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(a)(1)(A) LIST
The list issued by the Customs Service of
documents and records that importers and others
must keep, retain, and, if the Customs Service
demands, produce, or be subject to
administrative penalties.
ABANDONMENT
1) An official proceeding where a carrier seeks
authorization to stop service of part or all of
its route/line, or give up ownership/control of
its cargo or vessel. 2) Shipper or consignee
relinquishes damaged freight carrier or refuses
to accept delivery. 3) The act of relinquishing
title to damaged or lost property in order to
claim a total loss.
ABEAM
Alongside.
ABSOLUTE LIABILITY
Condition in which carrier is responsible for
all liability and isn't protected by normal
exemptions found in bill of lading or common law
liability.
ABSOLUTE QUOTA
A quantitative restraint placed on imports of a
particular commodity, usually from a specific
country. Once the limit is reached, no more of
the product may be imported until the quota is
re-opened.
ACCELERATED TARIFF ELIMINATION
The feature in a free trade agreement that
allows for a gradual reduction of import duties
to the point where they are eliminated.
ACCEPTANCE
1) Acknowledged receipt by consignee of a
shipment, terminating the common carrier
contract. 2) A promise to pay, usually evidenced
by inscribing across the face of the bill
"accepted", followed by the date, place payable,
and acceptor's signature.
ACCESSION
The process by which a country negotiates terms
or determines obligations that must be fulfilled
in order to become a participant in a trade
agreement.
ACCESSORIAL CHARGES
Charges for supplementary services and
privileges, provided in connection with
line-haul transportation of goods. These charges
are not included in the freight charge and
usually take the form of a flat fee. Some
examples: pickup/delivery, in-transit
privileges, demurrage, switching,
loading/unloading.
ACCESSORIAL SERVICE
A service rendered in addition to the physical
transportation service; such as heating,
storage, and packing.
ACCOUNT NUMBER
A number assigned to identify a shipper or
consignee.
ACT OF GOD
Accidents arising from physical causes
(lightning, earthquakes, hurricanes, etc.) and
not from human cause or error. Out of the
control of all parties.
ADRIFT
Floating at random under no power or steerage.
AD VALOREM
Latin term that means "according to the value."
AD VALORUM DUTY RATE
A rate of duty that is applied to imported
goods, determined as a percentage of the
merchandise value.
ADVANCING CARGO
Designating cargo to be shipped on an earlier
sailing than the one for which it was booked.
ADVANCE CHARGES
1) Charges billed at origin in advance of
shipment. Usually, pre-carrier's portion for
movement to the port where goods are loaded. 2)
Freight charge on a shipment that is advanced by
one transportation company to another, or to the
shipper. Fees are then collected from the
consignee.
ADVICE OF SHIPMENT
Notice to local or foreign buyer that a shipment
has occurred. A copy of the invoice may be
enclosed, as well as packing and routing
details, and a copy of the bill of lading.
ADVISING BANK
The bank (the seller's or exporter's bank) which
receives a letter of credit from the issuing
bank (the buyer's bank) and forwards it to the
recipient (the exporter/seller).
ADVISORY COMMITTEE ON EXPORT POLICY
An interagency dispute resolutions committee
chaired by the Bureau of Export Administration
at the Assistant Secretary level.
AFLOAT
Commodities underway in water transit; either
aboard vessels, at sea, or in port, but not yet
unloaded.
AFT
Towards the rear or stern of the vessel.
AGENDA
A list of items to be considered.
AGENT
A person authorized to transact business for
another and/or and in the name of another.
AGREEMENT OF SOUTH EAST ASIAN COUNTRIES
A trading bloc of the following nations: Brunei,
Laos, Indonesia, Malaysia, Cambodia, Myanmar,
Philippines, Singapore, Thailand, and Vietnam.
AIR EXPRESS
A service providing for the expedited handling
of airfreight.
AIR FREIGHT
A service providing for the air transport of
goods.
AIR FREIGHT FORWARDER
Individuals or organizations that serve as
middlemen between shippers and carriers. They
process paperwork, consolidate goods, and tender
goods to air carriers for shipment.
AIRMAIL
A class of mail offered by postal service
organizations that entails the use of air
carriers, whenever such use will expedite
delivery.
AIRPORT MAIL FACILITY
A U.S. Postal Service facility located on or
adjacent to an airport. AMFs are primarily
engaged in the dispatch, receipt, and transfer
of mail directly with air carriers.
AIR WAYBILL
A non-negotiable instrument of air transport
that serves as a receipt for the shipper and
obligates the carrier to deliver the consignment
to the airport of destination according to
specified terms and conditions.
ALADI
Spanish acronym for Latin American Integration
Association. A group of 12 nations (Bolivia,
Ecuador, Paraguay, Chile, Colombia, Peru,
Uruguay, Venezuela, Cuba, Brazil, Argentina,
Mexico) that strives to reduce tariffs and
coordinate trade policies among members.
ALCOHOL PERCENTAGE
The percentage of alcohol contained alcoholic
beverages, spirits or other commodities.
ALL-COMMODITY RATE
Usually a carload/truckload rate that applies to
multiple shipments that move at one time, in one
vehicle, from consignor to consignee. An
all-commodity rate is established based on
actual transportation cost rather than "value of
service."
ALL RISK
An insurance policy that may expressly exclude
certain types of damage; such as marring,
scratching or bending.
ALLOWANCE
An amount paid or credited as a refund or
reimbursement to a buyer due to any of a number
of causes that result in an inability for the
seller to meet the buyer's specifications.
ALONGSIDE
A phrase that refers to a location nearby a
ship. Goods to be delivered "alongside" are to
be placed on the dock or barge within reach of
the transport ship's tackle so that they can be
loaded aboard the ship.
ALTERNATE ROUTING
Routing that is less desirable than normal
routing, but yields similar results.
AMERICAN BUREAU OF SHIPPING
Official vessel classification society of the
United States.
ANTI-BOYCOTT COMPLIANCE
Antiboycott laws require U.S. firms to refuse to
participate in foreign boycotts that the United
States does not sanction. They prevent U.S.
firms from becoming instruments that may be used
by foreign governments to pursue policies that
may be counter to those of the United States.
ANTI-DUMPING DUTIES
Additional duties imposed on imported
merchandise when the imported merchandise is
being sold in the United States at less than
fair value and is causing material harm to a
domestic industry.
ANTI-TERRORISM
Acts or practices enacted to deter or prevent
terrorism.
APPRAISER
An authorized party who determines the value of
goods.
ARMS CONTROL AND DISARMAMENT AGENCY
Formulates, advocates, implements and verifies
effective arms control, nonproliferation, and
disarmament policies, strategies, and
agreements. Reviews certain dual use export
license applications referred by Department of
Commerce.
ARBITRARY
1) Charge in addition to regular freight charge
to compensate for unusual local conditions. 2)
Fixed amount accepted by a carrier when dividing
joint rates.
ARRIVAL NOTICE
A notice to the consignee of the arrival of
freight.
ASSIGN
To transfer or endorse to another party.
ASSIGNEE
A person to whom a right of property is assigned
or transferred.
ASSIGNOR
A person who assigns or transfers a right of
property to another.
ASSIST
Value or items that an importer provides to its
foreign supplier/manufacturer at a reduced rate
or free of charge, directly or indirectly, that
is used to produce the imported merchandise. The
value of the merchandise must reflect this added
value.
ATTORN
To agree to turn over or transfer money or goods
to an individual or legal entity other than the
party who was to originally intended to receive
them.
ATTORNEY-IN-FACT
A person authorized to transact general business
or to perform a designated task of a non-legal
nature on behalf of another individual or legal
entity. In many countries, this authority must
be conferred by a written power of attorney.
AUDIT
Official examination of accounts.
