Glossary

Global Transportation Management System (GTMS) Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accessorial: Having a secondary, supplementary, or subordinate function. Each accessorial will have two cost attributes (actual and consolidated) and may have a time attribute.
Ad Valorem Duty Duty imposed on imported merchandise based on a percentage of the value.
Automated Export System (AES): A system to handle the transfer of Shippers’ Export Documentation electronically rather than via a paper based system.
AESDirect: The government entity assigned to provide the electronic communication functions for the transfer of SED information. http://www.aesdirect.gov
Antirdumping Duty: A tariff imposed to discourage sale of foreign goods at less than a fair market price that would be detrimental to local manufacturers. See Dumping.
Airway Bill: A bill of lading that covers both domestic and international flights transporting goods to specified destination. Technically, the air waybill is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates it to carry the consignment to the airport of destination according to specified conditions.
Animals: A multi-cellular organism of the animal kingdom, differing from plants in certain typical characteristics such as capacity for locomotion, non-photosynthetic, metabolism, pronounced response to stimuli, restricted growth, and fixed bodily structure.
Assignment: An assignment by which the assignor's interest in the property or right being assigned is terminated and transferred to the assignee.

Bill Third Party: Payment for the freight costs are to be collected from a party other than the seller or the consignee.
Bill of Lading: A contract between the owner of the goods and the carrier. There are primarily two types of ladings. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is used for letter of credit transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.
Bonded Warehouse: A warehouse that is authorized by Customs authorities for the storage or manufacture of goods on which payment of duties are deferred until the goods enter Customs territory. The goods are not subject to duties if reshipped to foreign points.
Broker: One that acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission. A customs broker performs transactions at ports on behalf of other parties. In other words, an importer, whether into the United States or another country, hires a customs broker to guide their goods into a country. Like the forwarder, the broker will recommend efficient means for clearing goods through the maze of customs entry protocol. The broker can also estimate the landed costs for shipments entering the country. U.S. exporters typically do not book shipments directly with a foreign customs broker, because freight forwarders often partner with customs brokers overseas who will clear goods that the forwarder ships to the overseas port.
Buyer: This party is responsible for issuing the order or purchase order for the commodities and/or livestock.

