A Glossary of International Shipping Terms

Shipping merchandise appears easy, proper? You merely bundle the product and ship it to your buyer. But do you know there are several types of cargo?

Depending on the scale of your cargo, it could be thought of parcel, less-than-load (LTL) or a full truckload (FTL) cargo. Your cargo could also be too small for sure carriers, or conversely, when you have a big cargo, you will have to depend on a service licensed to ship massive containers. There are additionally distinctive issues relying on the mode of transport—whether or not you’re delivery by way of air, sea, street or rail.

Scores of exporters who use Shipping Solutions Export Documentation and Compliance Software have instructed us that the wide range of phrases that relate to the method of shifting items by a provide chain appear overwhelming. But understanding the several types of cargo and associated phrases is essential to make sure your items get shipped on time, inside compliance and in good condition.

That’s why we have offered this glossary of global delivery phrases.

A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | Q | R | S | T | U | V | W

ACE

The Automated Commercial Environment is the web net portal used to report information to the Automated Export System (AES) for exports leaving the United States, and likewise for customs submitting for imports coming into the United States.

ACE—Authorized Cybersecurity Exports

Export license exception ACE permits the export, re-export and switch (in-country), together with deemed exports and re-exports, of designated “cybersecurity objects” to approved finish customers and locations. This exception helps cybersecurity actions and incident response whereas proscribing entry to delicate authorities finish customers and functions which will pose nationwide safety considerations. Learn extra: What You Need to Know about Export License Exceptions.

ACM—Advanced Compute Manufacturing

This license exception permits for the export, re-export or switch (in-country) of superior computing chips, with out an authorization, for the needs of improvement, manufacturing and storage of those chips, besides to arms-embargoed international locations. Learn extra: What You Need to Know about Export License Exceptions.

Advance Payment

See Cash in Advance.

AES

The Automated Export System is utilized by the U.S. authorities to gather information on exports. This information known as Electronic Export Information (EEI), and in lots of circumstances, exporters are legally required to file the EEI by AES for every cargo. The U.S. Census Bureau makes use of this information to calculate commerce statistics similar to gross home product (GDP), whereas U.S. Customs and Border Protection (CBP) makes use of it to verify exporters are following U.S. export rules. See additionally: Filing through AESDirect: 20 Terms Exporters Need to Know.

AES Filing Citation

A notation positioned on industrial loading paperwork to point out that an AES submitting was accomplished, exempt or excluded.

Aggregate Shipment

Multiple shipments—from completely different sellers to a single consignee—which are consolidated by the service right into a single cargo.

AGR—Agricultural Commodities

License exception AGR permits the export of agricultural commodities to Cuba, in addition to the re-export of U.S.-origin agricultural commodities to Cuba, offered the transaction meets all the standards specified by Part 740.18. Exporters should notify BIS earlier than any export or re-export below license exception AGR. Learn extra: What You Need to Know about Export License Exceptions.

AIA—Artificial Intelligence Authorization 

This export license exception permits for the export, re-export or switch (in-country) of superior computing chips, with out an authorization, to a set of allies and companions. Learn extra: What You Need to Know about Export License Exceptions.

Air Waybill (AWB)

The AWB is a doc that controls the routing of an exporter’s cargo whereas it’s within the palms of the air service or a consolidator. It is a contract for carriage; nevertheless, it can’t be negotiated.

ALADI

The Latin American Integration Association (ALADI) is an global affiliation of Latin American international locations. Its operate in Latin America is akin to the operate of the previous European Economic Community—which has now develop into embedded within the framework of the European Union—in Europe. The objective of ALADI is to harmonize commerce throughout the member states. There are at the moment 13 member international locations representing a inhabitants of greater than 500 million folks. ALADI has its personal commodity classification system much like the worldwide Harmonized System (HS).

Alongside

Refers to the facet of a ship. Goods delivered alongside are positioned on the dock or barge inside attain of the ship’s rigging so it may be simply loaded onto the ship. For instance, it’s used within the Incoterms 2020 commerce time period Free Alongside Ship.

APP—Computers Adjusted Peak Performance

License exception APP authorizes exports, re-exports and transfers (in-country) of computer systems, together with “digital assemblies” and specifically designed elements therefor managed by ECCN 4A003 exported or reexported individually or as a part of a system for consumption in Computer Tier international locations as listed in Part 740.7. When evaluating your pc to find out license exception APP eligibility, use the APP parameter to the exclusion of different technical parameters in ECCN 4A003.

License exception APP additionally authorizes exports of know-how and software program managed by ECCNs 4D001 and 4E001 specifically designed or modified for the “improvement,” “manufacturing,” or “use” of computer systems, together with “digital assemblies” and specifically designed elements therefor labeled in ECCN 4A003 to Computer Tier international locations. Learn extra: What You Need to Know about Export License Exceptions.

Antidiversion Clause

See Destination Control Statement.

Antidumping Duty

A particular obligation imposed by a rustic’s customs authority to offse the worth impact of dumping that has been decided to be materially dangerous to domest producers.

Apparent Good Order

When freight seems to be free of harm after being assessed it’s stated to be in obvious good order.

APR—Additional Permissive Re-Exports

Export license exception APR authorizes re-exports of two classes: reexports from Country Group A:1 and Hong Kong; in addition to reexports to and amongst particular international locations as detailed in Part 740.16. Learn extra: What You Need to Know about Export License Exceptions.

Arbitration

A course of for resolving a dispute or a grievance outdoors the courtroom system by presenting it to an neutral third celebration or panel for a choice which will or will not be binding.

Arrival Notice

Notification offered by the service when a cargo has arrived to the consignee or notify celebration.

Assist

Materials, tooling, designs or sure different objects the customer gives to a overseas producer freed from cost or at a diminished price whose worth could must be added to the customs worth.

Astern

Means both “behind a ship” or “to maneuver a ship in reverse path.”

ATDNSHINC

Stands for Any Time, Day or Night, Sundays and Holidays Included, referring to when a vessel will function.

Athwartships

A path throughout the width of a ship.

Audit

An intensive examination of a enterprise’s processes to find out if the enterprise is compliant with a selected set of requirements. A authorities company could audit an organization’s processes or information as a part of an investigation associated to a possible compliance violation. In some industries, corporations should move periodic authorities audits to take care of their authorizations. Companies might also conduct inner audits (self-audit), or rent a 3rd celebration to audit their processes. The Bureau of Industry and Security (BIS), the export management arm of the U.S. Department of Commerce, recommends that U.S. exporters periodically self-audit to make sure compliance procedures are working correctly and are up-to-date with regulation modifications. Auditability refers back to the capability of an auditor to audit an auditee. Sloppy record-keeping lowers auditability. An audit path is a system (bodily or digital) that retains monitor of enterprise processes. See additionally: 4 Reasons to Audit Your Company’s Export Procedures.

Audit Trail

A system that shops and maintains information of enterprise processes. With regards to exporting, corporations are strongly inspired to take care of an audit path documenting their compliance screenings in an effort to reveal due diligence in case of an audit. Having an audit path could defend your organization from fines or penalties within the case of an export compliance violation.

Australia-United States Free Trade Agreement (AUSFTA)

A bilateral free commerce settlement between the United States and Australia that implements all kinds of commerce insurance policies designed to mutually profit each international locations. Modeled off of the North American Free Trade Agreement (NAFTA), the AUSFTA got here into impact on Jan. 1, 2005. One of the first objectives of this settlement is to extend market entry for Australian corporations exporting to the United States. 

Authorized Agent

A U.S. individual approved by a USPPI or FPPI to organize and file EEI or carry out different export-related actions on the principal celebration’s behalf. 

Automatic Identification System (AIS)

A satellite tv for pc system utilized by ships and vessel monitoring service (VTS) to establish and find ships.

AVS—Aircraft, Vessels, and Spacecraft

Export license exception AVS authorizes departure from the United States of overseas registry civil plane on short-term sojourn within the United States and of U.S. civil plane for short-term sojourn overseas; the export of apparatus and spare elements for everlasting use on a vessel or plane; exports to vessels or planes of U.S. or Canadian registry and U.S. or Canadian Airlines’ installations or brokers; the export or reexport of cargo that may transit Cuba on an plane or vessel on short-term sojourn; and the export of spacecraft and elements for basic analysis. Generally, no License Exception image is important for export clearance functions; nevertheless, when vital, the image ‘‘AVS’’ could also be used.

Backhaul

Cargo carried on a return journey.

BAG—Baggage

Export license exception BAG authorizes people leaving the United States both briefly (i.e., touring) or long run (i.e., shifting) and crew members of exporting or re-exporting carriers to take to any vacation spot, as private baggage, the lessons of commodities, software program and know-how described in Part 740.14. This half additionally lists particular provisions together with these associated to unaccompanied baggage (baggage that isn’t being transported on the identical service as the bags proprietor), software program, know-how, shotguns, and shotgun shells. Learn extra: What You Need to Know about Export License Exceptions.

Balloon Freight

Freight that’s low weight however excessive quantity (gentle however cumbersome).

Bank Draft

A monetary instrument offered by a financial institution and drawn on one other financial institution. See additionally: Understanding Bank Drafts: Sight Draft versus Time Draft.

Beam

The width of a ship.

Beneficiary

The celebration that receives fee.

Bilateral

A bilateral settlement is one through which each events agree to supply one thing for the opposite.

Bill of Lading

A doc issued by a service or their agent acknowledging receipt of cargo for cargo. Often abbreviated as BOL, BoL, B/L or BL. If there have been no points with the cargo acknowledged on the BOL, it’s stated to be a clear invoice of lading. See additionally: What Is a Bill of Lading: 3 Things You Need to Know.

Bill of Sale

A doc that confirms switch of products in alternate for cash.

