Shipping Glossary

A-B C-D E-F G-H I-J K-L

M-N O-P Q-R S-T U-V W- Z

(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.

B
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.

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.

D
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.

E
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.

F
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.

G
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.

H
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.

I
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.

J
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.

K
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.

L
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.

M
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.

N
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.

O
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 gross receipts: income divided by expenses.

ORIGINAL EQUIPMENT MANUFACTURER

Firms, which either make minor modifications or add value to purchased items before resale, or incorporate
purchased items into a new end product. These firms are normally classified as resellers.

OVER, SHORT AND DAMAGED

Report issued at warehouse when goods are missing, counted improperly or damaged. Used to file a claim
with a carrier.

OVERAGE

Freight in excess over quantity believed to have been shipped, or more than quantity shown on shipping
document.

OVERCHARGE

To charge more than the proper amount as published in the tariff.

OWNER'S RISK

When the owner of goods remains responsible during shipping and relieves the carrier of partial risk.

OWNER-OPERATORS

Drivers who own or operate their own trucks.

P
PACKAGE CARGO

Cargo in boxes, barrels, crates, bales, or other containers as opposed to bulk or loose cargo.

PACKING LIST

A detailed specification of the goods packed. List showing merchandise packed and all particulars. Normally
prepared by shipper but not required by carriers. Copy is sent to consignee to help verify shipment received.

PALLET

A portable platform for holding material while in storage or transport.

PALLETIZATION

System for shipping goods on lightweight, double-decked wooden platforms called pallets. Permits shipment
of multiple units as one large unit.

PARTICIPATING CARRIER (TARIFF)

A carrier that is a party to a tariff that is issued by another carrier or by a tariff-publishing agent.

PAYLOAD

Profitable cargo.

PER DIEM

Latin for "by the day".

PERILS OF THE SEA

A marine insurance term used to designate heavy weather, stranding, lightning, collision, and seawater
damage.

PERISHABLE FREIGHT
Freight subject to deterioration or decay in a relatively short time. Commodities subject to rapid deterioration
or decay, which require special protective services such as refrigeration or heating.

PERMIT

Authority given to engage in certain acts.

PHYTOSANITARY INSPECTION CERTIFICATE

A certificate issued by the U.S. Department of Agriculture, Animal and Plant Health Inspection Service, to
satisfy import regulations for foreign countries, indicating that a U.S. shipment has been inspected and is
free from harmful pests and plant diseases. (USA)

PIER

A location at a port where cargo can be loaded and unloaded and other shipping functions can be
performed.

PIGGY BACK

Intermodal transportation system whereby trailers/containers are carried on railcars.

PIER-TO-HOUSE

Cargo stuffed by carrier at his facility and unstuffed by the consignee at his facility.

PIER-TO-PIER

Cargo stuffed at origin and unstuffed at destination by carrier at his facility.

POINT OF ORIGIN

The point where freight is received for transportation and the carrier takes responsibility for the cargo.

POOL

A quantity of equipment from which equipment is drawn as required.

POOLING AGREEMENT

Dividing of revenue/business among two or more carriers in accordance with previous contracts/agreements.

PORT AUTHORITY

The entity whose duty is to construct, manage, maintain, and improve a port. States, municipalities, statutory
trusts, or private or corporate entities may administer ports. Also known as harbor authority, harbor board,
port trust, or port commission.

PORT CHARGES

Fees assessed against a vessel, cargo, and passengers while in port, including harbor dues, tariff charges,
wharfage, towage, etc.

PORT OF ENTRY

Where goods are entered and where the Customs Service accepts entries of merchandise and collects
duties.

PORT SIDE
The left side of a vessel as one looks towards the bow.

PORTSIDE POWER OF ATTORNEY

A document which empowers one party to act on behalf of another.

POWER OF ATTORNEY (or Limited Power of Attorney)

A legal document that importers give to their customs broker that allows the customs broker to conduct
business with the Customs Service on the importer's behalf.

POWER PACK

An independent power unit used to control temperature in containers.

PREFERENTIAL DUTY STATUS

Special trade status given to foreign countries by agreement for assistance or reciprocity.

PREPAID

A notation on a bill of lading that indicates that transportation charges have been paid or are to be paid at
origin.

PREPAY

Pay before or in advance of services.

