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Summer Training Project Report

Undertaken at Teck Link Sales & Marketing Pvt. Ltd. Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of

Master of Business Administration


By Mayank Gupt 11-MBA-29 11-5941 Under the Supervision of Mr. Manish Jain Managing Director

Centre for Management Studies


Jamia Millia Islamia, New Delhi 110025

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Certificate
This is to certify that Mayank Gupt has completed his Summer Training Project under my direct supervision. He underwent the Summer Training on and from 15 MAY 2012 (Date of Joining) to 15 May (Date of Completion), during which he was assigned the task of Reviewing Documents related to export & Import (Including all procedure of Export and Import) and contact to customers , which he has successfully completed and the same is presented in the form the present Project Report. It is further certified that the project report submitted by Mayank Gupt reflects his/her original work and based on the work assigned to him/her for the Summer Training and that the present project report has not been submitted elsewhere for award of any degree, diploma or fellowship.

Signature of Supervisor

Managing Director

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Declaration
I, Mayank Gupt, a bonafide student of MBA (Full Time) Programme at the Centre for Management Studies, Jamia Millia Islamia, New Delhi, hereby declare that I have undergone the Summer Training at Teck Link Sales & Marketing Pvt. Ltd. under the supervision of Mr. Manish Jain on and from 15 May 2012 (Date of Joining the Organization) to 15 JUL 2012 (Date of Completion). I also declare that the present project report is based on the above summer training and is my original work. The content of this project report has not been submitted to any other university or institute either in part or in full for the award of any degree, diploma or fellowship. Further, I assign the right to the university, subject to the permission from the organization concerned, use the information and contents of this project to develop cases, caselets, case leads, and papers for publication and/or for use in teaching.

Mayank Gupt 11-MBA-29 Place: New Delhi Date:

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ACKNOWLEDGEMENT
Life of human beings is full of interactions. No one is self-sufficient by himself whenever anyone is doing some serious and important work a lot of help from the people concerned is needed & one less specially obliged towards them. I cannot forget acknowledging them in few words as without the guidance & co-ordination of them in my project report would not have been possible. A large number of individual contributed to this project. I am thankful to all of them for their help and encouragement. My writing in this project report has also been influenced by a number of website and standard textbooks. As far as possible, they have been fully acknowledged at the appropriate place .I express my gratitude to all of them. First of all I owe my heartfelt gratitude to my guide Mr. S. Veeramani for his noble guidance throughout the completion of the Project. I would like to extend my heartfelt thanks to Mr. Manish Jain Managing Director of Teck Link Sales & Marketing Pvt. Ltd. New Delhi Branch for giving me an opportunity to work on this project. I would also like to thank Mr. B.P Jain (Senior Adviser) and Mrs. Monika Jain (Export Manager) of Teck Link Sales & Marketing Pvt. Ltd. Gurgaon for their guidance, inspiration, and constructive suggestions, which helped me in the Project. I must also thank the management of Teck Link Sales & Marketing Pvt. Ltd. To provide excellent opportunity and environment to be able to pull my project through. Cooperation of the staff is also gratefully acknowledged. Last but not least, also give my sincere thanks to all the people to directly indirectly have help and encourage me in finding the way to us collecting the requisite information and completing the project effectively and timely.

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Mayank Gupt 11-MBA-29

INDEX

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Abbreviations
Title Important Abbreviations Introduction of study Objective of study Research Methodology Research Design Scope of the Study Limitations of the study Company Profile Benefits Given by company Theoretical background Data Analysis and Interpretations Findings Bibliography Glossary Page No. 6 10 12 13 14 15 16 17 22 23 57 68 72 73

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INTRODUCTION OF STUDY

This project is all about to know export import procedure/ documentation of shipment. This project puts more focus on to know custom clearness, to make export - import invoice, to get shipping bill number from custom department etc.This project will also find out how Teck Link Sales & Marketing Pvt. Ltd. could sustain in the competitive world by providing vast range of product for cement manufacturing plant which flexible prompt and innovative in meeting the requirement of the customer. The purpose of the study was to know about export import documentation of seaway of Teck Link Sales & Marketing Pvt. Ltd.

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The main objectives of the research were:


To know about export import process. To know what are the documents required before and after sailing at Teck Link Sales & Marketing Pvt. Ltd.

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RESEARCH METHODOLOGY

Collect data/information about Teck Link Sales & Marketing Pvt. Ltd. through:
Primary data collection: E-mail Telephone Invoice Packing List

Secondary data collection: Invoice Packaging list Shipping bill Internet

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RESEARCH DESIGN

Research design is the based framework, which provides guidelines for the research process. It is a map or blue print according to which the research is to be conducts. The research design specifies the methods for data collection & data analysis determine the source of data. Most specifically it was a kind of Descriptive conclusive research who takes care of who, when, where, what, how and why aspects of the investigation further the researcher used the statistical method to serve the purpose of project, it permitted the research to derive more accurate generalization whose reliability could be measured.

CENTRE RESEARCH

: Delhi and Gurgaon : EXPLORATORY

RESEARCH TECHNIQUE: QUALITATIVE & QUANNTATIVE TOOL USED DATA SOURCE : TELEPHONIC & E-MAIL : PRIMARY & SECONDARY

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SCOPE OF THE STUDY

The scope of marketing research could cover the business problems relating to the followings. Types of consumers that compromise present and potential markets. Buying habits and pattern of consumption Size and location of different markets, not only in India but also overseas. The prospects for growth or construction for the current markets being served. New mantras of emerging segments. Marketing and manufacturing capabilities of competitors. Most suitable entry timing. The current and prospective competitive position. Chances of improvement of current channels. Better Management of documents in office

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LIMITATIONS OF THE STUDY

Not a panacea Not an exact science Limitation of time Erroneous findings Not exact tool for forecasting In experience research staff Narrow conception of marketing research

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COMPANY PROFILE
Teck Link Sales & Marketing Pvt. Ltd. have more than 10 years of experience in supply of original spares, equipment, machinery and solutions to cement plants. Teck Link Sales & Marketing Pvt. Ltd. has supplied huge range of spares from European and Asian manufacturers at competitive prices and flexible terms and conditions. Above all, Teck Link Sales & Marketing Pvt. Ltd. is committed to supplying every spare part or service customer plant needs to operate. When unexpected problems occur, customer can trust Teck Link Sales & Marketing Pvt. Ltd. to respond rapidly and accurately: as part of Teck Link Sales & Marketing Pvt. Ltd. quality assurance program, Teck Link Sales & Marketing Pvt. Ltd. always double check the documentation to ensure that the correct part is ordered. Teck Link Sales & Marketing Pvt. Ltd. long experience in the manufacture and specification of spare parts can help ensure optimum performance and cost-effective operation at customer plant even when it comes to spare parts for older legacy. The success of company is attributed to sheer business acumen and Professional expertise of our personnel. Teck Link Sales & Marketing Pvt. Ltd focus upon delivery of high quality services along with proactive client services to offer our clients a competitive advantage and create value for their business. Teck Link Sales & Marketing Pvt. Ltd is constantly investing resources to remain the force to reckon with of the new technologies that are available today, accessing extensive research and development facilities. Our motive is to sustain international standards and synchronize it with quantity because customer
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satisfaction is our major concern. Today, we have a cross-section of client across the world.

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Pumps Valves Blowers Fans Bladders Cylinders

Gearboxes Couplings Bearings Greasing Units Filter Bags Nozzles

Seals & Gaskets Heat Exchangers Filters Filter Elements Expansion Joints Oil Filtration Rigs Acoustic Cleaner

Compressors Hoists Air cannons Backstops Magnetic Separator Hoses

Conveyor Belts Heat Resistant Belts Sprockets Belt Cleaners

Idlers Rollers Pulleys Drum Motors

Chains Earth Moving Machinery Spares Bucket Elevators Bulk Handling Equipment

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Services
Teck Link Sales & Marketing Pvt. Ltd is a reputed consultant and a group of Cement Professionals located in Gurgaon (India), engaged in providing consultation to Cement Industry regarding Plant Optimization, Fuel Consumption Reduction, Raw Mix Designing, Production Enhancement, Commissioning of New Plants, Layout Designing, Spare Parts Planning, Feasibility Study of Plant Up-gradation and New Projects, Procurement Assistance, Detailed Engineering demands of various customers across the globe. Teck Link Sales & Marketing Pvt. Ltd. can assist customer in the following activities: Consultation to Cement Industry. Project Engineering. Plant Operation & Maintenance Contracts. Turkey Cement Projects. (Plant Erection & Fabrication jobs.) Supply of Engineering Equipments including complete Grinding Units.

I) Consultation to Cement Industry.


Teck Link Sales & Marketing Pvt. Ltd. is a group of expert professionals with vast experience of working with leading Cement manufacturers in India and abroad. Teck Link Sales & Marketing Pvt. Ltd.can do plant audits, optimization of Clinkerization & Grinding Units, Raw Mix Designing, Plant Audits, Up-gradation planning and feasibly, Spare Parts Inventory planning, Fly Ash Handling in Cement Grinding Units, Lay out Optimization etc.

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II) Project Engineering


Teck Link Sales & Marketing Pvt. Ltd. have recently started a project engineering company and provide the complete engineering details related to a Cement Plants viz , and project feasibility study, lay outing, detailed engineering, modifications, process improvement & optimization etc.

III) Plant Operation & Maintenance Contract


Teck Link Sales & Marketing Pvt. Ltd. can take Plant Operation Contracts by putting up our experts in each department working in co ordination with the existing Staff of the plant.

IV) Teck Link Sales & Marketing Pvt. Ltd. can source the Engineering Items from India :
1 Pollution Control Equipments. 2 Spraying Nozzles / Systems. 3 Cast Basalt Bends 4 Wear Resistant Liners, Chrome Carbide Hammers. 5 Any kind of casting jobs. 6 Material Conveying/Handling Equipments. (Any Type) 7 Bag Filters. 8 Oil Seals 9 Grinding Media 10 Any kind of Fabrication & Machining jobs. 11 3- Way Diverter / 2- W Diverters, Slide Gates etc. 12 Engineering Equipments viz. Roller Press, Stacker Reclaimer, Girth Gears, Kiln Shells, Kiln Tires, Support Rollers etc. 13 Any Electrical/Instrumentation item. 14 Cement Grinding Unit.
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15 Complete Cement Plant upto 1000 TPD.

Quality
Quality has always been a point of focus for us and we endeavor the parameter of quality with our passion to provide quality in each and everything that we supply. We follow stringent quality measures to check the quality of products. We believe that "Quality is the best way of eliminating competition" and we are proud to say that we have been consistently maintaining impeccable standards of quality, which has now become our trademark and have earned us accolades from our clients.The company has a team of experienced manpower that performs for the most accurate results. The Research and Development team is one of the hallmarks of any progressive organization. Constant innovation in quality and technology are the very factors by which we work within our organization and that is reflected in the quality standards that we follow.

Vision
Our vision is our driving force to ensure that our clients receive quality products at cost-effective prices. Quality - Customization - Innovation and Value Engineering has been the path through which we have always delivered the right products at the right price to our customers.

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BENEFITS GIVEN BY COMPANY


Origin Pickup/Trucking. Warehousing if required. Customs Clearance & Documentation at origin. Carriage by Sea or Air by payment of Freight. Inland Trucking if required. Customs Clearing of goods at destination and Warehousing if need be. Door Delivery of the cargo.

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THEORETICAL BACKGROUND LOGISTICS SYSTEM


Logistics is defined by the council of Logistics, Ohio USA as the Process of planning, implementing and controlling the efficient, co-effective flow and storage flow and storage of raw materials, in process inventory finished goods and related information from point of origin to point consumption. More simply, the objective of Logistics System is that the right products reach the right place in the right quantity at the right time to satisfy customer demand.

ELEMENTS OF LOGISTICS SYSTEM

Nature of Product Location of Manufacturing Plant Availability of infrastructure such as Road

Availability of different modes of transportation

Dealer/Distributor Network

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Government Policy

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ELEMENTS OF LOGISTICS SYSTEM

MODE OF TRANSPORTATION

AIR TRANSPORT OCEAN TRANSPORT RAIL TRANSPORT ROAD TRANSPORT

OCEAN TRANSPORT More than 95 per cent of international trade is conduced by sea routes since ancient times, sea routes are being used for transportation of cargo from one continent or country to Coastal shipping is also used for transporting the cargo from one port within the country to another.

