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Cabotage
1. Water transportation, navigation or trade along the coasts, between the
ports of one nation.
2 Inland freight movements confined with the national boundaries of a
nation are also sometimes called cabotage.
ports of one nation.
2 Inland freight movements confined with the national boundaries of a
nation are also sometimes called cabotage.
Call
1. A demand for early repayment of an obligation, or for the performance of
a specific act under a contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for Call Option, a contract giving the holder the right to receive
from the issuer a specified amount of a security at a specified price on or
before a certain date.
5. Short for Margin Call - a call by a future or an options exchange, or by a
broker to its clients, for additional collateral to that previously posted when
the futures, options, or securities were purchased without posting their full
value.
a specific act under a contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for Call Option, a contract giving the holder the right to receive
from the issuer a specified amount of a security at a specified price on or
before a certain date.
5. Short for Margin Call - a call by a future or an options exchange, or by a
broker to its clients, for additional collateral to that previously posted when
the futures, options, or securities were purchased without posting their full
value.
Call Money
Money lent by banks on a short term basis which the bank, as lender, can
call (demand payment at any time, usually on 24 hours notice.)
call (demand payment at any time, usually on 24 hours notice.)
Capacity To Contract
Legal competency to make a contract.
Capital Goods
1. Durable goods which are used to produce other goods for
consumption: for example machinery, equipment, buildings
2. Also, material used or consumed to produce other goods.
consumption: for example machinery, equipment, buildings
2. Also, material used or consumed to produce other goods.
Capital Market
The market for long term investment funds in the form of stocks, bonds,
commercial paper etc.
commercial paper etc.
Captain's protest
A written sworn statement of the master of a vessel to the effect that
damage suffered by the ship during the voyage was caused by storm or
other peril of the sea, without any negligence or misconduct on his own
part.
damage suffered by the ship during the voyage was caused by storm or
other peril of the sea, without any negligence or misconduct on his own
part.
Cargo
Merchandise hauled by transportation lines.
Cargo Agent
An agent appointed by an airline or shipping line to solicit and process
international air and ocean freight shipments.
international air and ocean freight shipments.
Cargo Manifest
A list of cargo being transported or warehoused.
Cargo Selectivity System
(USA) An Automated Customs System module which is used to identify
high risk cargo and to apply more intensive examinations to it.
high risk cargo and to apply more intensive examinations to it.
Cargo Tonnage
The weight of a shipment or of ship's total cargo expressed in tons.
Carnet
Called an A T A Carnet. An international customs document which
incorporates guarantees to be used in lieu of Customs documents to
enter goods into certain countries temporarily without paying import duty
or posting bonds.
incorporates guarantees to be used in lieu of Customs documents to
enter goods into certain countries temporarily without paying import duty
or posting bonds.
Carriage Of Goods By Sea Act
Of 1936
Of 1936
(USA) The basic law of ocean shipping in the U.S. Among other
provisions, it establishes parameters for the carrier's liability for loss or
damage to cargo.
provisions, it establishes parameters for the carrier's liability for loss or
damage to cargo.
Carrier
A legal entity that is in the business of transporting passengers or goods
for hire.
for hire.
Carrier's Certificate
(USA) A document issued by a carrier providing the particulars of a
shipment and designating to customs who may make a customs entry on
that shipment..
shipment and designating to customs who may make a customs entry on
that shipment..
Cartel
A group of independent producers which regulates production, pricing,
and marketing by members to maximize market power and limit
competition.
and marketing by members to maximize market power and limit
competition.
Cash Against Documents
(CAD)
(CAD)
A term used in collections supported by shipping documents which are
released to the buyer only against payment. Same as Documents Against
Payment (D/P).
released to the buyer only against payment. Same as Documents Against
Payment (D/P).
Casus Major
An extraordinary casualty such as a fire, shipwreck etc.
Category Groups
A classification system which groups various products for statistical,
export control or quota control purposes.
export control or quota control purposes.
