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The A to Z provides definitions and common abbreviations for words and phrases used in exporting. International commercial terms are included in this list.
A
Ad valorem duty (Ad.Val)
According to the value; an assessment at a certain rate per cent on the actual value of an article
Advance freight
Payment on account of the freight costs to cover ship's outlay during loading
Advice note
A letter stating that a business transaction is being undertaken or completed on the recipient's behalf
AEP
See: automated entry processing
After date
Time begins to run from this date on a draft bearing this phrase. The date of maturity is fixed and does not depend on presentation or acceptance.
After sight (A/s)
When a draft bears this phrase, the time begins to run from its presentation or acceptance
Agency agreements
The agreement between the principal and an agent that the agent will represent the principal in doing business; legal advice is necessary when drawing up an agency agreement to ensure it complies with EU legislation
Air Waybill (AWB)
A ticket for your goods to go by air, including where it goes, services needed, how paid, the customs declaration and proof of consignment when stamped by the carrier
A/s
See: After sight (A/s)
ATA carnet
An international Customs document that a owner or carrier may use to temporarily import certain goods into a country, without having to engage in the Customs formalities usually required for the importation of goods, and without having to pay duty or value-added taxes on the goods. The document is based on guarantees or bonds
At Sight
Payable at presentation to the drawee, that is, on demand
Automated entry processing (AEP)
Name given to the automated system for Irish import and export procedures; the Revenue Commissioners provide guides for use.
av
See: Average (AV)
Average (av)
A term in marine insurance signifying loss or damage to merchandise
AWB
See: Air Waybill (AWB)
Back-to-back credits
Used where an exporter wins a major contract but needs to purchase raw materials to manufacture the goods to be supplied under the contract. The letter of credit opened in his favour by the importer may be used by the exporter to finance the purchase of the raw material. Banks will consider raising back-to-back credit only for clients whom they know well, and who have proven track records in letter of credit transactions because the risk of non-payment of the original credit can be very high.
Banker's indemnity or guarantee
A form required by the shipowner to be completed by the consignee, and countersigned by consignee's banker, when release of goods is required without production of bill of lading. Also required when 'clean' bills of lading are called for by letter of credit and the shipowner, for various reasons, wishes to clause them.
B/E
See: Bill of exchange (B/E)
Bill of entry
A shipper's detailed statement for customs purposes of the nature and value of the goods in a consignment.
Bill of exchange (B/E)
Legally defined as 'an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a certain sum in money to or to the order of, a specified person, or to bearer'; often referred to as a draft. It is the most general method of obtaining payment for goods shipped abroad.
Bill of lading (ocean) (B/L)
A document signed by the captain, agents, or owners of a vessel, furnishing written evidence for the conveyance and delivery of merchandise sent by sea. It is both a receipt for merchandise and a contract to deliver it as freight.
Clean - Used of a bill of lading when the transport company has not noted irregularities in packing or general condition of the shipment
Straight - a bill of lading drawn directly to the consignee and therefore not negotiable
Order - A bill of lading, drawn to the order of some party, usually the shipper or the bank, whose endorsement is required to effect negotiability. The title therefore passes to the holder.
Order 'notify' - a bill of lading drawn usually to order of the skipper or the bank with the additional clauses that the consignee is to be notified upon arrival of the goods. This mention of the consignee's name does not give title to the goods.
Through bill of lading - a bill of lading used when several carriers are involved such as rail initially and then vessel to final destination. Used when transportation involves two or more carriers.
