Abaft
A point
beyond the midpoint of a ships length.
Abandon
A
proceeding wherein a shipper/consignee seeks authority to abandon all or parts
of their cargo.
Abandonment
The act of refusing
delivery of a shipment so badly damaged in transit that it is worthless; OR
damage to a vessel that is so severe that it is considered a constructive total
loss.
Abatement
A discount allowed for
damage or overcharge in the payment of a bill.
Abrochment
The
purchase at wholesale of all merchandise that is intended to be sold in a
particular retail market for the purpose of controlling that market.
Aboard
Referring to cargo being
put, or laden, onto a means of conveyance.
Absolute Advantage
An advantage of one nation
or area over another in the costs of manufacturing an item in terms of used
resources.
Absorption
Absorption is investment
and consumption purchases by households, businesses, and governments, both
domestic and imported. When absorption
exceeds production, the excess is the country's current account deficit.
Accelerated Tariff Elimination
The
gradual reduction of import duties over time.
Acceptance
A time
draft (or bill of exchange) that the drawee (payer)
has accepted and is unconditionally obligated to pay at maturity. - Broadly speaking, any agreement to purchase
goods under specified terms.
Acceptance Letter Of Credit
A Letter of Credit which,
in addition to other required documents, requires presentation of a term draft
drawn on the bank nominated as the accepting bank under the Letter of Credit.
Accepted Draft
A bill of exchange
accepted by the drawee (acceptor) by putting his
signature (acceptance) on its face. In doing so, he commits himself to pay the
bill upon presentation at maturity.
Accepting Bank
A bank
which, by signing a time draft accepts responsibility to pay when the draft
becomes due. In this case the
bank is the drawee (party asked to pay the draft),
but only becomes the acceptor (party accepting responsibility to pay) upon
acceptance (signing the draft). See acceptance; bill of exchange.
Acceptor
The
party that signs a draft or obligation, thereby agreeing to pay the stated sum
at maturity.
Accession
The process by which a
country becomes a member of an international agreement, such as the General Agreement
on Tariffs and Trade (GATT) now known as the World Trade Organization (WTO).
Accession to the WTO involves negotiations to determine the specific
obligations a nonmember country must undertake before it will be entitled to
full WTO membership benefits.
Accessions
Goods
that are affixed to and become part of other goods; or, countries that are
accepted as members of an international agreement.
Accessorial Charges
Charges that are applied
to the base tariff rate or base contract rate, e.g., bunkers, container,
currency, destination/delivery.
Accessorial Services
Services performed by a
shipping line or airline in addition to the normal transportation service.
Accommodation
An action
by one individual or legal entity that is taken as a favor, without any
consideration, for another individual or legal entity.
Accommodation Note Or
Paper
A
commercial instrument of debt that is issued by or for an accommodated party (who
is expected to pay the debt) and that contains the name of the accommodation
party.
Accord and Satisfaction
A means
of discharging a contract or cause of action by which the parties agree (the
accord) to alter their obligations and then perform (the satisfaction) the new
obligations.
Account Number
An identifying number
issued by a business entity; or carrier's accounting office to identify a
shipper and/or consignee.
Accounts Payable
A
current liability representing the amount owed by an individual or a business
to a creditor(s) for merchandise or services purchased on an open account or
short-term credit.
Accounts Receivable
Money owed a business
enterprise for merchandise or services bought on open or credit account
Accrual of Obligation
The time at which an
obligation matures or vests, requiring the obligor to perform or pay.
Acquiescence
When a bill of lading is
accepted or signed by a shipper or shipper's agent without protest, the shipper
is said to acquiesce to the terms, giving a silent form of consent.
Acquittance
A
written receipt in full, in discharge from all claims.
Acquisition
The
purchase of complete or majority ownership in a business enterprise, usually by
another business enterprise or entity.
Act of God
An act of
nature beyond man’s control such as lightning, flood, earthquake or hurricane. Many
shipping and other performance contracts include a “Force Majeure”
clause which, excuses a party who breaches a contract
due to Acts of God.
Act of Man
In water transportation,
the deliberate sacrifice of cargo to make the vessel safe for the remaining
cargo. Those sharing in the spared cargo proportionately cover the loss.
Action Ex Contractu
A legal
action for breach of a promise stated in an express or implied contract.
Action Ex Delicto
A legal
action for a breach of a duty that is not stated in a contract but arises from
the contract. A legal action that arises
from a wrongful act, such as fraud.
Ad Valorem
Literally: according to value. Any charge, tax, or duty
that is applied as a percentage of value.