PRESIDENT’S EXPORT COUNCIL SUBCOMMITTEE ON EXPORT

Senior level advisory committee whose members are appointed by the Secretary of Commerce to advise the
U.S. Government on matters and issues pertinent to implementation of the provisions of the Export
Administration Act and the Export Administration Regulations, as amended, and related statutes and
regulations. (USA)

PRESIDENT’S EXPORT COUNCIL SUBCOMMITTEE ON ENCRYPTION

Senior level advisory committee whose members are appointed by the Secretary of Commerce to advise the
U.S. Government on matters pertinent to United States policies regarding commercial encryption products.
(USA)

PRIOR DISCLOSURE

Sometimes an importer will find it has violated a customs law before the Customs Service has discovered the
violation. A prior disclosure is a voluntary report by an importer of the violation to the Customs Service. The
law provides some benefits (but does not speak of the risks) to an importer who does a prior disclosure.

PRO FORMA

An informal document presented in advance.

PRO FORMA INVOICE

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and
quantities of goods to be sent, their value, and important specifications (weight, size, etc.).

PRO NUMBER

Any progressive or serial number applied to identify freight bills, bills of lading, etc.
PROF

See Proforma Invoice.

PROOF OF DELIVERY

Copy of waybill signed by consignee at time of delivery as receipt. The consignee's written certification that
the cargo has been delivered.

PROPORTIONAL RATE

Lower than normal rate on segment of through movement to encourage traffic or capture competitive traffic.
May be percentage of standard rate of flat rate that is lower between given points.

PRORATE

To divide or distribute proportionally.

PROTEST

The means to challenge through administrative or agency channels decisions by the Customs Service .

PURCHASE ORDER

1) A document used to requisition goods. 2) A form a buyer may use when placing an order for merchandise

PUBLIC WAREHOUSE

Storage place renting space to anyone desiring it.

PUBLISHING AGENT

A person authorized by carriers to publish tariffs or rates, rules and regulations on their behalf.

Q
QUAY

Man-made docking area for loading/unloading vessels. Docking is parallel, allowing loading/unloading from
one side of ship.

QUOTA

A limitation on the quantity of goods that may be imported during a specific period of time. Quotas can
include limitations on all countries, or can target specific countries.

QUOTATION

An offer to sell goods at a stated price and under specified conditions.

R
RATE

Established shipping charge for movement of goods.

RATE BASIS
Formula of specific factors/elements that control making of rate.

RATE WAR

When carriers cut rates in an effort to capture more sales. Can occur in all commodities.

REBATE

The practice of giving a portion of a payment back to a buyer after a seller makes a sale.

RECEIVING PAPERS

Documents submitted with the delivery of cargo. It gives details of the shipment so that outbound
documentation matches the bill of lading. It also acts as a receipt for the carrier to show that goods have
been delivered.

RECIPROCITY

An exchange of rights, benefits, commitments, or obligations.

RECONCILIATION

The process of determining if proper accounting has taken place, and making efforts to resolve any
discrepancies.

RECONSIGNMENT

Any change, including a change in the route, made in a consignment before the arrival of the goods at their
billed destination.

RED LABEL FREIGHT

Dangerous, flammable freight.

REEFER

A container, with a self-contained refrigeration unit, used for the transport or perishable cargo. Abbreviation
for refrigerated container. Slang term for refrigerated trailer that hauls perishables.

REFRIGERATED CONTAINER

A container that is insulated and equipped with temperature control equipment.

REFUSED FREIGHT

Freight which the consignee or owner refuses to accept.

REGIONAL STABILITY

A term used to describe lack of severe political and economical threat in a given region; and therefore a
relatively safe environment in which one can conduct business.

REGIONAL VALUE CONTENT

A determination of the value of goods for Customs purposes, based on where the goods where acquired,
produced, or transformed.

RESELLER
A consignee that receives items for the purpose of resale to other parties. This includes reselling items in the
form received, making modifications or adding value (e.g., software or peripheral devices) before reselling or
re-exporting items.

RESTRICTED ARTICLES

Commodities that can be handled or shipped only under certain specific conditions.

RETURN WITHOUT ACTION

Return of an export application to the applicant because of ineligibility or incompleteness.

REVENUE TO FOLLOW

A statement on a freight manifest for shipment billed without revenue stated, in order to move it, and billed
again with charges upon receipt of the Bill of Lading.

