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General Trading Terms
Insurance and Credit Terms
Transport/Logistics Terms
Customs Terms
Payment Terms
Incoterms


GENERAL TRADING TERMS

AITA
International Air Transport Association, IATA, (French, German).

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

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.

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.

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.

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.

CAA
Is the Civil Aviation Authority. Government body responsible for regulating U.K. airlines.

Cargo
Is merchandise/commodities/freight carried by means of transportation.

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.

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.

C.I.T.E.S.
Committee on International Trade of Endangered Species.

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.

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.

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.

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. 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.

Countertrade
Is a reciprocal trading arrangement, which includes a variety of transactions involving two or more parties.

Credit Risk Insurance
Insurance designed to cover risks of nonpayment for delivered goods.

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.

Cargo
Is cargo carried on deck rather than stowed under deck. On deck carriage is required for certain commodities, such as explosives

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.

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.

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).

Export Broker
The individual who brings together buyer and seller for a fee, eventually withdrawing from any transaction.

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.

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

IFF
Institute of Freight Forwarders.

Intellectual Property
Ownership of the legal rights to possess, use or dispose of products created by human ingenuity, including patents, trademarks and copyrights.

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.

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.

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.

Original Equipment Manufacturers (OEM accounts)
Customers who incorporate the exporter's product into their own merchandise for resale under their own brand names.

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.

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.

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.

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.

Subsidy
An economic benefit granted by a government to producers of goods or services, often to strengthen their competitive position.

Tariff
A general term for any listing of rates, charges, etc. the tariffs most 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

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.

UKACC
United Kingdom Air Cargo Club


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INSURANCE AND CREDIT TERMS

Ad Valorem ("according to the value")
A fixed percentage of the value of goods that is used to calculate customs duties and taxes.

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)

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.

A.T.
American Terms (Marine Insurance) A term used to differentiate between the conditions of American Policies from those of other nations, principally England.

C & I
Is a quoted price includes cost of goods and insurance.

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.

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.

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.

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.

Credit Risk Insurance
Insurance designed to cover risks of nonpayment for delivered goods.

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.

Cargo
Is cargo carried on deck rather than stowed under deck. On deck carriage is required for certain commodities, such as explosives

DGR
Dangerous Goods Requirement.

f.c.s.r.c.c.
Free of capture, seizure, riots and civil commotions.

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.

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 an event 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 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.

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.

I.p.a.
Including particular average Incoterms: A codification of terms used in foreign trade contracts that is maintained by the International Chamber of Commerce.

L. & D.
Loss and damage Livestock: Common farm animals.

Lkg. & Bkg.
Leakage and breakage.

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.

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.

O/R
Owner's risk

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

P.A.
Particular average 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).

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 cover against pilferage, and when this coverage is desired, it must be added to the policy.

r. & c.c.
Riots and civil commotions

r.c.c. & s.
Riots, civil commotions and strikes Salvage: Rescue of goods from loss at sea or by fire; also, goods so saved, or payment made or due for their rescue.

S.R. & C.C.
Strikes, riots, and civil commotions.

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.

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 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.

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 warehouse-to-warehouse 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.

With Average
A marine insurance term meaning that shipment is protected for partial damage whenever the damage exceeds a stated percentage.

Particular Average (W.P.A.)
n 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.P.A.
With Particular Average

W.R.
War Risk


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TRANSPORT/LOGISTICS 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.

Ad Valorem ("according to the value")
A fixed percentage of the value of goods that is used to calculate customs duties and taxes.

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.

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 specialises in air cargo and acts for airlines that pay him a fee (usually 5%). He is registered with the International 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 specialises 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).

Alongside
A phrase referring to the side of a ship. Goods to be delivered "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.

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 on-line 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

B/B
(See Break-Bulk Cargo)

Belly Cargo
Freight accommodation below the main deck.

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.

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 Harmonised 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.

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.

 

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CUSTOMS 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.

Ad Valorem ("according to the value")
A fixed percentage of the value of goods that is used to calculate customs duties and taxes.

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 on-line 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 centre computers

Bonded Warehouse
A warehouse storage area or manufacturing facility in which imported goods may be stored or processed without payment of customs duties.

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 Harmonised Tariff Schedule.

C.C.E.F.
Is a Customs Centralised 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

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.

Collective Paper
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

Commodity Specialist
An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods.

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.

Countervailing Duties
Is a special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.

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.

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.

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.

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: 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); 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 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.

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.

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 area
is used when countries wish to bring together their economies but not to integrate them or turn them into a single economy. Some free trade areas include the European Economic Area (EEA) and European Free Trade Association (EFTA), and the North American Free Trade Agreement (NAFTA) between the USA, Canada and Mexico, Mercosur in Latin America and Caricom in the Caribbean.

