BEI e-MAIL
Raw Meat and Fully Cooked Products
IMPORT - EXPORT
Worldwide
GLOSSARY
Bestexports
I
I
I
I
I
I
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

I M P O R T - E X P O R T : G L O S S A R Y

The following is a list of some terminology and definitions used in determining import-export transactions and services.

A - B - C -D - E -F - G - I - K - L - M - N - O - P - R - S - T - V - W
     

ABI

: Automated Broker Interface: A computer system that allows a Customs Broker to interface directly with U.S. Customs' computer system.  
Advising bank : Bank that advises an exporter of a letter of credit.  
AGR imports : American goods returned.  
AI : All inclusive. Freight rate or quotation, which is inclusive of all surcharges and extras, often in one lump sum rather than broken down. Same as All-in.  
All-in : See AI  
Amendment : A proposed change to a letter of credit.  
ARB : Arbitrary charge. Charge for added expense, such as transshipment charges or ice-breaking charges. (SLS)  
Applicant : Party opening a letter of credit (importer).  

BAF or FAF (BSC)

Back To Top

: Bunker Adjust Factor, also known as Fuel Adjustment Factor or surcharge. Extra charge applied by shipping lines, or set by liner conferences on behalf of their members, to reflect fluctuations in the cost of bunkers. This surcharge is expressed either as an amount per freight ton or as a percentage of the freight. Same as BSC and Bunker Surcharge  
Banker's acceptance : Importer's bank accepts responsibility to pay against a draft (substituting for the importer's responsibility).  
Beneficiary : Party to be paid under a letter of credit (exporter).  
Bill of lading : Contract of carriage between shipper (exporter) and carrier (steamship line, NVOCC, airline, railroad or trucking company).  
BSC : Bunker Surcharge,. An extra charge by the carrier to adjust for temporarily higher fuel costs. Also called fuel surcharge. See also BAF, FAF  
Bunker Surcharge : See BSC, BAF or FAF  

CAF

Back To Top

: Cost And Freight named point. The exporter's price includes the cost of the merchandise and all shipping costs to the named point. Also called C+F, C&F, CFR  
CAF

: Currency Adjustment Factor: Additional charge (surcharge) in carrier's tariff when the currency used for payment is valued low in relation to other currencies. It is normally expressed as a percentage of the freight and may be negative as well as positive.

 

 
Cargo NES or Cargo NOS : Cargo Not Elsewhere Specified or Cargo Not Otherwise Specified: Carrier's tariff description for items not specifically listed in the tariff. Usually the highest rate.  
Carnet : A document obtained by a Customs Broker to enable goods to travel through several countries without paying duty, then to he returned intact to the country of origin.  
CFR : Cost and Freight named point. The exporter's price includes the cost of the merchandise and all shipping costs to the named point. Also called C+F, C&F, CAF  
CFS : Container Freight Station: A place where less-than-container-load ocean shipments (consignments) are brought to be loaded into a container (consolidated) which may be accommodated on board a ship (export) or unloaded from containers and made available for customs clearance and inland transportation (import). Also a place where shipments (consignments) are grouped together as a number of TEU's, .  
CFS/CY : Container freight stations to container yard movement of cargo.  
CIF : Cost, Insurance and Freight named point: The exporter's price includes the cost of the merchandise, all shipping costs to the named point and insurance.  
CY : Container yard. A place to which full container loads are delivered by the shipper to the ocean carrier and to which empty containers are returned.
CY/CY : Container yard to container yard movement of cargo.
Confirming bank : A bank in the exporter's country that stands behind payment of a letter of credit when documents are presented in a timely manner and without discrepancies. Usually the advising bank.
Connaissement : Bill Of Lading
Consolidation : An air freight forwarder's system of combining many small shipments into one large shipment on a scheduled carrier (truck, vessel, aircraft). (Slang: "Consol.")
Consularization : Approval of export documents by a foreign consulate or other entity in the United States.
Consumption entry : A type of customs entry admitting goods into the commerce of the United States May be formal or informal.
Container yard charge See THC
Correspondent : Bank, Customs Broker, Freight Forwarder, etc., working with others in another city or country to expedite transactions.
CPT : Carriage Paid To named point: The exporter's price includes the cost of the merchandise and all shipping costs to a named inland point (beyond the ocean port).
Customs Broker : An individual or a firm licensed by the government to undertake customs clearance and other services for the importing public.
CY : Container yard, where ocean containers are received, stored, and made available for delivery.