For example in India the cargo can be transported from Chennai port to Visakhapatnam port using the costal shipping route. Sea routes are used for carrying bulj commodities like such as coaling and thermal coal mires, fertilizers rock phosphate etc, and liquid go like crude oil ammonium acids etc Ideally the goods with high volume and kiw vakye are suited die ocean transport in the era of containerisation even the high value cargo can be safely enabled the cargo carrying capacities of the ship to increase many fold.
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In 1956, the first containerised ship belonging to sea land corp. carried 58 twenty feet containers. The modern ships have the capacity to carry 7000 containers.

One of the biggest ships owned by Maersk-sea land is 1,138 feet long from end to end and 140 feet wide at mid ship. Such ships are called Post-Panamax ship.

Cargo ship categorised into followings :-

Liners ships : Liners ship represent the organized sector of the

shipping industries due to their fixed schedules of arrival and departure, Predetermined voyages and trade routes and published ocean freight rates. Liner shipping is governed by shipping conference advantage to shippers: Regular sailings to scheduled ports of call. Stable freight rates for a long period of time which helps the shipper to quote C & F prices with confidence. Uniform rates for all shippers. Coverage of wide range of ports. Rebates of freight rates based on loyalty agreements. and offers the following

following

Tramp ships:- Tramp ships on the other hand have the characteristics
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They are free to move anywhere on the high seas at their will.

Their voyage routes and schedules are flexible.

They

travel from the port to another port o various trade routes looking for the

cargo and carrying the same to various routes looking for the cargo and carrying the same to various destinations around the world.

They arrive or depart without a fixed route or schedule.

They fix their voyages according to availability of cargo and as per the requirement of the shippers of these cargoes.

The freight rates of tram ships depend upon the demand and supply conditions in the shipping industry. If there is a glut of shipping space the tramp freight rates plummet. Whereas in case of shortage of shipping space, the tramp freight rates shoot up.

The cargo space on the tramps is booked by the brokers located in major port cities like New York, London, Rotterdam Hamburg, and Hong- Kong etc. They work as a link between tramp operators and shippers.

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EXPORT PROCEDURE AND DOCUMENTATION

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In India, ships transport more than 90 per cent of the cargo. It therefore interesting to study the export processed by ship documentation related to it. Processing of an export order----i. Exporter operation starts with the receipt of enquiry by the exporter from importer. Bar on the enquiry exporter submits his offer giving complete details of products technical specific price delivery payment terms etc. ii. After the process negotiations importer sends a purchase order follow by letter of credit (if applicable). iii. The exporter manufactures the goods according to the specification given in purchase order. iv. As soon as the goods are ready the exporters invites the representative of Export inspections agency (EIA) for pre shipment inspection and obtain the certificate of inspection. v. After that, the exporter prepared following documents:--- INVOICE PACKING LIST ARE1 FROM EXSICE DEPARTMENT MARINE INSURANCE POLICY COPY OF PURCHASE ORDER / L/C vi. Above those documentation sends to CHA by exporter. vii. Based on these documents CHA agent completes the octroi formalities, obtain port permit and prepare shipping bill which is a customs documents.

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viii. Custom department check the export cargo on the basis of information provided on the shipping bill. If satisfy then cargo allow to loaded on the board of ship. ix. The shipping line gives mate receipts to CHA agents after the payment of ocean freights and port due obtains the bill of lading (B/L) from shipping line .B/L is a proof of dispatch of cargo and also a negotiable document. x. After that, CHA agent send various documents back to exporter which is Customs attested invoice Copy of shipping bill Full set of non board bill of lading. Copy of purchase order or L/C Copies of ARE1 Form SDF form xi. After that the exporter submitted above these documents for negotiation to the bank which include :--- Commercial invoice Packing list SDF form Original copy of purchases order Certificate of origin Bill of exchange
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Shipment advice

After that, bank scrutinizes these documents and if found correct make payment to exporter against documentations.

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INVOICE

CERTIFICATE CUSTOMS DOCUMENT

EXPORT DOCUMENTATION

TRANSPORT DOCUMENT EXCHANGE CONTROL DOCUMENT. PAYMENT DOCUMENT. MISCELLANEOUS DOCUMENT

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EXPORT INVOICE ELEMENT OF EXPORT INVOICE: Exporter Consignee Invoice No. and Date Exporter Ref. Buyer order no and date Other reference Buyer (other than consignee) Country of origin of goods Country of final destination Terms of delivery and Payment Pre-carriage by Place of receipt by pre-carrier Vessel/ Flight no. Port of loading Port of discharge Final Destination Marks and Nos. / No & Kind of pkgs. Item code
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Description of goods Net weight Gross weight Quantity Rate CIF EURO Amount CIF EURO Amount in words Declaration: Authorised signature

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Steps Involved in Export Transaction:


Step1
In the case of first time exporters-importers ,they need to apply to the director General of Foreign Trade DGFT REGIONAL office for getting Imorter-Exporter Code( IEC Number)

Step2.
The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government ,they need to get registered Corporation . with sales tax office and even Export Credit Guarantee

Step3
The exporter can now go in for procuring orders ,by first sending a sample order,once both exporter and importer have agreed upon the terms and conditions of the contract like pricing ,documentation ,freight charges ,currency etc.

Step4
With export order in hand , the exporter starts manufacturing goods or buying them from other manufacturer .

Step5.
The exporter makes arrangement for quality control and obtain a certificate confirming the quality of the goods from the inspector of quality control.

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Step6
Exportable are than dispatch to ports /airports for transit.

Step7.
The export firm has to apply to an insurance company for marine/air insurance cover( The exporter asks the importer to take marine/insurance under cost and freight ,free on board etc., terms of contract.)

Step 8.
The exporter contacts the clearing and forwarding agent (C &F) for storing the goods in warehouse .A document called Shipping Bill, Required for allowing shipment by customs Authority is presented by the forwarding agent. Step9. Once the goods are loaded into the ship , a receipt called Mate s receipt is issued by the captain to the ship superintendent of the port. Step10. The superintendent calculates ports charges and handover to the exporter /C& F agent . Step11. After making the ports payments ,the C&F agent or exporter gets the bill of lading or Airway Bill From the official agent of the shipping company or airline Step12.

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The exporter applies to the relevant Chamber of Commerce for obtaining Certificate of origin, stating that the goods of originated from India. Step13. The exporter sends a set of document to the importers ,stating the date of shipment,name of vessel , etc. Step14. Within 21 days after shipment the exporter must present all the document at his bank which scrutinizes these documents against the original letter of credit /purchase order. Step15. The exporters bank sends these document to the importers bank which should make the payment on of before the due date.

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EXPORT- IMPORT DOCUMENTATION


Commercial / Regulatory Documents

Commercial set of documents are mainly used for Commerce. In other words these are documents normally exchanged between buyer and seller. Regulatory documents are required in dealing with various regulatory authorities such as customs, RBI, Excise, Licencing authorities Inspection and other Export Promotion bodies for availing incentives etc.

Documents are categorized into two categories, namely Commercial Documents and Regulatory Documents.
Commercial Commercial Invoice Inspection Certificate Insurance Certificate Bill of Lading / AWB Certificate of Origin Bill of Exchange Shipment Advice Packing List
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Regulatory Shipping Bill ARE1 Exchange Declaration Form (GR/SDF Form) Airway Bill Consular Invoice

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Principal Documents
Commercial Invoice Inspection Certificate Insurance Certificate Certificate of Origin Bill of Lading Packing List Bills of Exchange

Auxiliary Documents
Performa Invoice Mate Receipt

Principal Documents
Commercial Invoice
An invoice is very important as it contains the names of the exporter, importer and the consignee and the description of goods. It has to be signed by the exporter. Other documents are prepared by deriving information from the invoice. It is required to be presented before different authorities for different purposes.

Inspection Certificate
It is required by some importers and countries in order to get the specifications of the goods shipped attested. The attestation is usually performed by a government agency or by independent testing organisations.
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Insurance Certificate
This document, obtained from the freight forwarder, is used to assure the consignee that insurance will cover the loss or damage to the cargo during transit (marine/air insurance).

Certificate of Origin
This certificate issued by the Local Chamber of Commerce indicates that the goods, which are being exported, are actually manufactured in a specific country mentioned therein. It is sent by the exporter to the importer and is useful for the clearance of the goods from the customs authority of the importing country.

Bill of Lading
This document is issued by the shipping company acknowledging the receipt of the goods mentioned in the bill, for shipment on board of the vessel. The B/L is the legal document to be referred in case of any dispute over the shipment. It contains: The shipping companys name and address The consignees name and address
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The port of loading and port of discharge Shipping marks and particulars Number of packages and the goods Gross weight and net weight Freight details and name of the vessel Signature of the shipping companys agent

Packing List
This statement gives the packing details of goods in a prescribed format. It is a very useful document for customs at the time of examination and for warehouse keeper of the buyer to maintain a record of inventory and to effect delivery.

Bills of Exchange
It is an instrument in writing, containing an order, signed by the maker, directing a certain person to a pay a certain sum of money only to the order of a person to the bearer of the instrument. It is commonly known as a draft.

Auxiliary Documents

Performa Invoice

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Performa Invoice as the name suggests, is a Performa of the invoice. It is prepared by an exporter and sent to the importer for necessary acceptance. It suggests to a buyer what the actual invoice would look like and is sent to him when he is ready to purchase the goods.

Mate Receipt Port authorities recover port dues from exporter on production of this receipt. On payment of Dock dues, the exporter or his agent collects the receipt from the Port-Trust authorities and hands over to shipping company for preparing Bill of Lading. Bill of Lading is prepared on the basis of Mates Receipt. It is of a transferable nature. In case of ascertaining the exact date of shipment, the mates receipt date is also very important. Normally, the date of Export is regarded as the date of Mate Receipt or the date of Bill of Lading, whichever is later.

Regulatory Documents
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Shipping Bill/Bill of Entry


It is a requisite for seeking the permission of customs to export goods. It contains a description of export goods by sea/air. It contains a description of export goods, number and kind of packages, shipping marks and number numbers, value of goods, the name of the vessel, the country of destination, etc. On the other hand, importers have to submit copies of document called Bill of Entry for customs clearance. Later, a copy has to be given to the bank for verification.

ARE-1 Form
This form is an application for the removal of excisable goods from the factory premises for export purposes. The ARE-1 form has multiple copies which are distributed to different authorities, including customs, range office of excise, refund office of excise, etc.

Exchange Declaration Form (GR/SDF Form)


The RBI has prescribed a GR form (SDF), a PP form and SOFTEX forms to declare and export transactions. The GR form contains: a) Name and address of the exporter and description of goods. b) Name and address of the authorized dealer through whom proceeds of the exports have been or will be realized. c) Details of commission and discount due to foreign agent or buyer. d) The full export value, giving break up of FOB, Freight, Insurance, Discount and Commission, etc.
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Airway Bill
This receipt issued by an airlines company or its agent for carriage of goods is a contract between the owner of the goods and the carrier. It should indicate freight pre-paid or freight to collect. The first three digits of the Airway Bill Number represent the code, which identifies the carrier.

Consular Invoice
This invoice is needed to be submitted for certification to the embassy of the country concerned. Its main purpose is to enable the importers country to collect accurate and authenticated information about the value, volume, quantity, source etc. of the import for assessing import duties and for statistical purposes. It helps the importer to get goods cleared through customs without any undue delay.

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INCOTERMS
INCOTERMS are a set of three-letter standard trade terms most commonly used in international contracts for the sale of goods. It is essential that you are aware of your terms of trade prior to shipment. EXW EX WORKS ( named place of delivery) The Sellers only responsibility is to make the goods available at the Sellers premises. The Buyer bears full costs and risks of moving the goods from there to destination. FCA FREE CARRIER ( named place of delivery) The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Sellers premises. From that point, the Buyer bears the costs and risks of moving the goods to destination. CPT CARRIAGE PAID TO ( named place of destination)
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The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, Buyer bears the risks of loss or damage. CIP CARRIAGE AND INSURANCE PAID TO ( named place of destination) The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance. DAT DELIVERED AT TERMINAL ( named terminal at port or place of destination) The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyers disposal at a named terminal at the named port or place of destination. Terminal includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination. DAP DELIVERED AT PLACE ( named place of destination) The Seller delivers when the goods are placed at the Buyers disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place. DDP DELIVERED DUTY PAID ( named place) The Seller delivers the goods -cleared for import to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes. 2. MARITIME-ONLY TERMS

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FAS FREE ALONGSIDE SHIP ( named port of shipment) The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage. FOB FREE ON BOARD ( named port of shipment) The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage. CFR COST AND FREIGHT ( named port of destination) The Seller clears the goods for export and pays the costs of moving the goods to destination.The Buyer bears all risks of loss or damage. CIF COST INSURANCE AND FREIGHT ( named port of destination) The Seller clears the goods for export and pays the costs of moving the goods to the port of destination.The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.

