CABLE ADDRESSTo the Top

A code word of less than 10 letters, registered annually with the Central Bureau of Registered Addresses, used in lieu of the entire name and address of a firm receiving or sending cablegrams in order to reduce the number of words required in a cablegram.

CABLE RATE

The exchange rate quoted for a given currency transferred by cable. The cable rate is higher than the rate for checks or bills of exchange denominated in the same currency because cable transfers are virtually instantaneous, thereby denying the bank or broker use of the funds during the collection period associated with checks or bills.

CABLE TRANSFER

The electronic transference of funds from one bank to another person at a named bank.

CABOTAGE

A water transportation term applied to shipments between ports of nations. It refers to coast-wise navigation of trade. The U.S. has cabotage laws which require domestic owned vessel to perform domestic inter-port water transportation service.

CALL MONEY

Demand deposits in a British bank.

CALVO DOCTRINE

A doctrine stating a nation is obliged to extend to foreign business in its domain only nondiscriminatory treatment; by entering a country, a foreign firm virtually accepts local jurisdiction and will be treated as a national. The doctrine is named after Argentine jurist Carlos Calvo.

CAMBIST

A person engaged in the purchase and sale of bills of exchange or foreign currencies.

CANCELING DATE

The date by which a vessel must be ready to load as stated in the charter party. If the vessel is not ready by this date the charterer may cancel the agreement.

CAP

The maximum rate of interest that may be charged on variable or floating rate loan.

CAPACITY COSTS

Costs which are incurred to create or purchase a given amount of productive capacity.

CAPACITY LOAD

As used in rate tariffs it is a quantity of freight that (a) equals the maximum legal limit, (b) fills a vehicle so that no additional article identical to the largest in the shipment can be loaded.

CAPITAL

The goods employed in the pursuit of commercial profit.

CAPITAL ACCOUNT

The entries in a nation’s balance of payment accounts showing long or short term loans made to other countries.

CAPITAL FLIGHT

The movement of significant capital resources from a country in response to unstable economic or political conditions.

CAPITAL LEASE

A leasehold extending substantially over the life of a capital asset.

CAPTAIN’S PROTEST

A document prepared by the captain of a vessel on arriving at port, showing conditions encountered during a voyage. Generally for the purpose of relieving ship owner of any loss to cargo, thus requiring cargo owners to look to the insurance company for reimbursement.

CAREY STREET

British colloquialism for bankruptcy.

CAR FLOAT

A large flat-bottomed boat equipped with tracks on which railroad cars are moved in inland waterways.

CARGO

Merchandise carried by means of transportation.

CARGO ACCOUNTS SETTLEMENT SYSTEM (CASS)

A system of accounting and settling accounts between Cass airlines, Billing Participants and Part-Participants and their appointed IATA Cargo Agents.

CARGO ASSEMBLY

An Air Freight term denoting the separate reception of parcels or packages and the holding of them for later dispatch as one consignment.

CARGO BROKER

A broker representing the charterer in finding a vessel for hire.

CARGO DEADWEIGHT

The cargo-carrying capacity, expressed in long tons, of a vessel when fully loaded except water, stores, bunkers and supplies.

CARGO DISASSEMBLY

The separation of one or more of the component parts of a consignment (from other parts of such consignment) for any purpose other than that of presenting such part or parts to customs authorities at the specific request of such authorities.

CARGO MANIFEST

Commonly refers to a manifest which does not have charges, but rather only lists cargo.

CARGO PREFERENCE ACTTo the Top

1954 amendment to the Merchant Marine Act of 1936 which mandates that at least 50 percent of all government-generated cargoes move on U.S. flag ships.

CARGO TRANSFER

Cargo arriving at a point by one flight and continuing there from by another flight of the same or a connecting carrier.

CARGO TRANSIT

Cargo arriving at a point and departing therefrom by the same through flight.

CARIBBEAN BASIN INITIATIVE

An economic development plan for the Caribbean area advanced by the Reagan administration in 1983. Included in the program are; establishment of a one-way free trade area in which most Caribbean-area products enter the United States free of duty; a reduction of the Caribbean content requirement for duty-free entry in the United States from 35% to 25%. Almost all products, other than garments, footwear, and some other import-sensitive items, may now enter duty-free from most Caribbean nations.

CARMACK AMENDMENT

The common name for the carrier liability provisions of the Hepburn Act of 1906, by which the Interstate Commerce Act was amended to restrict efforts by certain common carriers to limit their liability for loss and damage of merchandise in transit.

CARNET

A custom document permitting the holder to temporarily carry or send merchandise, such as samples, into certain foreign countries without paying duties or posting bonds.

CARRIAGE

The transportation of goods by surface, air or water.

CARRIAGE, DOMESTIC

Carriage in which according to the contract of carriage, the place of departure and the place of destination are situated within one country.

CARRIAGE OF GOODS

Covers the period from the time when the goods are loaded on the vessel until they are discharged from the vessel.

CARRIAGE OF GOODS BY SEA ACT (COGSA)

The principal U.S. statute governing carrier liabilities and immunities for loss and damage arising during the transport of goods by water in the foreign commerce of the United States. The act does not repeal the earlier Harter Act. Unlike the Harter Act, which applies to both foreign and domestic waterborne shipment. COGSA applies only to foreign shipments.

CARRIER

An individual, partnership or corporation engaged in the business of transporting goods.