Carnet: Customs document which allows you to carry or send goods temporarily into certain countries for display or demonstration purposes without paying duty or posting a bond.
Carrier Identification Code: This is the 4 character Standard Alpha Code (SCAC) of the carrier vessel, rail or truck shipments, or the 2- or 3- character International Air Transport Association (IATA) code of the carrier for air shipments. In a consolidated shipment, if the ultimate carrier is unknown, the consolidators’ carrier ID code may be reported. The National Motor Freight Traffic Association or http://www.nmfta.org issues the SCAC codes for rail carriers. The IATA codes are available on the Foreign Trade Division web site under “Air Carrier Codes” at http://www.census.gov/foreign-trade.
Cash in advance: (CIA): full payment for exported goods before shipment is made.
Cash with order: (CWO): the buyer pays for goods when ordering. The transaction is binding on both supplier and customer.
Certificate of inspection: A document certifying that certain types of goods (such as perishable items) were in good condition before shipment.
Certificate of insurance: A document that shows insurance cover has been arranged for goods being exported. It should detail the degree of cover and list the policy number and all other relevant details.
Certificate of Manufacture: A document by a producer, sometimes notarized, which certifies that manufacturing has been completed and that the goods are at the disposal of the buyer.
Certificate of Origin: Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local Chamber or Commerce. A certificate may be required even though the commercial invoice contains the information. Also see more information contained within GSP (Generalised System of Preferences).
Chargeable Weight: This is the weight used to create the shipment charges. Chargeable weight might be actual weight or may be dimensional weight.
Clean Bill of Lading: : A bill of lading signed by the transportation company indicating that the shipment has been received in good condition with no irregularities in the packing or general condition of all or any part of the shipment.
C.O.D.: (cash or collect on delivery) collecting the commodity costs and freight charges upon delivery.
Collect: The payment for the freight costs are to be paid by the consignee.
Commercial Invoice: A bill listing the goods and prices shipped by an exporter.
Commodity : That which affords convenience, advantage, or profit, especially in commerce, including everything movable that is bought and sold (except animals), -- goods, wares, merchandise, produce of land and manufactures, etc.
Compound Duty: Tax imposed on imported merchandise based on a percentage of value and also on the net weight or number of pieces, etc.
Consignee: The person, firm, or representative, to whom a seller or shipper sends merchandise and who, upon presentation of the necessary documents, is recognized as the owner of the merchandise for the purpose of the payment of customs duties. This term is also used as applying to one to whom goods are shipped, usually at the shipper's risk, when an outright sale has not been made.
Consignor: The person or company shown on the bill of lading as the shipper.
Consignment: Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.
Consolidator: A company issuing bills of lading for the carriage of cargo on vessels or aircraft.
Consolidation: The combination of many small shipments into one container, often with more than one destination/consignee.
Consolidation Average Weight: Upon consolidation the average weight of each package must meet a minimum weight value to be considered as a consolidation.
Consolidation Group: Two or more shipments rated together as a single shipment.
Container: Any object that can be used to hold things (especially a large metal boxlike object of standardized dimensions that can be loaded from one form of transport to another). Containers can contain other containers as well as a being a box, skid, pallet, reel, kanban, trailer, box car, or anything which can contain the commodities and/or livestock.
Costs: Each cost attribute (Chargeable, Invoiced, and Actual) will have several elements (Base, Discount, Surcharge, Consolidation and Total).
- Base: This is the freight cost based upon the chargeable weight which may be different from the actual weight in the case of dimensional based weight differences.
- Discount: This is a discount applied to the base cost and reduces the base cost.
- Surcharge: A surcharge is a value added by the carrier, such as accessorial and fuel charges. The individual charges which constitute the surcharge are maintained in the accessorial costs.
- Packaging: A cost added to the overall cost for the packaging of goods. This value is not included as part of the cost attributes (Chargeable, Invoiced and Actual) and is reported as a separate cost entity. There is a single packaging cost.
- Handling: A cost added to the overall cost for the handling of the goods within the logistics organization. This value is not included as part of the cost attributes (Chargeable, Invoiced and Actual) as is reported as a separate cost entity. There is a single handling cost.
- Consolidation: Consolidation costs are deductions based upon the various consolidation rules and charges.
- Volume Discount: A discount amount based upon the amount of shipments through a carrier. This is usually a monthly rebate given but can be calculated by the rating engine.
- Total: The total value is the value usually reported by each cost attribute. The total value is calculated as follows: (Total = Base – Discount + Surcharge – Consolidation)
- Chargeable: The cost of the freight to be billed by the carrier. This value would be used as the “Match-Pay” cost.
- Invoiced: The amount billed to the customer which may be different in the case of “Air” vs “Ground” shipment. Customer pays for a ground shipment but freight actually travels via air.
- Freight Invoice: This is the actual cost of the freight as shown from the carriers’ freight bill. This value should always be equal to the chargeable cost.
Countervailing Duty: (CVD): A special duty imposed on imports to offset the benefits of subsidies paid to producers or exporters in the exporting country
Country of Origin: : The country in which a product or commodity is manufactured or produced or grown.

Date of Export: The actual date the merchandise leaves the country of exportation for the country of import.
Directorate of Defense Trade Controls (DDTC) : United States Defense Department which controls the export/import of military items.
Deficit Weight: Additional weight used to achieve the next weight price break. This weight is not part of the actual weight.
Demurrage: Excess time taken for loading or unloading a vessel. Demurrage refers only to situations in which the charter or shipper, rather than the vessel's operator, is at fault.
Devanning: Unloading of cargo from a container.
Delivery Terms: Delivery terms are based upon the International Chamber of Commerce (ICC) and defined as Incoterms 2000.
Denied Persons List: (DPL): This is a list of individual(s) or group(s) who the United States government has deemed as risks for delivery of goods external to the United States. The U.S. government prohibits delivery or exportation of goods to these individual(s) or group(s). Web site http://www.bxa.doc.gov/dpl/Default.shtm.
Distributor: An overseas agent which sells for the supplier directly and maintains inventory of the suppliers’ products.
Dimensional Weight Rating: A weight calculation based upon the package dimensions to accommodate for bulky light weight goods.
Dock Receipt: A receipt issued by an ocean carrier or its agent, acknowledging that a shipment has been delivered and received at the dock or warehouse of the carrier.
Domestic Status : material is growth, product, or manufacture of the U.S. on which all IRS taxes have been paid. • Previously imported and on which duty and tax have been paid. • Previously entered free of duty and tax.
Drawback: The repayment, up to 99%, of customs duties paid on merchandise which later is exported, as part of a finished product, is known as a drawback. It refers also to a refund of a domestic tax which has been paid, upon exportation of the imported merchandise.
Drop Ship : A method of shipping goods from one location to another location which is not the shipper or receiving company.
Dumping: The sale of a commodity into a foreign market at price that is “less-than-fair” value. Dumping is generally recognized as an unfair practice because the practice can disrupt markets and injure producers of competitive products in an importing country. Article VI of the GATT permits imposition of antidumping duties equal to the difference between the price sought in the importing country and the normal value of the product in the exporting country.
Duty: Tax levied by the government on the import, export or consumption of goods and usually based on the value of the goods or some other factors such as weight or quantity or a combination of both.

