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FedEx - Glossary of Shipping Terms
FedEx - Glossary of Shipping Terms
International Shipping
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Shipping Guide
Shipping Guide
Glossary of International Shipping, Customs and Regulatory terms
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Find Your Rates Brush up on you international shipping vocabulary or find the definition for a specific shipping or
customs term.
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Bill of Lading
A contract between the owner of the goods and the carrier A straight bill of lading is nonnegotiable. A
negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit.
Bill transportation to
Select sender, recipient, third party, or Bill Collect (Authorized FedEx Ground Accounts Only) from the
drop-down menu as the payer of transportation charges and any duties/taxes/fees associated with the
shipment:
Bill sender: Select this option to bill the FedEx account assigned to the Sender. A valid, 9-digit
Sender FedEx account number must be entered for transportation charges.
Bill recipient: Select this option to bill the FedEx account assigned to the Recipient. A valid, 9-digit
Recipient FedEx account number must be entered for transportation charges.
Bill third party: Select this option to bill the FedEx account assigned to a party other than the
Sender or Recipient. A valid, 9-digit Third Party FedEx account number must be entered for
transportation charges.
For more information, please call Customer Service.
Bonded Warehouse
A warehouse for storage or manufacture of goods on which payment of duties is deferred until the
goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points.
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Certificate of Origin
A document that certifies the country where the product was made (i.e., its origin). A common export
document, a Certificate of Origin is needed when exporting to many foreign markets. It may be
required in order to obtain preferential tariff treatment under several Free Trade Agreements (i.e.,
NAFTA, APTA, DR_CAFTA, etc)
Consignee:
A person or company (named in the bill of lading ) to whom commodities are shipped.
before you send it. For FedEx Express and FedEx Express Freight shipments, your quote is based on
rates associated with your FedEx Account Number and will include any applicable discounts. This
Online Tool is not available in all Countries, you can call Customer Service to get more information.
Customhouse Broker:
An individual or firm licensed to enter and clear goods through Customs.
Customs
The government service that is responsible for the assessment of import and export duties and taxes
and administration of other laws and regulations that apply to the importation, transit and exportation
of goods.
This term is also used when referring to any part of the customs service or its main or
subsidiary offices.
This term is also used adjectivally in connection with customs officials, import or export
duties control on goods, or any other matter within the purview of customs (customs officer,
customs duties, customs office, customs declaration).
Customs Declaration
A document that traditionally accompanies exported goods bearing such information as the nature of
the goods, their value, the recipient and their ultimate destination. Required for statistical purposes, it
accompanies all controlled goods being exported under the appropriate permit.
Customs Invoice
A formal document used to clear goods through customs in the importing country by providing
pertinent shipment information including but not limited to country of origin, description and value.
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Dangerous Goods
(Dangerous Goods shipping is currently available via FedEx Ship Manager for U.S. domestic and U.S.
export FedEx Express shipments only.) Dangerous goods are articles or substances which are
capable of posing a risk to health, safety, property, or the environment and which are classified
according to the International Air Transport Association (IATA) regulations or 49 Code of Federal
Regulations (49 CFR).
Delivered/Duty Paid:
While the term "Ex Works" signifies the seller's minimum obligation, the term "Delivered/Duty Paid,"
when followed by words naming the buyer's premises, denotes the other extreme - the seller's
maximum obligation. The term may be used irrespective of the mode of transport. If the parties wish
that the seller should clear the goods for import but that some of the cost payable upon the import of
the goods should be excluded - such as value-added tax (VAT) and/or other similar taxes. This should
be made clear by adding words to this effect (e.g., "exclusive of VAT and/or taxes").
Delivery Instructions:
Also called Delivery Orders, these documents provide specific information to a carrier regarding
delivery to a specific port, pier, terminal, airport, or steamship line. They show the shipping carrier,
delivery deadlines, name and address of consignee, and the contract name and telephone number of
the shipper in case of delivery problems.
