contract of carriage between the shipper, consignee, and carrier. In international trade applications, the term also refers to a tax on imports.

 

Tariff Rate

The rate or price schedule for transporting different items to various countries.

 

Telex

A communication wire service that automatically transmits data that has been entered on a teletypewriter.

 

TEU

Twenty-foot equivalent unit. Used to measure a vessel's capacity.

 

THC

Terminal Handling Charge.

 

Third Party Billing

The designated payor of an invoice other than the shipper or the consignee.

 

Transmittal Letter

The Transmittal Letter, commonly prepared with a Bank Draft, is the document used to send shipping documents to a remitting bank for processing either a collection or payment/negotiation under a Letter of Credit. It contains the shipper's precise and complete instructions on how the documents are to be handled and the payments remitted.

 

Transshipment

Shipment of merchandise to the point of destination in another country on more than one vessel or vehicle. The liability may pass from one carrier to the next, or it may be covered by "through bills of lading" issued by the first carriers.

 

TRC

Terminal Receiving Charge.

 

TVC

Time Volume Contract.

 

ULD

Unit load device. Refers to airfreight containers and pallets.

 

Unit Cost

The cost associated with one unit of an item.

 

USAID Label

Labels and aluminum placards bearing the new (1991) logo of the Agency for International development. All merchandise exported under an A.I.D. program or contract must be labeled with the USAID emblem.

 

Validated Export License

Issued by: U.S. Department of Commerce. Purpose: Required for commodities deemed important to national security, foreign-policy objectives, or protecting domestic supplies or strategic materials. Constitutes permission to export a specific product to a specific party. Exporter applies for license, which must be returned to Bureau of Export Administration after completing specified shipments.

 

W/M

Weight or Measure: whichever is greater.

 

Weight Certificate

The Weight Certificate, usually a certified copy of the Packing List, is occasionally required by the foreign buyer for control purposes. This type of

certification may be made with an export inspection company.

 

WT

Weight or Weight Ton.

 

Zip Code

A five (or nine) digit number that identifies every Post Office and delivery station within the United States. ZIP coded shipments will be delivered quicker than uncoded shipments.

 

The Incoterms® rules are an internationally recognized standard and are used worldwide in international and domestic contracts for the sale of goods. First published in 1936, Incoterms® rules provide internationally accepted definitions and rules of interpretation for most common

commercial terms.

 

The rules have been developed and maintained by experts and practitioners brought together by ICC and have become the standard in international business rules setting. They help traders avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. Incoterms® rules are recognized by UNCITRAL as the global standard for the interpretation of the most common terms in foreign trade.”