For Importer Exporter Code Number (IEC)


GUIDELINES FOR APPLICANTS
1.Two copies of the application must be submitted unless otherwise mentioned . 2.Each individual page of the application has to signed by the applicant. 3.a.Part1&Part4 has to be filled in by all applicant .In case of applications submitted electronically, no hard copies of Part 1 may be submitted .However in case where applications are submitted otherwise ,hard copy of Part 1 has to be submitted b.Only relevant portions of Part need to be filled in.
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4.Application must be accompanied by document as per details given below: I. For Importer Exporter Code Number(IEC) 1. Bank Receipt (in duplicate) Demand Draft/EFT details evidencing payment of application fee in terms of Appendix21 B. 2. Certificate from the Banker of the applicant firm in the format given in Appendix 18 A. 3. Self certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities. 4. Deleted 5. Two copies of passport size photographs of the applicant duly attested by the banker of the applicant.

For Import Licence for Restricted Items GUIDELINES FOR APPLICANTS

5. Two copies of the application must be submitted unless otherwise mentioned. 6. Each individual page of the application has to be signed by the applicant. 7. a) Part 1 & Part 4 has to be filled in by all applicants. In case applications submitted electronically. No hard copies of Part 1 may be submitted. However, in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted. b). Only relevant portions of Part 2 need to be filled in.

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8. Application must be accompanied by documents as per details given below:

II. For Import Licence for Restricted Items


1. Bank Receipt (in duplicate)/ Demand Draft/ EFT details evidencing payment of application fee in terms of Appendix 21 B. 2. Self certified copy of Performa Invoice from foreign supplier showing CIF value of goods. 3. Self certified copy of the Registration Certificate issued by concerned authority. 4. Self certified copy of the recommendation letter by the concerned authority. 5. In case import of gift, Donors letter in original. 6. In case of import of Ammunition, a certificate from the Chartered Accountant/Cost and Works Accountant/Company Secretary showing sales turnover of ammunition (indigenous and imported) during the preceding three licensing years.

For Import Certificate under Indo-US Memorandum GUIDLINES FIOR APPLICANTS


9. Two copies of the application must be submitted unless otherwise mentioned. 10. Each individual page of the application has to be signed by the applicant. 11. a) Part 1 & Part 4 has to be filled in by all applicants. In case applications submitted electronically. No hard copies of Part 1 may be submitted. However, in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted. b). Only relevant portions of Part 2 need to be filled in. 12. Application must be accompanied by documents as per details given below:
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II A.

For Import Certificate under Indo-US Memorandum


payment of application fee in terms of Appendix 21 B.

1. Bank Receipt (in duplicate)/ Demand Draft/ EFT details evidencing 2. Self certified copy of letter from US supplier in support of request for import certificate.

For Export License for restricted Items GUIDLINES FOR APPLICANTS


13. Two copies of the application must be submitted unless otherwise mentioned. 14. Each individual page of the application has to be signed by the applicant. 15. a) Part 1 & Part 4 has to be filled in by all applicants. In case applications submitted electronically. No hard copies of Part 1 may be submitted. However, in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted. b). Only relevant portions of Part 2 need to be filled in.
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16. Application must be accompanied by documents as per details given below:

III. For Export License for Restricted Items


1. Bank receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms of Appendix 21 B. 2. Self certified copy of Export Order.

For Export Licence for SCOMET Items GUIDLINES FOR APPLICANTS


17. Two copies of the application must be submitted unless otherwise mentioned. 18. Each individual page of the application has to be signed by the applicant. 19. a) Part 1 & Part 4 has to be filled in by all applicants. In case applications submitted electronically. No hard copies of Part 1 may be submitted. However, in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted. b). Only relevant portions of Part 2 need to be filled in.

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20. Application must be accompanied by documents as per details given below:

III A For Export Licence for SCOMET Items


1.Bank receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms of Appendix 21 B. 2.For Export of Special Chemicals in Categories 1B and 1C of schedule2 Appendix 3 of ITC (HS) Classification of Export & Import items: a). Self certified copy of export order. b). End User certificate indicating the end product for which the item of export will be used by end user in the format given in Appendix 36. 3. For Export of all other category items of Schedule 2 Appendix 3 of ITC (HS) Classification of Exports & Import items except those given in serial no. 2 above: a) Self certified copy of export order. b) End User certificate indicating the end product and/or end purpose for which the item of export will be used by end user in the format given in Appendix 36. c) Technical Specifications of the items to be exported (not exceeding one page for each item). d) Self certificate copy of Bill of Lading for items exported earlier under a Licence as per serial no. 3 of Part B of sub section III A.

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For DEPB applications GUIDLINES FO APPLICANTS


21. Two copies of the applications must be submitted unless otherwise mentioned. 22. Each individual page of the application has to be signed by the applicant. 23 a) Part 1 & Part 4 has to be filled in by all applicants. In case applications submitted electronically. No hard copies of Part 1 may be submitted. However, in cases where applications are submitted otherwise, hard copy of Part 1 has to be submitted. b). Only relevant portions of Part 2 need to be filled in.
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24. application must be accompanied by documents as per details given below:

V C. For DEPB applications


1. Bank receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms of Appendix 21 B. 2. Export Promotion (EP) copy of Shipping Bill(s). In case of exports through notified land customers under paragraph 4.40, Bill of Export may be accepted in lieu of Shipping Bill. 3. Bank Certificate of Exports and Realisation as given in appendix 22 A or Foreign inward Remittance Certificate (FIRC) in the case of direct negotiation of documents or Appendix 22D in the case of offsetting of export proceeds with the approval of RBI. In case of FIRC, a declaration from the exporter that the remittance is in respect of Shipping Bill(s) No dated shall also be furnished.

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DATA ANALYSIS

Air freight calculation


Introduction
Airlines that are members of the International Air Transport Association (IATA) are bound by their membership to comply with tariffs issued by IATA. However since 11th September 2002, airfreight rates are now extremely negotiable. Airfreight rates cover transportation from the airport of loading to the airport of discharge. These rates do not include the following:

Collection of air cargo from the consignor's/exporters premises Delivery of cargo from the airport of destination to the consignee's premises Storage of cargo before or after loading Customs clearance in the country of destination Any duties and taxes that may have to be paid Insurance

Chargeable/volumetric weight
Airline freight rates are based on a "chargeable weight", because the volume or weight that can be loaded into an aircraft is limited. The chargeable weight of a shipment will be either the "actual gross mass" or the "volumetric weight", whichever is the highest. The chargeable weight is calculated as follows: 1 metric ton = 6 cubic metres. In order to establish if the cargo will be a weight or volumetric based shipment.
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Step 1
Measure the parcel/cargo along the greatest length, width and height of that parcel. For example; 100 cm (L) X 100 cm (W) X 100 cm (H) = 1 000 000 cm3. Next, weigh the parcel; assume it weighs 150kg.

Step 2
Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You have now converted the centimeters (cm) into kilograms (kg)

Step 3
Now compare the weight to the volume. If the weight is 150 kg then the airline would base the freight on the higher amount being: 166,66 kg

Air freight calculations


The airline calculates freight based on weight or volume, which ever yields the greatest amount. Airlines quote freight rates based on the following rate structures:

A basic minimum charge per shipment. General cargo rates quoted for per kilogram. This rate applies without reference to the nature or description of the parcel, which is to be freighted.

Specific commodity rates apply to certain goods of specific descriptions, such as fresh produce. These rates are lower than the general cargo rate, and they provide breakpoints at which the level of the rate reduces further.
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Example: 0 - 50 Kg @ R22.00/per kg 50 - 100 Kg @ R19.00 per kg

100 - 150 Kg @ R17.00 per kg Unit Load Device charges


These rates are charged per container/ULD without reference to the commodity loaded therein. Calculation of freight rates: Let us assume the following figures: The freight rate is R18.00 per kg The weight of the parcel is 300 kg The dimensions are: 114,6 cm X 120,4cm X 132,5 cm (round the cm's up or down)

Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6 000 = 305.9 kg (having converted cm's to kg's now round up the kg's to the next half a kilogram = 306 kg. As the freight rate quoted by the airline is R18.00 per kg, we calculate the price as follows: 306 kg X R18/kg = R5 508.00 The freight rate will not be calculated on the actual mass 300 kg X R18.00 = R5 400.00 as the airline will always use the greater amount either the kg, or volumetric weight.

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Consolidation
Consolidation is an economical method of moving cargo by employing a consolidator. The consolidator receives cargo from a number of suppliers/shippers and then combines these cargoes into one consignment by packing the goods into a Unit Load Device. The consolidator then books the Unit Load Device with an airline. The supplier/shipper would have a contract of carriage with the consolidator of the cargo and in turn the airline would have a contract of carriage with the consolidator. The airline would issue an air waybill to the consolidator when accepting the Unit Load Device and in turn the consolidator would issue the supplier/shipper with a house air waybill.

The air waybill


The air waybill, unlike the ocean bill of lading is not a document of title to the goods described therein, however it does perform several similar functions these are:

It is a receipt for the goods It is evidence of the contract of carriage between the exporter and the carrier It incorporates full details of the consignor/shipper, the consignee/receiver and the consignment/goods It is an invoice showing the full freight amount It must be produced, be it in an electronic format, at the airport of discharge for clearing purposes

All copies of the air waybill, together with the commercial invoice, packing list, certificate of origin and any other document which may be necessary for clearing the goods through customs, these documents are carried in the flight captain's bag.
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Sea freight calculations


Introduction
Seafreight calculations can broadly be divided into two main components; breakbulk and containerised. In this section we deal with how you should calculate the freight costs of both of these two types of seafreight.

Break bulk cargo calculations


Break bulk cargo, is cargo that is unitised, palletised or strapped. This cargo is measured along the greatest length, width and height of the entire shipment. The cargo is also weighed. Shipping lines quote break bulk cargo per "freight ton", which is either 1 metric ton or 1 cubic metre, which ever yields the greatest revenue. Example: A case has a gross mass of 2 Mt. The dimensions of the cargo are: 2.5 X 1 X 2 metres The tariff rate quoted by the shipping line is: USD 110.00 weight or measure (freight ton)

Step 1
Multiply the metres 2.5 X 1 X 2 = 5 metres Compare to the mass = 2 Mt .

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Step 2
Calculate the freight with the greater amount either the mass or the dimension. 5 X USD 110.00 = USD 550.00 Freight would be paid on the measurement and not the weight. All shipping lines carrying cargo in a break-bulk form insist on payment based on a minimum freight charge which is equivalent to one freight ton, one cubic metre or one metric ton.

Full Container load calculations and surcharges


Freight rates for containers are based on the container as a unit of freight irrespective of the commodity or commodities loaded therein, (FAK) Freight All Kinds. The shipping lines quote per box (container) either a six or twelve metre container. From time to time, abnormal or exceptional costs arise in respect of which no provision has been made in the tariffs. For example a shipping line cannot predict the movement of the US Dollar or the sudden increase of the international oil price. These increases have to be taken into account by the shipping line in order to ensure that the shipping line continues to operate at a profit. These increases are called surcharges. All shipping lines accordingly retain the right to impose an adjustment factor upon their rates taking into account these fluctuations. All surcharges are expressed as a percentage of the basic freight rate. Surcharges are regularly reviewed in the light of unforeseen circumstances, which may arise and bring cause for a surcharge increase.

