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Page No.

Important Abbreviations 6

Introduction of study 9

Objective of study 12

Research Methodology 13

Research Design 14

Scope of the Project 15

Limitations of the study 16

Company Profile 17

Organization Chart 25

Benefits Given by company 26

Theoretical background

Data Analysis and Interpretations 58

Findings 68

Bibliography 72

Glossary 73


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Export Process & Documentation

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INTRODUCTION OF STUDY

This project is all about to know about export import

procedure/ documentation of shipment. This project puts

more focus on to know custom clearness, to make export -

import invoice, to get shipping bill number from custom

department etc. This project will also find out how

Committed cargo Pvt. Ltd. could sustain in the competitive

world by providing vast range of cargo handling through all

instruments which flexible prompt and innovative in

meeting the requirement of the customer. The purpose of

the study was to know about export import documentation

of seaway in the committed cargo Pvt. Ltd.


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OBJECTIVE OF THE STUDY

The main objectives of the research were:

To know about export import process.

To know about the export / Import terminology

To know what are the documents required before and

after sailing the cargo.

To know different type of container used in shipment.


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Services

Air Freight

Custom Clearance

Document Processing

3 PL & Supply Chain Management

Packaging & Warehousing

Tracking & Tracing

DDP: Delivered Duty Paid Shipments.

DDU: Delivered Duty Unpaid Shipments.

CI Shipments: Cargo picked up on cost and insurances terms

CF Shipments: Cargo picked up on cost and freight paid terms

CIF Shipments: Cargo picked up on cost Insurance and freight paid

terms.

FOB: Free on Board Shipment. Only Port to port or Apt to Apt serviceby Carrier.

Ex Works: Pick up if cargo from shippers warehouse/factory.

Multimodal Transport (MT) Document

Services along with logistic documentation evidencing a multimodaltransport contract which can be replaced by electronic datainterchange messages insofar as permitted by applicable law and be

(a)Issued in a negotiable form or,

(b) Issued in a non-negotiable form indicating a named co nsignee.


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ELEMENTS OF LOGISTICS SYSTEM

Cargo ship categorised into followings:-

Liners ships: Liners ship represent the organized sector of the

shipping industries due to their fixed schedules of arrival and

departure, Pre-determined voyages and trade routes and published

ocean freight rates. Liner shipping is governed by shipping conference

and offers the following advantage to shippers: -

Regular sailings to scheduled ports of call.

Stable freight rates for a long period of time which helps the

shipper to quote C & F prices with confidence.

Uniform rates for all shippers.

Coverage of wide range of ports.

Rebates of freight rates based on loyalty agreements.

Tramp ships:-Tramp ships on the other hand have the

following characteristics

They are free to move anywhere on the high seas at their

will.

Their voyage routes and schedules are flexible.

They travel from the port to another port o various trade

routes looking for the cargo and carrying the same to various

routes looking for the cargo and carrying the same to various

destinations around the world.


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They arrive or depart without a fixed route or schedule.

They fix their voyages according to availability of cargo

and as per the requirement of the shippers of these

cargoes.

The freight rates of tram ships depend upon the

demand and supply conditions in the shipping

industry. If there is a glut of shipping space the tramp

freight rates plummet. Whereas in case of shortage ofshipping space, the tramp freight rates shoot up.

The cargo space on the tramps is booked by the

brokers located in major port cities like New York,

London, Rotterdam Hamburg, and Hong- Kong etc.

They work as a link between tramp operators and

shippers.


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TYPE OF CONTAINER USED INTYPE OF CONTAINER USED IN

SHIPMENTSHIPMENT

TANKSTANKS OPEN TOPSOPEN TOPSROOLTRALERSROOLTRALERS

DRY CONTAINERDRY CONTAINERFLAT RACKSFLAT RACKS

HIGHCUBEHIGHCUBE

BULKERSBULKERSREEFERSREEFERS


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In India, ships transport more than 90 per cent of the cargo. It

therefore interesting to study the export processed by ship

documentation related to it.

Processing of an export order-----

i. Exporter operation starts with the receipt of enquiry by the

exporter from importer. Bar on the enquiry exporter submits his

offer giving complete details of products technical specific price

delivery payment terms etc.

ii. After the process negotiations importer sends a purchase order

follow by letter of credit (if applicable).

iii. The exporter manufactures the goods according to thespecification given in purchase order.

iv. As soon as the goods are ready the exporters invites the

representative of Export inspections agency (EIA) for pre

shipment inspection and obtain the certificate of inspect ion.

v. After that, the exporter prepared following documents: ----

INVOICE

PACKING LIST ARE1 FROM EXSICE DEPARTMENT

MARINE INSURANCE POLICY

COPY OF PURCHASEORDER / L/C

vi. Above those documentation sends to CHA by exporter.

vii. Based on these documents CHA agent completes the octroi

formalities, obtain port permit and prepare shipping bill which

is a customs documents.

viii. Custom department check the export cargo on the basis ofinformation provided on the shipping bill. If satisfy then cargo

allow to loaded on the board of ship.

ix. The shipping line gives mate receipts to CHA agents after the

payment of ocean freights and port due obtains the bill of lading


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(B/L) from shipping line .B/L is a proof of dispatch of cargo and

also a negotiable document.

x. After that, CHA agent send various documents back to exporter

which is

Customs attested invoice

Copy of shipping bill

Full set of non board bill of lading.

Copy of purchase order or L/C

Copies of ARE1 Form

SDF form

xi. After that the exporter submitted above these documents for

negotiation to the bank which include :----

Commercial invoice

Packing list

SDF form

Original copy of purchases order

Certificate of origin

Bill of exchange

Shipment advice

After that, bank scrutinizes these documents and if found correct

make payment to exporter against documentations.


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XP RD U A

TRANSPORT DOCUMENT

EXCHANGE CONTROL

DOCUMENT.

PAYMENTDOCUMENT.

MISCELLANEOUS DOCUMENT

CUSTOMS DOCUMENT

CERTIFICATE

INVOICE


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Ed

PORT INVOICE

ELEMENT OF Ed

PORT INVOICE:-

Exporter

Consignee

Invoice No. and Date

Exporter Ref.

Buyer order no and date

O

ther reference

Buyer (other than consignee)

Country of origin of goods

Country of final destination

Terms of delivery and Payment

Pre-carriage by

Place of receipt by pre-carrier

Vessel/ Flight no.

Port of loading

Port of discharge

Final Destination

Marks and Nos. / No & Kind of pkgs.


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Item code

Description of goods

Net weight

Gross weight

Quantity

Rate CIF EURO

Amount CIF EURO

Amount in words

Declaration

:

Authorised signature


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DATA ANALYSIS

How Big is a Cubic Meter?

Calculation: Length x Width x Height divided by 1728 = cubic feetdivided by 35 = cubic meters.

23 BOOK

BOXES

11 MEDIUM

BOXES 8 LARGE BOXES

= one cubic meter

13x13x17 inch s1.5 cubic f t0.043 ubic

eters( ppr

x)

18x18x17 inch s3.1 Cubic F t

0.091 ubic eters( ppr

x)

18x18x24 inch s4.5 Cubic F t

0.125 ubic eters

( ppr

x)

r mix and match:

= one cubic

meter

= one cubic

meter

= one cubic

meter


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Air freight calculation

Introduction

Airlines that are members of the International Air Transport

Association (IATA) are bound by their membership to

comply with tariffs issued by IATA. However since 11thSeptember 2002, airfreight rates are now extremely

negotiable. Airfreight rates cover transportation from theairport of loading to the airport of discharge.

These rates do not include the following:

y

Collection of air cargo from the consignor's/exporterspremises

y Delivery of cargo from the airport of destination to theconsignee's premises

y Storage of cargo before or after loading

y Customs clearance in the country of destination

y Any duties and taxes that may have to be paid

y Insurance

Chargeable/volumetric weight

Airline freight rates are based on a "chargeable weight",because the volume or weight that can be loaded into an

aircraft is limited. The chargeable weight of a shipment willbe either the "actual gross mass" or the "volumetric weight",

whichever is the highest. The chargeable weight iscalculated as follows: 1 metric ton = 6 cubic metres. In

order to establish if the cargo will be a weight or volumetricbased shipment.