AUSTRALIA GROUP
A group of 20 industrialized nations that
cooperate to curb proliferation of chemical and
biological weapons.
AUTHORITY AUTHORIZED CARRIER
Person or organization authorized by the
Interstate Commerce Commission to conduct
interstate commerce.
AUTOMATED BROKER INTERFACE
A computerized system that links customs brokers
and others to the U.S. Custom's authority.
AVOIRDUPOIS
Often referred to as the Imperial System of
Weights and Measurement (a) French for "having
weight;" (b) A system of weight measurement
based on the pound of 16 ounces and the ounce of
16 drams.
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BACK HAUL
1) Return transportation movement usually at
less revenue than the original move. 2) Movement
in the direction of lighter traffic flow when
traffic generally is heavier in the opposite
direction. 3) To move a shipment back over part
of a route already traveled.
BANK GUARANTEE
A commitment from a band to, backed by his bank,
that a carrier will not be held liable for any
claims resulting from the release of cargo to
said consignee when he is not in possession of
original endorsed Bills of Lading and or other
specified documents.
BARE BOAT CHARTER
A term used to define an arrangement whereby a
party leases a vessel for a specified period of
time, and pays crew costs and all other expenses
pertaining to the working of the vessel during
that time.
BARRATRY
An act committed by the master or mariners of a
vessel, for some unlawful or fraudulent purpose,
contrary to their duty to the owners, whereby
the latter sustains injury. It may include
negligence, gross negligence or fraud.
BASING POINT
Geographic point to which transportation rates
are set so that rates to adjacent points can be
constructed by adding to/deducting from the
basing point rate.
BEYOND CHARGES
Charges for movement beyond discharge port to
final destination by connecting carrier.
BILL OF LADING
The principal contract of carriage by which a
carrier acknowledges description and receipt of
freight from shipper. Terms, conditions,
responsibilities, and liabilities vary with
manner and place of use. Bills of lading may be
negotiable or non-negotiable.
BI-LATERAL AGREEMENT
An agreement between two countries.
BILL OF LADING ACT
An Act of Congress relating to the preparation
and negotiability of Bills of Lading.
BILLED WEIGHT
The weight of a shipment as shown on the freight
bill, not necessarily the actual weight.
BLUE LABEL
Warning label affixed to radioactive cargo.
BONA FIDE
Latin for "In good faith"; without fraud or
deceit.
BONDED WAREHOUSE
A warehouse owned by persons approved by the
Treasury Department and under bond for the
observance of the revenue laws; used for storing
goods until duties are paid or goods are
released.
BOOKABLE ROUTE
A multi-modal collection of carrier specific
scheduled legs, connecting a departure origin to
a target destination.
BOOKING
Initial contact between a carrier and a customer
for the purpose of setting aside space for an
intended trip or shipment.
BOX
1) Slang term for a trailer or container for
ocean carriers. 2) Slang term for a truck
transmission.
BOYCOTT
A voluntary refusal to purchase or sell goods.
BRANCH LINE
Railroad line providing train service to one or
more stations beyond a junction with the main
line or another branch line.
BREAKBULK
1) To unload, sort, and reload some or all
contents of a vehicle in transit. 2) To reduce a
large shipment of a single commodity to smaller
shipments, and disperse the goods to various
buyers.
BREAKBULK SHIP
A vessel designed to carry general cargo of any
and all sizes and shapes. The holds are loaded
by the "boom-and-sling" method, with gangs of
longshoremen filling cargo nets (slings)
manually on the dock and lifting nets aboard
with booms, to be unloaded and stored. It
normally takes 7 to 14 days to load or unload
this type of vessel. By comparison, a
containership unloads and loads within 24 hours.
BROKER
1) Agent who arranges interstate movement of
goods by other carriers. 2) Arranger of exempt
loads for owner-operators and/or carriers. 3)
One who arranges the buying/selling of goods for
a commission. 4) Person who leases owned
equipment to a carrier.
BRUSSELS DEFINITION OF VALUE (BDV)
The rules on Customs valuation according to the
BDV are based on the notional concept of "value"
which treats the dutiable value as the "normal
price" at which the goods would be sold in an
open market between an importer and an exporter
operating independently. The "normal price" is
the open market price at which the goods are
freely available to any buyer subject to
compliance with certain conditions. For example,
if a sole agent receives a special discount,
which is not granted to other importers, it has
to be added to the price to arrive at the normal
or open market price for Customs valuation
purposes.
BULK CARRIER
Vessel that carries bulk commodities such as
petroleum, grain, or ore, which are not packaged
bundled, bottled, or otherwise packed.
BULK CARRIER VESSEL
Designed to carry liquid or dry commodities,
such as petroleum or wheat, in bulk.
BULK FREIGHT
Dry or liquid freight not in packages or
individual containers.
BULKHEAD
1) Upright wall in a trailer, railcar, air
carrier, or vessel that separates and stabilizes
a load, or separates one compartment from
another. 2) Cargo-restraining partition in a
vehicle or vessel.
BUNKER
The space in which fuel for the vessel is
stored.
BUNKER ADJUSTMENT FACTOR
An ancillary charge assessed by carriers on some
ocean container freight shipments to account for
fluctuation in fuel cost.
BUNKERING (TO BUNKER)
To replenish the fuel.
BUNKER SURCHARGE
Additional shipping charge incurred or charged
due to fuel price increases.
BUREAU OF EXPORT ADMINISTRATION
The Department of Commerce agency responsible
for administering and enforcing export controls
on "dual-use" items. (USA)
BUSHEL
A measure of capacity (8 gallons) for produce.
BUSINESS EXECUTIVES ENFORCEMENT TEAM
Town-hall meetings, hosted by Export Enforcement
personnel, which provides opportunities for
government officials and business executives to
discuss export control and enforcement issues
and to develop cooperative relationships within
the business community. (USA)
BUYER'S RIGHT TO ROUTE
When a seller does not pay freight charges, the
purchaser has a right to designate the route for
shipment, and the seller is responsible for
following the buyer's instructions. Complete
routing is permitted for rail shipments, but
limited to the first carrier in motor shipments.
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CABOTAGE
Refers to the required use of domestic carriers
for shipments in U.S. coastal waters.
CARETAKER
A person accompanying a shipment that requires
special attention while en route. An attendant.
CARGO
Merchandise taken onboard for conveyance.
CARLOAD
1) Quantity of freight required to fill a
railcar. 2) Specified quantity necessary to
qualify a shipment for carload rate.
CARNET
International customs document allowing movement
of commodities through a country, in bond, with
no inspection required.
CARRIER
An individual or organization engaged in the
business of transporting goods or passengers.
CARRIER'S LIEN
The carrier's right to hold the shipper's
property as security until such time as a
shipping debt is paid.
CARTAGE
1) Charge for pickup and/or delivery of goods.
2) Act of moving goods, usually a short
distance.
CASE MARK
Information shown on the outside of a shipping
carton, including destination and contents.
CASH BEFORE DELIVERY
Seller assumes no risk and extends no credit
because payment is received before shipment.
CASH ON DELIVERY
A term of sale whereby a buyer pays the carrier
the price of goods (and possibly the
delivery/freight charges) before they are
released. The seller assumes risk of purchaser
refusing to accept goods.
CAT MOVE
Conference Affairs and Tariffs: Pricing term
that relates to thru moves to inland points.
CELLULAR VESSEL
Ship specially constructed for the stowage of
containers in vertical stacks or cells. These
stacks or cells are normally six to seven levels
high when below decks, or three to four levels
high when above decks.
CERTIFICATE OF INSPECTION
A document certifying that merchandise (such as
perishable goods) was in good condition
immediately prior to its shipment.
CERTIFICATE OF INSURANCE
A document stating that insurance is in effect.
