Final Project

Submitted by
Sagar Anand
PGDM –IB
Roll No-05
IN PARTIAL FULFILMENT OF PGDM IN INTERNATIONAL

BUSINESS FOR THE ACADEMIC YEAR -2008-10.
Under the guidance of
Dr. R. Chandran
PIMSR, NEW PANVEL
PILLAI’S INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

NEW PANVEL, NAVI MUMBAI
(A recognized institute and given A rank by NACC and affiliated to AICTE)
EXPORT
2
Export Process & Documentation
PROCESS AND
DOCUMENTATION
PROJECT REPORT
This project report entitled “Export

Process and Documentation” based on my
knowledge and two month work
experience with committed cargo care
Pvt. Ltd. as a summer trainee.
SAGAR ANAND
7/6/2009
COVER PAGE
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ACKNOWLEDGEMENT
Life of human beings is fullof interactions.

No one is self-sufficient by himself whenever anyone is doing
some serious and important worka lot of help from the people
concerned is needed & oneless specially obliged towards them. I
cannot forget acknowledging them in few words as without the
guidance & co-ordination of them in my project report would not
have been possible.
A large number of individual contributed to this project.

I am thankful to allof them for their help and encouragement.
My writing in this project report hasalso been influenced by a
number of website andstandard textbooks. As far as possible, they
have been fully acknowledged at the appropriate place .I express
my gratitude to all of them.
First of all I owe my heartfelt gratitude to my guide prof.

Mr. Guha and prof. Betty for his noble guidance throughout the
completion of the Project.
I would like to extend my heartfelt thanks to Mr. Vikram

singh rawat, Branch Manager of committed cargo pvt. Ltd. Navi Mumbai
Branch for giving me an opportunity to work on this project.
I would also like to thank Ms. Kirti, Senior Executive, of

committed cargo pvt. Ltd. for his guidance, inspiration, and
constructive suggestions, which helped me in the Project.
I must also thank the management of committed cargo

pvt. Ltd. to provide excellent opportunity and environment to be able
to pull my project through. Cooperation of the staff is also gratefully
acknowledged.
Last but not least, also give my sincere thanks to all the
people to directly indirectly have help and encourage me in finding
the way to us collecting the requisite information and completing the
project effectively andtimely.
Sagar Anand
PGDM (IB)
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Roll no. - 05
GUIDE CERTIFICATE
TO WHOMESOEVER IT MAY CONCERN
This is to certify that the project report titled

“Export Process and Documentation” Offered by
Committed cargo Pvt. Ltd. has been prepared by
Sagar Anand, Roll No.- 05, a student of
PGDM
(Post Graduation Diploma in Management), session
(2008-10) with International Business as major area
of specialization. The study was conducted with
special reference to committed cargo care Pvt.
Ltd. C.B.D. Belapur, Navi Mumbai. I recommend
this project for evaluation.
Place:
Date: (Dr. R. Chandran)

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Director
INDEX
Page No.
Important Abbreviations 6
Introduction of study 9
Objective of study 12
Research Methodology 13
Research Design 14
Scope of the Project 15
Limitations of the study 16
Company Profile 17
Organization Chart 25
Benefits Given by company 26
Theoretical background 27
Data Analysis and Interpretations 58
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Findings 68
Bibliography 72
Glossary 73
Important Abbreviations
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INTRODUCTION OF STUDY
This project is all about to know about export import

procedure/ documentation of shipment. This project puts
more focus on to know custom clearness, to make export -
import invoice, to get shipping bill number from custom
department etc. This project will also find out how
Committed cargo Pvt. Ltd. could sustain in the competitive
world by providing vast range of cargo handling through all
instruments which flexible prompt and innovative in
meeting the requirement of the customer. The purpose of
the study was to know about export – import
documentation of seaway in the committed cargo Pvt. Ltd.
The India International Coir Fair-2009, which is
coinciding with the golden jubilee celebrations of the
Central Coir Research Institute, is expected to give further
fillip to coir exports from the country by providing better
visibility to coir products in the global market. The
celebration of the International Year of the Natural Fibre is
also expected to draw greater attention to coir and coir
products.
Exceeding target
At a meeting of representatives of the coir exporters with

the Board officials to discuss issues related to exports, Mr
V.S. Vijayaraghavan, Chairman of Coir Board, thanked
exporters for their collective efforts in surpassing the export
target last year, both in quantity and value, despite
tremendous odds and conspicuous global impediments.
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Forex Earnings
Indian coir exports during 2008-09 had touched 1,94,791

tonnes valued at Rs 634 crore, exceeding the target set for
the year.
Coir export was 1,87,566 tonnes valued at Rs 592 crore

during the previous year.
Performance hopes
With the conduct of the India International Coir Fair-2009

and the celebration of the International Year of Natural
Fibre, the Coir Board was confident of better performance
this year.
Mr Vijayaraghavan hoped that the Coir Exporters

Federation would play a leading role in enhancing the
growth of the coir industry in all its dimensions and
assured of the board's full support in taking timely action to
redress the problems of the exporters.
The need to obtain timely governmental sanction to

participate in overseas fairs to achieve greater mileage in
the export market, setting up of a container freight station
at Pollalchi, Tamil Nadu, in view of its growing contribution
to exports and increasing the frequency of the meeting of
exporters with Board officials also received attention at the
meeting held on Monday. It was decided to hold the next
executive committee meeting of the Board at Bangalore on
May 26.
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Sales turnover
The 30-odd Coir Board showrooms spread over the country

had achieved a sales turnover of Rs 11.19 crore, accounting
for 86.10 per cent of the Rs 13-crore target fixed for the
year 2008-09. The meeting also considered suggestions to
revamp these showrooms and sales depots through out the
country in tune with the growing expectations of all
sections, especially the upper strata of society in order to
remain competitive in the domestic market. In this
background, Mr Vijayaraghavan was confident of achieving
the revised sales target of Rs 15 crore set for the showrooms
in the country for the current year.
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OBJECTIVE OF THE STUDY
The main objectives of the research were:
➢ To know about export import process.
➢ To know what are the documents required before and
after sailing the cargo.
➢ To know different type of container used in shipment.
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RESEARCH METHODOLOGY
Collect data/information about cargo through:
 Primary data collection:-
• E-mail
• Telephone
• Invoice
• Packing List
 Secondary data collection:-
• Invoice
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• Packaging list
• Shipping bill
• Internet
RESEARCH DESIGN
Research design is the based framework, which provides

guidelines for the research process. It is a map or blue print
according to which the research is to be conducts. The research
design specifies the methods for data collection & data analysis
determine the source of data. Most specifically it was a kind of
“Descriptive conclusive research” who takes care of who, when,
where, what, how and why aspects of the investigation further the
researcher used the statistical method to serve he purpose of project,
it permitted the research to derive more accurate generalization
whose reliability could be measured.
CENTRE : ALL OVER INDIA

RESEARCH : EXPLORATORY
RESEARCH TECHNIQUE : QUALITATIVE & QUANNTATIVE
TOOL USED : TELEPHONIC & E-MAIL
DATA SOURCE : PRIMARY & SECONDARY
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SCOPE OF THE STUDY
The scope of marketing research could cover the business

problems relating to the followings.
 Types of consumers that compromise present and potential markets.
 Buying habits and pattern of consumption
 Size and location of different markets, not only in India but also
overseas.
 The prospects for growth or construction for the current markets being
served.
 New mantras of emerging segments.
 Marketing and manufacturing capabilities of competitors.
 Most suitable entry timing.
 The current and prospective competitive position.
 Chances of improvement of current channels.
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LIMITATIONS OF THE STUDY
➢ Not a panacea
➢ Not an exact science
➢ Limitation of time
➢ Erroneous findings
➢ Not exact tool for forecasting
➢ In experience research staff
➢ Narrow conception of marketing research
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COMPANY PROFILE
INTRODUCTION OF THE ORGANIZATION
Overview
An ISO 9001:2000 Company Incorporated head quarter in

the national capital Delhi, India and specializes in handling Import &
Export Cargo. Earning and maintaining a reputation for dependable
and complete worldwide cargo movement solutions with the motto
“Customer Pride” achieved this longevity in the volatile cargo
industry.
Committed Group has established its hub at Los Angeles, Toronto,

Shanghai, Mumbai, Jaipur, Ludhiana and a reliable network of
associate offices in India and world over and is specialized in
forwarding of cargos choosing the most convenient and cost effective
transportation method by air, courier, sea and truck any time &
anywhere around the globe.
Committed Group management has the right mix of experience and

commitment and is fast to adapt to new emerging technology. Its well-
established network and tracking software enables to provide fast and
reliable information to its client. Thus capable of handling –
✔ Packaging
✔ Warehousing
✔ Freight forwarding
✔ Clearance of Export and Import Cargo
✔ Commercial, Diplomatic and Non-Diplomatic Consignment.
✔ Projects
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Mission Statement
“To be focused as a pro-active cargo gateway by anticipating and

reacting to each stage of a shipment's transit with commitment and to
experience strategic growth of a highly respected and recognized cargo
company in the Industry”.
Team
The Committed Group management team brings together leaders with

a wealth of expertise from various industries, including
transportation, logistics, cargo management, professional services
and customer service.
These individuals form a strong foundation that provides

vision and support to a growing team of talented, dedicated
professionals working to adopt and deliver professional freight
forwarding solutions and custom clearance.
The Operational team at Committed Group comprising of more than

50 in-house trained energetic and aggressive group of employees with
several years of experience in the international freight forwarding plus
an protracted experience in the reputable shipping lines and airlines.
Thus, with strong gamut of professional from cargo industry under

one roof help Committed Group to adopt the "Total Freight
Management" approach, a feature of which is the handling of client
cargo on a door-to-door basis.
This approach ensures the correct management of cargo
in a cost-efficient and professional way at competitive price and feels
Committed Group is the RIGHT PARTNER FOR YOU.
Services
 Air Freight
 Custom Clearance
 Document Processing
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 Multi Modal Facility
 3 PL & Supply Chain Management
 Packaging & Warehousing
 Tracking & Tracing
Multi Modal Facility

At Committed Group it is a single window contract for the carriage of
goods by at least two or more different modes of transport. Thus,
providing a permutation-combination between air- ocean-surface
modes to reduce the cost of transportation. This includes Door pick to
Door delivery and a complete logistics support constituting of:
» Origin Pickup/Trucking.
» Warehousing if required.
» Customs Clearance & Documentation at origin.
» Origin charges payable like THC, B/L Fee etc.
» Carriage by Sea or Air by payment of Freight.
» Inland Trucking if required.
» Customs Clearing of goods at destination and Warehousing if need be.
» Door Delivery of the cargo.
Committed Group operates as Multimodal Transport Operator (MTO)

providing the end 2 end services like:
DDP: Delivered Duty Paid Shipments.
DDU: Delivered Duty Unpaid Shipments.
CI Shipments: Cargo picked up on cost and insurances terms
CF Shipments: Cargo picked up on cost and freight paid terms
CIF Shipments: Cargo picked up on cost Insurance and freight paid

terms.
FOB: Free on Board Shipment. Only Port to port or Apt to Apt service
by Carrier.
Ex Works: Pick up if cargo from shipper’s warehouse/factory.

