Master of Business Administration: Summer Training Project Report

Summer Training Project Report
Undertaken at
Teck Link Sales & Marketing Pvt. Ltd.
Submitted in Partial Fulfillment of the Requirement for the Award of
the Degree of
Master of Business Administration
By
Mayank Gupt
11-MBA-29
11-5941
Under the Supervision of

Mr. Manish Jain
Managing Director
Centre for Management Studies

Jamia Millia Islamia, New Delhi – 110025
Export Process & Documentation
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Certificate
This is to certify that Mayank Gupt has completed his Summer Training Project
under my direct supervision. He underwent the Summer Training on and from 15
MAY 2012 (Date of Joining) to 15 May (Date of Completion), during which he was
assigned the task of Reviewing Documents related to export & Import
(Including all procedure of Export and Import) and contact to customers,
which he has successfully completed and the same is presented in the form the
present Project Report.
It is further certified that the project report submitted by Mayank Gupt reflects
his/her original work and based on the work assigned to him/her for the Summer
Training and that the present project report has not been submitted elsewhere for
award of any degree, diploma or fellowship.
Signature of Supervisor
Managing Director

Jamia Millia Islamia ,New Delhi-110025
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Declaration
I, Mayank Gupt, a bonafide student of MBA (Full Time) Programme at the Centre
for Management Studies, Jamia Millia Islamia, New Delhi, hereby declare that I
have undergone the Summer Training at Teck Link Sales & Marketing Pvt. Ltd.
under the supervision of Mr. Manish Jain on and from 15 May 2012 (Date of
Joining the Organization) to 15 JUL 2012 (Date of Completion).
I also declare that the present project report is based on the above summer
training and is my original work. The content of this project report has not been
submitted to any other university or institute either in part or in full for the award
of any degree, diploma or fellowship.
Further, I assign the right to the university, subject to the permission from the
organization concerned, use the information and contents of this project to
develop cases, caselets, case leads, and papers for publication and/or for use in
teaching.
Mayank Gupt
11-MBA-29
Place: New Delhi
Date:

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ACKNOWLEDGEMENT
Life of human beings is full of interactions. No one is self-sufficient by
himself whenever anyone is doing some serious and important work a lot of
help from the people concerned is needed & one less 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 all of them for their help and encouragement. My writing in this
project report has also been influenced by a number of website and standard
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 Mr. S.
Veeramani for his noble guidance throughout the completion of the Project.
I would like to extend my heartfelt thanks to Mr. Manish Jain
Managing Director of Teck Link Sales & Marketing Pvt. Ltd. New Delhi
Branch for giving me an opportunity to work on this project.
I would also like to thank Mr. B.P Jain (Senior Adviser) and Mrs.
Monika Jain (Export Manager) of Teck Link Sales & Marketing Pvt. Ltd.
Gurgaon for their guidance, inspiration, and constructive suggestions, which
helped me in the Project.
I must also thank the management of Teck Link Sales & Marketing
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 and timely.
Mayank Gupt
11-MBA-29

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INDEX
Title Page No.

Important Abbreviations 6
Introduction of study 10
Objective of study 12
Research Methodology 13
Research Design 14
Scope of the Study 15
Limitations of the study 16
Company Profile 17
Benefits Given by company 22

6
Theoretical background 23
Data Analysis and Interpretations 57
Findings 68
Bibliography 72
Glossary 73
Abbreviations

7

8

9

10

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INTRODUCTION OF STUDY
This project is all about to know 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 Teck Link Sales & Marketing Pvt. Ltd. could
sustain in the competitive world by providing vast range of product for cement
manufacturing plant 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 of Teck Link Sales & Marketing Pvt. Ltd.

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The main objectives of the research were:
 To know about export import process.
 To know what are the documents required before and after sailing at
Teck Link Sales & Marketing Pvt. Ltd.

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RESEARCH METHODOLOGY
Collect data/information about Teck Link Sales & Marketing Pvt.