CERTIFICATE OF MANUFACTURE
Certificate stating that goods have been
manufactured by a certain manufacturer and/or in
a certain country.
CERTIFICATE OF ORIGIN
A document required by certain foreign countries
that certifies the country of origin of
specified goods for tariff purposes.
CERTIFICATE OF WEIGHT
An authoritative statement of the weight of a
shipment.
CHARGEABLE WEIGHT
The weight used to determine airfreight charges.
The chargeable weight may be the dimensional
weight, or for container shipments, the gross
weight of the shipment less the tare weight of
the container.
CHASSIS
The undercarriage of a trailer on which van
containers are placed for road movement.
CHEMICAL & BIOLOGICAL WEAPONS
Weapons that contain biological or chemical
properties.
CLAIM
1) Demand on transportation company for payment
due to loss/damage of freight during transit. 2)
Demand on transportation company for refund on
overcharge. 3) Demand by individual/company to
recover certain amounts that may be covered
under an insurance policy.
CLAIM AGENT
An overseas representative of the insurance
company.
CLAIMANT
Person or company filing a claim.
CLASS RATE
Rate for commodities grouped according to
similar shipping characteristics. Applies to
groups of articles contained in the territorial
rating column in classification schedules.
CLASSIFICATION
The process of assigning the correct definition
and category of imported merchandise within the
Harmonized Tariff Schedule of the United States.
Classification and valuation are the primary
components to determining the amount of duty an
importer owes on the merchandise.
CLEAN BILL OF LADING
A Bill of Lading signed by the carrier for
merchandise received in apparent good condition
(no damage or missing pieces of freight).
CLEARANCE
Customhouse certificate that states that all
legal requirements having been met and a ship is
free to leave port.
CO-LOAD
Two shipments from different terminals combined
to ship as one load.
CODE OF FEDERAL REGULATIONS
The codification of rules published in the
Federal Register by the Executive departments
and agencies of the U.S. Federal Government.
COLLECT SHIPMENT
A shipment whereby the delivering carrier
collects freight charges from the consignee.
COMBI-AIRCRAFT
Aircraft specially designed to carry unitized
cargo loads on the upper deck of the craft,
toward or near the passenger area.
COMBINATION RATE
A rate determined by combining two or more rates
published in different tariffs.
COMBINATION THROUGH RATE
A through rate determined by combining two or
more rates published in different tariffs.
COMBINATION VESSEL
A vessel designed and built to accommodate
alternative modes of cargo handling.
COMMERCE CONTROL LIST
A list of items under the export control
jurisdiction of the Bureau of Export
Administration.
COMMERCIAL INVOICE
Itemized list issued by seller/exporter in
foreign trade showing quantity, quality,
description of goods, price, terms of sale,
marks/numbers, weight, full name/address of
purchaser, date, and sometimes other pertinent
information.
COMMODITY
An article of commerce or goods shipped.
COMMODITY CODE
Any one of several coding systems used to
identify and/or group commodities.
COMMODITY RATE
A shipping rate, for a particular named
commodity, usually to and from specific points.
COMMODITY TARIFF
A tariff containing only commodity rates.
COMMON CARRIER
A carrier engaged in the business of
transporting persons or goods at published
rates.
COMMON TARIFF
A tariff published by and for the account of two
or more transportation lines as issuing
carriers.
COMMODITY JURISDICTION
Request used to determine whether an item or
service is subject to the export licensing
authority of the Department of Commerce,
Department of State, Office of Defense Trade
Control, or other federal agency. (USA)
COMPOSITE LEG
A macro leg of transportation connecting three
or more discrete stations.
COMPOUND DUTY RATE
A compound duty rate is an ad valorum rate plus
a specific rate that is based on some unit of
measure.
COMPUTED VALUE
A valuation method whereby a profit value (based
on margin) is added to the costs of production
to determine the price of a good.
CONCEALED DAMAGE
When goods in an apparently undamaged container
are damaged. Claims are hard to settle because
neither shipper nor carrier wants to accept
responsibility.
CONCURRENCE
Document signed by a carrier and filed with the
Interstate Commerce Commission that verifies
that the carrier participates in rates published
in a tariff by a given agent. (USA)
CONFERENCE
1) Independent/autonomous organization within
the American Trucking Associations that
represents a certain class/type of motor
carrier. 2) Association of ship owners that
service the same trade route(s) and operate
under collective conditions of carriage and
tariff rates.
CONFIRMED LETTER OF CREDIT
A letter of credit, issued by a foreign bank,
with validity confirmed by a U.S. bank. When
confirmed, the U.S. bank undertakes
responsibility for payment even if the foreign
buyer or bank defaults.
CONFERENCE RATE
A rate arrived at by the conference of carriers
applicable to transportation.
CONNECTING CARRIER
A carrier who has a direct connection with
another carrier, under which people or freight
are moved in joint-line service.
CONSIGN
Furnishing goods to an agent to sell on the
consignor's behalf.
CONSIGNEE
Person who receives goods shipped from a
consignor.
CONSIGNMENT
See shipment.
CONSIGNOR
The person or firm from whom the goods have been
received for shipment, the seller, shipper, or
exporter.
CONSOLIDATED LOAD
A number of small individual shipments, possibly
by different shippers, combined into a single
large load, to take advantage of economies of
scale.
CONSOLIDATION
Combining less-than-carload or
less-than-truckload shipments, to make
carload/truckload movements.
CONSUL
Commercial representative of one country
residing officially in another country, whose
duties are to facilitate business and represent
the merchants of his nation.
CONSULAR FEES
The fees charged by a consul for his official
certifications or notorial legislations.
CONSULAR INVOICE
A document required by some foreign countries
that describes a shipment of goods and shows
information, such as the consignor, consignee,
and value of the shipment. Certified by a
consular official of the foreign country, it is
used by the country's customs officials to
verify the value, quantity, and nature of the
shipment.
CONTAINER
A uniform, sealed, reusable metal "box"
(generally 40 feet in length, able to hold
approximately 40,000 pounds) in which goods are
shipped by vessel or rail.
CONTAINER CRANE (ONSHORE)
A specially designed land-based crane on tracks
for loading or unloading containers from
vessels.
CONTAINER EQUIVALENTS
The internationally recognized standard
conversions that serve as the basis for
converting containers of various sizes into
comparable units.
CONTAINER FRIEGHT STATION
A carrier facility where less-than-container
load shipments are consolidated for shipment,
unloaded for shipment, or unloaded for final
delivery. The term CFS Shipment indicates less
than a container load.
CONTAINER LOAD
The amount, which fills, or partially fills a
container to cubic or weight capacity.
CONTAINER SHIP
A ship specially constructed to handle
containerized cargo.
CONTAINER YARD
A carrier facility where full containers are
stored.
CONTAINERIZATION
1) Using box-like device to store, protect and
handle a number of packages as a unit of
transit. 2) Shipping system based on large
cargo-carrying containers that can be
interchanged between trucks, trains, and ships
without rehandling contents.
CONTINGENCY INSURANCE
When a product is sold under terms that require
the buyer to provide insurance coverage, the
seller may elect to purchase "backup insurance"
in case the coverage provided by the buyer is
not sufficient to cover the value of the
shipment.
CONTINUOUS SEALS
A term denoting that seals on a vehicle remained
intact during the movement from origin to
destination.
CONTRABAND
Illegal or prohibited goods.
CONTRACT CARRIER
Carrier engaged in interstate transportation of
persons/property by motor vehicle on a for-hire
basis, but under continuing contract with one or
a limited number of customers. Must receive
authorization permit from the Interstate
Commerce Commission.
COST AND FREIGHT
Shipper pays the ocean freight and other costs
(Accessorial, Inland Transportation, etc.)
associated with the movement of the cargo to a
particular point of the consignee's choosing.
The consignee pays the Insurance.