CARRIER’S CERTIFICATE

A document issued by a carrier certifying to the customs authorities that the party named in the certificate is the lawful recipient of imported merchandise and is authorized to effect entry through customs.

CARRIER, ISSUING

The carrier whose AWB (air waybill) is issued.

CARTAGE

The transporting of goods locally by truck to or from a vessel, aircraft, or bonded warehouse. Cartage to or from a bonded warehouse must be performed by a bonded cartage company.

CARTAGE ALLOWANCE

An amount paid, as specified in tariffs, to consignees or consignors by carriers in lieu of pick up or delivery of LTL (less than container load ) shipments.

CARTAGE TO SHIPSIDE

The charge made for carting, draying or trucking freight alongside a vessel.

CARTING

The hauling of freight on carts, drays or trucks.

CARTEL

An alliance of firms in the same line of business that regulates prices on an international basis by restricting output and competition.

CARTMEN

The trucking company performing local cartage. See cartage.

CASE OF NEED

A section in documentary collection letter that names the exporter’s agent in the importing country who should be contacted by collecting bank in the event that the importer refuses payment or acceptance or in the event of other difficulties.

CASH IN ADVANCE (C.I.A)

A method of payment for goods in which the buyer pays the seller in advance of goods. Usually employed when the goods are built to order, such as specialized machinery.

CASH AGAINST DOCUMENTS (C.A.D)

A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.

CASH WITH ORDER (C.W.O.)

A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

CASS AIRLINES

An airline fully participating in the Cargo Accounts Settlement Systems.

CATALOG OF INVESTMENT OPPORTUNITIES IN DEVELOPING COUNTRIES

A publication of the Overseas Private Investment Corporation (OPIC), it list various investment projects with a brief description on the project and the respective country.

CAVEAT EMPTOR “Let the buyer beware”

A term used to signify goods sold to a buyer without a warranty from the seller.

CAVEAT VENDITOR “Let the seller beware”

A term used to signify that unless the seller explicitly disclaims any responsibility, he shall be liable to the buyer if the merchandise delivered is different in quality, kind, purposes and use from the description in the sales contract.

CELLULAR CONSTRUCTION

Consists of vertical guides (similar to those in an elevator shaft) within which the container fits and is constrained at its four vertical posts. The containers are stacked one above the other and the bottom container takes the static and dynamic vertical loads resulting from those resting on it. These loads are transmitted through the corner posts of the containers to a reinforced doubling plate on the tank tip or bottom of the hold.

CENTRAL BANKTo the Top

A bank whose chief responsibility is controlling a country’s monetary policy.

CERMENT

A strong alloy of a heat resistant compound.

CERTIFICATE OF ANALYSIS

A certificate required by some countries as proof of the quality and composition of food products or pharmaceuticals. The required analysis may be made by a private or government health agency. The certificate must be legalized by a foreign consul of the country concerned, as is the case with such similar certificates as the phytosanitary certificate.

CERTIFICATE OF INSPECTION

A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.

CERTIFICATE OF MANUFACTURE

A statement in which a producer of goods certifies that manufacture has been completed and that the goods are now at the disposal of the buyer.

CERTIFICATE OF ORIGIN

A document required by certain foreign countries for tariff purposes, certifying country of origin of specified goods.

CFR - COST AND FREIGHT...NAMED PORT OF DESTINATION

“Cost and Freight” means the seller must pay costs and freight necessary to bring goods to named port of destination. The risk of loss or damage to goods, as well as any additional costs due to events occurring after time goods have been delivered on board vessel, is transferred from seller to buyer when goods pass ship’s rail at port of shipment.

The cost factors normally included in CFR are merchandise value, marking costs, packing, inland freight costs to ship, any vessel loading charges and freight costs from port of export to port of destination. “Main Carriage” transportation will be Prepaid. The CFR term is used for sea and water transport only.

CFS (CONTAINER FREIGHT STATION)

The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the CFS mean the bond location designated by carriers in the port area for unpacking and delivery of cargo.

CFS/CFS (Pier to Pier)

The term CFS/CFS means cargo delivered by break-bulk to Carrier’s CFS to be packed by Carrier into containers and to be unpacked by Carrier from the container at Carrier’s destination port CFS.

CFS/CY (PIER TO HOUSE)

The term CFS/CY means cargo delivered break-bulk to Carrier’s CFS to be packed by Carrier into containers and accepted by consignee at Carrier’s CY (container yard) and unpacked by the consignee off Carrier’s premises, all at consignee’s risk and expense.

CFS CHARGE (CONTAINER FREIGHT CHARGE)

The CFS Charge means the charge assessed for services performed at the loading or discharging port in packing or unpacking of cargo into/from containers at CFS.

CFS RECEIVING SERVICES

“CFS Receiving Services” means the service performed at loading port in receiving packing cargo into containers from CFS to CY or shipside. “CFS Receiving Services” referred herein are restricted to the following-

1. Moving empty containers from CY to CFS

2. Drayage of loaded containers from CFS to CY and/or ship’s tackle.

3. Tallying

4. Issuing dock receipt/shipping order

5. Physical movement of cargo into, out of and within CFS

6. Stuffing, sealing and marking containers

7. Storage

8. Ordinary sorting and stacking

9. Preparing carrier’s internal container load plan

CHAPTER

One of the 99 separate Chapters found in the new U.S. Tariff and one of the 98 separate chapters found in the new U.S. Schedule “B”. Chapters are numbered from 1 to 97 in the international system (Chapter 77 is blank). The HTSUS has added Chapters 98 and 99 to essentially re-state the TSUSA Schedule 8 and Appendix (also referred to as Schedule 9). The Harmonized Schedule “B” has added Chapter 98 to accommodate special classification provisions e.g. commodities donated for relief or charity; reporting the value of repairs and alterations on exported products re-imported for this purpose.

