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Freight Dictionary

Words frequently used by a freight forwarders, Liners and shipping cummunities.

What is AMS?

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

 

Why 24 hour advance filing ?

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

10+2 IMPORTER SECURITY FILING ISF PROGRAM ( ISF)

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

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

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

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

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

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

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

C.A.F. (Currency Adjustment Factor)
Additional charge on ocean freight, expressed as a percentage of a base rate, which reflects adjustments to costs based on foreign currency exchange rates.

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

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

GSP (Generalized System of Preferences) 

The Generalized System of Preferences, or GSP, is a formal system of exemption from the more general rules of the World Trade Organization (WTO), (formerly, the General Agreement on Tariffs and Trade or GATT). Specifically, its a system of exemption from the most favored nation principle (MFN) that obligates WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their most favored trading partner. In essence, MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them, etc.

GSP form A, which is often called the GSP Form A, is a certificate of origin. It is used under the GSP program for exportations to the donor countries from the beneficiary countries.

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

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

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

Clean Bill of Lading
A receipt for goods issued by a carrier with an indication that the goods were received in apparent good order and condition without damage or other irregularities.

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

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

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

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

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

Container
A truck trailer body that can be detached from the chassis for loading into a vessel or a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, high cube, bulk liquid, or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length; 80 or 86 in width; and 86 or 96 in height.

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

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

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

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

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

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

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

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

LCL (Less than Container Load)
The quantity of freight less than that required for the application of a container load rate. Loose Freight.

LTL (Less than truckload)
This term typically refers to shipments of 150 – 10,000 pounds, not requiring the full use of a trailor.

Net Weight (Actual Net Weight)
Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the cans weight.

N.M.F.C. (National Motor Freight Classification)
A listing of items used to determine the class of a particular item shipped. The class of the item along with the weight and distance traveled, is a determinator of the freight charge.

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

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

Pallet
A flat metal or wood bottom for cargo.

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

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

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

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

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

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