COST AND INSURANCE
Shipper pays the for the insurance and shipping
related costs other than ocean freight,
associated with the movement of the cargo to a
particular point of the consignee's choosing.
The consignee pays the Ocean freight.
COST, INSURANCE AND FREIGHT
A valuation basis whereby a shipper pays the
freight and insurance charges associated with
the movement of cargo to a particular
destination.
COUNTERVAILING DUTIES
Duties assessed by a country to remedy the
unfair advantage that certain industries or
manufacturer's gain when they are unfairly
subsidized by their governments.
COUNTRY CHART
A chart that contains certain licensing
requirements based on destination and reason for
control.
COUNTRY GROUPS
For export control purposes, foreign countries
are separated into five country groups
designated by the symbols A,B,C,D, and E. (USA)
COUNTRY OF EXPORT
The country where goods are shipped from.
COUNTRY OF MANUFACTURE
The country where the product is actually made
or grown. If more than one country is involved,
the country of manufacture is normally the
country where the last major transformation took
place.
COUNTRY OF ORIGIN
The country that produced the imported
merchandise (see "marking").
CREDIT RISK INSURANCE
Insurance designed to cover risks of nonpayment
for delivered goods.
CUBE-OUT
When the cubic capacity of a container is
reached before the weight capacity.
CUBE RATE
A dimensional shipping rate based on the amount
of trailer space that is used, instead of
weight. Used for light bulky loads.
CUBIC CAPACITY
The carrying capacity of a vehicle expressed in
cubic feet/meters.
CURRENCY ADJUSTMENT FACTOR
A charge used to equalize fluctuating rates of
exchange. An ancillary charge on some ocean
freight shipments, expressed as a percentage of
a base rate, to compensate ocean carriers for
fluctuations in the value of the U.S. dollar
against foreign currencies.
CURRENCY OF TRANSACTION
The currency used to pay for goods.
CUSTOMS
Denoted by its capital "C", this terms refers to
the U.S. Customs Service.
CUSTOMS BROKER
The importer's agent licensed by the Customs
Service to enter and clear goods through
Customs.
CUSTOMS COOPERATION COUNCIL
An international Customs organization in
Brussels that oversees, and strives to
harmonize, tariff and regulatory matters
worldwide.
CUSTOMS MODERNIZATION ACT (often referred to as
"The Mod Act")
Recently enacted federal legislation that
imposes new and extensive compliance and
record-keeping requirements on importers, shifts
the responsibility for customs compliance from
the Government to importers, and imposes a
standard of reasonable care on importers.
CUSTOMS TARIFF
Schedule of charges assessed by the government
on imports/exports.
CUSTOMS UNION
A union of countries where there are no duties
on products traded among member nations and
common external tariffs levied on imported
products from non-member states.
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DAMAGE CLAIM
Demand upon carrier for reimbursement due to
physical injury to shipment or because shipment
was not delivered within a reasonable time.
DANGEROUS GOODS
Articles or substances capable of posing
significant risk to health, safety or property,
and that ordinarily require special attention
when transported.
DECLARATION
A formal representation by the importer or its
agent to the Customs Service attesting to the
correctness, description, valuation,
classification, etc., of the imported
merchandise.
DECLARED VALUE
Assumed value of shipment unless shipper
declares higher value.
DEAD WEIGHT TONNAGE
A common measure of ship capacity based on the
number of tons of cargo a vessel can carry.
DEDUCTIVE VALUE
A valuation method to determine the cost of
goods sold whereby a profit value (based on a
profit margin), and other miscellaneous charges,
are deducted from the price of the goods.
DEFENSE TECHNOLOGY SECURITY ADMINISTRATION
The branch of the Department of Defense that
reviews applications for the export of items
that are subject to dual-use license controls.
(USA)
DEFERRED REBATE
A tying device usually in a loyalty contract
under which the rebate is not paid unless the
shipper has met its cargo commitment to the
conference or carrier for the time agreed
(usually six months or one year) and for an
additional waiting period beyond that time.
DEFICIT WEIGHT
The difference between the minimum weight and
the actual weight of a shipment when actual is
less than the minimum.
DELIVERING CARRIER
The carrier that delivers a shipment to the
consignee.
DELIVERY DUTY PAID
The exporter is responsible for all shipping and
clearance through U.S. Customs all the way from
the factory to the importer's premises. Thus the
seller incurs the risk of loss throughout the
entire transaction.
DEMAND EXPORT LICENSE
Will permit addition or deletion of individual
foreign nationals under a single comprehensive
license.
DEMURRAGE (IMPORT)
A surcharge assessed by steamship lines and
railroads for storage at their port or facility
longer than the allotted "free time" (usually 48
hours allowed for loading/unloading).
DENIED PERSONS LIST
A list of specific persons or organizations that
have been denied export privileges, in whole or
in part. (USA)
DENSITY OF COMMODITY
The weight of a commodity in pounds per cubic
foot.
DESTINATION
The place to which a shipment is to be
delivered.
DESTINATION CONTROL STATEMENT
Any of various statements that the U.S.
Government requires to be displayed on export
shipments that specifies the destination(s) for
which export of the shipment has been
authorized.
DETENTION
Charges for the utilization of containers that
exceed the the specified time limit afforded to
a carrier or shipper.
DIFFERENTIAL
Amount added to/deducted from a base rate to
establish a rate to/from some given point via
some different route route.
DISPATCHING
The control and scheduling of pick-up and
delivery of freight.
DISPLACEMENT
The cubic volume of a container.
DIVERSION
A change made in the destination, consignee or
shipment route of a shipment in transit.
DOCK
A location at a port where cargo can be loaded
and unloaded and other shipping functions can be
performed.
DOCK RECEIPT
A receipt issued by an ocean carrier to
acknowledge receipt of a shipment at the
carrier's dock or warehouse facilities.
DRAFT
A written order for the payment of money, "Drawn
On" or addressed to a party holding money in
trust.
DRAWBACK
A program that helps domestic manufacturers
compete in foreign markets and that allows
importers to get a refund of all or part of the
duties they paid on imported merchandise.
DRAYAGE
Transporting freight by truck primarily in local
cartage.
DUAL USE GOODS
Products or commodities that can be manipulated
or re-engineered to serve a military or
nation-threatening purpose.
DUMPING
The import and sale of merchandise by a foreign
country or supplier at less than fair value.
DUNNAGE
Material used in stowing cargo within a
container to prevent movement.
DUNNING
Customer contact for payment of freight charges.
DUTY
A tax on imported merchandise.
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EDIFACT
United Nations Rules for EDI Administration.
ELECTRONIC DATA INTERCHANGE
The exchange of data or information via an
electronic medium.
ENCRYPTION ITEMS
Items used to encrypt messages.
END USER
1) The ultimate user of a good or commodity. 2)
A consignee that uses items "as is" (e.g., as
capital equipment), or incorporates them as
integral parts, components or materials in the
production of other commodities.
END USE STATEMENT
An affidavit that a purchaser may be required to
submit to acknowledge that goods will not be
re-sold or used for purposes other than those
for which they are intended.
ENHANCED PROLIFERATION CONTROL INITIATIVE
Foreign policy control requiring an Individual
Validated License if the exporter knows or is
informed that a commodity is destined to be used
in a missile related activity.
ELECTRONIC REQUEST FOR ITEM CLASSIFICATION
A supplementary service to ELAIN to allow the
electronic submission of commodity
classification requests to the Bureau of Export
Administration.
EMPLOYER IDENTIFICATION NUMBER
A unique number given to employers by the
Internal Revenue Service for tax purposes.
EMBARGO
Legislation passed by a government that prevents
imports or exports from a certain country.
ENTRY
The process for getting imported merchandise
released from the Customs Service.