Free Trade Zone
A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, within the zone and re-exported without duties being 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.

GATT
General Agreement on Tariffs and Trade, a multilateral treaty intended to help reduce trade barriers and promote tariff concessions.

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.

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.

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.

Inspection Certificate
A document certifying that merchandise (such as perishable goods) was in goods condition immediately prior to shipment.

Liquidation
The finalization of a customs entry.

MFN (Most Favored Nation)
Designation for countries which receive preferential tariff rates. This is no longer the best tariff structure available.

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.

Non-Tariff Barriers (NTB)
Economic, political, administrative or legal impediments to trade other than duties, taxes and import quotas

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 with Savannah, a seaport. Tested in '87-'88, it became generally available in mid- '88.

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.

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.

Power of Attorney
A document that authorizes a customs broker to sign all customs documents on behalf of an importer.

Protest
Customs form 19 allows for a refund of an overpayment of duty if filed within 90 days of liquidation.

Reciprocity
A practice by which governments extend similar concessions to one another.

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.

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.

Standard International Trade Classification (SITC)
A standard numerical code system developed by the United Nations to classify commodities used in international trade.

Tariff
A general term for any listing of rates, charges, etc. the tariffs most 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

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.

Visa
An invoice properly validated by the Minister of Trade in regard to quota entries.


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PAYMENT TERMS

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.

Ad Valorem ("according to the value")
A fixed percentage of the value of goods that is used to calculate customs duties and taxes.

Advance Against Documents
Loan 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.

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.

Balance of Trade
The difference between a country's total imports and exports; if exports exceed imports, favourable balance of trade exists, if not, a trade deficit is said to exist.

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.

Beneficiary
A firm or person on whom a letter of credit has been drawn. The beneficiary is usually the seller or exporter.

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.

Cargo
Is merchandise/commodities/freight carried by means of transportation.

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.

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.

CIA
The acronym meaning "cash in advance," a method of payment for goods whereby buyer pays seller in advance of shipment of goods.

Clean Draft
Is a draft to which no documents have been attached

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.

Commercial Invoice
An itemized list of goods shipped, usually included among an exporter's collection papers.

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.

Correspondent Bank
A bank that, in its own country, handles the business of a foreign bank.

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.

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.

Payment Credit
Type of letter of credit providing for payment some time after presentation of shipping documents by exporter.

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.

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.

Drawee
The individual or firm on whom a draft is drawn and who owes the stated amount to the drawer.

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.

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.

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.

Letter of Credit - payment by sight draft
The exporter receives guaranteed payment from the confirming bank in the U.S. upon presentation of the sight draft and documents required by the letter of credit.

Open Account
A high-risk trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.

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.

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.

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.

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.

Sight Draft
A draft payable upon presentation to the drawee. Compare date draft and time draft.

Surety Bond
A bond insuring against loss or damage or for the completion of obligations.

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.

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.

 

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Incoterms  
EXW

EX WORKS (EXW)

Ex works means that the seller's only responsibility is to make the goods available at his premises (that is, works or factory). In particular, he is not responsible for loading the goods in a vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination. This term thus represents the minimum obligation for the seller.

Apply only at the point of origin, and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period. All other charges are payable by the buyer.

The seller (exporter) makes the goods available to the buyer (importer) at the seller's premises. The buyer is responsible for all transportation costs, duties, and insurance, and accepts risk of loss of goods immediately after the goods are purchased and placed outside the factory door. The ExWorks price does not include the price of loading goods onto a truck or vessel, and no allowance is made for clearing customs. If FOB is the Customs valuation basis of the goods in the country of destination, the transportation and insurance costs from the seller's premises to the port of export must be added to the ExWorks price.

 

FAS

FREE ALONGSIDE SHIP (FAS)

Under this term the seller's obligations are fulfilled when the goods have been placed alongside the ship on the quay or in lighters. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that moment. It should be noted that, unlike FOB, the present term requires the buyer to clear the goods for export.

The exporter quotes a price for the goods, including charges for delivery of the goods alongside a vessel at the port. The seller handles the cost of unloading and wharfage. Loading, ocean transportation, and insurance are left to the buyer.

The seller transports the goods from his place of business, clears the goods for export and places them alongside the vessel at the port of export, where the risk of loss shifts to the buyer. The buyer is responsible for loading the goods onto the vessel (unless specified otherwise) and for paying all costs involved in shipping the goods to the final destination.