Export Control Classification Number (ECCN): If a product is subject to the Export Administration Regulations (EAR), the federal regulations that specify which exports require a license from the Department of Commerce; it may require an export license. To determine if a license is needed to export your product, exporters must first determine whether an Export Control Classification Number (ECCN) fits their product. The Commerce Department’s Bureau of Industry and Security (BIS) has the licensing authority over the export and re-export of items considered to be "dual-use." Dual-use items generally have both commercial and military applications. These items are controlled to further the national security, foreign policy, and nonproliferation interests of the United States. The five characters alphanumeric ECCN identifies the technology level and the capabilities of an item which, in combination with the country of destination, customer, and the intended application determine if an export license is required for a specific transaction or whether an item can be exported without a license. The ECCN must be determined prior to shipment. Once the ECCN has been identified, an exporter can consult the Commerce Control List (CCL) and the Country List, contained in the Export Administration Regulations, to find out if the product requires a license, why the product is controlled, and whether a license exception or NLR (No License Required) will apply.
Effectivity Date: This is the date when a particular item becomes into effect. Example is shipping rates become into effect on January 1, 2005. All dates prior to January 1, 2005 will use old rates.
Export License: A government document legally required for the export of certain goods such as pharmaceuticals, chemicals, and munitions.
Export Permit: The export permit or export license is a form of non-tariff barrier. Its purposes include:
- control of the kind and quantity of products going out of a country (e.g. military or strategic goods and sensitive materials),
- control of the export destination of the product, that is, prohibit exportation to an enemy country or to a country under sanctions imposed by the United Nations
- regulate the incoming foreign exchange
- control of the kind and quantity of products going out of a country (e.g. military or strategic goods and sensitive materials)
- stop the underground economy or illegal manufacturers and exporters.
In many countries, the exporter must obtain a specific export permit for each shipment, but a shipment valued below a minimum requirement does not require a permit. The government foreign trade office or the Central Bank is in charge of export licensing. In many countries, specific export permit can be obtained from authorized banks, with the exception of goods requiring a special permit. The specific export permit application usually requires the presentation of a valid letter of credit (the original usually). In cases where an authorized bank is the advising bank, presentation of a photocopy of the letter of credit may satisfy the requirement. An application fee may be required. The specific export permit can be valid for 30, 60 or more days from date of issue. In case the validity of the permit is short in a country, exporters should properly time its application to meet the shipment date. The export permit number is normally required in the export declaration forms. The exporter may be required to present a valid business license in order to apply for an export permit. In the process, illegal manufacturers and exporters are stopped. In certain countries, the export-trader is required to indicate on the export declaration forms the name and business license number (EIN) of the manufacturer from whom the export goods originate. In a few countries, the export permit is issued once to cover all consignments, except goods falling under the Export Control List, which either require a special permit or are prohibited from exportation. The list of export and import controlled or prohibited goods are available at the customs office or the government foreign trade office.

Foreign Inland Freight: Consists of the charges to move the freight from the foreign factory to the place of loading. Foreign inland freight charges are dutiable unless the terms of sale are “ex-factory” or the charges were incurred incident to the international shipment.
Free on Board (F.O.B.): This is a pricing term under which the seller must deliver the goods on board the ship at the point named at his own expense.
Freight Charge : Price calculated based upon the cost to move a shipment within a segment and based upon chargeable weight.
FOR/FOT : This means “Free on Rail” and “Free on Truck”. These terms are synonymous since the word “truck” relates to the railway wagons. They should only be used when the goods are to be carried by rail.
Forwarder: One who sends forward anything; one who transmits goods; such as a forwarding merchant. The forwarder advises and assists clients on how to move goods most efficiently from one destination to another. A forwarder’s extensive knowledge of documentation requirements, regulations, transportation costs and banking practices can ease the exporting process for many companies. An independent business which assembles collects and consolidates less-than-truckload freight