Step 1

Measure the parcel/cargo along the greatest length, widthand height of that parcel. For example; 100 cm (L) X 100 cm(W) X 100 cm (H) = 1 000 000 cm3. Next, weigh the parcel;assume it weighs 150kg.


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Step 2

Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You

have now converted the centimeters (cm) into kilograms (kg)

Step 3

Now compare the weight to the volume. If the weight is 150

kg then the airline would base the freight on the higheramount being: 166,66 kg

Air freight calculations

The airline calculates freight based on weight or volume,

which ever yields the greatest amount. Airlines quote freightrates based on the following rate structures:

y A basic minimum charge per shipment.

y General cargo rates quoted for per kilogram. This rate

applies without reference to the nature or descriptionof the parcel, which is to be freighted.

y Specific commodity rates apply to certain goods ofspecific descriptions, such as fresh produce. These

rates are lower than the general cargo rate, and they

provide breakpoints at which the level of the ratereduces further.

Example:

0 - 50 Kg @ R22.00/per kg

50 - 100 Kg @ R19.00 per kg100 - 150 Kg @ R17.00 per kg

Unit Load Device charges

These rates are charged per container/ULD withoutreference to the commodity loaded therein. Calculation of

freight rates:

Let us assume the following figures:

The freight rate is R18.00 per kgThe weight of the parcel is 300 kg


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The dimensions are: 114,6 cm X 120,4cm X 132,5 cm(round the cm's up or down)

Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6000 = 305.9 kg (having converted cm's to kg's now round upthe kg's to the next half a kilogram = 306 kg.

As the freight rate quoted by the airline is R18.00 per kg, wecalculate the price as follows:

306 kg X R18/kg = R5 508.00

The freight rate will not be calculated on the actual mass

300 kg X R18.00 = R5 400.00 as the airline will always usethe greater amount either the kg, or volumetric weight.

Consolidation

Consolidation is an economical method of moving cargo byemploying a consolidator. The consolidator receives cargo

from a number of suppliers/shippers and then combinesthese cargoes into one consignment by packing the goods

into a Unit Load Device. The consolidator then books theUnit Load Device with an airline. The supplier/shipper

would have a contract of carriage with the consolidator of

the cargo and in turn the airline would have a contract ofcarriage with the consolidator. The airline would issue anair waybill to the consolidator when accepting the Unit Load

Device and in turn the consolidator would issue thesupplier/shipper with a house air waybill.

The air waybill

The air waybill, unlike the ocean bill of lading is not adocument of title to the goods described therein, however it

does perform several similar functions these are:

y It is a receipt for the goods

y It is evidence of the contract of carriage between theexporter and the carrier

y It incorporates full details of the consignor/shipper,the consignee/receiver and the consignment/goods

y It is an invoice showing the full freight amount


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y It must be produced, be it in an electronic format, atthe airport of discharge for clearing purposes

All copies of the air waybill, together with the commercial

invoice, packing list, certificate of origin and any other

document which may be necessary for clearing the goodsthrough customs, these documents are carried in the flightcaptain's bag.

Sea freightcalculations

Introduction

Seafreight calculations can broadly be divided into two maincomponents; breakbulk and containerised. In this sectionwe deal with how you should calculate the freight costs of

both of these two types of seafreight.

Break bulk cargo calculations

Break bulk cargo, is cargo that is unitised, palletised orstrapped. This cargo is measured along the greatest length,

width and height of the entire shipment. The cargo is also

weighed. Shipping lines quote break bulk cargo per "freightton", which is either 1 metric ton or 1 cubic metre, which

ever yields the greatest revenue.

Example:

A case has a gross mass of 2 Mt.

The dimensions of the cargo are:

2.5 X 1 X 2 metresThe tariff rate quoted by the shipping line is: USD 110.00

weight or measure (freight ton)

Step 1

Multiply the metres 2.5 X 1 X 2 = 5 metres Compare to the

mass = 2 Mt.


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Step 2

Calculate the freight with the greater amount either themass or the dimension. 5 X USD 110.00 = USD 550.00

Freight would be paid on the measurement and not theweight. All shipping lines carrying cargo in a break-bulkform insist on payment based on a minimum freight charge

which is equivalent to one freight ton, one cubic metre orone metric ton.

Full Container load calculations and surcharges

Freight rates for containers are based on the container as a

unit of freight irrespective of the commodity or commoditiesloaded therein, (FAK) Freight All Kinds. The shipping lines

quote per box (container) either a six or twelve metrecontainer. From time to time, abnormal or exceptional costsarise in respect of which no provision has been made in the

tariffs. For example a shipping line cannot predict the

movement of the US Dollar or the sudden increase of theinternational oil price. These increases have to be taken intoaccount by the shipping line in order to ensure that the

shipping line continues to operate at a profit. Theseincreases are called surcharges. All shipping lines

accordingly retain the right to impose an adjustment factorupon their rates taking into account these fluctuations. Allsurcharges are expressed as a percentage of the basic

freight rate. Surcharges are regularly reviewed in the light of

unforeseen circumstances, which may arise and bring causefor a surcharge increase.

Bunker Adjustment Factor (BAF)

"Bunkers" is the generic name given to fuels and lubricantsthat provide energy to power ships. The cost of bunker oil

fluctuates continually and with comparatively little warning.


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Example:Freight rate: Port Elizabeth to Singapore

Freight rate: US Dollar: 1 250.00 per 6-M container+ BAF 5.2%

US Dollar 1 250.00 X 5.2% = US Dollar 65.00

Add the two amounts togetherFreight rate: U S Dollar 1 315.00

Currency Adjustment Factor (CAF)

The currency adjustment factor is a mechanism for taking

into account fluctuations in exchange rates, these

fluctuations occur when expenses are paid in one currency

and monies earned in another by a shipping company. Thecurrency adjustment factor is a mechanism for taking into

account these exchange rate fluctuations. It is alwaysexpressed as a percentage of the basic freight and is subject

to regular review.

Example:

Freight rate: Port Elizabeth to Singapore

Freight rate: US Dollar: 1 250.00 per 6-M container+ CAF 6.3%US Dollar 1 250.00 X 6.3% = US Dollar 78.75Add the two amounts together

Freight rate: U S Dollar 1 328.75

War Surcharge

The outbreak of hostilities between nations can have aserious effect upon carriers servicing international trade

even though they may sail under a neutral flag. Carrierssailing within the vicinity of a war zone may impose a war

surcharge on freight to compensate for the higher risks

involved and the higher levels of insurance premium, which

they may be obliged to pay.


Freight rate: US Dollar: 1 250.00 per 6-M container+ WAR 5%US Dollar 1 250.00 X 5% = US Dollar 62.50


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Add the two amounts togetherFreight rate: U S Dollar 1 35.50

All of the above surcharges may be applied to a single

freight rate.


Freight rate: US Dollar: 1 250.00 per 6-M container+ BAF 5.2%

+ CAF 6.3%

+ WAR 5%

Total amount of surcharge 16.5%

US Dollar 1 250.00 X 16.5% = US Dollar 206.25(add to freight rate)

US Dollar 1 456.25

Port Congestion Surcharge

Congestion in a port for a period of time can involveconsiderable idle time for vessels serving that port. When aship lies idle, this creates a huge amount of loss for the

ship's owner. Shipping lines therefore have the right toimpose a surcharge on the freight to recover revenue lost.

Another factor which influences port congestion surcharge

would be labour disputes. Port congestion surcharges arecalculated as a percentage of the freight rate as expressed in

the previous examples.