Caveat Emptor
Let the buyer beware, which is to say the purchaser buys at his own risk.
Cell
The space constructed on a ship into which one container fits.
Census Interface
(USA) An Automated Customs System module that captures trade data for
the U.S. Bureau of Census.
the U.S. Bureau of Census.
Central Bank
An institution with the sole right to issue bank notes and power to dictate
the monetary policy for a currency zone.
the monetary policy for a currency zone.
Certificate of Inspection
A certificate issued by an independent third party verifying the condition of
cargo or of property.
cargo or of property.
Certificate of Manufacture
1. A certificate sometimes required from a manufacturer to attest that
goods have been manufactured according to the contract; for example, to
support payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback based on
manufacture in the United States.
goods have been manufactured according to the contract; for example, to
support payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback based on
manufacture in the United States.
Certificate of Weight
A document certifying to the weight of a shipment.
Certification
1. Official proof of authenticity.
2. The formal assertion of some fact in writing.
2. The formal assertion of some fact in writing.
Cession of Goods
A surrender or assignment of goods for the benefit of one's creditors.
CFR (Cost and Freight
...named port of destination)
...named port of destination)
The seller must pay the costs and freight necessary to bring the goods to
the named port of destination but the risk of loss of or damage to the
goods, as well as any additional costs due to events occurring after the
time the goods have been delivered on board the vessel, is transferred
from the seller to the buyer when the goods pass the ship's rail in the port
of shipment. (Note: this Incoterm, CFR, has replaced the term C&F
which has been in common usage)
the named port of destination but the risk of loss of or damage to the
goods, as well as any additional costs due to events occurring after the
time the goods have been delivered on board the vessel, is transferred
from the seller to the buyer when the goods pass the ship's rail in the port
of shipment. (Note: this Incoterm, CFR, has replaced the term C&F
which has been in common usage)
Chargeable Weight
The weight or volume of a shipment used in determining freight charges.
Charter Service
Temporary hiring of an aircraft or vessel for the transportation of cargo or
passengers.
passengers.
Chartered Ship
A ship leased for a stated time, voyage, or voyages.
Chassis
1. A special trailer or undercarriage on which containers are moved over
the road.
2. The undercarriage of a vehicle.
the road.
2. The undercarriage of a vehicle.
CIF (Cost, Insurance and
Freight... named port of
destination)
Freight... named port of
destination)
The seller has the same obligations as under CFR but with the addition
that he has to procure marine insurance against the buyer's risk of loss of
or damage to the goods during the carriage. The seller pays the
insurance premium and is only required to obtain minimum coverage.
that he has to procure marine insurance against the buyer's risk of loss of
or damage to the goods during the carriage. The seller pays the
insurance premium and is only required to obtain minimum coverage.
CIP (Carriage and Insurance
Paid To...named place of
destination)
Paid To...named place of
destination)
The seller has the same obligations as under CPT but with the addition
that the seller has to procure cargo insurance against the buyer's risk of
loss of or damage to the goods during the carriage. The seller pays the
insurance premium and is only required to obtain minimum coverage.
that the seller has to procure cargo insurance against the buyer's risk of
loss of or damage to the goods during the carriage. The seller pays the
insurance premium and is only required to obtain minimum coverage.
Circa
Same as about and approx.; terms which when used in a letter of credit
are construed to allow a difference not to exceed 10% more or 10% less
than the monetary amount, or the quantity, or the unit price.
are construed to allow a difference not to exceed 10% more or 10% less
than the monetary amount, or the quantity, or the unit price.
City Terminal Service
A service provided by some airlines that involves receiving or delivering
cargo at terminals in-town instead of at airports.
cargo at terminals in-town instead of at airports.
Claim
1. A demand of payment.
2. In insurance, a demand for payment of money or property as the result of
an insured loss..
3. In transportation, a demand for return of overpaid charges. Also, a
demand for reimbursement of losses due to loss or casualty to cargo or
failure to deliver.
