Terms

Definition

ATA Actual Time of Arrival, or Airport to Airport, or Air Transport Association of America.
ATD Actual Time of Departure.
Advanced Charge Agent a person authorized to transact business for and in the name of another
Aggregate Shipments numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.
Agreed Weight the weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in a certain number.
Air WayBill An AWB is a bill of lading that covers both domestic and international flights transporting goods to a specified destination. Technically,it 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 therein and obligates itself to carry the consignment to the airport of destination according to specified conditions. Normally AWB refers to the Air Waybill issued by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric airline identification codes issued by IATA to non U.S. based airlines and Air Transport Association of America to U.S. based airlines.
Aircraft Container A unit load device (ULD), which links directly with the airplane cargo handling and restraint system.
Allotment A term used to describe blocked space by airlines on behalf of forwarders/shippers.
Allowance a sum granted as reimbursement or repayment, or a deduction form the gross weight or value of goods.
Alternative Rates two or more rates, of which the one that produces the lowest charge is applicable.
Arrival Notice a notice, furnished to the consignee, of the arrival of freight.
Assign to transfer to another party.
Automated Broker Interface (ABI) 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.
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.
Automated Export Reporting Program The AERP provides for electronic submission of most information required on the Shipper’s Export Declaration. The program was initiated in 1969 with the intent of enabling large volume exporters to submit electronically and facilitate Census Bureau data entry and analysis. AERP was expanded in 1982 to allow freight forwarders, and again in 1985 to allow ocean carriers, to file electronically. At the beginning of fiscal year 1994, about 220 firms accounting for 350,000 to 400,000 records a month were participating in AERP. The program is administered by the Automated Data Reporting Branch, Foreign Trade Division, Bureau of the Census.
Bill of Lading a commercial shipping document which serves three distinct purposes in connection with the carriage of goods. An itemized list of goods contained in a shipment. It is a receipt from Contractor for the goods, represents the contract for carriage and serves as a document of title.
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.
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.
Break Bulk (B/B) for consolidated airfreight, it is moved under one MAWB and each consignment designated to specific consignee or recipient is under one HAWB. When freight forwarder receives the consolidated cargo from carrier, they will break the consolidation apart per HAWB then proceed customs clearance along with associated shipping and import documents. Such Break Bulk is normally handled by airlines or their contracted ground handling agent.
Bulk Freight freight not in packages or containers.
COD cash or check paid for goods at delivery, which may include the cost of shipping.
CWT per hundred weight.
Caged before import customs formality has been completed cleared and released, cargo is remained at bonded warehouse under customs custody.
Capacity Load that quantity of freight which, in the manner loaded, fills a vehicle to the extent that no additional article in the shipping form tendered identical in size to the largest article in the shipment can be loaded.
Cargo the lading of a motor vehicle.
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.
Carnet A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.
Carrier an individual, partnership or corporation engaged in the business of transporting goods or persons, for a fee.
Cartage freight hauling between locations in the same city, town, suburb, or local area.
Certificate of Weight an authoritative statement of the weight of a shipment.
Claim a written demand made upon Contractor for payment because of loss or damage alleged to have occurred while shipment was in Contractor’s possession. Demand of a refund due to overcharge.
Classification (rating) the class to which an article is assigned for the purpose of applying transportation charges.
Clean Bill of Lading a bill of lading received by Contractor for merchandise in good condition which does not bear such notation as “Shipper Load and Count,” etc.
Clear Record a record which shows that a shipment was handled without any loss or damage being sustained.
Collector of Customs a representative of the U.S. Treasury Department acting for the government in connection with foreign traffic.
Combi Aircraft An aircraft configured to carry both passengers and cargo on the Main Deck.
Combination Rate a rate made by combining two or more rates in different publications.
Combination Through Rate a through rate made by combining two or more rates in different publications.
Commercial Zone a geographical area of commercial influence of a specified point.
Commodity any article of freight. Goods shipped.