 

FCA

FREE CARRIER (FCA)

This term meets the requirements of modern transport, particularly such "multimodal" transport as containers or RO/RO (roll on - roll off) traffic by trailers and ferries. It is based on the same principle as FOB except that the seller's obligations are fulfilled when the goods are delivered into the custody of the carrier at the named point. If no precise point can be mentioned at the time of the contract of sale, the parties should refer to the place or range where the carrier should take charge of the goods. The risk of loss or damage to the goods is transferred from seller to buyer at that time and not at the ship's rail. "Carrier" means any person by whom or in whose name a contract of carriage by road, rail, air, sea, or a combination of modes has to furnish a bill of landing, waybill or carrier's receipt, the obligation is duly fulfilled by presenting such a document issued by a person so defined.

Applies only at a designated inland shipping point. The seller is responsible for loading goods into the means of transportation; the buyer is responsible for all subsequent expenses. If a port of exportation is named, the costs of transporting the goods to the named port are also included in the price.

The seller (exporter) clears the goods for export and delivers them to the carrier and place specified by the buyer. If the place chosen is the seller’s place of business, the seller must load the goods onto the transport vehicle; otherwise, the buyer is responsible for loading the goods. Buyer assumes risk of loss from that point forward and must pay for all costs associated with transporting the goods to the final destination.

 

FOB

FREE ON BOARD (FOB)

Under this term, the goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss or damage to the goods is transferred to the buyer when the goods pass the ship's rail. For air shipments, goods delivered to the carrier at the airport fulfill seller's obligations, (For RO/RO and Seller shipments, see FCA.

The seller quotes a price covering all expenses up to and including delivery of goods onto an overseas vessel provided by or for the buyer.

The seller (exporter) is responsible for delivering the goods from his place of business and loading them onto the vessel of at the port of export as well as clearing customs in the country of export. As soon as the goods cross the “ships-rails” (the ship’s threshold) the risk of loss transfers to the buyer (importer). The buyer must pay for all transportation and insurance costs from that point, and must clear customs in the country of import. An FOB transaction will read “FOB, port of export”. For example, assuming the port of export is Boston, an FOB transaction would read “FOB Boston”. If CIF is the Customs valuation basis, international freight and insurance must be added to the FOB value.

 

FOB AIRPORT

FOB AIRPORT

This term is very similar to the FOB term. The seller fulfils his obligation by delivering the goods to the air carrier at the airport of departure. The risk of loss is transferred from the seller to the buyer at such time.

 

FOR or FOT

FREE ON RAIL (FOR) or FREE ON TRUCK (FOT)

"F.O.R." and "F.O.T." mean "free on rail" or "free on truck." Both refer to goods being carried by rail and should only be used when the goods are carried by rail. The risk of loss or damage is transferred when the goods are loaded onto the rail.

 

CFR or C&F

COST AND FREIGHT (CFR OR C&F)

This term requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility.

The seller quotes a price for the goods, including the cost of transportation to the named port of debarkation. The cost of insurance and the choice of insurer are left to the buyer

The seller (exporter) is responsible for clearing the goods for export, delivering the goods past the ships rail at the port of shipment and paying international freight charges. The buyer assumes risk of loss once the goods cross the ship’s rail, and must purchase insurance, unload the goods, clear customs, and pay for transport to deliver the goods to their final destination. If FOB is the Customs valuation basis, the international freight costs must be deducted from the CFR price.

 

CIP

FREIGHT CARRIAGE AND INSURANCE PAID TO (CIP)

The seller pays the freight for carriage of the goods to the named destination, and the cost for insurance against the risk of loss or damage to the goods during carriage. These risks, as well as any cost increases, are transferred to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. It can be used for all modes of transport including multimodal operations, container and RO/RO traffic by trailers and ferries. When the seller must furnish a bill of landing, waybill, or carrier's receipt, the obligation is fulfilled by presenting such document issued by the person with whom the contract for carriage to the named destination was made. Seller is only required to cover goods with minimum insurance. Seller also must clear goods for export. This applies to all modes.

The seller transports the goods to the port of export, clears Customs, and delivers them to the carrier. From that point risk of loss shifts to the buyer. Seller is responsible for carriage and insurance costs to the named place of destination. The buyer is responsible for all costs, and bears risk of loss from that point forward. If FOB is the Customs valuation basis, international freight and insurance costs need to be deducted from the CIP price.

 

CIF

COST, INSURANCE AND FREIGHT (CIF)

Basically the same as CFR, but with the addition that the seller must procure marine insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

The seller quotes a price including insurance, all transportation, and miscellaneous charges to the point of debarkation from the vessel or aircraft.