CHAPTER NOTES

Legal notes set out at the chapter level in the U.S. Tariff which define, include, exclude, etc. specific goods, usually for purposes of the particular chapter but sometimes for purposes of the entire nomenclature. They are part of the legal system.

CHAPTER TITLE

Have no legal significance. They do not necessarily include or preclude any article from being classified in the chapter. The titles of the chapters are provided for ease of reference only.

CHARGE

An amount to be paid for carriage of goods based on the applicable rate for such carriage, or an amount to be paid for a special or incidental service in connection with the carriage of goods.

CHARGE, COMBINATION OF

An amount which is obtained by combining two or more charges.

CHARGE, FORWARDING

Charges paid or to be paid for preliminary surface or air transportation to the Airport of Departure by surface or air transportation agency, not a carrier under the AWB.

CHARGE, JOINT

A charge which applies for carriage over the lines of two or more carriers and which is published as a single amount.

CHARGE, LOCAL

See Charge, On-line.

CHARGE, MINIMUM

The minimum amount which applies for the transportation of the consignment.

CHARGE, NORMAL

The specified general cargo rate without any quantity discount.

CHARGE, ON-LINE

Equivalent to the term local charge, means a charge which applies for carriage over the lines of a single carrier.

CHARGE, PREPAID

The charges entered on a AWB or Ocean B/L for payment by the shipper.

CHARGE, PUBLISHED

A charge the amount of which is specifically set forth in the carrier’s rates tariff.

CHARGE, QUANTITYTo the Top

The unit rate which is lower than the normal rate and applies to shipments meeting specific weight requirements.

CHARGE, REFORWARDING

Charges paid or to be paid for subsequent surface, or air transportation from the airport of destination by a surface or air transportation agency, not a carrier under the AWB.

CHARGE, THROUGH

The total charge from point of departure to point of destination.

CHARGES FORWARD

A banking term used when foreign and domestic bank commission charges, interest, and government taxes in connection with the collection of a draft are credited to the drawee’s account.

CHARGES HERE

A banking term used when foreign and domestic bank commission charges, interest, and government taxes in connection with the collection of a draft are credited to the drawer’s account.

CHARGES LIENS

The charges due to or assumed by the claimant of the lien which are incident to the shipment and forwarding of the goods to the destination in the U.S., but does not include the purchase price, whether advanced or to be collected, nor other claims not connected with the transportation of the goods.

CHARTER PARTY

A written contract, usually on a special form, between the owner of a vessel and a “charterer” who rents use of the vessel or part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation.

CHARTER CONTRACT

A special agreement whereby a carrier, for an agreed operation places at shipper’s disposition the entire capacity of an aircraft or vessel.

CHARTER PARTY BILL OF LADING

A bill of lading issued under a charter party. It is not acceptable by banks under letter of credit unless so authorized in the credit.

CHASSIS

A wheel assembly including bogies constructed to accept mounting of containers.

CIA (Cash in Advance)

A method of payment whereby buyer pays seller in advance of shipment of goods.

CIF - COST, INSURANCE AND FREIGHT...NAMED PORT OF DESTINATION

“Cost, Insurance and Freight” means seller has same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. The seller contracts with insurer and pays insurance premiums.

The cost factors normally included in CIF are merchandise value, marking costs, packing, inland freight costs to ship, any vessel loading charges, freight costs from port of export to port of destination and marine insurance. “Main Carriage” transportation will be Prepaid. The CIF term is used for sea and water transport only.

CIF, DUTY PAID

Means cost, insurance, and freight plus customs duty.

CIP - CARRIAGE & INSURANCE PAID TO.. NAMED PLACE OF DESTINATION

This term is the same as “Freight or Carriage Paid To...” with the addition that seller must procure transport insurance against the risk of loss or damage to goods during carriage. Seller contracts with the insurer and pays insurance premiums.

The cost factors normally included in CIP are merchandise value, marking costs, packing, all transportation cost to named place of destination, and marine insurance. “Main Carriage” transportation will be Prepaid. The CIP term is used for any mode of transportation.

CIRCUITOUS ROUTE

An extremely indirect route.

CITY TERMINAL SERVICE (AIR FREIGHT)

The surface carriage of consignments between carrier’s city handling station and the airport of departure or destination.

CLAIM

A demand made upon a transportation line for payment on account of loss or damage alleged to have occurred while shipment was in possession of carrier, and a demand upon a transportation company for refund of an overcharge.

CLAIM TRACER

A request for advice concerning the status of a claim.

CLAIMANT

Person or company filing a claim.

CLASS RATES

A class of goods or commodities in a large grouping of various items under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called class rates.

CLASSIFICATION

A customs term meaning the process of determining which product category of the tariff schedules applies to a given imported item to determine the rate of duty. There are more than 7,300 categories in the Harmonized Tariff Schedule of The United States.

CLASSIFICATION (Freight)

A publication containing a list of articles and the classes to which they are assigned for the purpose of applying class rates, together with governing rules and regulations.

