All Risk
All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots.
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Alongside
A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or lighter within reach of the transport ship's tackle so that they can be loaded aboard the ship. Goods are delivered to the port of embarkation, but without loading fees.
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Automated Broker Interface
ABI, a part of Customs' Automated Commercial System, permits transmission of data pertaining to merchandise being imported into the United States. Qualified participants include brokers, importers, carriers, port authorities, and independent data processing companies referred to as service centers.
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Automated Clearinghouse
The Automated Clearinghouse (ACH) is a feature of the Automated Broker Interface which is a part of Customs' Automated Commercial System. The ACH combines elements of bank lock box arrangements with electronic funds transfer services to replace cash or check for payment of estimated duties, taxes, and fees on imported merchandise.
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Bill of Lading (B/L)
Bills of lading are contracts between the owner of the goods and the carrier. There are two types. 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 and is used for many types of financing transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.
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Bonded Warehouse
The U.S. Customs Service authorizes bonded warehouses 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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C&F
A price term commonly used in International Trade practise, meaning price quoted including cost of goods and associated transportation fee. Normally it comes with destination and means of transportation ie. air or sea. (Example: C&F Osaka Airport)
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Caged
Before import customs formality has been completed cleared and released, cargo is remained at bonded warehouse under customs custody.
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Cargo Selectivity System
The Cargo Selectivity System, a part of Customs' Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments of risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper.
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Carnet
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, domonstration or other purposes without paying import duties or posting bonds.
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Clean Bill of Lading
A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damages or other irregularities.
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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 title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.
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Cost and Freight (C&F)
Cost and Freight (CFR) to a named overseas port of import. Under this term, the seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The cost of insurance is left to the buyer's account. (Typically used for ocean shipments only. CPT, or carriage paid to, is a term used for shipment by modes other than water.) Also, a method of import valuation that includes insurance and freight charges with the merchandise values.
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Cost, Insurance and Freight (CIF)*
Terms beginning are  ontracts of Dispatch? They differ from other INCOTERMS as they segregate the point at which risk and responsibility passes from the point at which costs pass.

Under all other terms, the point of transferring risk and the point at which responsibility for cost is also transferred are simultaneous. With the terms, this is NOT the case.

CFR (Cost and Freight) has a long history and outside of INCOTERMS a definition with consensus is difficult.

As an INCOTERM risk passes from the seller to the buyer when the cargo crosses the ship 抯 rail at the origin port. However, the responsibilities for the costs of transit only pass from the seller to the buyer at the destination port. CFR and CIF are Monomodal expressions used when the main carriage is by sea and both are suited the use of Bills of Lading.

Because the ship  rail is seen as triggering these terms, it is often inappropriate to use either in a modern port and reference should be made to the notes on this subject under FOB.

Buyers are disadvantaged with contracts of dispatch. The buyer must take risks for a period of carriage during which the buyer has no means of controlling or limiting those risks. The carrier used, the costs incurred for carriage and the timing of the carriage are all under the seller  control. The buyer must consider this disparity before accepting a C termed contract. From the seller  perspective, the C terms represent exceptional risk-management opportunities and are actively pursued as a consequence.

CIF (Cost, Insurance and Freight) represents the condition of CFR with the addition of Insurance. This is the first of only two terms that place a compulsory responsibility for insurance on the seller. Under all other terms, the buyer considers insurance as an optional responsibility.
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Customs
The government authorities designated to collect duties levied by a country on imports and exports.
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Customs Broker
An individual or company licensed by the government to enter and clear goods through Customs. The U.S. Customs Service defines a Customs Broker, as any person who is licensed in accordance with Part III of Title 19 of the Code of Federal Regulations (Customs regulations) to transact Customs business on behalf of others. Customs business is limited to those activities involving transactions with Customs concerning the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected by Customs upon merchandise by reason of its importation, or the refund, rebate, or drawback thereof.
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Customs Import Value
This is the U.S. Customs Service appraisal value of merchandise. Methodologically, the Customs value is similar to f.a.s. (free alongside ship) value since it is based on the value of the product in the foreign country of origin, and excludes charges incurred in bringing the merchandise to the United States (import duties, ocean freight, insurance, and so forth); but it differs in that the U.S. Customs Service, not the importer or exporter, has the final authority to determine the value of the good.
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Customs Invoice
A document, required by some foreign countries' customs officials to verify the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment.
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DDP*
Is a Multimodal term that must be qualified by naming the place to which the seller is taking responsibility for transport costs and the risks of transit. These risks and costs include the payment of domestic duties in the buyer 抯 country and any ancillary charges associated with the import clearing process at destination.