Bill-To Party

The celebration paying for items or companies in a transaction.

BIS

The Bureau of Industry and Security, an company inside the U.S. Department of Commerce tasked with implementing the Export Administration Regulations (EAR).

Blocking or Bracing

Wood or metallic helps used to safe cargo whereas in transit. Also referred to as dunnage.

Block Stowage

Loading cargo shut collectively to reduce motion of products whereas in transit.

Bolster

A bit of apparatus connected to a chassis or railcar to safe the container.

Bond Port

The preliminary port of entry the place a vessel transporting items first arrives at a rustic.

Booking

Arrangements made with a service for the motion of cargo; area reservation.

Bow

The entrance of a vessel.

Broken Stowage

Empty area in a container not occupied by cargo.

Bulk Cargo

Cargo that’s shipped free versus being shipped in packages or containers. Grain and coal are examples of products often shipped as bulk cargo.

Bull Ring

A tool connected to the ground of a container which is used to safe cargo.

Cabotage

Transport of products between two locations in the identical nation by a transporter from one other nation.

CAFTA-DR

The Central America Free Trade Agreemen-Dominican Republic (CAFTA-DR) is a free commerce settlement between the United States and a number of other international locations, together with the Dominican Republic, in addition to the Central American nations Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The U.S. Senate accredited the CAFTA-DR on June 30, 2005. The settlement features a most favored nation (MFN) clause, which requires that service suppliers in a single nation will not be handled any much less favorably than suppliers in different international locations which are a part of the settlement. It additionally consists of provisions that defend corporations in member international locations from unfair funding practices, defend mental property rights and set up procedures for dispute decision.

Canada Customs Invoice

A Canada Customs Invoice is a particular sort of bill required for U.S. exports to Canada within the following conditions: 1.) The cargo is valued at over $2,500 CAD. 2.) The cargo isn’t labeled below HTSUS Chapter 9810. 3.) The cargo is topic to duties and gross sales taxes. See our article: What You Need to Know about the Canada Customs Invoice.

Cargo

Any items being transported, whatever the mode of transport.

Cargo Declaration

Information submitted previous to, upon arrival or upon departure of an global cargo required by a rustic’s customs authority.

Cargo Manifest

A doc detailing the cargo carried on a ship, typically offered to a customs authority.

CARICOM

An intergovernmental group of 15 Caribbean international locations whose objective is to advertise financial integration and cooperation between member states. The ensuing free commerce zone known as the Caribbean Common Market.

Carnet

A doc allowing the holder to briefly ship items to sure overseas international locations for show or demonstration functions with out having to pay duties. See additionally: What is an ATA Carnet?

Carrier

A service is a celebration that transports items for an additional individual or firm and is answerable for any attainable lack of or harm to the products throughout transport. A typical service gives transportation companies to the general public in return for compensation. A contract service gives this service below particular contracts, typically for presidency purchasers.

Cash in Advance

Payment from a overseas buyer to a U.S. exporter prior to really receiving the exporter’s merchandise. It is the least dangerous type of fee from the exporter’s perspective. See additionally, Methods of Payment in International Trade: Cash in Advance.

Cash on Delivery (COD)

The sale of products through which fee is made upon supply reasonably than prematurely.

CBP

Customs and Border Protection, a part of the Department of Homeland Security, is the company inside the U.S. authorities tasked with controlling the movement of individuals and items into and in a foreign country, and with implementing import and export rules.

CCC Mark

A label indicating cargo conforms to requirements established by the Chinese authorities.

CCD—Consumer Communications Devices

License exception CCD authorizes the export or re-export of commodities and software program to Cuba or Sudan topic to the necessities acknowledged in Part 740.19. Commodities which may be eligible for this license exception embody client computer systems, cellphones, televisions, radios and associated gear. Learn extra: What You Need to Know about Export License Exceptions.

CCL

The Commerce Control List is a listing of dual-use objects (objects which have each a industrial utility in addition to a possible army utility) printed as a part of the U.S. Department of Commerce’s Export Administration Regulations (EAR). Each merchandise on the CCL is recognized with an Export Control Classification Number (ECCN). Knowing the precise ECCN to your product performs a job in figuring out in the event you want an export license.

CE Mark

A label indicating cargo conforms to requirements established by the European Union.

Certificate of Conformity (CoC)

A doc issued by a licensed celebration that states {that a} specific product meets related requirements of high quality and efficiency. 

Certificate of Free Sale

This doc signifies a selected product is marketed within the United States or is eligible for export, and that the actual producer has no unresolved enforcement actions pending earlier than or taken by the U.S. Food and Drug Administration (FDA). It is usually used when exporting to international locations whose regulatory businesses aren’t as well-developed because the United States’ FDA.

Certificate of Inspection

A doc certifying that merchandise is in good situation instantly previous to being shipped.

 

Certificate of Origin (COO)

A doc certifying the place items had been initially made. A COO particular to a selected free commerce settlement could also be used to assert preferential obligation therapy. A generic certificates of origin could also be requested by the customs authority of the nation of import, through which case the COO have to be stamped by a chamber of commerce.

CFR (Cost and Freight)

CFR is an Incoterm for sea and inland waterway transport. Seller clears the products for export and delivers them when they’re on board the vessel on the port of cargo. Seller bears the price of freight to the named port of vacation spot. Buyer assumes all dangers for the products from the time the products have been delivered on board the vessel on the port of cargo.

CFR

The Code of Federal Regulations is the codification of guidelines and rules printed within the U.S. Federal Register.

Chamber of Commerce

An affiliation of companies which will serve a number of capabilities, together with advocating or lobbying for his or her member corporations, organizing business-related programming and occasions of their communities, and, maybe most related for exporters, offering doc certification companies. See additionally: The Chamber of Commerce and Export Documents: The Certificate of Origin.

Chamber Stamp

Certain paperwork (similar to certificates of origin) require a stamp from a U.S. chamber of commerce to be thought of legitimate. The technique of stamping the doc known as chamberization, and a doc that has acquired a chamber stamp is alleged to be chamberized.

Chapter Notes

Some elements of the Harmonized System (HS) nomenclature embody notes. These could also be divided into Section Notes, Chapter Notes and Subheading Notes. These notes maintain authorized weight as an integral a part of the HS. Not to be confused with Explanatory Notes. See our article: When Classifying Parts Using HTS Codes, Read the Notes!

Chassis

The base body of a wheeled car, used to safe a container previous to motion.

Chock

Material (typically wooden) positioned subsequent to cargo to stop extreme motion of the cargo throughout transit in an effort to keep away from harm.

CIF (Cost, Insurance and Freight)

CIF is an Incoterm for sea and inland waterway transport. Seller clears the products for export and delivers them when they’re on board the vessel on the port of cargo. Seller bears the price of freight and insurance coverage to the named port of vacation spot. The vendor is required to buy the minimal stage of insurance coverage below Clause C of the Institute Cargo Clauses. Buyer is answerable for all prices related to unloading the products on the named port of vacation spot and clearing items for import. Risk passes from vendor to purchaser as soon as the products are on board the vessel on the port of cargo.

CIP (Carriage and Insurance Paid To)

CIP is an Incoterm for any mode of transport. Seller clears the products for export and delivers them to the service or one other individual stipulated by the vendor at a named place of cargo, at which level threat transfers to the customer. Seller is answerable for the transportation prices related to delivering items and procuring insurance coverage protection to the named place.

CL

Abbreviation for carload or containerload.

Claim

In the context of logistics, a declare is a requirement made by a buyer to a transportation firm for fee in an effort to compensate for loss or harm of products.

CM and cm

CM (uppercase) stands for “cubic meters,” whereas cm (lowercase) stands for “centimeters.”

Code of Federal Regulations (CFR)

The codification of the overall and everlasting guidelines printed by the U.S. Office of the Federal Register; the place the place all U.S. federal rules are printed. 15 CFR (Title 15 of the CFR) is the part on Commerce and Foreign Trade.

Commerce Country Chart

Part of the Export Administration Regulations (EAR), which helps exporters decide if they should apply for an export license in an effort to ship a selected product to a selected nation.

Commercial Invoice

A basic doc for an global transaction with particulars together with what items are being shipped, who’s the shipper and who’s the final word consignee. Serves as the idea for all different paperwork associated to the cargo.

 

Commodity

Any industrial good that’s shipped.

Common legislation

Law that derives authority from precedent, customized and utilization reasonably than from statutes, significantly concerning the legal guidelines of the United States, the United Kingdom and international locations previously a part of the British Empire.

Compliance

In the context of global delivery, being compliant or sustaining compliance implies that the corporate in query is following all relevant legal guidelines and guidelines which govern their shipments. In this context, the extra particular phrases regulatory compliance or commerce compliance could also be used to distinguish from different makes use of of the time period, because the phrase compliance has different meanings in different contexts similar to within the fields of medication and psychology. A enterprise apply that goes towards particular legal guidelines is termed a compliance violation. See additionally: What to Do When You Encounter Export Violations.

Concealed Loss/Concealed Damage

Shortage of or harm to items shipped that isn’t instantly evident upon supply.

Confirming House

An organization based mostly abroad that acts as a overseas purchaser’s agent and locations confirmed orders with U.S. exporters. The confirming home ensures fee to the exporters.

Connecting Carrier

A service which acts as an middleman between two or extra different carriers.

Consignee

The individual or place to whom a cargo might be transferred. The final consignee is the ultimate recipient of the products, whereas an intermediate consignee takes possession of the products for a portion of the time that they’re in transit.

Consignment

A cargo of products to a consignee.

Consignor

Refers to the exporter or shipper from which the products originate. 