CLASSIFICATION RATING

The class to which an article is assigned for the purpose of applying class rates.

CLASSIFICATION YARD

The place where cars are segregated by the carriers according to their destinations or deliveries and made ready for proper train movement or delivery.

CLAUSED BILL OF LADING

One on which the common carrier has noted exception to having accepted a shippers merchandise for transportation in “apparent good order and condition”.

CLAYTON ACT To the Top

A major U.S. antitrust law passed in 1914 to supplement the Sherman Act. The Clayton Act dealt primarily with the prohibition of price discrimination among buyers by sellers in the sale of commodities and the acquisition of the company’s stock by a competitor.

CLEAN ACCEPTANCE

A formal acknowledgment by a principal in negotiations for the charter of vessel that he accepts the offer submitted to him, without further modification, and that he binds himself to execute the Charter Party.

CLEAN BILL OF LADING

A receipt for goods issued by a carrier that indicates that the goods were received in “apparent good order and condition,” without damage or other irregularities.

CLEAN COLLECTION

Describes the process of presenting a negotiable document to the drawee for the purpose of obtaining payment or acceptance. The shipping documents are not incorporated in the collection process.

CLEAN CREDIT

A letter of credit that does not require presentation of shipping documents by the beneficiary. This kind of credit, unlike documentary collection, is usually payable against a draft or some other simple demand or statement.

CLEAN DRAFT

A draft in which no documents have been attached.

CLEANING

For purposes of this assessment, cleaning is the removal of dockage, insects, and to a degree shrunken and broken kernels from grain by means of mechanical screening and scalping devices. Pre-cleaning is the removal of foreign material from grain before it is dried. Cleaning practices vary from country to country.

CLEAN REPORT OF FINDINGS

A report issued by an inspection firm showing that the goods have been inspected prior to shipment and that the goods conform to specifications as stated by the buyer.

CLEARANCE

The completion of customs formalities including, but not limited to, the physical examination of imported merchandise, and the submission of documents necessary to permit the release of merchandise from customs control to the importer.

CLEARANCE LIMITS

The dimensions beyond which the size of, or projections on a shipment may not extend in order to clear obstructions along railway tracks, such as switchstands, platforms, tunnels, mail cranes, water tanks, third rails, low bridges, signal stands.

CLEARANCE PAPERS

The documents issued to a ship’s captain stating that the vessel is in compliance with local regulation and is permitted to leave the port.

CLEAR DAY

Any day that the foreign exchange markets are open for business.

CLEAR DAYS

Excluding the day notification is received and the day vessel actually arrives, clear days are the number of days that a vessel under charter must give to the shipper in advance of arrival in order to prepare the cargo for shipment. If the charter party specifies a number clear working days, the notification requirement is extended to exempt Sundays and holidays.

CLEAR RECORD

A record which shows that a shipment was handled without any loss or damage being sustained.

CLEARING TRANSACTION

An agreement between two countries that their exchange of merchandise will be paid by an existing arrangement between governments.

CLOSING DATE

Latest date cargo accepted for shipment by shipowner for a specified sailing.

C.M.

Cubic Meter (Capital letters) cm (small letters) means centimeter.

CLOSED ECONOMY

The economy of an isolated area that engages in virtually no trade beyond its own borders.

COCOM

The Coordinating Committee on Multilateral Export Controls, a voluntary group of countries (consisting of Belgium, Denmark, France, Germany, Greece, Italy, Japan, Luxembourg, The Netherlands, Norway, Portugal, Spain, Turkey, The United Kingdom, Canada and the U.S.) which administers a common set of export controls.

CODE OF CONDUCT

International instruments that indicate standards of behavior by nations, states, or multinational corporations deemed desirable by the international community. Each of these codes is monitored by a special committee that meets under the auspices of GATT and encourages consultations and the settlement of disputes arising under the code.

CODE OF FEDERAL REGULATIONS

A codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government. The code is divided into 50 titles which represent broad areas subject to Federal regulation. Each title is divided into chapters which usually bear the name of the issuing agency. Each chapter is further subdivided into parts covering specific regulatory areas.

C.O.D

Collect (cash) on delivery, or carried on docket (pricing).

CO-FINANCING

An agreement between bank and official lending institutions participate in World Bank financing of development projects in Third World countries.

COLLATERAL

Certain property affianced by a borrower to a lender as security for the repayment of a loan.

COLLECTING BANK

A bank which a remitting bank forwards a collection in order to accelerate payment on demand or in the future.

COLLECTION To the Top

The presentation of negotiable instrument or shipping documents to a specific party for the purpose of obtaining either payment or a commitment to pay on a future date.

COLLECTION BASIS

Request for payments may be made by drafts (sometimes called “bill of exchange”) drawn by the exporter on the overseas buyer. The shipping documents conveying title are attached, and are released to the buyer only against payment of sight drafts or acceptance of time drafts.

COLLECTIVE PAPER

All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

COLLECTOR OF CUSTOMS

A representative of the United States Treasury Department acting for the government in connection with foreign traffic.

COMBINATION EXPORT MANAGER

A firm which acts as an export sales agent for more than one U.S. manufacturer, all of which are non-competitive with the others. Business is transacted under the names of the manufacturers and revenue is derived from sales commissions.

COMBINATION VESSELS

Container/Break-bulk vessel. This type of vessel accommodates both container and break-bulk cargo. It can be either self sustaining or non-self sustaining.

