All Risk Alongside Automated Broker Interface Automated Clearinghouse Bill of Lading Bond System Bonded Warehouse Caged Cargo Selectivity System Carnet Clean Bill of Lading Collection Papers Collection System Commercial Invoice Commercial Risks Consignee Consignment Consular Invoice Credit Risk Insurance Customs Customs Broker Customs Clearance Customs Invoice Customs Import Value Customs Invoice Declaration by Foreign Shipper Delivery Instructions Delivery Verification Certificate Demurrage Deposit of Estimated Duties Distribution License Dock Receipt Documents Against Acceptance (D/A) Documents Against Payment (D/P) Drawback Drawback System Duty EDIFACT Entrepot Entry Summary System Entry Summary Selectivity System Entry Value Export Control Classification Number Export License Federal Maritime Commission Flag of Convenience Foreign Exports Forty Feet Equivlent Unit (FEU) Foul Bill of Lading Free Ports Freight for All Kinds Freight Forwarder Gateway Gross Weight Harmonized System Ice Clause Import Certificate Importer of Record Import License Incoterms Individual Validated License Inherent Vice Inland Bill of Lading Insurance Certificate Integrated Carriers Intermediate Consignee Intermediate Container Transfer Facility Intermodal International Maritime Organization Irrevocable Letter of Credit Letter of Credit Marine Cargo Insurance NVOCC Ocean Bill of Lading Open Account Open Insurance Policy Packing List Political Risk Pro Forma Invoice Re-exports Revocable Letter of Credit Shipper's Export Declaration Ship's Manifest Shipping Mark Shipping Weight T/T Table of Denial Orders Tare Weight Tariff Tariff Act of 1930 Tariff Anomaly Tariff Escalation Tariff Quotas Tariff Schedule Tariff Schedules of the United States Annotated Temporary Importation under Bond Through Bill of Lading Transshipment Transit Zones Transmittal Letter Twenty-Foot Equivalent Unit (TEU) Ultimate Consignee Usance Validated Export License Value for Customs Purposes Only War/Strike Clause Wharfage With Average
Items marked with an * have been provided by :-
Freight Training (Pty) Ltd (reg. 98/08465/07) Freight Training Corporate Holdings (Pty) Ltd (reg 98/04147/07) Tel +27 (0)11 974-3083 Fax +27 (0)11 974-3085 http://freighttraining.co.za All Risk All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots. Back to top of screen
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. Back to top of screen
Automated Broker Interface ABI, a part of Customs' Automated Commercial System, permits transmission of data pertaining to merchandise being imported into the United States. Qualified participants include brokers, importers, carriers, port authorities, and independent data processing companies referred to as service centers. Back to top of screen
Automated Clearinghouse The Automated Clearinghouse (ACH) is a feature of the Automated Broker Interface which is a part of Customs' Automated Commercial System. The ACH combines elements of bank lock box arrangements with electronic funds transfer services to replace cash or check for payment of estimated duties, taxes, and fees on imported merchandise. Back to top of screen
Bill of Lading (B/L) Bills of lading are contracts between the owner of the goods and the carrier. There are two types. 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 and is used for many types of financing transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods. Back to top of screen
Bond System The Bond System, a part of Customs' Automated Commercial System, provides information on bond coverage. A Customs bond is a contract between a principal, usually an importers, and a surety which is obtained to insure performance of an obligation imposed by law or regulation. The bond covers potential loss of duties, taxes, and penalties for specific types of transactions. Customs is the contract beneficiary. Back to top of screen
Bonded Warehouse The U.S. Customs Service authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points. Back to top of screen
Caged Before import customs formality has been completed cleared and released, cargo is remained at bonded warehouse under customs custody. Back to top of screen
Cargo Selectivity System The Cargo Selectivity System, a part of Customs' Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments of risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper. Back to top of screen
Carnet A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, domonstration or other purposes without paying import duties or posting bonds. Back to top of screen