Consolidated Screening List (CSL)

A mixed U.S. authorities screening useful resource containing a number of export-control and sanctions lists. It would complement the present Denied Party Screening entry.

Consolidation

When cargo from a number of shippers is mixed in a single container.

Consul

A authorities official residing abroad who represents the pursuits of their residence nation.

Consular Invoice

A doc required by some international locations’ customs authorities that describes the cargo of products and reveals data just like the consignor, consignee and the worth of the cargo. These invoices are licensed by the consular official of the overseas nation stationed within the United States. These are sometimes obtained together with a certificate of origin stamped by a chamber of commerce.

Consumption Entry

When items are imported into the United States with none time or use restrictions. The official U.S. Customs and Border Protection (CBP) web site states that about 95% of all imports fall into this class.

Container

A truck trailer loaded with cargo that may be indifferent for loading onto a vessel or railcar. Different varieties of containers exist for various delivery wants. For instance, a container could also be ventilated, refrigerated, insulated, dehumidified or geared up with particular gadgets used to safe sure varieties of cargo. A container cargo is a big cargo, usually over 20,000 kilos.

Container Load

A load massive sufficient in quantity or weight to fill a container.

Container Manifest

A doc stating the contents of a container, its level of origin and level of vacation spot. Vessels could also be required by legislation to supply a manifest for each container being transported. 

Contraband

Prohibited cargo similar to unlawful medicine or unauthorized weapons.

Contract

A legally binding settlement between two or extra events.

Copyright

Protection granted to the authors and creators of literary, inventive, dramatic and musical works in addition to sound recordings and sure different mental works. A pc program, for instance, is taken into account a literary work within the United States and another international locations. See additionally, 10 Terms Exporters Should Know about Intellectual Property.

Countervailing Duties

Additional duties imposed by an importing nation to offset authorities subsidies in an exporting nation when the sponsored imports trigger materials damage to home business within the importing nation. See additionally, Anti-Dumping Duties and Countervailing Duties: An Overview.

Country of Origin

Where an merchandise was made, mined, grown, manufactured or considerably reworked. Most objects imported into the United States require a rustic of origin marking, also called C/O marking, apart from objects on the J-List (see J-List).

CPT (Carriage Paid To)

CPT is an Incoterm for any mode of transport. Seller clears the products for export and delivers them to the service or one other individual stipulated by the vendor at a named place of cargo. Seller is answerable for the global transportation prices related to delivering items to the named overseas place of vacation spot. The switch of threat, however, transfers from the vendor to the customer as quickly as the products are delivered to the global service. That means the customer assumes the danger of loading the products on the service and in the course of the global transport of the products.

C-TPAT

U.S. Customs and Border Protection established Customs-Trade Partnership Against Terrorism in November 2001 as a voluntary partnership to assist guarantee provide chain safety. Meeting C-TPAT requirements allows sooner processing by customs inspections and formalities.

Cu.

Abbreviation for “cubic” used when describing measurements of quantity.

Cube Out

Refers to when a container or vessel has reached its volumetric capability earlier than reaching its weight capability.

Customhouse

A authorities workplace the place duties are paid and import and export paperwork are filed.

Customs

A customs authority, or customs for brief, refers back to the company inside a authorities that’s answerable for accumulating duties and implementing import and export rules.

Customs-Bonded Warehouse

A warehouse approved by customs to obtain duty-free items.

Customs Broker

An particular person or group who helps a shipper navigate customs necessities.

Customs Clearance

The course of through which a customs authority assesses a cargo being imported of their nation in an effort to guarantee compliance with their nation’s import rules. A cargo that has been accredited by the customs authority and allowed to enter the commerce of their nation is alleged to have cleared customs.

Customs Declaration

A doc that historically accompanies exported items bearing data like the character of the products, their worth, the consignee, and their final vacation spot.

Customs Entry

Also referred to as Entry Summary or Form 7501, is a doc that gives U.S. Customs and Border Protection (CBP) with particulars a few cargo being imported into the United States, similar to worth, classification and origin. CBP makes use of the shape to calculate duties owed.

Customs Invoice

A doc required by a rustic’s customs authority, which serves the identical function as an ordinary industrial bill but in addition comprises extra data similar to a certificates of origin.

Customs of the Port (COP)

A phrase referring to native guidelines and practices which will influence a cargo.

Customs Value Only

Some shipments contain no precise financial transaction between the exporter and the final word consignee, similar to shipments for restore below guarantee, or shipments of things used for show at commerce reveals. These shipments are nonetheless topic to duties and taxes, and exporters should record the financial worth of the objects within the cargo on the customs bill to allow the customs authority within the nation of import to evaluate how a lot obligation the importer should pay. In these circumstances, the exporter ought to embody a customs worth solely assertion on the bill.

Cut-Off Time

The newest time cargo could also be delivered to a terminal for loading.

Dangerous Goods

A product could also be thought of a harmful good whether it is corrosive, flammable, toxic, poisonous, explosive, and many others. Shipping harmful items could require particular documentation or packaging to make sure security. See additionally: Hazardous Materials vs. Dangerous Goods: What’s the Difference

Dangerous Goods Declaration

A doc required when delivery harmful items (also called hazardous supplies or HazMat). There are two principal variations: the DG IATA form for air transport and the DG IMO form for inland and ocean transport. There is a 3rd model particularly for shipments of lithium batteries, which known as a Lithium Battery Declaration. See our article: What You Need to Know about Shipping Dangerous Goods.

DAP (Delivered at Place)

DAP is an Incoterm for any mode of transport. Seller clears the products for export and bears all dangers and prices related to delivering the products to the named overseas vacation spot not unloaded. DAP means the customer is answerable for all prices and dangers related to unloading the products and clearing customs to import the products into the named nation of vacation spot.

Date Draft

A doc used when the exporter extends credit score to the customer. It specifies a date when the fee is due reasonably than a time interval as with a Time Draft.

Destination Control Statement

A authorized assertion placed on an export bill that specifies that the products are to be transferred to the final word consignee and no different celebration. Diversion to different international locations or events with out prior authorization is a violation of U.S. legislation. Also referred to as an anti-diversion clause.

DDTC

Directorate of Defense Trade Controls (DDTC) is the federal government company inside the U.S. Department of State tasked with implementing the International Traffic in Arms Regulations (ITAR), which regulate the export of space- and defense-related merchandise.

D&H

Abbreviation for “harmful and dangerous” cargo.

DBA

Stands for “doing enterprise as,” used to specify that an organization is doing enterprise below a sure registered identify.

Direct Exporting

The sale by an exporter on to an importer positioned out of the country.

DDP (Delivered Duty Paid)

DDP is an Incoterm for any mode of transport. The vendor bears all dangers and prices related to delivering the products to the named place of vacation spot prepared for unloading and cleared for import.

Deconsolidation Point

Location the place cargo is separated in preparation for supply.

Deemed Export

Transmission of managed know-how, supply code or data to a overseas nationwide at residence or overseas. Export rules apply to deemed exports as effectively. See additionally: Deemed Exports: Exporting Without Shipping a Product.

Delivery Receipt

A doc signed and dated by a consignee or their approved agent confirming receipt of products and stating the situation of the products upon supply.

Demurrage/Detention

Demurrage is a cost to be paid by a shipper or consignee to the service as penalty for delaying the service’s cargo past the allowed free time. Detention is similar as demurrage besides that as a substitute of making use of to delays in cargo, detention applies to delays in gear.

Denied Party Screening

Also referred to as restricted celebration screening or commerce celebration screening, denied celebration screening is the method of screening potential prospects, companions or distributors towards denied celebration lists. These are lists of people or organizations {that a} authorities has recognized as events that one can’t do enterprise with and that one could also be penalized for doing enterprise with. See additionally: Export Compliance: Understanding Restricted Party Screening.

Destination Control Statement

A authorized assertion placed on a delivery doc that specifies that the products are to be transferred to the final word consignee and no different celebration. Diversion to different international locations or events with out prior authorization is a violation of U.S. legislation. See additionally: What Is the Destination Control Statement and Why Should It Be on Your Commercial Invoice?

Discrepancy

When paperwork offered don’t conform to the necessities of the letter of credit score. Banks is not going to settle for letters of credit score which have discrepancies.

Distribution Center

A location created for circulation of merchandise into a selected market. This could or will not be part of the identical firm that makes use of it to maneuver their merchandise to market. An organization that focuses on distributing different corporations’ merchandise known as a distributor. See our article: Sealing the Deal: Selecting the Right Distributor for Your Exports.

Distributor

A service provider abroad who purchases items from a U.S. exporter and resells them for a revenue. The overseas distributor usually gives help and repair for the product, relieving the U.S. exporter of those tasks.

Diversion

Diversion refers both to 1) a change made to the route of a cargo or to the route of all the vessel or 2) the switch of products from the supposed end-user to another celebration.

Dock

For street transportation, a platform from which vehicles are loaded and unloaded. For sea transportation, a cargo dealing with space adjoining to the shoreline the place a ship ties up.

Dock Receipt

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

Documentary Collection

A fee technique through which the exporter’s financial institution forwards paperwork to the importer’s financial institution with directions to launch them in alternate for fee or acceptance.

Documentary Letter of Credit

A doc used to guard the pursuits of each purchaser and vendor. A letter of credit score requires that fee be made on the presentation of specified paperwork to a lender conveying the title and indicating the particular steps have been taken. See additionally, Methods of Payment in International Trade: Letters of Credit.

DOT

U.S. Department of Transportation, a U.S. company inside the govt department that oversees transportation within the U.S.

