Wine Vision Global Exporting

Glossary of Terms

Bill of Lading – A document that establishes the terms of a contract between a shipper and a transportation company under which freights 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, a contract of carriage and a receipt for goods.

Bonded Warehouse - A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Booking – An arrangement with a steamship company for the acceptance and carriage of freight.

CIF – Cost, insurance, freight. A pricing term indicating that the cost of goods, insurance, and freight are included in the quoted price.

Commercial Invoice – An itemized list of goods shipped, usually included among an exporter’s collection papers.

Consignment – Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains the title to the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Cash in advance – (CIA) 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.

Certificate of origin – A document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods.

Export Management Company (EMC) – A private firm that serves as the export department for several producers of goods or services, either by taking title or by soliciting and transacting export business on behalf of its clients in return for a commission, salary, or retainer plus commission.

FAS – Free Alongside ship. A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.

FCA – “Free carrier” to named place. Replaces the former term “FOB named inland port” to designate the seller’s responsibility for the cost of loading goods at the named shipping point. May be used for mulitmodal transport, container stations, and any mode of transport, including air.

FOB – “Free on Board” at named port of export. A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods upon an overseas vessel provided by or for the buyer.

Duty – A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factor such as weight or quantity or a combination of value and other factors.

EX - From. When used in pricing terms such as “ex-winery” or ex-cellars”, it signifies that the price quoted applies only at the point of origin. In practice, this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the specified place within a fixed period of time.

Exchange rate – The price of one currency in terms of another, that is, the number of units of one currency that may be exchanged for one unit of another currency.

Export broker – An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transactions.

GATT – General Agreement of Tariffs and Trade. A multilateral treaty intended to help reduce trade barriers between signatory countries and to promote trade through tariff concessions.

Letter of Credit (LC) – 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, usually the receipt by the bank of certain documents within a given time.

Free Trade Zone – A port designated by the government of a country for duty-free entry of any nonprohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc. within the zone and reexported without duties being paid. Duties are imposed on 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 independent business that handles export shipments for compensation. (A freight forwarder is among the best sources of information and assistance on U.S. export regulations and documentation, shipping methods, and foreign import regulations.)

Packing List – A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.

Perils of the sea – A marine insurance term used to designate heavy weather, stranding, lightning, collision and seawater damage.

Pro Forma invoice – An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value and important specifications (weight, size etc.)

Marine Insurance – Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier. Also covers air shipments.

Ocean Bill of Lading – A bill of lading (B/L) indicating that the exporter consigns a shipment to an international carrier for transportation to a specified foreign market. Unlike an inland B/L, the ocean B/L also serves as a collection document. If it is a “straight” B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a “negotiable” B/L is used the buyer must first pay for the goods, post a bond, or meet other conditions agreeable to the seller.

Schedule B – Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. All commodities exported from the United States must be assigned a seven-digit Schedule B number.

Shipper’s Export Declaration – A form required for all shipments by the U.S. Treasury Department and prepared by a shipper, indicating the value, weight, destination, and other basic information about export shipment.

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