Freight Dictionary

What is AMS?

It is the advanced declaration of cargo vessel manifest information to US Customs, previously only required 48 hours before arrival first USA calling port.

Why 24 hour advance filing ?

US Customs hopes that with the advanced notification they will be able to reject shipment at origin before allowing them to physically call the USA and so to reduce the risk of future terrorist attacks on the USA thru commercial channels.

10+2 IMPORTER SECURITY FILING ISF PROGRAM ( ISF)

The ISF 10+2 Importer Security Filing Program is to help prevent terrorist weapons from being transported to the United States and to improve CBP's ability to identify high-risk shipments so as to prevent smuggling and ensure cargo safety and security. Importers and Vessel Operating Carriers bringing cargo to the United States will be required to transmit certain information to U.S. Customs and Border Protection (CBP) about the cargo they are transporting prior to lading that cargo at foreign ports of entry

Accessorial Fees

Charges for service beyond standard transportation pricing. Such fees would include special pickup or delivery on domestic shipments, and documentation and communication fees for international shipments.

Actual Gross Weight

The full weight of a shipment, including goods and packaging.

Air Waybill

A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is non-negotiable and serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligating it to carry the consignment to the airport of destination according to specified conditions.

Bill of Sale

This document is a confirmation of the transfer of ownership of certain goods to another person (i.e., in return for money paid or loaned).

Air Waybill

A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is non-negotiable and serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligating it to carry the consignment to the airport of destination according to specified conditions.

BOL (Bill of Lading)

A document which acknowledges receipt of the goods and establishes the terms of a contract between a shipper and transportation company. It signifies which freight is to be moved between specified points for a specified charge. As the most fundamental document in goods transportation, it serves as a document of title, a contract of carriage, and a receipt for goods. It is prepared by the shipper on forms issued by the carrier. It is a legal document.

Bonded Warehouses

This facility is authorized by Customs authorities for storage or processing of goods. No Customs duties are incurred until the goods are removed.

BOL (Bill of Lading)

A document which acknowledges receipt of the goods and establishes the terms of a contract between a shipper and transportation company. It signifies which freight is to be moved between specified points for a specified charge. As the most fundamental document in goods transportation, it serves as a document of title, a contract of carriage, and a receipt for goods. It is prepared by the shipper on forms issued by the carrier. It is a legal document.

C.A.F. (Currency Adjustment Factor)

Additional charge on ocean freight, expressed as a percentage of a base rate, which reflects adjustments to costs based on foreign currency exchange rates.

Carrier

Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes.

Certificate of Origin

A document certifying in which country the goods were produced. Used in international commerce.

GSP (Generalized System of Preferences)

The Generalized System of Preferences, or GSP, is a formal system of exemption from the more general rules of the World Trade Organization (WTO), (formerly, the General Agreement on Tariffs and Trade or GATT). Specifically, it's a system of exemption from the most favored nation principle (MFN) that obligates WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their "most favored" trading partner. In essence, MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them, etc.
GSP form A, which is often called the GSP Form A, is a certificate of origin. It is used under the GSP program for exportations to the donor countries from the beneficiary countries. Please see the sample Form A below.

Claim

A demand for payment made upon a transportation line due to loss sustained through its alleged negligence.

Classification

A publication, such as The Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.

Classification Rating

The designation provided in a classification by which a class rate is determined.

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 damage or other irregularities.

Commercial Invoice

Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents concerning the shipment.

Commodity

Article shipped. For dangerous and hazardous cargo, the correct commodity identification is crucial.

Consignee

The person or company (named in the bill of lading) to whom commodities are shipped. The owner of the cargo.

Consignment

Goods in transit under a bill of lading; the delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the exporter?s account.

Consignor

The person or company shown as the shipper on the bill of lading.

Container

A truck trailer body that can be detached from the chassis for loading into a vessel or a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, high cube, bulk liquid, or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length; 8'0" or 8'6" in width; and 8'6" or 9'6" in height.

Customs

The authorities designated to collect duties on imports and exports that are levied by a country (also applying to the procedures involved in such collection). They are responsible for ensuring that no illegal importation takes place.

Customs Invoice

A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller?s commercial invoice.

Dim Weight (Dimensional Weight or Volume Weight)

Freight charges calculated by the cubic dimension (total cubic inches). This measurement, along with the weight of the pieces shipped, is typically used by airfreight carriers to determine their freight charges.

Dock Receipt

A receipt issued to acknowledge receipt of a shipment at the carrier?s dock or warehouse facilities. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the vessel operator or agent and serves as a basis for preparation of Bill of Lading.

Force Majeure

The title of a standard clause in marine contract that relieves the parties for responsibility upon non-fulfillment of their obligations resulting from conditions beyond their control (such as earthquakes, floods, or war).