Ltd. through:
 Primary data collection:-
 E-mail
 Telephone
 Invoice
 Packing List
 Secondary data collection:-
 Invoice
 Packaging list
 Shipping bill
 Internet

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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 the purpose of project, it permitted the research to
derive more accurate generalization whose reliability could be measured.
CENTRE : Delhi and Gurgaon
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.
 Better Management of documents in office

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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
Teck Link Sales & Marketing Pvt. Ltd. have more than 10 years of experience in
supply of original spares, equipment, machinery and solutions to cement plants.
Teck Link Sales & Marketing Pvt. Ltd. has supplied huge range of spares from
European and Asian manufacturers at competitive prices and flexible terms and
conditions. Above all, Teck Link Sales & Marketing Pvt. Ltd. is committed to
supplying every spare part or service customer plant needs to operate. When
unexpected problems occur, customer can trust Teck Link Sales & Marketing Pvt.
Ltd. to respond rapidly – and accurately: as part of Teck Link Sales & Marketing
Pvt. Ltd. quality assurance program, Teck Link Sales & Marketing Pvt. Ltd.
always double check the documentation to ensure that the correct part is
ordered. Teck Link Sales & Marketing Pvt. Ltd. long experience in the
manufacture and specification of spare parts can help ensure optimum
performance and cost-effective operation at customer plant – even when it
comes to spare parts for older legacy.
The success of company is attributed to sheer business acumen and
Professional expertise of our personnel. Teck Link Sales & Marketing Pvt. Ltd
focus upon delivery of high quality services along with proactive client services to
offer our clients a competitive advantage and create value for their business.
Teck Link Sales & Marketing Pvt. Ltd is constantly investing resources to remain
the force to reckon with of the new technologies that are available today,
accessing extensive research and development facilities. Our motive is to sustain
international standards and synchronize it with quantity because customer
satisfaction is our major concern. Today, we have a cross-section of client across
the world.

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Pumps Gearboxes Seals & Gaskets Compressors

Valves Couplings Heat Exchangers Hoists
Blowers Bearings Filters– Filter Elements Air cannons
Fans Greasing Units Expansion Joints Backstops
Bladders Filter Bags Oil Filtration Rigs Magnetic Separator
Cylinders Nozzles Acoustic Cleaner Hoses
Conveyor Belts Idlers Chains

Heat Resistant Belts Rollers Earth Moving Machinery Spares
Sprockets Pulleys Bucket Elevators
Belt Cleaners Drum Motors Bulk Handling Equipment
Services
Teck Link Sales & Marketing Pvt. Ltd is a reputed consultant and a group of
Cement Professionals located in Gurgaon (India), engaged in providing
consultation to Cement Industry regarding Plant Optimization, Fuel Consumption
Reduction, Raw Mix Designing, Production Enhancement, Commissioning of
New Plants, Layout Designing, Spare Parts Planning, Feasibility Study of Plant
Up-gradation and New Projects, Procurement Assistance, Detailed Engineering
demands of various customers across the globe.

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Teck Link Sales & Marketing Pvt. Ltd. can assist customer in the following
activities:
 Consultation to Cement Industry.
 Project Engineering.
 Plant Operation & Maintenance Contracts.
 Turkey Cement Projects. (Plant Erection & Fabrication jobs.)
 Supply of Engineering Equipments including complete Grinding
 Units.
I) Consultation to Cement Industry.
Teck Link Sales & Marketing Pvt. Ltd. is a group of expert professionals with vast
experience of working with leading Cement manufacturers in India and abroad.
Teck Link Sales & Marketing Pvt. Ltd.can do plant audits, optimization of
Clinkerization & Grinding Units, Raw Mix
Designing, Plant Audits, Up-gradation planning and feasibly, Spare Parts
Inventory planning, Fly Ash Handling in Cement Grinding Units, Lay out
Optimization etc.
II) Project Engineering

Teck Link Sales & Marketing Pvt. Ltd. have recently started a project engineering
company and provide the complete engineering details related to a Cement
Plants viz , and project feasibility study, lay outing, detailed engineering,
modifications, process improvement & optimization etc.
III) Plant Operation & Maintenance Contract