As with all of the D prefixed terms, this term is not easy to use in conjunction with a Documentary Credit and in the case of DDP this payment difficulty extends to any form of Exchange document. As a multimodal term, DDP requires the use of Multimodal transport documents over monomodal documents such as Bills of Lading or Airwaybills.

Sellers are cautioned that the payment of foreign duties and taxes may be contrary to the Exchange Control regulations of their country and that they should seek clarity on this point from their bank or appropriate authority.

Equally, both parties should consider VAT if payable in the buyer 抯 country, DDP may be modified to exclude the seller from having to pay a VAT that the buyer could recover directly. If this is not done, the seller  price may include this amount which otherwise could actually be recovered by the buyer.

Regulations regarding the seller 抯 claiming VAT paid to foreign revenue services vary from country to country, and there is no clear-cut position in this matter. Both parties should seek guidance in this.

Additionally, although the seller will pay Duties, the buyer would be named on the import customs entry and will have the obligation to the domestic Customs Authority for the accuracy of the declared tariff headings used and the rates of duty applied. Should these subsequently prove to be incorrect, the buyer will have the obligation to bring any under recovery to account.
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DDU*
is a Multimodal term that must be further qualified by naming the place up to which the seller is prepared to take responsibility for transport costs (and the corresponding risks of transit). This is excluding the payment of domestic duties and the ancillary clearance charges associated with the import process at destination.

DDU will often financially correlate to CPT. But, for the buyer, DDU represents CPT without the disadvantages of placing risk on the buyer, over which they have no control. (See CPT).

From the seller 抯 perspective, DDU reverses the risk advantages of CPT, placing all risks with the seller until the cargo arrives at the named port.

As with all of the D prefixed terms, this term is not easy to use in conjunction with a Documentary Credit and as a multimodal term, would require the use of Multimodal transport documents over any traditional monomodal documents such as Bills of Lading or Airwaybills.

Sellers are further cautioned that, if the intended transit is beyond the point of entry in the country of destination, then their ability to move the goods to the final destination may be dependent on the buyer 抯 ability to first clear the goods through the customs authority. The possibility of delays in transit and any resultant storage charges (should the buyer fail to conduct clearance in good time), should be noted.

Sellers should be equally aware of additional charges which may be due for payment resultant from local taxes which do not fall into the category of  uty? but are nevertheless payable prior to release.

DDU (and DDP) correlates closely to the generic expressions of  ree domicile?  ranco domicile? and  ree house? which are frequently used in the transport industry. Each should be avoided due to their ambiguous nature.
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Declaration by Foreign Shipper
The U.S. Customs Service defines this term as a statement by the shipper in the foreign country attesting to certain facts. For example, articles shipped from the United States to an insular possession and then returned must be accompanied by a declaration by the shipper in the insular possession, indicating that, to the best of his or her knowledge, the articles were exported directly from the United States to the insular possession and remained there until the moment of their return to the United States. (see 19 CFR 4.60 and 4.61 on U.S. clearance of vessels bound for a foreign port or ports.)
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Delivered at Frontier*
Is a Multimodal expression which should be further qualified by naming the frontier (border post) up to which the seller is prepared to take responsibility for transport costs and the corresponding risks of transit.

The frontier is deemed to be on the seller  side of the applicable border unless the term is modified to express that the point of transfer is the frontier on the buyer  side of the border.

