Terms:

 

AES
Automated Export System
Agent
An independent person or corporation acting as a representative, usually in a foreign market, who attempts to sell products for an overseas seller(principal) and earns a commission on successful sales. Agents are not normally involved in delivery or servicing of product.
Air Waybill(AWB)
The document which covers transport by air. It is issued by the carrier, whether an airline or a freight forwarder, as a non-negotiable document serving as a receipt to the consignor for the goods, and containing the conditions of transport. It also shows the details of the consignee so that they can be contacted on arrival of the goods.
•  HAWB
º   House AWB issued by a freight forwarder acting as a carrier.
•  MAWB
º   The terms used for the AWB issued on airline's stationery to a freight forwarder for all of the goods covered by one or more House AWBs on the one flight going from one loading airport to one destination airport
AN
Arrival Notice
BAF
Bunker Adjustment Factor - an adjustment to shipping companies' freight rates to take into account fluctuations in the cost of fuel oil(bunkers) for their ships.
Bank Guarantee
A document issued by a bank acting as a guarantor for their customer. The bank's guarantee is accepted because of their status and creditworthiness compared to that of their customer. Often used in conjunction with major projects, in the form of Bid Bonds, Performance Bonds, and Warranty Bonds commonly for 10% of the contract value, all of which provide the buyer with a measure of comfort should the seller not fulfill his obligation at various stages of the contract.
Beneficiary
The seller in whose favor a L/C is issued, ie the person who will "benefit" from the L/C.
Bill of Exchange
An unconditional order in writing, issued by the seller(drawer) instructing the buyer(drawee) to pay the seller's bank(payee) a specified amount(normally the full invoice value) on demand(at sight) or at a fixed or determinable future time. A suitable form can be obtained from the seller's bank, or drawn up on a blank sheet of paper.
Bill of Lading (B/L)
•  Clean B/L
º   A bill of lading indicating that the goods were received by the carrier in good order and condition, without any clauses declaring a defective condition in the goods and/or their packing.
•  House B/L
º   A bill of lading issued by a freight forwarder acting as a carrier. The terms and conditions of the contract may well be different to the terms and conditions contained on the shipping company's B/L, which can in extraordinary circumstances lead to legal complications should a dispute arise.
•  Master B/L
º   The term used for the B/L issued by a shipping company to a freight forwarder for all of the goods covered by one or more House B/Ls on the one ship going from one loading port to one destination port.
•  Ocean B/L
º   A B/L covering port-to-port shipment. Typically banks continue to use this term on L/Cs even though the majority of international shipments are containerized.
•  Straight B/L
º   A non-negotiable B/L in which the goods are consigned directly to a named consignee.
CBM
Cubic squared meters
Certificate of Origin
A certificate stating the country of origin of the goods. Depending on the importing country's requirements, this can be as simple as being issued by the seller or the manufacturer. In most cases however, it is required to be issued by a Chamber of Commerce in the country of origin.
CFR - Cost and Freight(named port of destination) - Incoterms
The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The seller is responsible to clear the goods for export. This term very specifically requires the carriage of the goods in a "seagoing vessel".
CIF - Cost, Insurance and Freight(named port of destination) - Incoterms
This term is similar to CFR but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods. This term very specifically requires the carriage of the goods in a "seagoing vessel".
CIP - Cost and Insurance Paid to(named place of destination) - Incoterms
This term is similar to CPT but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods covering that period until the goods have been delivered from the carrier to the buyer. Being based on FCA, this term may be used for any mode of transport.
CFS
Container Freight Station - place or depot where individual LCL cargo is loaded into, and unloaded from, containers
Commercial Invoice
A document issued by the seller, addressed to the buyer, giving details of the individual transaction, including a complete description of the goods, prices, currency, delivery, payment, terms and so on. This is generally used by the Customs authorities in the importing country to assess customs duties payable.
Consignee
The party shown on the bill of lading or air waybill to whom the shipment is consigned. Need not always be the buyer, and in some countries will be the buyer's bank.
Consolidation
Where a freight forwarder groups, or consolidates, one or more shipment for one or more shippers to the one destination as one overall shipment.
CPT - Carriage Paid To(named place of destination) - Incoterms
The seller must pay the costs and freight necessary to bring the goods to the named destination but the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. Being based on FCA, this term may be used for any mode of transport.
Customs Broker
A person or corporation licensed by the United States of America to handle on behalf of importers and exporters the process of clearing goods through customs.
Customs Duty
A tax, duty or tariff levied at the time of import upon goods entering a country. Usually based on the value of the goods, on the physical nature of the goods such as quantity or weight, or on a combination of the value and other factors.
CY
Container Yard - place or depot where individual containers are held prior to loading on board a ship and after unloading from the ship. Can be inland or at the dock-side.