Consolidation services

The consolidator or groupage operator hires a container

from a shipping line and then sells that space to his

clients/exporters. The benefit for the exporter is that smallquantities which, would not fill a full container load, can be

shipped by sea freight in a shipping container as analternative to air freighting the goods. The consolidator

would charge per metric ton or cubic metre, which everyields the greatest. Example: US Dollar 89.00 Weight or

Measure. The shipping line would have a contract ofcarriage with the consolidator and in turn the consolidatorwould have a contract of carriage with the exporter. The

consolidator would be issued with an combined through bill


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of lading from the shipping line and then present theexporter with a house bill of lading (See bill of lading below)

The bill of lading

The bill of lading performs the following functions:

y A contract of carriage between the shipper of the cargoand the carrying shipping company.

y The name of the shipper and the receiver of the goods

the consignee.

y The contents of the packages as declared by theshipper.

y Shipping details such as: port of loading and the portof discharge.

y

The bill of lading is a freight invoice and indicates ifthe freight costs have been prepaid by the exporter or

will be paid by the importer, "freight collect".

y The bill of lading states the number of packages,

weight and dimension of the shipment.

y It is a document of title to the goods stated thereon.

Every original bill of lading signed by or on behalf of theshipping company is a document of title to the underlying

goods. This special function of a bill of lading is achieved by

a form of words which state:

"In witness whereof theundersigned on behalf of the shipping company has signed

three bills of lading all of this tenor and date, one of which

being accomplished the others to stand void"."Accomplishing" the bill of lading requires the surrender to

the shipping line or its agents in the port or place ofdestination one of the signed original bills of lading duly

endorsed by the consignee/importer. Unless and until oneof the original bills of lading as described above is

surrendered, the shipping line will not release the cargo to

the consignee/importer. Upon surrender of any one of theoriginals the other originals bills of lading become void.

Endorsed Bills ofLading

Bills of lading can only be issued with the words "shippedon board", if the cargo has actually been loaded onto the

named vessel at the port of loading. By insisting that the


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exporter supplies the importer with a "shipped on board" billof lading, the importer obtains conclusive evidence that the

goods have been loaded on board the intended vessel.

Some importers insist that the exporter presents "shipped

on board" bills as a condition for payment. "Received forshipment", bills of lading can be issued as soon as the goodshave been delivered into the custody of the carrying

shipping company or its agent either at the point of receiptor at the port of loading. Thus, a 'received for shipment", bill

of lading will only indicate the ship in which the cargo isintended to be loaded on. The risk remains that the loadingmay, for many reasons delayed or the cargo may not be

loaded at all.

Banks responsible for the payment of funds in payment forgoods under letters of credit will not release the funds if the

bill of lading has been endorsed "received for shipment".


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IMPORTER

EXPORTER

C & F AGENT

EXPORTER

OMMER IAL INVOI E

PA KING LIST

DUPLI ATE OPYGR ORM

NEGOTIABLE OPIES

O B/L

ORIGINALL/

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EXPORTER IMPORTER

CERTI ICATEOINSPECTION

INVOICE PACKINGLIST

GRORM

ARE1ORM

MARINEINSURANCEPOLICY

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ATTESTEDINVOICE

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COPY

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DUPLICATE

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DUPLICATE

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BIBLIOGRI

PHP

Ex o t Im o t Do me tatio - P of. D.C. aiLogi ti i I te atio al B i e - P of. Rajeev A e ka

REFEREQ CE R IQ S

ERQ E S

www. ommittedg o . omwww.google. o.i

www.a k. omwww.exit. et


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GLO R I ER IO L FREIGH

ERM

T

BI -

T

utomated Brokerage Interface: Is a system available to U.U

.Customs Brokers with the computer capabilities and customs certification

to transmit and exchange customs entries and other information, facilitating

promptrelease of imported cargo.T

cceptance:T

time draft (or bill ofexchange) which the drawee has

accepted and is unconditionally obligated to pay at maturity. V rawee's act

in receiving a draft and thus entering into the obligation to pay its value at

maturity.T

n agreement to purchase goods under specified terms.T

dd Hoc Charter:T

one-offcharter operated at the necessity ofan airline

or charterer.T

d Valorem ("acco

rding to the value"):

T

fixed pe

rcentage o

fthe value o

fgoods that is used to calculate customs duties and taxes.

T

dmiralty Court: Is a court having jurisdiction over maritime questions

pertaining to ocean transport, including contracts, charters, collisions, and

cargo damages.T

dvanceT

gainstV ocuments: Load made on the security of the documents

covering the shipment.T

dvisingBank:T

bank thatreceives a letter ofcreditfrom an issuing bank,

verifies its authenticity, and forwards the original letter ofcredit to the

exporter without obligation to pay.T

dvisory Capacity:T

term indicating that a shipper's agent or

representative is not empowered to make definite decisions or adjustment

without the approval of the group or individual represented.T

ffiliate: Is a company that controls, or is controlled by another company,

or is one of two or more commonly controlled companies.T

irfreightment:T

n agreement by a steamship line to provide cargo space

on a vessel at a specified time and for a specified price to accommodate an

exporter or importer, who then becomes liable for payment even though

he is later unable to make the shipment.T

gencyT

greement:W

he steamship line appoints the steamship agent and

defines the specific duties and areas ofresponsibility of that agent.T

ir CargoT

gent: Is a type offreightforwarder who specializes in air cargoand acts for airlines that pay him afee (usually 5%). He is registered with

theInternationalT

irW

ransportT

ssociation, IT W T

( U ee alsoT

ir Freight

Forwarder; Forwarder, Freight Forwarder, Foreign Freight Forwarder).T

ir Freight Forwarder: Is a type offreightforwarder who specializes in air

cargo. He usually consolidates the air shipments ofvarious exporters,

charging them for actual weight and deriving his profit by paying the airline


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the lower consolidated rate. He issues his own air waybills to the exporters,

is licensed by the CX

B (CivilX

eronautics Board) and has the status ofan

indirect air carrier ( Y ee alsoX

ir CargoX

gent, Forwarder, Freight

Forwarder, Foreign Freight Forwarder.)X

ir Waybill:X

bill of landing that covers both international and domestic

flights transporting goods to a specified destination.

his is a non-negotiable documents ofair transport that serves as areceiptfor the

shipper, indicating that the carrier has accepted the goods listed and

obligates itself to carry the consignment to the airport ofdestination

according to specified conditions.X

I` X

: InternationalX

ir

ransportX

ssociation, IX ` X

, (French, German).X

ll-Risk Clause: Is an insurance provision that all loss or damage to goods

is insured except that of inherent vice (selfcaused). ( Y eeX

ll Risk

Insurance).X

ll Risk Insurance: Is a clause included in marine insurance policies to

cover loss and damage from external causes, such as fire, collision,pilferage, etc. but not against innate flaws in the goods, such as decay,

germination, nor againstfaulty packaging, improper packing/ loading or

loss ofmarket, nor against war, strikes, riots and civil commotions ( Y ee

Marine Insurance)X

longside:X

phrase referring to the side ofa 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 abroad the ship.X

rbitration Clause: Is a standard clause to be included in the contracts of

exporters and importers, as suggested by theX

mericanX

rbitrationX

ssociation. It states that any controversy or claim will be settled by

arbitration in accordance with the rules of theX

mericanX

rbitrationX

ssociation.X

ssignment:

he transfer of the rights, duties, responsibilities and/or

benefits of an agreement, contract, orfinancial instrument to third party.X

ssignment ofProceeds:X

stipulation within a letter ofcredit in which

some or all of the proceeds are assigned from the original beneficiary to

one or more additional beneficiaries.X

.

.:X

merican

erms (Marine Insurance)X

term used to differentiate

between the conditions ofX

merican Policies from those ofother nations,

principally England.X

utomated Brokerage Interface (X

BI):X

n electronic system allowing

customhouse brokers and importers to interface via computer with the U Y

Customs Y ervice for transmitting entry and entry summary data on

imported merchandise.X

utomated Commercial Y ystem (X

C Y ):

he electronic system of the U Y

Customs Y ervice, encompassing a variety of industry sectors, that permits

online access to information in selected areas.


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Automated Manifest a ystem (AM a ):b

he electronic system allowing a

manifest inventory to be transmitted to the U a Customs a ervice data center

by carrier, port authority or service center computers.

