The freight shipping industry is full of terms and acronyms related to domestic and international
transactions. Scroll down to discover more about cross-border shipping.
Port of entry at the border with customs offices where freight crosses to and from the U.S. and Canada.
A company that works with the outside carrier providing the actual transportation of cargo, but also works with the importer to insure that all financial and legal obligations required by Customs are satisfied. Brokers do not assume responsibility for the cargo and generally do not take possession of the cargo.
A business whose main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction. Brokerage companies are typically compensated after the transaction has been successfully completed.
A document that certifies the country where the product was made (i.e., its origin). A common export document, a Certificate of Origin is required when exporting to many foreign markets. It may be required in order to obtain preferential tariff treatment under several Free Trade Agreements.
A document prepared by the exporter, or freight forwarder, and required by the foreign buyer, to prove ownership and arrange for payment to the exporter. This should clearly list all commodities, descriptions and value, along with basic information about the transaction; including description of goods, address of both the shipper and seller and the terms of delivery and payment. In some cases, the CCI is used to assess customs duties.
The person or firm named in a freight contract to whom goods have been shipped or turned over for care. The Consignee is financially responsible for the receipt of a freight shipment and is usually the receiver of the shipment.
The individual, company or entity that ships goods, or gives goods to another for care. The consignor is usually the exporter, or his agent
Country of origin in which the goods have been produced, or manufactured.
A profession that involves the "clearing" of goods through Customs for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities and importers and exporters.
Documented permission to pass that a national Customs authority grants to imported goods so that they can enter the country or to exported goods so that they can leave the country. Custom clearance is typically given to a shipping agent to prove that all applicable Customs duties have been paid and the shipment has been approved.
C-TPAT seeks to safeguard the world's vibrant trade industry from terrorists, maintaining the economic health of the U.S. and its neighbors. The partnership develops and adopts measures that add security but do not have a chilling effect on trade, a difficult balancing act.
The papers pertaining to goods that require transportation and/or transfer of ownership.
Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.
The transfer of structured data, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention. The electronic exchange of documents between businesses and organizations, or between businesses and government agencies
An embargo is any event that prevents the freight from being accepted or handled. Most often, an embargo is due to international conflict or sanctions imposed on a particular country or group of people. Embargo events, however, may also include natural or manmade disasters such as floods, tornadoes, or congested highways.
When a problem such as shortage or damage is noted at the time of delivery, an exception is noted on the Bill of Lading (BOL), before it is signed in order to designate there was a problem with the shipment.
A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for trade, exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies
An individual or firm who does not take part in actual sales transactions, but brings together buyers and sellers for a fee.
U.S. Customs program that allows importers on the U.S./Canada border to obtain expedited release for qualifying commercial shipments
To prevent business practices that are anti-competitive or deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity.
A good brought into a jurisdiction, especially across a national border, from an external source. The purchaser of the exotic good is called an importer. An import in the receiving country is an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority. The importing and exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions.
The transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers.
The direct movement of freight between two major ports by a single ship.
This program is designed to benefit U.S. shippers by allowing them to sell goods cross-border to Canada on a landed cost basis, streamline the Customs clearance process, and reduce paperwork.
Pre-Arrival Review System (PARS), is a clearance process which utilizes unique bar code labels.
A duty (or tax) levied on goods transported from one customs area to another. Tariffs raise the price of imported goods, making them less competitive within the market of the importing country.
A shipment of cargo that fills a given truck either by bulk or maximum weight.
The United States, Mexico, and Canada have reached an agreement to modernize the 25-year-old NAFTA into a 21st century, high-standard agreement. The new United States-Mexico-Canada Agreement (USMCA) will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America.