DPU (Delivered at Place Unloaded)

DPU is an Incoterm for any mode of transport. Previously named Delivered at Terminal (DAT), this Incoterm has been renamed Delivered at Place Unloaded (DPU) as a result of the customer and/or vendor might want the supply of products to happen someplace apart from a terminal. DPU is similar to DAP besides that the vendor should pay for unlading the products. Like DAP, the vendor clears the products for export and bears all dangers and prices related to delivering the products to the named place, which generally is a port or different named location within the overseas vacation spot. Buyer is answerable for all prices and dangers from this level ahead together with clearing the products for import on the named nation of vacation spot.

Drawback

A partial refund of an import price, often given if items are re-exported from the nation that collected the price.

Drayage

Transport of products over a brief distance. Some definitions specify that drayage is the transport of products through which each the journey origin and vacation spot are inside the similar city space. Also referred to as cartage.

Drop Shipping

A type of retail enterprise through which the vendor takes orders from prospects however doesn’t maintain the objects in inventory. Instead, it passes on the order to a producer, wholesaler, one other retailer or a achievement home that ships the order on to the shopper.

Due Diligence

An organization that makes a very good religion effort to adjust to all related guidelines and rules that apply to them is alleged to be training due diligence. If you might be discovered to be out of compliance with a selected regulation, demonstration of due diligence generally is a mitigating issue towards dealing with fines or penalties. This is an integral a part of establishing a proper Export Compliance Program (ECP).

Dumping

Importing items into a rustic at a value lower than the truthful market worth.

Dutiable Value

The quantity on which a customs obligation is calculated.

Duties

Taxes collected on importing and exporting items. Also referred to as tariffs.

EAR

The Export Administration Regulations are printed by the U.S. Department of Commerce and regulate exports of dual-use objects, which means objects which have each a industrial use in addition to a possible army utility.

E-Commerce

Buying and promoting over the web.

ECCN

Export Control Classification Numbers are alphanumeric codes used to establish dual-use objects, which means objects which have each a industrial use in addition to a possible army utility. Knowing the precise ECCN to your product performs a job in figuring out in the event you want an export license.

eCO

An digital Certificate of Origin is a digital doc issued by a registered chamber of commerce to an exporter. Certificates of origin are a standard customs doc required by many international locations and as a part of numerous free commerce agreements. An eCO is licensed by a chamber of commerce electronically, which allows the certification course of to happen extra effectively and at decrease price. Shipping Solutions has partnered with the American World Trade Chamber of Commerce (AWTCC) to supply the Shipping Solutions eCO Portal. 

EEI

Electronic export data is the information that exporters should report back to the Automated Export System (AES) by way of the Automated Commercial Environment (ACE) on-line net portal. See additionally: Who is Responsible for Filing the Electronic Export Information (EEI)?

Electronic Data Interchange (EDI)

The digital transmission of enterprise paperwork similar to invoices, buy orders and payments of lading.

Embargoes

Sanctions are prohibitions designed to guard financial or nationwide safety and will embody commerce boundaries, tariffs and restrictions on monetary transactions. Embargoes are comparable however often seek advice from extra extreme restrictions similar to journey bans or blockades.

Eminent Domain

The energy of a sovereign authorities to take property for a vital public use.

Empty Repo

Stands for empty repositioning; refers back to the motion of empty containers.

ENC—Encryption Commodities, Software, and Technology

Part 740.17 explains standards associated to the exportation of encryption commodities, software program and know-how which will allow an exporter to assert export license exception ENC. Supplement No. 3 to Part 740 lists “ENC Favorable Countries,” international locations for which sure phrases of this license exception could apply. Learn extra: What You Need to Know about Export License Exceptions.

End Use

The function for which an exported merchandise will in the end be used. End use can have an effect on licensing necessities even when the product, vacation spot and buyer initially seem permissible.

End-User

The final recipient of a cargo. Generally synonymous with final consignee. This could also be completely different from the celebration being billed for the cargo.

Endorsement

A authorized signature that alerts switch of rights from one celebration to a different.

Entity List

A BIS record of overseas individuals topic to particular export, reexport and in-country switch licensing necessities. 

Entry

In the context of importing, an entry is an official assertion made to Customs concerning particulars of a cargo coming into the nation. It is often accomplished by a customs dealer performing on behalf of the importer.

Equipment Interchange Receipt (EIR)

A doc used when transferring a container from one service to a different, or from one terminal to a different.

ERP

Enterprise useful resource planning (ERP) software program helps corporations with order-processing and accounting. Some ERP techniques embody global delivery or commerce compliance modules, however these are sometimes restricted of their performance. See additionally: 6 Reasons Exporters are Frustrated with Their ERP’s Export Module.

ETA, ETC, ETD, ETR, ETS

Estimated time of arrival, completion, departure, readiness or crusing.

Exception

A supply through which the driving force or recipient notes an issue on the supply receipt earlier than signing is known as an exception. An exception is often associated to scarcity or harm of products.

Exclusive Use

A shipper could pay a premium charge to acquire unique use of a trailer. This means the container will solely be stuffed with the shipper’s items and never these of some other celebration, even when there may be extra area on the trailer.

Explanatory Notes

The official interpretation of the Harmonized System (HS) on the global stage, the Explanatory Notes are printed by the World Customs Organization and supply a commentary on the scope of every heading, offering a listing of merchandise included or excluded, with technical descriptions of the objects and steering for his or her identification. Not to be confused with Chapter Notes.

Export

Shipment of products out of a rustic. Opposite of import.

Export Compliance Program (ECP)

An organization’s written set of procedures for guaranteeing compliance when exporting. See additionally: Your Company Needs an Export Compliance Program.

Export Controls/Import Controls

Refers to licenses, permits and different authorizations which may be required from a authorities to legally export or import one thing.

Export Documentation Software

A software program device utilized by an organization to make sure consistency, effectivity and auditability of their export documentation and compliance course of, similar to Shipping Solutions.

Export-Import Bank of the United States (EXIM Bank)

A U.S. authorities group that gives export finance merchandise to U.S. exporters and overseas consumers of U.S. merchandise.

 

Export License

A government-issued allow that authorizes a shipper to export a sure good or to export to a sure nation or celebration. Download the free whitepaper: How to Determine if You Need an Export License.

Export Management Company

Exporting corporations with out their very own export division typically outsource their export operations to an export administration firm (EMC).

Export Quotas

Specific restrictions or ceiling imposed by an exporting coun attempt on the worth of quantity of sure exports usually designed to guard home producers and customers from short-term shortages of products or to bolster their value in international stage trading floors.

Export Subsidies

Government penalities or different financially quantifiable advantages offered to home producers or exporters contingent on the export of their items and companies.

Export Trading Company

An organization that acts as an unbiased distributor and hyperlinks home producters with overseas consumers. They decide what U.S. merchandise are desired in a given market after which work with U.S. producers to fulfill the demand.

EXW (ExWorks)

EXW is an Incoterm for any mode of transport. The vendor fulfills its obligations by having the products accessible for the customer to select up at its premises or one other named place (i.e. manufacturing unit, warehouse, and many others.) on a date agreed upon by each events or inside an agreed-upon timeframe. The vendor wants to supply the customer the knowledge they should take supply of the products at the moment. With Ex Works, the customer bears all threat and prices beginning when the products are made accessible to the customer on the vendor’s location or different named place till the merchandise are delivered to its location. Seller has no obligation to load the products or clear them for export.

FAK

Abbreviation for “freight all types.” Typically refers to a full container loaded with combined cargo.

False Billing

Misrepresenting freight data on delivery paperwork.

FAS (Free Alongside Ship)

FAS is an Incoterm for sea and inland waterway transport. Seller clears the products for export and delivers them when they’re positioned alongside the vessel on the named port of cargo. Buyer assumes all dangers/prices for items from this level ahead.

FCA (Free Carrier)

FCA is an Incoterm for any mode of transport. The vendor is answerable for both making the products accessible at its personal premises or at a named place. In both case, the vendor is answerable for loading the products on the customer’s transport and is answerable for supply to the port and export clearance together with safety necessities. Risk transfers as soon as the products are loaded on the customer’s transport.

Federal Maritime Commission (FMC)

The company inside the U.S. federal authorities tasked with implementing legal guidelines associated to move of products by sea.

Federal Register

The Federal Register, typically abbreviated as Fed. Reg., FedReg, or FR, is the official journal of the U.S. authorities the place new guidelines and rules are printed.

FEU (Forty-Foot Equivalent Unit)

A typical 40-foot delivery container, measuring roughly 40 toes lengthy, 8 toes large and eight.1 toes excessive. One commonplace FEU can maintain 22 to 23 pallets. The container can carry roughly 58,930 kilos, relying on the delivery line’s limitations. One FEU has the capability of two TEUs.   

FOB (Free on Board)

FOB is an Incoterm for sea and inland waterway transport. Seller clears the products for export and delivers them when they’re on board the vessel on the named port of cargo. Buyer assumes all dangers and prices for items from this second ahead.

Force Majeure

A typical clause included in contracts that exempts events for not fulfilling their obligations because of occasions past their management, similar to pure disasters or conflict.

Fore and Aft

The path on a ship parallel to the middle line.

Foreign Agricultural Service (FAS)

A U.S. Department of Agriculture bureau with applications associated to market improvement, global commerce agreements and negotiations, and the gathering of statistics and market data.

Foreign Corrupt Practices Act (FCPA)

An act making it illegal for individuals or corporations topic to U.S. jurisdiction to supply, pay or promise to pay cash or something of worth to any overseas official for the aim of acquiring or retaining enterprise. See additionally, The Foreign Corrupt Practices Act (FCPA).

Foreign Trade Zone

Areas the place commodities might be manufactured, modified or saved below particular customs rules and customarily not topic to customs duties. May be abbreviated FTZ and typically referred to as a free commerce zone or free port. See additionally: Foreign Trade Zones: Advantages for Importers and Exporters.