Ad Valorem Equivalent
AVE is the rate of duty
which would have been required on dutiable imports under that item, if the
Address of Record
The
official or primary address location for an individual, company, or other
entity.
Adhesion Contract
A contract with standard,
often printed, terms for sale of goods and services offered to consumers who
usually cannot negotiate any of the terms and cannot acquire the product unless
they agree to the terms.
Adjustment Assistance
Financial,
training and re-employment technical assistance to workers, and technical
assistance to firms and industries, to help them cope with adjustment
difficulties arising from increased import competition.
Administrative Judge
A representative of a government commission or Law agency vested with power to
administer oaths, examine witnesses, take testimony, and conduct hearings of cases
submitted to, or initiated by, that agency. Also called
Hearing Examiner.
Admiralty
Refers
to marine matters such as an
A court
of law that has jurisdiction over maritime legal issues.
Admission Temporaire
The free
entry of goods normally dutiable for a specified period of time.
Advance
To move cargo up-line to a
vessel leaving sooner than the one booked. (See "Roll.")
Advance Against Collection
A short term loan or
credit extended to the seller (usually the exporter) by the seller's bank once
a draft has been accepted by the buyer (generally the importer) of the seller's
goods.
Advance Arrangements
The
shipment of certain classes of commodities that require arrangements in advance
with carriers.
Advanced Charge
Transportation
charge advanced by one carrier to another to be collected by the later carrier
from the consignor or consignee.
Advanced Technology Products (ATP)
Products whose technology is from a recognized high
technology field, represent leading edge technology in that field; and
constitute a significant part of all items covered in the selected
classification code.
Adventure
Shipment of goods on shipper's own account. A bill of adventure is a document signed
by the master of the ship that carries goods at owner' risk.
Advice
A form
of letter that relates or acknowledges a certain activity or result with regard
to a customer's relations with a bank.
Advice of Shipment
A notice sent to a local
or foreign buyer advising that shipment has gone forward and containing details
of packing, routing, etc. A copy of the invoice is often enclosed and, if
desired, a copy of the bill of lading.
Advised Credit
A
notification to the beneficiary of a Letter of Credit whose terms and
conditions have been received by a bank.
Advising Bank
A bank operating in the
sellers' country, that handles letters of credit in
behalf of a foreign bank.
Advisory Committee on Trade Policy and Negotiation
A
The
Affiliate
An
affiliate is a business enterprise located in one country which is directly or
indirectly owned or controlled by a person of another country to the extent of
10 percent or more of its voting securities for an incorporated business
enterprise or an equivalent interest for an unincorporated business enterprise,
including a branch. For outward
investment, the affiliate is referred to as a "foreign affiliate";
for inward investment, it is referred to as a "
Affreightment
The
hiring or chartering of all or part of a vessel for the transport of goods.
Affreightment Contract
A
written contract with a ship owner to hire all or part of a ship for
transporting goods.
Afloat
Refers to
a shipment of cargo which, is currently on board a vessel between ports (as
opposed to on land).
Aft
Movement
toward the stern (back end) of a ship.
After Date
A notation used on
financial instruments (such as drafts or bills of exchange) to fix the maturity
date as a fixed number of days past the date of drawing of the draft.
After Sight
A notation on a draft that
indicates that payment is due a fixed number of days after the draft has been
presented to the drawee.
Agency Tariff
A tariff published by an
agent on behalf of several carriers.
Agent
A person authorized to
transact business for and in the name of another person or company. Types of
agent are (1) brokers, (2) commission merchants, (3) resident buyers, (4) sales
agents, 5) manufacturer's representatives.
Agent Bank
A bank acting on behalf of a foreign bank.
Agent/Distributor Service
The
ADS, is an International Trade Administration (ITA) fee-based service which
locates foreign import agents and distributors. ADS provides a
custom search overseas for interested and qualified foreign representatives on
behalf of a
Aggregate Shipment
Numerous
shipments from different shippers to one consignee that are consolidated and
treated as a single consignment.
Agreed Valuation
The value of a shipment agreed
upon in order to secure a specific freight rate.
Agreed Weight
The weight prescribed by
agreement between carrier and shipper for goods shipped in certain packages or
in a certain number.
Air Cargo
Property
(goods) of any kind that is transported by aircraft (excluding passenger
baggage).
Air Express
Expedited
air freight services.
Air Parcel Post
A term used to describe
priority mail, consisting of first class mail which weighs more than 13 ounces.
Air Waybill
An AWB is a bill of lading
which covers both domestic and international flights transporting goods to a
specified destination. Technically, it
is a non-negotiable instrument of air transport which serves as a receipt for
the shipper, indicating that the carrier has accepted the goods listed therein
and obligates itself to carry the consignment to the
airport of destination according to specified conditions.