COMBI AIRCRAFT

An aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, forward of the passenger area.

COMBINED TRANSPORT DOCUMENT

A bill of lading issued covering shipment of goods by more than one mode of transport. The document specifies the point at which the goods are taken up for carriage and the place of delivery.

COMDOC

Computerized Documentation - transmission of freight bills from origin to destination via electronic means.

COMBINED TRANSPORT OPERATOR

A common carrier providing multimodal transport service,(e.g. rail, water, motor), with one portion of the shipment actually performed by the carrier issuing the bill of lading and other portions subcontracted out.

COMMAND DIRECTED ECONOMY

An economy in which the question of which goods are to be produced, how they will be produced, and who will receive them are established by government fiat.

COMMERCIAL ATTACHE

The commerce expert on the diplomatic staff of his or her country’s embassy or large consulate.

COMMERCIAL BILL

A draft drawn by a seller on a buyer for a mercantile transaction.

COMMERCIAL BUSINESS DAILY (CBD)

A daily newspaper from the Department of Commerce which lists government procurement invitation, contract awards and more. CBD list foreign business opportunities as well as certain foreign government procurement.

COMMERCIAL CODE

A published code designed to reduce the total number of words required in a cablegram.

COMMERCIAL INFORMATION MANAGEMENT SYSTEM (CIMS)

Electronically links International Trade Administration’s (ITA) office worldwide. Utilizing CIMS and other Department of Commerce resources, international trade specialists at ITA district and branch offices can individually tailor information packages on foreign business and economic climates; import relations; tariff and non-tariff barriers; domestic and foreign competition; individual competitor firms and competitive factors,; distribution practices; promotion strategies; policies and product standards; and end-users. You can use CIMS to examine exports by product on a country-by-country basis or to analyze an industry/product area in a specific country.

COMMERCIAL INVOICE

An itemized list of goods shipped, usually included among an exporter’s collection papers.

COMMERCIAL PAPERS

Unsecured debt obligations of large, credit-worthy firms, issued for periods of one year or less.

COMMERCIAL RISK

The risks borne by an exporter that his foreign customer may be unable to pay for merchandise imported under open account term.

COMMINGLED MERCHANDISE

Merchandise that is intermixed so that a customs inspector cannot readily determine that value or quantity of the individual items. A provision of custom regulations stipulates that under these conditions, duty on the entire shipment will be imposed upon whichever of the commingled items bear the highest rate of duty.

COMMISSION

The sum of monetary compensation or allowance given to a agent or broker for carrying on the business of his principal.

COMMISSION AGENT

An agent employed to sell merchandise consigned or delivered to him by his principle.

COMMISSIONAIRE

A distributor retained by manufacturer to sell the producer’s products in return for a fee.

COMMITMENT

An agreement between a bank and borrower to advance money in the future.

COMMITMENT FEE

A charge levied.

COMMODITY To the Top

Broadly defined, any article exchanged in trade, but most commonly used to refer to raw materials, including such minerals as tin, copper and manganese, and bulk product agricultural products such as coffee, tea and rubber.

COMMODITY CONTROL LIST A list of products subject to export control administered by the U.S Department of Commerce.

COMMODITY CREDIT CORPORATION (CCC) The Foreign Agriculture Service provides U.S. agricultural exporters with short and intermediate term financing support through the CCC Credit Guarantee Programs. These programs protect U.S. exporters or U.S. financial institutions against risk if the importer’s foreign bank fails to make payment, and are designed to help developing nations make the transition from concessional financing to cash purchases.

COMMODITY GROUPINGS

A numerical system used by the U.S. Bureau of the Census to group imports and exports in broader categories than are provided by Tariff Schedules.

COMMODITY AND MARKETING PROGRAMS (CMPs)

A division of the Foreign Agricultural Service, CMPs provide marketing information by specific commodity group. Promotional activities are generally carried out in cooperation with agricultural trade associations and exporting companies which agree to plan, manage and contribute staff resources and funds to support such activities.

COMMODITY SPECIALIST

An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods.

COMMON AGRICULTURAL POLICY

The fundamental mechanism for the integration of agriculture within the European Economic Community.

COMMON CARRIER

A firm or individual that transports persons or goods for compensation.

COMMON EXTERNAL TARIFF

A tariff rate uniformly applied by common market or customs union, to imports from countries outside the union, such as the European Community, to imports from countries outside the union.

COMMON POINT

A point reached by two or more transportation lines.

COMMON TARIFF

A tariff published by or for the account of two or more transportation lines as issuing carriers.

COMMONWEALTH INDEPENDENT STATES (CIS)

Independent states of the former Soviet Union consisting of:

Armenia Lithuania

Azerbaijan Moldova

Byelarus Russia

Estonia Tajikistan

Georgia Turkmenistan

Kazakhstan Ukraine

Kyrgyzstan Uzbekistan

Latvia

COMMON WEALTH PREFERENCE.

Special preferential rates of duty applied by member states of the British Commonwealth on merchandise imported from other Commonwealth countries.

COMMUNICATIONS ACT OF 1934

An Act of Congress regulating communication by wire, or radio. Approved June 19, 1934.

COMMUNITY PREFERENCE

A component principle of the Common Agricultural Policy of the European Economic Community.

COMPARATIVE ADVANTAGE

A primary theory in international trade which holds that a country or region should specialize in the production and export of those goods and services that it can produce relatively more efficiently than other goods and services, and import those goods and services in which it has a comparative disadvantage.

