Change Location
Glossary of Terms
SBS Worldwide does not take responsibility for the content of these definitions, nor does it claim the content is the official legal definition of the term or endorse these as official definitions.
A
Actual Gross Weight:
The full weight of a shipment, including goods and packaging.
Air Waybill:
Is a contract between shipper and carrier containing terms and conditions.
B
Bill of Lading:
A legal document between the owner of the goods and the carrier detailing the type, quantity and destination of the good being carried. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit.
Bonded Warehouse:
A Bonded warehouse is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
C
Certificate of Origin:
This details where a product is produce and is often required if exporting to many foreign markets. It may be required in order to obtain preferential tariff treatment under Free Trade Agreements.
CFR (Cost and Freight):
Term of sale, under which the seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded onto the vessel. Maritime transport only and insurance for the goods is not included.
CIF (Cost, Insurance and Freight):
Term of sale, which is exactly the same as CFR, except that the seller must in addition procure and pay for the insurance. Maritime transport only.
CIP (Carriage Insurance Paid):
Term of sale which is the containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
CPT (Carriage Paid To):
Term of sale under which the seller pays for carriage. Risk transfers to buyer upon handing goods over to first carrier.
Consignee:
The person to whom commodities are being shipped to.
Country of Origin of Goods:
The country where goods were manufactured.
Customs Declaration:
A document that accompanies exported goods containing shipment information, for example: bearing nature of the goods, value and end destination. Often used for statistical purposes.
Customs Invoice:
A formal document used to clear goods through customs in the importing country by providing pertinent shipment information including but not limited to country of origin, description and value.
D
DAP (Delivered at Place):
Term of sale in which seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.
DAT (Delivered at Terminal):
Term of sale in which seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.
DDU) Delivered Duty Unpaid:
Term of sale. Under this term, the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto as well as the costs and risks of clearing Customs.
(DDP) Delivered Duty Paid:
Term of sale under which seller is responsible for delivering the goods to the named place in the country of the buyer and pays all costs in bringing the goods to the destination including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the buyer but the buyer loses control of freight charges and possibly end up paying duty it need not pay.
Duty:
This is a tax imposed on Customs for goods that have been imported.
E
Export Control Classification Number (ECCN):
Most products have an export control classification number (formerly export commodity classification number) within the Commerce Control List (CCL). The ECCN consists of a five-character number that identifies categories, product groups, strategic level of control, and country groups.
Export Declaration:
A declaration to Customs at port of exit of full details of goods that are exported.
Export License:
A government document required for exporting certain goods to certain locations.
(EXW) Ex Works:
Term of sale, under which the seller makes the goods available at his premises and the buyer is responsible for all charges.
F
FAS (Free Alongside Ship):
Term of sale under which the seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. Suitable for maritime transport only and not for multimodal sea containers. This term is typically used for heavy-lift or bulk cargo.
FCA (Free Carrier):
Term of sale under which the seller hands over the goods cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery and risk passes when the goods are handed over to the first carrier.
FOB (Free Onboard):
Term of sale under which the seller must load themselves the goods onboard the vessel nominated by the buyer. Cost and risk are divided when the goods are actually onboard the vessel. The seller must clear the goods for export. The term is applicable only for maritime and inland waterway transport only but not for multimodal sea transport in containers. The buyer must instruct the seller the details of the vessel and the port where goods are to be loaded and there is no reference to, or provision for, the use of a carrier ora forwarder.
I
Import Certificate:
A means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.
Importer of Record (IOR):
The owner or purchaser of the goods; or, when designated by the owner, purchaser, or consignee, a licensed customs broker.
Incoterms:
These internationally accepted rules for the interpretation of the most commonly used trade terms in foreign trade were developed and published by the International Chamber of Commerce (ICC). They are designed to aid the international movement of goods by reducing the uncertainties of differing interpretations of such terms in different countries.
L
Legal Weight:
The total weight of the merchandise, including any immediate packaging which is sold along with the goods, i.e., the weight of a tin can as well as its contents, but excluding the cartons in which the cans are packed.
M
Multiple Package Shipments:
Multiple package shipments consist of Individual packages that may have different weights, dimensions and declared value but can be accepted on one waybill if the shipment destined to a single address.
N
Non-Document Shipments:
Non-document shipments are shipments that are not personal, interoffice or business documents (PIB) and usually require a Commercial Invoice.
Q
Quantitative Restrictions (QR):
Explicit limits, usually by volume, on the amount of a specified commodity that may be imported into a country, sometimes also indicating the amounts that may be imported from each supplying country.
Quotas:
The quantity of goods that may be imported without restriction or additional duties or taxes.
S
Ship's Manifest:
An instrument in writing, signed by the captain of the ship, that lists the individual shipments constituting the ship's cargo.
Shipping Weight:
Represents the gross weight of shipments, including the weight of moisture content, wrappings, crates,
T
Tariff:
A duty placed on goods transported from one customs area to another.
Terms of sale:
The point at which sellers have fulfilled their obligations so the goods are said to have been delivered to the buyer.
V
Value Added Tax (VAT):
Assessed on the value added to goods and services. The value added tax is imposed throughout the European Community and European Free Trade Association (EFTA) countries and many other trading nations.
W
Waybill:
A detailed description of the shipment is sent to the transfer point.
Weight Note:
This note, or slip, shows the individual weight of each unit and is included in cases. It is also the official weigher's record.
Our Key Services
We provide a wide range of solutions from courier through to project management and logistics services to support our clients' business requirements.
Contact Us
Our worldwide team is ready to help and answer any questions you have. Get in touch to find out more.
© SBS Worldwide Ltd registered in England No: 1739816
Terms & Conditions (UK)
Terms & Conditions (US)Privacy StatementSitemap