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Bunker Adjustment Factor (BAF)


"Bunkers" is the generic name given to fuels and lubricants that provide energy to power ships. The cost of bunker oil fluctuates continually and with comparatively little warning. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + BAF 5.2% US Dollar 1 250.00 X 5.2% = US Dollar 65.00 Add the two amounts together Freight rate: U S Dollar 1 315.00

Currency Adjustment Factor (CAF)


The currency adjustment factor is a mechanism for taking into account fluctuations in exchange rates, these fluctuations occur when expenses are paid in one currency and monies earned in another by a shipping company. The currency adjustment factor is a mechanism for taking into account these exchange rate fluctuations. It is always expressed as a percentage of the basic freight and is subject to regular review. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + CAF 6.3% US Dollar 1 250.00 X 6.3% = US Dollar 78.75 Add the two amounts together Freight rate: U S Dollar 1 328.75

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War Surcharge The outbreak of hostilities between nations can have a serious effect upon carriers servicing international trade even though they may sail under a neutral flag. Carriers sailing within the vicinity of a war zone may impose a war surcharge on freight to compensate for the higher risks involved and the higher levels of insurance premium, which they may be obliged to pay. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + WAR 5% US Dollar 1 250.00 X 5% = US Dollar 62.50 Add the two amounts together Freight rate: U S Dollar 1 35.50 All of the above surcharges may be applied to a single freight rate. Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 250.00 per 6-M container + BAF 5.2% + CAF 6.3% + WAR 5% Total amount of surcharge 16.5% US Dollar 1 250.00 X 16.5% = US Dollar 206.25 (add to freight rate) US Dollar 1 456.25

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Port Congestion Surcharge


Congestion in a port for a period of time can involve considerable idle time for vessels serving that port. When a ship lies idle, this creates a huge amount of loss for the ship's owner. Shipping lines therefore have the right to impose a surcharge on the freight to recover revenue lost. Another factor which influences port congestion surcharge would be labour disputes. Port congestion surcharges are calculated as a percentage of the freight rate as expressed in the previous examples. Consolidation services The consolidator or groupage operator hires a container from a shipping line and then sells that space to his clients/exporters. The benefit for the exporter is that small quantities which, would not fill a full container load, can be shipped by sea freight in a shipping container as an alternative to air freighting the goods. The consolidator would charge per metric ton or cubic metre, which ever yields the greatest. Example: US Dollar 89.00 Weight or Measure. The shipping line would have a contract of carriage with the consolidator and in turn the consolidator would have a contract of carriage with the exporter. The consolidator would be issued with an combined through bill of lading from the shipping line and then present the exporter with a house bill of lading (See bill of lading below)

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The Bill of Lading


The bill of lading performs the following functions:

A contract of carriage between the shipper of the cargo and the carrying shipping company. The name of the shipper and the receiver of the goods the consignee. The contents of the packages as declared by the shipper. Shipping details such as: port of loading and the port of discharge. The bill of lading is a freight invoice and indicates if the freight costs have been prepaid by the exporter or will be paid by the importer, "freight collect".

The bill of lading states the number of packages, weight and dimension of the shipment. It is a document of title to the goods stated thereon.

Every original bill of lading signed by or on behalf of the shipping company is a document of title to the underlying goods. This special function of a bill of lading is achieved by a form of words which state: "In witness whereof the undersigned on behalf of the shipping company has signed three bills of lading all of this tenor and date, one of which being accomplished the others to stand void". "Accomplishing" the bill of lading requires the surrender to the shipping line or its agents in the port or place of destination one of the signed original bills of lading duly endorsed by the consignee/importer. Unless and until one of the original bills of lading as described above is surrendered, the shipping line will not release the cargo to the consignee/importer. Upon surrender of any one of the originals the other originals bills of lading become void.
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Endorsed Bills of Lading


Bills of lading can only be issued with the words "shipped on board", if the cargo has actually been loaded onto the named vessel at the port of loading. By insisting that the exporter supplies the importer with a "shipped on board" bill of lading, the importer obtains conclusive evidence that the goods have been loaded on board the intended vessel. Some importers insist that the exporter presents "shipped on board" bills as a condition for payment. "Received for shipment", bills of lading can be issued as soon as the goods have been delivered into the custody of the carrying shipping company or its agent either at the point of receipt or at the port of loading. Thus, a 'received for shipment", bill of lading will only indicate the ship in which the cargo is intended to be loaded on. The risk remains that the loading may, for many reasons delayed or the cargo may not be loaded at all. Banks responsible for the payment of funds in payment for goods under letters of credit will not release the funds if the bill of lading has been endorsed "received for shipment".

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FINDINGS

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IMPORTER PURCHASES ORDER / L/C

EXPORTER CERTIFICATE INVOICE OF INSPECTION PACKING LIST GR FORM ARE1 FORM MARINE INSURANCE POLICY

C & F AGENT CUSTOMS SHIPPING ATTESTED BILLS INVOICE FULL SET OF ON BOARD BILL OF LADING COPY OF L/C DUPLICATE DUPLICATE COPY ARE COPY GR FORM FORM

COMMERCI AL INVOICE

PACKIN G LIST

DUPLICA TE COPY GR FORM

EXPORTER NEGOTIAB ORIGI LE COPIES NAL OF B/L L/C

CERTIFICATE OF ORIGIN

BILL OF EXCHANG E

NEGOTIATING BANK L/C AMOUNT EXPORTER SHIPPING DOCUMENT IMPORTER

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BIBLIOGRAPHY

Export Import Documentation Logistics in International Business

- Prof. D.C. pai ,Nabhi Publication - Prof. Rajeev Aserkar

REFERENCES INTERNET
www.google.co.in www.ask.com www.exit.net www.eximguru.com www.dgft.com www.dgft.org

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GLOSSARY INTERNATIONAL FREIGHT TERMS


ABI - Automated Brokerage Interface: Is a system available to U.S. Customs Brokers with the computer capabilities and customs certification to transmit and exchange customs entries and other information, facilitating prompt release of imported cargo. Acceptance: A time draft (or bill of exchange) which the drawee has accepted and is unconditionally obligated to pay at maturity. Drawee's act in receiving a draft and thus entering into the obligation to pay its value at maturity. An agreement to purchase goods under specified terms. Add Hoc Charter: A one-off charter operated at the necessity of an airline or charterer. Ad Valorem ("according to the value"): A fixed percentage of the value of goods that is used to calculate customs duties and taxes. Admiralty Court: Is a court having jurisdiction over maritime questions pertaining to ocean transport, including contracts, charters, collisions, and cargo damages. Advance Against Documents: Load made on the security of the documents covering the shipment. Advising Bank: A bank that receives a letter of credit from an issuing bank, verifies its authenticity, and forwards the original letter of credit to the exporter without obligation to pay. Advisory Capacity: A term indicating that a shipper's agent or representative is not empowered to make definite decisions or adjustment without the approval of the group or individual represented. Affiliate: Is a company that controls, or is controlled by another company, or is one of two or more commonly controlled companies. Airfreightment: An agreement by a steamship line to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter
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or importer, who then becomes liable for payment even though he is later unable to make the shipment. Agency Agreement: The steamship line appoints the steamship agent and defines the specific duties and areas of responsibility of that agent. Air Cargo Agent: Is a type of freight forwarder who specializes in air cargo and acts for airlines that pay him a fee (usually 5%). He is registered with theInternational Air Transport Association, IATA (See also Air Freight Forwarder; Forwarder, Freight Forwarder, Foreign Freight Forwarder). Air Freight Forwarder: Is a type of freight forwarder who specializes in air cargo. He usually consolidates the air shipments of various exporters, charging them for actual weight and deriving his profit by paying the airline the lower consolidated rate. He issues his own air waybills to the exporters, is licensed by the CAB (Civil Aeronautics Board) and has the status of an indirect air carrier (See also Air Cargo Agent, Forwarder, Freight Forwarder, Foreign Freight Forwarder.) Air Waybill: A bill of landing that covers both international and domestic flights transporting goods to a specified destination. This is a non-negotiable documents of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. AITA: International Air Transport Association, IATA, (French, German). All-Risk Clause: Is an insurance provision that all loss or damage to goods is insured except that of inherent vice (self caused). (See All Risk Insurance). All Risk Insurance: Is a clause included in marine insurance policies to cover loss and damage from external causes, such as fire, collision, pilferage, etc. but not against innate flaws in the goods, such as decay, germination, nor against faulty packaging, improper packing/ loading or loss of market, nor against war, strikes, riots and civil commotions (See Marine Insurance) Alongside: A phrase referring to the side of a ship. Goods to be delivered
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"alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded abroad the ship. Arbitration Clause: Is a standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association. Assignment: The transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to third party. Assignment of Proceeds: A stipulation within a letter of credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries. A.T.: American Terms (Marine Insurance) A term used to differentiate between the conditions of American Policies from those of other nations, principally England. Automated Brokerage Interface (ABI): An electronic system allowing customhouse brokers and importers to interface via computer with the US Customs Service for transmitting entry and entry summary data on imported merchandise. Automated Commercial System (ACS): The electronic system of the US Customs Service, encompassing a variety of industry sectors, that permits online access to information in selected areas. Automated Manifest System (AMS): The electronic system allowing a manifest inventory to be transmitted to the US Customs Service data center by carrier, port authority or service center computers. BAA: British Airports Authority BACA: Baltic Air Charter Association Balance of Trade: The difference between a country's total imports and exports; if exports exceed imports, favorable balance of trade exists, if not, a trade deficit is said to exist.
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Barter: Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible. B/B: (See Break-Bulk Cargo) Belly Cargo: Freight accommodation below the main deck. Beneficiary: A firm or person on whom a letter of credit has been drawn. The beneficiary is usually the seller or exporter. Bermuda Agreement: An agreement concluded in 1946 between the U.K. and the U.S., designed to regulate future international air traffic. Most governments accept its principles and follow it inter alia by limiting traffic rights on international routes to one or two carriers. Berth: Is the place beside a pier, quay or wharf where a vessel can be loaded or discharged. Berth Liner Service: Is a regular scheduled steamship line with regular published schedules (port of call ) from and to defined trade areas. Berth or Liner Terms: Is an expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be for ship owner's account, and usually apply from the end of ship's tackle in port of loading to the end of ship's tackle in port of discharge. Bill of Lading: A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, contract of carriage, and a receipt for goods. Also see Air Waybill and Ocean Bill of Lading. Bonded Warehouse: A warehouse storage area or manufacturing facility in which imported goods may be stored or processed without payment of customs duties.

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Brussels Tariff Nomenclature Number (BTN): The customs tariff number used by most European nations. The United States does not use the BTN, but a similar system known as the Harmonize Tariff Schedule. CAA: Is the Civil Aviation Authority. Government body responsible for regulating U.K. airlines. Cabotage: Is where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories. CAD Can have two meanings in the industry CAD: The acronym meaning "cash against documents," a method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller. CAD/CAM: Computer Aided Design/Computer Aided Manufacturing. Cage: The transporting of goods by truck to or from a vessel, aircraft, or bonded warehouse, all under customs custody. Cargo: Is merchandise/commodities/freight carried by means of transportation. Cargo Receipt: Is a receipt of cargo for shipment by a consolidator (used in ocean freight). Carnet: A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purpose) without paying duties or posting bonds. Carriers(s) Containers or Shipper(s) Containers: The term Carrier(s) Container(s) or Shipper(s) Container(s) means containers over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing or renting shipper owned containers.