DAF - Delivered At Frontier(named place) - Incoterms
The seller must pay the costs and freight to bring the goods to a land frontier, but before the customs border of the adjoining country. This term is for land transport only.
DAP - Delivered At Place - Incoterms
New Term - May be used for all transport modes. Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If the seller is responsible for clearing the goods, paying duties, etc. consideration should be given to using the DDP term. Responsibilities Seller bears the responsibility and risks to deliver the goods to the named place Seller is advised to obtain contracts of carriage that match the contract of sale Seller is required to clear the goods for export If the seller incurs unloading costs at place of destination, unless previously agreed they are not entitled to recover any such costs Importer is responsible for effecting customs clearance, and paying any customs duties.
DAT - Delivered At Terminal - Incoterms
New Term - May be used for all transport modes. The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. "Terminal" includes quay, warehouse, container yard or road, rail or air terminal. Both parties should agree the terminal and if possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another point, DAP or DDP may apply. Responsibilities Seller is responsible for the costs and risks to bring the goods to point specified in the contract Seller should ensure that their forwarding contract mirrors the contract for sale Seller is responsible for the export clearance procedures Importer is responsible to clear the goods for import, arrange import customs formalities, and pay import duty If the parties intend the seller to bear the risks and costs of taking the goods from the terminal to another place then the DAP term may apply.
DDP - Delivered Duty Paid(named place of destination) - Incoterms
The seller fulfills his obligation to deliver when the goods have been made available at an agreed point at the named place in the country of importation, often the buyer's premises: The seller has to bear the risks and all costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. This term should not be used if the seller is unable directly or indirectly to obtain any necessary import license or approval. This term may be used for all modes of transportation.
DDU - Delivered Duty Unpaid(named place of destination) - Incoterms
The seller fulfills his obligation to deliver when the goods have been made available at an agreed point at the named place in the country of importation. The seller has to bear the risks and all costs and other charges of delivering the goods thereto, but not including duties and taxes. The buyer is responsible for customs clearance, and if he fails to do this, he is responsible for the consequences. This term may be used for all modes of transportation.
Demurrage
Extra charges paid to a carrier when loading and/or unloading has not been completed within the specified time.
DEQ - Delivered ex Ship(named port of destination) - Incoterms
Similar to DES but the seller must also arrange discharge onto the quay or wharf.
DES - Delivered ex Ship(named port of destination) - Incoterms
The seller makes the goods available to the buyer on board the ship at the destination port, and is responsible for all costs and risks until that point, as well as arrival within the given period. Typically this term would be used for bulk cargo on a chartered ship.
Dumping
The practice of selling goods in a foreign market at a price lower than which they would be sold at in the home market, to gain a competitive advantage over other suppliers. If this is shown to be injurious to locally-based suppliers in the foreign market, the government of that country may impose remedies by way of anti-dumping duties.
DLV
Delivery/Delivered
ETA
Estimated time of arrival
ETD
Estimated time of departure
Export
To send goods from your current country to another country.
EXW Ex Works(named place) - Incoterms
The seller's only responsibility is to make the goods available at his premises, (ie works or factory). The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination and the busy must be able to carry out any required export formalities. The term represents the minimum obligation for the seller.
FCA - Free Carrier(named place) - Incoterms
The Seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of a carrier, or another person, named by the buyer at the named place or point. This term may be used for any mode of transport, including multi-modal transport.
FAK
Freight All Kinds, as a general description of the goods on a master B/L covered under the one freight rate regardless of the nature of the individual goods.
FAS - Free Alongside Ship(named port of shipment) - Incoterms
The seller fulfills his obligation to deliver when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The seller is responsible to clear the goods for export. This term can only be used for sea or inland waterway transport and its correct use is only when using a chartered ship, or when goods are not containerized.
FCL
Full Container Load, generally but not always indicating that goods in the container are from one seller who packed the container, going to one buyer who will unpack the container.
FOB - Free On Board (named port of shipment) - Incoterms
The seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The seller is responsible to clear the goods for export. This term can only be used for sea or inland waterway trade. Its correct use now is only where the ship's rail is relevant to the transaction, such as when using a chartered ship, or when goods are not containerized. Obviously it cannot apply to airfreight.
FI (Free In)
In the international ocean freight terminology the word "Free" means "not included" IE if FI, then the shipper is responsible for the coast of loading goods onto a vessel for the international shipping overseas.
FO (Free Out)
FO is the international shipping term in ocean freight that indicates that the consignee(recipient) is responsible for the cost of unloading cargo from the vessel at the destination.
FIO (Free In and Out)
The international shipping term in ocean freight industry means that the carrier is NOT responsible for the cost of loading and unloading goods onto/from the vessel.