GATT : General Agreement on Tariffs and Trade: The General Agreements on Tariffs and Trade is a multilateral trade treaty among governments, embodying rights and obligations. The detailed rules set out in the Agreement constitute a code which the parties to the Agreement have agreed upon to govern their trading relationships.
Generalized Systems of Preferences (GSP) : Under the GSP (Generalized System of Preferences) program or the preferential tariff treatment, a free or reduced duty is granted by developed countries to certain manufactured goods from the least developed countries, in order to bolster their exports and economic growth. Most imports eligible under the GSP program are free of duty. There are over 20 industrialized countries---donor countries (country of destination)---which maintain GSP programs and over 100 least developed countries---beneficiary countries (country of origin)---which are eligible under the GSP program.
Goods and Services Tax (GST): A tax calculated based upon the value of the goods to be taxed. Also known as the Harmonized Sales Tax (HST). It is the aggregate of Customs duties, including Excise Duty, if any applicable, Special Import Measures Act (SIMA) assessment, and applicable Excise Tax.

Handling An opportunity or a means for achieving a purpose. Handling is a cost related attribute within a shipping dock or within a cross-dock. Handling may contain a time related attribute.
Handling Charges: The forwarder's fee to his shipper client.
Harmonized Sales Tax (HST): (see Goods and Services Tax).
Harmonize System (HS): The HS---Harmonized System or Harmonized Commodity Description and Coding System or Harmonize Tariff Schedule ---was developed by the Customs Cooperation Council (CCC) in Brussels, Belgium, as the basis for an international system to classify goods for customs purposes. It is a 10-digit system presently being used by most of the world's trading partners. The HS is an update of the CCCN (Customs Cooperation Council Nomenclature), which was redrafted and renamed in 1965 from the BTN (Brussels Tariff Nomenclature), produced in 1957. The HS information is available at the customs office and government external trade department.
Harmonized Tariff Schedule (HTS): The Harmonized Commodity Description and Coding System is a system for classifying goods in international trade, developed under the direction of the Customs Cooperation Council. Beginning on January 1, 1989, the new HS numbers replaced previously adhered-to schedules in over 50 countries, including the United States. For the United States, the HTS numbers are the numbers that are entered on the actual export and import documents. Any other commodity code classification number (SIC, SITC, end-use, etc.) is just rearrangements and transformations of the original HS numbers.
House Airway Bill (HAWB): Contains all the information of an air waybill but is not a financial document. This is a contract between the shipper and freight forwarder. All the shipments covered by the individual house air waybills are consolidated, and a single air waybill is issued to cover the consolidated shipment.
Hundred Weight Rating: Shipments rated together going to the same destination meeting addition weight break criteria.

Importer Number: Identification number assigned by the Customs Service to track importers, usually IRS number for the company.
Import License: Some countries may require import licenses for certain or all goods. Import Permits: The import permit or import license is a form of non-tariff barrier. Its purposes include:
- control of the kind and quantity of product coming into a country
- control of the import origin of the product
- regulation of the outgoing foreign exchange
- stop illegal importers
In many countries, the importer must obtain a specific import permit for each import shipment, but a shipment valued below a minimum requirement does not require a permit. The government foreign trade office or the Central Bank is in charge of the import licensing. In many countries, the specific import permit can be obtained from authorized banks, with the exception of goods requiring a special permit. The import permit application may require the presentation of a pro forma invoice (the sales confirmation). An application fee usually is required. In certain countries, depending on the availability of the country's foreign exchange reserves at the time of an import permit application, the importer may be required to deposit a sum in local currency, or in foreign currency based on the currency used on the invoice which is often in U.S. fund, equal to a percentage (20% to 100% usually) of the invoice value before a permit is granted. A deposit is required in certain countries in the application of a letter of credit (L/C) after the import permit is issued, not before the issuance of the import permit. The importer may be required to present a valid business license in order to apply for an import permit. In the process, illegal importers are stopped. In a few countries, the import permit is issued once to cover all consignments, except goods that require a special permit. The L/C from the importer's country may stipulate that the import permit or license number is to appear on all or specified export documents, otherwise the bank will reject such documents.
In Bond: Procedure under which goods are transported or warehoused under Customs supervision until they are either formally entered into Customs territory and duties paid or until they are exported.
In Bond Type: Code assigned to the in bond goods. These are goods that are entering and leaving via a bonded warehouse.
Incoterms: Provides a common set of rules for the most often used international terms of trade. The goal of the Incoterms is to alleviate or reduce confusion over interpretations of shipping terms by outlining who is obligated to take control of and/or insure goods at a particular point in the shipping process. Furthermore, the terms outline the obligations for the clearance of the goods for export or import and packing requirements.
Informal Entry: The informal entry is a simplified import entry procedure for most commercial shipments not over $2,000 in value. The statutory limit for informal entries is actually $2,500.
Insurance Certificate: This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.
International Traffic in Arms Regulations (ITAR): United States government state department for the control of the arms regulations. http://www.pmdtc.org/itar_index.htm