EUROPEAN UNION
A Customs Union consisting of 15 countries:
Austria, Finland, Greece, Italy, Spain,
Portugal, France, United Kingdom, Ireland,
Belgium, Netherlands, Luxembourg, Denmark,
Sweden, and Germany.
EUROPEAN FREE TRADE AREA
A trading bloc comprised of Switzerland, Norway,
Liechtenstein, and Iceland.
EX
Prefix meaning "out of" or "from", used with
noun of location. Means all transportation
charges and risks of loss/damage are chargeable
to buyer when goods are delivered to carrier of
"ex" location.
EXCHANGE BILL OF LADING
A Bill of Lading issued in exchange for another
Bill of Lading.
EXCISE TAX
A tax imposed on the sale of certain goods such
as: alcohol, tobacco, and minerals.
EXEMPT CARRIER
For-hire motor carrier exempt from federal,
state or local regulations.
EXPEDITING
Moving shipments through regular channels at an
accelerated rate.
EXPIRATION NOTICE
A notice in a tariff that the whole or some part
of the tariff will expire at a stated time.
EXPORTER
The principal party in an export transaction
that has the power and responsibility for
determining the mode of transport, and controls
the sending of goods to a recipient in an
international destination.
EXPORT CONTROLS
Systems or methods enacted to prevent dual-use
goods from being shipped to those countries or
parties that may use them for acts of terrorism,
war, or other destructive practices.
EXPORT DECLARATION
A Declaration Form for calculating export
statistics and monitoring the movement of
certain goods.
EXPORT LETTER OF CREDIT
A document issued by a bank stating its
commitment to release a specified sum of funds
for an export transaction, once certain
conditions have been met.
EXPORT LICENSE
A government document that permits the
"licensee" to engage in the export of designated
goods to certain destinations.
EXPORT ADMINISTRATION ACT
The legislative order that grants the Department
of Commerce the authority to issue regulations,
and to administer and enforce export controls.
EXPORT ADMINISTRATION REGULATIONS
Regulations set forth by the Bureau of Export
Administration.
EXPORT ADMINISTRATION REVIEW BOARD
The cabinet level interagency dispute resolution
committee chaired by the Secretary of Commerce
that reviews export license applications.
EXPORT CONTROL AUTOMATED SUPPORT SYSTEM
Information database management system designed
to support the Bureau of Export Administration's
export licensing process and enforcement
activities.
EXPORT CONTROL CLASSIFICATION NUMBER/EXPORT
CONTROL NUMBER
Typically an alphanumeric code to classify
export commodities that have potential military
or dual use application.
EXPORTER COUNSELING DIVISION
A division of the Export Administration's Office
of Exporter Services. It is responsible for
providing information to U.S. exporters on the
Export Administration Regulations.
EXPORT ENFORCEMENT
A principal operating unit of the Bureau of
Export Administration with responsibilities
relating to the enforcement of export control on
"dual-use" items.
EXPORT MANAGEMENT SYSTEM
An optional program developed by the Bureau of
Export Administration to assist companies in
complying with the export control provisions of
the Export Administration Regulations.
EXPORT SEMINAR STAFF
A division of the Bureau of Export
Administration that develops a full range of
programs on exporting good and services.
EXPORTERS IDENTIFICATION NUMBER
A number that denotes a specific exporter.
EX-WORKS
A term of sale whereby the buyer takes
possession and ownership of goods literally
outside of the seller's premises.
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FALSE BILLING
Describing freight on shipping documents so as
to misrepresent the actual contents of the
shipment.
FAVORED NATION
The status that is given to countries in which
the United States has normal trade relations.
FEDERAL REGISTER
Government publication that prints
rules/regulations of federal agencies daily.
FEEDER
In intermodal moves, a pickup/delivery vehicle
or ship.
FIRST IN, FIRST OUT
Warehouse term meaning first items stored are
the first used.
FLAT RACK
Open sided container usually designed with
corner posts.
FLUCTUATION RISK
The risk inherent in international transactions
due to due to currency fluctuations
FOB DESTINATION
A term of sale whereby freight cost is paid by
seller to destination point.
FOB FACTORY
A term of sale whereby the price of goods
includes the loading of goods aboard a carrier's
vehicle at the seller's factory.
FOB VESSEL
A term of sale whereby the price of goods
includes the transportation to, and loading of
goods aboard a vessel.
FORCE MAJEUR
French for "Superior Power." Circumstances
beyond ones control, excusing fulfillment of
contract. Condition in contract that relieves
either party from obligation where major
unforeseen events prevent compliance with
provisions of agreement.
FOREIGN TRADE ZONE ACT
Covers how and where zones are established, how
they are administered, and what actions are
permitted and forbidden in them.
FOREIGN TRADE ZONE
Importers may temporarily house imported
merchandise in a free trade zone before it is
processed through the Customs Service. The
importer does not pay duties while the
merchandise is in the foreign trade zone.
FORTY FOOT EQUIVALENT UNIT
Commonly describes a 40-foot container.
FORWARD
Towards the bow or front of the vessel.
FORWARDER
1) Individual/company that accepts LTL shipments
and consolidates them into truckload lots on
for-hire basis. 2) Agent who helps expedite
shipments by preparing necessary
documents/making other arrangements for moving
freight.
FORWARDING AGENT
Firm specializing in shipping goods abroad.
Payments made for insurance and other expenses
are charged to foreign buyer.
FREE ALONGSIDE
Selling term in international trade whereby the
selling party quotes a price including delivery
of goods alongside overseas vessel at port of
export.
FREE ALONGSIDE SHIP
A selling term that indicates that the quoted
price includes the cost of delivering the goods
alongside a designated vessel.
FREE IN AND OUT
Cargo to be loaded and discharged free of charge
to vessel.
FREE IN OUT AND STOW
Cargo to be loaded, discharged and stowed free
of charge to vessel.
FREE ON BOARD
A term of sale whereby the price of goods
includes the loading of goods aboard a carrier's
vehicle.
FREE TIME
The period of time allowed for loading or
unloading before charges for detention or
demurrage of equipment become effective.
FREE TRADE AREA
A designated trade area where tariffs on
imported goods are reduced or eliminated for
certain countries.
FREEZABLE FREIGHT
Freight that will be damaged if it is subjected
to freezing temperatures.
FREIGHT BILL
Carrier's invoice for payment of transportation
services rendered.
FREIGHT CHARGE
The charge assessed for transportation of
freight.
FREIGHT CLAIM
A demand made upon a carrier for payment of
overcharge, loss, or damage sustained by shipper
or consignee.
FREIGHT CONFERENCE
See "Conference".
FREIGHT FORWARDER
A person who arranges the shipping and export
clearance of imported merchandise.
FREIGHT MANIFEST
A mirror of the vessel's cargo manifest that
also shows freight charges. For internal
accounting and customer service use only.
FREIGHT OF ALL KINDS
A uniform rate irrespective of commodity.
FUEL ADJUSTMENT FACTOR
An ancillary charge on some ocean freight
shipments to account for fluctuations in fuel
costs. Also referred to as BAF or bunker
adjustment factor.
FULL CONTAINER LOAD
Shipment of a full container.
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GATEWAY
Point at which freight is
interchanged/interlined between carriers, or at
which a carrier joins two operating authorities
provision of through service.
GENERAL AGREEMENT ON TARIFF AND TRADE
A multi-lateral trade agreement enacted with the
purpose of unifying trade and Customs procedures
worldwide.
GENERAL AVERAGE
A loss that affects all cargo interests on board
a vessel, including the vessel itself. A vessel
owner declares a vessel under General Average
when the common good of the shipping parties
involved will benefit through sacrifice of the
goods on board.
GENERAL EXPORT LICENSE
Any of various export licenses covering
commodities for which validated export licenses
are not required. No formal application or
written authorization is needed to ship exports
under a general export license.