Clean Bill of Lading A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damages or other irregularities. Back to top of screen
Collection Papers All documents (invoices, bills of lading or air waybill, etc.) submitted to a buyer for the purpose of receiving payment for a shipment. Back to top of screen
Collection System The Collections System, a part of Customs' Automated Commercial System, controls and accounts for the billions of dollars in payments collected by Customs each year and the millions in refunds processed each year. Daily statements are prepared for the automated brokers who select this service. The Collections System permits electronic payments of the related duties and taxes through the Automated Clearinghouse capability. Automated collections also meet the needs of the importing community through acceptance of electronic funds transfers for deferred tax bills and receipt of electronic payments from lockbox operations for Customs bills and fees. Back to top of screen
Commercial Invoice The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods for the assessment of customs duties and are also used to prepare consular documentation. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used, and other characteristics. Back to top of screen
Commercial Risks With respect to Eximbank guarantees, commercial risks cover nonpayment for reasons other than specified Political Risks. Examples are insolvency or protracted default. Back to top of screen
Consignee The person or firm named in a freight contract to whom goods have been consigned or turned over. For export control purposes, the documentation differentiates between an "intermediate" consignee and an "ultimate" consignee. Back to top of screen
Consignment Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor. Back to top of screen
Consular Invoice A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity, and nature of the shipment. Back to top of screen
Customs Broker An individual or company licensed by the government to enter and clear goods through Customs. The U.S. Customs Service defines a Customs Broker, as any person who is licensed in accordance with Part III of Title 19 of the Code of Federal Regulations (Customs regulations) to transact Customs business on behalf of others. Customs business is limited to those activities involving transactions with Customs concerning the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected by Customs upon merchandise by reason of its importation, or the refund, rebate, or drawback thereof. Back to top of screen
Customs Clearance The procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo such as FCC or FDA approval. Back to top of screen
Customs Import Value This is the U.S. Customs Service appraisal value of merchandise. Methodologically, the Customs value is similar to f.a.s. (free alongside ship) value since it is based on the value of the product in the foreign country of origin, and excludes charges incurred in bringing the merchandise to the United States (import duties, ocean freight, insurance, and so forth); but it differs in that the U.S. Customs Service, not the importer or exporter, has the final authority to determine the value of the good. Back to top of screen
Customs Invoice A document, required by some foreign countries' customs officials to verify the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Back to top of screen
Declaration by Foreign Shipper The U.S. Customs Service defines this term as a statement by the shipper in the foreign country attesting to certain facts. For example, articles shipped from the United States to an insular possession and then returned must be accompanied by a declaration by the shipper in the insular possession, indicating that, to the best of his or her knowledge, the articles were exported directly from the United States to the insular possession and remained there until the moment of their return to the United States. (see 19 CFR 4.60 and 4.61 on U.S. clearance of vessels bound for a foreign port or ports.) Back to top of screen
Delivery Instructions Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused with Delivery Order which is used for import cargo. Back to top of screen
Delivery Verification Certificate The U.S. Customs Service defines a DVC as a form used to track imported merchandise from the custody of the importer to the custody of a manufacturer and is used to substantiate a manufacturing drawback claim. The DVC is also known as a Certificate of Delivery (Customs Form 331).