FPPI

Foreign principal party of interest is the celebration to whom closing supply of the products might be made, usually the overseas purchaser.

Free Time

The period of time {that a} service’s gear could also be used with out incurring extra prices.

Freight

Any product(s) being transported.

Freight Broker

An individual who arranges transportation on behalf of a shipper. Typically a freight dealer will join small shippers to carriers who can transfer their items.

Freight Forwarder

An organization that arranges the transportation of products on behalf of a shipper. A freight forwarder could have its personal in-house carriers or could contract with exterior carriers. Freight forwarders typically specialise in consolidating LTL freight from a number of shippers.

FTA

Free commerce agreements are made between international locations in an effort to cut back boundaries to commerce between the taking part international locations. They often contain decreasing of obligation charges for shipments between taking part international locations, however might also embody provisions for mental property rights, environmental safety, dispute decision and extra.

FTR

The Foreign Trade Regulations (FTR) are a set of rules positioned on global commerce within the U.S. They are established and up to date by the U.S. Census Bureau. It is within the FTR that the requirement to file the Electronic Export Information (EEI) by the Automated Export System (AES) might be discovered. See additionally: Why Is the Census Bureau Monitoring Your Exports?

Full Truckload (FTL)

A full truckload service is a service that contracts the whole thing of a truck’s carrying capability to a single buyer. Often known as a truckload service.

GBS—Shipments to Country Group B Countries

Export license exception GBS authorizes exports and re-exports to Country Group B (see Supplement No. 1 to half 740) of these commodities the place the Commerce Country Chart signifies a license requirement to the final word vacation spot solely for motive National Security (NS) and recognized by “GBS—Yes” on the CCL. See Part 743.1 of the EAR for reporting necessities for exports of sure commodities below License Exception GBS. Learn extra: What You Need to Know about Export License Exceptions.

General Agreement on Tariffs and Trade (GATT)

A authorized settlement between many international locations which promoted global commerce by eliminating commerce boundaries similar to tariffs and quotas. It was succeeded by the World Trade Organization (WTO) in 1995, with the unique GATT textual content remaining a part of the WTO framework.

General Order

When U.S. Customs and Border Protection (CBP) orders shipments with out entries to be saved of their custody.

GFT—Gift Parcels and Humanitarian Donations

The provisions of export license exception GFT are defined in Part 740.12 and authorize exports and reexports of reward parcels by a person (donor) addressed to a person, or a non secular, charitable or academic group (donee) positioned in any vacation spot for the usage of the donee or the donee’s fast household (and never for resale).

The reward parcel have to be offered freed from cost to the donee. However, fee by the donee of any dealing with prices or of any charges levied by the importing nation (e.g., import duties, taxes, and many others.) isn’t thought of to be a value to the donee for functions of this definition of reward parcel. Learn extra: What You Need to Know about Export License Exceptions.

GOV—Governments, International Organizations, International Inspections Under the Chemical Weapons Convention, and the International Space Station

Export license exception GOV authorizes exports and re-exports to U.S. authorities businesses in addition to exports and re-exports associated to the United States’ participation in global treaties and agreements. It is defined in Part 740.11, which is split into 5 sections:

1. International Safeguards
2. United States Government
3. Cooperating Governments and the North Atlantic Treaty Organization
4. International Inspections Under the Chemical Weapons Convention (CWC)
5. International Space Station (ISS)

Learn extra: What You Need to Know about Export License Exceptions.

Gross Domestic Product (GDP)

The whole worth of all items and companies produced by a rustic.

Gross Vehicle Weight (GVW)

The whole weight of a car together with the load of the car itself and any connected containers.

Harbor

A spot the place ships cease to resupply and cargo or unload cargo.

Harbor Master

An official answerable for overseeing harbor operations.

Hatch

The opening on the deck of a ship that provides entry to the cargo maintain.

Hazardous Materials (HazMat)

May be used interchangeably with the time period “harmful items,” hazardous supplies are items which will pose a risk to security as a result of they’re toxic, poisonous, corrosive, explosive, flammable, and many others. More exactly, hazardous supplies are outlined by the U.S. Department of Transportation in accordance with the Federal Hazardous Material Law. It is extra frequent to see the time period “hazardous supplies” used when delivery domestically inside the U.S., whereas the time period “harmful items” is used extra typically when delivery internationally. Shipping hazardous supplies could require particular documentation or packaging to make sure security.

High Bandwidth Memory (HBM)

Effective on December 2, 2024, BIS positioned new controls on high-bandwidth reminiscence models below 3A090.c. At the identical time, it created this new license exception to permit for the export of sure much less superior high-bandwidth reminiscence models so long as the circumstances laid out in Party 740.25 of the EAR are met. Learn extra: What You Need to Know about Export License Exceptions.

HMF

Harbor upkeep price. See additionally: A Case of HaruMpF and MumPF.

House Bill of Lading

A home invoice of lading (HBL) is a doc issued by a freight forwarder or a non-vessel working firm (NVOCC) to a shipper to acknowledge receipt of their objects for cargo. In different phrases, it is a receipt for the products. This is completely different from the Master Bill of Lading, which is issued by the service and is a contract of carriage for the products.

HS

The Harmonized System is an internationally accepted system used to categorise merchandise. The first six digits of an HS code are common throughout all international locations, however every nation will add extra digits to additional specify merchandise. HS codes play a job in figuring out import and export controls in addition to obligation charges. The code for a selected product is usually referred to as its tariff classification, as is the method for locating the precise code.

HTSUS

The Harmonized Tariff Schedule of the United States is a classification system used for importing into the United States. It relies on the internationally acknowledged Harmonized System (HS).

IEC: Implemented Export Controls

Effective on September 6, 2024, BIS carried out export controls on a number of semiconductor, quantum and additive manufacturing objects for nationwide safety and overseas coverage causes. This rule provides new Export Control Classification Numbers (ECCNs) to the Commerce Control List, revises present ECCNs and provides a brand new license exception—Implemented Export Controls (IEC)—to authorize exports and reexports to and by international locations which have carried out equal technical controls for these newly added objects. This IEC chart lists eligible items and locations. Learn extra: What You Need to Know about Export License Exceptions.

IMDG

International Maritime Dangerous Goods code; the rules established by the International Maritime Organization (IMO) for the global transport of harmful items.

Import

Shipment of products into a rustic. Opposite of export.

Import Declaration

Information submitted by an importer or their agent to their nation’s customs authority earlier than or upon importation of products, such because the contact particulars of the importer, how the products are being transported and the tariff classifications and values of the objects on the cargo.

Importer of Record (IOR)

The celebration answerable for making entry, offering correct import data, paying relevant duties and assembly U.S. customs necessities. 

Import License

A government-issued allow authorizing a celebration to import a very good into the nation.

In Bond

An import or export cargo that has not but cleared customs is known as in bond.

Incoterms

Incoterms are common commerce phrases printed by the International Chamber of Commerce (ICC.) They encompass three-letter codes which are supposed to obviously talk the duties, prices and dangers related to the transportation and supply of products in an global transaction. They describe how duty is allotted between the vendor and the customer for various elements of the transaction. Download the free Incoterms 2020 Chart of Responsibilities and Transfer of Risk.

Indirect Exporting

A sale by an exporter to the customer by a domestically positioned middleman, similar to an export administration firm or an export buying and selling firm.

Inspection Certificate

A doc required by some purchasers and international locations to attest to the specs of the products shipped. The inspection is often carried out by a 3rd celebration.

Insurance Certificate

A doc ready by the exporter or freight forwarder as proof that insurance coverage towards loss or harm has been obtained for the products.

Intellectual Property (IP)

The collective time period used to seek advice from new concepts, innovations, designs, writings, movies and so forth which are protected by copyright, patent or trademark. See additionally, 10 Terms Exporters Should Know about Intellectual Property.

Interchange Point

A location the place freight is transferred from one service to a different.

Intermediate Bulk Container

Also generally often known as a tote, IBC tote or IBC tank, IBC totes can be utilized to ship liquids, pastes, semi-solids and solids. They are utilized in a number of industries and functions, together with agriculture, building, industrial lubricants, accumulating rainwater and lots of others. The two most typical totes are the composite 275-gallon and 330-gallon tanks product of a high-density polyethylene (HDPE) internal liner, surrounded by a galvanized metal cage. They take up an analogous footprint to an ordinary pallet of 48” L x 40” W x 46” H.

Intermodal

Intermodal transportation is the motion of products by way of multiple sort of transportation (e.g. air, rail, sea, truck, and many others.). An intermodal container is one which can be utilized in numerous modes of transport with out having to unload the products and reload them at every level at which the mode of transport modifications. In the context of global commerce, intermodal container is often synonymous with container. 

Internal Transaction Number (ITN)

The affirmation quantity AES points after accepting an Electronic Export Information submitting. It serves as proof of submitting and should seem on sure export paperwork. 

International Chamber of Commerce (ICC)

The ICC performs a job in rule setting, dispute decision, and coverage advocacy in global commerce, supporting the commerce objectives of the United Nations and the World Trade Organization. 

International Trade Administration (ITA)

A U.S. Department of Commerce bureau answerable for export promotion applications.

Inward Foreign Manifest (IFM)

A doc itemizing all cargo coming into a rustic. Required by all international stage ports and is the first supply from which import duties are assigned.

ISPM 15

International Standards for Phytosanitary Measures No. 15 (ISPM 15) is an global environmental commonplace for treating wooden packaging supplies (WPM) in an effort to curb the unfold of plant pests. Under the ISPM 15 guidelines, all wooden packaging supplies similar to pallets, crates and bins have to be debarked, then warmth handled or fumigated to remove bugs or ailments which might be dangerous to ecosystems. The United States Department of Agriculture (USDA) adopted this commonplace in September 2005.