Teck Link Sales & Marketing Pvt. Ltd. can take Plant Operation Contracts by
putting up our experts in each department working in co – ordination with the
existing Staff of the plant.
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IV) Teck Link Sales & Marketing Pvt. Ltd. can source the
Engineering Items from India :
1 Pollution Control Equipments.
2 Spraying Nozzles / Systems.
3 Cast Basalt Bends
4 Wear Resistant Liners, Chrome Carbide Hammers.
5 Any kind of casting jobs.
6 Material Conveying/Handling Equipments. (Any Type)
7 Bag Filters.
8 Oil Seals
9 Grinding Media
10 Any kind of Fabrication & Machining jobs.
11 3- Way Diverter / 2- W Diverters, Slide Gates etc.
12 Engineering Equipments viz. Roller Press, Stacker Reclaimer, Girth Gears,
Kiln Shells, Kiln Tires, Support Rollers etc.
13 Any Electrical/Instrumentation item.
14 Cement Grinding Unit.
15 Complete Cement Plant upto 1000 TPD.
Quality
Quality has always been a point of focus for us and we endeavor the parameter
of quality with our passion to provide quality in each and everything that we
supply. We follow stringent quality measures to check the quality of products. We
believe that "Quality is the best way of eliminating competition" and we are
proud to say that we have been consistently maintaining impeccable standards of
quality, which has now become our trademark and have earned us accolades
from our clients.The company has a team of experienced manpower that
performs for the most accurate results. The Research and Development team is
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one of the hallmarks of any progressive organization. Constant innovation in

quality and technology are the very factors by which we work within our
organization and that is reflected in the quality standards that we follow.
Vision
Our vision is our driving force to ensure that our clients receive quality products
at cost-effective prices. Quality - Customization - Innovation and Value
Engineering has been the path through which we have always delivered the right
products at the right price to our customers.
BENEFITS GIVEN BY COMPANY
 Origin Pickup/Trucking.
 Warehousing if required.
 Customs Clearance & Documentation at origin.
 Carriage by Sea or Air by payment of Freight.
 Inland Trucking if required.

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 Customs Clearing of goods at destination and Warehousing if need be.
 Door Delivery of the cargo.
THEORETICAL BACKGROUND
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

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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

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ELEMENTS OF LOGISTICS SYSTEM

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MODE OF TRANSPORTATION
 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.

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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.
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 freight rates. 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.

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 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.
 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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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
 COPY OF 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.

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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.
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

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 Shipment advice
After that, bank scrutinizes these documents and if found correct make
payment to exporter against documentations.

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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.
 Item code
 Description of goods

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 Net weight
 Gross weight
 Quantity
 Rate CIF EURO
 Amount CIF EURO
 Amount in words
 Declaration:
 Authorised signature

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Steps Involved in Export Transaction:
Step1
In the case of first time exporters-importers ,they need to apply to the director
General of Foreign Trade DGFT REGIONAL office for getting Imorter-Exporter
Code( IEC Number)
Step2.
The exporter has to register with the concerned export promotion council in order
to obtain various permissible benefits given by the government ,they need to get
registered with sales tax office and even Export Credit Guarantee Corporation
.
Step3
The exporter can now go in for procuring orders ,by first sending a sample
order,once both exporter and importer have agreed upon the terms and
conditions of the contract like pricing ,documentation ,freight charges
,currency etc.
Step4
With export order in hand , the exporter starts manufacturing goods or

buying them from other manufacturer .
Step5.
The exporter makes arrangement for quality control and obtain a certificate
confirming the quality of the goods from the inspector of quality control.

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Step6
Exportable are than dispatch to ports /airports for transit.
Step7.
The export firm has to apply to an insurance company for marine/air

insurance cover( The exporter asks the importer to take marine/insurance under
cost and freight ,free on board etc., terms of contract.)
Step 8.
The exporter contacts the clearing and forwarding agent (C &F) for storing the
goods in warehouse .A document called Shipping Bill, Required for allowing
shipment by customs Authority is presented by the forwarding agent.
Step9.
Once the goods are loaded into the ship , a receipt called ‘Mate ‘s receipt is
issued by the captain to the ship superintendent of the port.
Step10.
The superintendent calculates ports charges and handover to the exporter /C&
F agent .
Step11.
After making the ports payments ,the C&F agent or exporter gets the bill of
lading or Airway Bill From the official agent of the shipping company or airline
Step12.
The exporter applies to the relevant Chamber of Commerce for obtaining

Certificate of origin, stating that the goods of originated from India.
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Step13.
The exporter sends a set of document to the importers ,stating the date of
shipment,name of vessel , etc.
Step14.
Within 21 days after shipment the exporter must present all the document at his
bank which scrutinizes these documents against the original letter of credit
/purchase order.
Step15.
The exporter’s bank sends these document to the importer’s bank which should
make the payment on of before the due date.