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Multimodal Transport (MT) Document

Services along with logistic documentation evidencing a multimodal
transport contract which can be replaced by electronic data
interchange messages insofar as permitted by applicable law and be
(a)Issued in a negotiable form or,
(b) Issued in a non-negotiable form indicating a named consignee.
Taken in charge means that the goods have been handed over to and
accepted for carriage by the MTO for delivery.
Delivery of the Cargo through Multimodal facility
This is done after completion of various documentation and

formalities after the arrival of the shipment at destination.
The Cargo delivery is subject to various terms and conditions to be

fulfilled by the consignee as listed below:
1. Payment of all applicable charges to the delivery agent of the

carrier.
2. On presentation of Duly Endorsed Original Bill of Lading (for Sea /
Ocean Shipments).
3. For Air shipments, an Authority Letter is required.
4. Original DIC.
5. In case of shipments under L/C, the designated Bank need to
endorse the Bill of Lading or issue
A Bank Release Order in favour of the carrier.
Committed Group as an MTO undertakes to perform or to procure the

performance of all acts necessary to ensure delivery of the goods /
cargo with responsibility:
(a) When the MT document has been issued in a negotiable form

"to bearer", to the person surrendering one original of the
document, or
(b) When the MT document has been issued in a negotiable form

"to order", to the person surrendering one original of the document
duly endorsed, or
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(c) When the MT document has been issued in a negotiable form to a

named person, to that person upon
Proof of his identity and surrender of one original document; if

such document has been transferred "to Order" or in blank the
provisions of (b) above apply, or
(d) When the MT document has been issued in a non-negotiable form,

to the person named as consignee in the document upon proof of his
identity, or
(e) When no document hasbeen issued, to a person as instructed by

the consignor or by a person who has acquired the consignor's or the
consignee's rights under the multimodal transport contract to give
such instructions.
Period of responsibility
The responsibility of Committed Cargo Care Pvt. Ltd. as a

Multimodal Transport Operator (MTO) for the goods under these
Rules covers the period from the time the MTO has taken the goods in
his charge to the time of their delivery.
The multimodal transport operator shall be responsible for

the acts and omissions of its employee or agents, when any such
employee or agent is acting within the scope of his employment, or of
any other person of whose services he makes use for the performance
of the contract, as if such acts and omissions were his own.
Packaging & Warehousing
Packaging at Committed Group
Committed Group employs professional packers and experienced

supervisors who are trained packing and packaging. We specialize in
handling fragile / heavy / oversized cargo. For packaging, we use
material like craft paper / soft papers, corrugated rolls & boxes, air
bubble pack rolls, polythene & polypropylene, and masking tape, etc.
depending upon the requirement.
We design fabrication and assembly of crating material for

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packaging machinery and equipment for storage or shipment and
usage of correct primary protective packing materials to insulate
machinery and equipment from moisture, corrosion and excessive
shock. Crating and the use of machines to execute packing and
moving operations has resulted in accolades and sustained patronage
by clients in India and abroad.
Warehousing at Committed Group
Committed Group offer warehousing facilities to support export -

import activities. The warehousing facilities are very helpful to
accelerate the transportation of goods, especially for cargos with LCL
Status. We use authorised warehouses located worldwide.
Further to our covered warehousing facilities are provided for

storing of FMCG, industrial and high-end sophisticated products on
transit. The warehouses are equipped with dedicated loading and
unloading bays.
At Committed Group storage areas of warehouses are demarcated to
identify each location. Our distribution centres offer ample space for
palletizing, crating and packing services according to customers’
specifications.
3 PL & Supply Chain Management
At Committed Group, we define functional experience, expertise,

speed, flexibility, and ingenuity to manage your freight efficiently
everytime.
As an experienced provider of 3PL (Third Party Logistics) 24 x

7, we provide a total supply chain solution for your logistics and
freight management needs. Our ongoing goal is to simplify the
shipping process for our clients by finding the best rates and then
smoothly coordinating all aspects of the shipment from pick-up to
ship to delivery for our E2E, B2E, B2B, B2C and C2C clientele base.
At Committed Group, we practice logistics. We can develop a

comprehensive project plan for your organization, deploy a project
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team, and remain with your team through the implementation and
start-up. We analyze existing processes, from initiation of an order
through fulfillment, and evaluate modal selection, carrier utilization,
and existing cost structures. We formulate a customized solution for
your unique needs.
Committed group is a hub-based third party fulfilment and logistics
company servicing both domestic and international needs.
Services include: Complete Supply Chain Operations: End-to-

End
➢ Full Case Pick Modules
➢ Split Case Pick Modules
➢ Tilt Tray Sorter
➢ Sliding Shoe Sorter
➢ CAPS Line
➢ Pick-to-Light
➢ Kitting
➢ Product/Process QA Management
➢ Performance-driven Controls
➢ Standard and Customized Reporting
➢ Inventory control
➢ Private and Public Delivery Network
➢ Invoicing
➢ Call Centre Support
➢ Diverse Product Categories Returns processing
➢ Assembly and inbound / outbound freight management.
➢ Accounts Management, and advanced in-house Systems

Support.
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➢ A-frame and Real-Time RF-Controlled Inventory System
Along with state-of-the-art distribution, our 3PL and

SCM services offers clients around the clock full service
fulfilment support. Additional services available: extensive print
support, product packaging and ware housing.
Our 3PL solution and Supply Chain Management enables cost

savings and better route planning
➢ Ability to connect customers and their supply chain partners

through a real-time information hub
➢ 10-15% reduction in transportation costs
➢ Real-time monitoring of inventory, orders and events
➢ Intelligent order sourcing across multiple stocking locations
➢ 10-15% cost improvement for fleets
Tracking & Tracing

Committed Group big advantages offer to our customers is the
one stop online track and trace facility. Through this site you now
have the ability to monitor your consignments online or web access at
any time, day or night, without the need to constantly refer back to
your forwarder. Our system offers access on a 24/7 basis for all
consignments shipped by road, sea and air.
Updated daily, the moment you entrust your consignment

given a reference number and subsequently logged on our system the
same day. All customers are assigned unique login details to allow
immediate tracking of their consignments. The unique login codes
ensure total security by baring others from viewing the same
information. The accessible information is kept on a secure location
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and is accessed through a strict password system. The information
available from our track and trace facility is flexible and can be
tailored to your individual needs. Thus, a global network of contacts
and our combined wealth of experience ensure that your shipments
are transported effectively and efficiently. Committed Group Track
and Trace facility is available for obtaining your freight consignment
status with most major Airlines.
ORGANISATION CHART
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BENEFITS GIVEN BY COMPANY

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➢ Origin Pickup/Trucking.
➢ Warehousing if required.
➢ Customs Clearance & Documentation at origin.
➢ Origin charges payable like THC, B/L Fee etc.
➢ Carriage by Sea or Air by payment of Freight.
➢ Inland Trucking if required.
➢ Customs Clearing of goods at destination and

Warehousing if need be.
➢ Door Delivery of the cargo.
THEORETICAL BACKGROUND
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LOGISTICS SYSTEM
Logistics is defined by the council of Logistics, Ohio USA as

the
Process of planning, implementing and controlling the efficient, co-

effective flow and storage flow and storage of raw materials, in process
inventory finished goods and related information from point of origin
to point consumption. More simply, the objective of Logistics System
is that the right products reach the right place in the right quantity at
the right time to satisfy customer demand.
ELEMENTS OF LOGISTICS SYSTEM
➢ Nature of Product
➢ Location of Manufacturing Plant
➢ Availability of infrastructure such as Road
➢ Availability of different modes of transportation
➢ Dealer/Distributor Network
➢ Government Policy
ELEMENTS OF LOGISTICS SYSTEM
MODE OF TRANSPORTATION
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➢ AIR TRANSPORT
➢ OCEAN TRANSPORT
➢ RAIL TRANSPORT
➢ ROAD TRANSPORT
OCEAN TRANSPORT
More than 95 per cent of international trade is conduced by sea
routes since ancient times, sea routes are being used for
transportation of cargo from one continent or country to Coastal
shipping is also used for transporting the cargo from one port
within the country to another.
For example in India the cargo can be transported from Chennai

port to Visakhapatnam port using the costal shipping route.
Sea routes are used for carrying bulj

commodities like such as coaling and thermal coal mires,
fertilizers rock phosphate etc, and liquid go like crude oil
ammonium acids etc Ideally the goods with high volume and kiw
vakye are suited die ocean transport in the era of containerisation
even the high value cargo can be safely enabled the cargo carrying
capacities of the ship to increase many fold.
In 1956, the first containerised ship belonging

to sea land corp. carried 58 twenty feet containers. The modern
ships have the capacity to carry 7000 containers.
One of the biggest ships owned by Maersk-sea

land is 1,138 feet long from end to end and 140 feet wide at mid
ship. Such ships are called Post-Panamax ship.
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Cargo ship categorised into followings:-
 Liners ships : Liners ship represent the organized sector

of the shipping industries due to their fixed schedules of arrival and
departure, Pre-determined voyages and trade routes and published
ocean freightrates. Liner shipping is governed by shipping conference
and offers the following advantage to shippers:-
✔ Regular sailings to scheduled ports of call.
✔ Stable freight rates for a long period of time which helps the
shipper to quote C & F prices with confidence.
✔ Uniform rates for all shippers.
✔ Coverage of wide range of ports.
✔ Rebates of freight rates based on loyalty agreements.
 Tramp ships:- Tramp ships on the other hand have

the following characteristics –
✔ They are free to move anywhere on the high seas at their

will.
✔ Their voyage routes and schedules are flexible.
✔ They travel from the port to another port o various trade

routes looking for the cargo and carrying the same to
various routes looking for the cargo and carrying the same
to various destinations around the world.
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✔ They arrive or depart without a fixed route or

schedule.
✔ They fix their voyages according to availability of cargo

and as per the requirement of the shippers of these
cargoes.
✔ The freight rates of tram ships depend upon the

demand and supply conditions in the shipping
industry. If there is a glut of shipping space the tramp
freight rates plummet. Whereas in case of shortage of
shipping space, the tramp freight rates shoot up.
✔ The cargo space on the tramps is booked by the

brokers located in major port cities like New York,
London, Rotterdam Hamburg, and Hong- Kong etc.
They work as a link between tramp operators and
shippers.
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TYPE OF CONTAINER USED IN

SHIPMENT
HIGHCUBE REEFERS
BULKERS
FLAT RACKS DRY CONTAINER
TANKS ROOLTRALERS OPEN TOPS
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STANDARD CONTAINER
STANDARD CONTAINERS:
Sta nd ard 20'
inside inside Inside door door tare Maxi

capacity
length width height width height weight cargo
19'4" 7'8" 7'10" 7'8" 7'6" 1,172CuFt 4,916lbs 47,900lbs
5.900m 2.350m 2.393m 2.342m 2.280m 33.2CBM 2,230Kg 21,770Kg
Sta nd ard 40'
inside inside Inside door door tare Maxi

capacity
FLAT RACK CONTAINER
Fl at r ac k 20'
inside inside inside door door tare maxi

capacity
18'5" 7'3" 7'4" - - - 5,578lbs 47,333lbs
5.620m 2.200m 2.233m - - - 2,530Kg 21,470Kg
Fl at r ac k 40'

capacity
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39'7" 6'10" 6'5" - - - 12,081lbs 85,800lbs
12.080m 2.438m 2.103m - - - 5,480Kg 39,000Kg
FLATT RACK COLLAPSIBLE CONTAINER
Fl at rac k Co ll ap sib le 20'
inside inside inside door door tare Maxi

capacity
18'6" 7'3" 7'4" - - - 6,061lbs 61,117lbs

5.618m 2.208m 2.233m - - - 2,750Kg 17,730Kg
Fl at rac k Co ll ap sib le 40'

capacity
39'7" 6'10" 6'5" - - - 12,081lbs 85,800lbs

12.080m 2.126m 2.043m - - - 5,800Kg 39,000Kg
REEFER COINTAINER
Ree fer 20'

capacity
17'8" 7'5" 7'5" 7'5" 7'3" 1,000CuFt 7,040lbs 45,760lbs
5.425m 2.275m 2.260m 2.258m 2.216m 28.3CBM 3,200Kg 20,800Kg
Ree fer 40'
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capacity
37'8" 7'5" 7'2" 7'5" 7'0" 2,040CuFt 10,780lbs 56,276lbs
11.493m 2.270m 2.197m 2.282m 2.155m 57.8CBM 4,900Kg 25,580Kg
REEFER HIGH CUBE CONTAINER
Ree fer High Cu be 40'
inside Inside inside door door tare maxi

capacity
37'11" 7'6" 8'2" 7'6" 8'0" 2,344CuFt 9,900lbs 57,761lbs
11.557m 2.294m 2.500m 2.294m 2.440m 66.6CBM 4,500Kg 25,980Kg
HIGH CUBE CONTAINER
HIGH CUB E 40'
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inside Inside inside door door tare Maxi

capacity
39'5" 7'8" 8'10" 7'8" 8'5" 2,694CuFt 8,750lbs 58,450lbs
12.036m 2.350m 2.697m 2.338m 2.338m 76.3CBM 3,970Kg 26,510Kg
PLATEFORM CONTAINER
PL ATFO RM 20'

capacity
19'11" 8'0" 7'4" - - - 6,061lbs 52,896lbs
6.058m 2.438m 2.233m - - - 2,750Kg 24,000Kg
PL ATFO RM 40'

capacity
40'0" 8'0" 6'5" - - - 12,783lbs 86,397lbs
12.180m 2.400m 1.950m - - - 5,800Kg 39,200Kg
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International Transaction
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EXPORT PROCEDURE AND DOCUMENTATION
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In India, ships transport more than 90 per cent of the cargo. It

therefore interesting to study the export processed by ship
documentation related to it.
Processing of an export order-----
i. Exporter operation starts with the receipt of enquiry by the

exporter from importer. Bar on the enquiry exporter submits
his offer giving complete details of products technical specific
price delivery payment terms etc.
ii. After the process negotiations importer sends a purchase order

follow by letter of credit (if applicable).
iii. The exporter manufactures the goods according to the

specification given in purchase order.
iv. As soon as the goods are ready the exporters invites the
representative of Export inspections agency (EIA) for pre
shipment inspection and obtain the certificate of inspection.
v. After that, the exporter prepared following documents:----
✔ INVOICE
✔ PACKING LIST
✔ ARE1 FROM EXSICE DEPARTMENT
✔ MARINE INSURANCE POLICY
✔ COPYOF PURCHASE ORDER / L/C
vi. Above those documentation sends to CHA by exporter.
vii.Based on these documents CHA agent completes the octroi

formalities, obtain port permit and prepare shipping bill which
is a customs documents.
viii.Custom department check the export cargo on the basis of