An export license may be issued with a requirement for delivery verification by Customs in the receiving country. When delivery verification is required by a foreign government for goods imported into the U.S., the U.S. Customs Service will certify a delivery verification certificate (Form ITA-647). A U.S. export license may require submission of a similar form from an importing country. Back to top of screen
Demurrage Excess time taken for loading or unloading a vessel, thus causing delay of scheduled departure. Demurrage refers only to situations in which the charter or shipper, rather than the vessel's operator, is at fault. Back to top of screen
Deposit of Estimated Duties This refers to antidumping duties which must be deposited upon entry of merchandise which is the subject of an antidumping duty order for each manufacturer, producer or exporter equal to the amount by which the foreign market value exceeds the United States price of the merchandise. Back to top of screen
Distribution License The DL is a Special License that allows the holder to make multiple exports of authorized commodities to foreign consignees who are approved in advance by the Bureau of Export Administration. The procedure also authorizes approved foreign consignees to reexport among themselves and to other approved countries. Applicants and consignees must establish Internal Control Programs to ensure the proper distribution of items under the DL. Each program must include comprehensive procedures for ensuring that the items exported will be used only for legitmate end-uses. Back to top of screen
Dock Receipt A dock receipt is used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export. Back to top of screen
Documents Against Acceptance (D/A) Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance (signature on) of the attached draft. Back to top of screen
Documents Against Payment (D/P) Stipulate that the exporter ships goods to the importer without a letter of credit or another form of guaranteed payment. The importer must sign a sight draft before receiving the necessary documents to pick up the goods. Documents Against Acceptance (D/A) are instructions given by a shipper to a bank stating that the documents transferring title to goods should be delivered to the buyer only upon the signing of a time draft. In this manner an exporter extends credit to the importer and agrees to accept payment at a readily determined future date. Back to top of screen
Drawback Drawback is a rebate by a government, in whole or in part, of customs duties assessed on imported merchandise that is subsequently exported. Drawback regulations and procedures vary among countries. Back to top of screen
Drawback System The Drawback System, a part of Customs' Automated Commercial System, provides the means for processing and tracking of drawback claims. Back to top of screen
Duty A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties). Back to top of screen
EDIFACT EDIFACT, Electronic Data Interchange for Administration, Commerce, and Transportation, is an international syntax used in the interchange of electronic data. Customs uses EDIFACT to interchange data with the importing trade community. Back to top of screen
Entrepot An intermediary storage facility where goods are kept temporarily for distribution within a country or for reexport. Back to top of screen
Entry Summary System An entry is the minimum amount of documentation needed to secure the release of imported merchandise. The Entry Summary System, a part of Customs' Automated Commercial System, contains data on release, summary, rejection, collection, liquidation, and extension or suspension. Back to top of screen
Entry Summary Selectivity System The Entry Summary Selectivity System, a part of Customs' Automated Commercial System, provides an automated review of entry data to determine whether team or routine review is required. Selectivity criteria include an assessment of risk by importer, tariff number, country of origin, manufacturer, and value. Summaries with Census warnings, as well as quota, antidumping and countervailing duty entry summaries are selected for team review. A random sample of routine review summaries is also automatically selected for team review. Back to top of screen
Entry Value The U.S. Customs Service defines entry value (or entered value) as the value reflected on the enry documentation submitted by the importer. (see 19 CFR 141.61 for how shown on entry.) Back to top of screen
Export Control Classification Number Every product has an export control classification number (formerly: Export Control Commodity Number) within the Commerce Control List. Each ECCN consists of five characters that identify the category, product group, type of control, and country group level of control. Back to top of screen
Export License A government document (also known as an "Individual Validated License") authorizing exports of specific goods in specific quantities to a particular destination. This document may be required in some countries for most or all exports and in other countries only under special circumstances. Back to top of screen
Federal Maritime Commission The FMC is an independent agencys which regulates oceanborne transportation in the foreign commerce and in the domestic offshore trade of the United States. Back to top of screen
Flag of Convenience A ship registered under the flag of a nation which offers conveniences in the areas of taxes, crew, and safety requirements. Back to top of screen
Foreign Exports Exports of foreign merchandise (re-exports), consist of commodities of foreign origin which have entered the United States for consumption or into Customs bonded warehouses or U.S. Foreign Trade Zones, and which, at the time of exportation, are in substantially the same condition as when imported. Back to top of screen
Forty Feet Equivlent Unit (FEU) Back to top of screen
Foul Bill of Lading A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Back to top of screen
Free of Particular Average (FPA) F.P.A., a type of marine insurance, is the minimum coverage in use and covers total and partial losses if the ship carrying an exporter's goods is involved in a collision or fire, or is stranded or sunk. Back to top of screen
