|CIF (Cost, insurance, freight)
||A pricing term indicating that the cost of the goods, insurance, and
freight are included in the quoted price.
|C.I.F. Duty Paid
||The seller includes the estimated duty
in the final price to the buyer in addition to C.I.F.
|C.I.F. & E:
||Price quoted includes currency exchange in addition
||Where cargo is carried on what is essentially a
domestic flight and therefore not subject to international
agreements that fix set rates. Cabotage rates are
negotiable between shipper and airline and apply on
flights within a country and to its overseas territories.
||See Cash Against Documents..
||The Central American Free Trade Agreement (otherwise
known as DR-CAFTA) is a pending agreement that has
been negotiated between the United States, five Central
American countries (Costa Rica, El Salvador, Guatemala,
Honduras, and Nicaragua) and possibly the Dominican
Republic. In order for countries to official join
the trade agreement, CAFTA will need to be ratified
in each country's legislature. Like the North American
Free Trade Agreement, CAFTA will do more than just
eliminate tariffs and trade barriers between those
are cargo ships too large to traverse either the
Suez Canal or Panama Canal (i.e., larger than both
panamax and suezmax vessels). To travel between
oceans, such vessels must round the Cape of Good
Hope (South Africa) and Cape Horn (South America).
Capesize vessels are typically above 150,000 deadweight
tons, and ships in this class include VLCC and ULCC
supertankers (see below) and bulk carriers transporting
coal, ore, and other commodity raw materials. The
term is most commonly used to describe bulk carriers
rather than tankers, however. Source
||The goods/commodities carried or moved by various
modes of of transportation such as sea- and airfreight..
||This refers to the receipt issued by a consolidator
of cargo for shipment by seafreight..
||Condensation on the surface of the cargo: Condensation
can form on the cargo as a result of climatic conditions.
Cargo sweat can always occur when the temperature
of the cargo is lower than or equal to the dew point.
It can also occur during transportation from temperate
latitudes, e.g. from northern-hemisphere winter to
|Caribbean Community And Common Market (Caricom)
||It facilitates economic cooperation through the Caribbean Single Market
and Economy, and coordinates foreign policy among the independent States
in Caribbean. Related organizations are the Caribbean Investment Corporation
and the Caribbean Monetary Fund.
||A customs document permitting the holder to carry or send merchandise
temporarily into certain foreign countries without paying duties or posting
bonds. For a listing of European countries accepting ATA carnets, click here.
||Person or company undertaking for hire the conveyance of goods e.g.
|Case Of Need
||Agent nominated by a principal, to whom the collecting bank may refer
in specified circumstances concerning collections - see the sections on
|Cash Against Documents (CAD)
||A method of payment for goods in which an intermediary acting for the
seller transfers title documents to the buyer upon payment in cash..
|Cash In Advance (CIA)
||This is a method of payment for goods paid in full by the buyer (importer)
to the seller (exporter) before shipment is made. This method is usually
used only for small purchases or when the goods are built to order.
|Cash With Order (CWO)
||A payment method for goods by which cash is paid at the time of order
and the transaction then becomes binding for both the buyer and seller.
|Certificate Of Analysis
||A certificate demanded by some countries as proof of the quality and
composition of food products or pharmaceuticals. The analysis may be made
by a private or government health agency. The certificate must be legalised
by a foreign mission 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 (often notarised) 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
||This is a statement by the exporter with the backing of a Chamber of
Commerce and sometimes an embassy. The document states from which country
the goods emanate.
||Cost and freight. A pricing term indicating that the cost of the goods
and freight charges are included in the quoted price; the buyer arranges
for and pays insurance.
||Is a chapter in the North American Free Trade Agreement (NAFTA) that
deals with foreign direct investment. This chapter has become very controversial
because of a provision that established a member country system of private
arbitration for foreign investors to bring injury claims against governments.