ITAR

The International Traffic in Arms Regulations regulate the export of space- or defense-related merchandise and are enforced by the U.S. Department of State. See additionally: Understanding ITAR: The International Traffic in Arms Regulations.

JIT

Abbreviation for “simply in time.” A technique of stock management which minimizes warehousing and through which the container itself acts as a movable warehouse and arriving on schedule is essential.

J-List

Found in 19 CFR 134.33, the J-List is a listing of things exempt from nation of origin marking necessities when importing into the United States. Items on the J-list are often exempt as a result of they’re both incapable of being marked (e.g. liquids) or marking them is impractical (e.g. superb artwork).

Laden

Loaded aboard a vessel.

Landed Cost

The whole price of an global cargo, discovered by including the worth paid by the customer to the vendor, delivery prices, cargo insurance coverage and all relevant import duties and costs.

Less-than-Truckload, Less-than-Load (LTL)

A medium cargo, usually between 150 kilos and 20,000 kilos. An LTL service mixes freight from a number of prospects in a single truckload. May even be referred to as less-than-container (LCL).

Letter of Credit

Often abbreviated as LC or L/C, a letter of credit score is a written dedication by a financial institution issued after a request by an importer that fee might be made to an exporter offered that the phrases of the letter of credit score have been met as evidenced by the presentation of sure paperwork. See additionally: What’s a Letter of Credit? (Infographic).

License Exception

Certain standards could also be met that permit an exporter to export a product with out an export license in circumstances the place an export license would usually be required. These standards are referred to as license exceptions. See additionally: What You Need to Know about Export License Exceptions.

Licensing

An association through which an organization sells the rights to make use of its services or products however retains some management.

Liquidated Damages

The penalty a vendor should pay the customer if a undertaking doesn’t meet the requirements or deadline outlined within the gross sales contract.

Liquidation

In the context of importing, liquidation is the method through which the customs authority finalizes its overview of an entry and calculates the precise duties owed.

List

The quantity {that a} vessel tilts from the vertical, measured in levels.

Logistics

The administration of the movement of merchandise as they’re transported from the purpose of origin to their closing vacation spot. A logistics firm is a normal time period for a corporation that gives logistics companies, which can embody freight forwarding, customs brokerage and/or consulting companies.

Longshoreman

A port worker tasked with loading and unloading ships.

LPP—Low Processing Performance

This low quantity export license exception permits restricted quantities of compute to movement globally, besides to arms-embargoed international locations. Learn extra: What You Need to Know about Export License Exceptions.

LVS—Shipments of Limited Value

Each ECCN that lists the LVS export license exception additionally lists a corresponding worth restrict distinctive to that ECCN below its entry within the Commerce Control List. The LVS standards are easy: if the worth of the products on a single order listed below a single ECCN doesn’t exceed the LVS restrict listed below that ECCN’s entry within the CCL, the export is eligible for this License Exception. Learn extra: What You Need to Know about Export License Exceptions.

Malpractice

In the context of delivery, malpractice refers to conditions through which a service illegally provides choice to a buyer in an effort to appeal to their enterprise.

Maritime

Relating to move by sea.

Marking

Letters, numbers or different symbols positioned on packaging used for identification functions.

Master Bill of Lading

A invoice of lading issued by a service to a freight forwarder acknowledging receipt of container for cargo. This is completely different from a home invoice of lading which is issued by a freight forwarder to a shipper, acknowledging receipt of their objects for cargo.

MED—Medical Devices

Export license exception MED permits the export, re-export or switch of “medical gadgets” designated as EAR99 to or inside Russia, Belarus, Crimea, and sure lined areas in Ukraine. This exception consists of elements, elements, equipment and attachments to be used with these gadgets, offered this stuff are additionally EAR99-designated and meet extra particular circumstances. The MED exception ensures that crucial medical gear can attain areas the place it could be urgently wanted. See 740.23 for extra particulars. Learn extra: What You Need to Know about Export License Exceptions.

Most Favored Nation (MFN)

A standing accorded by one nationwide authorities to a different within the context of global enterprise. A rustic with MFN standing will not be handled much less favorably in global transactions than some other nation with MFN standing. 

MPF

Merchandise processing price. See additionally: A Case of HaruMpF and MumPF.

Multimodal

See intermodal.

NAC/ACA—Notified Advanced Computing and Advanced Computing Authorized

Export license exceptions NAC and ACA facilitate exports, re-exports and in-country transfers of sure superior computing objects labeled below particular ECCNs within the CCL. These ECCNs usually cowl high-performance computing gear, similar to microprocessors and microcontrollers, pc techniques and encryption gear. 

License Exception NAC authorizes the export and re-export of eligible objects to Macau and locations in Country Group D:5, in addition to to entities headquartered in or with a guardian in these locations, topic to particular standards. License Exception ACA permits exports, reexports, and in-country transfers of this stuff to locations inside Country Groups D:1 and D:4, with exclusions for Macau and D:5 locations. To use NAC or ACA, exporters should usually safe a written buy order. Learn extra: What You Need to Know about Export License Exceptions.

NAFTA

The North American Free Trade Agreement was established in 1994 to harmonize commerce between the United States, Canada and Mexico. Companies positioned in these international locations could also be eligible for diminished obligation charges when importing if their items qualify below the phrases of NAFTA. NAFTA was changed on July 1, 2020, by the United States-Mexico-Canada Agreement (USMCA).

NCBFAA

The National Customs Brokers and Forwarders Association of America is a company representing the pursuits of customs brokers and freight forwarders within the U.S. They publish tips on finest practices, together with particular tips on how you can create a shipper’s letter of instruction (SLI) when authorizing freight forwarders to file by the Automated Export System (AES) on behalf of the exporter.

NEC, NES

Not elsewhere labeled, not elsewhere specified.

Negotiable/Non-Negotiable

A negotiable instrument is a doc that may be transferred from its unique holder to a 3rd celebration. A non-negotiable doc can’t be transferred to a different celebration. An inland or ocean invoice of lading could also be both negotiable or non-negotiable; a invoice of lading consigned “to order” or “to order of shipper” is negotiable as soon as it’s endorsed on the again by the shipper or their consultant. Air waybills are all the time non-negotiable. See additionally: What Is a Bill of Lading: 3 Things You Need to Know.

Net Weight

The weight of products not together with the load of their packaging.

NLR—No License Required

A designation used when an EAR-controlled transaction doesn’t require an export license after the exporter evaluates the product classification, vacation spot, finish consumer and finish use.

Non-Dumping Certificate

Required by some international locations to make sure safety towards dumping of sure merchandise.

NVOCC

A non-vessel working frequent service behaves like a service besides it doesn’t present the precise transportation service itself. Instead, a NVOCC buys area from carriers and sells this area to shippers.

Ocean Bill of Lading

The ocean invoice of lading serves as each a contract for carriage and a doc of title for the cargo. The invoice of lading identifies the events on each ends of the cargo, in addition to an outline of the products and routing directions.

Office of the U.S. Trade Representative

A U.S. authorities company answerable for negotiating commerce agreements.

On Board

A notation on a invoice of lading indicating that cargo has been loaded on a ship.

On Deck

A notation on a invoice of lading indicating that cargo has been stowed on the open deck of a ship.

Open Account

A transaction through which items are shipped to a overseas purchaser with out assure of fee.

Operating Ratio

A measure of working effectivity based mostly on a comparability between a service’s working bills and its web gross sales.

Origin

Can imply 1) location the place a cargo begins its journey, or 2) nation the place items had been initially manufactured.

Overage

When the variety of models acquired is bigger than the amount acknowledged on the export paperwork. Opposite of scarcity.

Packing List

A typical doc that accompanies a cargo. Also referred to as a packing slip, this doc lists the merchandise on a cargo together with packaging data however doesn’t embody costs. See additionally: The Importance of an Export Packing List for Your International Shipments.

 

Pallet

A platform on which packages could also be loaded. Facilitates simpler dealing with by a raise truck.

Panama-United States Trade Promotion Agreement

The free commerce settlement between the United States and Panama that got here into impact in October 2012. It is designed to remove obstacles to commerce between the 2 international locations and is notable for being the United States’ solely bilateral free commerce settlement with a Central American nation.

Parcel/Package/Small Parcel/Small Package

A small cargo, usually lower than 150 kilos.

Patent

A proper that entitles the patent holder, inside the nation that granted or acknowledges the patent, to stop all others, for a set time period, from utilizing, making or promoting the subject material of the patent. See additionally, 10 Terms Exporters Should Know about Intellectual Property.

Payee

The celebration paid in a transaction; the vendor.

Payer

The celebration paying cash in a transaction; the customer.

Payment Terms

Terms that describe how cash might be paid in a transaction. Typically, the shipper is answerable for fee for pay as you go shipments, whereas the consignee is answerable for fee for acquire shipments, until a 3rd celebration is indicated because the payor on the delivery paperwork.

Phytosanitary Inspection Certificate

A doc issued by the U.S. Department of Agriculture certifying {that a} cargo has been inspected and is free from dangerous pests and plant ailments. Used to fulfill import necessities of different international locations.

Pier

A construction perpendicular to the shoreline to which a ship is secured in an effort to load or unload cargo.

Place of Delivery

Location the place cargo leaves the custody of a service.

Place of Receipt

Location the place cargo enters the custody of a service.

POD

Abbreviation for 1) port of discharge, 2) port of vacation spot, or 3) proof of supply, a doc offered by the service required to obtain fee.

Point of Origin

The location the place a cargo is transferred from a shipper to a service.

POL

Abbreviation for 1) port of loading or 2) petroleum, oil and lubricants.

