C&F Cost and Freight (named port of shipment) – Incoterms
This abbreviation was changed in 1990 to CFR, but is still commonly used.
Currency Adjustment Factor – an adjustment to shipping companies’ freight rates to take into account the effect over time of fluctuations in currency exchange rates.
A document, normally issued by a Chamber of Commerce which is a member of the International Chamber of Commerce (ICC) to enable the holder to temporarily take merchandise into certain countries, as samples or for display purposes, without the need to pay import duty or pay a bond for the duty. The issuer will require the holder to give them security by way of a bank guarantee.
Cash against Documents (CAD)
An arrangement whereby the buyer pays for goods as soon as the buyer receives the seller’s documents. There is normally an intermediary involved, ie a bank or an agent acting on behalf of the seller, to ensure that the transaction takes place smoothly.
A general term for any document issued by the seller or another party, certifying to some action having taken place or some fact about the goods.
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) – Incotrems
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) – Incotrems
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) – Incotrems
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.
Container Freight Station – place or depot where individual LCL cargo is loaded into, and unloaded from, containers
A written contract between a shipowner and a charterer who rents use of the ship or part of its freight capacity. A voyage charterparty is a contract covering transport of goods from one or more ports to one or more ports and will detail the costs and responsibilities involved.
A document issued by the seller, addressed to the buyer, giving details of the individual transaction, including complete description of the goods, prices, currency, delivery and payment terms and so on. This is generally used by the Customs authorities in the importing country to assess customs duties payable.
A group of shipping companies who have associated to offer regular services on specific routes at published rates. Sometimes referred to as liner shipping. Non conference shipping lines are sometimes referred to as independent or outsiders.
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. See also Bill of Lading – Order B/L and Notify Party.
Where a freight forwarder groups, or consolidates, one or more shipments for one or more shippers to the one destination as one overall shipment. (See also House B/L and Master B/L).
The seller’s commercial invoice certified, for a fee, in the exporting country by the consular representative of the importing country. Now required only by a handful of countries.
Ship designed to take ISO (International Standards Organisation) containers in vertical cells within the ship’s holds as well as on the deck. These ships generally rely on infrastructure on the wharf to load and unload the containers.
Ship designed with holds which can load almost any type of loose cargo, such as drums, sacks, crates, pallets etc. These ships are designed with their own derricks for loading and unloading.
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.
A person or corporation licensed by the Australian Customs Service to handle on behalf of importers the process of clearing goods through customs.
A tax, duty or tariff levied at the time of import upon goods entering a country. Usually based on the value of the goods (ad valorem), on the physical nature of the goods such as quantity or weight, or on a combination of the value and other factors.
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.
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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.
DDP Delivered Duty Paid (named place of destination) – Incoterms
The seller fulfils 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 licence or approval. This term may be used for all modes of transport.
DDU Delivered Duty Unpaid (named place of destination) – Incoterms
The seller fulfils 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 transport.
A method whereby the seller uses the services of his bank to ensure that the buyer only receives the shipping documents under conditions specified by the seller, ie upon payment, or upon acceptance, of the seller’s bill of exchange. (see also Bill of Exchange, Cash Against Documents and URC522).
The officially correct term for Letter of Credit. The UCP500 only mentions “Documentary Credit” not “Letter of Credit”. See also Letter of Credit and UCP500).
Extra charges paid to a carrier when loading and/or unloading has not been completed within the specified time.
DEQ Delivered ex Quay (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.
Documents against Acceptance (D/A)
see Documentary Collection
Documents against Payment (D/P)
see Documentary Collection
see Bill of Exchange
see Bill of Exchange
see Bill of Exchange
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.
If goods which have been imported, and upon which customs duty has been paid, are exported or have been used in the manufacture of goods which have been exported, then the exporter may be entitled to a refund of the original import duty paid.
Universal Shipping Lines, LLC.
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Tucker GA 30084
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