These so called "investor-state" cases are litigated in special international
arbitration bodies, which are closed to public participation, observation
and input. Written to protect foreign investors from governments seizing
their property, corporations have stretched NAFTA's Chapter 11 to undermine
government decisions made to protect public health, the environment and
local communities. [This should not be confused with Chapter 11 of the
US bankruptcy code.]
||This is a rate that is applied to goods where volume exceeds six cubic
metres to the tonne..
||A charter refers to any non-scheduled service where a shipper contracts
for the ad hoc hire of an ship or aircraft from an shipping line or airline.
||A written contract, usually on a special form, between the owner of
a vessel and the "charterer" who rents use of the vessel or a part of
its freight space. The contract generally includes the freight rates and
the ports involved in the transportation.
|Charter Party Bill of Lading
||A bill of lading issued under a charter party. It is generally not acceptable
by banks under letters of credit unless so authorised in the credit.
||Reminder sent by the collecting (or DC issuing) bank to the importer,
repeating a request for payment - see Handling Import Collections.
||The quoted price includes cost of goods and insurance.
||See Cash in Advance..
|CIF (Cost, insurance, freight)
||A pricing term indicating that the cost of the goods, insurance, and
freight are included in the quoted price.
||This term refers to all of the organizations which are not public or
||See Completely Knocked Down..
||This is a customs term and is used to describe the assigning of the
correct definition and category of imported merchandise within the Harmonised
Tariff Schedule of the country in question. Classification is used as
precursor to determining the import duties applicable to the goods concerned.
At times the process of the correct classification of products can be
highly complicated and it is not uncommon for importers and or exporters
to resort to litigation with the customs authorities to ensure that the
correct duty be applied by them (customs) to a given item..
||A class of goods or commodities is a large grouping of various items
under one general heading. All items in the group make up a class. The
freight rates that apply to all items in the class are called class rates.
|Claused Bill of Lading
||A bill of lading which has exemptions to the receipt of merchandise
in "apparent good order" noted.
||Used to describe a draft/cheque with no shipping documents - see Collections
|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 damages
or other irregularities.
|Clean Bill Purchased
||A collection bill purchased with no shipping Purchase documents - see
Financing Export Collections.
|Clean Bill Receivable (CBR)
||BR (Bill Receivable) with no shipping documents. The term is more often
used for non-trade bills such as travellers cheques.
|Clean Collection .
||A draft with no documents
||A draft to which no documents have been attached.
|Clean Import Loan (Cil)
||A loan granted to an importer for payment of import bills, without the
Bank having any claim to the goods.
|Cocom Coordinating Committee on Multilateral Export Controls
||A committee of all NATO countries (except Iceland) plus Japan to coordinate
and control exports of member countries, especially in high-technology
|Codes Of Conduct
||Represent voluntary guidelines for treatment of workers and business
behavior. In some cases the acceptance of inspections by independent agencies
is a key factor of the guidelines.
||An exporter draws a bill of exchange on a customer abroad and gives
the bill to his or her bank to collect funds. The importer must be willing
to pay. The bank charges a fee to collect payment, but is not liable should
the importer refuse to release the funds.
||Bank in the drawee country that is instructed to collect payment from
the drawee - see Collections Introduction.
|Collection Order .
||Form submitted, with documents, to the Remitting/Negotiating Bank by
an exporter with his instructions
||All documents (commercial invoices, bills of lading, etc.) submitted
to a buyer for the purpose of receiving payment for a shipment.
||An aircraft with pallet or container capacity on its main deck as well
as in its belly holds.
||A mix between a container and break-bulk vessel. It can be either self
sustaining or non-self sustaining.
||Used in the European Union,
The codes and the descriptions of goods established on the basis of the combined nomenclature are replaced by those established on the basis of the nomenclatures of the Common Customs Tariff and the Nimexe. It is established on the basis of the harmonized system. The combined nomenclature comprises : (a) the harmonized system nomenclature; (b) Community subdivisions to that nomenclature, referred to as 'CN subheadings' in those cases where a corresponding rate of duty is specified; (c) preliminary provisions, additional section or chapter notes and footnotes relating to CN subheadings.