The seller (exporter) is responsible for delivering the goods onto the vessel of transport and clearing Customs in the country of export. He is also responsible for purchasing insurance, with the buyer (importer) named as the beneficiary. Risk of loss transfers to buyer as the goods cross the ship’s rail. If these goods are damaged or stolen during international transport, the buyer owns the goods and must file a claim based on insurance procured by the seller. The buyer must clear customs in the country of import and pay for all other transport and insurance in the country of import. CIF can be used as an Incoterm only when the international transport of goods is at least partially by water. If FOB is the Customs valuation basis, the international insurance and freight costs must be deducted from the CIF price. A CIF transaction will read CIF, port of destination. For example, assuming that goods are exported to the port of Los Angeles, a CIF transaction would read “CIF Los Angeles”.

 

CPT

CARRIAGE PAID TO ...(CPT)

Seller pays freight for carriage of goods to the named destination. Risk of loss or damage, plus any additional costs due to events occurring after goods are delivered to carrier, are transferred from seller to buyer. "Carrier" applies to all modes of transport. If subsequent carriers are used, risk passes when goods are delivered to first carrier. The CPT term requires seller to clear goods for export.

The seller (exporter) clears the goods for export, delivers them to the carrier and is responsible for carriage costs to the named place of destination. Risk of loss transfers to buyer once the goods are transferred to the carrier and the buyer must insure the goods from that time on. If FOB is the Customs valuation basis, the international freight cost must be deducted from the CPT price.

 

DAF

DELIVERED AT FRONTIER (DAF)

Seller fulfills delivery obligation when goods have been made available, cleared for export, at the named point and place, at the frontier, but before the customs border of the adjoining country, Primarily used for rail or road, but may be used for any mode.

The seller (exporter) is responsible for all costs involved in delivering the goods to the named point and place at the frontier. Risk of loss transfers at the frontier. The buyer must pay the costs and bear the risk of unloading the goods, clearing Customs, and transporting the goods to the final destination. If FOB is the Customs valuation basis, the international insurance and freight costs must be deducted from the DAF price.

 

DES

DELIVERED EX SHIP (DES)

Seller has goods available to the buyer aboard ship, uncleared for import at destination port. Seller pays costs and bears risks in bringing goods to destination port. Applies to sea or inland waterway transport.

The seller (exporter) is responsible for all costs involved in delivering the goods to a named port of destination. Upon arrival, the goods are made available to the buyer (importer) on-board the vessel. Therefore, the seller is responsible for all costs/risk of loss prior to unloading at the port of destination. The buyer (importer) must have the goods unloaded, pay duties, clear Customs and provide inland transportation & insurance to the final destination.

 

DEQ

DELIVERED EX QUAY (DEQ)

Seller has goods available to buyer on the quay (wharf) at destination port, cleared for import. Seller bears all risks and costs including duties, taxes, and other delivery charges. If buyer is to clear goods for import, and pay duty, "duty unpaid" is used instead of duty paid.

The seller (exporter) is responsible for all costs involved in transporting the goods to the wharf (quay) at the port of destination. The buyer must pay duties, clear Customs, and pay the cost/bear the risk of loss from that point forward. If FOB is the Customs valuation basis, the international insurance and freight costs, in addition to unloading costs, must be deducted from the DEQ price.

 

DDU

DELIVERED DUTY UNPAID (DDU)

Same as DEQ except seller bears costs and risks of goods thereto, excluding duties, taxes, and other official charges payable on import, as well as the costs and risks of carrying out customs formalities. Buyer also bears risks and costs caused by failure to clear goods for import in time.

Only the destination, customs duties and taxes are paid by the consignee (customer)

The seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination where the goods are placed at the disposal of the buyer. The buyer (importer) assumes risk of loss at that point and must clear Customs and pay duties and provide inland transportation & insurance to the final destination.

 

DDP

DELIVERED DUTY PAID (DDP)

Seller has goods available in country of import and bears all costs and risks including duties, taxes, and other charges related to delivery, cleared for import. While EXW represents minimum obligation for the seller, DDP represents the maximum obligation. If seller is unable to obtain import license, DDU term should be used.

The seller delivers the goods, with import duties paid, including inland transportation from import point to the buyer's premises.

The seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination and for clearing Customs in the country of import. Under a DDP Incoterm, the seller provides literally door-to-door delivery, including Customs clearance in the port of export and the port of destination. Thus the seller bears the entire risk of loss until goods are delivered to the buyer’s premises. A DDP transaction will read “DDP named place of destination”. For example, assuming goods imported through Baltimore are delivered to Silver Spring, the Incoterm would read “DDP, Silver Spring”. If CIF is the Customs valuation basis, the costs of unloading the vessel, clearing Customs, and delivery to the buyer’s premises in the country of destination including inland insurance, must be deducted to arrive at the CIF value.

 

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