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Carrier, Common: A public or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid. Cartel: Is an association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or an industry. Cash in Advance (C.I.A.): Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order. Cash Against Documents (CAD): Payment for goods in which a commission house, or other intermediary, transfers title documents to the buyer upon payment in cash. C.C.E.F.: Is a Customs Centralized Examination Facility. Certificate of Analysis: Is a certificate required by some countries as proof of the quality and composition of food products or pharmaceuticals. The required analysis may be made by a private or government health agency. The certificate must be legalized by a foreign consul of the country concerned, as is the case with such similar certificates as the phytosanitary certificate. Certificate of Inspection: A document certifying that the goods were in apparent good condition immediately prior to shipment. Certificate of Manufacture: A statement in which a producer specifies where his goods were manufactured, certifies that manufacturing has been completed, and confirms that the goods are at the buyer's disposal. Certificate of Origin: A statement signed by the exporter, or his agent, and attested to by a local Chamber of Commerce, indicating that the goods being shipped, or a major percentage of them, originated and were produced in the exporter's country. CES: Is a Customs Examination Station
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C&F: Is a quoted price includes cost of goods and freight. C & I: Is a quoted price includes cost of goods and insurance. CFS (Container Freight Station): The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo. CFS/CFS (Pier to Pier): The term CFS/CFS means cargo delivered by break bulk to Carrier's CFS to be packed by Carrier into containers and to be unpacked by Carrier from the container at Carrier's destination port CFS. CFS/CY (Pier to House): The term CFS/CY means cargo delivered break-bulk to Carrier's CFS to be packed by Carrier into containers and accepted by consignee at Carrier's CY and unpacked by the consignee off Carrier's premises, all at consignee's risk and expense. CFS CHARGE (Container Freight Charge): The term CFS Charge means the charge assessed for services performed at the loading or discharging port in packing or unpacking of cargo into/from containers at CFS. CFS Receiving Service: The term "CFS Receiving Services" means the service performed at loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following 1. Moving empty containers from CY to CFS 2. Drayage of loaded containers from CFS to CY and/or ship's tackle 3. Tallying 4. Issuing dock receipt/shipping order 5. Physical movement of cargo into, out of and within CFS 6. Stuffing, sealing and marking containers 7. Storage 8. Ordinary sorting and stacking
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9. Preparing carrier's internal container load plan CIF (cost, insurance and freight): Seller is responsible for inland freight, ocean/air freight, and marine/air insurance to the port of final entry in the buyer's country. The buyer is responsible for inland transportation to his or her location. Chargeable Kilo: Rate for goods where volume exceeds six cubic metres to the tonne. Charter: Originally meant a flight where a shipper contracted hire of an aircraft from an airline. Has usually come to mean any non-scheduled commercial service. Charter Party: The contract between the owner of a ship and the individual or company chartering it. Among other specifications, the contract usually stipulates the exact obligations of the ship-owner (loading the goods, carrying the goods to a certain point, returning to the charterer with other goods, etc.); or it provides for an outright leasing of the vessel to the charterer, who then is responsible for his own loading and delivery. In either case, the charter party sets forth the exact conditions and requirements agreed upon by both sides. Charter party Bill of Lading: A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit. Chassis: A wheel assemble including bogies constructed to accept mounting of containers. CIA: The acronym meaning "cash in advance," a method of payment for goods whereby buyer pays seller in advance of shipment of goods. C.I.F.: Is a quoted price includes cost of goods, insurance and freight. C.I.T.E.S.: Committee on International Trade of Endangered Species. Class Rates: A class of goods or commodities is a large grouping of various items under one general heading. All items in the group make up a class. The freight rates that apply to all items in the class are called class rates.

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Classification: Is a customs term. The placement of an item under the correct number in the customs tariff for duty purposes. At times this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by the customs on a given item. Claused Bill of Lading: Is a bill of lading which has exemptions to the receipt of merchandise in "apparent good order" noted. Clean Bill of Lading: Is a bill of lading which covers goods received in "apparent good order and condition" and without qualification. Clean Draft: Is a draft to which no documents have been attached. cm: Centimeters CNS: Cargo Network Services, an IATA company. See IATA. Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment. Commercial Risk: Risk carried by the exporter (unless insurance is secured) that the foreign buyer may not be able to pay for goods delivered on an open account basis. Confirmed Letter of Credit: A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured of payment by the U.S. bank even if the foreign buyer or the foreign bank defaults. Conference: A group of vessel operators joined together for the purpose of establishing freight rates. RoRo/Container Vessel - Ship designed to accommodate containers and roll-on roll-off cargo. It can be self sustaining. RoRo/Container/Break-bulk Vessel - Designated to accommodate three types of cargo, usually self sustaining. Commercial Code: A published code designed to reduce the total number of words required in a cablegram.

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Commodity Specialist: An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods. Consignee: Person or firm to whom goods are shipped under a bill of landing. Consular Declaration: A formal statement, made to the consul of a foreign country, describing goods to be shipped. Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by consular official of the foreign, it is used by the country's customs official to verify the value, quantity, and nature of the shipment. Combi: Is an aircraft with pallet or container capacity on its main deck as well as in its belly holds. Combination Vessels: Container/Break-bulk vessel - this type of ship accommodates both container and break-bulk cargo. It can be either self sustaining or non-self sustaining. Commercial Invoice: An itemized list of goods shipped, usually included among an exporter's collection papers. Common Carrier: A firm or individual that transports persons or goods for compensation. Confirmed Letter of Credit: A letter of credit, issued by a foreign bank with validity confirmed by a U.S. bank. Confiscation: The taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property. Consignee: The individual or company to whom a seller or sipper sends merchandise and who, upon presentation of necessary documents, is recognized as merchandise owner for the purpose of declaring and paying customs duties. Consignee Marks: A symbol laced on packages for identification purposes;
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generally consisting of a triangle, square, circle, diamond, cross, with letters and/or numbers as well as port of discharge. Consignment: Is the physical transfer of goods from a seller (consignor) with whom the title remains, to another legal entity (consignee) who acts as a selling agent, selling the goods and remitting the new proceeds to the consignor. Consignor: A term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal. Consolidated Shipment: An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment. Consolidator: An agent which brings together a number of shipments for one destination to qualify for preferential airline rates. Consortium: The name for an agreement under which several nations or nationals (usually corporations) of more than one nation, join together for a common purpose. It could be for management or exploitation of a natural resource, as in the case of some international petroleum consortiums. Consul: A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals. Consular Documents: Special forms signed by the consul of a country to which cargo is destined. Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity and nature of the shipment. Container: The term container means a single rigid, non-disposable dry cargo, insulated, temperature controlled flatrack, vehicle rack portable liquid tank, or
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open top container without wheels or bogies attached, having not less than 350 cubic feet capacity, having a closure or permanently hinged door that allows ready access to the cargo (closure or permanently hinged door not applicable to flatrack vehicle rack or portable liquid tank). All types of containers will have constructions, fittings and fastenings able to withstand without permanent distortion, all the stresses that may be applied in normal service use of continuous transportation. All containers must bear manufacturer's specifications. Container Ship: Ocean going ship designed to carry containers both internally and on deck. Some are self sustaining. Containerization: Is a concept for the ultimate unitizing of cargo used by both steamship lines and air cargo lines. Containers allow a greater amount of cargo protection from weather, damage, and theft. Containers (Air Cargo): Many types of air cargo containers are offered: The containers are designed in various sizes and irregular shapes to conform to the inside dimensions of a specific aircraft. Containers (Ocean): Are designed to be moved inland on its own chassis and can be loaded at the shippers plant for shipment overseas. Basic types of containers are; dry van, open top, half high, hi cube, flat rock, tank container, refrigerated container, insulated container, tilting container. Average outside dimensions are generally 20, 35, and 40 feet in length, 8 feet wide and 8 feet high standard. Continuous Bond: Is an annual customs bond insuring compliance with all regulations and requirements. Contract Rate: Is a charge levied by carriers selling capacity forward over a given route to a shipper of forwarder; the client is therefore assured of capacity, which must be paid for regardless of load carried.

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Coordinating Committee for Export Controls (COCOM): An informal group of 15 western countries established to prevent the export of certain strategic products to potentially hostile nations. Correspondent Bank: A bank that, in its own country, handles the business of a foreign bank. Countertrade: Is a reciprocal trading arrangement, which includes a variety of transactions involving two or more parties. Countervailing Duties: Is a special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country. Credit Risk Insurance: Insurance designed to cover risks of nonpayment for delivered goods. Customs Bonded Warehouse: Is a warehouse where imported goods may be stored for a total of three years without the payment of duty or taxes. Customhouse Broker: An individual or firm licensed to enter and clear goods through Customs. Customs Court: Is the court to which importers might appeal or protest decisions made by Customs officers. Customs Tariff: Is a schedule of charges assessed by the federal government on imported goods. Customs Union: Is an agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other's goods and establish a common tariff for the imports of all other countries. CWO: The acronym meaning "cash with order," a method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller. CY (Container Yard): The term CY means the location designated by Carrier in the port terminal area for receiving, assembling, holding, storing and delivering containers, and where containers may be picked up by shippers or re-delivered by consignees. No container yard (CY) shall be a shipper's, consignee's,
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NVOCC's, or a forwarder's place of business, unless otherwise provided. CY/CFS (House to Pier): The term CY/CFS means containers packed by shipper of carrier's premises and delivered by shipper to Carrier's CY, all at shipper's risk and expense and unpacked by Carrier at the destination port CFS. CY/CY (House to House): The term CY/CY means containers packed by shipper off Carrier's premises and delivered by shipper to Carrier's CY and accepted by consignee a t Carrier's CY and unpacked by consignee off Carrier's premises, all at the risk and expense of cargo. Dangerous Goods: Articles or substance capable of posing a significant risk to health, safety or property, and that ordinarily require special attention when being transported. DAT: Dangerous articles tariff. Date Draft: Draft that matures in a specified number of days after the date it is issued, without regard to the date of Acceptance. See Draft. DCA: Department of Civil Aviation. Commonly used term to denote the government department of any foreign country that is responsible for aviation regulation and granting traffic rights. DDP: Delivered duty paid. Also known as "free domicile." DDU: Delivered duty unpaid. Reflects the emergence of "door-to-door" intermodal or courier contracts or carriage where only the destination customs duty and taxes (if any) are paid by consignee. Dead Leg: Is a sector flown without payload. Dead Freight: Is freight charges paid by the charterer of vessel for the contracted space, which is left partially unoccupied. Deck Cargo: Is cargo carried on deck rather than stowed under deck. On deck carriage is required for certain commodities, such as explosives. Deferred Payment Credit: Type of letter of credit providing for payment some time after presentation of shipping documents by exporter.

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Deferred Rebate: The return of a portion of the freight charges by a carrier or a conference shipper in exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified period of time (usually 6 months). Payment of the rate is deferred for a further similar period, during which the shipper must continue to give all or most of his shipments to the rebating carrier or conference. The shipper thus earns a further rebate which will not, however, be paid without an additional period of exclusive or almost exclusive patronage with the carrier of conference. In this way, the shipper becomes tied to the rebating carrier or conference. Although, the deferred rebate system is illegal in U.S. foreign commerce, it generally is accepted in the ocean trade between foreign countries. Demurrage: A penalty for exceeding free time allowed for loading or unloading at a pier or freight terminal. Also a charge for undue detention of transportation equipment or carriers in port while loading or unloading. Density: Density means pounds per cubic foot. The cubage of loose articles or pieces, or packaged articles of a rectangular, elliptical or square shape on one plane shall be determined by multiplying the greatest straight line dimensions of length, width and depth in inches, including all projections, and dividing the total by 1728 (to obtain cubic feet). The density is the weight of the article divided by the cubic feet thus obtained. DEQ: Delivered ex quay/duty paid. Destination Control Statement: Any of various statements that the U.S. government requires to be displayed on export shipments and that specify the destination for which export of the shipment has been authorized. D.F.: Dead Freight DGR: Dangerous Goods Requirement. Dim Weight: (Dimensionalized Weight) Determined by calculating length x width x height and dividing by 166. Charged when actual weight is less than the dim. weight.
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Dock Receipt: When cargo is delivered to a steamship company at the pier, the receiving clerk issues a dock receipt. Documents Against Acceptance (D/A): Instructions given by a shipper to a bank indicating that documents transferring title goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance of the attached draft. DOT: Department of Transportation Draft (or Bill of Exchange): An unconditional order in writing from one person (the drawer) to another (the drawee), directing the Drawee to pay a specified amount to a named Drawer at a fixed or determinable future date. Drawback: A U.S. customs law that permits an American exporter to recover duties paid on imported foreign raw materials or components included in products that are subsequently exported out of the United States. Drawee: The individual or firm on whom a draft is drawn and who owes the stated amount to the drawer. Dry Lease: The rental of a "clean" aircraft without crew, ground staff or supporting equipment. DST: The acronym meaning "double stack train" service, which is the transport rail between two points of a trainload of containers with two containers, one on top of the other, per chassis. d.w.: Deadweight (tons of 2,240 lbs.) d.w.c.: Deadweight for cargo E.A.O.N.: Except as otherwise noted. EDI or EDIFACT: Electronic Data Interchange for Administration, Commerce and Transport, from the UN-backed electronic data interchange standards body, to create electronic versions of common business documents that will work on a global scale. One digital document under consideration, the International Forwarding and Transport Message will do the jobs of six different electronic messages currently in use.