2. In insurance, a demand for payment of money or property as the result of
an insured loss..
3. In transportation, a demand for return of overpaid charges. Also, a
demand for reimbursement of losses due to loss or casualty to cargo or
failure to deliver.
Classification
The categorization of merchandise:
In transportation - to permit determination of freight rates within a tariff.
In customs - to permit the determination of duty status within the
Harmonized Tariff Schedules.
In transportation - to permit determination of freight rates within a tariff.
In customs - to permit the determination of duty status within the
Harmonized Tariff Schedules.
Claused Bill of Lading
A notation on a bill of lading which denotes a deficient condition of the
goods or packaging, or other annotated conditions modifying the printed
conditions on the Bill Of Lading.
goods or packaging, or other annotated conditions modifying the printed
conditions on the Bill Of Lading.
Clean Bill of Lading
A bill of lading issued by a carrier for goods delivered in apparent good
order and condition - bearing no notations or added clauses which may
limit the liability of the carrier.
order and condition - bearing no notations or added clauses which may
limit the liability of the carrier.
Clean Draft
A draft with no commercial documents attached.
Clearance
1. The completion of governmental requirements so that a carrier may
arrive in a port and unlade cargo and passengers, or may lade cargo and
passengers and depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to allow
goods to be imported or to be exported.
arrive in a port and unlade cargo and passengers, or may lade cargo and
passengers and depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to allow
goods to be imported or to be exported.
Closed-End Transaction
A credit transaction with a fixed amount of time for repayment.
Coastal Trade
Trade by vessel between the ports of one nation.
Collar
An agreement that puts upper and lower limits on the interest rate of a
financial instrument or on the price of something, and through this device
limits the possible amount of loss or gain from the rise or fall of interest or
price of the thing collared
financial instrument or on the price of something, and through this device
limits the possible amount of loss or gain from the rise or fall of interest or
price of the thing collared
Collect Charges
1. Transportation practice where the receiver of the goods pays the freight
and charges to the carrier.
2. Collection practice where the buyer is expected to pay the bank charges
for handling the collection.
and charges to the carrier.
2. Collection practice where the buyer is expected to pay the bank charges
for handling the collection.
Collect on Delivery (C.O.D.)
A service where the purchase price of a shipment is collected by the
carrier upon delivery of the shipment and subsequently paid to the shipper.
carrier upon delivery of the shipment and subsequently paid to the shipper.
Collecting Bank
A bank involved in the collection process. In this process if presentation is
made to the drawee, it becomes also the presenting bank.
made to the drawee, it becomes also the presenting bank.
Collection
1. The presentation for payment of an obligation and the payment thereof.
2. A gathering of similar goods.
2. A gathering of similar goods.
Collection Letter
Customer's written instructions to a bank on how to handle a collection.
Many banks have an instruction form for use instead of a letter.
Many banks have an instruction form for use instead of a letter.
Collection Papers
Drafts, invoices, printed lists, documents which relate to a shipment, and
other similar instruments presented to the designated buyer/ payee to
obtain payment or acceptance.
other similar instruments presented to the designated buyer/ payee to
obtain payment or acceptance.
Collection System
(USA) In U.S. Customs, it is the process that controls and accounts for
payments collected by the agency.
payments collected by the agency.
Combination Aircraft
An aircraft capable of transporting both cargo and passengers on the
same flight.
same flight.
Combined Bill of Lading
A bill of lading covering a shipment of goods by more than one mode of
transportation.
transportation.
Combined Transport
Consignment sent by means of various modes of transport.
Comity
1. In international relations it is the recognition that one sovereignty allows
within its territory to the legislative, executive or judicial acts of another
sovereignty, with due regard to the rights of its own citizens.
2. Courtesy, respect, and good will.
within its territory to the legislative, executive or judicial acts of another
sovereignty, with due regard to the rights of its own citizens.