COMPARISON SHOPPING

A custom tailored service of the International Trade Administration that provides firms with key marketing and foreign representation information about specific products in specific countries.

COMPENDIUM OF CLASSIFICATION OPINIONS

Published periodic decisions rendered by the Harmonized System Committee on the classification of products.

COMPENSATION

Trade concessions granted by one nation to another in recompense for other trade concessions that have been withdrawn or suspended.

COMPENSATION TAX

A special import levy imposed by the European Economic Community upon certain agricultural imports when the entry price of such products falls below a reference, or minimum target price, and the import is priced to reflect an export subsidy.

COMPENSATION TRADE/DEAL

A semi-barter arrangement in which products are purchased partially with cash and partially with other merchandise.

COMPENSATORY SUSPENSION

The suspension of trade concessions by a nation in retaliation for suspension of concessions by a trading partner.

COMPENSATORY TAX

A special import levy imposed by the European Economic Community upon certain agricultural imports when the entry price of such products falls below a minimum target price, and the import is priced so as to reflect an export subsidy.

COMPENSATORY WITHDRAWAL

The cancellation of a trade concession by a nation in retaliation for the withdrawal of a concession by a trading partner.

COMPLEMENTARY EXPORTING

An arrangement in which a manufacturer markets his products internationally through the distribution channel of another firm, usually a manufacturer of similar but noncompetitive products.

COMPOSITE UNIT To the Top

A Composite Unit is defined as two or more machines fitted together to form a whole for the purpose of performing two or more complementary or alternative functions. They must be incorporated as one machine in the other, mounted on a common base or housing.

COMPRADOR

A marketing agent firm that has a particularly intrinsic knowledge of the local market and its peculiarities.

COMPRESSION

A term applying to cotton and meaning the compacting of a bale of flat cotton to either standard density or high density.

COMPRESSION IN TRANSIT

Shipment of cotton tendered to the carrier before it is compressed. It is compressed by or at the expense of the carrier before delivery at destination. The cost of such compression in transit is included in the rate itself and is paid for by the carrier out of such rate.

COMPOUND DUTY

Duties that incorporate a specific rate of duty and an ad valorem rate of duty; e.g., $1.00 per doz. + 35%.

COMPUTED VALUE METHOD

Another method of valuing imports for the imposition of ad valorem duties, as provided in the Customs Valuation Agreement.

COMPUTER-TO-COMPUTER COMMUNICATION/ELECTRONIC MAIL

Electronically transported messages between computers, using a modem or specialized contact technology. Also known as Electronic Data Interchange (EDI), it allows for relatively inexpensive relaying of data, including export documents, through the use of a computer and modem.

CONCEALED DAMAGE

A damage to the contents of a package which is in good order externally.

CONCEALED LOSS

A loss from a package bearing no indication of having been opened.

CONCENTRATE

To bring to a common center; to gather into one body or force.

CONCENTRATION POINT

A point at which less than carload shipments are brought together to be re-forwarded as a carload.

CONCESSION

An endeavor by one nation to reduce a tariff rate, increase a quota, or otherwise relieve an economic difficulty to trade, usually in response to like concessions from trading partners.

CONCESSIONAIRE

Organization operating as a distributor for an export/seller/manufacturer with a special authority granted by the manufacturer in a particular market area, usually on an exclusive basis.

CONCESSIONAL SALE

A sale that allows the buyer terms less strict than normal commercial conditions would otherwise dictate.

CONCURRENCE

An arrangement among common carriers allowing the through movement of transportation equipment, through each carrier’s system so as to permit an uninterrupted movement of goods.

CONDITIONALLY FREE

Merchandise that is permitted duty-free status, providing certain conditions can be met, usually evidencing the goods are a product of a given country or will be used for an approved purpose. If the conditions are not met, the goods will be assessed the effective duties.

CONDITIONS OF CARRIAGE

The general terms and conditions established by a carrier in respect of its carriage.

CONFERENCE

A group of vessel operators joined together for the purpose of establishing freight rates.

CONFERENCE CARRIER

A steamship line that is a member of the conference.

CONFERENCE RATE

Rates arrived at by the conference of carriers applicable to transportation, generally water transportation.

CONFERENCE RULING OF I.C.C.

The rulings of the Interstate Commerce Commission expressing the views of the Commission on inquiries involving special facts or requiring an interpretation and construction of the law.

CONFIRMED LETTER OF CREDIT

A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured of payment by the U.S. bank even if the foreign buyer or the foreign bank default.

CONFIRMING HOUSE

An organization whose role is to assist the overseas buyer by confirming, as principal, orders already placed so that the exporter may receive payment from the confirming house as and when the goods are shipped.

CONFISCATION

The taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property.

CONNECTING CARRIER

An airfreight term denoting the carrier to whose services the cargo is to be transferred for onward connecting transportation.

CONSIGNEE To the Top

The individual or company to whom goods are shipped under a Bill of Lading and so named in the bill.

CONSIGNEE MARKS

A symbol placed on packages for identification purposes; generally consisting of a triangle, square, circle, diamond, cross, with letters and/or numbers as well as port of discharge.

CONSIGNMENT

The term used for goods shipped to an overseas agent when an actual purchase has not been made, but when consignee agrees to sell the goods.

CONSIGNOR

Any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of goods, or a freight forwarder who consigns goods on behalf of principal.