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EXPORT- IMPORT DOCUMENTATION
Commercial / Regulatory Documents
 Commercial set of documents are mainly used for Commerce. In other

words these are documents normally exchanged between buyer and
seller.
 Regulatory documents are required in dealing with various regulatory
authorities such as customs, RBI, Excise, Licencing authorities Inspection
and other Export Promotion bodies for availing incentives etc.
 Documents are categorized into two categories,

namely Commercial Documents and Regulatory
Documents.
Commercial Regulatory
Commercial Invoice Shipping Bill
Inspection Certificate ARE1
Insurance Certificate Exchange Declaration Form
(GR/SDF Form)
Bill of Lading / AWB Airway Bill
Certificate of Origin Consular Invoice
Bill of Exchange
Shipment Advice
Packing List

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Principal Documents Auxiliary Documents

Commercial Invoice Performa Invoice
Inspection Certificate Mate Receipt
Insurance Certificate
Certificate of Origin
Bill of Lading
Packing List
Bills of Exchange
Principal Documents
Commercial Invoice
An invoice is very important as it contains the names of the exporter, importer

and the consignee and the description of goods. It has to be signed by the
exporter. Other documents are prepared by deriving information from the invoice.
It is required to be presented before different authorities for different purposes.
Inspection Certificate
It is required by some importers and countries in order to get the specifications of

the goods shipped attested. The attestation is usually performed by a
government agency or by independent testing organisations.

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Insurance Certificate
This document, obtained from the freight forwarder, is used to assure the
consignee that insurance will cover the loss or damage to the cargo during transit
(marine/air insurance).
Certificate of Origin
This certificate issued by the Local Chamber of Commerce indicates that the
goods, which are being exported, are actually manufactured in a specific country
mentioned therein. It is sent by the exporter to the importer and is useful for the
clearance of the goods from the customs authority of the importing country.
Bill of Lading
This document is issued by the shipping company acknowledging the receipt of

the goods mentioned in the bill, for shipment on board of the vessel.
The B/L is the legal document to be referred in case of any dispute over the
shipment. It contains:
 The shipping company’s name and address
 The consignee’s name and address
 The port of loading and port of discharge
 Shipping marks and particulars
 Number of packages and the goods
 Gross weight and net weight
 Freight details and name of the vessel
 Signature of the shipping company’s agent

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Packing List
This statement gives the packing details of goods in a prescribed format. It is a

very useful document for customs at the time of examination and for warehouse
keeper of the buyer to maintain a record of inventory and to effect delivery.
Bills of Exchange
It is an instrument in writing, containing an order, signed by the maker, directing a

certain person to a pay a certain sum of money only to the order of a person to
the bearer of the instrument. It is commonly known as a draft.
Auxiliary Documents
Performa Invoice
Performa Invoice as the name suggests, is a Performa of the invoice. It is

prepared by an exporter and sent to the importer for necessary acceptance. It
suggests to a buyer what the actual invoice would look like and is sent to him
when he is ready to purchase the goods.
Mate Receipt

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 Port authorities recover port dues from exporter on production

of this receipt.
 On payment of Dock dues, the exporter or his agent collects
the receipt from the Port-Trust authorities and hands over to
shipping company for preparing Bill of Lading.
 Bill of Lading is prepared on the basis of Mate’s Receipt.
 It is of a transferable nature.
 In case of ascertaining the exact date of shipment, the mate’s
receipt date is also very important.
 Normally, the date of Export is regarded as “the date of Mate
Receipt or the date of Bill of Lading, whichever is later”.
Regulatory Documents
Shipping Bill/Bill of Entry
It is a requisite for seeking the permission of customs to export goods. It contains

a description of export goods by sea/air. It contains a description of export goods,
number and kind of packages, shipping marks and number numbers, value of
goods, the name of the vessel, the country of destination, etc. On the other hand,
importers have to submit copies of document called Bill of Entry for customs
clearance. Later, a copy has to be given to the bank for verification.
ARE-1 Form