REVISION

Changes made, as a result of an audit, to state correct information, rates, and charges.

RIDER

An attachment to a document to supplement information, and one that becomes part of the original
document.

ROLL-ON/ROLL-OFF

1) A system of handling cargo in trailers and ships in which the trailers are driven on and off the vessel.
loading/discharging ports. 2) A term applied to ships that are outfitted so that vehicles or heavy machinery
can be driven on or off without the use of special cranes.

ROLLINGSTOCK

Freight/passenger cars owned by rail carriers, and buses, trucks and trailers owned by motor carriers.

ROUTE

1) Course/direction that shipment moves. 2) To designate course/direction shipment shall move. 3) Carrier(s)
with junction points over which shipment moves. A multi-modal collection of one or more serial scheduled
legs connecting a depart origin to a target destination.

ROUTING

1) Process of determining how shipment will move between origin and destination. Routing information
includes designation of carrier(s) involved, actual route of carrier, and estimated time enroute. 2) Right of
shipper to determine carriers, routes and points for transfer on TL and CL shipments.

RULES OF ORIGIN

Rules that guide the determination of country of origin for duty calculations, necessary permits, quotas, etc.

RULING

A decision rendered by the Customs Service on an issue or issues surrounding a particular importation of
merchandise. Rulings are published and can usually be appealed to a higher administrative body or to a
court of law.

RULINGS ON IMPORT
An exporter, importer, or other interested party may get advance information on any matter affecting the
dutiable status of merchandise by writing the District Director of Customs where merchandise will be entered,
or to the Regional Commissioner of Customs. (USA)

S
SALVAGE LOSS

In marine insurance, loss sustained by necessary sale of goods at port prior to expected destination because
of "perils of the sea." Treated as total loss with amount realized from sale of goods credited on amount
payable under policy.

SCHEDULE B

Statistical Classification of domestic and foreign commodities exported from the U.S. All commodities
exported from the U.S. must be assigned a ten-digit Schedule B number.

SCHEDULE C

Four-digit codes assigned by U.S. Customs to foreign countries.

SCHEDULE D

Four-digit codes assigned by the U.S. Government for ocean ports, airports, and land crossings. (USA)

SCHEDULE K

Five-digit codes for foreign ports (international).

SEABRIDGE

Combination of vessels linking the Atlantic and Pacific ports.

SEAL

1) Device applied to freight car/motor vehicle door fastening. 2) Item that shows that a certain mechanism
has not been tampered with between time of application and time of intended use.

SEMI

Slang term for semi trailer. Also used loosely in referring to tractor-trailer combination.

SERVICE CONTRACT

A contract between a shipper and an ocean carrier or conference, in which the shipper makes a commitment
to provide a minimum quantity or cargo over a fixed time period, and the ocean carrier or conference
commits to a rate or rate schedule as well as a defined service level, such as space, transit time, port
rotation or other features.

SERVICE ROUTE

A scheduled integrated route.

SET UP

Prepare for shipment.

SHARED FOREIGN SALES CORPORATION

A foreign sales corporation with between one and twenty-five member exporters.

SHIP’S MANIFEST

An instrument in writing, signed by the captain of a ship, which lists the individual shipments constituting the
ship’s cargo.

SHIPMENT

1) Lot of freight tendered to carrier by one consignee at one place at one time for delivery to one consignee
at one place on one bill of lading. 2) Goods/ merchandise in one or more containers, pieces, or parcels for
transportation from one shipper to a single destination. 3) Contracted movement of cargo from a shipper at
one location to a consignee at another via a common carrier.

SHIPPER'S CERTIFICATE

Form filled out and presented by shipper to outbound carrier at transit point, together with instructions and
inbound carrier's freight bill, asking for reshipping privilege and transit rate commodity previously brought into
transit point.

SHIPPER'S EXPORT DECLARATION

Form required by the Treasury Department and completed by shipper showing value, weight, consignee,
destination, etc., of export shipments, as well as Schedule B identification. (USA)

SHIPPER’S LETTER OF INSTRUCTION

Shipper’s communication to their freight forwarder or carrier that includes all detail of the shipment. This
communication is used by the forwarder or carrier to complete the bill of lading and other shipping
documents.

SHIPPER’S LOAD AND COUNT

A statement that the contents of a container were loaded and counted by a shipper, and were not counted or
verified by the carrier.