Dock Receipt

A receipt issued to acknowledge receipt of a shipment at the carrier?s dock or warehouse facilities. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the vessel operator or agent and serves as a basis for preparation of Bill of Lading.

Free Trade Zone

A country?s government designates this area, where any non-prohibited merchandise may enter duty-free. In this zone goods may be used in manufacturing, put on display, warehoused, etc., and re-exportation is also duty-free if the merchandise should pass from the zone into another area of the country.

Dock Receipt

A receipt issued to acknowledge receipt of a shipment at the carrier?s dock or warehouse facilities. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the vessel operator or agent and serves as a basis for preparation of Bill of Lading.

General Tariff

A tariff that applies to countries that do not enjoy either preferential or most-favored-nation tariff treatment. When the general tariff rate differs from the most-favored-nation rate, the general rate is usually the higher rate.

H.S. (Harmonized System of Codes)

An international goods classification system used to describe cargo under a single commodity coding scheme in international trade. It is the current U.S. tariff schedule (TSUSA) for imports and is the basis for the ten-digit Schedule B export code.

LCL (Less than Container Load)

The quantity of freight less than that required for the application of a container load rate. Loose Freight.

LTL (Less than truckload)

This term typically refers to shipments of 150 ? 10,000 pounds, not requiring the full use of a trailor.

Net Weight (Actual Net Weight)

Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the can?s weight.

N.M.F.C. (National Motor Freight Classification)

A listing of items used to determine the ?class? of a particular item shipped. The class of the item along with the weight and distance traveled, is a determinator of the freight charge.

O.B.L. (Ocean Bill of Lading or Original Bill of Lading)

Document that indicates that the exporter will consign a shipment to an international carrier for transportation to a specified foreign market and defines the terms of the contract of carriage. It serves as a collection document. If it is a straight B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a negotiable B/L is used, the buyer must first pay for the goods, post a bond, surrender the original B/L, or meet other conditions agreed upon by the seller.

Packing List

Itemized list of commodities with marks/numbers but no cost values indicated.

Pallet

A flat metal or wood bottom for cargo.

Payee

A party named as the beneficiary of funds. Under letters of credit, the payee is either the drawer of the draft or a bank.

Payer

A party responsible for the payment as evidenced by the given instrument. Under letters of credit, the payer is the party on whom the draft is drawn, usually the drawee bank.

Port of Entry

At this port foreign goods are admitted into the receiving country. The Customs authority designated this point where goods are examined and go through clearance.

Power of Attorney

A method a company uses to assign authority to another company or person to perform a certain function on the behalf of the first company.

Schedule B

Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. A number assigned to each commodity being exported from the Harmonized Tariff.

S.E.D. (Shipper?s Export Document or ?Ex Dec?)

A U.S. Commerce Department document describing all goods exported from the U.S. The shipper of the goods is responsible to make sure the document is filled out correctly, even though it may be done as a service for them by a freight forwarder or an NVOCC. This official document must be submitted by a U.S. exporter whenever a shipment of merchandise goes from the U.S. to a foreign destination. The joint Bureau of Census-International Trade Administration issues this form used for compiling U.S. export control laws. In it the shipper shows the value, weight, consignee, destination, etc., of export shipments as well as the Schedule B identification number.

EXW - Ex Works (...named place)

Ex works means that the seller (exporter) delivers when he places the goods at the disposal of the buyer (importer) at the seller's premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.
This term thus represents the minimum obligation for the seller (exporter), and the buyer (importer) has to bear all costs and risks involved in taking the goods from the seller's premises. However, if the parties wish the seller (exporter) to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale.

FCA - Free Carrier (...named place)

Free Carrier means that the seller (exporter) delivers the goods, cleared for export, to the carrier nominated by the buyer (importer) at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller (exporter) is responsible for loading. If delivery occurs at any other place, the seller (exporter) is not responsible for unloading.
This term may be used irrespective of the mode of transport, including multimodal transport. A Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.
If the buyer (importer) nominates a person other than a carrier to receive the goods, the seller (exporter) is deemed to have fulfilled his obligation to deliver the goods when they are delivered to that person.

FAS - Free Alongside Ship (...named port of shipment)

Free Alongside Ship means that the seller (exporter) delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer (importer) has to bear all costs and risks of loss of or damage to the goods from that moment.
The FAS term requires the seller (exporter) to clear the goods for export. However, if the parties wish the buyer (importer) to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term can be used only for sea or inland waterway transport.

FOB - Free On Board (...named port of shipment)

Free on Board means that the seller (exporter) delivers when the goods pass the ship's rail at the named port of shipment. This means that the buyer (importer) has to bear all costs and risks of loss of or damage to the goods from that point.
The FOB term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used. This term can be used only for sea or inland waterway transport.