DAF

Back To Top

: Delivered At Frontier named point: The exporter's price includes the cost of the merchandise and all shipping costs to the named point at the border.
DDC : Destination Delivery Charges: Unloading charges at destination port of a steamship line or NVOCC.
Discrepancy : A document, or part of a document, that does not exactly conform to a letter of credit.

EC

Back To Top

: European Community: The customs union of countries in Europe, organizing freedom of movement for goods, services, capital and people.
Ethnocentrism : A belief that the way things are done in a particular person's culture is automatically the correct way for everyone. Anyone who deviates is doing wrong.
Export Management Company : A company that sells products abroad for another company, and ordinarily arranges the transportation arid financial transactions, usually on a commission basis.
Exporter, export merchant, export wholesaler : A company or person located in the country of export that sells on its own account.
Export Trading Company : A company that takes title to goods and then resells them.
Export broker, export sales or marketing agent : Commonly located in the country of export, the chief function of an export broker is to create liaison between a foreign buyer and domestic seller. The broker does not take possession of the products that are being exported and is paid by commission.
Export buying agent : A representative of the foreign buyer or importer who is located in the country of export. The agent offers services in response to the buyer's request, such as identifying potential sellers and negotiating prices. He or she may also review samples and inspect the goods prior to export. The agent is typically compensated by a commission. This is similar to a resident buyer; however, the resident buyer is an employee of the foreign buyer.
Export management company : A private company that acts as the export department for several companies, serving on behalf of the clients by conducting export business and correspondence in the name of the manufacturer. It may work on commission or salary. This option may be ideal for a small-to medium-sized business unable to afford its own international marketing division.
Export management company vs. export trading company :Trading company takes title to the goods, export-management company does not.
Export trading company :A company involved in commercial and financial activities to facilitate exports by unaffiliated persons; activities include distribution, shipping, warehousing and finance. Such transactions are increasingly conducted on-line.
Export wholesale consolidator :An export wholesaler who consolidates a variety of products into one shipment in response to the demands of the foreign buyer, often an importer or supermarket chain. The consolidator purchases products from a variety of suppliers to offer year-round global supply to the buyer.
EXW : Ex Works named point. The exporter's price includes making the goods available at the named point (his "works"), ready for shipment.