Commodity Rate a rate applicable to an article described or named in the publication containing the rate.
Common Carriers those required to serve the general public on demand, at reasonable rates without discrimination.
Concealed Loss or Damage loss or damage to the contents of a package which is not apparent until opened.
Connecting Carrier a carrier which has a direct physical connection with another or forms a connecting link between two or more carriers.
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.In short, the person or organization to whom freight is shipped.
Consignee Marks a symbol placed on packaged for export, generally consisting of a square, triangle, diamond, circle, cross, etc., with designation letter and/or numbers for the purpose of identification.
Consignment Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agents 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.
Consolidation In order to handle small lot of consignment efficiently and competitively, freight forwarder usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one HAWB respectively and all of them will be under one master AWB.
Containerization carrying containers which can be easily be interchanged between trucks, trains and ships without rehandling of contents.
Contract Carriers a company which engages in for hire transportation of property under an individual contract or agreement with one of a limited number of shippers.
Cubic Capacity the carrying capacity of a truck according to measurement in cubic feet.
Cubic Foot 1,728 cubic inches.
Cubic Ton 40 cubic feet. Customs The government authorities designated to collect duties levied by a country on imports and exports.
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.
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.
Customs Free Zone See Free Trade Zone.
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.
Customs Invoice A document, required by some foreign customs officials, to verify the value, quantity and nature of the shipment. The invoice should describe the shipment of goods and show information such as the consignor, consignee and value of the shipment.
DDP Deliver Duty Paid.
DDU Deliver Duty Unpaid.
DOT (Department of Transportation) federal agency that regulates the highway transportation of freight including commodities designated as hazardous materials..
Dangerous Goods Commodities classified by IATA according to its nature and characteristic in terms of the effect of its danger to carrier’s flying safety.
Delivering Carrier the transportation line by which a shipment is delivered to the consignee.
Delivery the act of transferring possession, such as the transfer of property from shipper to carrier, one carrier to another or carrier to consignee.
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.
Department of Transportation (DOT) federal agency that regulates the highway transportation of freight including commodities designated as hazardous material.
Deposit of Estimated Duties This refers to antidumping duties that must be deposited upon entry of merchandise that 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.
Destination the place to which a shipment is consigned.
Detention a charge made for a vehicle held by or for shipper or consignee for loading or unloading, for forwarding directions or for any other purpose.
Dimentional Weight Also called measurement weight. This is the size of consignment calculated by total square feet by 6000. Carrier charge for freight based on the dimensional weight or actual gross weight whichever is higher.
Direct via the route of a single carrier.
Direct Ship Ship without consolidation and under one MAWB ie non consolidation.
Dispatching the scheduling and control of trucks for pickup and delivery or travel between major terminals.
Distance Rate rate that is applicable according to distance.
Distribution generally considered to be the act of delivering less than truckload shipments within a city or an area beyond.
Diversion Any shipment relinquished to the shipper, consignee or his agent at point of origin or intermediate point or before the shipment has reached its ultimate destination.
Domestic Exports Exports of domestic merchandise include commodities which are grown, produced, or manufactured in one country, and commodities of foreign origin which have been substantially changed in this country, including Foreign Trade Zones, from the form in which they were imported, or which have been enhanced in value by further manufacture in this country.
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.
Draying the charge made for handling freight on carts, drays or trucks.
Dunnage the material used to protect or support freight in or on trucks.
Duty a tax levied by a government on the import, export, use or consumption of goods.
E.P.A. U.S. Environmental Protection Agency, a federal agency which regulates hazardous substances in the environment.
ETA Estimated Time of Arrival. Then, It normally takes 4 hours for carriers to Break Bulk then ready to be picked up by forwarders along with customs release notification.
ETD Estimated Time of Departure. The cut off time for carriers’ cargo ramp handling is normally two hours ahead of ETD. However, the freight forwraders’ consolidation cut off time may vary depending on each forwarder’s operations respectively.
En route on the way.