GENERALIZED SYSTEM OF PREFERENCES
A widely known preferential trade agreement that
provides free or reduced rates of duty to
beneficiary developing countries in an effort to
assist their economic growth.
GENERAL LICENSE
A license which grants permission to export
non-strategic goods to specified countries,
without having to obtain a validated license.
GODOWN
The name given to storehouses and warehouses in
the Far East.
GROSS WEIGHT
The weight of a container plus cargo.
GROUPAGE
A service providing facilities for small
consignments to be consolidated and transported
in a container.
GUARANTOR
One who makes a guarantee.
GUARANTY
A contract to see performed what another has
undertaken.
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HAGUE RULES (1921)
Rules defining the risks to be assumed by sea
carriers under a bill of lading.
HARBOR MAINTENANCE FEES
Charges assessed to users for use of a harbor,
used generally for maintenance of the harbor.
HARBORMASTER
An officer who attends to the berthing and other
tasks of ships in a harbor.
HARBOR TAX
A tax paid quarterly by exporters to U.S.
Customs based on a percentage of their total
value of exports.
HARD MONEY
Refers to currency that is accepted
internationally and is freely convertible.
HARMONIZED CODE
An internationally accepted and uniform
description system for classifying goods for
customs, statistical, and other purposes.
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
(HTSUS)
The legal list issued by the U.S. Government
used to determine the classification of imported
merchandise.
HARMONIZED TARIFF SCHEDULE/HARMONIZED SCHEDULE
A comprehensive list of all products, classified
according to their characteristics, and used to
provide duty rate and statistical information.
HARTER ACT
Legislation protecting a ship's owner against
claims for damage resulting from the behavior of
the vessel's crew; provided the ship left port
in a seaworthy condition, and was properly
manned and equipped.
HEDGING
A strategy used by dealers in commodities,
foreign exchange and securities, and by
manufacturers and other producers to prevent
loss due to price fluctuations.
HIGH PERFORMANCE COMPUTER
Computers with a Composite Theoretical
Performance greater than 2000 Million
Theoretical Operations Per Second.
HOGSHEAD
A large cask.
HOLDER IN DUE COURSE
An individual or legal entity (holder) who
possesses a negotiable instrument, document of
title, or similar document, and who took
possession for value, in good faith, and without
notice of any other individual's or legal
entity's claim or defense against the instrument
or document.
HOLD FOR PICKUP
Freight to be held at the carrier's destination
location for the recipient to pick up.
HOLD HARMLESS CONTRACT
An agreement by which one party accepts
responsibility for all damages and other
liability that may arise from a transaction,
relieving the other party of any such liability.
The contract provides complete indemnity.
HOLD WITHOUT ACTION
A designation placed on an export license to
review the exporter's application or shipment
under consideration.
HORIZONTAL EXPORT TRADING COMPANY
An export trading company that exports a range
of similar or identical products supplied by a
number of manufacturers or other producers.
HOUSE-TO-HOUSE
Cargo stuffed by the shipper at his facility and
unstuffed by the consignee at his facility.
HOUSE-TO-PIER
Cargo stuffed
at shipper's facility and unstuffed at the
carrier's facility.
HUB
A central location to which traffic from many
cities is directed and from which traffic is led
to other areas.
HUB AND SPOKE ROUTING
An aircraft routing service pattern that feeds
traffic from many cities into a central hub.
HUNDREDWEIGHT PRICING
Special pricing for multiple piece shipments
traveling to one destination that are rated on
the total weight of the shipment (usually over
100 pounds) as opposed to rating on a per
package basis.
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IATA CODE NUMBER
A two digit alphanumeric code for air shipments
to indicate the export carrier.
IMPORT
To receive goods or services from abroad.
IMPORT CERTIFICATE
A certificate required by certain countries in
order to engage in specific import activities.
IMPORT DUTY
A certain tax, either ad valorem (based on
value), specific (based on measure), or compound
(based on value and measure) that is levied on
imported items.
IMPORT LICENSE
A document required and issued by some national
governments for the importation of goods into
their country.
IMPORTER OF RECORD
The party in whose name the entry is made.
IN BOND
Shipment moving under Customs bond for clearance
at a port other than the port of discharge.
IN TRANSIT
A term used to describe a shipment of goods
which has temporarily stopped in the port of a
country, other than the destination country, for
purposes of re-fueling, to split loads, etc.,
but does not enter the commerce of another
country.
INDEPENDENT ACTION
An action whereby an ocean shipping conference
member carrier sets a tariff or rate that
is different from the established conference
tariff or rate.
INDIVIDUAL VALIDATED LICENSE
A license granted by the Department of Commerce
that grants permission to an exporter to export
a specific amount of goods to a certain
recipient for up to a two year period.
INLAND BILL OF LADING
A bill of lading used in transporting goods
overland to the exporter's international
carrier. Although a through bill of lading can
sometimes be used, it is usually necessary to
prepare both an inland bill of lading and an
ocean bill of lading for export shipments.
INITIAL CARRIER
The transportation line to which a shipment is
tendered at origin by the shipper.
INITIAL POINT
The point at which a shipment originates.
INTER-GOVERNMENTAL MARITIME CONSULTATIVE
ORGANIZATION
Body for definition of dangerous categories or
hazardous cargo (IMCO Classes).
INTERNAL CONTROL PROGRAM
A program to ensure that exports and re-exports
are not made contrary to the Export
Administration Regulations.
INTERNATIONAL AIR TRANSPORT ASSOCIATION
A trade association that oversees participating
air carriers, and promotes the interests of
shippers, passengers, and other travel industry
participants.
INTERNATIONAL CHAMBER OF COMMERCE OF PARIS
An organization based in Paris that promotes
international business.
INTERNATIONAL COMMERCIAL TERMS
Terms of sale that define what costs will be
borne by the buyer/seller, and when and where
the transfer risk of loss and title to goods
will take place. Some terms include the
following: Ex Works; Free Carrier; Free
Alongside Ship; Free On Board; Cost and Freight;
Cost, Insurance and Freight; Carriage Paid;
Carriage and Insurance Paid; Delivered At
Frontier; Delivered Ex Ship; Delivered Ex Quay;
Delivered Duty Unpaid; and Delivered Duty Paid.
INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT
An act which authorizes the president to
investigate, regulate compel or prohibit any
economic transaction in order to protect
national interests. (USA)
INTERNATIONAL LONGSHOREMENS ASSOCIATION
An association of longshoreman that works
towards promoting the good of their society.
INTERNATIONAL MARITIME DANGEROUS GOODS CODE
A code adopted by the International Maritime
Organization that classifies dangerous goods and
hazardous cargo.
INTEGRATED ROUTE
A carrier branded multi-carrier bookable route.
INTENT TO DENY
A letter that informs an applicant of the
decision by the Bureau of Export
Administration's to deny a license application.
INTERCHANGE
Passing freight from one carrier to another
between lines.
INTERLINE FREIGHT
Freight moving from origin to destination over
two or more transportation lines.
INTERMODAL SHIPMENT
A shipment that may be transferred from one form
of transport to another, as from a highway
truck, to a railway freight car, to an ocean
vessel.
INTERMODAL TRANSPORTATION
Using more than one mode of transportation to
deliver shipment.
INTERSTATE COMMERCE
Exchanging of goods between buyers and sellers
in two or more states.
INTERSTATE COMMERCE ACT
An Act of Congress regulating the practices,
rates and rules of transportation lines engaged
in handling interstate shipments within the U.S.
INTERSTATE COMMERCE COMMISSION
The Federal body charged with the duty of
enforcing Acts of Congress affecting common
carriers, including railroads, trucks, buses,
inland water carriers and pipelines in
interstate commerce within the U.S.