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This form is an application for the removal of excisable goods from the factory
premises for export purposes. The ARE-1 form has multiple copies which are
distributed to different authorities, including customs, range office of excise,
refund office of excise, etc.
Exchange Declaration Form (GR/SDF Form)
The RBI has prescribed a GR form (SDF), a PP form and SOFTEX forms to
declare and export transactions. The GR form contains:
a) Name and address of the exporter and description of goods.
b) Name and address of the authorized dealer through whom proceeds of the
exports have been or will be realized.
c) Details of commission and discount due to foreign agent or buyer.
d) The full export value, giving break up of FOB, Freight, Insurance, Discount and
Commission, etc.
Airway Bill
This receipt issued by an airlines company or its agent for carriage of goods is a
contract between the owner of the goods and the carrier. It should indicate freight
pre-paid or freight to collect. The first three digits of the Airway Bill Number
represent the code, which identifies the carrier.
Consular Invoice

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This invoice is needed to be submitted for certification to the embassy of the

country concerned. Its main purpose is to enable the importer’s country to collect
accurate and authenticated information about the value, volume, quantity, source
etc. of the import for assessing import duties and for statistical purposes. It helps
the importer to get goods cleared through customs without any undue delay.
INCOTERMS
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INCOTERMS are a set of three-letter standard trade terms most commonly used
in international contracts for the sale of goods. It is essential that you are aware
of your terms of trade prior to shipment.
• EXW – EX WORKS (… named place of delivery)
The Seller’s only responsibility is to make the goods available at the Seller’s
premises. The Buyer bears full costs and risks of moving the goods from there to
destination.
• FCA – FREE CARRIER (… named place of delivery)
The Seller delivers the goods, cleared for export, to the carrier selected by the
Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises.
From that point, the Buyer bears the costs and risks of moving the goods to
destination.
• CPT – CARRIAGE PAID TO (… named place of destination)
The Seller pays for moving the goods to destination. From the time the goods are
transferred to the first carrier, Buyer bears the risks of loss or damage.
• CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination)
The Seller pays for moving the goods to destination. From the time the goods are
transferred to the first carrier, Buyer bears the risks of loss or damage. The
Seller, however, purchases the cargo insurance.
• DAT – DELIVERED AT TERMINAL (… named terminal at port or place of
destination)
The Seller delivers when the goods, once unloaded from the arriving means of
transport, are placed at the Buyer’s disposal at a named terminal at the named
port or place of destination. “Terminal” includes any place, whether covered
or not, such as a quay, warehouse, container yard or road, rail or air cargo
terminal. The Seller bears all risks involved in
bringing the goods to and unloading them at the terminal at the named port or
place of destination.
• DAP – DELIVERED AT PLACE (… named place of destination)
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The Seller delivers when the goods are placed at the Buyer’s disposal on the
arriving means of transport ready for unloading at the names place of destination.
The Seller bears all risks involved in bringing the goods to the named
place.
• DDP – DELIVERED DUTY PAID (… named place)
The Seller delivers the goods -cleared for import – to the Buyer at destination.
The Seller bears all costs and risks of moving the goods to destination, including
the payment of Customs duties and taxes.
2. MARITIME-ONLY TERMS
• FAS – FREE ALONGSIDE SHIP (… named port of shipment)

The Seller delivers the goods to the origin port. From that point, the Buyer bears
all costs and risks of loss or damage.
• FOB – FREE ON BOARD (… named port of shipment)
The Seller delivers the goods on board the ship and clears the goods for export.
From that point, the Buyer bears all costs and risks of loss or damage.
• CFR – COST AND FREIGHT (… named port of destination)
The Seller clears the goods for export and pays the costs of moving the goods to
destination.The Buyer bears all risks of loss or damage.
• CIF – COST INSURANCE AND FREIGHT (… named port of destination)
The Seller clears the goods for export and pays the costs of moving the goods to
the port of destination.The Buyer bears all risks of loss or damage. The Seller,
however, purchases the cargo insurance.

53
For Importer Exporter Code Number (IEC)
GUIDELINES FOR APPLICANTS
1.Two copies of the application must be submitted unless otherwise mentioned .

2.Each individual page of the application has to signed by the applicant.
3.a.Part1&Part4 has to be filled in by all applicant .In case of applications
submitted electronically, no hard copies of Part 1 may be submitted
.However in case where applications are submitted otherwise ,hard copy
of Part 1 has to be submitted
b.Only relevant portions of Part need to be filled in.
4.Application must be accompanied by document as per details given
below:
I. For Importer Exporter Code Number(IEC)
1. Bank Receipt (in duplicate) Demand Draft/EFT details evidencing payment of
application fee in terms of Appendix21 B.
2. Certificate from the Banker of the applicant firm in the format given in Appendix
18 A.
3. Self certified copy of Permanent Account Number (PAN) issued by Income Tax
Authorities.
4. Deleted
5. Two copies of passport size photographs of the applicant duly attested by the
banker of the applicant.

