Common International Terms

Bonded Warehouse

A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government. This system exists in all developed countries of the world.

Export License

A document indicating that a government has granted a licensee the right to export specified goods to specified countries.

Disbursement Fee

A fee for amounts paid or processed on behalf of a client

Foreign Trade Zone (FTZ)

A foreign-trade zone (FTZ) of the United States is a geographical area, in (or adjacent to) a United States Port of Entry, where commercial merchandise, both domestic and foreign receives the same Customs treatment it would if it were outside the commerce of the United States

NVOCC

A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC) , is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Freight Forwarder

A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods

Letter of Credit

A letter issued by a bank to another bank (typically in a different country) to serve as a guarantee for payments made to a specified person under specified conditions

Full Container Load (FCL)

A standard (twenty or forty-foot) container that is loaded and unloaded under the risk and account of the shipper or consignee. In general, a full container load attracts lower freight rates than an equivalent weight of loose (break bulk) cargo.

Value-added Tax (VAT)

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Less than Container Load (LCL)

A term used to describe the transportation of small ocean freight shipments not requiring the full capacity of an ocean container - Usually less than 20 CBM (cubic meters). A freight forwarder may create a "Consolidation" by putting together multiple LCL shipments

Import License

An official document which allows goods to be imported

Entry Preparation Charges

Charges for the documentation required by U.S. customs and Border Protection, and filed with the appropriate U.S. customs and border protection

Importer of record

Importer of record is a term used in customs law. It refers to an importer, whether an entity or individual, who is responsible for ensuring that legal goods are imported in accordance with the law of the place. Importer is responsible for filing legally required documents. Payment of the assessed import duties and other taxes on the imported goods are to be given by the importer on record.

Incoterm

One of the standardized abbreviated terms established by the International Chamber of Commerce used in export contracts to designate which party should pay costs such as insurance and transport

Bond Fees

Over $2500, bond fee to ensure all duties, taxes and fees to the federal government are paid

Customs Clearance

Preparation and submission of documents required to facilitate an export or imports into the country

Customs Duty

Tariff or Tax on the importation (usually) or exportation (unusually)

Power of Attorney (POA)

The authority to act for another person in specified or all legal or financial matters.

Exchange Rate

The value of one currency for the purpose of conversion to another.