FAK

Back To Top

: Freight, All Kinds: Carrier's tariff description including any and all kinds of freight under this category, all at one rate regardless of density, value, etc.
FAS : Free Alongside Ship named point: The exporter's price includes the cost of the merchandise and all shipping costs to the vessel at the named port.
FCA : Free Carrier named point: The exporter 's price includes making the goods available at the named point (his "works") and loading the shipment.
FCL : Full Container Load: Usually refers to ocean shipments.
F.M.D. : Foot-and-Mouth Disease: disease of animals, spread by higly contagious viruses, easily transmitted and caused debilitation in mature animals and can be letal to young animals. There are seven known types of the F.M.D., all of which have an incubation period of between three and eight days. F.M.D. can be spread by the wind and by harboring in humans' nasal passages for up to 28 days. Nearly 100 percent of animals exposed to F.M.D. will be infected with the virus.
FOB : Free on Board carrier named point: The exporter's price includes the cost of the merchandise and all shipping costs to the named point, including loading on board the carrier and forwarder's fees. Applies to vessel, truck, train and air shipments.
Foreign trade zone : A specific place designated by US Customs Service to be outside the customs territory of the United States, permitting duty-free storage, display and manipulation of imported goods.
Foreign customs house broker or customs broker :A person in the importing country hired to facilitate the entry procedure, such as product valuation and classification or payment of duties.
Foreign distributor :The foreign distributor sells an exporter's merchandise directly to the foreign buyer, wholesaler or retailer after import. Since the distributor takes title to the goods, the exporter is less burdened with market demand fluctuations.
Foreign sales representative :Located overseas, the sales representative seeks domestic buyers for a foreign exporter by offering marketing services and making samples and catalogs available. Often paid on commission, the sates representative does not take possession or title of the goods being exported, hut may assist with import logistics.
Free trade agreement : An agreement between countries to reduce and eventually eliminate tariff and nontariff barriers between them.
Freight Forwarder : A travel agent for freight. A person or company that handles the export transportation and related formalities on behalf of a shipper or exporter, such as booking space on a ship or airplane and providing all the necessary export documentation.
FEU : Forty-foot equivalent unit. A unit of measurement equivalent to one 40-foot shipping container. Thus an FEU is equal to two TEU's. This measurement is used to quantify, for example, the container capacity of a ship, or the number of containers on a particular voyage or over a period of time, or it may be the unit on which freight is payable.
FSC : Fuel Surcharge: Additional charge n a carrier's tariffs when the price of fuel increases.

Gateway

Back To Top

: A principal airport, domestic or international, with many flights, offering maximum service and connections. Sometimes used to refer to a truck or rail border crossing to Canada or Mexico.
Gross weight : The total weight of a shipment.

Importer

Back To Top

:A company or person located in the country of import that buys on its own account.
Interline service : A routing from origin to destination involving more than one carrier.
Intermodal : More than one mode of transportation is used, e.g., truck and steamship, in one shipment, and one bill of lading is issued for the entire shipment.
ID : Identification.
IT : In-transit entry: A customs entry permitting goods to move between ports under bond.
Item : Individual product.
Item Number : Product ID. Usually 5-6 digits.

KT

Back To Top

: KT, Kiloton, 1,000 Metric Ton or 1,000,000 kilograms; equals 2,204,585.50 pounds. (Europe)
KT :Kilo or metric ton (MT) 1,000 kilograms; equals 2,204.6 pounds. (US)

Landbridge

Back To Top

: A microbridge or a mini-bridge.
LC : Letter Of Credit: Letter issued by a bank to arrange payment for goods.
LCL : Less-Than-Container Load: Usually refers to ocean shipments.
Legalization : Approval of export documents by a foreign consulate or other entity in the United States.
Letter of credit : LC ( Letter Of Credit): Letter issued by a bank to arrange payment for goods.
LTC : Less-Than-Container Load: Usually refers to ocean shipments.
LTL : Less-Than-Truckload.

M3

Back To Top

: Cubic meters.
Manufacturer's export agent :Typically offers similar, but fewer, services of an export management company. However the export agent retains its own identity by operating in its own name. Often paid a straight commission, which does not include advertising and financial assistance. This option is beneficial for firms that want to sell small orders, enter a new market or sell a relatively new product overseas.
Merchant or exporter vs. an agent : Both are independent wholesale marketing companies. However the merchant takes title to the products to be sold, while the agent does not.
Microbridge : A rate from a city that is not a seaport to a Foreign city, via another city that is a seaport, with the steamship line or NVOCC issuing a bill of lading from the original city and taking responsibility for the cargo all the way. Example: Phoenix to Tokyo via Los Angeles.
Minibridge : A rate from a city that is a seaport to a foreign seaport, via another city that is a seaport, with the steamship line or NVOCC issuing a bill of lading from the origin city and taking responsibility for the cargo all the way. Example: Los Angeles to Le Havre via Galveston.
MT : Metric ton (MT) 1,000 kilograms; equals 2,204.6 pounds.
NAFTA : North American Free Trade Agreement

Negotiable

Back To Top

: A document that can be used to claim title to the cargo, as in a "negotiable instrument."
Net weight : The weight of the goods themselves, not counting packing materials.
Non-negotiable : A document that cannot be used to claim title to the cargo. Most important: Air waybills are always Non-negotiable.
Non-tariff barrier : Any barrier to imports into a country. Official: boycott, inspection, licensing, and quota. Nonofficial: custom, language, prejudice, style.
NVOCC : Non-vessel operating common carrier: A company that issues its own bills of lading and rates using another company's vessels.