54
For Import Licence for Restricted Items

GUIDELINES FOR APPLICANTS
5. Two copies of the application must be submitted unless otherwise mentioned.

6. Each individual page of the application has to be signed by the applicant.
7. a) Part 1 & Part 4 has to be filled in by all applicants. In case applications
submitted electronically. No hard copies of Part 1 may be submitted. However, in
cases where applications are submitted otherwise, hard copy of Part 1 has to be
submitted.
b). Only relevant portions of Part 2 need to be filled in.
8. Application must be accompanied by documents as per details given below:
II. For Import Licence for Restricted Items
1. Bank Receipt (in duplicate)/ Demand Draft/ EFT details evidencing

payment of application fee in terms of Appendix 21 B.
2. Self certified copy of Performa Invoice from foreign supplier showing CIF
value of goods.
3. Self certified copy of the Registration Certificate issued by concerned
authority.
4. Self certified copy of the recommendation letter by the concerned
authority.
5. In case import of gift, Donor’s letter in original.
6. In case of import of Ammunition, a certificate from the Chartered
Accountant/Cost and Works Accountant/Company Secretary showing
sales turnover of ammunition (indigenous and imported) during the
preceding three licensing years.

55
For Import Certificate under Indo-US Memorandum

GUIDLINES FIOR APPLICANTS
9. Two copies of the application must be submitted unless otherwise mentioned.

submitted.
II A. For Import Certificate under Indo-US

Memorandum
1. Bank Receipt (in duplicate)/ Demand Draft/ EFT details evidencing

payment of application fee in terms of Appendix 21 B.
2. Self certified copy of letter from US supplier in support of request for
import certificate.

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For Export License for restricted Items

GUIDLINES FOR APPLICANTS
13. Two copies of the application must be submitted unless otherwise

mentioned.
submitted.
16. Application must be accompanied by documents as per details given

below:
III. For Export License for Restricted Items
1. Bank receipt (in duplicate)/Demand Draft/EFT details evidencing payment

of application fee in terms of Appendix 21 B.
2. Self certified copy of Export Order.

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For Export Licence for SCOMET Items

GUIDLINES FOR APPLICANTS
17. Two copies of the application must be submitted unless otherwise

mentioned.
submitted.
III A For Export Licence for SCOMET Items
1.Bank receipt (in duplicate)/Demand Draft/EFT details evidencing payment of

application fee in terms of Appendix 21 B.
2.For Export of Special Chemicals in Categories 1B and 1C of schedule2
Appendix 3 of ITC (HS) Classification of Export & Import items:
a). Self certified copy of export order.
b). End User certificate indicating the end product for which the item of export
will be used by end user in the format given in Appendix 36.
3. For Export of all other category items of Schedule 2 Appendix 3 of ITC
(HS) Classification of Exports & Import items except those given in serial
no. 2 above:
a) Self certified copy of export order.
b) End User certificate indicating the end product and/or end purpose for which
the item of export will be used by end user in the format given in Appendix 36.

58
c) Technical Specifications of the items to be exported (not exceeding one page

for each item).
d) Self certificate copy of Bill of Lading for items exported earlier under a Licence
as per serial no. 3 of Part B of sub section III A.

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For DEPB applications

GUIDLINES FO APPLICANTS
21. Two copies of the applications must be submitted unless otherwise

mentioned.
23 a) Part 1 & Part 4 has to be filled in by all applicants. In case applications
submitted.
24. application must be accompanied by documents as per details given
below:
V C. For DEPB applications
1. Bank receipt (in duplicate)/Demand Draft/EFT details evidencing payment

of application fee in terms of Appendix 21 B.
2. Export Promotion (EP) copy of Shipping Bill(s). In case of exports through
notified land customers under paragraph 4.40, Bill of Export may be
accepted in lieu of Shipping Bill.
3. Bank Certificate of Exports and Realisation as given in appendix 22 A or
Foreign inward Remittance Certificate (FIRC) in the case of direct
negotiation of documents or Appendix 22D in the case of offsetting of
export proceeds with the approval of RBI. In case of FIRC, a declaration
from the exporter that the remittance is in respect of Shipping Bill(s) No
dated shall also be furnished.