Dimensional Weight
Dimensional weight is a calculation of the shipment's weight based on its volumetric standard instead
of its actual weight. Dimensional weight is calculated by multiplying the length by width by height of
each package in inches or centimeters and dividing by a dimensional weight divisor. The dimensional
weight divisor varies by service offering and unit of measure (inches or centimeters).
For FedEx International Priority, FedEx International First & FedEx International Economy rates are
based on the total weight of all packages in one shipment using one air waybill. Any fraction of a kilo
takes the next higher weight.
For example, for U.S. or Canadian origin export shipments measured in inches, the divisor is
166. For EMEA, LAC and APAC origin export shipments measured in inches, the divisor is 139; if
measured in centimeters, the divisor is 5,000. Contact your local FedEx Customer Service for more
details.
Dimensions
Enter the length, width, and height of the package. Package dimensions must be at least 1 inch/cm for
Length, 1 inch/cm for Width, 1 inch/cm for Height. For multiple piece shipments, you can ship up to 25
packages using 10 unique rows of weight/dimensions information.
Duty:
The tax imposed by Customs on imported goods.
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European Commission:
One of the five major institutions of the European Union (EU). The Commission is responsible for
ensuring the implementation of the Treaty of Rome and Union rules and obligations; submission of
Exchange License:
Similar to import licenses, exchange licenses protect a country's foreign exchange reserves or utilize
these reserves advantageously. They also authorize the conversion of currency.
Exchange Permit:
A government permit sometimes required by the importer's government to enable the import firm to
convert its own country's currency into foreign currency with which to pay a seller in another country.
Export
A shipment transported out of a country.
Export Broker:
An individual or firm who does not take part in actual sales transactions, but brings together buyers
and sellers for a fee.
Export Declaration:
A formal statement declaring full details about goods being exported, made to the collector of Customs
at a port of exit.
Export License:
A government document permitting participation in the export of designated goods to certain
destinations.
Export Merchant:
A firm that purchases goods directly from various domestic manufacturers, then packages and marks
the merchandise for resale under its own name. Export merchants usually specialize in specific
product categories.
Export Permit
A legal document that is necessary for the export of goods controlled by the government of Canada,
specifically goods included on the Export Control List (see above) or goods destined for countries on
Export Quotas
Specific restrictions or ceilings imposed by an exporting country on the value or volume of certain
exports to protect domestic producers and consumers from temporary shortages of the goods affected
or to bolster their prices in world markets.
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Import
A shipment brought in from a foreign country.
Import Certificate:
A means by which the government of the country of ultimate destination exercises legal control over
the internal channeling of the commodities covered by the import certificate.
Import License:
Some national governments issue and require this document to authorize imports into their countries.
Import Quota:
A means of restricting imports by the issuance of licenses to importers, assigning each a quota, after
determination of the total amount of any commodity which is to be imported during a period. Import
licenses may also specify the country from which the importer must purchase the goods.
Import Restrictions:
Applied by a country to reflect a desire to control the volume of goods coming into the country from
other countries. They may include the imposition of tariffs or import quotas, restrictions on the amount
of foreign currency available to cover imports, a requirement for import deposits, the imposition of
import surcharges, non-tariff barriers, or the prohibition of various categories of imports.
Import Substitution:
A strategy which emphasizes the replacement of imports with domestically produced goods, rather
than the production of goods for export, to encourage the development of domestic industry.
Imports:
Consist of government and non-government purchases of merchandise from foreign countries.
Invoice, Final:
Statement of charges issued after the preliminary invoice, i.e., when the goods have arrived at
destination, a true weight quantity/value is determined and agreed upon.
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Legal Weight:
The total weight of the merchandise, including any immediate packaging which is sold along with the
goods, i.e., the weight of a tin can as well as its contents, but excluding the cartons in which the cans
are packed.
Lomé Convention:
An agreement, first signed in 1975 and since updated, between the European Community, now the
European Union (EU), and 70 African, Caribbean, and Pacific states (mostly former colonies of the EU
members). The agreement covers some aid provisions as well as trade and tariff preferences for the
African, Caribbean and Pacific countries (ACP) when shipping to the EU. The most recent agreement
expired in 2000, and is currently being renewed. Lomé grew out of the 1958 Treaty of Rome's
"association" with the 18 African colonies/countries that had ties with Belgium and France.