information provided on the shipping bill. If satisfy then cargo
allow to loaded on the board of ship.
ix. The shipping line gives mate receipts to CHA agents after the
payment of ocean freights and port due obtains the bill of
lading (B/L) from shipping line .B/L is a proof of dispatch of
cargo and also a negotiable document.
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x. After that, CHA agent send various documents back to exporter
which is—
✔ Customs attested invoice
✔ Copy of shipping bill
✔ Full set of non board bill of lading.
✔ Copy of purchase order or L/C
✔ Copies of ARE1 Form
✔ SDF form
xi. After that the exporter submitted above these documents for
negotiation to the bank which include :----
✔ Commercial invoice
✔ Packing list
✔ SDF form
✔ Original copy of purchases order
✔ Certificate of origin
✔ Bill of exchange
✔ Shipment advice
After that, bank scrutinizes these documents and if found correct

make payment to exporter against documentations.
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INVOICE
CERTIFICATE
CUSTOMS DOCUMENT
EXPORT
TRANSPORT DOCUMENT
DOCUMENTATION
EXCHANGE CONTROL
DOCUMENT.
PAYMENT
DOCUMENT.
MISCELLANEOUS DOCUMENT
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EXPORT INVOICE
ELEMENT OF EXPORT INVOICE:-
➢ Exporter
➢ Consignee
➢ Invoice No. and Date
➢ Exporter Ref.
➢ Buyer order no and date
➢ Other reference
➢ Buyer (other than consignee)
➢ Country of origin of goods
➢ Country of final destination
➢ Terms of delivery and Payment
➢ Pre-carriage by
➢ Place of receipt by pre-carrier
➢ Vessel/ Flight no.
➢ Port of loading
➢ Port of discharge
➢ Final Destination
➢ Marks and Nos. / No & Kind of pkgs.
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➢ Item code
➢ Description of goods
➢ Net weight
➢ Gross weight
➢ Quantity
➢ Rate CIF EURO
➢ Amount CIF EURO
➢ Amount in words
➢ Declaration:
➢ Authorised signature
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DATA ANALYSIS
How Big is a Cubic Meter?
Calculation: Length x Width x Height divided by 1728 = cubic feet

divided by 35 = cubic meters.
23 BOOK 11 MEDIUM
BOXES BOXES 8 LARGE BOXES
= one cubic meter
13x13x17 inches
18x18x17 inches 18x18x24 inches
1.5 cubic feet
3.1 Cubic Feet 4.5 Cubic Feet
0.043 Cubic
0.091 Cubic Meters 0.125 Cubic Meters
Meters (approx) (approx)
(approx)
Or mix and match:
= one cubic
meter
= one cubic
meter
= one cubic
meter
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Air freight calculation
Introduction
Airlines that are members of the International Air Transport
Association (IATA) are bound by their membership to
comply with tariffs issued by IATA. However since 11th
September 2002, airfreight rates are now extremely
negotiable. Airfreight rates cover transportation from the
airport of loading to the airport of discharge.
These rates do not include the following:
• Collection of air cargo from the consignor's/exporters
premises
• Delivery of cargo from the airport of destination to the
consignee's premises
• Storage of cargo before or after loading
• Customs clearance in the country of destination
• Any duties and taxes that may have to be paid
• Insurance
Chargeable/volumetric weight
Airline freight rates are based on a "chargeable weight",
because the volume or weight that can be loaded into an
aircraft is limited. The chargeable weight of a shipment will
be either the "actual gross mass" or the "volumetric weight",
whichever is the highest. The chargeable weight is
calculated as follows: 1 metric ton = 6 cubic metres. In
order to establish if the cargo will be a weight or volumetric
based shipment.
Step 1
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Measure the parcel/cargo along the greatest length, width

and height of that parcel. For example; 100 cm (L) X 100
cm (W) X 100 cm (H) = 1 000 000 cm3. Next, weigh the
parcel; assume it weighs 150kg.
Step 2
Now divide the 1 000 000 cm3 by 6 000 = 166,66 kg. You
have now converted the centimeters (cm) into kilograms (kg)
Step 3
Now compare the weight to the volume. If the weight is 150
kg then the airline would base the freight on the higher
amount being: 166,66 kg
Air freight calculations
The airline calculates freight based on weight or volume,
which ever yields the greatest amount. Airlines quote freight
rates based on the following rate structures:
• A basic minimum charge per shipment.
• General cargo rates quoted for per kilogram. This rate
applies without reference to the nature or description
of the parcel, which is to be freighted.
• Specific commodity rates apply to certain goods of
specific descriptions, such as fresh produce. These
rates are lower than the general cargo rate, and they
provide breakpoints at which the level of the rate
reduces further.
Example:
0 - 50 Kg @ R22.00/per kg
50 - 100 Kg @ R19.00 per kg
100 - 150 Kg @ R17.00 per kg
Unit Load Device charges
These rates are charged per container/ULD without
reference to the commodity loaded therein. Calculation of
freight rates:
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Let us assume the following figures:

The freight rate is R18.00 per kg
The weight of the parcel is 300 kg
The dimensions are: 114,6 cm X 120,4cm X 132,5 cm
(round the cm's up or down)
Therefore: 115 cm X 120 X 133 cm = 1 835 400 divide by 6

000 = 305.9 kg (having converted cm's to kg's now round
up the kg's to the next half a kilogram = 306 kg.
As the freight rate quoted by the airline is R18.00 per kg,
we calculate the price as follows:
306 kg X R18/kg = R5 508.00
The freight rate will not be calculated on the actual mass
300 kg X R18.00 = R5 400.00 as the airline will always use
the greater amount either the kg, or volumetric weight.
Consolidation
Consolidation is an economical method of moving cargo by
employing a consolidator. The consolidator receives cargo
from a number of suppliers/shippers and then combines
these cargoes into one consignment by packing the goods
into a Unit Load Device. The consolidator then books the
Unit Load Device with an airline. The supplier/shipper
would have a contract of carriage with the consolidator of
the cargo and in turn the airline would have a contract of
carriage with the consolidator. The airline would issue an
air waybill to the consolidator when accepting the Unit Load
Device and in turn the consolidator would issue the
supplier/shipper with a house air waybill.
The air waybill
The air waybill, unlike the ocean bill of lading is not a
document of title to the goods described therein, however it
does perform several similar functions these are:
• It is a receipt for the goods
• It is evidence of the contract of carriage between the
exporter and the carrier
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• It incorporates full details of the consignor/shipper,

the consignee/receiver and the consignment/goods
• It is an invoice showing the full freight amount
• It must be produced, be it in an electronic format, at
the airport of discharge for clearing purposes
All copies of the air waybill, together with the commercial
invoice, packing list, certificate of origin and any other
document which may be necessary for clearing the goods
through customs, these documents are carried in the flight
captain's bag.
Sea freight calculations

Introduction
Seafreight calculations can broadly be divided into two
main components; breakbulk and containerised. In this
section we deal with how you should calculate the freight
costs of both of these two types of seafreight.
Break bulk cargo calculations
Break bulk cargo, is cargo that is unitised, palletised or
strapped. This cargo is measured along the greatest length,
width and height of the entire shipment. The cargo is also
weighed. Shipping lines quote break bulk cargo per "freight
ton", which is either 1 metric ton or 1 cubic metre, which
ever yields the greatest revenue.
Example:
A case has a gross mass of 2 Mt.
The dimensions of the cargo are:
2.5 X 1 X 2 metres
The tariff rate quoted by the shipping line is: USD 110.00
weight or measure (freight ton)
Step 1
Multiply the metres 2.5 X 1 X 2 = 5 metres Compare to the
mass = 2 Mt.
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Step 2
Calculate the freight with the greater amount either the
mass or the dimension. 5 X USD 110.00 = USD 550.00
Freight would be paid on the measurement and not the
weight. All shipping lines carrying cargo in a break-bulk
form insist on payment based on a minimum freight charge
which is equivalent to one freight ton, one cubic metre or
one metric ton.
Full Container load calculations and surcharges

Freight rates for containers are based on the container as a
unit of freight irrespective of the commodity or commodities
loaded therein, (FAK) Freight All Kinds. The shipping lines
quote per box (container) either a six or twelve metre
container. From time to time, abnormal or exceptional costs
arise in respect of which no provision has been made in the
tariffs. For example a shipping line cannot predict the
movement of the US Dollar or the sudden increase of the
international oil price. These increases have to be taken
into account by the shipping line in order to ensure that the
shipping line continues to operate at a profit. These
increases are called surcharges. All shipping lines
accordingly retain the right to impose an adjustment factor
upon their rates taking into account these fluctuations. All
surcharges are expressed as a percentage of the basic
freight rate. Surcharges are regularly reviewed in the light
of unforeseen circumstances, which may arise and bring
cause for a surcharge increase.
Bunker Adjustment Factor (BAF)
"Bunkers" is the generic name given to fuels and lubricants
that provide energy to power ships. The cost of bunker oil
fluctuates continually and with comparatively little
warning.
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Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
US Dollar 1 250.00 X 5.2% = US Dollar 65.00
Add the two amounts together
Freight rate: U S Dollar 1 315.00
Currency Adjustment Factor (CAF)
The currency adjustment factor is a mechanism for taking
into account fluctuations in exchange rates, these
fluctuations occur when expenses are paid in one currency
and monies earned in another by a shipping company. The
currency adjustment factor is a mechanism for taking into
account these exchange rate fluctuations. It is always
expressed as a percentage of the basic freight and is subject
to regular review.
Example:
+ CAF 6.3%
War Surcharge
The outbreak of hostilities between nations can have a
serious effect upon carriers servicing international trade
even though they may sail under a neutral flag. Carriers
sailing within the vicinity of a war zone may impose a war
surcharge on freight to compensate for the higher risks
involved and the higher levels of insurance premium, which
they may be obliged to pay.
Example:
+ WAR 5%
US Dollar 1 250.00 X 5% = US Dollar 62.50
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All of the above surcharges may be applied to a single
freight rate.
Example:
+ BAF 5.2%
+ CAF 6.3%
+ WAR 5%
Total amount of surcharge 16.5%
(add to freight rate)
US Dollar 1 456.25
Port Congestion Surcharge
Congestion in a port for a period of time can involve
considerable idle time for vessels serving that port. When a
ship lies idle, this creates a huge amount of loss for the
ship's owner. Shipping lines therefore have the right to
impose a surcharge on the freight to recover revenue lost.
Another factor which influences port congestion surcharge
would be labour disputes. Port congestion surcharges are
calculated as a percentage of the freight rate as expressed
in the previous examples.
Consolidation services
The consolidator or groupage operator hires a container
from a shipping line and then sells that space to his
clients/exporters. The benefit for the exporter is that small
quantities which, would not fill a full container load, can be
shipped by sea freight in a shipping container as an
alternative to air freighting the goods. The consolidator
would charge per metric ton or cubic metre, which ever
yields the greatest. Example: US Dollar 89.00 Weight or
Measure. The shipping line would have a contract of
carriage with the consolidator and in turn the consolidator
would have a contract of carriage with the exporter. The
consolidator would be issued with an combined through bill
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of lading from the shipping line and then present the

exporter with a house bill of lading (See bill of lading below)
The bill of lading
The bill of lading performs the following functions:
• A contract of carriage between the shipper of the cargo
and the carrying shipping company.
• The name of the shipper and the receiver of the goods
the consignee.
• The contents of the packages as declared by the
shipper.
• Shipping details such as: port of loading and the port
of discharge.
• The bill of lading is a freight invoice and indicates if
the freight costs have been prepaid by the exporter or
will be paid by the importer, "freight collect".
• The bill of lading states the number of packages,
weight and dimension of the shipment.
• It is a document of title to the goods stated thereon.
Every original bill of lading signed by or on behalf of the
shipping company is a document of title to the underlying
goods. This special function of a bill of lading is achieved by
a form of words which state: "In witness whereof the
undersigned on behalf of the shipping company has signed
three bills of lading all of this tenor and date, one of which
being accomplished the others to stand void".
"Accomplishing" the bill of lading requires the surrender to
the shipping line or its agents in the port or place of
destination one of the signed original bills of lading duly
endorsed by the consignee/importer. Unless and until one
of the original bills of lading as described above is
surrendered, the shipping line will not release the cargo to
the consignee/importer. Upon surrender of any one of the
originals the other originals bills of lading become void.
Endorsed Bills of Lading
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Bills of lading can only be issued with the words "shipped

on board", if the cargo has actually been loaded onto the
named vessel at the port of loading. By insisting that the
exporter supplies the importer with a "shipped on board"
bill of lading, the importer obtains conclusive evidence that
the goods have been loaded on board the intended vessel.
Some importers insist that the exporter presents "shipped
on board" bills as a condition for payment. "Received for
shipment", bills of lading can be issued as soon as the
goods have been delivered into the custody of the carrying
shipping company or its agent either at the point of receipt
or at the port of loading. Thus, a 'received for shipment",
bill of lading will only indicate the ship in which the cargo is
intended to be loaded on. The risk remains that the loading
may, for many reasons delayed or the cargo may not be
loaded at all.
Banks responsible for the payment of funds in payment for
goods under letters of credit will not release the funds if the
bill of lading has been endorsed "received for shipment".
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FINDINGS
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IMPORTER
EXPORTER
CERTIFICATE INVOICE PACKING GR ARE1 MARINE
OF LIST FORM FORM INSURANCE
INSPECTION POLICY
CUSTOMS SHIPPING FULL COPY DUPLICATE DUPLICATE