BAA: British Airports Authority

BACA: Baltic Air CharterAssociation

Balance of

b

rade:

b

he difference between a country's total imports andexports; ifexports exceed imports, favorable balance of trade exists, ifnot,

a trade deficit is said to exist.

Barter:b

rade in which merchandise is exchanged directlyfor other

merchandise without use ofmoney. Barter is an important means of trade

with countries using currency that is notreadily convertible.

B/B: ( a ee Break-Bulk Cargo)

Belly Cargo: Freight accommodation below the main deck.

Beneficiary: Afirm or person on whom a letter ofcredit has been drawn.b

he beneficiary is usually the seller or exporter.

BermudaA

greement:A

n agreement concluded in 1946 between the U.K.and the U. a ., designed to regulate future international air traffic. Most

governments accept its principles and follow it inter alia by limiting traffic

rights on international routes to one or two carriers.

Berth: Is the place beside a pier, quay or wharfwhere a vessel can be

loaded or discharged.

Berth Liner a ervice: Is aregular scheduled steamship line with regular

published schedules (port ofcall ) from and to defined trade areas.

Berth orLinerb

erms: Is an expression covering assessment ofocean

freightrates generally implying that loading and discharging expenses will

be for ship owner's account, and usually applyfrom the end ofship's tackle

in port of loading to the end ofship's tackle in port ofdischarge.

Bill ofLading: Adocument that establishes the terms ofa contract between

a shipper and a transportation company under which freight is to be

moved between specified points for a specified charge. Usually prepared

by the shipper on forms issued by the carrier, it serves as a document of

title, contract of carriage, and areceiptfor goods. Also see Air Waybill and

Ocean Bill ofLading.

Bonded Warehouse: Awarehouse storage area or manufacturingfacility in

which imported goods may be stored or processed without payment of

customs duties.

Brusselsb

ariff c omenclature c umber (BTN): The customs tariffnumber

used by most European nations. The United a tates does not use the BTN,

but a similar system known as the Harmonize Tariff a chedule.

CAA: Is the Civil Aviation Authority. Government bodyresponsible for

regulating

U.K. airlines.


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Cabotage: Is where cargo is carried on what is essentially a domestic flight

and therefore not subject to international agreements thatfix setrates.

Cabotage rates are negotiable between shipper and airline and apply on

flights within a country and to its overseas territories.

CAD Can have two meanings in the industry

CAD: The acronym meaning "cash against documents," a method ofpaymentfor goods in which documents transferring title are given to the

buyer upon payment ofcash to an intermediary actingfor the seller.

CAD/CAM: ComputerAided Design/ComputerAided Manufacturing.

Cage: The transporting ofgoods by truck to orfrom a vessel, aircraft, or

bonded warehouse, all under customs custody.

Cargo: Is merchandise/commodities/freight carried by means of

transportation.

Cargo Receipt: Is areceipt ofcargo for shipment by a consolidator (used in

ocean freight).

Carnet:A

customs document permitting the holder to carry or sendmerchandise temporarily into certain foreign countries (for display,

demonstration, or similar purpose) without paying duties or posting bonds.

Carriers(s) Containers or d hipper(s) Containers: The term Carrier(s)

Container(s) or d hipper(s) Container(s) means containers over which the

carrier or the shipper has control either by ownership or by the acquisition

thereofunder lease orrental from container companies or container

suppliers orfrom similar sources. Carriers are prohibited from purchasing,

leasing orrenting shipper owned containers.

Carrier, Common: Apublic or privately owned firm or corporation that

transports the goods ofothers over land, sea, or through the air, for a stated

freightrate. By governmentregulation, a common carrier is required to

carry all goods offered ifaccommodations are available and the established

rate is paid.

Cartel: Is an association ofseveral independent national or international

business organizations thatregulates competition by controlling the prices,

the production, or the marketing ofa product or an industry.

Cash in Advance (C.I.A.): Paymentfor goods in which the price is paid in

full before shipment is made. This method is usually used onlyfor small

purchases or when the goods are built to order.

Cash AgainstDocuments (CAD): Paymentfor goods in which a

commission house, or other intermediary, transfers title documents to the

buyer upon payment in cash.

C.C.E.F.: Is a Customs Centralized Examination Facility.

Certificate ofAnalysis: Is a certificate required by some countries as proof

of the quality and composition offood products or pharmaceuticals. The

required analysis may be made by a private or government health agency.

The certificate must be legalized by aforeign consul of the country


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CIF (cost, insurance and freight): g eller is responsible for inland freight,

ocean/airfreight, and marine/air insurance to the port offinal entry in the

buyer's country. The buyer is responsible for inland transportation to his or

her location.

Chargeable Kilo: Rate for goods where volume exceeds six cubic metres to

the tonne.Charter: Originally meant aflight where a shipper contracted hire ofan

aircraftfrom an airline. Has usually come to mean any non-scheduled

commercial service.

Charter Party: The contract between the owner ofa ship and the individual

or company chartering it. Among other specifications, the contract usually

stipulates the exact obligations of the ship-owner (loading the goods,

carrying the goods to a certain point, returning to the charterer with other

goods, etc.); or it provides for an outright leasing of the vessel to the

charterer, who then is responsible for his own loading and delivery. In

either case, the charter party sets forth the exact conditions andrequirements agreed upon by both sides.

Charter partyBill ofLading: Abill of lading issued under a charter party. It

is not acceptable by banks under letters ofcredit unless so authorized in

the credit.

Chassis: Awheel assemble including bogies constructed to accept

mounting ofcontainers.

CIA: The acronym meaning "cash in advance," a method ofpaymentfor

goods whereby buyer pays seller in advance ofshipment ofgoods.

C.I.F.: Is a quoted price includes cost ofgoods, insurance and freight.

C.I.T.E. g .: Committee on International Trade ofEndangered g pecies.

Class Rates: A class ofgoods or commodities is a large grouping ofvarious

items under one general heading. All items in the group make up a class.

The freightrates that apply to all items in the class are called class rates.

Classification: Is a customs term. The placement ofan item under the

correct number in the customs tarifffor duty purposes. At times this

procedure becomes highly complicated; it is not uncommon for importers

to resort to litigation over the correct duty to be assessed by the customs on

a given item.

Claused Bill ofLading: Is a bill of lading which has exemptions to the

receipt ofmerchandise in "apparent good order" noted.

Clean Bill ofLading: Is a bill of lading which covers goods received in

"apparent good order and condition" and without qualification.

Clean Draft: Is a draft to which no documents have been attached.

cm: Centimeters

CNS: Cargo NetworkServices, an IATA company. See IATA.

Collective Paper: All documents (commercial invoices, bills of lading, etc.)

submitted to a buyerfor the purpose ofreceiving payment for a shipment.


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Commercial Risk: Risk carried by the exporter (unless insurance is

secured) that the foreign buyer may not be able to payfor goods delivered

on an open account basis.

Confirmed Letter ofCredit: A letter ofcredit, issued by aforeign bank,

with validity confirmed by a U.S. bank. An exporter who requires a

confirmed letter of creditfrom the buyer is assured ofpayment by the U.S.bank even if the foreign buyer or the foreign bank defaults.

Conference: A group ofvessel operators joined togetherfor the purpose of

establishingfreightrates.

RoRo/Container Vessel - Ship designed to accommodate containers and

roll-on roll-offcargo. It can be selfsustaining.

RoRo/Container/Break-bulk Vessel - Designated to accommodate three

types ofcargo, usually selfsustaining.

Commercial Code: Apublished code designed to reduce the total number

ofwords required in a cablegram.

CommoditySpecialist:A

n official authorized by the U.S. Treasury todetermine proper tariffand value of imported goods.

Consignee: Person orfirm to whom goods are shipped under a bill of

landing.

ConsularDeclaration: Aformal statement, made to the consul ofaforeign

country, describing goods to be shipped.

Consular Invoice: Adocument, required by some foreign countries,

describing a shipment ofgoods and showing information such as the

consignor, consignee, and value of the shipment. Certified by consular

official of the foreign, it is used by the country's customs official to verify

the value, quantity, and nature of the shipment.