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Empty Leg: Results from an aircraft primarily chartered outbound having cargo capacity inbound or vice versa. A cheap form of airfreight. Endorsement in Blank: Commonly used on a bank check, an endorsement in blank is an endorsement to the bearer. It contains only the name of the endorser and specifies no particular payee. Also, a common means of endorsing bills of lading dawn to the order of the shipper. The bills are endorsed "For..." (see Bill of Lading, Order). Eurodollars: U.S. dollars on deposit outside of the United States to include dollars on deposit at foreign branches of U.S. banks, and dollars on deposit with foreign banks. "Ex": Signifies that the quoted price applies only at the indicated point of origin (e.g. "price ex factory" means that the quoted price is for the goods available at the factory gate of the seller). Ex. B.L.: Exchange bill of lading. Export Broker: The individual who brings together buyer and seller for a fee, eventually withdrawing from any transaction. Export Declaration: A form to be completed by the exporter or their authorized agent and filed in triplicate by a carrier with the United State Collector of customs at the point of exit. It serves a twofold purpose: 1. Primarily, it is used by the U.S. Bureau of Census for the compilation of export statistics on United States foreign trade (for this reason an export declaration is required for practically all shipments from the United States to foreign countries and the United States possessions, except for mail shipments of small value, or for those of a non commercial character); 2. The declaration also serves as an export control document because it must be presented, together with the export license, to the United States Customs at the port of export. If the goods may be exported under general export license, this fact must be stated on the export declaration. Export License: A document secured from a government, authorizing an
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exporter to export a specific quantity of a particular commodity to a certain country. An export license is often required if a government has place embargoes or other restrictions upon exports. See General Export License. Export Trading Company: A corporation or other business unit organized and operated primarily for the purpose of exporting goods and services, or of providing export related services to other companies. Express: Premium-rated service for urgent deliveries. EXW: Ex works. Same as the former "Ex Works."FAK: Freight All Kinds uniform airline charging scale applying to a number of commodities; as opposed to SCR (Specific Commodity Rate) applying to one commodity only. FAS (free alongside ship): Seller is responsible for inland freight costs until goods are located alongside the vessel/aircraft for loading. Buyer is responsible for loading costs, ocean /air freight and marine/air insurance. Fathom: (Nautical) Conversion equivalents: 6 feet; 1.83 meters. F.C.L.: Full container load, full car load. F.c.s.: Free of capture and seizure. f.c.s.r.c.c.: Free of capture, seizure, riots and civil commotions. F.&.D.: Freight and demurrage. FEU: Forty foot equivalent FIATA: International Federation of Freight Forwarders Associations. Fifth Freedom Flight: Where cargo is carried by an airline between two countries in neither of which it is based. F.i.b.: Free in bunkers; free into barge. Flag Carrier: An airline of one national registry whose government gives it partial or total monopoly over international routes. FOB (free on board): Seller is responsible for inland freight and all other costs until the cargo has been loaded on the vessel/aircraft. Buyer is responsible for ocean/air freight and marine/air insurance. F.o.d. : Free of damage
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Folded: An article folded in such a manner as to reduce its bulk 33 1/3% from its normal shipping cubage when not folded. Force Majeure: The title of a standard clause found in marine contracts exempting the parties for nonfulfillment of their obligations by reasons of occurrences beyond their control, such as earthquakes, floods or war. Foreign Trade Zone: A free port in the United Stated divorced from Customs authority but under Federal control. Merchandise, except that which is prohibited, may be stored in the zone without being subjected to the United States tariff regulation. Also called Free Trade Zone. Foreign Trade Zone Entry: A form declaring goods which are brought duty free into a Foreign Trade Zone for further processing or storage and subsequent exportation. Forwarder, Freight Forwarder, Foreign Freight Forwarder: An independent business that dispatches shipments for exporters for a fee. The firm may ship by land, air, or sea, or it may specialize. Usually it handles all the services connected with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery and export clearance. The firm may also handle banking and insurance services on behalf of a client. The U.S. forwarder is licensed by the Federal Maritime Commission for ocean shipments. Foul Bill of Landing: A receipt for goods issued by a carrier with an indication that the goods were damaged when received. F. P.A.A.C. F.p.a. (A.C.) : Free of Particular Average, American Conditions(Marine Insurance Term). The American form of clause commonly used, as distinguished from that used by the English underwriters. Under the American clause the underwriter does not assume responsibility for partial losses unless caused by stranding, sinking, burning or collision with another vessel whereas under the English clause, the underwriter assumes responsibility for partial losses if the vessel be stranded, sunk, burnt or in collision even though such

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anevent did not actually cause the damage suffered by the goods. Conditions (See F.P.A.A.C.). F.P.A.: Free of Particular Average (Marine Insurance Term). A term used in marine insurance policies to indicate that while the underwriter is unwilling to assume liability for ordinary partial losses due to the peculiar qualities of the particular article or to its form of package, he is willing to bear partial losses, the direct result of stranding, sinking, burning, collision, or other named peril Free Alongside: Quoted price includes the cost of delivering the goods alongside a designated vessel. Free In (F.I.): Cost of loading a vessel is borne by the charterer. Free In and Out (F.I.O.): Cost of loading and unloading a vessel is borne by the charterer. Free of Capture and Seizure (F.C.& S.) : An insurance clause providing that loss is not insured if due to capture, seizure, confiscation and like actions, whether legal or not , or from such acts as piracy, civil war, rebellion and civil strife. Free of Particular Average (F.P.A.) : A marine insurance clause providing that partial loss or damage is not insured American conditions (F.P.A.A.C.). Partial loss is not insured unless caused by the vessel being sunk, stranded, burned, on fire, or in collision. English conditions (F.P. A.E.C.). Partial loss not insured unless a result of the vessel being sunk, stranded, burned, on fire, or in collision. Free Out (F.O.): Cost of unloading a vessel is borne by the charterer. Free Port: A port which is a foreign trade zone, open to all traders on equal terms; more specifically a port where merchandise may be stored duty-free, pending re-export or sale within that country. Free Trade Zone: A port designated by the government of a country for dutyfree entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, within the zone and re-exported without duties being
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paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs Authority. Freight Forwarder: An individual or company , acting on the behalf of a shipper, who arranges all necessary details of shipping and documentation for a manufacturer or exporter, which includes employing the services of a carrier of carriers. Gang: Group of stevedores usually 4 to 5 members with supervisor assigned to a hold or portion of the vessel being loaded or unloaded. Gateway: Port of entry into a country or region. GATT: General Agreement on Tariffs and Trade, a multilateral treaty intended to help reduce trade barriers and promote tariff concessions. GCR: General Cargo Rate. The basic tariff category which was introduced to cover most air cargo now covers only a minority, the remainder being under SCR or class rates. General Average: When damage to cargo on board a vessel exceeds carrier's insurance, carrier will release cargo only with an acceptance agreement to claim only a general percentage of all the damage sustained. General Export License: Any of various export licenses covering export commodities for which validated export licenses are not required. No formal application or written authorization is needed to ship exports under a general export license. General Order: Government contract warehouse for the storage of cargoes left unclaimed for ten working days after availability. Unclaimed cargoes are auctioned publicly after one year. Gross Weight: Entire weight of goods, packing, and container,, ready for shipment. G.R.Wt./G.W.: Gross Weight. GSA: General Sales Agent acting on behalf of an airline. Usually Broker or
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Forwarder. Harmonized Code: An internationally accepted and uniform description system for classifying goods for customs, statistical and other purposes. Harmonized Systems: A key provision of the recently signed trade bill, effective Jan. 1, 1989, that establishes international uniformity for product classifications. Most U.S. Trading partners adopted it a year earlier, and it was drafted in Brussels a decade ago with U.S. representatives' input. In essence, it is a new tariff schedule in that it changes methods of rating some items. Hatch: The cover of - or opening- in the deck of a vessel, through which cargo is loaded. Heavy Lifts: Freight too heavy to be handled by regular ship's tackle. Heavy Lift Vessel: Specifically designed to be self sustaining with heavy lift cranes, to handle unusually heavy and/or out-sized cargoes. House Air Waybill: An air waybill issued by a freight consolidator. See Air Waybill. Hub: A central location to which traffic from many cities is directed and from which traffic is fed to other areas. Hundredweight (cwt.): A short ton hundredweight = 100 pounds. Long ton hundredweight = 112 pounds. Husbanding: Term used by steamship lines, agents, or port captains who are appointed to handle all matters in assisting the master of the vessel while in port to obtain bunkering, fresh water, food and supplies, payroll for the crew, doctors appointments, ship repair, etc. IATA: International Air Transport Association. ICAO: International Civil Aviation Organization. A specialized agency of the United Nations, with headquarters in Montreal. Its task is to promote general development of civil aviation (e.g. aircraft design and operation, safety procedures, contractual agreements). ICC: International Chamber of Commerce
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I.C.T.F.: Intermodal Container Transfer Facility, an on-dock facility for moving containers from ship to rail or truck. IFF: Institute of Freight Forwarders. Igloo: Container designed to occupy full main deck width of carrying aircraft. Import License: A certificate, issued by countries exercising import controls, that permits importation of the articles stated in the license. The issuance of such a permit frequently is connected with the release of foreign exchange needed to pay for the shipment for which the import license has been requested. In-Bond: A customs program for inland ports that provide for cargo arriving at a seaport to be shipped under a Customs bond to a more conveniently located inland port where the entry documents have been filed. Customs clears the shipment there, and the cargo is trucked to its destination, which normally is close to the inland port. Independent Action: A move by whereby a member of a shipping conference elect to depart from the specific service rates set forth by the conference, giving ten calendar days notice of such action. The conference member's new schedule of rate, or rates, officially takes effect no later than ten days after receipt of notice by the conference. Inducement: Some steamship lines publish in their schedules the name of a port and the words by inducement in parentheses. This means the vessel will call at the port if there is sufficient amount of profitable cargo available and booked. Inland Carrier: A transportation line which hauls export or import traffic between ports and inland points. I.p.a.: Including particular average Inspection Certificate: A document certifying that merchandise (such as perishable goods) was in goods condition immediately prior to shipment. Integrated Carrier: Forwarder which uses own aircraft, whether owned or
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leased, rather than scheduled airlines. Intellectual Property: Ownership of the legal rights to possess, use or dispose of products created by human ingenuity, including patents, trademarks and copyrights. Interline: Mutual agreement between airlines to link their route network. Intermeddle: Referring to the capacity to go from ship to train to truck, or the like, the adjective generally refers to containerized shipping or the capacity to handle same. ISO: International Standards Organization also referred to as the International Organizational for Standardization. Incoterms: A codification of terms used in foreign trade contracts that is maintained by the International Chamber of Commerce. Incremental Cost to Export: The additional costs incurred while manufacturing and preparing a product for export ( e.g., product modifications, special export packaging and export administration costs.) This does not include the costs to manufacture a standard domestic product, export crating and transportation to the foreign market. Irrevocable Letter of Credit: A letter of credit with a fixed expiration date that carries the irrevocable obligation of the issuing bank to pay the exporter when all of the terms and conditions of the letter of credit have been met. J.&W.O.: Jettison and washing overboard JETSAM: Goods from a ship's cargo, or parts of its equipment, that have been thrown overboard to lighten the load in time of danger, or to set a stranded ship adrift. Joint Venture: A form of business partnership involving joint management and the sharing of risks and profits between enterprises sometimes based in different countries. Just-In-Time (JIT): The principle of production and inventory control in which goods arrive when needed for production or use.
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K.D.C.L.: Knocked down in carload lots KD Flat: An article taken apart, folded, or telescoped to reduce its bulk at least 66 2/3% below its assembled size. K.D.L.C.L.: Knocked down in less than carload lots. Knock Down (KD): An article taken apart, folded or telescoped in such a manner as to reduce its bulk at least 33 1/3% below its assembled bulk. Knot (Nautical): The unit of speed equivalent to one nautical mile, or 6,080.20 feet per hour or 1.85 kilometers per hour. L/C - Letter of Credit: A document issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms. Issued as revocable or irrevocable. L. & D.: Loss and damage Lagan: Cargo or equipment to which an identifying marker or buoy is fastened, thrown over-board in time of danger to lighten a ship's load. Under maritime law if the goods are later found they must be returned to the owner whose marker is attached; the owner must make a salvage payment. Lash: Lighter Aboard Ship (see Lighter) Lash Vessel: Designed to load internally, barges specifically designed for the vessel. The concept is to quickly float the barges to the vessel (using tugs or ships wenches) load these barges through the rear of the vessel, then sails. Upon arrival at the foreign port, the reverse happens; Barges are quickly floated away from the vessel and another set of waiting barges quickly are loaded. Designed for quick vessel turn-around. Usually crane-equipped; handles mostly breakbulk cargo. Lay Days: The dates between which a chartered vessel is to be available in a port for loading of cargo. L.C.L.: Less than container load; less than car load.