ATTESTED BILLS SET OF OF L/C COPY ARE COPY GR
INVOICE ON FORM FORM
BOARD
BILL OF
LADING
C & F AGENT
EXPORTER
COMMERCI PACKIN DUPLICA NEGOTIAB ORIGI CERTIFICATE BILL OF
AL INVOICE G LIST TE COPY LE COPIES NAL OF ORIGIN EXCHANG
GR FORM OF B/L L/C E
NEGOTIATING BANK
L/C AMOUNT SHIPPING DOCUMENT
EXPORTER IMPORTER
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BIBLIOGRAPHY
Export Import Documentation - Prof. D.C. pai

Logisticsin International Business - Prof. Rajeev Aserkar
REFERENCES – INTERNET
www.committedgroup.com
www.google.co.in
www.ask.com
www.exit.net
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GLOSSARY INTERNATIONAL FREIGHT

TERMS
ABI - Automated Brokerage Interface: Is a system
available to U.S. Customs Brokers with the computer
capabilities and customs certification to transmit and
exchange customs entries and other information,
facilitating prompt release of imported cargo.
Acceptance: A time draft (or bill of exchange) which the
drawee has accepted and is unconditionally obligated to
pay at maturity. Drawee's act in receiving a draft and thus
entering into the obligation to pay its value at maturity. An
agreement to purchase goods under specified terms.
Add Hoc Charter: A one-off charter operated at the
necessity of an airline or charterer.
Ad Valorem ("according to the value"): A fixed
percentage of the value of
goods that is used to calculate customs duties and taxes.
Admiralty Court: Is a court having jurisdiction over
maritime questions
pertaining to ocean transport, including contracts,
charters, collisions, and cargo damages.
Advance Against Documents: Load made on the
security of the documents
covering the shipment.
Advising Bank: A bank that receives a letter of credit
from an issuing bank,
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verifies its authenticity, and forwards the original letter of

credit to the exporter without obligation to pay.
Advisory Capacity: A term indicating that a shipper's
agent or representative is not empowered to make
definite decisions or adjustment without the approval of
the group or individual represented.
Affiliate: Is a company that controls, or is controlled by
another company, or is one of two or more commonly
controlled companies.
Airfreightment: An agreement by a steamship line to
provide cargo space on a vessel at a specified time and
for a specified price to accommodate an exporter or
importer, who then becomes liable for payment even
though he is later unable to make the shipment.
Agency Agreement: The steamship line appoints the
steamship agent and
defines the specific duties and areas of responsibility of
that agent.
Air Cargo Agent: Is a type of freight forwarder who
specializes in air cargo and acts for airlines that pay him a
fee (usually 5%). He is registered with theInternational Air
Transport Association, IATA (See also Air Freight
Forwarder; Forwarder, Freight Forwarder, Foreign Freight
Forwarder).
Air Freight Forwarder: Is a type of freight forwarder
who specializes in air
cargo. He usually consolidates the air shipments of
various exporters, charging them for actual weight and
deriving his profit by paying the airline the lower
consolidated rate. He issues his own air waybills to the
exporters, is licensed by the CAB (Civil Aeronautics Board)
and has the status of an indirect air carrier (See also Air
Cargo Agent, Forwarder, Freight Forwarder, Foreign Freight
Forwarder.)
Air Waybill: A bill of landing that covers both
international and domestic flights transporting goods to a
specified destination. This is a non-negotiable documents
of air transport that serves as a receipt for the shipper,
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indicating that the carrier has accepted the goods listed

and obligates itself to carry the consignment to the airport
of destination according to specified conditions.
AITA: International Air Transport Association, IATA,
(French, German).
All-Risk Clause: Is an insurance provision that all loss or
damage to goods is insured except that of inherent vice
(self caused). (See All Risk Insurance).
All Risk Insurance: Is a clause included in marine
insurance policies to cover loss and damage from external
causes, such as fire, collision, pilferage, etc. but not
against innate flaws in the goods, such as decay,
germination, nor against faulty packaging, improper
packing/ loading or loss of market, nor against war,
strikes, riots and civil commotions (See Marine Insurance)
Alongside: A phrase referring to the side of a ship. Goods
to be delivered
"alongside" are to be placed on the dock or barge within
reach of the transport ship's tackle so that they can be
loaded abroad the ship.
Arbitration Clause: Is a standard clause to be included
in the contracts of
exporters and importers, as suggested by the American
Arbitration Association. It states that any controversy or
claim will be settled by arbitration in accordance with the
rules of the American Arbitration Association.
Assignment: The transfer of the rights, duties,
responsibilities and/or benefits of an agreement, contract,
or financial instrument to third party.
Assignment of Proceeds: A stipulation within a letter of
credit in which some or all of the proceeds are assigned
from the original beneficiary to one or more additional
beneficiaries.
A.T.: American Terms (Marine Insurance) A term used to
differentiate between the conditions of American Policies
from those of other nations, principally England.
Automated Brokerage Interface (ABI): An electronic
system allowing
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customhouse brokers and importers to interface via

computer with the US
Customs Service for transmitting entry and entry
summary data on imported merchandise.
Automated Commercial System (ACS): The electronic
system of the US
Customs Service, encompassing a variety of industry
sectors, that permits online access to information in
selected areas.
Automated Manifest System (AMS): The electronic
system allowing a manifest inventory to be transmitted to
the US Customs Service data center by carrier, port
authority or service center computers.
BAA: British Airports Authority
BACA: Baltic Air Charter Association
Balance of Trade: The difference between a country's
total imports and exports; if exports exceed imports,
favorable balance of trade exists, if not, a trade deficit is
said to exist.
Barter: Trade in which merchandise is exchanged directly
for other merchandise without use of money. Barter is an
important means of trade with countries using currency
that is not readily convertible.
B/B: (See Break-Bulk Cargo)
Belly Cargo: Freight accommodation below the main
deck.
Beneficiary: A firm or person on whom a letter of credit
has been drawn. The beneficiary is usually the seller or
exporter.
Bermuda Agreement: An agreement concluded in 1946
between the U.K. and the U.S., designed to regulate future
international air traffic. Most governments accept its
principles and follow it inter alia by limiting traffic rights
on international routes to one or two carriers.
Berth: Is the place beside a pier, quay or wharf where a
vessel can be loaded or discharged.
Berth Liner Service: Is a regular scheduled steamship
line with regular
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published schedules (port of call ) from and to defined

trade areas.
Berth or Liner Terms: Is an expression covering
assessment of ocean freight rates generally implying that
loading and discharging expenses will be for ship owner's
account, and usually apply from the end of ship's tackle in
port of loading to the end of ship's tackle in port of
discharge.
Bill of Lading: A document that establishes the terms of
a contract between a shipper and a transportation
company under which freight is to be moved between
specified points for a specified charge. Usually prepared
by the shipper on forms issued by the carrier, it serves as
a document of title, contract of carriage, and a receipt for
goods. Also see Air Waybill and Ocean Bill of Lading.
Bonded Warehouse: A warehouse storage area or
manufacturing facility in
which imported goods may be stored or processed without
payment of customs duties.
Brussels Tariff Nomenclature Number (BTN): The
customs tariff number used by most European nations.
The United States does not use the BTN, but a similar
system known as the Harmonize Tariff Schedule.
CAA: Is the Civil Aviation Authority. Government body
responsible for regulating
U.K. airlines.
Cabotage: Is 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.
CAD Can have two meanings in the industry
CAD: The acronym meaning "cash against documents," 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.
CAD/CAM: Computer Aided Design/Computer Aided
Manufacturing.
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Cage: The transporting of goods by truck to or from a

vessel, aircraft, or bonded warehouse, all under customs
custody.
Cargo: Is merchandise/commodities/freight carried by
means of transportation.
Cargo Receipt: Is a receipt of cargo for shipment by a
consolidator (used in
ocean freight).
Carnet: A customs document permitting the holder to
carry or send merchandise temporarily into certain foreign
countries (for display, demonstration, or similar purpose)
without paying duties or posting bonds.
Carriers(s) Containers or Shipper(s) Containers: The
term Carrier(s)
Container(s) or Shipper(s) Container(s) means containers
over which the carrier or the shipper has control either by
ownership or by the acquisition thereof under lease or
rental from container companies or container suppliers or
from similar sources. Carriers are prohibited from
purchasing, leasing or renting shipper owned containers.
Carrier, Common: A public or privately owned firm or
corporation that transports the goods of others over land,
sea, or through the air, for a stated freight rate. By
government regulation, a common carrier is required to
carry all goods offered if accommodations are available
and the established rate is paid.
Cartel: Is an association of several independent national
or international
business organizations that regulates competition by
controlling the prices, the production, or the marketing of
a product or an industry.
Cash in Advance (C.I.A.): Payment for goods in which
the price is paid in full before shipment is made. This
method is usually used only for small purchases or when
the goods are built to order.
Cash Against Documents (CAD): Payment for goods in
which a commission house, or other intermediary,
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transfers title documents to the buyer upon payment in

cash.
C.C.E.F.: Is a Customs Centralized Examination Facility.
Certificate of Analysis: Is 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
the goods were in apparent good condition immediately
prior to shipment.
Certificate of Manufacture: A statement in which a
producer specifies where his goods were manufactured,
certifies that manufacturing has been completed, and
confirms that the goods are at the buyer's disposal.
Certificate of Origin: A statement signed by the
exporter, or his agent, and
attested to by a local Chamber of Commerce, indicating
that the goods being shipped, or a major percentage of
them, originated and were produced in the exporter's
country.
CES: Is a Customs Examination Station
C&F: Is a quoted price includes cost of goods and freight.
C & I: Is a quoted price includes cost of goods and
insurance.
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 term CFS
means the bonded 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.
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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 and unpacked by the consignee off Carrier's
premises, all at consignee's risk and expense.
CFS CHARGE (Container Freight Charge): The term
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 Service: The term "CFS Receiving
Services" means the service performed at loading port in
receiving and 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
CIF (cost, insurance and freight): Seller is responsible
for inland freight,
ocean/air freight, and marine/air insurance to the port of
final entry in the buyer's country. The buyer is responsible
for inland transportation to his or her location.
Chargeable Kilo: Rate for goods where volume exceeds
six cubic metres to the tonne.
Charter: Originally meant a flight where a shipper
contracted hire of an aircraft from an airline. Has usually
come to mean any non-scheduled commercial service.
Charter Party: The contract between the owner of a ship
and the individual or company chartering it. Among other
specifications, the contract usually stipulates the exact
obligations of the ship-owner (loading the goods, carrying
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the goods to a certain point, returning to the charterer

with other goods, etc.); or it provides for an outright
leasing of the vessel to the charterer, who then is
responsible for his own loading and delivery. In either
case, the charter party sets forth the exact conditions and
requirements agreed upon by both sides.
Charter party Bill of Lading: A bill of lading issued
under a charter party. It is not acceptable by banks under
letters of credit unless so authorized in the credit.
Chassis: A wheel assemble including bogies constructed
to accept mounting of containers.
CIA: The acronym meaning "cash in advance," a method
of payment for goods whereby buyer pays seller in
advance of shipment of goods.
C.I.F.: Is a quoted price includes cost of goods, insurance
and freight.
C.I.T.E.S.: Committee on International Trade of
Endangered Species.
Class Rates: 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.
Classification: Is a customs term. The placement of an
item under the correct number in the customs tariff for
duty purposes. At times this procedure becomes highly
complicated; it is not uncommon for importers to resort to
litigation over the correct duty to be assessed by the
customs on a given item.
Claused Bill of Lading: Is a bill of lading which has
exemptions to the receipt of merchandise in "apparent
good order" noted.
Clean Bill of Lading: Is a bill of lading which covers
goods received in "apparent good order and condition"
and without qualification.
Clean Draft: Is a draft to which no documents have been
attached.
cm: Centimeters
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CNS: Cargo Network Services, an IATA company. See IATA.