SHIPPER'S LOAD, COUNT, AND STOW

Statement on the Bill of Lading that makes the shipper responsible for proper description of the contents.

SHIPPER'S ROUTING

Shipper specification of which carrier or carriers are to be used on the traffic tendered for transportation.

SHIPPING ORDER

Formal written instructions of the shipper to the carrier ordering transportation of goods.

SHORT FORM BILL OF LADING

Bill of Lading which refers to the contract terms and conditions of the carrier's regular long form bill.

SHORT SHIPMENT

Piece of freight missing from shipment as stipulated by documents on hand.

SHORTSHIPPED
Shipment originally scheduled for a particular vessel/voyage, but left behind for some reason.

SHORT SUPPLY

Limited amount of a specific good or commodity.

SHORT TON

2,000 pounds.

SHUTOUT

Cargo short shipped by intent due to lack of space/overbooking.

SOCIETY INTERNATIONAL de TELECOMMUNICATIONS AERONAUTIQUE

The Aviation Industry's leading telecommunications network.

SOUTH AFRICA DEVELOPMENT COMMUNITY

A community of nations that has placed binding obligations on member countries with the aim of promoting
economic integration towards a fully developed common market. Members include Angola, Botswana,
Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, Zambia, and Zimbabwe.

SPECIAL COMPREHENSIVE LICENSE

An individual export license established for pre-approved commodities, software, and/or technical data to
pre-approved consignees and/or destinations.

SPECIAL PURPOSE CONTAINERS

Any container equipped to carry a specific kind of freight. These may include refrigerated units, platforms,
gondolas, open tops, automobile racks and other types of containers.

SPECIALLY DESIGNATED NATIONAL

Any individual, organization, or company that has been sanctioned by the Secretary of the Treasury and the
Office of Foreign Assets Control. (USA)

SPECIALLY DESIGNATED TERRORIST

Any person who is determined by the Secretary of the Treasury to be a specially designated terrorist under
notices or regulations issued by the Office of Foreign Assets Control. (USA)

SPLIT LOAD

1) A load with more than one terminal destination. 2) The act of breaking down a shipment of one commodity
into multiple lots.

SPLIT SHIPMENT

Multiple container load shipment booked for one vessel but split and sent on two or more vessels.

STANDARD INDUSTRIAL CLASSIFICATION

The classification standard underlying all economic statistics.

STANDARD INTERNATIONAL TRADE CLASSIFICATION

Numerical code developed by the United Nations and adopted by certain air carriers as a basis for numerical
identification of commodities moving in airfreight.

STARBOARD SIDE

The Right hand side of a vessel looking towards the bow.

STATUTORY NOTICE

Length of time required by law for carriers to give notice to changes in tariffs, rate rules, and regulations.

STEAMSHIP CONFERENCE

A group of steamship operators that collectively sets rate and service levels in a specific geographic trade
area or route.

STERN

The rear or after end of a vessel.

STEVEDORE

Person in charge of loading/unloading ships.

STOWAGE

The loading of a vessel by handling and placing goods within the container so as to ensure stability of the
container, maximum use of space, safety of cargo, and efficient loading and unloading.

STOWAGE PLAN

Ground cross section of every hold on a vessel showing the containers in each slot. It is prepared at each
port where cargo is loaded/unloaded and forwarded to the next port of call.

STRAIGHT BILL OF LADING

A Non-negotiable document that provides that a shipment is to be delivered direct to the party whose name
is shown as the consignee. Carrier does not require its surrender upon delivery, except when needed to
identify a consignee.

STRIPPING

Emptying truck of cargo, and arranging shipments by destination.

STRUCTURED QUERY LANGUAGE

A computer programming language.

STUFFING

Loading freight into a container. Slang term.

STUFFING SHEET

See Container Detail Report.

SUB-GROUP ON NUCLEAR EXPORT COORDINATION

An interagency committee chaired by the Department of State, which primarily reviews applications involving
items controlled for nuclear nonproliferation.
SUBROGATION

The right of the insurer, upon payment of a loss, to the benefit of any rights against third parties that may be
held by the assured himself.

SURCHARGE

A charge over and above the normal charge.

SURETY BOND

A surety bond must be posted with the Customs Service to cover potential penalties, duties, or taxes before
imported merchandise can be entered into the United States.