End of line (EOL) a terminal which receives inbound freight from the breakbulk for delivery and sends outbound freight to the breakbulk that has been picked up.
Entrepot An intermediary storage facility where goods are kept temporarily for distribution within a country or for reexport.
Entry (Customs) a statement of the kinds, quantities and values of goods imported together with duties due, if any, and declared before a customs office or other designated officer.
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.
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.
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.)
Estimated Weight the weight specifically stated in publications for goods shipped in a manner.
Exchange Bill of Lading a bill of lading issued in exchange for another bill of lading.
Exclusive Use of Trailer a request made by a shipper, on the bill of lading, for the complete use of a trailer.
Expediting to accelerate transportation. Expedited freight service is usually faster than normal service.
Expiration Notice a notice in a publication that all, or some part of it, will expire at a stated time.
Export any traffic having a subsequent movement to a foreign country.
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.
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.
Exporter’s Certificate of Origin The U.S. Customs Service defines an Exporter’s Certificate of Origin (also known as Customs Form 353) as a document completed by the exporter, certifying that the goods described therein are eligible for a preferential rate of duty under some trade program such as the U.S. Canada Free Trade Agreement.
Extended Service a service offered by Contractor in addition to the transportation of goods, such as stopping in transit to complete loading or to partially unload or storage.
External Dimensions The extreme outside measurements, including any handles or other protrusions, of a ULD.
External Volume, ULD The amount of space a ULD occupies in an aircraft calculated using the extreme external dimensions of the unit.
False Billing describing freight on shipping documents so as to misrepresent the actual contents of lading.
Fifth Wheel part of a coupling device mounted on tractor which engages and locks with circular steel pin on a trailer.
Fixed Charges charges which do not vary with an increase or decrease in traffic.
Foreign Exports Exports of foreign merchandise (reexports) 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.
Freight Astray a shipment miscarried or unloaded at the wrong terminal, billed and forwarded to the correct terminal, free of charges, on account of being astray, hence the term “freight astray”
Freight All Kinds (FAK) the abbreviation applied to a pooling of different commodities for simplification of rating or pricing.
Freight Bill Document for common carrier shipment. Gives description of the freight, amount of charges, taxes and whether prepaid or collect. Charges paid by the shipper are called prepaid freight bills. Charges collected at designation are called destination or collect freight bills.
Freight Carriage and Insurance paid to This term is the same as “Freight/Carriage Paid to…” but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.
Freight Claim a demand upon Contractor for the payment of overcharge or loss or damage sustained by the shipper or consignee.
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
Freight Line Charge the cost of transporting freight.
G.B.L. Government Bill of Lading.
Gateway a point which freight moving form one territory to another is interchanged between transportation lines.
Gross Ton 2,240 pounds, commonly called a long ton.
Gross Weight the weight of an article, together with the weight of its container and the material used in packing. As applied to a truck, the weight of the truck, together with the weight of its entire contents.
HAWB House Air waybill issued by carrying airlines’ agent, normally freight forwarder.
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.
Hazard Class numerical designation of the primary transportation hazard based upon the chemical and physical properties of the hazardous chemical. For example, the hazard class assigned to acetone is 3, which corresponds to a flammable liquid. See list of hazard classes that Contractor transports.
Hazardous Material (HM) a substance or material which has been determined by the Department of Transportation to be capable of posing an unreasonable risk to health, safety and property when transported in commerce. A complete listing of hazardous material can be found in 49 CFR 172.101.
Hot Tag a shipment requiring special handling to achieve earlier than normal delivery service.
Hundred Weight a statement of weight meaning 100 pounds, abbreviated CWT.
IATA International Air Transport Association (IATA), established in 1945, is a trade association serving airlines, passengers, shippers, travel agents, and governments. The association promotes safety, standardization in forms (baggage checks, tickets, weigh bills), and aids in establishing international airfares. IATA headquarter is in Geneva, Switzerland.
IATA Designator Two character Airline identification assigned by IATA in accordance with provisions of Resolution 762. It is for use in reservations, timetables, tickets, tariffs as well as air waybill.