Collective Paper: All documents (commercial invoices,
bills of lading, etc.)
submitted to a buyer for the purpose of receiving
payment for a shipment.
Commercial Risk: Risk carried by the exporter (unless
insurance is secured) that the foreign buyer may not be
able to pay for goods delivered on an open account basis.
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 defaults.
Conference: A group of vessel operators joined together
for the purpose of
establishing freight rates.
• RoRo/Container Vessel - Ship designed to
accommodate containers and
roll-on roll-off cargo. It can be self sustaining.
• RoRo/Container/Break-bulk Vessel - Designated to
accommodate three
types of cargo, usually self sustaining.
Commercial Code: A published code designed to reduce
the total number of words required in a cablegram.
Commodity Specialist: An official authorized by the U.S.
Treasury to determine proper tariff and value of imported
goods.
Consignee: Person or firm to whom goods are shipped
under a bill of landing.
Consular Declaration: A formal statement, made to the
consul of a foreign
country, describing goods to be shipped.
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 consular official of the
foreign, it is used by the country's customs official to
verify the value, quantity, and nature of the shipment.
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Combi: Is an aircraft with pallet or container capacity on

its main deck as well as in its belly holds.
Combination Vessels: Container/Break-bulk vessel - this
type of ship
accommodates both container and break-bulk cargo. It
can be either self
sustaining or non-self sustaining.
Commercial Invoice: An itemized list of goods shipped,
usually included among an exporter's collection papers.
Common Carrier: A firm or individual that transports
persons or goods for
compensation.
Confirmed Letter of Credit: A letter of credit, issued by
a foreign bank with validity confirmed by a U.S. bank.
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.
Consignee: The individual or company to whom a seller
or sipper sends
merchandise and who, upon presentation of necessary
documents, is recognized as merchandise owner for the
purpose of declaring and paying customs duties.
Consignee Marks: 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.
Consignment: Is the physical transfer of goods from a
seller (consignor) with whom the title remains, to another
legal entity (consignee) who acts as a selling agent,
selling the goods and remitting the new proceeds to the
consignor.
Consignor: A term used to describe 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 the goods, or a freight forwarder who consigns
goods on behalf of his principal.
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Consolidated Shipment: An arrangement whereby

various shippers pool their boxed goods on the same
shipment, sharing the total weight charge for the
shipment.
Consolidator: An agent which brings together a number
of shipments for one destination to qualify for preferential
airline rates.
Consortium: The name for an agreement under which
several nations or
nationals (usually corporations) of more than one nation,
join together for a common purpose. It could be for
management or exploitation of a natural resource, as in
the case of some international petroleum consortiums.
Consul: A government official residing in a foreign
country, charged with
representing the interests of his or her country and its
nationals.
Consular Documents: Special forms 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 customs
officials to verify the value, quantity and nature of the
shipment.
Container: 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
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service use of continuous transportation. All containers

must bear manufacturer's specifications.
Container Ship: Ocean going ship designed to carry
containers both internally and on deck. Some are self
sustaining.
Containerization: Is a concept for the ultimate unitizing
of cargo used by both steamship lines and air cargo lines.
Containers allow a greater amount of cargo protection
from weather, damage, and theft.
Containers (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.
Containers (Ocean): Are 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
standard.
Continuous Bond: Is an annual customs bond insuring
compliance with all
regulations and requirements.
Contract Rate: Is a charge levied by carriers selling
capacity forward over a
given route to a shipper of forwarder; the client is
therefore assured of capacity, which must be paid for
regardless of load carried.
Coordinating Committee for Export Controls
(COCOM): An informal group of 15 western countries
established to prevent the export of certain strategic
products to potentially hostile nations.
Correspondent Bank: A bank that, in its own country,
handles the business of a foreign bank.
Countertrade: Is a reciprocal trading arrangement, which
includes a variety of transactions involving two or more
parties.
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Countervailing Duties: Is a special duties imposed on

imports to offset the
benefits of subsidies to producers or exporters of the
exporting country.
Credit Risk Insurance: Insurance designed to cover
risks of nonpayment for delivered goods.
Customs Bonded Warehouse: Is a warehouse where
imported goods may be stored for a total of three years
without the payment of duty or taxes.
Customhouse Broker: An individual or firm licensed to
enter and clear goods through Customs.
Customs Court: Is the court to which importers might
appeal or protest
decisions made by Customs officers.
Customs Tariff: Is a schedule of charges assessed by the
federal government on imported goods.
Customs Union: Is 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.
CWO: The acronym meaning "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.
CY (Container Yard): 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.
CY/CFS (House to Pier): The term CY/CFS means
containers packed by
shipper of carrier's premises and delivered by shipper to
Carrier's CY, all at
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shipper's risk and expense and unpacked by Carrier at the

destination port CFS.
CY/CY (House to House): 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.
Dangerous Goods: Articles or substance capable of
posing a significant risk to health, safety or property, and
that ordinarily require special attention when being
transported.
DAT: Dangerous articles tariff.
Date Draft: Draft that matures in a specified number of
days after the date it is issued, without regard to the date
of Acceptance. See Draft.
DCA: Department of Civil Aviation. Commonly used term
to denote the
government department of any foreign country that is
responsible for aviation regulation and granting traffic
rights.
DDP: Delivered duty paid. Also known as "free domicile."
DDU: Delivered duty unpaid. Reflects the emergence of
"door-to-door"
intermodal or courier contracts or carriage where only the
destination customs duty and taxes (if any) are paid by
consignee.
Dead Leg: Is a sector flown without payload.
Dead Freight: Is freight charges paid by the charterer of
vessel for the
contracted space, which is left partially unoccupied.
Deck Cargo: Is cargo carried on deck rather than stowed
under deck. On deck carriage is required for certain
commodities, such as explosives.
Deferred Payment Credit: Type of letter of credit
providing for payment some time after presentation of
shipping documents by exporter.
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Deferred Rebate: The return of a portion of the freight

charges by a carrier or a conference shipper in exchange
for the shipper giving all or most of his shipments to the
carrier or conference over a specified period of time
(usually 6 months). Payment of the rate is deferred for a
further similar period, during which the shipper must
continue to give all or most of his shipments to the
rebating carrier or conference. The shipper thus earns a
further rebate which will not, however, be paid without an
additional period of exclusive or almost exclusive
patronage with the carrier of conference. In this way, the
shipper becomes tied to the rebating carrier or
conference. Although, the deferred rebate system is illegal
in U.S. foreign commerce, it generally is accepted in the
ocean trade between foreign countries.
Demurrage: A penalty for exceeding free time allowed
for loading or unloading at a pier or freight terminal. Also
a charge for undue detention of transportation equipment
or carriers in port while loading or unloading.
Density: Density means pounds per cubic foot. The
cubage of loose articles or pieces, or packaged articles of
a rectangular, elliptical or square shape on one plane shall
be determined by multiplying the greatest straight line
dimensions of length, width and depth in inches, including
all projections, and dividing the total by 1728 (to obtain
cubic feet). The density is the weight of the article divided
by the cubic feet thus obtained.
DEQ: Delivered ex quay/duty paid.
Destination Control Statement: Any of various
statements that the U.S.
government requires to be displayed on export shipments
and that specify the destination for which export of the
shipment has been authorized.
D.F.: Dead Freight
DGR: Dangerous Goods Requirement.
Dim Weight: (Dimensionalized Weight) Determined by
calculating length x width x height and dividing by 166.
Charged when actual weight is less than the dim. weight.
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Dock Receipt: When cargo is delivered to a steamship

company at the pier, the receiving clerk issues a dock
receipt.
Documents Against Acceptance (D/A): Instructions
given by a shipper to a
bank indicating that documents transferring title goods
should be delivered to the buyer (or drawee) only upon
the buyer's acceptance of the attached draft.
DOT: Department of Transportation
Draft (or Bill of Exchange): An unconditional order in
writing from one person (the drawer) to another (the
drawee), directing the Drawee to pay a specified amount
to a named Drawer at a fixed or determinable future date.
Drawback: A U.S. customs law that permits an American
exporter to recover duties paid on imported foreign raw
materials or components included in products that are
subsequently exported out of the United States.
Drawee: The individual or firm on whom a draft is drawn
and who owes the stated amount to the drawer.
Dry Lease: The rental of a "clean" aircraft without crew,
ground staff or
supporting equipment.
DST: The acronym meaning "double stack train" service,
which is the transport rail between two points of a
trainload of containers with two containers, one on top of
the other, per chassis.
d.w.: Deadweight (tons of 2,240 lbs.)
d.w.c.: Deadweight for cargo
E.A.O.N.: Except as otherwise noted.
EDI or EDIFACT: Electronic Data Interchange for
Administration, Commerce and Transport, from the UN-
backed electronic data interchange standards body, to
create electronic versions of common business documents
that will work on a global scale. One digital document
under consideration, the International Forwarding and
Transport Message will do the jobs of six different
electronic messages currently in use.
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Empty Leg: Results from an aircraft primarily chartered

outbound having cargo capacity inbound or vice versa. A
cheap form of airfreight.
Endorsement in Blank: Commonly used on a bank
check, an endorsement in blank is an endorsement to the
bearer. It contains only the name of the endorser and
specifies no particular payee. Also, a common means of
endorsing bills of lading dawn to the order of the shipper.
The bills are endorsed "For..." (see Bill of Lading, Order).
Eurodollars: U.S. dollars on deposit outside of the United
States to include
dollars on deposit at foreign branches of U.S. banks, and
dollars on deposit with foreign banks.
"Ex": Signifies that the quoted price applies only at the
indicated point of origin (e.g. "price ex factory" means
that the quoted price is for the goods available at the
factory gate of the seller).
Ex. B.L.: Exchange bill of lading.
Export Broker: The individual who brings together buyer
and seller for a fee, eventually withdrawing from any
transaction.
Export Declaration: A form to be completed by the
exporter or their authorized agent and filed in triplicate by
a carrier with the United State Collector of customs at the
point of exit. It serves a twofold purpose:
1. Primarily, it is used by the U.S. Bureau of Census for the
compilation of
export statistics on United States foreign trade (for this
reason an export
declaration is required for practically all shipments from
the United States
to foreign countries and the United States possessions,
except for mail
shipments of small value, or for those of a non
commercial character);
2. The declaration also serves as an export control
document because it
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must be presented, together with the export license, to

the United States
Customs at the port of export. If the goods may be
exported under general
export license, this fact must be stated on the export
declaration.
Export License: A document secured from a
government, authorizing an
exporter to export a specific quantity of a particular
commodity to a certain
country. An export license is often required if a
government has place embargoes or other restrictions
upon exports. See General Export License.
Export Trading Company: A corporation or other
business unit organized and operated primarily for the
purpose of exporting goods and services, or of providing
export related services to other companies.
Express: Premium-rated service for urgent deliveries.
EXW: Ex works. Same as the former "Ex Works."FAK:
Freight All Kinds – uniform airline charging scale applying
to a number of commodities; as opposed to SCR (Specific
Commodity Rate) applying to one commodity only.
FAS (free alongside ship): Seller is responsible for
inland freight costs until
goods are located alongside the vessel/aircraft for loading.
Buyer is responsible for loading costs, ocean /air freight
and marine/air insurance.
Fathom: (Nautical) Conversion equivalents: 6 feet; 1.83
meters.
F.C.L.: Full container load, full car load.
F.c.s.: Free of capture and seizure.
f.c.s.r.c.c.: Free of capture, seizure, riots and civil
commotions.
F.&.D.: Freight and demurrage.
FEU: Forty foot equivalent
FIATA: International Federation of Freight Forwarders
Associations.
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Fifth Freedom Flight: Where cargo is carried by an

airline between two
countries in neither of which it is based.
F.i.b.: Free in bunkers; free into barge.
Flag Carrier: An airline of one national registry whose
government gives it partial or total monopoly over
international routes.
FOB (free on board): Seller is responsible for inland
freight and all other costs until the cargo has been loaded
on the vessel/aircraft. Buyer is responsible for ocean/air
freight and marine/air insurance.
F.o.d. : Free of damage
Folded: An article folded in such a manner as to reduce
its bulk 33 1/3% from its normal shipping cubage when
not folded.
Force Majeure: The title of a standard clause found in
marine contracts
exempting the parties for nonfulfillment of their
obligations by reasons of
occurrences beyond their control, such as earthquakes,
floods or war.
Foreign Trade Zone: A free port in the United Stated
divorced from Customs authority but under Federal
control. Merchandise, except that which is prohibited, may
be stored in the zone without being subjected to the
United States tariff regulation. Also called Free Trade
Zone.
Foreign Trade Zone Entry: A form declaring goods
which are brought duty free into a Foreign Trade Zone for
further processing or storage and subsequent exportation.
Forwarder, Freight Forwarder, Foreign Freight
Forwarder: An independent
business that dispatches shipments for exporters for a
fee. The firm may ship by land, air, or sea, or it may
specialize. Usually it handles all the services connected
with an export shipment; preparation of documents,
booking cargo space, warehouse, pier delivery and export
clearance. The firm may also handle banking and
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insurance services on behalf of a client. The U.S.