SYSTEM FOR TRACKING EXPORT LICENSE APPLICATIONS

An automated voice response system that provides applicants with the status of their license application.

SYSTEMS INTEGRATOR

A firm which purchases various components and accessories and integrates them into a unique system for
resale. Virtually always classified as a reseller.

T
TANKTAINER

Tank built into standard container frame and used to transport liquids.

TARE

Amount of gross weight on freight shipment that can be deducted for packaging weight. Usual allowance is
four pounds per 104 pounds.

TARE WEIGHT
The weight of a container and packing materials without the weight of the goods it contains.

TARIFF (or Tariff Schedule)

A schedule of taxes or duties on imported goods.

TARIFF RATE QUOTA

A quota placed on specific goods that increases the duties that must be paid on these goods once a certain
amount has been imported.

TECHNICAL ADVISORY COMMITTEE

A committee comprised of members of the business community that advise the Department of Commerce
and other agencies on technical issues related to export control regulations and policy. (USA)

TEMPORARY DENIAL ORDER

Also formerly the acronym for the “Table of Denial Orders,” now known as the Denied Persons List.

TEMPORARY IMPORTATION UNDER BOND

The process by which a company that desires to import goods for a limited amount of time, often for sales
purposes or trade shows, and re-export them without paying duties, posts a bond with a host government to
ensure compliance with a specified time allowance.

TENDER

Offer of goods for transportation by shipper, or offer of delivery by carrier.

TERMINAL

A location or building for the handling and/or temporary storage of freight as it is loaded or discharged from a
vessel.

TERMINAL HANDLING CHARGE

An ancillary charge on some ocean freight shipments to cover the cost of moving the container from the
container yard to ocean vessel.

THIRD FLAG CARRIER

A carrier that transports cargo between two nations, neither of which is the carrier's country of registry.
These carriers also are referred to as "crosstraders".

THROUGH BILL OF LADING

A Bill of Lading that covers goods moving from point of origin to final destination, even though transfers are
made to different carriers in transit.

THROUGH RATE

A rate applicable from point of origin to final destination.

T.I.R. CARNET

French for "Transit International Router" Carnet. See Carnet.

TIME VOLUME AGREEMENT

A contract between a carrier and shipper that usually specifies the movement of a certain number of
containers over a certain period of time, usually 12 months.

TITLE

Document that confers on holder the right of ownership, possession or transfer of merchandise specified.

TOLERANCE

The permissible amount of variation from a standard.

TONNAGE

Carrying capacity of ship/vessel in tons.

TRACE

To follow the record and/or movement of a shipment.

TRACER

A request upon a carrier to trace a shipment in order to locate it, expedite its movement, or establish delivery
dates.
TRADE POLICY COMMITTEE

A committee that provides broad guidance on trade issues.

TRADING COMPANY/FIRM

A company that procures items from a multitude of suppliers and exports them and/or receives a multitude of
shipments from foreign companies and makes them available for purchase domestically.

TRAFFIC

The transit of people and/or property.

TRAILER LOADING DIAGRAM

A pictorial description of the layout of cargo in a trailer.

TRAILER-ON-FLATCAR

Shipments that involve loading containers or trailers onto railway cars for some portion of a shipment’s
transit. Also called piggyback.

TRAILER SHIP

A vessel equipped with ramps to allow trailers to be driven on or off for loading/unloading.

TRAMP

A vessel that does not operate along definite routes or on fixed schedules, but calls at any port where cargo
may be available.

TRAMP STEAMER

A ship not operating on regular routes or schedules.

TRANSACTION VALUE

The price actually paid or payable by the buyer to the seller for the merchandise when sold for exportation to
the United States. Transaction value is the most common method for valuing imported merchandise.

TRANSSHIP

Commonly used to denote transfer of goods from one means of transportation to another. Rehandling of
goods enroute.

TRANSSHIPMENT

When a product is manufactured in one country, enters the commerce of a second country, and is exported
and sold in a third country.

TRIP CHARTER

Hiring a vessel to haul cargo for a special voyage.

TWENTY FOOT EQUIVALENT UNIT

A unit of measure that could be determined using a 20-foot container as a benchmark.

U
ULLAGE

Empty space present when a container is not full.

ULTIMATE CONSIGNEE

The person who is the true party in interest, receiving goods for the designated end-use.