Combi: Is an aircraft with pallet or container capacity on its main deck as

well as in its belly holds.

Combination Vessels: Container/Break-bulk vessel - this type ofship

accommodates both container and break-bulk cargo. It can be either self

sustaining or non-selfsustaining.

Commercial Invoice: An itemized list ofgoods shipped, usually included

among an exporter's collection papers.

Common Carrier: Afirm or individual that transports persons or goods for

compensation.

Confirmed Letter ofCredit: A letter ofcredit, issued by aforeign bank with

validity confirmed by a U.S. bank.

Confiscation: The taking and holding ofprivate property by a government

or an agency actingfor a government. Compensation may or may not be

given to the owner of the property.

Consignee: The individual or company to whom a seller or sipper sends


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merchandise and who, upon presentation ofnecessary documents, is

recognized as merchandise ownerfor the purpose ofdeclaring and paying

customs duties.

Consignee Marks: A symbol laced on packages for identification purposes;

generally consisting ofa triangle, square, circle, diamond, cross, with letters

and/or numbers as well as port ofdischarge.Consignment: Is the physical transfer ofgoods from a seller (consignor)

with whom the title remains, to another legal entity (consignee) who acts as

a selling agent, selling the goods and remitting the new proceeds to the

consignor.

Consignor: A term used to describe any person who consigns goods to

himselfor to another party in a bill of lading or equivalent document. A

consignor might be the owner of the goods, or afreightforwarder who

consigns goods on behalfofhis principal.

Consolidated Shipment: An arrangement whereby various shippers pool

their boxed goods on the same shipment, sharing the total weight chargefor the shipment.

Consolidator: An agent which brings together a number ofshipments for

one destination to qualifyfor preferential airline rates.

Consortium: The name for an agreement under which several nations or

nationals (usually corporations) ofmore than one nation, join togetherfor

a common purpose. It could be for management or exploitation ofa

natural resource, as in the case ofsome international petroleum

consortiums.

Consul: A government official residing in aforeign country, charged with

representing the interests ofhis or her country and its nationals.

ConsularDocuments: Special forms signed by the consul ofa country to

which cargo is destined.

Consular Invoice: Adocument, required by some foreign countries,

describing a shipment ofgoods and showing 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: The term container means a single rigid, non-disposable dry

cargo, insulated, temperature controlled flatrack, vehicle rack portable

liquid tank, or open top container without wheels or bogies attached,

having not less than 350 cubic feet capacity, having a closure or

permanently hinged door that allows ready access to the cargo (closure or

permanently hinged door not applicable to flatrack vehicle rack or portable

liquid tank). All types ofcontainers will have constructions, fittings and

fastenings able to withstand without permanent distortion, all the stresses

that may be applied in normal service use of continuous transportation. All

containers must bear manufacturer's specifications.


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ContainerShip: Ocean going ship designed to carry containers both

internally and on deck. Some are selfsustaining.

Containerization: Is a conceptfor the ultimate unitizing ofcargo used by

both steamship lines and air cargo lines. Containers allow a greater amount

ofcargo protection from weather, damage, and theft.

Containers (Air Cargo): Many types ofair cargo containers are offered:The containers are designed in various sizes and irregular shapes to

conform to the inside dimensions ofa specific aircraft.

Containers (Ocean): Are designed to be moved inland on its own chassis

and can be loaded at the shippers plantfor shipment overseas. Basic types

ofcontainers are; dry van, open top, halfhigh, hi cube, flatrock, tank

container, refrigerated container, insulated container, tilting container.

Average outside dimensions are generally 20, 35, and 40 feet in length, 8

feet wide and 8 feet high standard.

Continuous Bond: Is an annual customs bond insuring compliance with all

regulations and requirements.Contract Rate: Is a charge levied by carriers selling capacityforward over a

given route to a shipper offorwarder; the client is therefore assured of

capacity, which must be paid forregardless of load carried.

Coordinating Committee for Export Controls (COCOM): An informal

group of15 western countries established to prevent the export ofcertain

strategic products to potentially hostile nations.

CorrespondentBank: Abank that, in its own country, handles the business

ofaforeign bank.

Countertrade: Is areciprocal trading arrangement, which includes a variety

of transactions involving two or more parties.

CountervailingDuties: Is a special duties imposed on imports to offset the

benefits ofsubsidies to producers or exporters of the exporting country.

Credit Risk Insurance: Insurance designed to coverrisks ofnonpayment

for delivered goods.

Customs Bonded Warehouse: Is a warehouse where imported goods may

be stored for a total of three years without the payment ofduty or taxes.

Customhouse Broker: An individual orfirm licensed to enter and clear

goods through Customs.

Customs Court: Is the court to which importers might appeal or protest

decisions made by Customs officers.

Customs Tariff: Is a schedule ofcharges assessed by the federal

government on imported goods.

Customs Union: Is an agreement between two or more countries in which

they arrange to abolish tariffs and other importrestrictions on each other's

goods and establish a common tarifffor the imports ofall other countries.


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CWO: The acronym meaning "cash with order," a method ofpaymentfor

goods where cash is paid at the time oforder and the transaction becomes

binding on both buyer and seller.

Ch

(Containerh

ard): The term Ch

means the location designated by

Carrier in the port terminal areaforreceiving, assembling, holding, storing

and delivering containers, and where containers may be picked up byshippers orre-delivered by consignees. No container yard (C

h

) shall be a

shipper's, consignee's,

NVOCC's, or aforwarder's place ofbusiness, unless otherwise provided.

Ch

/CFS (House to Pier): The term Ch

/CFS means containers packed by

shipper ofcarrier's premises and delivered by shipper to Carrier's Ch

, all at

shipper's risk and expense and unpacked by Carrier at the destination port

CFS.

Ch

/Ch

(House to House): The term Ch

/Ch

means containers packed by

shipper offCarrier's premises and delivered by shipper to Carrier's Ch

and

accepted by consignee a t Carrier's C

h

and unpacked by consignee offCarrier's premises, all at the risk and expense ofcargo.

Dangerous Goods: Articles or substance capable ofposing a significantrisk

to health, safety or property, and that ordinarilyrequire special attention

when being transported.

DAT: Dangerous articles tariff.

Date Draft: Draft that matures in a specified number ofdays after the date

it is issued, withoutregard to the date ofAcceptance. See Draft.

DCA: Department ofCivil Aviation. Commonly used term to denote the

government department ofanyforeign country that is responsible for

aviation regulation and granting traffic rights.

DDP: Delivered duty paid. Also known as "free domicile."

DDU: Delivered duty unpaid. Reflects the emergence of "door -to-door"

intermodal or courier contracts or carriage where only the destination

customs duty and taxes (ifany) are paid by consignee.

Dead Leg: Is a sectorflown without payload.

Dead Freight: Is freight charges paid by the charterer ofvessel for the

contracted space, which is left partially unoccupied.

Deck Cargo: Is cargo carried on deckrather than stowed under deck. On

deck carriage is required for certain commodities, such as explosives.

Deferred Payment Credit: Type of letter ofcredit providingfor payment

some time after presentation ofshipping documents by exporter.

Deferred Rebate: The return ofa portion of the freight charges by a carrier

or a conference shipper in exchange for the shipper giving all or most of

his shipments to the carrier or conference over a specified period of time

(usually 6 months). Payment of the rate is deferred for afurther similar

period, during which the shipper must continue to give all or most ofhis

shipments to the rebating carrier or conference. The shipper thus earns a


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furtherrebate which will not, however, be paid without an additional

period ofexclusive or almost exclusive patronage with the carrier of

conference. In this way, the shipper becomes tied to the rebating carrier or

conference. Although, the deferred rebate system is illegal in U.S. foreign

commerce, it generally is accepted in the ocean trade between foreign

countries.Demurrage: Apenaltyfor exceedingfree time allowed for loading or

unloading at a pier orfreight terminal. Also a charge for undue detention

of transportation equipment or carriers in port while loading or unloading.