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Legal Weight: The weight of the goods plus any immediate wrappings which are sold along with the goods: e.g., the weight of a tin can as well as its contents. (See Gross Weight). Less than Truck Load (LTL): Rates applicable when the quantity of freight is less than the volume or truckload minimum weight. Letter of Credit: A document issued by a bank at a buyer's request honoring debt obligations to the seller upon receipt of the document. Lighter: An open or covered barge equipped with a crane and towed by a tugboat. Used mostly in harbors and inland waterways. Lighterage: The cost of loading or unloading a vessel by means of barges alongside. Liner: The word "liner" is derived from the term "line traffic" which denotes operation along definite routes on the basis of definite, fixed schedules; a liner thus is a vessel that engages in this kind of transportation, which generally involves the haulage of general cargo as distinct from bulk cargo. Liquidation: The finalization of a customs entry. Livestock: Common farm animals. Lkg. & Bkg.: Leakage and breakage. Load Factor: Capacity sold as against capacity available, expressed as a percentage. Lo/Lo: The acronym meaning "lift-on,lift-off," denoting the method by which cargo is loaded onto and discharged from an ocean vessel, which in this case is by the use of a crane. l.t. or l.tn.: Long ton (2240 lbs.). Ltge.: Lighterage LTL: Less than truckload Letter of Credit - payment by sight draft: The exporter receives guaranteed

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payment from the confirming bank in the U.S. upon presentation of the sight draft and documents required by the letter of credit. Manifest: A list of the goods being transported by a carrier. Marine Insurance: An insurance which will compensate the owner of goods transported overseas in the event of loss which cannot be legally recovered from the carrier. Maritime Administration (MARAD): A US government agency, while not actively involved in vessel operation, administers laws for maintenance of merchant marine for the purposes of defense and commerce. Mark: As used on containers in foreign trade, a symbol or initials shown together with the port of importation and the final destination, if different. Example: A.G. y Cia., Bogota via Barranquilla. Marks are registered at appropriate customs houses; they also appear on bills of lading and invoices. In domestic trade, it is common to mark containers with the name and address of the recipient, but this is rarely done in foreign trade. Marking: Every article of foreign origin, or its container, imported into the United States shall be permanently marked in a conspicuous place in a manner which would indicate to the ultimate purchaser the English name of the country of origin of the article. Mate's Receipt: Receipt of cargo by the vessel, signed by the mate (similar to dock receipt). Measurement Ton: The measurement ton (also known as the cargo ton or freight ton) is a space measurement, usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet or 1 cubic meter it occupies. Min. B/L: Minimum bill of lading M.M.: Mercantile marine MFN (Most Favored Nation): Designation for countries which receive
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preferential tariff rates. This is no longer the best tariff structure available. M/R: Mate's Receipt M/T: Metric Ton (2204 lbs.) mt.: Empty M/V or M.V.: Motor vessel MW: Minimum weight factor National Carrier: A flag carrier owned or controlled by the state. n.e.m.: Not elsewhere mentioned (English) n.e.s.: Not elsewhere specified Nested: Three or more different sizes of an article are placed within each other so that each article will not project above the next lower article by more than 33 1/3% of its height. Nested Solid: Three of more different sizes of an article are placed within each other so that each article will not project above the next lower article by more than 1/4 inch. Net Terms: Free of charters' commission Net Weight: (Actual Net Weight) Weight of goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can without the weight of the can. NMFC: National Motor Freight Classification No Objection Certificate: Document provided by scheduled or national airlines of many countries declaring no objection to a proposed charter flight operated by another airline. Often demanded by government authorities before they grant permission for a charter flight to take place. No Objection Fee: Sum of money paid by a charter airline normally to a scheduled airline in order that it waives its right of objection to its government, thus allowing a charter to take place. Tantamount to a bribe. The amount is usually a fixed percentage of the gross cost of a charter. Common practice in the Middle East and Africa.
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N.O.E.: Not otherwise enumerated N.O.H.P.: Not otherwise herein provided N.O.I.: Not more specifically described N.O.I.B.N.: Not otherwise indicated by number; Not otherwise indicated by name. Non-Scheduled Flight: See scheduled flight. Non-Tariff Barriers (NTB): Economic, political, administrative or legal impediments to trade other than duties, taxes and import quotas Non-Vessel Operation Common Carrier (NVOCC): An F.M.C. registered cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port. These carriers issue their own bill of lading referred to as a house bill of lading. N.O.S.: Not otherwise specified N.T.: Net tons Ocean Bill of Lading: A receipt for cargo in transit, and a contract between the exporter and an ocean carrier for transportation and delivery of goods to a specified party at a specified foreign destination. Issued after the vessel has sailed and the cargo has been entered in the ship's manifest. O.D.: Outside diameter ODS: An acronym commonly used for the term "operating differential subsidy," which is a payment to an American-flag carrier by the federal government to offset the difference in operating costs between US and foreign vessels. Off-Line: Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network. O/N: Order notify; own name O/o: Order of Open Account: A high-risk trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.

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Open Policy: A cargo insurance policy that is an open contract; i.e., it provides protection for all an exporter's shipments afloat or in transit within a specified geographical trade area for an unlimited period of time, until the policy is cancelled by the insured or by the insurance company. It is "open" because the goods that are shipped are also detailed at that time. This usually is shown in a document called a marine insurance certificate. Original Equipment Manufacturers (OEM accounts): Customers who incorporate the exporter's product into their own merchandise for resale under their own brand names. O/R : Owner's risk O. & R.: Ocean and Rail O.r.b.: Owner's risk or breakage O.R. Det.: Owner's risk of deterioration O.R.F.: Owner's risk of fire or freezing O.R.L.: Owner's risk of leakage O.R.W.: Owner's risk of becoming wet O.S. & D.: Over, short and damage Ocean Bill of Lading: A receipt for cargo in transit, and a contract between the exporter and an ocean carrier for transportation and delivery of goods to a specified party at a specified foreign destination. Issued after the vessel has sailed and the cargo has been entered in the ship's manifest. O.D.: Outside diameter ODS: An acronym commonly used for the term "operating differential subsidy," which is a payment to an American-flag carrier by the federal government to offset the difference in operating costs between US and foreign vessels. Off-Line: Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network. O/N: Order notify; own name
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O/o: Order of Open Account: A high-risk trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. Open Policy: A cargo insurance policy that is an open contract; i.e., it provides protection for all an exporter's shipments afloat or in transit within a specified geographical trade area for an unlimited period of time, until the policy is cancelled by the insured or by the insurance company. It is "open" because the goods that are shipped are also detailed at that time. This usually is shown in a document called a marine insurance certificate. Original Equipment Manufacturers (OEM accounts): Customers who incorporate the exporter's product into their own merchandise for resale under their own brand names. O/R : Owner's risk O. & R.: Ocean and Rail O.r.b.: Owner's risk or breakage O.R. Det.: Owner's risk of deterioration O.R.F.: Owner's risk of fire or freezing O.R.L.: Owner's risk of leakage O.R.W.: Owner's risk of becoming wet O.S. & D.: Over, short and damage P.A. : Particular average Paired: Port of Arrival Immediate Release and Enforcement Determination. A U.S. Customs program that allows entry documentation for an import shipment to be filed at one location, usually an inland city, while the merchandise is cleared by Customs at the port of entry, normally a seaport. May be ineffective with certain types of high-risk cargoes, such as quota-regulated textiles or shipments from drug-production regions. Cities where there is a natural flow of cargo are actually "paired" in the program; e.g., Atlanta, an inland city, is linked

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with Savannah, a seaport. Tested in '87-'88, it became generally available in mid- '88. Pallet: Load carrying platform to which loose cargo is secured before placing aboard the aircraft. Pallet Extender: Fashionable metal or cardboard device to increase pallet capacity. Paperless Release: Under ABI, certain commodities from low-risk countries not designated for examination may be released through an ABI-certified broker without the actual submission of documentation. Part Charter: Where part of an airline's scheduled flight is sold as if it were a charter in its own right (Often wrongly used as a synonym for split charter). Part Load Charter: Where a part of an aircraft's load is discharged at one destination and a part of it at another. This is distinct from a split charter where a number of consignments are carried to the same destination. Inbound, part loads are treated as single entity charters under the regulations of most countries. Particular Average: Partial loss or damage to goods. Perils of the Sea: Most losses covered by a marine insurance policy come within the comprehensive expression "perils of the sea," which refers to damage caused by heavy weather, strandings, strikings on rocks or on bottom, collision with other vessels, contacts with floating objects, etc. Perishables: Any cargo that loses considerable value if it is delayed in transportation (Usually refers to fresh fruit and vegetables). Phytosanitary Inspection Certificate: A certificate issued by the U.S. Department of Agriculture indicating that a shipment has been inspected and is free of harmful pests and plant diseases. Pilferage: As used in marine insurance policies, the term denotes petty thievery, the taking of small parts of a shipment, as opposed to the theft of a whole shipment or large unit. Many ordinary marine insurance policies do not
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cover against pilferage, and when this coverage is desired, it must be added to the policy. Pivot Weight: That weight of a ULD above which a higher tariff applies; in effect, an incentive to maximize cargo density. Place: A particular street address or other designation of a factory, store, warehouse, place of business, private residence, construction camp or the like, at a point. Place of Rest: The term "Place of Rest" as used in the Containerized Cargo Rules means that location on the floor, dock, platform or doorway at the CFS to which cargo is first delivered by shipper or agent thereof. Point: A particular city, town, village or other community or area which is treated as a unit for the application of rates. Port Authority: A government body (city, county or state) which in international shipping maintains various airports and/or ocean cargo pier facilities, transit sheds, loading equipment warehouses for air cargo, etc. Has the power to levy dockage and wharfage charges, landing fees, etc. Port Marks: An identifying set of letters numbers and/or geometric symbols followed by the name of the port of destination, which are placed on export shipments. Foreign government requirements may be exceedingly strict in the matter of port marks. Port of Discharge: Port where vessel is off loaded and cargo discharges. Port of Entry: A port at which foreign goods are re-admitted into the receiving country. Port of Loading: Port where cargo is loaded aboard the vessel lashed and stowed. Power of Attorney: A document that authorizes a customs broker to sign all customs documents on behalf of an importer.