LCL: Less than container load.
Legal Weight: The weight of goods plus any immediate wrappings which are sold along with the goods; e.g., the weight of a tin can together with its contents.
Letter of Credit: A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally, the letter of credit contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will not longer be made.
Livestock: Animals, such as cattle or horses, raised for home use or for profit, especially on a farm.
Location: A place where something is or could be located; a site.
LTL: Less than truck load.

Maquiladora: This is applied to the production facility that processes or assembles components into finished products. An assembly or manufacturing operation can be partly or entirely owned and managed by non-Mexicans. A maquiladora uses competitively priced Mexican labor to assemble or process or perform manufacturing operations. These facilities temporarily import component parts from the U.S. or other countries and then export the product, either directly, or indirectly, by selling them to another maquiladora or exporter.
Marine Cargo Insurance: Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier. Losses may include fire, shipwreck, piracy, inclement weather and various other causes.
Marks: Letters, numbers and other symbols placed on cargo packages to facilitate identification.
Marks of Origin: The physical markings on a product that indicate the country of origin where the article was produced. Customs rules require marks of origin of most countries.
Merchandise Processing Fee (MPL): A fee assessed for formal entries based on 0.21% of the invoice value, with a minimum of $25 per formal entry and a maximum of $485.

NAFTA: North American Free Trade Agreement. This is a free trade agreement that comprises Canada, the U.S. and Mexico, exceeding 360 million consumers and a combined output of $6 trillion--20% larger than the European Community.
Net Weight: Weight of the goods alone without any immediate wrappings (e.g., the weight of the contents of a tin can without the weight of the can).

Ocean Bill of Lading: A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership which can be bought, sold, or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order" Bill-of-Lading. A Clean Bill-of-Lading is issued when the shipment is received in good order. If damaged or a shortage is noted, a clean bill-of-lading will not be issued. An On Board Bill-of-Lading certifies that the cargo has been placed aboard the named vessel and is signed by the master of the vessel or his representative. On letter of credit transactions, an On Board Bill-of-Lading is usually necessary for the shipper to obtain payment from the bank. When all Bills-of Lading are processed, a ship's manifest is prepared by the steamship line. This summarizes all cargo aboard the vessel by port of loading and discharge. An Inland Bill-of-Lading (a waybill on rail or the "pro forma" bill-of-lading in trucking) is used to document the transportation of the goods between the port and the point of origin or destination. It should contain information such as marks, numbers, steamship line, and similar information to match with a dock receipt.

Package: This is a single item that is used to calculate the freight cost.
Packing Cost: Packing costs are defined as “the cost of all containers (except instruments of international trade) and coverings of whatever nature or materials used in placing merchandise in condition, packed and ready for shipment to the United States.
Packing List: This is a list which shows number and kinds of packages being shipped, totals of gross, legal, and net weights of the packages, and marks and numbers on the packages. The list may be requested by an importer or may be required by an importing country to facilitate the clearance of goods through customs.
Party: One (as a person, group, or entity) constituting alone or with others one of the sides of a proceeding, transaction, or agreement (the parties to a contract) (a person who signed the instrument as a party to the instrument —Uniform Commercial Code)
Payment Terms: : Payment terms are “Prepaid”, “Collect”, “Bill Third Party” or “C.O.D.”. In a multi-segment/multimodal delivery process, payment terms by segment may be different. Payment terms are also effected by the delivery terms. Payment can also include credit card payments.
Port of Entry: A port at which foreign goods are admitted into the receiving country; port where the imported merchandise is entered for consumption.
Port of Import: First port within the Customs territory where imported merchandise arrives.
Pro Forma Invoice : An invoice provided by a supplier prior to the shipment of merchandise informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, etc.).
Prepaid: The payment for the freight costs are to be paid by the seller. Freight charges may or may not be passed along to the buyer.