Political Risk

The probability that political forces will trigger drastic modifications in a rustic’s enterprise surroundings that adversely have an effect on the revenue and different objectives of a enterprise enterprise. This could embody political violence, expropriation, confiscation and domestication (typically referred to as nationalization). See additionally: Why Managing Political Risk Is Critical for Exporters

Port

May seek advice from 1) a harbor with piers or docks, 2) the left facet of a ship (when dealing with ahead, reverse of starboard), or 3) a gap within the facet of a ship used for dealing with freight.

Port of Call

Port the place a ship discharges or receives site visitors.

Port of Entry

Port the place cargo is unloaded and enters a rustic.

Port of Exit

Port the place cargo is loaded and leaves a rustic.

PPI

Principal celebration of curiosity. See FPPI and USPPI.

Prepaid

Freight prices paid by a shipper previous to launch of payments of lading by the service.

Product Classification

In the context of global commerce, there are a lot of classification techniques that allocate particular numeric or alphanumeric codes to specific classes of merchandise, together with the Harmonized System (HS) and derivatives of the HS similar to Schedule B and the U.S. Harmonized Tariff Schedule (HTS), in addition to Export Control Classification Numbers (ECCNs) and United States Munitions List (USML) classes. Knowing the proper classifications of the merchandise you export is vital for customs clearance and figuring out in the event you want an export license. Also referred to as commodity classification. (Download our free whitepaper Classifying Your Products for International Trade).

Proforma Invoice

A doc that acts as a proper quote, produced by the vendor and given to the potential purchaser earlier than a transaction is finalized. See additionally: How Does the Proforma Invoice Fit in the Sales Process?

Quarantine

A restriction positioned on an operation in an effort to defend public well being and security.

Quota

The amount of products which may be imported with out restrictions over a set time period.

Quotation

Usually referred to as a quote, a proposal to promote items at a acknowledged value below acknowledged circumstances.

Rate Basis

The components of particular elements that play a job in figuring out freight charges.

Reasons for Control

Specific causes outlined within the U.S. Export Administration Regulations that denote why an exporter would wish to use for an export license. Examples embody National Security (NS) and Regional Stability (RS). These exist each on the nation stage and on the Export Control Classification Number (ECCN) stage. In order for a motive for management to use to a cargo, it have to be listed at each the nation stage and ECCN stage. See our article: Export Administration Regulations: Understanding Reasons for Control.

RFP, RFQ

Request for proposal, request for citation.

Reasonableness

Under ICC and customary legislation, the requirement {that a} freight charge not be larger than what is important to reimburse the service and permit a good revenue.

Regional Value Content (RVC)

A way used to find out whether or not a product meets a rule of origin. See additionally, Trade Agreements—FTAs, TPAs, Unilateral, Bilateral, Multilateral: How Do They Differ?

Relay

The switch of containers from one ship to a different when each ships are managed by the identical service.

Remittance

Funds despatched by one individual to a different as fee.

Revenue

Payment acquired by a service for transporting items.

RFF—Restricted Fabrication Facility

Effective on December 2, 2024, BIS carried out export controls designed to impair China’s manufacturing of superior semiconductors and different objects that can be utilized in superior weapon techniques, AI and superior computing in help of China’s military-civilian fusion program. At the identical time, this rule creates export license exception RFF to permit sure services of entities on the Entity List to proceed to obtain sure legacy semiconductor manufacturing gear and different objects to supply non-advanced-node built-in circuits topic to sure necessities. Only Wuhan Xinxin/XMC is at the moment eligible for this new license exception. Learn extra: What You Need to Know about Export License Exceptions.

Roll-on/Roll-off

Also referred to as RORO or ro-ro for brief, these are vessels designed to hold wheeled cargo, similar to autos and trailers. This is in distinction to lift-on/raise off (LoLo) vessels which use a crane to load and unload cargo.

Routed Export Transaction

An export transaction through which the FPPI authorizes a U.S. agent—typically a freight forwarder—to facilitate the export and file the EEI. The USPPI nonetheless retains vital regulatory tasks.

RPL—Servicing and Replacement of Parts and Equipment

Export license exception RPL authorizes exports and re-exports related to one-for-one substitute of elements, elements, equipment and attachments. RPL additionally authorizes exports and re-exports of sure objects at the moment topic to the EAR to or for, or to switch, a protection article described in an export or re-export authorization issued below the authority of the Arms Export Control Act. It doesn’t, nevertheless, authorize the export or reexport of protection articles topic to the ITAR, i.e., described on the United States Munitions List (22 CFR 121.1). Learn extra: What You Need to Know about Export License Exceptions.

Sanction

An embargo enforced by a authorities towards one other nation.

SBA

The Small Business Administration is an govt company of the U.S. authorities that exists to encourage and facilitate the expansion and improvement of small companies and entrepreneurs in America. 

SBDC

America’s Small Business Development Centers are a community of lots of of workplaces throughout the U.S. that present help companies to native small companies. SBDC’s are administered by the SBA.

SCAC

Standard Carrier Alpha Codes are developed by the National Motor Freight Traffic Association and used to establish inland carriers within the U.S.

Schedule B

Schedule B codes are used particularly for exporting out of the U.S. They are based mostly on HS codes and utilized by the U.S. Census Bureau to calculate commerce statistics and by U.S. Customs and Border Protection to make sure that exporters are following U.S. export rules.

SCP—Support for the Cuban People

Part 740.21 of the EAR explains the provisions of license exception SCP that authorizes sure exports and re-exports to Cuba which are supposed to help the Cuban folks by enhancing their residing circumstances and supporting unbiased financial exercise; strengthening civil society in Cuba; and enhancing the free movement of knowledge to, from and among the many Cuban folks. Learn extra: What You Need to Know about Export License Exceptions.

Section 232 Tariffs

Under Section 232 of the Trade Expansion Act of 1962, the President of the United States is granted the facility to regulate import tariffs if extreme overseas imports pose a risk to nationwide safety. In latest apply, these tariffs are primarily positioned on imports of aluminum and metal. This was carried out because of the United States International Trade Commission (USITC) experiences that metal imports might be dangerous to the United States metal business, significantly within the case the place nations that export metal to the United States unfairly subsidize their merchandise or promote them at an artificially low value.

Section 301 Tariffs

Under Section 301 of the Trade Act of 1974, the Office of the United States Trade Representative (USTR) information a Special 301 Report yearly which identifies “Priority Foreign Countries,” international locations which have insufficient mental property legal guidelines or have violated commerce agreements. These international locations could also be topic to sanctions or tariffs on the behest of the President of the United States. A latest instance is the tariffs imposed on imports from China by the Trump Administration.

Ship’s Tackle

Equipment similar to rigging or cranes used on a ship for loading or unloading cargo.

Shipper

In the context of global commerce, shipper is used to establish the corporate promoting the products to a overseas market. The shipper might also be referred to as the exporter or consignor on this case.

Shipper’s Letter of Instruction (SLI)

A doc offered by an exporting firm to their freight forwarder outlining directions for the freight forwarder. If the freight forwarder is submitting by the Automated Export System (AES) on behalf of the exporter, the SLI consists of the knowledge they should full the submitting. See additionally: 5 Reasons You Need a Shipper’s Letter of Instruction for Your Exports.

Shipping Documents

Paperwork that accompanies a cargo because it makes its approach to the ultimate vacation spot, similar to packing lists or payments of lading.

Shipping Solutions

Export documentation and compliance software that makes creating correct export paperwork quick and straightforward.

Shortage

When the variety of models acquired is lower than the amount acknowledged on the delivery paperwork. Opposite of overage.

Sight Draft

A doc used when the exporter needs to retain title to the cargo till it reaches its vacation spot and fee is made. Before the cargo might be launched to the customer, the unique “to order” ocean invoice of lading have to be correctly endorsed by the customer and surrendered to the service. See additionally, Understanding Bank Drafts: Sight Drafts versus Time Drafts.

Skids

Devices positioned beneath bins or packages in an effort to elevate them off the ground to allow entry by a forklift.

Small Business Development Center (SBDC)

A nationwide community of counselors for small enterprises that always provide companies that may assist first-time exporters.

SNAP-R

Simplified Network Application Process—Redesign (SNAP-R) is a system maintained by the Bureau of Industry and Security (BIS) within the U.S. Commerce Department that allows U.S. corporations to submit export license functions, commodity classification requests, reexport license functions and license exception AGR notifications by way of the Internet.

SOLAS

Safety of Life at Sea Convention is enforced by the International Maritime Organization (IMO). Under SOLAS, exporters are required to supply a verified weight of the products earlier than they’re loaded onto a ship for transport. See additionally: New Weight Verification Requirements Coming in July 2016.

Sourcing

The procurement of products or companies from a selected entity or nation, in addition to the enterprise technique of vetting potential suppliers to find out which can give the best strategic benefit. See our article: How Sourcing Impacts the Supply Chain.

Specially Designated Nationals List (SDN List)

An OFAC record figuring out blocked individuals and entities with whom U.S. individuals usually could not transact until approved.

Spotting

Placing a container able from which it may be loaded or unloaded.

STA—Strategic Trade Authorization

Export license exception STA authorizes the export, re-export and switch (in-country) of sure objects on the CCL to locations posing a low threat of unauthorized or impermissible makes use of. If objects have a number of causes for management, this exception can be utilized for exports to a listing of 36 international locations; if it has a National Security (NS) motive for management, it may be used for a smaller record of eight international locations.

To stop re-exports to unauthorized locations, a previous assertion from the consignee is required together with particular notification necessities. If an export is eligible for STA and a number of different license exceptions, the exporter could declare one of many different ones, which exempts them from the prior assertion and notification necessities particular to license exception STA. Learn extra: What You Need to Know about Export License Exceptions.