CFR - Cost & Freight (...named port of destination)

Cost and Freight means that the seller (exporter) delivers when the goods pass the ship's rail in the port of shipment. The seller (exporter) must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of 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 (exporter) to the buyer (importer).
The CFR term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship's rail, the CPT term should be used.
This term can be used only for sea and inland waterway transport.

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

Cost, Insurance and Freight means that the seller (exporter) delivers when the goods pass the ship's rail in the port of shipment. The seller (exporter) must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of 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 (exporter) to the buyer (importer).
However, in CIF the seller (exporter) also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. Consequently, the seller (exporter) contracts for insurance and pays the insurance premium. The buyer (importer) should note that under the CIF term the seller (exporter) is required to obtain insurance only on minimum cover. Should the buyer (importer) wish to have the protection of greater cover, he would either need to agree as much expressly with the seller (exporter) or to make his own extra insurance arrangements.
The CIF term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship's rail, the CIP term should be used.
This term can be used only for sea and inland waterway transport.

CPT - Carriage Paid To (...named place of destination)

"Carriage paid to..." means that the seller (exporter) delivers the goods to the carrier nominated by him but the seller (exporter) must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer (importer) bears all risks and any other costs occurring after the goods have been so delivered.
"Carriage paid to..." means that the seller (exporter) delivers the goods to the carrier nominated by him but the seller (exporter) must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer (importer) bears all risks and any other costs occurring after the goods have been so delivered. Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. 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. The CPT term requires the seller (exporter) to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal transport

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

"Carriage and Insurance paid to..." means that the seller (exporter) delivers the goods to the carrier nominated by him but the seller (exporter) must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer (importer) bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller (exporter) also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage.
Consequently, the seller (exporter) contracts for insurance and pays the insurance premium. The buyer (importer) should note that under the CIP term the seller (exporter) is required to obtain insurance only on minimum cover. Should the buyer (importer) wish to have the protection of greater cover, he would either need to agree as much expressly with the seller (exporter) or to make his own extra insurance arrangements.
Carrier means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes. 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. The CIP term requires the seller (exporter) to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal transport.

DAF - Delivered at Frontier (...named place)

Delivered at Frontier means that the seller (exporter) delivers when the goods are placed at the disposal of the buyer (importer) on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term.
However, if the parties wish the seller (exporter) to be responsible for the unloading of the goods from the arriving means of transport and to bear the risks and costs of unloading, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier. When delivery is to take place in the port of destination, on board a vessel or on the quay (wharf), the DES or DEQ terms should be used.

DES - Delivered Ex-Ship (...named port of destination)

Delivered Ex Ship means that the seller (exporter) delivers when the goods are placed at the disposal of the buyer (importer) on board the ship not cleared for import at the named port of destination. The seller (exporter) has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging.
If the parties wish the seller (exporter) to bear the costs and risks of discharging the goods, then the DEQ term should be used.
This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in the port of destination.

DEQ - Delivered Ex-Quay (...named port of destination)

Delivered Ex Quay means that the seller (exporter) delivers when the goods are placed at the disposal of the buyer (importer) not cleared for import on the quay (wharf) at the named port of destination. The seller (exporter) has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf).The DEQ term requires the buyer (importer) to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import.
If the parties wish to include in the seller's obligations all or part of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) in the port of destination. However if the parties wish to include in the seller's obligations the risks and costs of the handling of the goods from the quay to another place (warehouse, terminal, transport station, etc.) in or outside the port, the DDU or DDP terms should be used.

DDU - Delivered Duty Unpaid (...named port of destination)

Delivered duty unpaid means that the seller (exporter) delivers the goods to the buyer (importer), not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller (exporter) has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any "duty" (which term includes the responsibility for and the risks of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. Such "duty" has to be borne by the buyer (importer) as well as any costs and risks caused by his failure to clear the goods for import in time.
However, if the parties wish the seller (exporter) to carry out customs formalities and bear the costs and risks resulting therefrom as well as some of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the vessel or on the quay (wharf), the DES or DEQ terms should be used.

DDP - Delivered Duty Paid (...named port of destination)

Delivered duty paid means that the seller (exporter) delivers the goods to the buyer (importer), cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller (exporter) has to bear all the costs and risks involved in bringing the goods thereto including, where applicable (Refer to Introduction paragraph 14), any "duty" (which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.
Whilst the EXW term represents the minimum obligation for the seller (exporter), DDP represents the maximum obligation. This term should not be used if the seller (exporter) is unable directly or indirectly to obtain the import license.
However, if the parties wish to exclude from the seller's obligations some of the costs payable upon import of the goods (such as VAT), this should be made clear by adding explicit wording to this effect in the contract of sale. If the parties wish the buyer (importer) to bear all risks and costs of the import, the DDU term should be used. This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the vessel or on the quay (wharf), the DES or DEQ terms should be used.