Density: Density means pounds per cubic foot. The cubage of loose

articles or pieces, or packaged articles ofarectangular, elliptical or square

shape on one plane shall be determined by multiplying the greatest straight

line dimensions of length, width and depth in inches, including all

projections, and dividing the total by 1728 (to obtain cubic feet). The

density is the weight of the article divided by the cubic feet thus obtained.

DEQ:

Delivered ex quay/duty paid.

Destination Control Statement: Any ofvarious statements that the U.S.

governmentrequires to be displayed on export shipments and that specify

the destination for which export of the shipment has been authorized.

D.F.: Dead Freight

DGR: Dangerous Goods Requirement.

Dim Weight: (Dimensionalized Weight) Determined by calculating length

x width x height and dividing by 166. Charged when actual weight is less

than the dim. weight.

Dock Receipt: When cargo is delivered to a steamship company at the

pier, the receiving clerk issues a dockreceipt.

Documents AgainstAcceptance (D/A): Instructions given by a shipper to a

bank indicating that documents transferring title goods should be delivered

to the buyer (or drawee) only upon the buyer's acceptance of the attached

draft.

DOT: Department ofTransportation

Draft (orBill ofExchange): An unconditional order in writingfrom one

person (the drawer) to another (the drawee), directing the Drawee to pay a

specified amount to a named Drawer at afixed or determinable future

date.

Drawback: AU.S. customs law that permits an American exporter to

recover duties paid on imported foreign raw materials or components

included in products that are subsequently exported out of the United

States.

Drawee: The individual orfirm on whom a draft is drawn and who owes

the stated amount to the drawer.

DryLease: The rental ofa "clean" aircraft without crew, ground staffor

supporting equipment.


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DST: The acronym meaning "double stack train" service, which is the

transportrail between two points ofa trainload ofcontainers with two

containers, one on top of the other, per chassis.

d.w.: Deadweight (tons of2,240 lbs.)

d.w.c.: Deadweightfor cargo

E.A.O.N.: Except as otherwise noted.EDI or EDIFACT: Electronic Data Interchange forAdministration,

Commerce and Transport, from the UN-backed electronic data

interchange standards body, to create electronic versions ofcommon

business documents that will work on a global scale. One digital document

under consideration, the International Forwarding and Transport Message

will do the jobs ofsix different electronic messages currently in use.

EmptyLeg: Results from an aircraft primarily chartered outbound having

cargo capacity inbound or vice versa. A cheap form ofairfreight.

Endorsement in Blank: Commonly used on a bank check, an

endorsement in blank is an endorsement to the bearer. It contains only thename of the endorser and specifies no particular payee. Also, a common

means ofendorsing bills of lading dawn to the order of the shipper. The

bills are endorsed "For..." (see Bill ofLading, Order).

Eurodollars: U.S. dollars on deposit outside of the United States to include

dollars on deposit atforeign branches ofU.S. banks, and dollars on

deposit with foreign banks.

"Ex": Signifies that the quoted price applies only at the indicated point of

origin (e.g. "price ex factory" means that the quoted price is for the goods

available at the factory gate of the seller).

Ex. B.L.: Exchange bill of lading.

ExportBroker: The individual who brings together buyer and sellerfor a

fee, eventually withdrawingfrom any transaction.

ExportDeclaration: Aform to be completed by the exporter or their

authorized agent and filed in triplicate by a carrier with the United State

Collector ofcustoms at the point ofexit. It serves a twofold purpose:

1. Primarily, it is used by the U.S. Bureau ofCensus for the compilation of

export statistics on United States foreign trade (for this reason an export

declaration is required for practically all shipments from the United States

to foreign countries and the United States possessions, exceptfor mail

shipments ofsmall value, orfor those ofa non commercial character);

2. The declaration also serves as an export control document because it

must be presented, together with the export license, to the United States

Customs at the port ofexport. If the goods may be exported under general

export license, this fact must be stated on the export declaration.

ExportLicense: Adocument secured from a government, authorizing an

exporter to export a specific quantity ofa particular commodity to a certain


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country. An export license is often required ifa government has place

embargoes or otherrestrictions upon exports. See General ExportLicense.

ExportTrading Company: A corporation or other business unit organized

and operated primarilyfor the purpose ofexporting goods and services, or

ofproviding exportrelated services to other companies.

Express: Premium-rated service for urgent deliveries.EXW: Ex works. Same as the former "Ex Works."FAK: FreightAll Kinds

uniform airline charging scale applying to a number ofcommodities; as

opposed to SCR (Specific Commodity Rate) applying to one commodity

only.

FAS (free alongside ship): Seller is responsible for inland freight costs until

goods are located alongside the vessel/aircraftfor loading. Buyer is

responsible for loading costs, ocean /airfreight and marine/air insurance.

Fathom: (Nautical) Conversion equivalents: 6 feet; 1.83 meters.

F.C.L.: Full container load, full car load.

F.c.s.: Free ofcapture and seizure.f.c.s.r.c.c.: Free ofcapture, seizure, riots and civil commotions.

F.&.D.: Freight and demurrage.

FEU: Fortyfoot equivalent

FIATA: International Federation ofFreight Forwarders Associations.

Fifth Freedom Flight: Where cargo is carried by an airline between two

countries in neither ofwhich it is based.

F.i.b.: Free in bunkers;free into barge.

Flag Carrier: An airline ofone national registry whose government gives it

partial or total monopoly over international routes.

FOB (free on board): Seller is responsible for inland freight and all other

costs until the cargo has been loaded on the vessel/aircraft. Buyer is

responsible for ocean/airfreight and marine/air insurance.

F.o.d. : Free ofdamage

Folded: An article folded in such a manner as to reduce its bulk 33 1/3%

from its normal shipping cubage when notfolded.

Force Majeure: The title ofa standard clause found in marine contracts

exempting the parties for nonfulfillment of their obligations byreasons of

occurrences beyond their control, such as earthquakes, floods or war.

Foreign Trade Zone: Afree port in the United Stated divorced from

Customs authority but under Federal control. Merchandise, except that

which is prohibited, may be stored in the zone without being subjected to

the United States tariffregulation. Also called Free Trade Zone.

Foreign Trade Zone Entry: Aform declaring goods which are brought duty

free into a Foreign Trade Zone forfurther processing or storage and

subsequent exportation.

Forwarder, Freight Forwarder, Foreign Freight Forwarder: An independent


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business that dispatches shipments for exporters for afee. The firm may

ship by land, air, or sea, or it may specialize. Usually it handles all the

services connected with an export shipment; preparation ofdocuments,

booking cargo space, warehouse, pier delivery and export clearance. The

firm may also handle banking and insurance services on behalfofa client.

The U.S. forwarder is licensed by the Federal Maritime Commission forocean shipments.

Foul Bill ofLanding: Areceiptfor goods issued by a carrier with an

indication that the goods were damaged when received.

F. P.A.A.C. F.p.a. (A.C.) : Free ofParticularAverage, American

Conditions- (Marine Insurance Term). The American form ofclause

commonly used, as distinguished from that used by the English

underwriters. Under the American clause the underwriter does not assume

responsibilityfor partial losses unless caused by stranding, sinking, burning

or collision with another vessel whereas under the English clause, the

underwriter assumes responsibilityfor partial losses if the vessel bestranded, sunk, burnt or in collision even though such anevent did not

actually cause the damage suffered by the goods. Conditions (See

F.P.A.A.C.).

F.P.A.: Free ofParticularAverage (Marine Insurance Term). A term used

in marine insurance policies to indicate that while the underwriter is

unwilling to assume liabilityfor ordinary partial losses due to the peculiar

qualities of the particular article or to its form ofpackage, he is willing to

bear partial losses, the directresult ofstranding, sinking, burning, collision,

or other named peril

Free Alongside: Quoted price includes the cost ofdelivering the goods

alongside a designated vessel.

Free In (F.I.): Cost of loading a vessel is borne by the charterer.

Free In and Out (F.I.O.): Cost of loading and unloading a vessel is borne

by the charterer.