The seller must clear the cargo through customs on the export side of the border of handover, whereas the buyer must clear the goods through customs on the import side.

Because the Frontier falls on the seller  side of the border, DAF can vary from other D terms in that the seller may not be responsible for all or even a part of the main carriage. For example, if the transit involved the movement of cargo through several frontiers, the seller may pass risk and responsibility at the first of these, obligating the buyer to arrange the main carriage thereafter.

Although this term is Multimodal, the main application of DAF is for land-based operations and other D terms such as DDU or DDP should be considered if the transaction is for land-based. (i.e. it is not exclusively road or rail or a road/rail combination).

The diagram opposite conforms to the standard diagram used for this overview. However, in reality, under DAF the blocks representing the points at which cargo leaves the country of origin (OUT) and arrives in the country of destination (IN) can actually repeat, as the cargo may move through one or more countries of transit.
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Delivery Instructions
Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused with Delivery Order which is used for import cargo.
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Delivery Verification Certificate
The U.S. Customs Service defines a DVC as a form used to track imported merchandise from the custody of the importer to the custody of a manufacturer and is used to substantiate a manufacturing drawback claim. The DVC is also known as a Certificate of Delivery (Customs Form 331).

An export license may be issued with a requirement for delivery verification by Customs in the receiving country. When delivery verification is required by a foreign government for goods imported into the U.S., the U.S. Customs Service will certify a delivery verification certificate (Form ITA-647). A U.S. export license may require submission of a similar form from an importing country.
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Deposit of Estimated Duties
This refers to antidumping duties which must be deposited upon entry of merchandise which is the subject of an antidumping duty order for each manufacturer, producer or exporter equal to the amount by which the foreign market value exceeds the United States price of the merchandise.
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EDIFACT
EDIFACT, Electronic Data Interchange for Administration, Commerce, and Transportation, is an international syntax used in the interchange of electronic data. Customs uses EDIFACT to interchange data with the importing trade community.
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Entrepot
An intermediary storage facility where goods are kept temporarily for distribution within a country or for reexport.
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Entry Summary System
An entry is the minimum amount of documentation needed to secure the release of imported merchandise. The Entry Summary System, a part of Customs' Automated Commercial System, contains data on release, summary, rejection, collection, liquidation, and extension or suspension.
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Entry Value
The U.S. Customs Service defines entry value (or entered value) as the value reflected on the enry documentation submitted by the importer. (see 19 CFR 141.61 for how shown on entry.)
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Ex Quay DEQ*
Terms prefixed  are  ontracts or Arrival?involving the passing of risk and responsibility at the point where costs also terminate.

DES (Delivered Ex Ship) is Monomodal. Although not triggered by the use of the ship  rail, the point of handover (ship  side, arrived) will be inappropriate in a modern port. The buyer may not be able to take control at a point in a restricted port area. An alternative D term such as DDU might be better suited to represent an achievable point of handover for both parties.

DES will often financially correlate to CFR. But, for the buyer, DES represents CFR without the disadvantages of placing risks on the buyer, over which they have no control (See CFR).

From the sellers? perspective, DES reserves the risk advantages of CFR, placing all risks with the seller until the cargo arrives at the named port.

DEQ (Delivered Ex Quay) extends the shipper  responsibility beyond the arrival of the vessel to the point where the goods are discharged.

Although not triggered by the use of the ship 抯 rail, the point of handover (landside on the harbour, duty paid) is frequently inappropriate in a modern port environment. The buyer may not be able to take control at that point and an alternative D term such as DDP may be better suited to identify an achievable point of handover between the two parties.

Sellers using DEQ are cautioned that they must be in a position to pay the destination discharge fees both in physical terms as well as administratively in accordance with any Exchange Control Regulations applicable in the country of Origin.