forwarder is licensed by the Federal Maritime Commission
for ocean shipments.
Foul Bill of Landing: A receipt for goods issued by a
carrier with an indication that the goods were damaged
when received.
F. P.A.A.C. F.p.a. (A.C.) : Free of Particular Average,
American Conditions- (Marine Insurance Term). The
American form of clause commonly used, as distinguished
from that used by the English underwriters. Under the
American clause the underwriter does not assume
responsibility for partial losses unless caused by
stranding, sinking, burning or collision with another vessel
whereas under the English clause, the underwriter
assumes responsibility for partial losses if the vessel be
stranded, sunk, burnt or in collision even though such
anevent did not actually cause the damage suffered by
the goods. Conditions (See
F.P.A.A.C.).
F.P.A.: Free of Particular Average (Marine Insurance Term).
A term used in marine insurance policies to indicate that
while the underwriter is unwilling to assume liability for
ordinary partial losses due to the peculiar qualities of the
particular article or to its form of package, he is willing to
bear partial losses, the direct result of stranding, sinking,
burning, collision, or other named peril
Free Alongside: Quoted price includes the cost of
delivering the goods
alongside a designated vessel.
Free In (F.I.): Cost of loading a vessel is borne by the
charterer.
Free In and Out (F.I.O.): Cost of loading and unloading a
vessel is borne by the charterer.
Free of Capture and Seizure (F.C.& S.): An insurance
clause providing that loss is not insured if due to capture,
seizure, confiscation and like actions, whether legal or not
, or from such acts as piracy, civil war, rebellion and civil
strife.
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Free of Particular Average (F.P.A.): A marine insurance

clause providing that partial loss or damage is not insured
American conditions (F.P.A.A.C.). Partial loss is not insured
unless caused by the vessel being sunk, stranded, burned,
on fire, or in collision. English conditions (F.P. A.E.C.).
Partial loss not insured unless a result of the vessel being
sunk, stranded, burned, on fire, or in collision.
Free Out (F.O.): Cost of unloading a vessel is borne by
the charterer.
Free Port: A port which is a foreign trade zone, open to
all traders on equal terms; more specifically a port where
merchandise may be stored duty-free, pending re-export
or sale within that country.
Free Trade Zone: A port designated by the government
of a country for duty-free entry of any non-prohibited
goods. Merchandise may be stored, displayed, used for
manufacturing, within the zone and re-exported without
duties being paid. Duties are imposed on the merchandise
(or items manufactured from the merchandise) only when
the goods pass from the zone into an area of the country
subject to the Customs Authority.
Freight Forwarder: An individual or company , acting on
the behalf of a shipper, who arranges all necessary details
of shipping and documentation for a manufacturer or
exporter, which includes employing the services of a
carrier of carriers.
Gang: Group of stevedores usually 4 to 5 members with
supervisor assigned to a hold or portion of the vessel
being loaded or unloaded.
Gateway: Port of entry into a country or region.
GATT: General Agreement on Tariffs and Trade, a
multilateral treaty intended to help reduce trade barriers
and promote tariff concessions.
GCR: General Cargo Rate. The basic tariff category which
was introduced to cover most air cargo now covers only a
minority, the remainder being under SCR or class rates.
General Average: When damage to cargo on board a
vessel exceeds carrier's insurance, carrier will release
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cargo only with an acceptance agreement to claim only a

general percentage of all the damage sustained.
General Export License: Any of various export licenses
covering export
commodities for which validated export licenses are not
required. No formal application or written authorization is
needed to ship exports under a general export license.
General Order: Government contract warehouse for the
storage of cargoes left unclaimed for ten working days
after availability. Unclaimed cargoes are auctioned
publicly after one year.
Gross Weight: Entire weight of goods, packing, and
container,, ready for
shipment.
G.R.Wt./G.W.: Gross Weight.
GSA: General Sales Agent acting on behalf of an airline.
Usually Broker or
Forwarder.
Harmonized Code: An internationally accepted and
uniform description system for classifying goods for
customs, statistical and other purposes.
Harmonized Systems: A key provision of the recently
signed trade bill, effective Jan. 1, 1989, that establishes
international uniformity for product classifications. Most
U.S. Trading partners adopted it a year earlier, and it was
drafted in Brussels a decade ago with U.S.
representatives' input. In essence, it is a new tariff
schedule in that it changes methods of rating some items.
Hatch: The cover of - or opening- in the deck of a vessel,
through which cargo is loaded.
Heavy Lifts: Freight too heavy to be handled by regular
ship's tackle.
Heavy Lift Vessel: Specifically designed to be self
sustaining with heavy lift
cranes, to handle unusually heavy and/or out-sized
cargoes.
House Air Waybill: An air waybill issued by a freight
consolidator. See Air
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Waybill.
Hub: A central location to which traffic from many cities is
directed and from which traffic is fed to other areas.
Hundredweight (cwt.): A short ton hundredweight =
100 pounds. Long ton
hundredweight = 112 pounds.
Husbanding: Term used by steamship lines, agents, or
port captains who are appointed to handle all matters in
assisting the master of the vessel while in port to obtain
bunkering, fresh water, food and supplies, payroll for the
crew, doctors appointments, ship repair, etc.
IATA: International Air Transport Association.
ICAO: International Civil Aviation Organization. A
specialized agency of the United Nations, with
headquarters in Montreal. Its task is to promote general
development of civil aviation (e.g. aircraft design and
operation, safety procedures, contractual agreements).
ICC: International Chamber of Commerce
I.C.T.F.: Intermodal Container Transfer Facility, an on-dock
facility for moving containers from ship to rail or truck.
IFF: Institute of Freight Forwarders.
Igloo: Container designed to occupy full main deck width
of carrying aircraft.
Import License: A certificate, issued by countries
exercising import controls, that permits importation of the
articles stated in the license. The issuance of such a
permit frequently is connected with the release of foreign
exchange needed to pay for the shipment for which the
import license has been requested.
In-Bond: A customs program for inland ports that provide
for cargo arriving at a
seaport to be shipped under a Customs bond to a more
conveniently located inland port where the entry
documents have been filed. Customs clears the shipment
there, and the cargo is trucked to its destination, which
normally is close to the inland port.
Independent Action: A move by whereby a member of a
shipping conference elect to depart from the specific
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service rates set forth by the conference, giving ten

calendar days notice of such action. The conference
member's new schedule of rate, or rates, officially takes
effect no later than ten days after receipt of notice by the
conference.
Inducement: Some steamship lines publish in their
schedules the name of a port and the words by
inducement in parentheses. This means the vessel will call
at the port if there is sufficient amount of profitable cargo
available and booked.
Inland Carrier: A transportation line which hauls export
or import traffic between ports and inland points.
I.p.a.: Including particular average
Inspection Certificate: A document certifying that
merchandise (such as
perishable goods) was in goods condition immediately
prior to shipment.
Integrated Carrier: Forwarder which uses own aircraft,
whether owned or
leased, rather than scheduled airlines.
Intellectual Property: Ownership of the legal rights to
possess, use or dispose of products created by human
ingenuity, including patents, trademarks and copyrights.
Interline: Mutual agreement between airlines to link their
route network.
Intermeddle: Referring to the capacity to go from ship to
train to truck, or the like, the adjective generally refers to
containerized shipping or the capacity to handle same.
ISO: International Standards Organization also referred to
as the International
Organizational for Standardization.
Incoterms: A codification of terms used in foreign trade
contracts that is
maintained by the International Chamber of Commerce.
Incremental Cost to Export: The additional costs
incurred while manufacturing and preparing a product for
export ( e.g., product modifications, special export
packaging and export administration costs.) This does not
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include the costs to manufacture a standard domestic

product, export crating and transportation to the foreign
market.
Irrevocable Letter of Credit: A letter of credit with a
fixed expiration date that carries the irrevocable
obligation of the issuing bank to pay the exporter when all
of the terms and conditions of the letter of credit have
been met.
J.&W.O.: Jettison and washing overboard
JETSAM: Goods from a ship's cargo, or parts of its
equipment, that have been thrown overboard to lighten
the load in time of danger, or to set a stranded ship adrift.
Joint Venture: A form of business partnership involving
joint management and the sharing of risks and profits
between enterprises sometimes based in different
countries.
Just-In-Time (JIT): The principle of production and
inventory control in which goods arrive when needed for
production or use.
K.D.C.L.: Knocked down in carload lots
KD Flat: An article taken apart, folded, or telescoped to
reduce its bulk at least 66 2/3% below its assembled size.
K.D.L.C.L.: Knocked down in less than carload lots.
Knock Down (KD): An article taken apart, folded or
telescoped in such a manner as to reduce its bulk at least
33 1/3% below its assembled bulk.
Knot (Nautical): The unit of speed equivalent to one
nautical mile, or 6,080.20 feet per hour or 1.85 kilometers
per hour.
L/C - Letter of Credit: A document issued by a bank per
instructions by a buyer of goods, authorizing the seller to
draw a specified sum of money under specified terms.
Issued as revocable or irrevocable.
L. & D.: Loss and damage
Lagan: Cargo or equipment to which an identifying
marker or buoy is fastened, thrown over-board in time of
danger to lighten a ship's load. Under maritime law if the
goods are later found they must be returned to the owner
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whose marker is attached; the owner must make a

salvage payment.
Lash: Lighter Aboard Ship (see Lighter)
Lash Vessel: Designed to load internally, barges
specifically designed for the vessel. The concept is to
quickly float the barges to the vessel (using tugs or ships
wenches) load these barges through the rear of the
vessel, then sails. Upon arrival at the foreign port, the
reverse happens; Barges are quickly floated away from
the vessel and another set of waiting barges quickly are
loaded. Designed for quick vessel turn-around. Usually
crane-equipped; handles mostly breakbulk cargo.
Lay Days: The dates between which a chartered vessel is
to be available in a port for loading of cargo.
L.C.L.: Less than container load; less than car load.
Legal Weight: The weight of the goods plus any
immediate wrappings which are sold along with the
goods: e.g., the weight of a tin can as well as its contents.
(See Gross Weight).
Less than Truck Load (LTL): Rates applicable when the
quantity of freight is less than the volume or truckload
minimum weight.
Letter of Credit: A document issued by a bank at a
buyer's request honoring debt obligations to the seller
upon receipt of the document.
Lighter: An open or covered barge equipped with a crane
and towed by a
tugboat. Used mostly in harbors and inland waterways.
Lighterage: The cost of loading or unloading a vessel by
means of barges
alongside.
Liner: The word "liner" is derived from the term "line
traffic" which denotes
operation along definite routes on the basis of definite,
fixed schedules; a liner thus is a vessel that engages in
this kind of transportation, which generally involves the
haulage of general cargo as distinct from bulk cargo.
Liquidation: The finalization of a customs entry.
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Livestock: Common farm animals.

Lkg. & Bkg.: Leakage and breakage.
Load Factor: Capacity sold as against capacity available,
expressed as a
percentage.
Lo/Lo: The acronym meaning "lift-on,lift-off," denoting the
method by which cargo is loaded onto and discharged
from an ocean vessel, which in this case is by the use of a
crane.
l.t. or l.tn.: Long ton (2240 lbs.).
Ltge.: Lighterage
LTL: Less than truckload
Letter of Credit - payment by sight draft: The
exporter receives guaranteed
payment from the confirming bank in the U.S. upon
presentation of the sight draft and documents required by
the letter of credit.
Manifest: A list of the goods being transported by a
carrier.
Marine Insurance: An insurance which will compensate
the owner of goods transported overseas in the event of
loss which cannot be legally recovered from the carrier.
Maritime Administration (MARAD): A US government
agency, while not
actively involved in vessel operation, administers laws for
maintenance of
merchant marine for the purposes of defense and
commerce.
Mark: As used on containers in foreign trade, a symbol or
initials shown together with the port of importation and
the final destination, if different. Example: A.G. y
Cia., Bogota via Barranquilla. Marks are registered at
appropriate customs
houses; they also appear on bills of lading and invoices. In
domestic trade, it is common to mark containers with the
name and address of the recipient, but this is rarely done
in foreign trade.
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Marking: Every article of foreign origin, or its container,

imported into the United States shall be permanently
marked in a conspicuous place in a manner which would
indicate to the ultimate purchaser the English name of the
country of origin of the article.
Mate's Receipt: Receipt of cargo by the vessel, signed
by the mate (similar to dock receipt).
Measurement Ton: The measurement ton (also known
as the cargo ton or
freight ton) is a space measurement, usually 40 cubic feet
or one cubic meter. The cargo is assessed a certain rate
for every 40 cubic feet or 1 cubic meter it occupies.
Min. B/L: Minimum bill of lading
M.M.: Mercantile marine
MFN (Most Favored Nation): Designation for countries
which receive
preferential tariff rates. This is no longer the best tariff
structure available.
M/R: Mate's Receipt
M/T: Metric Ton (2204 lbs.)
mt.: Empty
M/V or M.V.: Motor vessel
MW: Minimum weight factor
National Carrier: A flag carrier owned or controlled by
the state.
n.e.m.: Not elsewhere mentioned (English)
n.e.s.: Not elsewhere specified
Nested: Three or more different sizes of an article are
placed within each other so that each article will not
project above the next lower article by more than 33 1/3%
of its height.
Nested Solid: Three of more different sizes of an article
are placed within each other so that each article will not
project above the next lower article by more than 1/4
inch.
Net Terms: Free of charters' commission
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Net Weight: (Actual Net Weight) Weight of goods alone