Binding tariff information (BTI)
Written information issued by the customs authorities of the Member States on the classification of goods in the combined nomenclature or a nomenclature derived from it, such as the TARIC
B/L
See: Bill of lading (ocean) (B/L)
Blank endorsement
Signature on the back of a bill of exchange or bill of lading without any qualifying instructions
BTI
See: Binding tariff information (BTI)
C
CAD
See: Cash against documents (CAD)
CAP
See: Common agricultural policy (CAP)
Carnet
A document allowing the importation of certain goods to countries without paying customs duty, for instance, temporary importation; see also ATA carnet and TIR carnet
Carriage and insurance paid to (abbreviated as CIP) [Incoterm 2000]
The seller delivers the goods to the carrier, all risk passes to the buyer once it is in the hands of the carrier, as well as any additional costs that occur. The seller pays for carriage to the named destination and the insurance. The passing of risk occurs when the goods have been delivered into the custody of the carrier.
Carriage paid to (CPT) [Incoterms 2000]
The seller delivers the goods to the carrier nominated by him and pays the additional costs of carriage necessary to bring the goods to the named destination. The seller also clears the goods for export. The buyer bears all risks and any other costs occurring after the goods have been delivered. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. These terms can be used irrespective of mode of transport.
Cash against documents (CAD)
Full shipping documents are sent to a bank or an agent at the port of destination with instructions to hand them to the consignee only in exchange of the sum due.
Common agricultural policy (CAP)
A system of European Union agricultural subsidies and programmes. The subsidies guarantee a minimum price to producers and pay a direct subsidy for crops planted.
C/D
See: Customs declaration (C/D)
Certificate of damage
Issued by dock companies in regard to good unloaded or received in a damaged condition
Certificate of Free Sale
A formal confirmation issued by a trade association or government that a product meets various safety and health requirements and so may be freely sold to the public in a particular country. In Ireland it is issued by a Government Department and states that the product is manufactured in Ireland and there is no restriction on its sale on the home market.
Certificates of origin (C/O)
A document to prove the place of growth, production, or manufacture of goods; the signature of the consul of the country of destination is sometimes required.
CFR [Incoterms 2000]
See: Cost and freight (CFR) Incoterms_2000_
C.& I.
See: Cost and insurance (C.&_I.)
CIF [Incoterms 2000]
See: Cost, insurance and freight (CIF) Incoterms_2000_t
CIP [Incoterms]
See: Carriage paid to (CPT) Incoterms_2000_
Clean draft
A document to which no documents are attached
CN
See:Combined nomenclature (CN)
C/O
See: Certificates of origin (C/O)
Combined nomenclature (CN)
A systematic list of goods descriptions based on the Harmonized System, serving for the purposes of the Common Customs Tariff, external trade statistics, and other Community policies.
Com.I.
See: Commercial invoice (Com.I.)
Commercial invoice (Com.I.)
A trade invoice
Consignee
The person, firm or representative, to whom a seller or shipper sends goods and who, upon presentation of the necessary documents, is recognised as owner of the goods for the declaration and payment of customs duties
Consignment
A quantity of goods shipped
Consignor
The seller or shipper of the goods
Consulage
Consul's fees
Consular documents
Bills of lading, certificates of origin, or special forms of invoice, to which has been added the signature of the consul of the importing country
Consular invoice
A detailed statement of goods shipped, certified by the consul at the point of shipment. Forms are available from the consular section of Embassy, completed by exporter and submitted to Embassy again for legalisation.
Cost and freight (CFR) [Incoterms 2000]
The seller is responsible until the goods pass the ship's rail in the port of shipment and for the cost of getting the goods to the named port of destination. This term can be used only for sea and inland waterway transport. Same as CIF, except that insurance is covered by the buyer.
Cost and insurance (C.& I.)
Same as CIF except that freight is paid by the buyer
Cost, insurance and freight (CIF) [Incoterms 2000]
Used in connection with a price quotation under which the seller defrays all expenses involved in the delivery of the goods on board the vessel, prepays the freight and insures the goods to an agreed destination. This Incoterm is limited to sea and inland waterway transport
CPT [Incoterms 2000]
See: Carriage paid to (CPT) Incoterms 2000_
Customs declaration (C/D)
Description of value and net weight of goods in a parcel sent overseas by post
Customs warehousing
A procedure that enables the suspension of Import Duty and/or Value Added Tax for imported non-European Union goods by storing them in premises or under an inventory system authorised by Customs and Excise.