Free Ports Free ports are a form of free trade zone that usually encompass an entire port area (examples include Hong Kong and Singapore). Back to top of screen
Freight for All Kinds FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo. Back to top of screen
Freight Forwarder An independent business which handles export shipments for compensation. At the request of the shipper, the forwarder makes the actual arrangements and provides the necessary services for expediting the shipment to its overseas destination. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter's name. The forwarder arranges for cargo insurance, makes the necessary overseas communications, and advises the shipper on overseas requirements of marking and labeling. The forwarder operates on a fee basis paid by the exporter and often receives an additional percentage of the freight charge from the common carrier. An export freight forwarder must be licensed by the Federal Maritime Commission to handle ocean freight and by the International Air Transport Association (IATA) to handle air freight. An ocean freight forwarder dispatches shipments from the United States via common carriers, books or arranges space for the shipments, and handles the shipping documentation. Back to top of screen
Gateway In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place. Back to top of screen
Gross Weight The full weight of a shipment, including goods and packaging. Compare Tare Weight. Back to top of screen
Harmonized System The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council. Beginning on January 1, 1989, the new HS numbers replaced previously adhered-to schedules in over 50 countries, including the United States.
For the United States, the HS numbers and four additional digits are the numbers that are entered on the actual export and import documents. Any other commodity code classification number (SITC, end-use, etc.) are just rearrangements and transformations of the original HS numbers. Back to top of screen
Ice Clause An ice clause is a standard clause in the chartering of ocean vessels. It dictates the course a vessel master may take if the ship is prevented from entering the loading or discharge port because of ice, or if the vessel is threatened by ice while in the port. The clause establishes rights and obligations of both vessel owner and charterer if these events occur. Back to top of screen
Import Certificate The import certificate is 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. Back to top of screen
Importer of Record The U.S. Customs Service defines the importer of record as the owner or purchaser of the goods; or, when designated by the owner, purchaser, or consignee, a licensed Customs broker. Back to top of screen
Import License A document required and issued by some national governments authorizing the importation of goods.Also referred as import permit. With such documentation, customs clearance can be conducted. Back to top of screen
Incoterms Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred. Back to top of screen
Individual Validated License An IVL is written approval by which the U.S. Department of Commerce grants permission, which is valid for 2 years, for the export of a specified quantity of products or technical data to a single recipient. IVLs also are required, under certain circumstances, as authorization for the reexport of U.S.-origin commodities to new estinations abroad. Back to top of screen
Inherent Vice An insurance term referring to any defect or other characteristics of a product which could result in damage to the product without external cause. Insurance policies may specifically exclude losses caused by inherent vice. Back to top of screen
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. Back to top of screen
Insurance Certificate This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit. Back to top of screen
Integrated Carriers Carriers that have both air and ground fleets; or other combinations, such as sea, rail, and truck. Since they usually handle thousands of small parcels an hour, they are less expensive and offer more diverse services than regular carriers. Back to top of screen
Intermediate Consignee An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee. Back to top of screen
Intermediate Container Transfer Facility ICTF is a site where cargo is transferred from one form of transit to another, such as rail to ship. Back to top of screen
Intermodal Movement of goods by more than one mode of transport, ie. airplane, truck, railroad and ship. Back to top of screen
International Maritime Organization The IMO was established as a specialized agency of the United Nations in 1948. The IMO facilitates cooperation on technical matters affecting merchant shipping and traffic, including improved maritime safety and prevention of marine pollution. Headquartrers are in London, England. Back to top of screen
Irrevocable Letter of Credit A letter of credit in which the specified payment is guaranteed by the issuing bank if all terms and conditions are met by the drawee. It is as good as the issuing bank. Back to top of screen
Letter of Credit A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary. A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults. A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer. Back to top of screen
Marine Cargo Insurance Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. Three of the most common types of marine insurance coverage are "free of particular average" (f.p.a.), "with average" (w.a.), and "All Risks Coverage." Back to top of screen
NVOCC Non-Vessel Operating Common Carrier - A company which consolidates small shipment s from different sources consigned to the same destination into a single container for shipment overseas by either ocean or air carriers. Back to top of screen
Ocean Bill of Lading A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership which can be bought, sold, or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order" Bill-of-Lading.