2. Courtesy, respect, and good will.
Command Economy
An economic system where the decisions about allocation of resources,
production, distribution and consumption are made by a central
government authority instead of being determined by market forces. An
example was the Nazi economy.
production, distribution and consumption are made by a central
government authority instead of being determined by market forces. An
example was the Nazi economy.
Commercial Bank
In the USA, a bank that is authorized to accept demand deposits. It may
also receive time deposits, make loans, engage in trust services, issue
letters of credit, accept and pay drafts, rent safe deposit boxes and
engage in many other similar activities.
also receive time deposits, make loans, engage in trust services, issue
letters of credit, accept and pay drafts, rent safe deposit boxes and
engage in many other similar activities.
Commercial Invoice
A document which details the transaction between a seller and a buyer. It
minimally should give the name and address of the seller and of the
buyer, the date of the sale, a description of the goods sold, the quantity,
the unit price, the terms of sale, and the total money amount due. If it is an
invoice between buyer and seller of different countries it should also
indicate the kind of currency.
minimally should give the name and address of the seller and of the
buyer, the date of the sale, a description of the goods sold, the quantity,
the unit price, the terms of sale, and the total money amount due. If it is an
invoice between buyer and seller of different countries it should also
indicate the kind of currency.
Commercial Letter of Credit
An instrument by which a bank substitutes its credit for that of a customer
to enable him to finance the purchase of goods or to incur other
commitments. The bank issues a letter (or document) on behalf of its
client to a supplier and agrees to pay them upon presentation of
documentary evidence that the supplier has performed in accordance with
the terms of the letter of credit.
to enable him to finance the purchase of goods or to incur other
commitments. The bank issues a letter (or document) on behalf of its
client to a supplier and agrees to pay them upon presentation of
documentary evidence that the supplier has performed in accordance with
the terms of the letter of credit.
Commercial Officers
Embassy and consular officials who assist their country's citizens and
businesses in a foreign country through arranging appointments with
local business and government officials and providing counsel on local
trade regulations, laws, and customs.
businesses in a foreign country through arranging appointments with
local business and government officials and providing counsel on local
trade regulations, laws, and customs.
Commercial Paper
Negotiable instruments used in commerce. Usually they are short term,
unsecured, promissory notes issued by highly rated entities and are
traded on the money markets.
unsecured, promissory notes issued by highly rated entities and are
traded on the money markets.
Commercial Set
The documents required to evidence the shipment of goods; usually
includes an invoice, packing list, and bill of lading; may include certificate
of origin, certificate or policy of insurance, and other special documents.
includes an invoice, packing list, and bill of lading; may include certificate
of origin, certificate or policy of insurance, and other special documents.
Commercial Treaty
An agreement between two or more countries that establishes the
conditions under which business may be conducted between their
citizens within their countries..
conditions under which business may be conducted between their
citizens within their countries..
Commingling
1. The packing or mingling of various goods subject to different rates of
duty so that the value and quantity of each class of goods cannot be
readily determined.
2. To combine funds or properties into a common mass.
duty so that the value and quantity of each class of goods cannot be
readily determined.
2. To combine funds or properties into a common mass.
Commission
1. A board or committee officially appointed to perform certain functions or
exercise certain jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in the
completion of a transaction involving the sale of goods or services.
3.The authority under which one acts, transacts business or negotiates for
another.
exercise certain jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in the
completion of a transaction involving the sale of goods or services.
3.The authority under which one acts, transacts business or negotiates for
another.
Commodity Code
The system of identifying a commodity by an assigned number.
Commodity Rate
The rate applicable to shipping a given commodity between points.
Common Point
1. A location serviced by two or more transportation lines.
2. A significant point over which aircraft fly and report to the air controllers.
2. A significant point over which aircraft fly and report to the air controllers.
Competitive Rate
Rate determined by one transportation line to compete with the rate of
another transportation line.
another transportation line.
Compradore
An agent in a foreign country employed by a domestic businessman to
facilitate transactions with local businesses within the foreign country.
facilitate transactions with local businesses within the foreign country.