FIS - Free Into Store - Incoterms
An unofficial trade term indicating that the seller's price includes all costs up to delivery to the buyer. This is similar in effect to DDP.
Freight Forwarder
A person or corporation who arranges transport of good on behalf of either the seller or buyer. In many cases the freight forwarder will also consolidate several small shipments into one larger one to take advantage of better freight rates. In most cases the freight forwarder will assume the legal liabilities of acting as a carrier.
Gross Weight
The total weight of a shipment of goods, including their packaging such as crates, pallets, etc.
Hazardous Goods (Also known as DG - Dangerous Goods)
Certain cargoes, as prescribed by the UN, such as explosive, radioactive, poisonous and flammable goods etc, which must be declared to the carrier before being loaded onto ships or aircraft. The penalties for not declaring or failing to declare hazardous or dangerous cargo are extremely high.
HMF
Harbor Maintenance Fee
HTSUS
Harmonized tariff schedules of the United States
Incoterms 2010
A set of rules for the interpretation of the most commonly used trade terms in foreign trade, recognized throughout the world, issued by the International Chamber of Commerce. Incoterms 2010 also addresses duties to provide information regarding security-related clearances, such as Importer Security Filings and other chain-of-custody information.
INV
Invoice
Import
To bring goods in to your country from another country.
Insurance(Cargo Insurance)
A process whereby someone with a risk of something happening to their financial detriment(the assured) pays someone else(an underwriter) a fee(premium) to bear that risk on their behalf.
Insurance Certificate
A certificate issued by the insurance underwriter giving details of a particular transaction which is held insured under an insurance policy.
ISF
Import Security Filing
Landed Cost
The total cost which an importer pays to have good delivered into their premises. This typically includes the costs of the goods, international transport, insurance premium, port charges, customs duties, delivery charges, bank charges etc.
LCL
Less than Container Load, a small amount of cargo insufficient to on its own be economically shipped as FCL. It will be combined with other LCL cargo from other shippers going to the same destination port, into an FAK FCL. See also Consolidation
Letter of Credit
A conditional order in writing, issued by a buyer's bank, guaranteeing to pay the seller upon presentation of stipulated documents, strictly in accordance with the credit. It is strongly recommended that every exporter and importer has a copy of the "Uniform Customs and Practice for Documentary Credits", International Chamber of Commerce publication 500. These are available from most major Chambers of Commerce.
Letter of Credit - Confirmed
A letter of credit which had been further guaranteed by a local bank generally in the exporter's country.
Letter of Credit - Irrevocable
A credit which cannot be revoked, canceled, or amended unless the beneficiary agrees. Virtually all L/Cs issued under UCP500.
Letter of Credit - Discrepancy
Where a document does not comply strictly with the terms and conditions of the L/C.
Letter of Credit - Under Reserve
Where documents with discrepancy/ies are nevertheless negotiated against a L/C, and the negotiating bank reserves the right to take back the funds from the exporter/importer if the discrepancy is not acceptable to either the buyer or the L/C issuing bank.
LFD
Last free day
Liner Terms
Freight rates which include loading/unloading charges, generally with regular shipping lines.
Manifest
A list of the various shipments being carried on a ship or aircraft.
MPF
Merchandise Processing Fee
Net Weight
The weight, or mass, of the goods themselves without any packaging.
Notify Party
The person or company to be advised by the carrier upon arrival of the goods at the destination port.
Packing List
A document which details the contents, and often dimensions and weight, of either package or container.
PL
Packing list
PO
Purchase order
Pre-Payment
The buyer pays the seller for the goods prior to shipment.
Pro Forma Invoice
A sample invoice issued by the exporter before shipment, which the importer may require to arrange import approvals or apply for a letter of credit. It can also be used as an offer to sell goods.
PSDO
Port Security
P/U
Pick up number
RLF
Remote Location Filing
RO-RO
A "roll-on/roll-off" ship, where loaded transport vehicles are driven onto it, such as a car ferry, or where containerized and other cargo is loaded into it by forklifts or similar.
SCAC
Standard carrier alpha code
Tare
The weight of packaging or a container without the goods.
Tenor
The period of time before a bill of exchange falls due for payment.
Term Draft
A bill of exchange drawn for a period other than at sight or on demand.
THC
Terminal handling charge, levied by CY and CFS operators for goods passing through their operations.
Transhipment
Goods are transferred from one ship to another at an intermediate port. Can also refer to goods being transferred from one method of transport to another.
UCP500
Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce publication 500, which lays out guidelines for banks to follow when dealing with L/Cs.
URC522
Uniform Rules for Collections, International Chamber of Commerce publication 522, which lays out guidelines for banks to follow when handling Collections.
Value for Duty
The value of an import declared to the customs upon which customs will be calculated.

Contact MME Global Lines for more information or to book your shipment.