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Open Account A trade arrangement in which goods are shipped to a foreign buyer before, and without written guarantee of, payment. Because this method poses an obvious risk to the supplier, it is essential that the buyer's integrity be unquestionable. Back to top of screen
Open Insurance Policy A marine insurance policy that applied to all shipments made by an exporter over a period of time rather than to one shipment only. Back to top of screen
Packing List A shipping document issued by shipper to carrier, Customs and consignee serving the purposes of identifying detail information of package count, products count, measurement of each package, weight of each package, etc. Back to top of screen
Political Risk In export financing, the risk of loss due to currency inconvertibility, foreign government action preventing the delivery of goods, revolution, war, expropriation, confiscation, etc. Back to top of screen
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, and similar characteristics). When an importer applys for Letter of Credit as the means of payment, a Pro Forma Invoice from the beneficiary of such Letter of Credit, usually the exporter, is required by the L/C issuing bank. Back to top of screen
Re-exports For export control purposes: the shipment of U.S. origin products from one foreign destination to another.
For statistical reporting purposes: exports of foreign-origin merchandise which have previously entered the United States for consumption or into Customs bonded warehouses for U.S. Foreign Trade Zones. Back to top of screen
Revocable Letter of Credit A letter of credit which can be cancelled or altered by the drawee (buyer) after it has been issued by the drawee's bank. Back to top of screen
Shipper's Export Declaration The SED includes complete particulars on individual shipments and is used to control exports and act as a source document for the official U.S. export statistics. SEDs must be prepared for shipments through the U.S. Postal Service when the shipment is valued over $500. SEDs are required for shipments, other than by the U.S. Postal Service, where the value of commodities classified under each individual Schedule B number is over $2,500. SEDs must be prepared, regardless of value, for all shipments requiring a validated export license or destined for countries prohibited by the Export Administration Regulations. SEDs are prepared by the exporter and the exporter's agent and delivered to the exporting carrier (such as: post office, airline, or vessel line). The exporting carrier presents the required number of copies to the U.S. Customs Service at the port of export.
The Foreign Trade Statistical Regulations (15 CFR, Part 30) provide the statistical requirements for use by exporters, freight forwarders, and ocean carriers concerning preparation and filing of SEDs. Back to top of screen
Ship's Manifest A list, signed by the captain of a ship, of the individual shipments constituting the ship's cargo. Back to top of screen
Shipping Mark The letters, numbers or other symbols placed on the outside of cargo to facilitate identification. Back to top of screen
Shipping Weight Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers). Back to top of screen
T/T Telegraphic Transfer, also referred as Wire Funds. Back to top of screen
Table of Denial Orders The TDO is a list of individuals and firms that have been disbarred from shipping or receiving U.S. goods or technology. Firms and individuals on the list may be disbarred with respect to either controlled commodities or general destination (across-the-board) exports. The list is published in the Export Administration Regulations. Back to top of screen
Tare Weight The weight of a container and/or packing materials without the weight of the goods it contains. Back to top of screen
Tariff A tax assessed by a government in accordance with its tariff schedule on goods as they enter (or leave) a country. May be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or some combination. Back to top of screen
Tariff Act of 1930 Title VII of the Tariff Act of 1930, as amended, provides for the imposition of antidumping duties on imported merchandise found to have been sold in the United States at "less than fair value," if these sales have caused or are likely to cause material injury to, or materially retard the establishment of, an industry in the United States. Back to top of screen
Tariff Anomaly A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product. Back to top of screen
Tariff Escalation A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low. Back to top of screen
Tariff Quotas Application of a higher tariff rate to imported goods after a specified quantity of the item has entered the country at a lower prevailing rate. Back to top of screen
Tariff Schedule A comprehensive list of the goods which a country may import and the import duties applicable to each product. Back to top of screen
Tariff Schedules of the United States Annotated Effective 1979 to January 1989, the U.S. import statistics were initially collected and compiled in terms of the commodity classifications in the Tariff Schedules of the United States Annotated (TSUSA), an official publication of the U.S. International Trade Commission embracing the legal text of the Tariff Schedules of the United States (TSUS) together with statistical annotations. This publication was superseded by the Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes (HTSUSA) in January 1989.