ICAO International Civil Aviation Organization (ICAO) is a United Nations specialized agency that promotes international cooperation in civil aviation. The ICAO Council adopts standards and recommended practices concerning air navigation, prevention of unlawful interference, and facilitation of border crossing procedures for international civil aviation. Operating since 1947, ICAO includes almost all U.N. members. Headquarters are in Montreal, Canada.
Import any traffic having a prior movement from a foreign country.
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.
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.
Import Quota A means of restricting imports by the issuance of licenses to importers, assigning each a quota, after determination of the total amount of any commodity, which is to be imported during a period. Import licenses may also specify the country from which the importer must purchase the goods.
Import Quota Auctioning The process of auctioning the right to import specified quantities of quota restricted goods.
Import Restrictions Import restriction, applied by a country with an adverse trade balance (or for other reasons), reflect a desire to control the volume of goods coming into the country from other countries may include the imposition of tariffs or import quotas, restrictions on the amount of foreign currency available to cover imports, a requirement for import deposits, the imposition of import surcharges, or the prohibition of various categories of imports.
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.
Imports for Consumption “Imports for Consumption” measure the total of merchandise that has physically cleared through U.S. Customs either entering consumption channels immediately or entering after withdrawal for consumption from bonded warehouses under Customs custody or from Foreign Trade Zones. Many countries use the term “special imports” to designate statistics compiled on this basis.
In Bond shipments moving under U.S. Customs Bond.
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.
Initial Carrier the transportation line to which a shipment is delivered by the shipper.
Interchange transfer of freight from one carrier to another.
Interline between two or more carriers.
Interline Freight freight moving form point of origin to destination over the lines of two or more transportation providers.
Intermediate Carrier a transportation line over which a shipment moves but on which neither the point of origin or destination is located.
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.
Intermodal Movement of goods by more than one mode of transport, ie. airplane, truck, railroad and ship.
Interstate traffic having origin in one state and destination in another state.
Interstate Commerce Act an act of Congress regulating the practices, rates and rules of transportation lines engaged in handling interstate traffic.
Intrastate traffic having origin, destination, and entire transportation within the same state.
Joint Rate a rate from a point located in one point located in one transportation line or a point located on another transportation line. A joint rate is made by agreement or arrangement between the carriers and published in a single publication under the concurrence of all transportation lines involved.
Joint Routes routes established by two or more carriers for the continuous through movement of traffic via their respective lines.
Joint Traffic traffic moving between stations located on one transportation line and stations located on another transportation line.
Known Loss a loss discovered before or at the time of delivery of a shipment.
LTL (Less than Truckload) a quantity of freight less than that required for the application of truckload rate.
LWR Most commonly used type of pallet at lower deck of passenger aircraft and full cargo freighter.
Label, Hazard a diamond shaped designation that has a unique pictorial symbol that describes each of nine hazard classes.
Lading that which constitutes a load. The freight in a vehicle.
Lien a legal claim upon goods for the satisfaction of some debt or duty.
Line haul the movement of freight between cities, excluding pickup and delivery service.
Line haul truck vehicles used to haul freight long distances, usually a tractor trailer combination of three or more axles.
Loading Furnishing to Contractor the Bill of Lading, forwarding directions, or other documents necessary for forwarding the shipment. Notification to Contractor that the vehicle is loaded and ready for forwarding.
Local Delivery Those points served direct and are within 25 miles of the original destination point.
Local Reconsignment is reconsignment within the local (direct) delivering area of the original destination terminal. Local deliveries are those points served direct and are within twenty five (25) miles of the original destination point.
Local Terminal a local facility of a transportation line.
Loose not packed.
Lower Deck The compartment below the Main Deck (also synonymous with lower hold and lower lobe).
Main Deck The deck on which the major portion of payload is carried, normally known as Upper Deck of an airplane. The full cargo freighter aircraft has it entire upper deck equipped for main deck type of containers/pallets while Combi aircraft uses it rear part of the upper deck for cargo loading. There is no upper deck or main deck type of container/pallet at passenger aircraft.
