Cargo insurance compensates exporter and importer companies against physical loss or damage of goods during transportation and covers goods in temporary storage during transportation. Shipping cargo insurance policies are issued by insurance companies based on the clauses prepared by the International Underwriting Association of London.
In the form of CIP incoterms, the seller, i.e.," the exporter" company, organizes the processes of loading the container or vehicle, organizing the inland transportation, finalizing the port process and customs clearance, and shipping the cargo according to the final destination. CIP is a form of delivery that can be used for any mode of transport, including multimodal, regardless of which mode of transport is chosen.
CPT incoterm is especially used in multi-vehicle transportation types. The seller, i.e., the exporter, is responsible for inland transportation, export customs clearance, and organizing the overseas shipment without insurance. Basically, the exporter company is responsible for managing the shipment. After the shipment, all costs excluding freight belong to the importer for CPT shipments.
The basic elements of the international logistics sector are transport companies, that is, carrier companies. Sea, land, air, and rail transport are the fields in which carrier companies operate. Carriers are companies that provide the shipment of goods from one place to another via a domestic or international logistics network and establish the commercial bridge between buyers and sellers.
A Carrier’s Lien is a freight carrier‘s right to hold on to cargo until they have received payment for transporting the goods.
A certificate of origin is a document showing in which country a product was manufactured. The local chamber of commerce or chamber of industry usually approves the certificate of origin. Some countries require that the certificate of origin of the imported goods be presented at the local consulates in the country of origin.
The transport documents are based on the contract of carriage between the shipper and the carrier, and the buyer, the importer, is defined as the consignee. The consignor is the other party in the contract of carriage, the exporter, who sends the consignment to be delivered by land, sea, or air.
Consolidation provides scale savings in shipment by creating large loading lots from small quantities of cargo. The main reason for consolidation is to reduce transportation costs and speed up the paperwork and customs processes. Consolidated transportation is in case of shipment of the products to the same customer and the same region, transporting them in one piece by combining them and waiting for a while.
A fee charged to a shipper by a freight forwarder for services related to consolidation in LCL shipping.
Containers are transportation equipment with specific dimensions and standards used in international freight transportation. A large part of maritime transport worldwide is provided by container ships. Container transportation is compatible with multimodal and intermodal transportation. It can be transported by container ships and trucks.
A container cleaning fee is charged by shipping lines to consignees for cleaning a container after it has been imported and returned to the container depot.
A CFS (container freight station) is a warehouse that specializes in the consolidation and deconsolidation of cargo.
Fumigating or de-fumigating (removing fumigants after treatment) cargo goods, packaging and wood pallets may be required either under the IMO International Maritime Dangerous Goods Code, or US law, as enforced by CBP.
In CFR incoterms, the seller, i.e., the exporter company, organizes the processes of loading the container, inland transportation, handling the port charges and customs process in their coşuntuya, and delivering the cargo to the buyer at a port located in the country of the buyer, i.e., the importer. CFR is one of the 11 loading variants that make up incoterms.
The CIF delivery terms is similar to the CFR, except for the marine insurance requirement. In short, in the seller's country, inland transportation, customs and port costs, and international transportation organization, including insurance, are the responsibility of the exporter company. Although the transportation cost belongs to the exporter, the risks belong to the importer.
Customs bonds or bonds allow importers to process imports at US customs. Customs bonds are temporary documents issued on the Importer's behalf, on the shipping company's application, and through the customs broker. Customs bonds are issued annually and must be renewed at the end of every 12 months. Without the bond, the import loads of the shipments can't be cleared by US Customs.
Customs brokers are the officials responsible for preparing and checking customs documents and issuing export or import declarations. Customs legislation constantly changes depending on trade relations between countries, sectoral and local developments. Customs brokers are responsible for following the changing legislation and checking that foreign trade transactions are in compliance with all applicable laws.
Customs clearance covers the customs procedures regarding the export and import stage. The customs procedures carried out at the stage of exporting the products from the seller's country are called Export Customs Clearance. The customs procedures that will be subject to the buyer's country at the stage of entry of the products are defined as Import Customs Clearance.
A customs clearance fee is levied by the customs clearance agent or customs broker to cover the cost of preparing and filing customs documents.
U.S. Customs and Border Protection (CBP), a division of the Department of Homeland Security, is responsible for enforcing U.S. customs laws at ports of entry to prevent the importation of prohibited goods into the United States. CBP also conducts inspections of cargo containers entering or leaving the country. The agency’s mission includes protecting the borders of the United States from illegal immigration, drug smuggling, and terrorist activity; facilitating legitimate trade and travel; and promoting economic growth and job creation.
Inland cargo transportation of a cargo ship originating from a different country within another country
It's a free trade agreement. The US, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua are the parties to the Central America-Dominican Republic Free Trade Agreement.
The Canadian Customs Invoice is an outstanding invoice required for the export from the USA to Canada: This invoice covers goods over CAD 2,500 that are taxable and not classified under HTSUS Section 9810.
All kinds of goods transported between two destinations by land, sea, air, or train.
It's some kind of declaration required by customs at the stage of international shipments' arrival or departure from a country.
A document containing the details of the cargo carried on a ship and a breakdown of the load carried.
The Caribbean Community consists of the island and coastal states in the Caribbean Sea, with 15 principal and 5 associate members.
