1
A tax imposed on imports by the customs authority of a country based on the value of the goods
Ad Valorem
An arrangement with a steamship company for the acceptance and carriage of freight.
Booking
The difference between a country’s total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit exists.
Balance of Trade
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds.
Carnet
The process of buying foreign exchange, stocks, bonds, and other commodities in one market and immediately selling them in another market at higher prices.
Arbitrage
Replaces the former term “FOB named inland port” to designate the seller’s responsibility for the cost of loading goods at the named shipping point. It may be used for multimodal transport, container stations, and any mode of transport, including air.
FCA (Free Carrier)
A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse facilities. Also see Warehouse receipt.
Dock Receipt
Selling merchandise in another country at a price below the costs incurred in production and shipment
Dumping
A grant made by the U.S. Government that confers upon the creator of a product the sole right to make, use, and sell that product for a set period of time.
Patent
A private firm that serves as the export department for several producers of goods or services, either by taking title or by soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission.
(EMC) Export Management Company
A bill of lading that covers both domestic and international flights that transport goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and is obligated to carry the consignment to the airport of destination according to specified conditions
Air Waybill
A type of letter of credit providing for payment some time after presentation of shipping documents by exporter.
Deferred Payment Credit
The full weight of a shipment, including goods and packaging. Compare Tare weight.
Gross Weight
A set of standards, directories and guidelines for the electronic interchange of structured data related to trade in goods or services, between independent computerized information systems.
(EDIFACT) Electronic Data Interchange for Administration, Commerce, and Transport
A pricing term indicating that the cost of the goods and freight charges are included in the quoted price; the buyer arranges for and pays insurance.
CFR (Cost & Freight)
A permit sometimes required by the importer’s government to enable the import firm to convert its own country’s currency into foreign currency with which to pay a seller in another country.
Exchange Permit
It was formed on January 1, 1994 to create free trade among the United States, Canada, and Mexico.
NAFTA (North American Free Trade Agreement
A multilateral treaty signed in 1947 to help reduce trade barriers between signatory countries and to promote trade through tariff concessions. The workings of the GATT agreement are the responsibility of the Council for Trade in Goods, which is made up of representatives from all WTO member countries. GATT membership now includes more than 110 countries.
(GATT) General Agreement on Tariffs and Trade
They are used to determine the country of origin of a product for purposes of international trade. These rules are important in implementing trade policy instruments such as anti-dumping and countervailing duties, origin marking, and safeguard measures.
Rules of Origin
A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.
Packing List
This code aims to provide a standardized, consistent framework for evaluating risk, enabling governments to offset changes in threat with changes in vulnerability for ships and port facilities. It contains detailed, mandatory security-related requirements for governments, port authorities, and shipping companies.
International Ship and Port Facility Security
An international convention, implemented by the United States in 1989 for classifying imports and exports so that data from different countries are comparable. The United States adopted the Harmonized System as the basis of both its export classification system (Schedule B) and its import classification system (HTS). The first six digits of the commodity numbers in chapters # 1 through # 97 of both the HTS and Schedule B are identical with respect to descriptions and codes.
(HS) Harmonized System
A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.
FAS (Free Alongside Ship)
The importer is legally liable for payment of duties, taxes, and fees for compliance with customs and other government agency regulations pertaining to their imports. The importer of record may be the party who is buying or receiving the imported goods, or an interested party in the transaction who has the right to take entry under the customs regulations.
Importer of Record
Same as (HS) Harmonized System. It classifies imports and exports so that data from different countries are comparable.
(HTS) Harmonized Tariff Schedule