Concealed Damage
Damage to the contents of a package which is not evident from the
appearance of the exterior of the package.
appearance of the exterior of the package.
Concealed Loss
1. Loss from a package bearing concealed damage.
2. Damage, loss, or shortage of goods within a package which is not
apparent from its exterior condition.
2. Damage, loss, or shortage of goods within a package which is not
apparent from its exterior condition.
Confirming Bank
A bank which engages to honor a letter of credit issued by another, or
engages that such letter of credit will be honored by the issuer or by a third
bank.
engages that such letter of credit will be honored by the issuer or by a third
bank.
Connecting Carrier
A carrier which has direct physical connection with another carrier or
forms a connecting link between two or more carriers.
forms a connecting link between two or more carriers.
Consignee
The person or firm named in a freight contract to whom goods have been
shipped or turned over for care.
shipped or turned over for care.
Consignment
1. Goods or property sent by the aid of a carrier from one person (the
consignor) to another (the consignee).
2. Entrusting of goods to another to sell as agent for the sender.
consignor) to another (the consignee).
2. Entrusting of goods to another to sell as agent for the sender.
Consignor
The entity that ships goods to another. On a bill of lading, the shipper.
Consolidated Container
A shipping container that contains cargo from various shippers for delivery
to various consignees.
to various consignees.
Consolidation
1. In transportation, the combining of smaller shipments into a single
shipment that is sent to a destination point.
2.The reorganization of corporations to combine two or more into a
successor corporation.
shipment that is sent to a destination point.
2.The reorganization of corporations to combine two or more into a
successor corporation.
Consolidator
A company that provides freight consolidation services.
Consular Invoice
An invoice covering a shipment of goods, usually required to be certified
by the counsel of the country for which the merchandise is destined. It may
be required to be on a special form and be subject to the payment of
special fees.
by the counsel of the country for which the merchandise is destined. It may
be required to be on a special form and be subject to the payment of
special fees.
Consulate
An office of a country within another country (often there are several,
located in the larger commercial centers). These offices represent the
commercial interests of the citizens of their country.
located in the larger commercial centers). These offices represent the
commercial interests of the citizens of their country.
Consumer Goods
Any goods produced for the express use of individuals rather than the
production or manufacturing of other goods.
production or manufacturing of other goods.
Consumption Entry
(USA) A consumption entry is the filing with Customs in proper form of an
entry summary for consumption on imported goods , and payment of
estimated duties, taxes, and fees, if any, resulting in the release of the
goods by Customs. When the release is unconditional, the importer may
dispose of the goods.
entry summary for consumption on imported goods , and payment of
estimated duties, taxes, and fees, if any, resulting in the release of the
goods by Customs. When the release is unconditional, the importer may
dispose of the goods.
Container
A reusable, rigid, exterior box in which merchandise is shipped by air,
vessel, truck, or rail.
vessel, truck, or rail.
Container Freight Charge
Charge made for the packing or unpacking of cargo from ocean freight
containers.
containers.
Container Load
A shipment of cargo that, according to weight or volume, will fit a standard
container.
container.
Container on Flatcar
A container without wheels put on railcars for transport inland,
Container Part Load
A shipment of cargo that according to weight or volume will not fill a
standard container on its own but is expected to be shipped in a
container, if necessary with other shipments which are also too small to
take up a full container themselves.
standard container on its own but is expected to be shipped in a
container, if necessary with other shipments which are also too small to
take up a full container themselves.
Container Vessel
An ocean going vessel designed specifically to handle the loading,
carriage and removal of standard freight containers.
carriage and removal of standard freight containers.
Contraband
Any product that a nation has made unlawful to possess, produce,
transport, import, or export.
transport, import, or export.
Contract Carrier
Excluding common carriers, any person who under contract will transport
passengers or goods for agreed upon compensation.
passengers or goods for agreed upon compensation.