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Quotas:
The quantity of goods that may be imported without restriction or additional duties or taxes.
Quotation:
An offer to sell goods at stated price and under stated terms.
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Ship's Manifest:
An instrument in writing, signed by the captain of the ship, that lists the individual shipments
constituting the ship's cargo.
Shipping Permit:
Issued by a shipping or carrier company giving the receiving clerk at pier, dock, warehouse, airport, or
on board, the authority to receive a stipulated amount of merchandise from a specified firm.
Shipping Weight:
Represents the gross weight in kilograms (kg) of shipments, including the weight of moisture content,
wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer
containers).
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Tariff
A duty (or tax) levied on goods transported from one customs area to another. Tariffs raise the prices
of imported goods, thus making them less competitive within the market of the importing country.
Under the North American Free Trade Agreement, most duties on goods qualifying as NAFTA-
originating and services from Canada to the U.S. and Mexico have been eliminated.
Terms of sale
The point at which sellers have fulfilled their obligations so the goods are said to have been delivered
to the buyer. They are shorthand expressions that set out the rights and obligations of each party
when transporting the goods.
FCA/FOB (Free Carrier/Free on Board). Free Carrier at a named port of export. The seller quotes
the buyer a price that covers all costs up to and including delivery of goods aboard an overseas
vessel (e.g. airplane).
CIP/CIF (Carriage Insurance Paid/Cost Insurance and Freight). Carriage Insurance Paid to a
named overseas port of disembarkation (i.e. import). Under this term, the seller quotes a price for
the goods, including insurance, plus all transportation, and miscellaneous charges to the point of
disembarkation from the vessel.
CPT/C&F (Carriage Paid To/Cost & Freight). Carriage Paid To is the named overseas port of
disembarkation (i.e. import). Under this term, the seller quotes a price for the goods that includes
the cost of transportation to the named point of import. The cost of insurance is left to the buyer's
account.
(EXW) Ex Works. Under this term, the price quoted applies only at the point of origin and the seller
agrees to place the goods at the disposal of the buyer at a specific place on the date or within the
period fixed. All other charges are for the account of the buyer.
(DDU) Delivered Duty Unpaid. Under this term, the seller fulfills his obligation to deliver when the
goods have been made available at the named place in the country of importation. The seller has to
bear the costs and risks involved in bringing the goods thereto as well as the costs and risks of
clearing Customs.
(DDP) Delivered Duty Paid. Under this term, the seller fulfills his obligation to deliver when the
goods have been made available at the named place in the country of importation. The seller has to
bear the risks and cost, including duties, taxes and other charges of delivering the goods.
The Warsaw Convention limits FedEx's liability for loss of or damage to your international shipment,
unless you declare and pay the required fees. The interpretation of the Warsaw Convention's liability
limits may vary depending on the destination country. If the Warsaw Convention, as amended by
Montreal Protocol No. 4 applies to your shipment, FedEx's liability is limited to 17 Special Drawing
Rights (SDRs) per kilo, unless you declare a higher value.
Otherwise and in instances where the Warsaw Convention, as amended, does not apply, FedEx's
liability is limited in the U.S., as set forth in the Service Guide, to US $9.07 per pound ($20.38 per kilo)
unless you declare a higher value. In Canada, FedEx's liability is limited in these instances to $100
CAD unless you declare a higher value.
Tracking number
The number assigned to a shipment by FedEx.
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Waybill:
A detailed description of the shipment is sent to the transfer point.
Weight Certificate:
Usually issued by an official weigher on the dock, this certificate records the weight (as well as
measurements) being entered on the back of the second and third copies of the dock receipt by clerk
on the dock.
Weight Note:
This note, or slip, shows the individual weight of each unit and is included in cases. It is also the
official weigher's record.
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