Opening bank

Back To Top

: A bank that opens a letter of credit (LC) at the request of an importer.
Origin receiving charges : Loading charges at origin point. See TRC.

PC

Back To Top

: Per Container

PC

Back To Top

:IBM platform personal computer.
PO : Purchase Order
Pro forma PO :Request for Quotation to the vendor with price indication.
Pro forma invoice : A quotation to the buyer.

Retail buying office

Back To Top

: A retailer's own buying office that purchases direct from manufacturers or agents. As retailers grow into global players, the buying office becomes a centralized retail buying office that makes purchasing decisions for its hundreds of outlets in-country and overseas.
Re-exporter :Imports or buys imported goods, then exports the products to a different country; typically operates in a country without import duties, in a foreign/free trade zone or in a customs bonded warehouse.

Sight draft

Back To Top

: A draft payable upon acceptance by the buyer.
SLS : Shipping line services.
SED : Shipper Export Declaration
STC : Said to contain: Sometimes applied by a forwarder or a carrier to documents as part of the description of the goods, e.g.," Container HJSU54321-2 ste 2,166 boxes of fzn turkey parts."

SWIFT ( S.W.I.F.T.)

: Society for Worldwide Interbank Financial Transactions.

Tare weight

Back To Top

: The weight of the packing materials in a shipment (net plus tare equals gross weight).
Tariff : A schedule of rates published by a carrier. Also can refer to the Harmonized Tariff Schedule of the United States, which covers customs duties.
Tariff barrier : Customs duties, which are one possible barrier to imports into a country by making them more expensive.
TEU : Twenty-foot equivalent unit. A unit of measurement equivalent to one 20-foot shipping container. Thus two TEU is equal to one FEU's. This measurement is used to quantify for example, the container capacity of a ship, or the number of containers on a particular voyage or over a period of time, or it maybe the unit on which freight is payable.
TIB : Temporary Import under Bond: A procedure in which goods are imported without payment of duty, by posting a bond to guarantee that they will be exported.
Time draft : A draft payable at a discernible time after acceptance by the buyer, e.g., "30 days after sight."
TL : Truckload
Transit Time : Time for goods to be carried from one place to another.
Transship : To change carriers in a foreign port en route to a third port. Also used to refer to a country of transshipment, as: "We are shipping from Canada to Mexico, transshipping across the United States"
THC : Terminal Handling Charge or TRC (Terminal Receiving Charges): Also known as container yard charge. Charge payable to a shipping line or NVOCC either for receiving a full container load at the container terminal, storing it, and delivering it to the ship at the load port or for receiving it from the ship at the discharge port, storing it and delivering it to the consignee.
TRC : Terminal Receiving Charges or THC (Terminal Handling Charge): Loading charges at origin port of a steamship line or NVOCC.

VAT

Back To Top

: Value Added Tax: A national sales tax on goods and/or services. Used in Europe and elsewhere

Warehouse entry

Back To Top

: A Customs Entry permitting goods to enter a bonded warehouse
Warehouse withdrawal : A Customs Entry permitting goods to leave a bonded warehouse.
Wharfage : A fee for using a wharf or pier at the origin or destination point. Generally included under terminal receiving charges.
Sources: Guide to APL Terms, 1993; American Presidential Lines
Dictionary of Shipping Terms, Brodie, P.; 1994, Lloyd's of London Press Ltd

 

Business Exchange International, Inc.

BEI e-mail