Alienable
Ability
to be transferred or conveyed.
Aliquot
A
fractional share.
All Cargo Aircraft
Any
aircraft that is used for the sole purpose of transporting cargo.
All-In
The
total price to move a container from origin to destination, inclusive of all
charges.
Allowance
An amount paid by the seller
as restitution or reimbursement if the receiving party was dissatisfied with
the shipment for any number of reasons: faulty packaging, late arrival, etc.
All Risks Coverage
A type of marine
insurance, is the broadest kind of standard coverage, but excludes damage
caused by war, strikes, and riots.
See: Marine Cargo Insurance.
Alongside
A phrase
referring to the side of a ship. Goods to be delivered "alongside"
are to be placed on the dock or lighter within reach of the transport ship's
tackle so that they can be loaded aboard the ship. Goods
are delivered to the port of embarkation, but without
loading fees.
Alternative Tariff
A tariff
with two or more rates for the same goods, to and from the same points, with
the discretion to use the lowest of the charges.
Amendment
An addition, deletion, or
change in a binding document.
Amended B/L
B/L requiring updates that
do not change financial status; this is slightly different from corrected B/L.
Amidships
In the
middle of the vessel; often preferred by shippers because of the minimal motion
and the benefits to fragile freight.
Andean Group
The Andean Group
(Spanish: Grupo
Andino; sometimes referred to as Pacto
Andino or Corporación Adino de Fomento; formal
reference is Acuerdo de Cartegana
in recognition of the Group's establishment in Cartagena
in October 1969) is an association of Latin American countries which promotes
regional economic integration and political cooperation among themselves. Members include
Andean Reserve Fund
The Andean Reserve Fund
(Spanish: Fondo
Andina de Reservas),
associated with the Andean Group, was established to strengthen the balance of
payments positions of member countries by offering credit, guarantee loans, and
promoting compatibility among members' monetary policies. Headquarters are in
Antidumping
Are duties assessed on imported
merchandise of a class of kind that is sold to purchasers in the
Antidumping/Countervailing Duty System
The
Antidumping/Countervailing Duty System, a part of Customs' Automated Commercial
System, contains a case reference database and a statistical reporting system
to capture data for International Trade Commission reports on antidumping and
countervailing duties assessed and paid.
Antidumping Duty
A duty assessed on
imported merchandise which is subject to an antidumping duty order. The antidumping duty is assessed on an
entry-by-entry basis in an amount equal to the difference between the
See: Tariff act of 1930.
Antidumping Duty Order
A notice issued following
final determination of sales at less than fair value and material injury, or
threat of material injury, providing for the imposition of antidumping duties.
Antidumping Investigation Notice
The notice published in
the Federal Register announcing the initiation of an antidumping
investigation. An investigation must be
initiated within 20 days of the filing of a valid petition.
Antidumping Petition
A petition filed on behalf
of an affected
Any Quantity
A cargo rating that
applies to an article without consideration of weight.
Appreciation
An
increase in the value of one form of currency as compared to the currency of
another nation.
Appurtenance
An accessory connected to
a primary property used in conjunction with the primary property; usually permanently
affixed (i.e. a crane on a ship).
Apron
Area of
the airport where planes are parked for loading and unloading.
ATA Carnet
See: Carnet
Arbitrage
The
simultaneous buying and selling of the same commodity or foreign exchange in two
or more markets in order to take advantage of price differentials.
Arrangement on Guidelines for Officially Supported
Export Credits
The Arrangement is an
international agreement under Organization for Economic Cooperation and
Development auspices governing the conditions --such as interest rate,
repayment term, and cash down payment -- of medium-and long-term official
export credit; it does not apply to strictly private credit. For example, the Arrangement specifies how
governments relate the interest rate on their export credits to market
levels. Though informal and
non-enforceable, Arrangement guidelines are regularly observed by the 22 OECD
member governments that are "Participants" to the agreement.
Asian Dollars
See: Eurodollars.
As Is
Indicates that the goods
for sale do not include a warranty or guarantee and need to be accepted in the
condition in which they are.
Assessment
The
placement of antidumping duties on imported merchandise.
See: Tariff Act of 1930.
Athwartships
Across a
vessel form side to side.
Auto Parts Advisory Committee
Established
by an amendment to the Trade Act to set up an advisory committee to the U.S.
Department of Commerce for dealing with U.S.-Japan trade issues involving the
auto parts industry.
Automated Broker Interface
Also known as ABI, a part
of Customs' Automated Commercial System, permits transmission of data
pertaining to merchandise being imported into the