Glossary

AES

The Automated Export System (AES) allows electronic filing of the Electronic Export Information (EEI) and ocean manifest information directly to U.S. Customs.

Commercial Invoice

The commercial invoice is a bill for goods, created by the seller, 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. They must contain the name and address of the buyer and seller along with a detailed description of goods purchased.

Consignee

The person or company named in a freight contract to whom goods have been shipped to for delivery or care. The receiver of a shipment.

Door to Airport

Shipping service from shipper’s door to the destination airport for pick up by consignee.

Door to Port

Shipping service from shipper’s door to port of destination. The originating carrier may spot (place) a container outside of shipper's facility for loading by and at the expense of the shipper. The container will be transported by the shipper to the nearest agreed upon destination port or port of discharge. Not to be confused with destination, this may be a point inland.

Export

An export is a product, good, or commodity, transported from one country to another country in a legitimate manner. Export of goods requires involvement of Customs and other Government authorities in both the country of export and import. Important note to exporters: ISPM 15 requirements apply to all coniferous (softwood) and non-coniferous (hardwood) packing materials including dunnage. U.S. Inspection Agencies control the issuance of the ALSC Quality Mark and the presence of the Quality Mark ensures WPM produced in the U.S. and destined for export meets the importing countries regulations. Craters & Freighters are accredited agents for the ISPM 15 program.

Export Packing List

An export packing list is more detailed than a domestic packing list. The list contains itemized information in each individual package and indicates the type of package such as a corrugated box, wood crate, or drum. The list also shows the individual net, legal tare and gross weights and measurements for each package. Package markings should be noted with shippers and buyers references. U.S. and foreign customs officials may refer to the list to check the accuracy of the cargo.

Harmonized System Code

Harmonized System (HS) numbers are used to classify products for customs purposes. By international agreement, most countries recognize the same first 6 "harmonized" digits. HS numbers are used to classify exported products in the United States and import products into the country of destination.

IATA

The International Air Transport Association is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services for the benefit of the world's consumers.

Incoterms

Rules for Any Mode of Transport (Omni-Modal)

CIP - Carriage and Insurance Paid To (named place of destination)

The seller delivers the goods to the carrier (nominated by him) but the seller must also pay the cost necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. Coverage obligation is only minimum therefore additional coverage must be paid by the buyer or agreed upon with the seller. CIP requires the seller to clear the goods for export.

CPT - Carriage Paid To (named place of destination)

The seller delivers the goods to the carrier (nominated by him) but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. CPT requires the seller to deliver the goods for export.

DAP - Delivered At Place

The seller’s obligation ends when he has delivered the goods to the disposal of the buyer at the named destination place, cleared for export, but not cleared for import. The seller and buyer should agree which party will be responsible for unloading. The buyer is responsible for the import clearance of the goods.

DAT - Delivered At Terminal

The seller’s obligation ends when he has delivered the goods to the disposal of the buyer, unloaded from the arriving carrier at the named destination terminal, cleared for export, but not cleared for import.

The buyer is responsible for the import clearance of the goods. If the seller is also to be responsible for delivering the goods past the terminal to another place, then DAP or DDP terms should be used.

DDP - Delivered Duty Paid (named place of destination)

The seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transportation at the named place of destination. The seller bears all costs and risks of brining the goods thereto, including duty, for import in the country of destination. DDP represents the maximum obligation to the seller. This term should not be used if the seller is unable directly or indirectly to obtain the import license.

EXW - Ex Works

EXW benefits for the seller. In comparison with other Incoterms rules EXW represents the minimum obligation for the seller. However, when opting for this rule the seller has to take into consideration that under EXW the buyer is not obliged to provide any information regarding the export of the goods (if applicable) to the seller. The seller might require such information for tax or other purposes for instance thus consideration of this fact is crucial. In many cases, the parties are well advised to choose FCA instead.

FCA - Free Carrier (named place)

The seller delivers the goods, cleared for export, to the carrier (nominated by the buyer) at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of the loading and unloading of the goods at that place. If delivery occurs at the sellers premises, the seller is responsible for unloading. If delivery occurs at any other place, the seller is not responsible for unloading.

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Rules for Sea and Inland Waterway Transport Only (Marine Only)

CFR - Cost and Freight (named port of destination)

The seller is responsible for the goods up to the point they are loaded on the vessel. Contract terms need to specify the agreed upon point that responsibility is transferred. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. CFR requires the seller to clear the goods for export.

CIF - Cost, Insurance and Freight (named port of destination)

The seller delivers the goods when the freight is unloaded. As with CFR, the contract terms must specify the agreed upon point that responsibility is transferred. The seller must pay the costs necessary to bring the goods to the named port of destination BUT the risk of loss or damage to the goods, as well as any additional costs due to events occurring after delivery, are transferred from the seller to the buyer. The seller has to procure marine insurance against the buyer’s risk of loss or damage to the goods during carriage. The seller contracts for insurance and pays the premium. However, the coverage obligation is only minimum therefore additional coverage must be paid by the buyer or agreed upon with the seller. CIF requires the seller to clear the goods for export.

FAS - Free Alongside Ship (named port of shipment)

The seller delivers when the goods are placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss or damage to the goods from that moment. FAS requires the seller to clear the goods for export.

FOB - Free On Board

The seller delivers the goods on board the buyer designated vessel at the port on the seller’s side, cleared for export. The buyer pays the main carriage/delivery costs. Risk transfers once the goods are placed on board the ship at the loading port.

Inventory List

A document prepared by the shipper listing the kinds, quantities and values of the merchandise in a particular shipment. Craters & Freighters requires an itemized inventory prepared by the shipper for all shipments domestic and international. The inventory or packing list is instrumental for establishing not only the type, and quantity but also for establishing value per item in case of lost or damages during handling and transportation.

Ocean Freight

A freight service for transporting your products over the sea or ocean by vessel commonly referred to as a steamship. The three means of shipping products by ocean vessel are; bulk, break-bulk, and containerized. The means you select depends on the type of cargo you are shipping, the size of the shipment and the handling. Ocean transportation takes longer than shipments by air, but the cost of transportation can be lower.

Packing List

A document that more thoroughly identifies the goods to be delivered than a bill of lading or a commercial invoice. The packing list will include an itemized inventory, quantity, and value of each piece.

POA

Written authorization from a Principal Party in Interest to file a Shippers Export Declaration (SED) or the electronic equivalent via the Automated Export System (AES record), to act as agent for export control purposes on their behalf, sign documents and arrange for transportation.

Schedule B

A Schedule B number is a classification code for exporting goods out of the United States. The Schedule B is used to track the amount of trade goods that are being exported from the U.S. The U.S. Census Bureau keeps records of the amount of exports by country/quantity, and dollar amount.

SED

The Shippers Export Declaration (SED) is a form required by the export authorities to document an export of goods. This form is required for all U.S. Export shipments with a declared value greater than $2,500.00. Also required for shipments requiring a U.S. Department of Commerce validated export license or U.S. Department of State License regardless of value.

SLI

The Shippers Letter of Instruction (SLI) is a form completed by the shipper to authorize a carrier to issue a bill of lading or an air waybill on the shipper’s behalf. The form contains all details of the shipment.

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