without any immediate wrappings; e.g., the weight of the
contents of a tin can without the weight of the can.
NMFC: National Motor Freight Classification
No Objection Certificate: Document provided by
scheduled or national airlines of many countries declaring
no objection to a proposed charter flight operated by
another airline. Often demanded by government
authorities before they grant permission for a charter
flight to take place.
No Objection Fee: Sum of money paid by a charter
airline normally to a
scheduled airline in order that it waives its right of
objection to its government, thus allowing a charter to
take place. Tantamount to a bribe. The amount is usually a
fixed percentage of the gross cost of a charter. Common
practice in the Middle East and Africa.
N.O.E.: Not otherwise enumerated
N.O.H.P.: Not otherwise herein provided
N.O.I.: Not more specifically described
N.O.I.B.N.: Not otherwise indicated by number; Not
otherwise indicated by name.
Non-Scheduled Flight: See scheduled flight.
Non-Tariff Barriers (NTB): Economic, political,
administrative or legal impediments to trade other than
duties, taxes and import quotas
Non-Vessel Operation Common Carrier (NVOCC): An
F.M.C. registered cargo consolidator of small shipments in
ocean trade, generally soliciting business and arranging
for or performing containerization functions at the port.
These carriers issue their own bill of lading referred to as
a house bill of lading.
N.O.S.: Not otherwise specified
N.T.: Net tons
Ocean Bill of Lading: A receipt for cargo in transit, and
a contract between the exporter and an ocean carrier for
transportation and delivery of goods to a specified party
at a specified foreign destination. Issued after the vessel
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has sailed and the cargo has been entered in the ship's
manifest.
O.D.: Outside diameter
ODS: An acronym commonly used for the term "operating
differential subsidy," which is a payment to an American-
flag carrier by the federal government to offset the
difference in operating costs between US and foreign
vessels.
Off-Line: Describes an airline that sells in a market to
which it does not operate. An Off-Line carrier will use
another operator to link with its network.
O/N: Order notify; own name
O/o: Order of
Open Account: A high-risk trade arrangement in which
goods are shipped to a foreign buyer without guarantee of
payment.
Open Policy: A cargo insurance policy that is an open
contract; i.e., it provides protection for all an exporter's
shipments afloat or in transit within a specified
geographical trade area for an unlimited period of time,
until the policy is cancelled by the insured or by the
insurance company. It is "open" because the goods that
are shipped are also detailed at that time. This usually is
shown in a document called a marine insurance
certificate.
Original Equipment Manufacturers (OEM accounts):

Customers who
incorporate the exporter's product into their own
merchandise for resale under their own brand names.
O/R : Owner's risk
O. & R.: Ocean and Rail
O.r.b.: Owner's risk or breakage
O.R. Det.: Owner's risk of deterioration
O.R.F.: Owner's risk of fire or freezing
O.R.L.: Owner's risk of leakage
O.R.W.: Owner's risk of becoming wet
O.S. & D.: Over, short and damage
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Ocean Bill of Lading: A receipt for cargo in transit, and

a contract between the exporter and an ocean carrier for
transportation and delivery of goods to a specified party
at a specified foreign destination. Issued after the vessel
has sailed and the cargo has been entered in the ship's
manifest.
O.D.: Outside diameter
ODS: An acronym commonly used for the term "operating
differential subsidy," which is a payment to an American-
flag carrier by the federal government to
offset the difference in operating costs between US and
foreign vessels.
Off-Line: Describes an airline that sells in a market to
which it does not operate. An Off-Line carrier will use
another operator to link with its network.
O/N: Order notify; own name
O/o: Order of
Open Account: A high-risk trade arrangement in which
goods are shipped to a foreign buyer without guarantee of
payment.
Open Policy: A cargo insurance policy that is an open
contract; i.e., it provides protection for all an exporter's
shipments afloat or in transit within a specified
geographical trade area for an unlimited period of time,
until the policy is cancelled by the insured or by the
insurance company. It is "open" because the goods that
are shipped are also detailed at that time. This usually is
shown in a document called a marine insurance
certificate.
Original Equipment Manufacturers (OEM accounts):
Customers who
incorporate the exporter's product into their own
merchandise for resale under their own brand names.
O/R : Owner's risk
O. & R.: Ocean and Rail
O.r.b.: Owner's risk or breakage
O.R. Det.: Owner's risk of deterioration
O.R.F.: Owner's risk of fire or freezing
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116
O.R.L.: Owner's risk of leakage

O.R.W.: Owner's risk of becoming wet
O.S. & D.: Over, short and damage
P.A. : Particular average
Paired: Port of Arrival Immediate Release and
Enforcement Determination. A U.S. Customs program that
allows entry documentation for an import shipment to be
filed at one location, usually an inland city, while the
merchandise is cleared by Customs at the port of entry,
normally a seaport. May be ineffective with certain types
of high-risk cargoes, such as quota-regulated textiles or
shipments from drug-production regions. Cities where
there is a natural flow of cargo are actually "paired" in the
program; e.g., Atlanta, an inland city, is linked with
Savannah, a seaport. Tested in '87-'88, it became
generally available in mid- '88.
Pallet: Load carrying platform to which loose cargo is
secured before placing aboard the aircraft.
Pallet Extender: Fashionable metal or cardboard device
to increase pallet
capacity.
Paperless Release: Under ABI, certain commodities
from low-risk countries not designated for examination
may be released through an ABI-certified broker without
the actual submission of documentation.
Part Charter: Where part of an airline's scheduled flight
is sold as if it were a charter in its own right (Often
wrongly used as a synonym for split charter).
Part Load Charter: Where a part of an aircraft's load is
discharged at one
destination and a part of it at another. This is distinct from
a split charter where a number of consignments are
carried to the same destination. Inbound, part loads are
treated as single entity charters under the regulations of
most countries.
Particular Average: Partial loss or damage to goods.
Perils of the Sea: Most losses covered by a marine
insurance policy come
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within the comprehensive expression "perils of the sea,"

which refers to damage caused by heavy weather,
strandings, strikings on rocks or on bottom, collision with
other vessels, contacts with floating objects, etc.
Perishables: Any cargo that loses considerable value if it
is delayed in
transportation (Usually refers to fresh fruit and
vegetables).
Phytosanitary Inspection Certificate: A certificate
issued by the U.S.
Department of Agriculture indicating that a shipment has
been inspected and is free of harmful pests and plant
diseases.
Pilferage: As used in marine insurance policies, the term
denotes petty thievery, the taking of small parts of a
shipment, as opposed to the theft of a whole shipment or
large unit. Many ordinary marine insurance policies do not
cover against pilferage, and when this coverage is
desired, it must be added to the policy.
Pivot Weight: That weight of a ULD above which a
higher tariff applies; in effect, an incentive to maximize
cargo density.
Place: A particular street address or other designation of
a factory, store,
warehouse, place of business, private residence,
construction camp or the like, at a point.
Place of Rest: The term "Place of Rest" as used in the
Containerized Cargo
Rules means that location on the floor, dock, platform or
doorway at the CFS to which cargo is first delivered by
shipper or agent thereof.
Point: A particular city, town, village or other community
or area which is treated as a unit for the application of
rates.
Port Authority: A government body (city, county or
state) which in international shipping maintains various
airports and/or ocean cargo pier facilities, transit sheds,
loading equipment warehouses for air cargo, etc. Has the
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power to levy dockage and wharfage charges, landing

fees, etc.
Port Marks: An identifying set of letters numbers and/or
geometric symbols followed by the name of the port of
destination, which are placed on export shipments.
Foreign government requirements may be exceedingly
strict in the matter of port marks.
Port of Discharge: Port where vessel is off loaded and
cargo discharges.
Port of Entry: A port at which foreign goods are re-
admitted into the receiving country.
Port of Loading: Port where cargo is loaded aboard the
vessel lashed and
stowed.
Power of Attorney: A document that authorizes a
customs broker to sign all customs documents on behalf
of an importer.
Pre-Advice: Preliminary advice that a letter of credit has
been established in the form of a brief authenticated wire
message. It is not an operative instrument and is usually
followed by the actual letter of credit.
Prepaid Freight: Generally speaking, freight charges
both in ocean and air
transport may be either prepaid in the currency of the
country of export or they may be billed collect for
payment by the consignee in his local currency.
However, on shipments to some countries freight charges
must be prepaid
because of foreign exchange regulations of the country of
import and/or rules of steamship companies or airlines.
Pre-Slung Cargo: Cargo shipped already in a cargo sling
or net. Usually
prepared and loaded at pier ready for arrival of vessel and
subsequent loading
(i.e. coffee in bags, coconut shells, etc).
Price Quotation/Proforma Invoice: An invoice
prepared by the seller in
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advance of shipment that documents the cost of goods

sold, freight, insurance, and other related charges. It is
often used by the buyer to secure a letter of credit, an
import license or a foreign currency allocation.
Prima Facie: Latin, "on first appearance." A term
frequently encountered in
foreign trade. When a steamship company issues a clean
bill of lading, it
acknowledges that the goods were received "in apparent
good order and
condition" and this is said by the courts to constitute
prima facie evidence of the conditions of the containers;
that is, if nothing to the contrary appears, it must be
inferred that the cargo was in good condition when
received by the carrier.
Proforma: When used with the title of a document, the
term refers to an informal document presented in advance
of the arrival, or preparation of the required document, in
order to satisfy a customs requirement.
Pro Number: A number assigned by the carrier to a
single shipment, used in all cases where the shipment
must be referred to. Usually assigned at once.
Proof of Delivery: Add-on service in express market,
delivered either by phone or courier. Often offered free.
Protest: Customs form 19 allows for a refund of an
overpayment of duty if filed within 90 days of liquidation.
P.W.: Packed weight
R. & C. : Rail and Canal
R/C: Reconsigned
r. & c.c.: Riots and civil commotions
r.c.c. & s.: Riots, civil commotions and strikes
Rebate: A deduction taken from a set payment or charge.
As a rebate is given after payment of the full amount has
been made, it differs from a discount which is deducted in
advance of the payment. In foreign trade, a full or partial
rebate may be given on import duties paid on goods
which are later re-exported.
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Reciprocity: A practice by which governments extend

similar concessions to one another.
Red Clause Letter of Credit: A letter of credit that
allows the exporter to receive a percentage of the face
value of the letter of credit in advance of shipment. This
enables the exporter to purchase inventory and pay other
costs associated with producing and preparing the export
order.
REFG.: Refrigerating; Refrigeration
Regs.: Registered Tonnage
Retaliation: Action taken by a country to restrain its
imports from another
country that has increased a tariff or imposed other
measures that adversely affects the firsts country's
exports.
RORO (ROLL ON-ROLL OFF) : Direct drive on/drive off
wheeled vehicles on specially-designed ocean-going
vessels.
Route: an established air passage, from point of
departure to terminating station.
Royalty: a charge on charter flights levied by some
governments before traffic rights are granted. Sometimes
called a "no objection fee." Usually a fixed proportion of a
total charter value.
Salvage: Rescue of goods from loss at sea or by fire;
also, goods so saved, or payment made or due for their
rescue.
Sanitary and Health Certificate: A statement signed
by a health organization official certifying the degree of
purity, cleanliness, or spoilage of goods, and the health of
live animals.
Schedule B: Refers to "Schedule B, Statistical
Classification of Domestic and Foreign Commodities
Exported from the United States." Being replaced under
the Harmonized System.
Scheduled Flight: Any service that operates to a set
timetable.
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SCR: Specified Commodity Rate. Applied to narrowly

specified commodities. Usually granted on relatively large
shipments. Theoretically is of limited time duration.
Sector: Distance between two ground points within a
route.
Self-Sustaining: Vessel has its own cranes and
equipment mounted on board for loading/unloading. Used
in ports where shore cranes and equipment are lacking.
Service: The defined, regular pattern of calls made by a
carrier in the pick-up and discharge of cargo.
Service Contract: A contract between a shipper and an
ocean carrier of
conference, in which the shipper makes a commitment to
provide a minimum quantity of cargo over a fixed time
period.
Set Up: Articles in their assembled condition.
S. & F.A.: Shipping and forwarding agent.
Shipment: Freight tendered to a carrier by one consignor
at one piece at one time for delivery to one consignee at
one place on one bill of lading.
Shipper: Term used to describe exporter. Mostly
manufacturing companies.
Shipper's Export Declaration: A form required by the
Treasury Department and completed by a shipper showing
the value, weight, consignee, destination, etc., of export
shipments as well as Schedule B identification number.
Ship's Manifest: An instrument in writing containing a
list of the shipments
comprising the cargo of the vessel.
Ship's Tackle: All rigging, etc., utilized on a ship to load
or discharge cargo.
Short-Shipped: Cargo manifested but not loaded.
Single Entry Charter: A non-scheduled flight carrying
the cargo of one shipper.
Sight Draft: A draft payable upon presentation to the
drawee. Compare date draft and time draft.
S.I.T.: Stopped in Transit
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Site: A particular platform or location for loading or