Caution is appropriate when using D prefixed terms with Documentary Credits, as few  ocuments? are geared to record the passing of risks on arrival.
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Federal Maritime Commission
The FMC is an independent agencys which regulates oceanborne transportation in the foreign commerce and in the domestic offshore trade of the United States.
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Forty Feet Equivlent Unit (FEU)

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Foul Bill of Lading
A receipt for goods issued by a carrier with an indication that the goods were damaged when received.
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Free Alongside Ship*
Is Monomodal in that it may only be used for transactions where the main carriage is by seafreight. Note that the entire journey need not be by sea, but the moment of  xport?must be.

Under this term, which is a considerably long tradition, risk and responsibility pass from the seller to the buyer when the goods are placed alongside a named ship (or a ship operated by a named service) at a named area within a named port. FAS requires the seller to arrange export customs clearing.

The essential aspect of the term is that the vessel is in port prior to the seller delivering the cargo into the port area.

However, in many markets, the seller is not allowed into the harbour area. Even if the seller can enter the port area, most operations involve the placing cargo into a berth where the vessel in question is intended to arrive, as opposed to it having physically docked prior to the arrival of the cargo. Thus the vessel comes to the cargo rather than the cargo coming to the vessel.

There are significant risks associated with the older seafreight terms (such as FAS, FOB, CFR/CIF etc.), specifically with regard to the transport documents issued. Careful consideration should be given to the appropriate section of the official INCOTERMS 2000 text dealing with  roof of delivery? In many cases, the modern documents issued by lines may present risk-management complications to the seller when using such an old term as FAS.

The use of this term in the charter and bulk markets is attractive as an alternative to many of the traditional chartering terms that are often subject to unique definitions from country to country or even between ports within one country.
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Free On Board (FOB)*
Is one of the commoner trade terms in use. Yet this  ommon?aspect of the term has resulted in the myriad definitions found all over the world for FOB.

Some of these directly contradict others, and many are supported by domestic legislation making such definitions unique to a specific country or port.

In defining FOB as an INCOTERM, it is expressed as being Monomodal and it can only be used for transactions where seafreight is the main carriage. Therefore, as an INCOTERM, there is no application for FOB in road, rail or air transport.

Under INCTOERMS 2000, risk and responsibility pass from the seller to the buyer when the goods cross over the (named or unnamed) ship 抯 rail at the (named) port of loading, cleared for export by the seller.

For FOB to apply, the seller must be in the physical position of being able to load the cargo over the rail under their own direct control i.e. the loading is undertaken by the seller  own labour, or by an agent that is under the contractual control of the seller. Further, this process would have to be monitored by both the seller and buyer or their representatives.

Generally, for the modern deep-sea export perspective, this control often cannot be achieved as the seller is either not allowed into the harbour area, or, even in those extreme circumstances where they are, they have no influence over the party loading the vessel.

The INCOTERM FOB still has an application in some markets, but these are more and more in the minority. Note that the use of an  n-board?Bill of Lading or mate  receipt could be appropriate in recording the passage of risks under FOB, making FOB one of the few terms still unavoidably dependant on such documents.
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Free On Rail/Free On Truck
These terms are synonymous, since the word "truck" relates to the railway wagons. The terms should only be used then the goods are to be carried by rail. Free on Railroad defines seller's responsible for the cost of goods is to the point of loading it to the trains' loading deck. FOR normally comes with loading railroad station where the goods is to be loaded.
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Free Out
A pricing term indicating that the quoted prices includes the cost of unloading the goods from the vessel.
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Free Ports
Free ports are a form of free trade zone that usually encompass an entire port area (examples include Hong Kong and Singapore).
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Freight for All Kinds
FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo.
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Freight Carriage ... paid to
Like C & F, "Freight/Carriage paid to ..." means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. The term can be used for all modes of transport including multi-modal operations and container or "roll on-roll off" traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.
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Freight Carriage ... and Insurance paid to
This term is the same as "Freight/Carriage Paid to ..." but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.
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Gateway
In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place.
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Gross Weight
The full weight of a shipment, including goods and packaging. Compare Tare Weight .
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Harmonized System
The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council. Beginning on January 1, 1989, the new HS numbers replaced previously adhered-to schedules in over 50 countries, including the United States.