Free ofCapture and Seizure (F.C.& S.): An insurance clause providing that

loss is not insured ifdue to capture, seizure, confiscation and like actions,

whether legal or not , orfrom such acts as piracy, civil war, rebellion and

civil strife.

Free ofParticularAverage (F.P.A.): Amarine insurance clause providing

that partial loss or damage is not insured American conditions

(F.P.A.A.C.). Partial loss is not insured unless caused by the vessel being

sunk, stranded, burned, on fire, or in collision. English conditions (F.P.

A.E.C.). Partial loss not insured unless aresult of the vessel being sunk,

stranded, burned, on fire, or in collision.

Free Out (F.O.): Cost ofunloading a vessel is borne by the charterer.


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Free Port: Aport which is aforeign trade zone, open to all traders on

equal terms; more specifically a port where merchandise may be stored

duty-free, pendingre-export or sale within that country.

Free Trade Zone: Aport designated by the government ofa countryfor

duty-free entry ofany non-prohibited goods. Merchandise may be stored,

displayed, used for manufacturing, within the zone and re-exported withoutduties being paid. Duties are imposed on the merchandise (or items

manufactured from the merchandise) only when the goods pass from the

zone into an area of the country subject to the Customs Authority.

Freight Forwarder: An individual or company , acting on the behalfofa

shipper, who arranges all necessary details ofshipping and documentation

for a manufacturer or exporter, which includes employing the services ofa

carrier ofcarriers.

Gang: Group ofstevedores usually 4 to 5 members with supervisor

assigned to a hold or portion of the vessel being loaded or unloaded.

Gateway: Port ofentry into a country orregion.GATT: General Agreement on Tariffs and Trade, a multilateral treaty

intended to help reduce trade barriers and promote tariffconcessions.

GCR: General Cargo Rate. The basic tariffcategory which was introduced

to cover most air cargo now covers only a minority, the remainder being

underSCR or class rates.

General Average: When damage to cargo on board a vessel exceeds

carrier's insurance, carrier will release cargo only with an acceptance

agreement to claim only a general percentage ofall the damage sustained.

General ExportLicense: Any ofvarious export licenses covering export

commodities for which validated export licenses are notrequired. No

formal application or written authorization is needed to ship exports under

a general export license.

General Order: Government contract warehouse for the storage ofcargoes

left unclaimed for ten working days after availability. Unclaimed cargoes

are auctioned publicly after one year.

Gross Weight: Entire weight ofgoods, packing, and container,, readyfor

shipment.

G.R.Wt./G.W.: Gross Weight.

GSA: General Sales Agent acting on behalfofan airline. UsuallyBroker or

Forwarder.

Harmonized Code: An internationally accepted and uniform description

system for classifying goods for customs, statistical and other purposes.

Harmonized Systems: Akey provision of the recently signed trade bill,

effective Jan. 1, 1989, that establishes international uniformityfor product

classifications. Most U.S. Trading partners adopted it a year earlier, and it

was drafted in Brussels a decade ago with U.S. representatives' input. In


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essence, it is a new tariffschedule in that it changes methods ofrating some

items.

Hatch: The cover of - or opening- in the deck ofa vessel, through which

cargo is loaded.

HeavyLifts: Freight too heavy to be handled byregular ship's tackle.

HeavyLift Vessel: Specifically designed to be selfsustaining with heavy liftcranes, to handle unusually heavy and/or out-sized cargoes.

House Air Waybill: An air waybill issued by afreight consolidator. See Air

Waybill.

Hub: A central location to which traffic from many cities is directed and

from which traffic is fed to other areas.

Hundredweight (cwt.): A short ton hundredweight = 100 pounds. Long ton

hundredweight = 112 pounds.

Husbanding: Term used by steamship lines, agents, or port captains who

are appointed to handle all matters in assisting the master of the vessel

while in port to obtain bunkering, fresh water, food and supplies, payrollfor the crew, doctors appointments, ship repair, etc.

IATA: International AirTransportAssociation.

ICAO: International Civil Aviation Organization. A specialized agency of

the United Nations, with headquarters in Montreal. Its task is to promote

general development ofcivil aviation (e.g. aircraft design and operation,

safety procedures, contractual agreements).

ICC: International Chamber ofCommerce

I.C.T.F.: Intermodal ContainerTransfer Facility, an on-dockfacilityfor

moving containers from ship to rail or truck.

IFF: Institute ofFreight Forwarders.

Igloo: Container designed to occupyfull main deck width o fcarrying

aircraft.

ImportLicense: A certificate, issued by countries exercising import

controls, that permits importation of the articles stated in the license. The

issuance ofsuch a permitfrequently is connected with the release of

foreign exchange needed to payfor the shipmentfor which the import

license has been requested.

In-Bond: Acustoms program for inland ports that provide for cargo

arriving at a

seaport to be shipped under a Customs bond to a more conveniently

located inland port where the entry documents have been filed. Customs

clears the shipment there, and the cargo is trucked to its destination, which

normally is close to the inland port.

IndependentAction: Amove by whereby a member ofa shipping

conference elect to departfrom the specific service rates setforth by the

conference, giving ten calendar days notice ofsuch action. The conference


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member's new schedule ofrate, orrates, officially takes effect no later than

ten days afterreceipt ofnotice by the conference.

Inducement: Some steamship lines publish in their schedules the name of

a port and the words by inducement in parentheses. This means the vessel

will call at the port if there is sufficient amount ofprofitable cargo available

and booked.Inland Carrier: A transportation line which hauls export or import traffic

between ports and inland points.

I.p.a.: Including particular average

Inspection Certificate: Adocument certifying that merchandise (such as

perishable goods) was in goods condition immediately prior to shipment.

Integrated Carrier: Forwarder which uses own aircraft, whether owned or

leased, rather than scheduled airlines.

Intellectual Property: Ownership of the legal rights to possess, use or

dispose ofproducts created by human ingenuity, including patents,

trademarks and copyrights.Interline: Mutual agreement between airlines to link theirroute network.

Intermeddle: Referring to the capacity to go from ship to train to truck, or

the like, the adjective generallyrefers to containerized shipping or the

capacity to handle same.

ISO: International Standards Organization also referred to as the

International

Organizational forStandardization.

Incoterms: Acodification of terms used in foreign trade contracts that is

maintained by the International Chamber ofCommerce.

Incremental Cost to Export: The additional costs incurred while

manufacturing and preparing a productfor export ( e.g., product

modifications, special export packaging and export administration costs.)

This does not include the costs to manufacture a standard domestic

product, export crating and transportation to the foreign market.

Irrevocable Letter ofCredit: A letter ofcredit with afixed expiration date

that carries the irrevocable obligation of the issuing bank to pay the

exporter when all of the terms and conditions of the letter ofcredit have

been met.

J.&W.O.: Jettison and washing overboard

JETSAM: Goods from a ship's cargo, or parts of its equipment, that have

been thrown overboard to lighten the load in time ofdanger, or to set a

stranded ship adrift.

Joint Venture: Aform ofbusiness partnership involving joint management

and the sharing ofrisks and profits between enterprises sometimes based

in different countries.

Just-In-Time (JIT): The principle ofproduction and inventory control in

which goods arrive when needed for production or use.


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K.D.C.L.: Knocked down in carload lots

KD Flat: An article taken apart, folded, or telescoped to reduce its bulk at

least 66 2/3% below its assembled size.

K.D.L.C.L.: Knocked down in less than carload lots.

KnockDown (KD): An article taken apart, folded or telescoped in such a

manner as to reduce its bulk at least 33 1/3% below its assembled bulk.Knot (Nautical): The unit ofspeed equivalent to one nautical mile, or

6,080.20 feet per hour or 1.85 kilometers per hour.

L/C - Letter ofCredit: Adocument issued by a bank per instructions by a

buyer ofgoods, authorizing the seller to draw a specified sum ofmoney

under specified terms. Issued as revocable or irrevocable.

L. & D.: Loss and damage

Lagan: Cargo or equipment to which an identifying marker or buoy is

fastened, thrown over-board in time ofdanger to lighten a ship's load.