INTERIOR POINTS INTERMODAL
A term used by ocean carriers to describe door
to door delivery service. Ocean carriers
frequently quote rates on an IPI basis.
INTERNATIONAL STANDARDS ORGANIZATION
An international, non-governmental body with
headquarters in Geneva. Through a system of
committees, the ISO brings technical experts
together from around the world to negotiate
voluntary recommended technical specifications
on a broad spectrum of items.
INTRASTATE COMMERCE
Business conducted within one state.
INVOICE ARRIVAL NOTICE
Notification that an invoice has arrived.
INWARD CHARGES
Charges incurred by a ship or cargo when
entering a port.
ISRAEL FREE TRADE AGREEMENT
A preferential trade agreement between the
United States and Israel.
ISSUING CARRIER
The carrier by which a tariff is published or
Bill of Lading or other document is created.
ITEMS
Commodities, software, and technology.
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JUST-IN-TIME
A method whereby goods used for production are
delivered to manufacturers immediately before
they are needed. This process avoids stockpiling
and warehousing.
JOURNAL OF COMMERCE
A publication that advises the general public of
news that affects domestic and international
trade. (USA)
JOINT RATE
A rate agreed upon by two or more carriers,
published in a single tariff, and applied
between one point on one line, and another point
on another line.
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KNOCKED-DOWN
Not assembled or unassembled.
KANBAN
A Japanese word for "visible record."
Manufacturing control system in which suppliers
deliver needed parts to assembly line "just in
time" for use.
KEELAGE
A duty charged that permits a ship to enter and
anchor in a port or harbor.
KNOWLEDGE
Awareness that a circumstance exists or is
substantially certain to occur, or an awareness
of a high probability of its existence or future
occurrence. Such awareness is inferred from
evidence of the conscious disregard of facts
known to a person and is also inferred from a
person's willful avoidance of facts.
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LATIN AMERICAN INTEGRATION ASSOCIATION
An organization that supports the integration
and proliferation of preferential agreements
between Latin American participants.
LAID UP
A moored or blocked vessel that is awaiting
employment, repair or clearance.
LANDBRIDGE
Intermodal system of shipping international
cargo across intervening continent, from one
seacoast to another, by special through-trains.
Overland movement of containers having both a
preceding and subsequent movement by ship.
LANDED COST
Total expense of receiving goods at place of
retail sale, including retail purchase price,
transportation costs, duties, value added taxes,
excise tax and other taxes.
LANDING COST
The initial charges for landing imported goods,
such as those for receiving goods from dockside
vessels or from barges to lighters. They may
also cover wharfage or delivery from the dock to
land conveyance or warehouse.
LIGHTER ABOARD SHIP
Use of specially designed barges (or lighters),
in which cargo is loaded directly in the barge.
The barge is then moved via river and canal
networks to a port area to await arrival of an
oceangoing, barge-carrying ship, then hoisted
aboard the ship by cranes or elevators.
LASHING
Restraining Devices to secure cargo/containers
on a vessel.
LAST IN, FIRST OUT
Accounting method of valuing inventory that
assumes latest goods purchased are first goods
used during accounting period.
LAY TIME
Time in which ship is loaded/unloaded and for
which no demurrage is charged.
LESS-THAN-CONTAINERLOAD
A shipment that does not completely fill a
container.
LESS DEVELOPED COUNTRY
An unindustrialized, undeveloped, or developing
nation.
LEG
City-pair traveled non-stop, one point to
another, by the same conveyance.
LESSEE
Party or company with legal possession/control
of vehicle (with/without driver), or other
equipment owned by another under terms of lease
agreement.
LESSOR
Party or company granting legal use of vehicle
(with/without driver), or other equipment to
another party under terms of lease agreement.
LESS-THAN-TRUCKLOAD
Less than quantity of freight required applying
truckload rate charged by motor carriers.
LETTER OF ASSURANCE/LETTER OF ASSURANCE
ENCRYPTION
Special instructions and guidance to help
exporters apply for an export license, classify
commodities or submit notification for
encryption products.
LETTER OF CREDIT
Method of paying for goods, where buyer
establishes credit with local bank, clearly
describing goods to be purchased. Upon receipt
of documentation, bank either is paid by buyer
or takes title to goods and transfers funds to
seller.
LICENSE
Authority issued by a government or
non-governmental agency that regulates some type
of activity.
LICENSE EXCEPTION
An authorization that allows for the export or
re-export, under stated conditions, that
otherwise would require a license.
LICENSING AGREEMENT
A contract whereby the holder of a trademark,
patent, or copyright transfers a limited right
to another party to use a process, sell, or
manufacture an article, or furnish specialized
services covered by the trademark, patent or
copyright to another firm.
LIEN
A type of legal claim upon goods for the
satisfaction of some debt or duty.
LIFT-ON/LIFT-OFF
The acronym meaning "lift-on/lift-off." denoting
the method by which cargo is loaded onto and
discharged from an ocean vessel. Cargo loaded or
unloaded by either ship or shore cranes.
LIGHTER ABOARD SHIP
A containerized concept where the containers are
also barges for further water movement.
LINE HAUL
The transportation of freight between cities; as
distinguished from local pickup and delivery
operations.
LINE-HAUL-COSTS
Costs assigned to line haul service as
distinguished from terminal costs.
LINEHAUL OPERATION
The direct movement of freight between two major
ports by a single ship or carrier.
LINER CARRIAGE
Liner carriage is common carrier water service
by a vessel operator, with an advertised
schedule of a predetermined and fixed itinerary
over a given route at relatively regular
intervals.
LINER CONFERENCE
An agreement among carriers that regularly serve
a particular trade route to establish freight
rates and service levels.
LINER DISCHARGE
Payment by the ship owner for unloading of
cargo, including stevedore wages.
LINERS
Vessels that maintain a service between named
ports on a fixed schedule.
LIQUIDATION
The final review and assessment of duty on
imported merchandise by the Customs Service.
LLOYD'S OF LONDON
An incorporated society of marine and non-marine
underwriters in London. In addition to
insurance, the corporation's subsidiary, Lloyd's
of London Press, collects and disseminates
shipping intelligence.
LLOYD'S REGISTER OF SHIPPING
Yearly document issued by Lloyd's. Contains
tonnage, age, build, nationalities, mode of
power, condition of registered ships, latest
voyage number, reported position, etc..
LOCAL CARTAGE
The pick-up and delivery of freight for line
haul carriers, within a terminal area or
commercial zone.
LONG FORM BILL OF LADING
Carriers Bill of Lading form containing all
terms and conditions of the contract of
carriage.
LONGSHOREMAN
Person employed at ship ports to load/unload
vessels and provide other related maritime
services.
LONG TON
Equivalent to 2,240 pounds or 20 long
hundredweights. Also called a gross ton.
LOSS AND DAMAGE CLAIM
A claim filed as a result of loss/damage
discovered when a package is delivered.
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MANIFEST
A listing of all the shipments on a vessel. It
is primarily used by customs to regulate and
control inbound cargo.
MANUFACTURING RESOURCE PLANNING
A manufacturing planning system that affects
materials management, inventory control, and
production management.
MAQUILADORA
A program designed and promoted by the Mexican
government that allows foreign manufacturers to
ship components into Mexico duty-free for
assembly and subsequent reexport.
MARINE INSURANCE
1) Insurance that compensates the owner of goods
transported overseas in the event of loss that
cannot be legally recovered from the carrier.
2)Insurance against damage or loss of vessel.
MARKING (country of origin)
The physical stamp, wording, or marking on an
article or merchandise that shows in what
country the article or merchandise was produced.
MATERIAL RELEASE ORDER
An order that authorizes the release of
materials.
MAXIMUM PAYLOAD
The amount of weight of cargo which a container
is designed to carry.