UNCLAIMED FREIGHT

Freight that has not been claimed by the consignee and for which no disposition instructions have been
provided by the owner.

UNIFORM COMMERCIAL CODE

A set of statutes that provides a degree of consistency among commercial laws among different states.
(USA)

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

A United Nation sanction that promotes international trade and seeks to increase trade between developing
countries and countries with different social and economic systems.

UNITED STATES & FOREIGN COMMERICAL SERVICE

An agency of the U.S. Department of Commerce that helps U.S. firms compete more effectively in the global
marketplace. (USA)

UNSTUFFING

Unloading freight from a container or trailer.

U.S. CUSTOMS BONDED WAREHOUSE

A warehouse where goods are held/stored, under the control of the federal government, until import duty (if
required) is paid, or goods are cleared to be released. (USA)

U.S. FLAG VESSEL

A merchant ship under U.S. registry.

V
VALIDATED EXPORT LICENSE

A required document issued by the U.S. government authorizing the export of specific commodities within a
certain time period.

VALUATION, ACTUAL

Actual value of goods shown on the Bill of Lading by a shipper, when rate to be applied is dependent on
value.

VALUATION, RELEASED

Value of goods set by shipper as the upper limit of carrier's liability in consideration for a lower rate to be
charged.

VALUE

The value of imported merchandise as declared by the importer and as finally determined by the Customs
Service.

VALUE ADDED TAX

An indirect consumption tax levied on imported goods in certain countries.

VAN CONTAINER

A standard container used to transport general freight.

VANNING

Loading of a container.

VESSEL CLOSEOUT

See Vessel Reconciliation.

VESSEL RECONCILIATION

The process whereby outbound documentation ensures that every shipment loaded aboard a vessel is
manifested.

VESSEL TON

100 cubic feet.

VISA

A license issued to an importer by a foreign government pursuant to a quota. When asking for advice from
the Customs Service, are you providing the most accurate, up-to-date, information you have on the
merchandise.

VOLUNTARY RESTRAINT AGREEMENTS

Informal bilateral or multilateral arrangements through which exporters voluntarily restrain certain exports.
This action is taken to avoid economic dislocation in an importing country.

VOYAGE CHARTER

Engaging services of cargo ship for specified trip from one port to another at an established tonnage rate.

W
WAREHOUSE

A place for receiving, storing and manipulating goods and merchandise.

WAREHOUSE RECEIPT

A receipt issued by a warehouse listing goods received for storage.

WASSENAAR ARRANGEMENT

An arrangement ratified by 33 member countries which sets forth export controls for conventional arms and
dual-use goods and technologies.

WASTAGE

Loss of goods due to handling, decay, leakage, shrinkage, etc.

WAYBILL

Document containing a description of goods that are part of a common carrier freight shipment. Shows
origin, destination, consignee/consignor, and amount charged. Copies travel with goods and are retained by
originating/delivering agents. Used by carrier for internal record and control, especially during transit. Not a
transportation contract.

WAYBILL DESTINATION

The final destination of a shipment as noted on the waybill.

WEIGH STATION

Permanent station equipped with scales where motor vehicles transporting goods on public highways are
required to stop and obtain gross vehicle and/or axle weights.

WEIGHT OR MEASURE

A unit by which a good or commodity can be classified so that rate, tariffs, taxes and other regulations and
constraints can be applied.

WESTERN REGIONAL OFFICE

An Export Administration outreach office located in California that is responsible for counseling exporters
throughout the Western United States. (USA)

WET GOODS

Liquids.

WHARF

A landing place by the waterside in a harbor or river for loading or unloading cargo. Loading/discharging
terminal built parallel to stream/shore line.

WHARFAGE

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. A charge for handling
traffic or decking vessels at wharf. The charges assessed by pier personnel for the handling of incoming or
outgoing cargo.

WIREFRAME

The network graph of mode specific interconnecting legs.

WORLD TRADE ORGANIZATION

The premier international organization that seeks to establish global rules of trade between nations. The
WTO helps trade flow smoothly, freely, fairly and predictably.

X
Y
YARD (FREIGHT)

Unit of track systems within a certain area used for storing cars, loading/unloading freight, and transferring
certain railcars to other trains.
Z
ZONE

Any geographic area described in detail or by formula, such as the commercial zone of a city.