Under maritime law if the goods are laterfound they must be returned to

the owner whose marker is attached; the owner must make a salvagepayment.

Lash: LighterAboard Ship (see Lighter)

Lash Vessel: Designed to load internally, barges specifically designed for

the vessel. The concept is to quicklyfloat the barges to the vessel (using

tugs or ships wenches) load these barges through the rear of the vessel,

then sails. Upon arrival at the foreign port, the reverse happens;Barges are

quicklyfloated awayfrom the vessel and another set ofwaiting barges

quickly are loaded. Designed for quick vessel turn-around. Usually crane-

equipped; handles mostly breakbulk cargo.

LayDays: The dates between which a chartered vessel is to be available in

a portfor loading ofcargo.

L.C.L.: Less than container load; less than car load.

Legal Weight: The weight of the goods plus any immediate wrappings

which are sold along with the goods: e.g., the weight ofa tin can as well as

its contents.

(See Gross Weight).

Less than TruckLoad (LTL): Rates applicable when the quantity offreight

is less than the volume or truckload minimum weight.

Letter ofCredit: Adocument issued by a bank at a buyer's request

honoring debt obligations to the seller upon receipt of the document.

Lighter: An open or covered barge equipped with a crane and towed by a

tugboat. Used mostly in harbors and inland waterways.

Lighterage: The cost of loading or unloading a vessel by means ofbarges

alongside.

Liner: The word "liner" is derived from the term "line traffic" which denotes


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operation along definite routes on the basis ofdefinite, fixed schedules; a

liner thus is a vessel that engages in this kind of transportation, which

generally involves the haulage ofgeneral cargo as distinctfrom bulk cargo.

Liquidation: The finalization ofa customs entry.

Livestock: Common farm animals.

Lkg. & Bkg.: Leakage and breakage.Load Factor: Capacity sold as against capacity available, expressed as a

percentage.

Lo/Lo: The acronym meaning "lift-on,lift-off," denoting the method by

which cargo is loaded onto and discharged from an ocean vessel, which in

this case is by the use ofa crane.

l.t. or l.tn.: Long ton (2240 lbs.).

Ltge.: Lighterage

LTL: Less than truckload

Letter ofCredit - payment by sight draft: The exporterreceives guaranteed

paymentfrom the confirming bank in the U.S. upon presentation of thesight draft and documents required by the letter ofcredit.

Manifest: A list of the goods being transported by a carrier.

Marine Insurance: An insurance which will compensate the owner of

goods transported overseas in the event of loss which cannot be legally

recovered from the carrier.

Maritime Administration (MARAD): AUS government agency, while not

actively involved in vessel operation, administers laws for maintenance of

merchant marine for the purposes ofdefense and commerce.

Mark: As used on containers in foreign trade, a symbol or initials shown

together with the port of importation and the final destination, ifdifferent.

Example: A.G. y

Cia., Bogota viaBarranquilla. Marks are registered at appropriate customs

houses; they also appear on bills of lading and invoices. In domestic trade,

it is common to mark containers with the name and address of the

recipient, but this is rarely done in foreign trade.

Marking: Every article offoreign origin, or its container, imported into the

United States shall be permanently marked in a conspicuous place in a

manner which would indicate to the ultimate purchaser the English name

of the country oforigin of the article.

Mate's Receipt: Receipt ofcargo by the vessel, signed by the mate (similar

to dockreceipt).

MeasurementTon: The measurement ton (also known as the cargo ton or

freight ton) is a space measurement, usually 40 cubic feet or one cubic

meter. The cargo is assessed a certain rate for every 40 cubic feet or 1

cubic meter it occupies.

Min. B/L: Minimum bill of lading

M.M.: Mercantile marine


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MFN (Most Favored Nation): Designation for countries which receive

preferential tariffrates. This is no longer the best tariffstructure available.

M/R: Mate's Receipt

M/T: Metric Ton (2204 lbs.)

mt.: Empty

M/V or M.V.: Motor vesselMW: Minimum weightfactor

National Carrier: Aflag carrier owned or controlled by the state.

n.e.m.: Not elsewhere mentioned (English)

n.e.s.: Not elsewhere specified

Nested: Three or more different sizes ofan article are placed within each

other so that each article will not project above the next lower article by

more than 33 1/3% of its height.

Nested Solid: Three ofmore different sizes ofan article are placed within

each other so that each article will not project above the next lower article

by more than 1/4 inch.NetTerms: Free ofcharters' commission

Net Weight: (Actual Net Weight) Weight ofgoods alone without any

immediate wrappings; e.g., the weight of the contents ofa tin can without

the weight of the can.

NMFC: National Motor Freight Classification

No Objection Certificate: Document provided by scheduled or national

airlines ofmany countries declaring no objection to a proposed charter

flight operated by another airline. Often demanded by government

authorities before they grant permission for a charterflight to take place.

No Objection Fee: Sum ofmoney paid by a charter airline normally to a

scheduled airline in order that it waives its right ofobjection to its

government, thus allowing a charter to take place. Tantamount to a bribe.

The amount is usually afixed percentage of the gross cost ofa charter.

Common practice in the Middle East and Africa.

N.O.E.: Not otherwise enumerated

N.O.H.P.: Not otherwise herein provided

N.O.I.: Not more specifically described

N.O.I.B.N.: Not otherwise indicated by number;Not otherwise indicated

by name.

Non-Scheduled Flight: See scheduled flight.

Non-TariffBarriers (NTB): Economic, political, administrative or legal

impediments to trade other than duties, taxes and import quotas

Non-Vessel Operation Common Carrier (NVOCC): An F.M.C. registered

cargo consolidator ofsmall shipments in ocean trade, generally soliciting

business and arrangingfor or performing containerization functions at the

port. These carriers issue their own bill of ladingreferred to as a house bill

of lading.


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N.O.S.: Not otherwise specified

N.T.: Net tons

Ocean Bill ofLading: Areceiptfor cargo in transit, and a contract between

the exporter and an ocean carrierfor transportation and delivery ofgoods

to a specified party at a specified foreign destination. Issued after the vessel

has sailed and the cargo has been entered in the ship's manifest.O.D.: Outside diameter

ODS: An acronym commonly used for the term "operating differential

subsidy," which is a payment to an American-flag carrier by the federal

government to offset the difference in operating costs between US and

foreign vessels.

Off-Line: Describes an airline that sells in a market to which it does not

operate. An Off-Line carrier will use another operator to link with its

network.

O/N: Order notify; own name

O/o: Order ofOpen Account: Ahigh-risk trade arrangement in which goods are shipped

to aforeign buyer without guarantee ofpayment.

Open Policy: A cargo insurance policy that is an open contract; i.e., it

provides protection for all an exporter's shipments afloat or in transit within

a specified geographical trade areafor an unlimited period of time, until

the policy is cancelled by the insured or by the insurance company. It is

"open" because the goods that are shipped are also detailed at that time.

This usually is shown in a document called a marine insurance certificate.

Original Equipment Manufacturers (OEM accounts): Customers who

incorporate the exporter's product into their own merchandise forresale

under their own brand names.

O/R : Owner's risk

O. & R.: Ocean and Rail

O.r.b.: Owner's risk or breakage

O.R. Det.: Owner's risk ofdeterioration

O.R.F.: Owner's risk offire orfreezing

O.R.L.: Owner's risk of leakage

O.R.W.: Owner's risk ofbecoming wet

O.S. & D.: Over, short and damage

Ocean Bill ofLading: Areceiptfor cargo in transit, and a contract between

the exporter and an ocean carrierfor transportation and delivery ofgoods

to a specified party at a specified foreign destination. Issued after the vessel

has sailed and the cargo has been entered in the ship's manifest.

O.D.: Outside diameter


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ODS: An acronym commonly used for the term "operating differential

subsidy," which is a payment to an American-flag carrier by the federal

government to

offset the difference in operating costs between US and foreign vessels.

Off-Line: Describes an airline that sells in a market to which it does not

operate. An Off-Line carrier will