MAXIMUM RATE
The highest rate that may be charged.
METRIC TON
2,204.6 pounds.
MEXICAN CERTIFICATE OF ORIGIN
A document that certifies that goods originated
from a specific country.
MEXICAN COMMERCIAL INVOICE
An invoice readily accepted by the Mexican
Customs authorities that provides shipment
details of quantities, weights, values, etc.
MICROBRIDGE
Provides for intermodal transport of freight
from inland city to seaport with through
movement transfer of container freight onto
overseas ship.
MINI-BRIDGE
Overland movement of containers with a preceding
or subsequent movement by ship.
MINIMUM CHARGE
The lowest charge for which a shipment will be
handled.
MINIMUM RATE
The lowest rate that may be charged.
MISSILE ANNEX REVIEW COMMITTEE
An interagency group that develops U.S.
proposals and reviews foreign proposals to
change the Missile Technology Control Regime
Annex.
MISSILE TECHNOLOGY
Technology applicable to the research, design or
production of missiles.
MISSILE TECHNOLOGY ADVISORY GROUP
An advisory group that collects and disseminates
information on missile technology.
MISSILE TECHNOLOGY CONTROL REGIME
A group of nations that have agreed to certain
guidelines for restricting the export and
re-export of dual use items that may contribute
to the development of missiles.
MISSILE TECHNOLOGY EXPORT CONTROL GROUP
An interagency group chaired by the Department
of State that primarily reviews applications
involving controlled items that have missile
technology applications.
MOST FAVORED NATION
A trade policy status that affords all members
within the World Trade Organization, under the
General Agreement on Tariffs and Trade, equal
treatment as other member countries.
MOTOR CARRIER ACT OF 1935
Act of Congress bringing motor common carriers
and contract carriers under Interstate Commerce
Commission (ICC) jurisdiction. (USA)
MOTOR CARRIER ACT OF 1980
Act of Congress that deregulated for-hire
trucking industry. (USA)
MULTILATERAL AGREEMENT
An international pact or agreement involving
three or more parties.
MULTIMODAL
Using more than one transportation mode to move
load of goods.
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NAFTA CERTIFICATE OF ORIGIN
A document that certifies that goods have
originated in a specific country.
NATIONAL CUSTOMS BROKERS & FORWARDERS
ASSOCIATION
An association that gathers and disseminates
information to its member customs brokers and
freight forwarders. (USA)
NATIONAL SECURITY
Any and all actions taken to protect the
interests of a nation.
NATIONAL SECURITY DIRECTIVES
Mandates to work towards the protection of
interests of a nation.
NESTED NET WEIGHT
1) Weight of article without packing and
container. 2) Weight of entire contents of
vehicle. 3) Weight of cargo before
containerization.
NO., NOS.
Number, Numbers
NO LICENSE REQUIRED
A general statement that a specific import or
export item does not require a license.
NON-NEGOTIABLE
Not transferable from one person to another, and
therefore, a document that has no value to
another.
NON-VESSEL OPERATING COMMON CARRIER
Cargo consolidator of small shipments in ocean
trade, generally soliciting business and
arranging or performing containerization
functions at the port.
NORTH AMERICAN FREE TRADE AGREEMENT
The North American Free Trade Agreement agreed
to by the U.S.A., Canada, and Mexico. NAFTA
eliminates certain tariffs, promotes market
access, and facilitates customs administration.
NOT ELSEWHERE SPECIFIED
A shipping term that indicates that the rate
stated in a tariff applies to all commodities
within a given commodity group, except those
appearing under their own rate.
NOTICE OF ARRIVAL
A notice sent promptly to a consignee that
advises that certain freight has arrived at
destination port or airport.
NOT OTHERWISE INDICATED BY NAME
A term used to describe an item or commodity
that is unclassified.
NOT OTHERWISE SPECIFIED
Tariff term used for unclassified commodity
indicating that the rate stated in the tariff
applies unless it is specified otherwise.
NUCLEAR ACTIVITIES
Any activity involved in the proliferation of
nuclear devices.
NUCLEAR NON-PROLIFERATION
A term used to describe the reduction or
elimination of efforts towards nuclear armament.
NUCLEAR PROLIFERATION
Actions that contribute to the advancement of
widespread nuclear armaments.
NUCLEAR REGULATORY COMMISSION
Regulates the transfer of nuclear facilities,
materials and parts with unique nuclear
applications.
NUCLEAR SUPPLIES GROUP
A group of nations that have agreed to
guidelines for restricting the export or
re-export of items with nuclear applications.
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OCEAN BILL OF LADING
See Bill of Lading.
OFF-ROUTE POINTS
Points located off regular route highways of
line-haul carriers, generally served only on
irregular schedules.
OFFICE OF ANTI-BOYCOTT COMPLIANCE
Responsible for implementing the anti-boycott
provisions of Export Administration Regulations.
This office performs three main functions: 1)
enforcing regulations; 2) assisting the public
in anti- boycott compliance; and 3) compiling
and analyzing information regarding
international boycotts. (USA)
OFFICE OF NONPROLIFERATION CONTROLS AND TREATY
COMPLIANCE
The office in Export Administration responsible
for administering the Department's multilateral
export control responsibilities under the
Nuclear Suppliers Group, the Missile Technology
Control Regime and the "Australia Group."
OFFICE OF NUCLEAR & MISSILE OFFICE OF DEFENSE
TRADE CONTROL
The office at the Department of State that
administers licenses, defense services, and
defense (munitions) articles. (USA)
OFFICE OF ENFORCEMENT ANALYSIS
The central point for the collection, research
analysis of classified and unclassified data
bases relative to end-users of export control
concern. (USA)
OFFICE OF EXPORT ENFORCEMENT
Responsible for investigating violations to the
Export Administration Regulations and violations
of the Fastener Quality Act; apprehending
violators; and working with BXA's Office of
Chief Counsel, U.S. Attorneys, and other
officials in the prosecution of violators. (USA)
OFFICE OF EXPORTER SERVICES
The office in Export Administration responsible
for counseling exporters, conducting export
control seminars, and drafting and publishing
changes to the Export Administration
Regulations. (USA)
OFFICE OF FOREIGN ASSETS CONTROL
Part of the Department of the Treasury
responsible for blocking assets of foreign
countries subject to economic sanctions,
controlling participation by U.S. persons,
including foreign subsidiaries, in transactions
with specific countries or nationals of such
countries, and administering embargoes on
certain countries or areas of countries. (USA)
OFFICE OF STRATEGIC INDUSTRIES & ECONOMIC
SECURITY
The office in Export Administration responsible
for implementing programs to ensure that U.S.
Defense industries can meet national security
requirements, for facilitating diversification
of U.S. Defense related industries into civilian
markets, and for promoting the conversion of
military enterprises in Newly Independent States
to civilian application. (USA)
OFFICE OF STRATEGIC TRADE & FOREIGN POLICY
CONTROLS
The office in Export Administration responsible
for implementing the multilateral export
controls under the Wassenaar Arrangement; an
agreement that deals with conventional arms and
related dual-use items. (USA)
OFFICE OF TECHNOLOGY CONTROLS
An agency responsible for all export control
policy issues relating to the Nuclear Suppliers
Group and the Missile Technology Control Regime.
(USA)
OPEN INSURANCE POLICY
A marine insurance policy that applies to all
shipments made by an exporter over a period of
time rather than to one shipment only.
OPERATING AUTHORITY
Route points, and types of traffic that may be
served by a carrier. Authority is granted by
federal, state or local regulatory agencies.
OPERATING COMMITTEE
The interagency working group, chaired by the
Bureau of Export Administration, which reviews
license applications that are in dispute among
reviewing agencies and that have gone beyond
established licensing time frames. (USA)
OPERATING RATIO
Comparison of carrier's operating expenses with
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