Effective 1979 to January 1989, the U.S. export statistics were initially collected and compiled in terms of the commodity classifications in Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. Schedule B is a U.S. Bureau of the Census publication and, during this period, was based on the framework of the TSUS. In January 1989, this publication was replaced by Schedule B based on the Harmonized System. Back to top of screen
Temporary Importation under Bond When an importer makes entry of articles brought into the United States temporarily and claimed to be exempt from duty under Chaper 98, Subchapter XIII, Harmonized Tariff Schedule of the United States, a bond is posted with Customs which guarantees that these items will be exported within a specified time frame (usually within one year from the date of importation). Failure to export these items makes the importer liable for the payment of liquidated damages for breach of the bond conditions. (See 19 CFR 10.31.). The Temporary Importation under Bond (TIB) is usually twice the amount of duties and other payments the importer would otherwise be required to pay. Merchandise imported under TIB is usually for sales demonstration, testing, or repair. Back to top of screen
Through Bill of Lading A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation. Back to top of screen
Transshipment Transshipment refers to the act of sending an exported product through an intermediate country before routing it to the country intended to be its final destination. Back to top of screen
Transit Zones Transit zones, a form of free trade zone, are ports of entry in coastal countries that are established as storage and distribution centers for the convenience of a neighboring country lacking adequate port facilities or access to the sea. A transit zone is administered so that goods in transit to and from the neighboring country are not subject to the customs duties, import controls or many of the entry and exit formalities of the host country. Transit zones are more limited facilities then a foreign trade zone or a free port. Back to top of screen
Transmittal Letter A list of the particulars of the shipment and a record of the documents being transmitted together with instructions for disposition of documents. Any special instructions are also included. Back to top of screen
Twenty-Foot Equivalent Unit (TEU) TEU is a measure of a ship's cargo-carrying capacity. One TEU measures twenty feet by eight feet by eight feet -- the dimensions of a standard twenty-foot container. An FEU equals two TEUs. Back to top of screen
Ultimate Consignee The ultimate consignee is the person located abroad who is the true party in interest, receiving the export for the designated end-use. Back to top of screen
Usance Back to top of screen
Validated Export License A document issued by the U.S. government authorizing the export of commodities for which written export authorization is required by law. Two types exist: an Individual Validated License (IVL) and a Special License. Back to top of screen
Value for Customs Purposes Only The U.S. Customs Service defines "value for Customs purposes only" as the value submitted on the entry documentation by the importer which may or may not reflect information from the manufacturer but in no way reflects Customs appraisement of the merchandise. Back to top of screen
War/Strike Clause An insurance provision that covers loss due to war and/or strike. Back to top of screen
Wharfage A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. Back to top of screen
With Average A marine insurance term meaning that a shipment is protected from partial damage whenever the damage exceeds 3 percent (or some other percentage). If the ship is involved in a major catastrophe, such as a collision, fire or stranding, the minimum percentage requirement is waived and the insurance company pays for all of the damage. Back to top of screen