60

61
DATA ANALYSIS
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.

62
Step 1
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.

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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:
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.

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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
 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.

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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.

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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.
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%

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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
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

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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 of lading from the shipping line and then
present the exporter with a house bill of lading (See bill of lading below)

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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.

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Endorsed Bills of Lading
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".

72
FINDINGS

73

74

75

76
IMPORTER
PURCHASES ORDER / L/C
EXPORTER
CERTIFICATE INVOICE PACKING GR ARE1 MARINE
OF LIST FORM FORM INSURANCE
INSPECTION POLICY
C & F AGENT
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
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
BIBLIOGRAPHY

77
Export Import Documentation - Prof. D.C. pai ,Nabhi Publication

Logistics in International Business - Prof. Rajeev Aserkar
REFERENCES – INTERNET
www.google.co.in
www.ask.com
www.exit.net
www.eximguru.com
www.dgft.com
www.dgft.org
GLOSSARY INTERNATIONAL FREIGHT TERMS

78
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,
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.

79
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, 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.

80
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
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.

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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
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.

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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.
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.

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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, 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

84
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.
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

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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 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

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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
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.

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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.
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.

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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.
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

89
ready access to the cargo (closure or permanently hinged door not applicable to
flatrack vehicle rack or portable liquid tank). All types of containers will have
constructions, fittings and fastenings able to withstand without permanent
distortion, all the stresses that may be applied in normal service use of
continuous transportation. All containers must bear manufacturer's specifications.
Container 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.

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Countertrade: Is a reciprocal trading arrangement, which includes a variety of

transactions involving two or more parties.
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
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

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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.
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,

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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.
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

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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.
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).

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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
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.

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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.
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,

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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 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

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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.
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.

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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 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.

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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
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

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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 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

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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 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.

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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 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

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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.
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

104
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.
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.

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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
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

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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 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

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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
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

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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
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.

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Perils of the Sea: Most losses covered by a marine insurance policy come
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 power to levy
dockage and wharfage charges, landing fees, etc.

110
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
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

111
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.
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

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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.
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

113
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
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.

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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
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.

115
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.
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

116
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.
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

117
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 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.

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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-
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

119
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
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

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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
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.


Master of Business Administration: Summer Training Project Report

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Master of Business Administration: Summer Training Project Report

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Summer Training Project Report

Master of Business Administration

Under the Supervision of

Centre for Management Studies

Centre for Management Studies

Centre for Management Studies

Centre for Management Studies

Title Page No.

Scope of the Study 15

Limitations of the study 16

Benefits Given by company 22

Centre for Management Studies

Data Analysis and Interpretations 57

Centre for Management Studies

Centre for Management Studies

Centre for Management Studies

Centre for Management Studies

Centre for Management Studies

This project is all about to know export import procedure/ documentation

Centre for Management Studies

Centre for Management Studies

The main objectives of the research were:

 To know about export import process.

Centre for Management Studies

Collect data/information about Teck Link Sales & Marketing Pvt.

 Primary data collection:-

 Secondary data collection:-

Centre for Management Studies

Research design is the based framework, which provides guidelines for

CENTRE : Delhi and Gurgaon

RESEARCH TECHNIQUE: QUALITATIVE & QUANNTATIVE

TOOL USED : TELEPHONIC & E-MAIL

DATA SOURCE : PRIMARY & SECONDARY

Centre for Management Studies

SCOPE OF THE STUDY

The scope of marketing research could cover the business problems

 Types of consumers that compromise present and potential markets.

 Buying habits and pattern of consumption

 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.

 Better Management of documents in office

Centre for Management Studies

LIMITATIONS OF THE STUDY

 Not an exact science

 Not exact tool for forecasting

 In experience research staff

 Narrow conception of marketing research

Centre for Management Studies

Centre for Management Studies

Centre for Management Studies

Pumps Gearboxes Seals & Gaskets Compressors

Conveyor Belts Idlers Chains

Centre for Management Studies

II) Project Engineering

III) Plant Operation & Maintenance Contract

one of the hallmarks of any progressive organization. Constant innovation in

BENEFITS GIVEN BY COMPANY

 Customs Clearance & Documentation at origin.

 Carriage by Sea or Air by payment of Freight.

 Inland Trucking if required.