CONSOLIDATED SHIPMENT

An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for freight.

CONSOLIDATOR

A person or company that consolidates cargo from a number of shippers for tender to a carrier.

CONSORTIUM

An agreement under which several nations or nationals (usually corporations) of more than one nation, join together for common purpose. It could be for management or exploitation of natural resource as in the case of international petroleum consortiums.

CONSTRUCTION RATE

A non-saleable add-on amount for Tariff publication purposes, to be used only in combination with other rates for carriage from, to or through a specified point.

CONSUL

A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.

CONSULAR DECLARATION

A formal statement made to the consul of a country describing merchandise to be shipped to that consul’s country. Approval must be obtained prior to shipment.

CONSULAR DOCUMENTS

Special forms such as Bills of Lading, Certificates of Origin, or special invoice, signed by the consul of a country to which cargo is destined.

CONSULAR INVOICE

A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country’s custom officials to verify the value, quantity, and nature of the shipment.

CONSULAR VISA

An official signature that the consul of the country of destination affixes to certain shipping documents.

CONSULATE

The official premises of a foreign government representative.

CONSUMER MARKET

A market which buys consumer type products, i.e., foods, household appliances, general merchandise, etc. - usually through retail outlets.

CONSUMER PROFILE

The description of a consumer in a specified area for particular product (age, income, fashion, spending habits, family composition, hobbies, etc.)

CONSUMER RESEARCH

The process of researching/analyzing the constituents of the consumer research market for a particular area and product(s).

CONTAINERS

A box, usually constructed of aluminum fiberglass or sheet steel, used for the transport of cargo. Common sizes include 20’ x 8’ x 8’ which is a twenty foot box and 40’ x 8’ x 8’ which is 40 foot box. All types of containers will have construction, fitting and fastenings able to withstand without permanent distortion, all the stress that may be applied in normal service use of continuous transportation. All containers must bear manufacturer’s specification.

- IMPORTED EMPTY treated as imported articles subject to duty unless specifically exempt.

- NOT IMPORTED EMPTY The usual or ordinary types of shipping or transportation containers or holders, if not designed for or capable of reuse, and containers of usual types ordinarily sold at retail with their contents, are not subject to treatment as imported articles. Their cost is a part of the value of their contents, except that their cost is deductible from dutiable value upon submission of satisfactory proof that they are products of the U.S. which are being returned without having been advanced in value or improved in the condition by any means while abroad.

The usual or ordinary types of shipping or transportation containers or holders if designed for, or capable of reuse, are subject to treatment as imported articles separate and distinct from their contents and are separately subject to duty upon each and every importation to the customs territory of the U.S. unless within the scope of the provision specifically exempting them from duty.

Containers may also be entered under temporary importation bond (T.I.B entry). Their cost if entered under T.I.B would not be included in the entered value of the merchandise. The cost of American made containers which are accorded free entry under HTSUS 9801.00 shall be excluded from the entered value of the merchandise.

When usual containers are considered separately imported articles, all dutiable and non-dutiable charges, including any packing, will be apportioned between the container and their contents.

CONTAINER SHIP

Ocean going ship designed to carry container both internally and on deck.

CONTAINERIZATION

The technique using a boxlike device in which a number of packages are stored, protected and handled as a single unit in transit.

CONTINUOUS BOND

Annual custom bond insuring compliance with all regulations and requirements.

CONTRACT OF CARRIAGE

Applies only to contracts of carriage covered by a bill of lading or any similar document of title, in so far as such document relates to the carriage of goods by sea; it also applies to any bill of lading or any similar document issued under or pursuant to a charter party from the moment at which such instrument regulates the relations between a carrier and holder of the same.

CONTINUOUS CUSTOMS CUSTODY

Merchandise under Customs custody not entering the commerce of the U.S.

CONVENTION VESSEL

A Canadian fishing vessel which, at the time of its arrival in the U.S., is engaged only in the North Pacific halibut fishery and which is therefore entitled to the privileges provided for by the Halibut Fishing Vessels Convention between the U.S. and Canada signed at Ottawa Canada, on March 24, 1950.

CONVERTIBLE CURRENCY

A currency that can be bought and sold for other currencies at will.

CORRESPONDENT BANK To the Top

A bank that, in its own country, handles the business of a foreign bank.

COST OF PRODUCTION

When the District Director of Customs determines that information as to the cost of production or constructed value is necessary in the appraisement of any class or kind of merchandise entered in the U.S., he shall so notify the importer and thereafter invoices of such merchandise shall contain a verified statement by the manufacturer or producer as to the cost of production or constructed value.

COUNTERTRADE

A reciprocal trading arrangement, which includes a variety of transactions involving two or more parties.

COUNTERVAILING DUTIES

Special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.

The law relating to countervailing duties is concerned with payments or bestowals of bounties or grants on any articles or merchandise exported to the United States from a foreign country. The law applies whether the payment or bestowal is made by the foreign country or by any political subdivision thereof or by any group, legal entity, or individual. The law applies whether the payment or bestowal is made upon the manufacture or production of the merchandise, or upon the exportation of the merchandise and whether the payment or bestowal is made directly or indirectly. The law applies to both dutiable and duty-free merchandise.

COUNTRY (MARKING)

The country of origin marking required that every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to an ultimate purchaser in the U.S. the English name of the country of origin of article, at the time of importation into the Customs territory of the U..S. Container of articles exempted from marking shall be marked with the name of country of origin of the article unless the container is also exempted from marking.