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Pre-Advice: Preliminary advice that a letter of credit has been established in the form of a brief authenticated wire message. It is not an operative instrument and is usually followed by the actual letter of credit. Prepaid Freight: Generally speaking, freight charges both in ocean and air transport may be either prepaid in the currency of the country of export or they may be billed collect for payment by the consignee in his local currency. However, on shipments to some countries freight charges must be prepaid because of foreign exchange regulations of the country of import and/or rules of steamship companies or airlines. Pre-Slung Cargo: Cargo shipped already in a cargo sling or net. Usually prepared and loaded at pier ready for arrival of vessel and subsequent loading (i.e. coffee in bags, coconut shells, etc). Price Quotation/Proforma Invoice: An invoice prepared by the seller in advance of shipment that documents the cost of goods sold, freight, insurance, and other related charges. It is often used by the buyer to secure a letter of credit, an import license or a foreign currency allocation. Prima Facie: Latin, "on first appearance." A term frequently encountered in foreign trade. When a steamship company issues a clean bill of lading, it acknowledges that the goods were received "in apparent good order and condition" and this is said by the courts to constitute prima facie evidence of the conditions of the containers; that is, if nothing to the contrary appears, it must be inferred that the cargo was in good condition when received by the carrier. Proforma: When used with the title of a document, the term refers to an informal document presented in advance of the arrival, or preparation of the required document, in order to satisfy a customs requirement. Pro Number: A number assigned by the carrier to a single shipment, used in all cases where the shipment must be referred to. Usually assigned at once. Proof of Delivery: Add-on service in express market, delivered either by phone or courier. Often offered free.
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Protest: Customs form 19 allows for a refund of an overpayment of duty if filed within 90 days of liquidation. P.W.: Packed weight R. & C. : Rail and Canal R/C: Reconsigned r. & c.c.: Riots and civil commotions r.c.c. & s.: Riots, civil commotions and strikes Rebate: A deduction taken from a set payment or charge. As a rebate is given after payment of the full amount has been made, it differs from a discount which is deducted in advance of the payment. In foreign trade, a full or partial rebate may be given on import duties paid on goods which are later re-exported. Reciprocity: A practice by which governments extend similar concessions to one another. Red Clause Letter of Credit: A letter of credit that allows the exporter to receive a percentage of the face value of the letter of credit in advance of shipment. This enables the exporter to purchase inventory and pay other costs associated with producing and preparing the export order. REFG.: Refrigerating; Refrigeration Regs.: Registered Tonnage Retaliation: Action taken by a country to restrain its imports from another country that has increased a tariff or imposed other measures that adversely affects the firsts country's exports. RORO (ROLL ON-ROLL OFF) : Direct drive on/drive off wheeled vehicles on specially-designed ocean-going vessels. Route: an established air passage, from point of departure to terminating station. Royalty: a charge on charter flights levied by some governments before traffic rights are granted. Sometimes called a "no objection fee." Usually a fixed proportion of a total charter value.
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Salvage: Rescue of goods from loss at sea or by fire; also, goods so saved, or payment made or due for their rescue. Sanitary and Health Certificate: A statement signed by a health organization official certifying the degree of purity, cleanliness, or spoilage of goods, and the health of live animals. Schedule B: Refers to "Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States." Being replaced under the Harmonized System. Scheduled Flight: Any service that operates to a set timetable. SCR: Specified Commodity Rate. Applied to narrowly specified commodities. Usually granted on relatively large shipments. Theoretically is of limited time duration. Sector: Distance between two ground points within a route. Self-Sustaining: Vessel has its own cranes and equipment mounted on board for loading/unloading. Used in ports where shore cranes and equipment are lacking. Service: The defined, regular pattern of calls made by a carrier in the pick-up and discharge of cargo. Service Contract: A contract between a shipper and an ocean carrier of conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period. Set Up: Articles in their assembled condition. S. & F.A.: Shipping and forwarding agent. Shipment: Freight tendered to a carrier by one consignor at one piece at one time for delivery to one consignee at one place on one bill of lading. Shipper: Term used to describe exporter. Mostly manufacturing companies. Shipper's Export Declaration: A form required by the Treasury Department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as Schedule B identification number.
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Ship's Manifest: An instrument in writing containing a list of the shipments comprising the cargo of the vessel. Ship's Tackle: All rigging, etc., utilized on a ship to load or discharge cargo. Short-Shipped: Cargo manifested but not loaded. Single Entry Charter: A non-scheduled flight carrying the cargo of one shipper. Sight Draft: A draft payable upon presentation to the drawee. Compare date draft and time draft. S.I.T.: Stopped in Transit Site: A particular platform or location for loading or unloading at a place. S.L. & C. : Shipper's Load and Count S.L. & T.: Shipper's Load and Tally S/N: Shipping Note S.O.L.: Ship Owner'Liability Split Charter: Where a number of consignments from different shippers are carried on the same non-scheduled aircraft. Under U.K. regulations a nonscheduled flight chartered by a single forwarder or agent on behalf of a number of shippers is still classified as a split charter. Under U.S. regulations, a forwarder chartered flight is classified as a single entity although it can consolidate. S.R: Shipping Receipt S.R. & C.C.: Strikes, riots, and civil commotions. SS: Steamship; steam powered ship (Steam driven turbines) Standard International Trade Classification (SITC) : A standard numerical code system developed by the United Nations to classify commodities used in international trade. S.tn.: Short ton Steamship Agent: A duly appointed and authorized representative in a specified

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territory acting in behalf of a steamship line or lines and attending to all matters relating to the vessels owned by his principals. Steamship Line: Company is usually composed of the following departments; vessel operations, container operations, tariff department, booking, outbound rates, inward rates and sales. the company can maintain its own in country U.S. offices to handle regional sales, operations and/or other matters or appoint steamship agents to represent them doing same. Some lines have liner offices in several regions and have appointed agents in others. Stowage: The lacing of cargo in a vessel in such a manner as to provide the utmost safety and efficiency for the ship and the goods it carries. Strikes, Riots, and Civil Commotions: An insurance clause referring to loss or damage directly caused by strikers, locked-out workmen, persons participation in labor disturbances, and riots of various kinds. The ordinary marine insurance policy does not cover this risk; coverage against it can be added only by endorsement. Subsidy: An economic benefit granted by a government to producers of goods or services, often to strengthen their competitive position. Sue & Labor Clause: A provision in marine insurance obligating the assured to do things necessary after a loss to prevent further loss and to act in the best interests of the insurer. Surety Bond: A bond insuring against loss or damage or for the completion of obligations. Surety Company: An insurance company S.W.: Shipper's weights Tally Sheet: List of cargo, incoming and outgoing, checked by Tally clerk on dock. Tare Weight: The weight of the container and/or packing materials only excluding the weight of the goods inside the container. Tariff: A general term for any listing of rates, charges, etc. the tariffs most
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frequently encountered in foreign trade are: tariffs of the international transportation companies operating on sea, on land, and in the air; tariffs of the international cable, radio, and telephone companies; and the customs tariffs of the various countries, which list goods that are duty free and those subject to import duty, giving the rate of duty in each case. There are various classes of customs duties. T.B.L.: Through bill of lading Temperature Controlled Cargo: Any cargo requiring carriage under controlled temperature. TEU: Twenty foot equivalent. Third Freedom Right: Where cargo is carried by an airline, from the country in which it is based, to a foreign country. T.I.B.: Temporary Import Entry. Time Draft: A draft that matures in a certain number of days, either from acceptance or date of the draft. Title, Passing: The passing of title to exported goods is determined in large measure by the selling terms. For example, if an exporter sells goods c.i.f he may be presumed to pass ownership and tender of documents. However, he may ship on a bill of lading drawn to his own order, to prevent the buyer from gaining possession of the goods until the draft is paid or accepted. In this case he retains a security title to the goods; that is, a title for security purposes only, until the financial arrangement is carried out. Caution: depending on the laws of the buyer's country, you may not be able to force passage of title without payment having been received or the buyer having accepted delivery of the goods or a clear understanding by the buyer being understood and accepted. TL: Truckload Ton: Freight rates for liner cargo generally are quoted on the basis of a certain rate per ton, depending on the nature of the commodity. This ton, however, may be weight ton or a measurement ton.
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Ton-Deadweight: Indicates the carrying capacity of the ship in terms of the weight in tons of the cargo, fuel, provisions and passengers which a vessel can carry. Ton-Displacement: The weight of the volume of water which the fully loaded ship displaces. Ton-Kilometer: Measure of airline freight capacity. Ton-Registered: Indicates the cubical contents or burden of a vessel in tons of 100 cubic feet. The space within a vessel in units of 100 cubic feet. Tracking: A carrier's system of recording movement intervals of shipments from origin to destination. Trade: A term used to define a geographic area or specific route served by carriers. Traffic Conferences: Rate-fixing machinery operated by IATA. Tramp: A tramp is a vessel that does not operate along a definite route on a fixed schedule, but calls at any port where cargo is available. Transferable Letter of Credit: A letter of credit that allows all or a portion of the proceeds to be transferred from the original beneficiary to one or more additional beneficiaries. Transshipment: The transfer of a shipment from one carrier to another in international trade, most frequently from one ship to another. In as much as the unloading and reloading of delicate merchandise is likely to cause damage, transshipments are avoided whenever possible. Transport Index: The number expressing the maximum radiation level in a package of ULD. Truckload: Truckload rates apply where the tariff shows a truckload minimum weight. Charges will be at the truckload minimum weight unless weight is higher. Trust Receipt: Release of merchandise by a bank to a buyer for manufacturing or sales purposes in which the bank retains title to the merchandise.
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Turnkey Project: Capital construction projects in which the supplier (contractor) designs and builds the physical plant, trains the local personnel on how to manage and operate the facility and presents the buyer with a self-sustaining project (all the buyer has to do is "turn the Key"). UKACC: United Kingdom Air Cargo Club. ULD: Unit Load Device. Pallet or Container for freight. Unclean Bill of Lading: A bill containing reservations as to the good order and condition of the goods, or the packaging, or both. Examples: "bags torn;" "drums leaking;" "one case damaged;" "rolls chafed." Unitisation: The packing of single or multiple consignments into ULDs or pallets. Universal Postal Union: Organization which negotiates international mail charges. VAT (Value-Added Tax): A sales or consumption tax which the end user pays. Typically, this is a "hidden" tax, added to the list price of the goods in question. Valuation Charges: Transportation charges assessed shippers who declare a value of goods higher than value of carrier's' limits of liability. Ves.: Vessel Visa: An invoice properly validated by the Minister of Trade in regard to quota entries. Volume Weight: Used when calculating air freight when the size of the carton is greater than the average weight, calculated by multiplying the length times the width times the height and dividing by 166. W.A.: With Average Warehouse Receipt: A receipt of commodities deposited in a warehouse, identifying the commodities deposited. It is non-negotiable if permitting delivery only to a specified person or firm, but it is negotiable if made out to the order of a person or firm or to a bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the
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property covered by the receipt serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking. Warehouse-to-Warehouse: A clause in marine insurance policy whereby the underwriter agrees to cover the goods while in transit between the initial point of shipment and the point of destination, with certain limitations, and also subject to the law of insurable interest. When it was first introduced, the warehousetowarehouse clause was extremely important, but now its importance is diminished by the marine extension clauses, which override its provisions. War Risk: The possible aggressive actions against a ship and its cargo by a belligerent government. This risk can be insured by a marine policy with a risk clause. War Risk Insurance: Insurance issued by marine underwriters against war-like operations specifically described in the policy. In former times, war risk insurance was taken out only in times of war, but currently many exporter cover most of their shipments with war risk insurance as a protection against losses from derelict torpedoes and floating mines placed during former wars, and also as a safeguard against unforeseen warlike developments. In the United states, war risk insurance is written in a separate policy from the ordinary marine insurance; it is desirable to take out both policies with the same underwriter in order to avoid the ill effects of a possible dispute between underwriters as to the cause (marine peril or war peril) of a given loss. Weight: Gross - The weight of the goods including packing, wrappers, or containers, internal and external. The total weight as shipped. Net - The weight of the goods themselves without the inclusion of any wrapper. Tare - The weight of the packaging or container. Weight/Measurement Ton - In many cases, a rate is shown per weight/measurement ton, carrier's option. This means that the rate will be
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assessed on either a weight ton or measurement ton basis, whichever will yield the carrier the greater revenue. As example, the rate may be quoted on the basis of 2,240 pounds or 40 cubic feet or of 1 metric ton or 1 cubic meter. Weight Ton - There are three types of weight ton; the short ton, weighing 2,000 pounds; the long ton, weighing 2,240 pounds; and the metric ton weight 2,204.68 pounds. The last is frequently quoted for cargo being exported from Europe. Weight, Legal: Net weight of goods, plus inside packing. Weight Load Factor: Payload achieved as against available, expressed as a percentage. Cargo is frequently limited by volume rather than weight; load factors of 100% are rarely achieved. Wet Lease: An arrangement for renting an aircraft under which the owner provides crews, ground support equipment, fuel and so on (of dry lease). w.g.: Weight guaranteed Wharfage: A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock. W. & I.: Weighing and Inspection With Average: A marine insurance term meaning that shipment is protected for partial damage whenever the damage exceeds a stated percentage. Without Reserve: A term indicating shipper's agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented. See advisory capacity. With Particular Average (W.P.A.) : An insurance term meaning that partial loss or damage of goods is insured. Generally must be caused by sea water. Many have a minimum percentage of damage before payment. May be extended to cover loss by theft, pilferage, delivery, leakage, and breakage. W/M: Weight and/or measurement W.P.A.: With Particular Average
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W/R: Warehouse receipt W.R.: War Risk X Heavy: Extra Heavy X Strong: Extra strong XX Heavy: Double extra heavy XX Strong: Double extra strong Y/A: York-Antwerp Rules - A code of rules adopted by an international convention in 1890, amended in 1924 and again in 1950, for the purpose of establishing a uniform basis for adjusting general average. Certain nationalities decline to observe certain of the rules adopted. United States shipping interests generally abide by general rule "F" and numbered rules 1 to 15 and 17 to 22, inclusive and specifically set this forth in a Bill Of Lading Clause. Yield: Revenue, not necessarily profitable, per unit of traffic.

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