Each CN subheading has an eight digit code number : (a) the first six digits are the code numbers relating to the headings and subheadings of the harmonized system nomenclature; (b) the seventh and eighth digits identify the CN subheadings
The European Commission established an integrated tariff, of the European Communities, referred to as the TARIC, based on the combined nomenclature.
||The commerce expert on the diplomatic staff of his/her country's embassy
or large consulate.
||This document contains a full itemosed description of goods, along with
packing marks, weights, insurance details and information regarding transportation
routes. Some countries require Chamber of Commerce confirmation of the
invoice's contents; others require all information provided to be given
in their own official language.
||See Purchasing agent.
||An individual, partnership, firm, or corporation that transports persons
or goods for payment.
||A component of free market theory that states that if each nation made
just those things which it could produce cheaper relative to a foreign
country and then trade with other nations to get that which they could
produce relatively cheaper, wealth would expand and everyone would benefit.
|Completely Knocked Down (CKD)
||This is a term often referred to in exports and international trade
when goods are imported into a country in unassembled (i.e. in 'compeletly
knocked down') form and then reassembled in that country usually to facilitate
packing and shipping as may be the case with large machines, but also
to save on import duties as the component parts being imported may attract
a lower duty that the assembled item. This is sometimes refered to as
just 'knocked down' (KD) form and the difference is that in the case of
CKD goods the items are broken down into their most basic parts (i.e.
'completely' knocked down), while with KD goods, they may be shipped in
partly assembled form with only minor assembly required..
||Merchandise free of duty under certain conditions, if the conditions
can be satisfied.
||Countries must adopt specified economic policies as a condition for
receiving a loan from multilateral financial institutions such as the
International Monetary Fund or the World Bank. One example of conditionality
is Structural Adjustment Programs which include stringent austerity measures
that in many cases have had devastating effects on struggling economies.
||A group of vessel operators joined together for the purpose of establishing
|Confirmed Letter Of Credit
||A letter of credit, issued by a foreign bank, the validity of which
has been confirmed by a domestic (South Africa) bank. An exporter whose
payment terms are a confirmed letter of credit is assured of payment by
the local bank even if the foreign buyer or the foreign bank defaults.
See Letter of credit.
||Act of a bank other than the issuing bank assuming the liability for
payment, acceptance or negotiation of correctly presented documents under
a DC - see Confirmation of DCs.
||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.
||The person/company/bank to whom the goods are delivered - usually the
importer or the Collecting Bank - see Handling Import Collections.
||A symbol laced 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.
||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 the consignee has sold them. The consignee sells the goods for commission
and remits the net proceeds to the consignor.
||An arrangement whereby various shippers pool their boxed goods on the
same shipment, sharing the total weight charge for the shipment.
||Combining two or more shipments, usually for the purpose of creating a more economical freight solution.
||An agent which brings together a number of shipments for one destination
to qualify for preferential airline or shipping rates.
||Also called shipper, is the person/company who sends goods by ship,
by land or air. Consolidated Where your exported goods are consolidated
or grouped with others, usually in a container, in order to obtain the
benefits of cheaper shipping rates. Constructive Transfer A legal fiction
which permits acceptance of a Customs entry for merchandise in a zone
before its physical transfer to the Customs territory.
|| A legal fiction which permits acceptance of a Customs entry for merchandise
in a zone before its physical transfer to the Customs territory.
||A government official residing in a foreign country charged with representing
the interests of his country and its nationals..
||A formal statement describing goods to be shipped, made out to the consul
of the country of destination. Approval from the consul must be obtained
prior to shipment.
||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 customs officials to verify the value,
quantity, and nature of the shipment.
||The term container means a single rigid, non-disposable dry cargo, insulated,
temperature controlled flatrack, vehicle rack portable liquid tank, or
open top container without wheels or bogies attached, having not less
than 350 cubic feet capacity, having a closure or permanently hinged door
that allows ready access to the cargo (closure or permanently hinged door
not applicable to flatrack vehicle rack or portable liquid tank). All
types of containers will have constructions, fittings and fastenings able
to withstand without permanent distortion, all the stresses that may be
applied in normal service use of continuous transportation. All containers
must bear manufacturer's specifications.
|Container (air cargo)
||Many types of air cargo containers are offered: The containers are designed
in various sizes and irregular shapes to conform to the inside dimensions
of a specific aircraft.
|Container (sea cargo)
||Designed to be moved inland on its own chassis and can be loaded at
the shippers plant for shipment overseas. Basic types of containers are;
dry van, open top, half high, hi cube, flat rock, tank container, refrigerated
container, insulated container, tilting container. Average outside dimensions
are generally 20, 35, and 40 feet in length, 8 feet wide and 8 feet high
||Containerisation involves the unitizing of cargo through the use of
standard metal containers and is used by both shipping lines and air cargo
lines. Containers provide cargo protection from weather, damage, and theft,
and have helped reduce logistical costs and increase the grow of trade..
||Ocean going ship designed to carry containers both internally and on
deck. Some are self sustaining.
|Container Yard (CY)
||The term CY means the location designated by Carrier in the port terminal
area for receiving, assembling, holding, storing and delivering containers,
and where containers may be picked up by shippers or re-delivered by consignees.