Convertibility
The attribute of being exchangeable, such as a currency freely able to be
exchanged for another, or as preferred stock or bonds to be exchanged for
common stock.
exchanged for another, or as preferred stock or bonds to be exchanged for
common stock.
Core Inflation
The basic level of inflation over a period of time as opposed to temporary
fluctuations.
fluctuations.
Corporate Dumping
The practice of exporting banned or out of date goods to a foreign market
where restrictions on that product are not as severe.
where restrictions on that product are not as severe.
Cost Plus
A pricing method where the purchaser agrees to pay the production cost
of the good plus a fixed percentage to the seller for profit.
of the good plus a fixed percentage to the seller for profit.
Countervailing Duties (CVD)
(USA) Duties which are assessed, in addition to regular duties, to offset
the effects of foreign subsidies or bounties upon the export of
merchandise to the United States which has been found to materially
injure, or threaten material injury to, an American industry.
the effects of foreign subsidies or bounties upon the export of
merchandise to the United States which has been found to materially
injure, or threaten material injury to, an American industry.
Country of Departure
The country from which a shipment of goods, a carrier, or a passenger
has or is scheduled to depart.
has or is scheduled to depart.
Country of Destination
The country that is the ultimate destination for a shipment of goods. For a
carrier, it is the country in which it intends to complete its current voyage or
flight.
carrier, it is the country in which it intends to complete its current voyage or
flight.
Country of Dispatch
The country from which a cargo is shipped.
Country of Export Destination
The country to which goods are going in order to be consumed, further
processed, or manufactured, as presumed by the shipper at the time of
exportation.
processed, or manufactured, as presumed by the shipper at the time of
exportation.
Country of Exportation
The country from which goods are shipped with intention to separate them
from the mass of goods in that country.
from the mass of goods in that country.
Country of Origin
The country in which goods were produced, mined, grown or
manufactured.
manufactured.
Country Risk
The financial risks of a transaction which relate to the political, economic,
or social instability of the country of the debtor, and is over and above the
credit risk of the borrower.
or social instability of the country of the debtor, and is over and above the
credit risk of the borrower.
Courier
1. Attendant who accompanies shipments.
2. Express company which handles shipments of documents and small
packages on an expedited basis and may or may not have the shipments
accompanied by attendants,
2. Express company which handles shipments of documents and small
packages on an expedited basis and may or may not have the shipments
accompanied by attendants,
CPT (Carriage Paid
To...named port of destination)
To...named port of destination)
The seller pays the freight for the carriage of the goods to the named
destination. The risk of loss of or damage to the goods, as well as any
additional costs due to events occurring after the time the goods have
been delivered to the carrier, is transferred from the seller to the buyer
when the goods have been delivered into the custody of the carrier.
destination. The risk of loss of or damage to the goods, as well as any
additional costs due to events occurring after the time the goods have
been delivered to the carrier, is transferred from the seller to the buyer
when the goods have been delivered into the custody of the carrier.
Customs
The government service which is responsible for the administration of
Customs law and the collection of duties and taxes relating thereto, and
which has responsibility for the application of other laws and regulations
relative to the importation , transit, and exportation of goods.
Customs law and the collection of duties and taxes relating thereto, and
which has responsibility for the application of other laws and regulations
relative to the importation , transit, and exportation of goods.
Customs Electronic Bulletin
Board (CEBB)
Board (CEBB)
(USA) Customs Electronic Bulletin Board (CEBB): An electronic bulletin
board accessible by computer, sponsored by U.S. Customs, providing the
trade community with up-to-date information, clearance requirements, and
operation instructions.
board accessible by computer, sponsored by U.S. Customs, providing the
trade community with up-to-date information, clearance requirements, and
operation instructions.
D
DAF (Delivered At Frontier
...named place)
...named place)
The seller fulfils his obligation to deliver when the 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.
available, cleared for export, at the named point and place at the frontier, but
before the customs border of the adjoining country.
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