Marks letters, numbers or characters placed on a package for the purpose of identification.
Material Safety Data Sheet (MSDS) an informational bulletin prepared by a manufacturer that identifies the chemical or trade name of the hazardous ingredients, the potential hazards associated with these chemicals, emergency first aid procedures associated with the overexposure to the chemicals, precautions for safe handling of the chemicals and procedures for cleanup and proper disposal of any material that has been spilled. An MSDS contains this information: Control measures Identity, Emergency telephone numbers Physical and chemical, Fire and explosion hazard data characteristics, Hazardous ingredients Precautions, Reactivity (if mixed) Health hazard data
Maximum Rate the highest rate that may be charges.
Memorandum Bill of Lading the third part of a multiple set bill of lading.
Mile 5,280 feet.
Mileage Rate rates applied according to distance.
Minimum Charge the least charge for which a shipment will be handled.
Minimum Rate the lowest rate that may be charged.
Mode means of transportation by one of the following methods: air, water, highway, and rail.
Motor Vehicle any vehicle, machine, tractor, trailer or semi trailer propelled or drawn by mechanical power and used upon the highways in transportation of passengers or property
NVD No Value Declared.
National Motor Freight Classification (NMFC) a publication for motor carriers containing rules, descriptions and ratings on all commodities moving in commerce.
Nested packed one within another.
Net Ton 2,000 pounds.
Net Weight the weight of an article clear of its packing and contents of the truck.
Notice information given signifying the accomplishment of an act, such as the placement of a trailer for loading or unloading.
O S & D (Over, Short and Damaged) a term used to describe a shipment that has been damaged or lost in transit or that arrives with more containers than originally shipped.
OBC On Board Courier.
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.
Operating Expense the cost incident to the actual handling of traffic.
Operating Ratio the relation of operating expenses to gross receipts.
Overage excess freight over the quantity believed to have been shipped, or mare than the quantity shown on the shipping document.
P & D pickup and delivery of freight.
POA Power Of Attorney, an authorization granted by consignee or importer to its customs broker for the processing of customs clearance on its behalf.
POD Proof Of Delivery, or a cargo/package receipt with the signature of recipient. This term has been widely used in courier and express industry and also gaining more attention and implementation at air cargo industry.
PRO a number issued to each shipment of freight by the carrier and used for computer tracking of the shipment to its destination.
Packing List a detailed inventory of items contained in a shipment.
Pallet a small wooden, paper or metal platform usually with top and bottom, on which packaged goods are placed to facilitate movement by some type of freight handling equipment.
Permits authority or permit granted by the Interstate Commerce Commission to contract carriers by motor vehicle to operate in interstate commerce.
Pickup service of a carrier in calling for and collecting freight to be transported over its line.
Pickup or Delivery Allowance a discount offered by Contractor to the consignee for pickup or shipper for delivery of freight to its terminal.
Point of Origin the terminal that picks up freight from a shipper.
Point of entry a port at which foreign goods are admitted into the receiving country. Ports of entry are officially designated by the government.
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.
Premises The entire property or facilities of the consignor, consignee, or other designated party.
Prepaid a term denoting that transportation charges have been paid or are to be paid at the point of shipment.
Prior to Tender of Delivery before shipment has been loaded on delivery vehicle (in cases where shipment is transferred to city delivery vehicle for delivery) or before shipment has been dispatched for delivery (in cases where shipment is not transferred to city vehicle for delivery).
Private Carrier a transportation line not engaged in business as a general public employment.
Private Residence apartments, churches, schools, camps and other such locations not generally recognized as commercial locations and shall apply to the entire premises, except any portion of the premises where commercial or business activity is conducted that involves the sales of services, products or merchandise to the walk in public during normal business hours.
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 applies 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.
Prohibited Articles articles that will not be handled.