D
D/A
See: Documents against acceptance (D/A)
DAF [Incoterms 2000]
See: Delivered at frontier (DAF) Incoterms_2000_
Date draft
A draft which matures on a fixed date, irrespective of acceptance
DDP [Incoterms 2000]
See: Delivered duty paid (DDP) Incoterms_2000_
DDU [Incoterms 2000]
See: Delivered duty unpaid (DDU) Incoterms 2000_
Delivered at frontier (DAF) [Incoterms 2000]
The seller's responsibility is to hire a forwarder to take goods to a named frontier, usually a border crossing point, and clear them for export - this constitutes 'delivery' This term can be used for any mode of transport provided goods are to be delivered at land frontier.
Delivered duty paid (DDP) [Incoterms 2000]
The shipper/seller is responsible for dealing with all the tasks involved in moving goods from the manufacturing plant to the buyer/consignee's door. This term can be used irrespective of mode of transport.
Delivered duty unpaid (DDU) [Incoterms 2000]
Basically the same as DDP, except the buyer is responsible for the duty, fees and taxes; this term can be used irrespective of mode of transport
Delivered ex quay (DEQ) [Incoterms 2000]
The seller is responsible for delivering the goods to the quay, wharf or port of destination. The buyer/consignee is responsible for duties and charges and customs clearance. This term is limited to for sea, inland waterway or multimodal transport.
Delivered ex ship (DES) [Incoterms 2000]
It is the seller's responsibility to get the goods to the port of destination or to engage the forwarder to the move cargo to the port of destination uncleared - this constitutes 'delivery'. Destination charges that occur after the ship has docked are the buyer's responsibility. This term is limited to sea or inland waterway or multimodal transport.
Demurrage
The charge made for delay to vessels after a stated free period
DES [Incoterms 2000]
See: Delivered ex ship (DES) Incoterms 2000_
DEQ [Incoterms 2000]
See: Delivered ex quay (DEQ) Incoterms 2000_
Disbursements
Shipper's charges collected by the shipowner from the consignee on the shipper's behalf
Dock receipt
Receipt issued by an ocean carrier or its agent for goods delivered at its dock or warehouse awaiting shipment
Documentary credit
A commercial letter of credit providing for payment by a bank to the named beneficiary, usually the seller of the goods, against delivery of such documents as may be specified in the credit
Documents against acceptance (D/A)
Instructions given by a shipper to a bank that the documents attached to a draft for collection are deliverable to the drawee against acceptance of the draft
Documents against payment (D/P)
Instructions given by a shipper to a bank that the documents attached to a draft for collection are deliverable to the drawee only against the latter's payment of the draft
Domicile
The place where a draft or acceptance is payable
D/P
See: Documents against payment (D/P)
Draft
See: Bill of exchange (B/E)
Drawback system
One of the two variants of the inward processing procedure under which the import duties are paid at release for free circulation and refunded when the processed products or the goods in the unaltered state are re-exported. Many free-trade agreements don't allow drawback if a preferential proof of origin is issued.
Duty
Money payable on goods on arrival at their destination; various types of duty exist, for example, ad valorem is a percentage on the value, specific duty is an amount of money on the item itself or the weight of the item, and compound duty is both a specific and ad valorem duty
E
EEA
See: European Economic Area
EFTA
See: European Free Trade Association (EFTA)
E&O.E.
See: Errors and omissions accepted (E&O.E.)
Errors and omissions accepted (E&O.E.)
A phrase accompanying the shipper's signature on an invoice, disclaiming responsibility for typographical errors or unintentional omissions
European Economic Area
Iceland, Liechtenstein and Norway entered into the Agreement on the European Economic Area (EEA) in 1992, which entered into force in 1994. The current contracting parties are, in addition to the three EFTA states, the European Community and the 27 EC Member States.