COUNTRY OF ORIGIN FOR MARKING PURPOSES

The country of manufacture, production or growth of any article of foreign origin entering into the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin”.

COVER NOTE

The British equivalent of the U.S. “binder”.

CPT - CARRIAGE PAID TO...NAMED PLACEOF DESTINATION

“Carriage Paid To...” means seller pays freight for carriage of goods to named destination. Risk of loss or damage, as well as any cost increase, is transferred from seller to buyer when goods have been delivered into the custody of the main carriage carrier and not at the ships rail. When seller must furnish a bill of lading, waybill, or carrier’s receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.

The cost factors normally included in CPT are merchandise value, marking costs, packing, and all transportation cost to named place of destination. “Main Carriage” transportation will be Prepaid. The CPT term is used for any mode of transportation.

CREDIT RISK INSURANCE

Insurance designed to cover risks of nonpayment for delivered goods.

CUSTOMHOUSE BROKER

An individual or company, licensed by the Treasury Department, engaged in entering and clearing goods through customs.

CUSTOMS

The authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.

CUSTOMS CLEARANCE AGENT

A Customs Broker or other agent of the consignee designated to perform customs clearance services for the consignee.

CUSTOMS (COLLECTION) DISTRICT, LIMITS OF

The geographical area under the jurisdiction of the District Director of Customs including the marginal waters of the 3 mile limit on the seaboard and the waters to the boundary line on the northern and southern boundaries.

CUSTOMS COOPERATION COUNCIL (CCC)

An organization formed in Brussels, Belgium in 1950 to develop a tariff nomenclature more comprehensive than the “Geneva Nomenclature” in use since 1932. Based on 13 years effort it established the CCC Convention in 1963.

CUSTOMS COURT

The court to which importers might appeal or protest decisions made by Customs officers.

CUSTOMS ELECTRONIC BULLETIN BOARD (CEBB)

U.S. Customs electronic bulletin board was developed by customs to allow the trade community access to customs data. CEBB operated from Customs Headquarters, has eight telephone lines that accommodate modem speed of 1200 to 9600 bps, is menu driven, utilizes standard commands in use on other electronic bulletin boards, has on-line HELP, and allows for the system administrator to be paged for assistance during normal working hours. Follow these easy steps to become a CEBB user yourself: Set your Data Bits to 8; Stop Bits to 1; Parity to N; Terminal type to ANSI; Phone number to (202)535-5069. If you experience any problems with making a connection, the VOICE-page number is (202) 343-7715.

CUSTOM STATISTICAL SERVICE

Export service of the International Trade Administration that provides up to date marketing data on thousands of individual products in more than 200 markets. Gathered from both U.S. and U.N. sources, this statistical information provides extracted data by dollar value, quantity, unit value, market share percentage, and varying time frames.

CUSTOMS SUPERVISION

Whenever any action or thing is required by the Customs regulations of the U.S or by any provision of the Customs or navigation laws, to be done or maintained under the supervision of Customs officers, such supervision shall be carried out as prescribed in the regulations or by instructions from the Secretary of the Treasury, or the Commissioner of Customs in particular cases.

In the absence of a governing regulation or instruction, supervision shall be direct and continuous, or by such occasional verification as the principal Customs field officer shall direct if such officer shall determine that less intensive supervision will ensure proper enforcement of the law and protection of the revenue. Nothing in the regulation shall be deemed to warrant any failure to direct and furnish required supervision or to excuse any failure of a party in interest to comply with prescribed procedures for obtaining any required supervision.

CUSTOMS TARIFF

A schedule of charges assessed by the Federal Government on imported goods.

CUSTOMSTERRITORY OF THE UNITED STATES

The term “customs territory of the United States”, as used in the Harmonized Tariff Schedule of the United States, includes only the States, the District of Columbia and Puerto Rico.

CUSTOMS UNION

An agreement between two or more countries in which they arrange to abolish tariffs and other import restriction on each other’s goods and establish a common tariff for the imports of all other countries.

CUSTOM VALUATION

The process where by customs authorities assign a value for duty purposes to imported merchandise.

CUSTOMS VALUATION CODE

A uniform system for valuing imports for the application of customs duties.

CUSTOMS WATERS

That portion of the high seas, not to exceed twelve miles from shore, within which law enforcement personnel of the U.S. are authorized to board foreign craft to enforce American laws.

CWO (Cash with order)

A method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

Cwt

Hundred weight ( U.S.A. is 100 lbs.; United Kingdom 112 lbs.

CY (CONTAINER YARD)

The term CY means the location designated by the Carrier in the port terminal area for receiving, assembling, holding, storing and delivering containers, and where containers may be picked up by the shippers or re-delivered by the Consignees. No container yard (CY) shall be a shipper’s, consignee’s, NVOCC’S, or a forwarder’s place of business unless otherwise provided.

CY/CFS (HOUSE TO PIER)

The term CY/CFS means containers packed by the shippers off the Carrier’s premises and delivered by the shipper to the Carrier’s CY, all at the shipper’s risk and expense and unpacked by the Carrier at the destination port CFS.

CY/CFS (HOUSE TO HOUSE) To the Top

The term CY/CY means containers packed by the shipper off the Carrier’s premises and delivered by the shipper to the Carrier’s CY, all at the shipper’s risk and expense and unpacked by the consignee off the carrier’s premises.