No container yard (CY) shall be a shipper's, consignee's, NVOCC's, or
a forwarder's place of business, unless otherwise provided.
||A liability that arises only under specified conditions, e.g. when a
bank opens a DC it incurs an obligation to make a future payment on condition
that the terms are fully met.
||A tariff established in the agreements resulting from tariff negotiations
under the GATT (see GATT).
||A currency that can be bought and sold for other currencies at will.
||Any corporation which is organized for the purpose of establishing,
operating and maintaining a foreign-trade zone and which is chartered
under a special act of the State within which it is to operate such a
||A State, political subdivision thereof, a municipality, a public agency
of a State, political subdivision thereof, or municipality, or a corporate
municipal instrumentality of one or more States.
||A bank that, in its own country, handles the business of a foreign bank.
|Cost And Freight (C & F)
||A pricing term indicating that the cost of the goods and freight charges
are included in the quoted price.
|Cost And Insurance (C & I)
||A pricing term indicating that the cost of the product and insurance
are included in the quoted price.
|Cost, Insurance And Freight (C.I.F) .
||Same as C&F except that seller also provides insurance up to the named
destination. Cost, Insurance, Freight A pricing term indicating that the
cost of the goods, insurance, and freight are included in the quoted price.
|Cost, Insurance And Freight & Commission (C.I.F & C)
||Same as C.I.F and price includes commission as well.
||The sale of goods or services that are paid in whole or in part by the
transfer of goods or services from a foreign country. Countertrade The
sale of goods or services that are paid for in whole or in part by the
transfer of goods or services from a foreign country.
||These are special and additional duties that are imposed on imported
merchandise when it has been determined that a foreign government has
been subsidising the production of the merchandise being imported and
where the practice is harming a domestic industry. These duties are intended
to offset the benefits of the subsidies being paid by the foreign country
to its domestic producers/exporters of the goods concerned..
|Country of Origin
||The physical stamp, wording, or marking on an article or merchandise
that shows in what country the article or merchandise was produced.
|CPT (Carriage Paid To) And CIP (Carriage And Insurance Paid To)
||Pricing terms indicating that carriage, or carriage and insurance, are
paid to the named place of destination. They apply in place of CFR and
CIF, respectively, for shipment by modes other than water.
|Credit Risk Insurance
||Insurance which protects the seller against loss due to default on the
part of the buyer.
||A person or firm, licensed by the U.S. Treasury Department, engaged
in clearing goods through U.S. Customs. A brokers duties include preparing
the entry form and filing it, advising the importer on duties to be paid;,
advancing duties and other costs, and arranging for delivery to the brokers
client, the trucking firm or other carrier.
||The authorities designated to collect duties levied by a country on
imports and exports.
|Customs Bonded Warehouse
||An authorised warehouse in the importing country where imported goods
may be stored for a certain period of time without the payment of duty
or taxes until such time as they are removed from the warehouse.
||The importer's agent that transacts custom formalities on the importer's
behalf. The customs broker may need to be licensed by the customs service
in the importing country in order to enter and clear goods through Customs..
||Charges imposed by the government of the importing country on imported
(and sometimes exported) goods.
||Territory of the U.S. in which the general tariff laws of the U.S. apply.
||An agreement between two or more countries in which they arrange to
abolish tariffs and other import restrictions on each other's goods and
establish a common tariff for the imports of all other countries.
||See Cash with Order..
||See Container Yard..
||The term CY/CFS means containers packed by shipper of carrier's premises
and delivered by shipper to Carrier's CY, all at shipper's risk and expense
and unpacked by Carrier at the destination port CFS.
||The term CY/CY means containers packed by shipper off Carrier's premises
and delivered by shipper to Carrier's CY and accepted by consignee a t
Carrier's CY and unpacked by consignee off Carrier's premises, all at
the risk and expense of cargo.