unloading at a place.
S.L. & C. : Shipper's Load and Count
S.L. & T.: Shipper's Load and Tally
S/N: Shipping Note
S.O.L.: Ship Owner'Liability
Split Charter: Where a number of consignments from
different shippers are carried on the same non-scheduled
aircraft. Under U.K. regulations a nonscheduled flight
chartered by a single forwarder or agent on behalf of a
number of shippers is still classified as a split charter.
Under U.S. regulations, a forwarder chartered flight is
classified as a single entity although it can consolidate.
S.R: Shipping Receipt
S.R. & C.C.: Strikes, riots, and civil commotions.
SS: Steamship; steam powered ship (Steam driven
turbines)
Standard International Trade Classification (SITC) :
A standard numerical
code system developed by the United Nations to classify
commodities used in international trade.
S.tn.: Short ton
Steamship Agent: A duly appointed and authorized
representative in a specified
territory acting in behalf of a steamship line or lines and
attending to all matters relating to the vessels owned by
his principals.
Steamship Line: Company is usually composed of the
following departments; vessel operations, container
operations, tariff department, booking, outbound rates,
inward rates and sales. the company can maintain its own
in country U.S. offices to handle regional sales, operations
and/or other matters or appoint steamship agents to
represent them doing same. Some lines have liner offices
in several regions and have appointed agents in others.
Stowage: The lacing of cargo in a vessel in such a
manner as to provide the
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utmost safety and efficiency for the ship and the goods it
carries.
Strikes, Riots, and Civil Commotions: An insurance
clause referring to loss or damage directly caused by
strikers, locked-out workmen, persons participation in
labor disturbances, and riots of various kinds. The
ordinary marine insurance policy does not cover this risk;
coverage against it can be added only by endorsement.
Subsidy: An economic benefit granted by a government
to producers of goods or services, often to strengthen
their competitive position.
Sue & Labor Clause: A provision in marine insurance
obligating the assured to do things necessary after a loss
to prevent further loss and to act in the best interests of
the insurer.
Surety Bond: A bond insuring against loss or damage or
for the completion of obligations.
Surety Company: An insurance company
S.W.: Shipper's weights
Tally Sheet: List of cargo, incoming and outgoing,
checked by Tally clerk on dock.
Tare Weight: The weight of the container and/or packing
materials only -
excluding the weight of the goods inside the container.
Tariff: A general term for any listing of rates, charges,
etc. the tariffs most
frequently encountered in foreign trade are: tariffs of the
international
transportation companies operating on sea, on land, and
in the air; tariffs of the international cable, radio, and
telephone companies; and the customs tariffs of the
various countries, which list goods that are duty free and
those subject to import duty, giving the rate of duty in
each case. There are various classes of customs duties.
T.B.L.: Through bill of lading
Temperature Controlled Cargo: Any cargo requiring
carriage under controlled temperature.
TEU: Twenty foot equivalent.
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Third Freedom Right: Where cargo is carried by an

airline, from the country in which it is based, to a foreign
country.
T.I.B.: Temporary Import Entry.
Time Draft: A draft that matures in a certain number of
days, either from
acceptance or date of the draft.
Title, Passing: The passing of title to exported goods is
determined in large
measure by the selling terms. For example, if an exporter
sells goods c.i.f he may be presumed to pass ownership
and tender of documents. However, he may ship on a bill
of lading drawn to his own order, to prevent the buyer
from gaining possession of the goods until the draft is
paid or accepted. In this case he retains a security title to
the goods; that is, a title for security purposes only, until
the financial arrangement is carried out. Caution:
depending on the laws of the buyer's country, you may
not be able to force passage of title without payment
having been received or the buyer having accepted
delivery of the goods or a clear understanding by the
buyer being understood and accepted.
TL: Truckload
Ton: Freight rates for liner cargo generally are quoted on
the basis of a certain rate per ton, depending on the
nature of the commodity. This ton, however, may be
weight ton or a measurement ton.
Ton-Deadweight: Indicates the carrying capacity of the
ship in terms of the
weight in tons of the cargo, fuel, provisions and
passengers which a vessel can carry.
Ton-Displacement: The weight of the volume of water
which the fully loaded ship displaces.
Ton-Kilometer: Measure of airline freight capacity.
Ton-Registered: Indicates the cubical contents or burden
of a vessel in tons of
100 cubic feet. The space within a vessel in units of 100
cubic feet.
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Tracking: A carrier's system of recording movement

intervals of shipments from origin to destination.
Trade: A term used to define a geographic area or
specific route served by
carriers.
Traffic Conferences: Rate-fixing machinery operated by
IATA.
Tramp: A tramp is a vessel that does not operate along a
definite route on a fixed schedule, but calls at any port
where cargo is available.
Transferable Letter of Credit: A letter of credit that
allows all or a portion of the proceeds to be transferred
from the original beneficiary to one or more additional
beneficiaries.
Transshipment: The transfer of a shipment from one
carrier to another in
international trade, most frequently from one ship to
another. In as much as the unloading and reloading of
delicate merchandise is likely to cause damage,
transshipments are avoided whenever possible.
Transport Index: The number expressing the maximum
radiation level in a package of ULD.
Truckload: Truckload rates apply where the tariff shows a
truckload minimum weight. Charges will be at the
truckload minimum weight unless weight is higher.
Trust Receipt: Release of merchandise by a bank to a
buyer for manufacturing or sales purposes in which the
bank retains title to the merchandise.
Turnkey Project: Capital construction projects in which
the supplier (contractor) designs and builds the physical
plant, trains the local personnel on how to manage and
operate the facility and presents the buyer with a self-
sustaining project (all the buyer has to do is "turn the
Key").
UKACC: United Kingdom Air Cargo Club.
ULD: Unit Load Device. Pallet or Container for freight.
Unclean Bill of Lading: A bill containing reservations as
to the good order and condition of the goods, or the
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packaging, or both. Examples: "bags torn;" "drums

leaking;" "one case damaged;" "rolls chafed."
Unitisation: The packing of single or multiple
consignments into ULDs or pallets.
Universal Postal Union: Organization which negotiates
international mail
charges.
VAT (Value-Added Tax): A sales or consumption tax
which the end user pays. Typically, this is a "hidden" tax,
added to the list price of the goods in question.
Valuation Charges: Transportation charges assessed
shippers who declare a value of goods higher than value
of carrier's' limits of liability.
Ves.: Vessel
Visa: An invoice properly validated by the Minister of
Trade in regard to quota entries.
Volume Weight: Used when calculating air freight when
the size of the carton is greater than the average weight,
calculated by multiplying the length times the width times
the height and dividing by 166.
W.A.: With Average
Warehouse Receipt: A receipt of commodities deposited
in a warehouse,
identifying the commodities deposited. It is non-
negotiable if permitting delivery only to a specified person
or firm, but it is negotiable if made out to the order of a
person or firm or to a bearer. Endorsement (without
endorsement if made out to bearer) and delivery of a
negotiable warehouse receipt serves to transfer the
property covered by the receipt serves to transfer the
property covered by the receipt. Warehouse receipts are
common documents in international banking.
Warehouse-to-Warehouse: A clause in marine
insurance policy whereby the underwriter agrees to cover
the goods while in transit between the initial point of
shipment and the point of destination, with certain
limitations, and also subject to the law of insurable
interest. When it was first introduced, the warehouse-
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towarehouse clause was extremely important, but now its

importance is diminished by the marine extension
clauses, which override its provisions.
War Risk: The possible aggressive actions against a ship
and its cargo by a
belligerent government. This risk can be insured by a
marine policy with a risk clause.
War Risk Insurance: Insurance issued by marine
underwriters against war-like operations specifically
described in the policy. In former times, war risk insurance
was taken out only in times of war, but currently many
exporter cover most of their shipments with war risk
insurance as a protection against losses from derelict
torpedoes and floating mines placed during former wars,
and also as a safeguard against unforeseen warlike
developments. In the United states, war risk insurance is
written in a separate policy from the ordinary marine
insurance; it is desirable to take out both policies with the
same underwriter in order to avoid the ill effects of a
possible dispute between underwriters as to the cause
(marine
peril or war peril) of a given loss.
Weight: Gross - The weight of the goods including
packing, wrappers, or
containers, internal and external. The total weight as
shipped.
• Net - The weight of the goods themselves without the
inclusion of any
wrapper.
• Tare - The weight of the packaging or container.
• Weight/Measurement Ton - In many cases, a rate is
shown per
weight/measurement ton, carrier's option. This means
that the rate will be
assessed on either a weight ton or measurement ton
basis, whichever will
yield the carrier the greater revenue. As example, the rate
may be quoted
PIMSR
128
on the basis of 2,240 pounds or 40 cubic feet or of 1

metric ton or 1 cubic
meter.
• Weight Ton - There are three types of weight ton; the
short ton, weighing 2,000 pounds; the long ton, weighing
2,240 pounds; and the metric ton weight 2,204.68
pounds. The last is frequently quoted for cargo being
exported from Europe.
Weight, Legal: Net weight of goods, plus inside packing.
Weight Load Factor: Payload achieved as against
available, expressed as a
percentage. Cargo is frequently limited by volume rather
than weight; load factors of 100% are rarely achieved.
Wet Lease: An arrangement for renting an aircraft under
which the owner
provides crews, ground support equipment, fuel and so on
(of dry lease).
w.g.: Weight guaranteed
Wharfage: A charge assessed by a pier or dock owner
against the cargo or a steamship company for use of the
pier or dock.
W. & I.: Weighing and Inspection
With Average: A marine insurance term meaning that
shipment is protected for partial damage whenever the
damage exceeds a stated percentage.
Without Reserve: A term indicating shipper's agent or
representative is
empowered to make definitive decisions and adjustments
abroad without
approval of the group or individual represented. See
advisory capacity.
With Particular Average (W.P.A.) : An insurance term
meaning that partial loss or damage of goods is insured.
Generally must be caused by sea water. Many have a
minimum percentage of damage before payment. May be
extended to cover loss by theft, pilferage, delivery,
leakage, and breakage.
W/M: Weight and/or measurement
PIMSR
129
W.P.A.: With Particular Average

W/R: Warehouse receipt
W.R.: War Risk
X Heavy: Extra Heavy
X Strong: Extra strong
XX Heavy: Double extra heavy
XX Strong: Double extra strong
Y/A: York-Antwerp Rules - A code of rules adopted by an
international
convention in 1890, amended in 1924 and again in 1950,
for the purpose of establishing a uniform basis for
adjusting general average. Certain nationalities decline to
observe certain of the rules adopted. United States
shipping interests generally abide by general rule "F" and
numbered rules 1 to 15 and 17 to 22, inclusive and
specifically set this forth in a Bill Of Lading Clause.
Yield: Revenue, not necessarily profitable, per unit of traffic.
PIMSR

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IN PARTIAL FULFILMENT OF PGDM IN INTERNATIONAL

Under the guidance of

PIMSR, NEW PANVEL

PILLAI’S INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

(A recognized institute and given A rank by NACC and affiliated to AICTE)

This project report entitled “Export

Life of human beings is fullof interactions.

A large number of individual contributed to this project.

First of all I owe my heartfelt gratitude to my guide prof.

I would like to extend my heartfelt thanks to Mr. Vikram

I would also like to thank Ms. Kirti, Senior Executive, of

I must also thank the management of committed cargo

TO WHOMESOEVER IT MAY CONCERN

This is to certify that the project report titled

Date: (Dr. R. Chandran)

Scope of the Project 15

Limitations of the study 16

Benefits Given by company 26

Data Analysis and Interpretations 58

This project is all about to know about export import

At a meeting of representatives of the coir exporters with

Indian coir exports during 2008-09 had touched 1,94,791

Coir export was 1,87,566 tonnes valued at Rs 592 crore

With the conduct of the India International Coir Fair-2009

Mr Vijayaraghavan hoped that the Coir Exporters

The need to obtain timely governmental sanction to

The 30-odd Coir Board showrooms spread over the country

OBJECTIVE OF THE STUDY

The main objectives of the research were:

➢ To know about export import process.

➢ To know what are the documents required before and

after sailing the cargo.

➢ To know different type of container used in shipment.

Collect data/information about cargo through:

 Primary data collection:-

 Secondary data collection:-

Research design is the based framework, which provides

CENTRE : ALL OVER INDIA

SCOPE OF THE STUDY

The scope of marketing research could cover the business

LIMITATIONS OF THE STUDY

➢ Not an exact science

➢ Not exact tool for forecasting

➢ In experience research staff

➢ Narrow conception of marketing research

INTRODUCTION OF THE ORGANIZATION

An ISO 9001:2000 Company Incorporated head quarter in

Committed Group has established its hub at Los Angeles, Toronto,

Committed Group management has the right mix of experience and

✔ Clearance of Export and Import Cargo

✔ Commercial, Diplomatic and Non-Diplomatic Consignment.

“To be focused as a pro-active cargo gateway by anticipating and

The Committed Group management team brings together leaders with

These individuals form a strong foundation that provides

The Operational team at Committed Group comprising of more than

Thus, with strong gamut of professional from cargo industry under

Multi Modal Facility

Committed Group operates as Multimodal Transport Operator (MTO)

DDP: Delivered Duty Paid Shipments.

DDU: Delivered Duty Unpaid Shipments.

CI Shipments: Cargo picked up on cost and insurances terms

CF Shipments: Cargo picked up on cost and freight paid terms

CIF Shipments: Cargo picked up on cost Insurance and freight paid