Project License The Bureau of Export Administration uses the project license to authorize large scale exports of a wide variety of commodities and technical data for specified activities. Those activities are restricted to capital expansion, maintenance, repair or operating supplies, or the supply of materials to be used in the production of other commodities for sale. Items intended for resale in the form received are not permitted and must be affected under a Distribution License.
Proof of Delivery (also called P.O.D.) the delivery receipt copy of freight bill by receiver at time of delivery.
Proper Shipping Name the name of a hazardous material designated by the DOT for highway transportation in 49 CFR 172.101. For example, the proper shipping name for the refrigerant R12 is “dichlorodifluoromethane.”
Proportional Rate a rate specifically published to be used only as a factor in making a combination through rate.
Quotas and Quota System Absolute quotas permit a limited number of units of specified merchandise to be entered or withdrawn for consumption during specified periods. Tariff rate quotas permit a specified quantity of merchandise to be entered or withdrawn at a reduced rate during a specified period. Quotas are established by Presidential Proclamations, Executive Orders, or other legislation. The Quota System, a part of Customs’ Automated Commercial System, controls quota levels (quantities authorized) and quantities entered against those levels. Visas control exports from the country of origin. Visa authorizations are received from other countries and quantities entered against those visas are transmitted back to them. Control of visas and quotas simplify reconciliation of other countries’ exports and U.S. imports.
Rate the charge for transporting freight.
Rate Base Number number used to determine rates applicable between two points.
Rate Basis Point point on which rates are made or at which the rate is divided; or point to which other points are assigned for purposes of determining rates.
Rate Scale a table of rates graduated according to distances or zones.
Reconsignment a change in the route made in a consignment before the arrival of the goods at their billed destination; or any change made in a consignment after the arrival of goods at their billed destination, when the change is made under conditions which make it subject to the reconsignment rules and charges of Contractor.
Released Value value of goods set by shipper in consideration of rate to be charged.
Reportable Quantity (RQ) a hazardous substance defined by the DOT with specific quantity limits per package that require notification of the National Response Center and if the specified quantity is released as the result of a spill.
Reshipment goods reshipped under conditions that do not made the act subject to the reconsignment rules and charges of the carrier.
Restricted Articles articles that are handled only under certain conditions.
Return to Shipper any shipment returned to the same location at which it was originally tendered to the carrier.
Route the course or direction that a shipment moves.
SED The Shipper’s Export Declaration (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.
Schedule B Schedule B is a U.S. Bureau of the Census publication and is based on the Harmonized Commodity Description and Coding System (Harmonized System). Export statistics are initially collected and compiled in terms of approximately 8,000 commodity classifications in Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. All commodities exported from the U.S. must be assigned a seven digit Schedule B number.
Script Sheet form of statement, carried by the driver, showing essential details of all shipments loaded in his truck.
Semi trailer a vehicle without motive power designed to be drawn by another vehicle and so constructed that some part of its weight and that of its load rests upon, or is carried by, a towing vehicle.
Shipment one or more pieces of freight with the same shipper or consignee.
Shipper company or individual who initiates the transport of goods.
Shipper Load and Count the process by which the shipper places goods into Contractor’s trailer at his own site. With shipper Load and Count there is no opportunity for joint check of the goods by shipper and Contractor. The shipper is responsible for the proper loading and verification of the goods being shipped.
Shipping Mark The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.
Shipping Order Contractor’s copy of the bill of lading.
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).
Shortage a deficiency in quantity shipped.
Site A specific location at or on the premises of the consignor, consignee, or other designated party.
Split Pickup or Delivery picking up or delivering volume shipments at more than one place within confines of origin or destination points.
Spotting The placing, detaching and leaving in possession of a trailer unaccompanied by a tractor or power unit at a specific site designated by the consignor, consignee, or other party designated.
Standard Rate a rate established via direct routes from one point or another in relation to which the rates via other routes between same points are made.
Standard Route line or lines that maintain standard rates.