Starboard

The proper facet of a ship (when dealing with ahead). Opposite of port.

Stern

The bottom of a ship. Opposite of bow.

STC

Said to comprise.

Stevedore

Individual or firm that employs longshoremen and contracts for the loading and unloading of ships.

Stripping

Removing cargo from a container.

Stuffing

Putting cargo right into a container.

STW

Said to weigh.

Substantial Transformation

A rustic-of-origin precept used to find out whether or not manufacturing or processing in a rustic created a brand new and completely different article.

Supply Chain

A system of interconnected organizations and actions concerned within the motion of products from a provider to a buyer.

Surcharge

An additional or extra cost.

Surtax

An additional or extra tax.

Tail

Backside of a container or trailer. Opposite of entrance or nostril.

Tare Weight

The weight of a container whereas empty.

Tariff

A tax imposed on a product when it’s imported into a rustic. Some overseas international locations apply tariffs to exports.

Terms of Sale

Terms that outline the obligations, dangers and prices of the customer and vendor involving the supply of products that comprise an export transaction. These phrases are generally often known as Incoterms. See additionally, An Introduction to Incoterms.

Terminal

Also referred to as a container terminal, a location the place containers are picked up, dropped off, maintained and saved.

Terminal Charge

A cost for a service carried out in a service’s terminal space.

TEU (Twenty-Foot Equivalent Unit)

A typical 20-foot delivery container, measuring roughly 20 toes lengthy, 8 toes large and eight toes excessive. One commonplace TEU can maintain 9 to 11 pallets. The container can carry roughly 56,000 kilos, relying on the delivery line’s limitations. Two TEUs have the capability of a single FEU. 

Third Party Logistics (3PL)

An organization that gives logistics companies to different corporations, similar to warehousing and transportation.

Time Draft

A doc used when the exporter extends credit score to the customer. The draft states that fee is due by a selected time after the customer accepts the time draft and receives the products. By signing and writing “accepted” on the draft, the customer is formally obligated to pay inside the acknowledged time. See additionally, Understanding Bank Drafts: Sight Drafts versus Time Drafts.

TL

Trailer load.

TMP—Temporary Imports, Exports, Re-exports, and Transfers In-Country

Export license exception TMP authorizes numerous short-term exports and re-exports; exports and re-exports of things briefly within the United States; and exports and re-exports of beta take a look at software program.

Part 740.9 particulars classes of things which are probably lined below TMP. This consists of instruments of the commerce, which refers to straightforward instruments and gear in addition to software program vital for a enterprise to hold out its day-to-day capabilities. Software used as a device of commerce have to be shielded from unauthorized entry. Learn extra: What You Need to Know about Export License Exceptions.

Trademark

A phrase, image, identify, slogan or mixture thereof that identifies and distinguishes the supply of sponsorship of products and will function an index of high quality of a selected product. See additionally, 5 Strategies for Exporters to Protect Their Trademarks Globally.

Trade Statistics

Data that point out whole exports or imports by nation and by product. They let you examine the scale of the marketplace for a product in numerous international locations. By statistics over a number of years, you’ll be able to decide which trading floors are rising and which trading floors are shrinking.

Trading House

An organization that focuses on exporting and importing items produced or offered by different corporations.

Trailer

A container connected to the again finish of a truck.

Transshipment

The switch of cargo from one service to a different or from one car to a different at an intermediate level in the course of the items’ journey to the ultimate vacation spot.

Truck Tonnage

The weight (in tons) of a cargo transported by truck.

TSR—Technology and Software Under Restriction

Export license exception TSR is obtainable for exports and re-exports destined for international locations in Country Group B for ECCNs with National Security (NS) as their solely Reason for Control and with “TSR—Yes” listed below their entry on the CCL.

To be eligible for this license exception, the exporter should first acquire written assurance from the consignee that they are going to abide by sure circumstances which are detailed in Part 740.6. Learn extra: What You Need to Know about Export License Exceptions.

TSU—Technology and Software Unrestricted

Export license exception TSU authorizes exports and re-exports of operation know-how and software program; gross sales know-how and software program; software program updates (bug fixes); mass market software program topic to the General Software Note (see Supplement No. 2 to Part 774); and launch of know-how and supply code within the United States by U.S. universities to their bona fide and full-time common staff. Learn extra: What You Need to Know about Export License Exceptions.

Turnaround

A time period utilized in marine transportation referring to the time it takes between arrival of a ship and its departure.

Ullage

The area not stuffed with liquid in a drum or tank.

Unclaimed Freight

Freight that has not been referred to as for or picked up by the proprietor or final consignee.

United States-Chile Free Trade Agreement

A free commerce settlement between the United States and Chile that went into impact Jan. 1, 2004. On that date, the overwhelming majority of tariffs between the 2 international locations had been eradicated, and it was agreed that Chile and the United States would set up duty-free commerce throughout all product classes inside 12 years (by 2016).

United States-Colombia Trade Promotion Agreement (CTPA)

A free commerce settlement between the United States and Colombia that went into impact May 15, 2012. The United States is Colombia’s main commerce associate. Immediately upon implementation, the settlement eradicated 80% of duties on U.S. client and industrial exports to Colombia. It additionally granted duty-free standing to a wide range of agricultural exports from each international locations, together with beef, cotton, wheat and sure vegatables and fruits.

United States-Israel Free Trade Agreement

A free commerce settlement between the United States and Israel that went into impact in 1985 and is notable for being the United States’ first free commerce settlement with one other nation. The settlement reduces or eliminates duties on imports into the United States from Israel and contributed to the U.S. turning into Israel’s high buying and selling associate. It is the one U.S. free commerce settlement to not embody provisions on mental property rights.

United States-Korea Free Trade Agreement

A free commerce settlement between the United States and South Korea, formally named the Free Trade Agreement Between the United States of America and the Republic of Korea (KORUS). It went into impact in March 2012 and is notable for being South Korea’s largest commerce settlement second solely to its commerce take care of the European Union.

United States-Peru Trade Promotion Agreement

Called the PTPA for brief, it is a free commerce settlement between the United States and Peru that was carried out in February 2009. More than two-thirds of U.S. farm exports to Peru turned obligation free instantly upon implementation. In addition to commerce, the settlement consists of provisions associated to mental property rights, labor and environmental insurance policies.

Unit Load

Packages loaded onto a pallet, in a crate or in another means that permits for the products to be dealt with as a single unit. This course of known as unitization.

UN Number

An internationally acknowledged four-digit code used to establish harmful items. See additionally: Creating the IATA Dangerous Goods Form: The Shipper’s Declaration for Dangerous Goods.

U.S. Agency for International Development (USAID)

U.S. authorities company that procures items and companies from U.S. corporations to be used in creating international locations.

U.S. Commercial Service

The commerce promotion arm of the U.S. Department of Commerce’s International Trade Administration.

U.S. Department of Agriculture (USDA)

A department of presidency answerable for creating and executing federal authorities coverage on farming, agriculture, forestry and meals.

U.S. Department of Commerce (DOC)

A department of presidency answerable for selling home financial progress.

U.S. Small Business Administration (SBA)

The U.S. authorities company that manages applications for U.S. exporters, together with finance applications.

U.S. Trade and Development Agency (USTDA)

A U.S. authorities company that gives grants for feasibility research in creating international locations.

USMCA

On July 1, 2020, the United States-Mexico-Canada Agreement changed NAFTA because the free commerce settlement between the three international locations. In Canada, it’s formally often known as the Canada–United States–Mexico Agreement (CUSMA). In Mexico, it’s referred to as the Tratado entre México, Estados Unidos y Canadá (T-MEC). Under USMCA, qualifying merchandise are exempt from tariffs and quotas when traded between these three international locations. To declare this preferential obligation charge, it’s essential to decide in case your items qualify below the USMCA Rules of Origin. Download a free copy of the USMCA Certification of Origin form.

USML

The United States Munitions List is a listing of space- and defense-related merchandise which are managed by the U.S. Department of State below the International Traffic in Arms Regulations (ITAR). See additionally: USML vs. ECCN: What’s the Difference.

USPPI

The United States Principal Party in Interest is the celebration that receives the first profit from an export transaction, financial or in any other case. Usually the vendor of the products. See additionally: How to Determine the USPPI.

 

Value-Added Tax (VAT)

A consumption tax assessed by most international locations that will increase at each level within the provide chain the place worth is added to it. See our article: Exporters May Be Eligible for Import Tax Refunds.

Vessel

A seafaring car; a ship or ship.

Vessel Manifest

A doc itemizing particulars concerning the crew and cargo onboard a vessel.

Vessel Traffic Service (VTS)

A site visitors monitoring system utilized by harbor or port authorities used to watch ships, much like air site visitors management used to watch plane.

War Risk

Insurance protection for losses ensuing from an act of conflict.

Warehouse

A spot for the storage, consolidation and distribution of cargo. Warehousing is the storage of cargo.

Warehouse Receipt

A receipt figuring out the commodities deposited in a acknowledged warehouse. It is used to switch accountability when the home service strikes the export merchandise to the port of embarkation and leaves it with the ship line for export.

Wharf

A construction constructed on the shore of a harbour which facilitates the docking of ships.

World Customs Organization (WCO)

An intergovernmental group that performs a job in standardizing customs processes throughout the international stage, together with sustaining the Harmonized System (HS) nomenclature for commodity classification. 

World Trade Organization (WTO)

An intergovernmental group that regulates and facilitates global commerce between international locations. The WTO succeeded and expanded on the General Agreement on Tariff and Trade (GATT).

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This article was first printed in October 2017 and has been revised to incorporate extra phrases and up to date data, hyperlinks and formatting.