Quay: A wharf, pier or dock.

Radio Frequency Identification (RFID): This is a generic term for technologies that use radio waves to automatically identify people or objects. There are several methods of identification, but the most common is to store a serial number that identifies a person or object, and perhaps other information, on a microchip that is attached to an antenna (the chip and the antenna together are called an RFID transponder or an RFID tag). The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computers that can make use of it.
Related Parties: • Members of the same family, spouse, and lineal descendants • Officers or directors if each individual is also an officer or director of the other organization • Partners • Person owning, controlling or holding with power to vote 5% or more of outstanding stock • Person who is an officer or director in both organizations

Schedule B: Refers to “Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States." A seven-digit Schedule B number must be entered on the shipper's U.S. Export Declaration for every commodity shipped.
Shipper’s Export Declaration (SED): The SED is used for compiling the official U.S. export statistics for the United States and for export control purposes. A form required by the U.S. Treasury Department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as Schedule B identification number.
Segment: This is defined as a portion of transportation of a shipment with a cost attribute, an assignment and it may have a time attribute.
Seller: This party is responsible for generating the invoice to the buyer or third party. This may be the same as the shipper.
Shipment: A quantity of commodities or livestock that are shipped together within a container. These are one or more items traveling together to a specific destination.
Shipper: This party is responsible for packaging the commodities and for creating the documentation for the delivery of the commodities.
Shipping Weight: Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes and containers (other than cargo vans and similar substantial outer containers).
Standard Carrier Alpha Code (SCAC): This is the identifying code for a carrier assigned by the National Motor Freight standards organization.
Standard Industrial Classification (SIC): A numerical system developed by the U.S. Government for the classification of commercial services and industrial products. Also classifies establishments by type of activity.
Standard International Trade Classification (SITC): A numerical system developed by the United Nations to classify commodities used in international trade as an aid to reporting trade statistics.
Surety Bond: A surety bond is a promise or guarantee of payment to U.S. Customs in the event of a default in any terms of the importation laws. If the importer does not comply, Customs will look to the surety for payment and compliance.

Tare Weight: The weight of a container and/or packing materials without the weight of the goods it contains.
Integrated Tariff of the European Communities (TARIC): designed to show the various rules applying to specific products when imported into the EU. This includes the provisions of the harmonized system and the combined nomenclature but also additional provisions specified in Community legislation such as tariff suspensions, tariff quotas and tariff preferences, which exist for the majority of the Community’s trading partners. In trade with third countries, the 10-digit TARIC code must be used in customs and statistical declarations.
Through Bill of Lading: A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation.
Transportation: This is defined as the movement of a shipment within the confines of a building, such as a cross-dock; or the movement utilizing a handling mechanism, such as a truck, boat, train, airplane, trailer, van, buggy, carrier pigeon, horseback, and etc.
Tariff: List or schedule of merchandise with applicable rates to be paid or charged for each listed article. This is a schedule of duties or taxes assessed by a government on goods as they enter or leave a country.
Trailer: Vehicle without motor power designed to be drawn by another vehicle and so constructed that no part of its weight rests upon the towing vehicle.
Transaction Value: This is the price actually paid or payable for the imported goods, with additions made for any dutiable items not included, or deductions made for any non-dutiable items included.
Transfer Pricing: Overpricing of imports and/or under-pricing of exports between affiliated companies in different countries for the purpose of transferring profits, revenues or monies out of a country in order to evade taxes.
Transship: To transfer or be transferred is transferred from one vessel to another.

Ultimate Consignee: This is the person located abroad who is the true party in interest, receiving the export for the designated end-use.
Ultimate Purchaser: This is generally the last person in the United States who will receive the article in the form in which it was imported.
United States Munitions List (USML): A list maintained by the State Department in relationship to the ITAR and DDTC.17.
U.S. Principal Party of Interest (USPPI): This is the person in the United States that receives the primary benefit, monetary or otherwise, of the export transaction. Generally that person is the U.S. seller, manufacturer, order party, or foreign entity. The foreign entity must be listed as the USPPI if in the United States when the items are purchased or obtained for export.

Value Added Fee: This method of pricing offers a base entry fee with extra charges for additional classifications, additional invoices, and issuance of delivery orders, freight tracking, phone and fax charges and other miscellaneous services.

War Risk: Insurance coverage for loss of goods resulting from any act of war.
Wharfage : A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.