European Free Trade Association (EFTA)
Iceland, Liechtenstein, Norway and Switzerland are members of EFTA. The EFTA Convention established a free trade area among its Member States in 1960. In addition, the EFTA States have jointly concluded free trade agreements with a number of countries worldwide.
Ex-ship or free overboard
Sold free of ship but not including lightering
Ex-store or ex-warehouse
Sold from warehouse door, but not including cartage
EXW [Incoterms 2000]
See:Ex-works (EXW) Incoterm 2000_
Ex-works (EXW) [Incoterms 2000]
Goods are made available for pickup at the shipper/seller's factory or warehouse, a named place, and 'delivery' occurs when the goods are released to the consignee's freight forwarder. The buyer arranges with their forwarder for insurance, export clearance and all other documentation.
F
Foreign bill
A bill of exchange drawn on an acceptor overseas
FAS [Incoterms 2000]
See: Free alongside ship (FAS) Incoterms 2000_
FCA [Incoterms 2000]
See: Free carrier (FCA) Incoterms 2000_
FDA
See: Food and Drug Administration (FDA)
FOB [Incoterms 2000]
See: Free on board (FOB) Incoterms 2000_
Food and Drug Administration (FDA)
The US regulatory body responsible for certifying the quality of food and drugs; part of the US Department of Health and Human Services
Free alongside ship (FAS) [Incoterms 2000]
The buyer bears all transportation costs and the risk of loss of goods. The shipper/seller clears goods for export. The seller delivers alongside ship at a named port of shipment. Companies usually use their freight forwarder to clear the goods for export. This term can be used only for sea and inland waterway transport.
Free carrier (FCA) [Incoterms 2000]
The seller is responsible for delivering the goods to the carrier (nominated by the buyer) at a named place. 'Delivery' occurs at a predetermined port or destination point and the buyer is responsible for insurance. This term can be used irrespective of mode of transport.
Free on board (FOB) [Incoterms 2000]
The shipper/seller uses his freight forwarder to move the goods to the port or designated point of origin. Though frequently used to describe inland movement of cargo, FOB specifically refers to ocean or inland waterway transportation of goods. 'Delivery' occurs when the shipper/seller releases the goods to the buyer's forwarder. The buyer's responsibility for insurance and transportation begins at the same moment. This Incoterm is limited to sea or inland waterway transport only.
Free Trade Agreements
An agreement between nations to trade without protective customs or tariffs
Freight (Frt.)
Payment for carriage of goods or passengers or for use of a ship
Freight account
The debit note received from the shipowner for freight due on goods shipped
Freight forward
Paid by the consignee
Freight note
Shipowner's or broker's statement of amount of freight due
Freight release
Shipowner's authorisation to captain to deliver goods, freight having been paid on them
Frt.
See:Freight (Frt.)
G
GATT
See: General Agreement on Tariffs and Trade (GATT)
General Agreement on Tariffs and Trade (GATT)
The agreement was created as part of a larger plan for economic recovery after World War II. The purpose was to reduce barrier to international trade through reducing tariff barriers, quantitative restrictions and subsidies on trade through a series of agreements. It was an agreement, not an organisation, though it was originally meant to become one. The agreement was not ratified, so it remained simply an agreement. The functions of the GATT have been replaced by the World Trade Organization in a final round of GATT negotiations in the early 1990s.
Generalised System of Preferences (GSP)
Refers to arrangements where industrialised countries grant trade preferences to developing countries. The European Union allows duty-free or tariff reduced imports from specific countries.
Gross weight
Total weight of goods and packing
GSP
See: Generalised System of Preferences (GSP)
H
Harmonised system (HS)
A multipurpose international goods classification system designed to be used by manufacturers, transporters, exporters, importers, customs, statisticians, and others in classifying under a single commodity code goods moving in international trade.
HS
See: Harmonised system (HS)
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