A document that allows the shipment of products to another country free of customs duties for display or demonstration.
The payment method in which the sales amount will be paid on delivery.
It is a safety mark called the China Compulsory Certificate mark, which must be present on products imported into China from abroad.
It is a list of items that can be used for commercial and military purposes, printed by the U.S. Department of Commerce as required by Export Management Regulations.
It is a sign that means that the product to which it is attached meets all the requirements and regulations of the relevant regulations.
It is a document showing that the products purchased or supplied meet the technical regulations and the national, regional, or international standards of the country of import.
It states that a written product is produced and sold in the U.S. This document also indicates that the producer company has no unresolved enforcement related to the U.S. Food and Drug Administration (FDA).
Documentation that the products have been checked by an authorized inspection company and appear suitable before shipment.
The Chamber of Commerce is a professional organization with a legal personality as a public institution that carries out activities to remove the obstacles to its members' professional activities. It defends its members' interests and assists them in development.
It is a sign that shows that a commercial document (for example, COO) has been approved by the relevant chamber so that it can be considered internationally valid.
Explanatory sections on the Harmonized System (H.S.) content include chapter notes and subheading notes.
The measurement used by freight carriers to determine the price you will pay to ship your goods.
The frame base with a wheeled vehicle used to stabilize and secure the container.
The Chassis Usage Fee, also known as the Chassis Usage Charge, is a fee that is imposed by the carrier on the consignee, for using their container chassis.
Mostly wooden material is put in front and back of the wheels of your vehicles to prevent them from slipping and moving.
Containerload or carload (Abbr.)
Payment request to the shipping company due to damage or lost products during the shipping phase.
CM is the abbreviation of Cubic Meters, while cm is the abbreviation of centimeters.
It's called Title 15 of the CFR and contains the codes of general and permanent rules issued by the U.S. Federal Registry.
The EAR regulation is the regulation that determines whether the exporters need an export license or not.
It is a commercial document that includes product or service details such as price, quantity, weight, and various components. In addition, information about the buyer and seller companies is included. The commercial invoice is an official document requested in shipment and customs processes.
All kinds of commercial goods
It is a legal system widely used in the USA and the U.K., based on tradition and past precedents.
It is the term that expresses compliance with industry rules, showing that international companies operate under international and local laws.
Damages and deficiencies are not noticed during the shipping phase or when the goods are first received.
An additional charge added to the base rate ocean freight cost, reflecting the additional expenses that the ship lines incur when calling at congested ports.
The intermediate carrier provides the transfer of cargo between two or more main transport vehicles.
The goods shipped to a place specified by an agent or buyer.
Consumer goods imported by the USA enter through customs in this category. According to CBP statistics, 95% of U.S. imports are products in this category.
It is the definition made for the cargoes that are suitable for the dimensions and weight limits of the containers.
The document, prepared separately for each container, contains information about the loaded cargo, the loading port, and the destination port.
It refers to products whose international trade is prohibited and not allowed to be transported—for example, illegal drugs and unauthorized explosives.
Written agreements between buyers, sellers, investors, suppliers, or service providers for different purposes such as product and service sales, leasing, partnership, etc.
A contract of carriage defines the legal responsibilities of the carrier and the user. The carrier may be a freight trucking carrier, air cargo carrier, ocean carrier, etc. and the user is either the consignor or consignee.
The document specifies the country where the internationally traded products are produced or assembled, provided it is above a specific rate. It is a mandatory document in the customs of many nations. It contains information about the product and the manufacturer and phrases such as Made in China, Assembled in The U.S.
This term, which is the abbreviation of Customs-Trade Partnership Against Terrorism, includes the standards that the USA started to implement for customs inspections after 2001. C-TPAT reduces waiting times at customs through security of the supply chain and reduction of border controls.
It is used as an abbreviation for the Cubic unit of measure.
Ships and shipping containers, such as containers, have volume and weight limits. Sometimes, even if the upper limit in terms of weight is not reached, there is no room for additional loading due to the volume of the loaded product. Cube Out is a logistics term that expresses this situation.
The Currency Adjustment Factor (CAF) is an accessorial percentage surcharge used by carriers to account for potential exposure to foreign currencies.
The government office consists of customs offices, where export and import transactions are made.
They are the institutions where export and import records are kept, declarations are recorded, and customs taxes are collected on behalf of the state. It is usually found in border areas, ports, and airports.
A Customs bond is a contract between three parties (Customs, a principal (i.e. an importer), and a surety) to ensure that all the duties and fees associated with the rules and regulations of importing or other Customs activities are paid to Customs by the principal.
See: Bonded Warehouse
It is a document prepared at customs points where information such as product value, H.S. class, and origin of imported products are recorded—also known as Entry Summary or Form 7501 in the U.S.
It is the same as a commercial invoice except for a few points. Compared to a standard invoice, a custom invoice contains details such as origin, container, and weight information.
The term refers to the rules and practices to which export and import will be subjected in customs.
The phrase "Customs Value Only" is added to the invoices issued for the products sent abroad for purposes such as sending samples and displaying them in foreign fairs and exhibitions. This statement indicates that the invoice is free of charge, and the invoice total is valid for customs records and taxation.
Indicates the deadline for the cargo delivery to the port or terminal. Besides, export companies must send the export document set to their customs broker. They have another cut-off to finish the customs documentation.