Statute of Limitation a statement within the bill of lading contract which places a limit on the time in which claims or suit may be instituted.
Storage a charge made on property stored.
StorageTransit in Transit storage of property at a point other than the origin or destination of a shipment under application of a through rate.
Store Door Delivery the movement of goods to the consignee’s place of business.
Straight Bill of Lading a non negotiable document by which a transportation company acknowledges receipt of freight and contracts for its movement. The surrender of the original straight bill of lading is not required by transportation lines upon delivery of the freight, except when necessary for the purpose of identifying the consignee.
Straight truck has both the power unit and freight storage as one vehicle.
Surcharge a charge above the usual or customary charge.
Surtax an additional or extra tax.
TACT TACT stands for The Air Cargo Tariff. It is published by IAP International Airlines Publications, an IATA company. Click here for more information.
TOSCA Toxic Substance Control Act, An extra release that is needed for chemicals, hazardous material, etc. Not a charge by customs, but brokers may charge extra to get the release.
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.
Tare Weight the weight of a container and the material used for packing.
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.
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.
Tariff Anomaly A tariff anomaly exists when the tariff on raw materials or semimanufactured goods is higher than the tariff on the finished product.
Tariff Escalation A situation in which tariffs on manufactured goods are relatively high, tariffs on semiprocessed goods are moderate, and tariffs on raw materials are nonexistent or very low.
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.
Tariff Schedule A comprehensive list of the goods which a country may import and the import duties applicable to each product.
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.
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 Chapter 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.
Tender to offer goods for transportation, or to offer to place trucks for loading or unloading.
Terminal a building for the handling and temporary storage of freight pending transfer between locations.
Third Party a payer of the freight charges shown on the bill of lading that is neither the shipper or consignee.
Through Rate a rate applicable form a point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates.
Tolerance an allowance made for difference in weights due to variations in scales or inherent nature of goods.
Ton Mile a unit used in comparing freight earnings or expenses. The amount earned form or the cost of hauling a ton of freight one mile.
Tonnage the number of tons of freight handled.
Trace to follow the movement of a shipment.
Tractor A mechanically powered unit to propel or draw a trailer or trailers upon the highways.
Traffic persons and property carried by transportation lines.
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.
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.
Transport to move traffic form one place to another.
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.
Truckload (TL) quantity of freight required to fill a truck. When used in connection with freight rates, the quantity of freight necessary to qualify shipment for a truckload rate.
U. S. Mainland the 48 contiguous states.
ULD Unit Load Device, Any type of container, container with integral pallet, aircraft container or aircraft pallet.
UN Number a four digit number assigned to hazardous material required by the DOT for highway transportation, by IMDG for water transit, and by ICAO for air. It is used to help designate the emergency response procedure in the event of a spill or release.
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.
Unclaimed Freight freight that has not been called for by the consignee or owner.
Unit of Traffic the average number of tons of freight hauled one mile.
Unloading Surrender of the Bill of Lading to Contractor on shipments billed “To Order.” Payment of lawful charges to the carrier when required prior to delivery of the shipment. Notification to Contractor that vehicle is unloaded and ready for forwarding. Signing of delivery receipt.
Valuation, Actual actual value of goods required to be shown on the bill of lading by shippers, where rate applied is dependent upon that fact.
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.
Vehicle Any vehicle or combination of vehicles handled as one unit, of not less than 35 feet in length, propelled or drawn by a single power unit. When the vehicle consists of a power unit and two or more trailers or containers, the combined length of the trailers or containers must not exceed 60 feet.
Volume Rate commodity rates that are specifically made subject to a minimum weight of 10,000 pounds or more.
Warehouse a place for the receipt and storage of goods.
Warehouse Receipt a receipt given for goods placed in a warehouse.
Waybill description of goods sent with a common carrier freight shipment (Same as freight bill).
Weight Sheets itemized list furnished by shippers to weighing bureaus showing articles in each consignment.
Wet Goods liquids.
Without Reserve A term indicating that a shipper’s agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented
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