For the United States, the HS numbers and four additional digits are the numbers that are entered on the actual export and import documents. Any other commodity code classification number (SITC, end-use, etc.) are just rearrangements and transformations of the original HS numbers.
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Ice Clause
An ice clause is a standard clause in the chartering of ocean vessels. It dictates the course a vessel master may take if the ship is prevented from entering the loading or discharge port because of ice, or if the vessel is threatened by ice while in the port. The clause establishes rights and obligations of both vessel owner and charterer if these events occur.
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Import Certificate
The import certificate is 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.
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Importer of Record
The U.S. Customs Service defines the importer of record as the owner or purchaser of the goods; or, when designated by the owner, purchaser, or consignee, a licensed Customs broker.
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Incoterms
Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred.
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Inland Bill of Lading
A bill of lading used in transporting goods overland to the exporter's international carrier. Although a through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipments.
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Intermediate Consignee
An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.
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Intermediate Container Transfer Facility
ICTF is a site where cargo is transferred from one form of transit to another, such as rail to ship.
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Letter of Credit
A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary. A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults. A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.
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Ocean Bill of Lading
A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership which can be bought, sold, or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order" Bill-of-Lading.

Open Account
A trade arrangement in which goods are shipped to a foreign buyer before, and without written guarantee of, payment. Because this method poses an obvious risk to the supplier, it is essential that the buyer's integrity be unquestionable.
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Open Insurance Policy
A marine insurance policy that applied to all shipments made by an exporter over a period of time rather than to one shipment only.
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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, and similar characteristics). When an importer applys for Letter of Credit as the means of payment, a Pro Forma Invoice from the beneficiary of such Letter of Credit, usually the exporter, is required by the L/C issuing bank.
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Re-exports
For export control purposes: the shipment of U.S. origin products from one foreign destination to another.

For statistical reporting purposes: exports of foreign-origin merchandise which have previously entered the United States for consumption or into Customs bonded warehouses for U.S. Foreign Trade Zones.
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Revocable Letter of Credit
A letter of credit which can be cancelled or altered by the drawee (buyer) after it has been issued by the drawee's bank.
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Shipper's Export Declaration
The SED includes complete particulars on individual shipments and is used to control exports and act as a source document for the official U.S. export statistics. SEDs must be prepared for shipments through the U.S. Postal Service when the shipment is valued over $500. SEDs are required for shipments, other than by the U.S. Postal Service, where the value of commodities classified under each individual Schedule B number is over $2,500. SEDs must be prepared, regardless of value, for all shipments requiring a validated export license or destined for countries prohibited by the Export Administration Regulations. SEDs are prepared by the exporter and the exporter's agent and delivered to the exporting carrier (such as: post office, airline, or vessel line). The exporting carrier presents the required number of copies to the U.S. Customs Service at the port of export.

The Foreign Trade Statistical Regulations (15 CFR, Part 30) provide the statistical requirements for use by exporters, freight forwarders, and ocean carriers concerning preparation and filing of SEDs.
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Ship's Manifest
A list, signed by the captain of a ship, of the individual shipments constituting the ship's cargo.
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Shipping Mark
The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.
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Shipping Weight
Shipping weight represents the gross weight in kilograms 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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T/T
Telegraphic Transfer, also referred as Wire Funds.
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Table of Denial Orders
The TDO is a list of individuals and firms that have been disbarred from shipping or receiving U.S. goods or technology. Firms and individuals on the list may be disbarred with respect to either controlled commodities or general destination (across-the-board) exports. The list is published in the Export Administration Regulations.
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Tare Weight
The weight of a container and/or packing materials without the weight of the goods it contains.
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Tariff
A tax assessed by a government in accordance with its tariff schedule on goods as they enter (or leave) a country. May be imposed to protect domestic industries from imported goods and/or to generate revenue. Types include ad valorem, specific, variable, or some combination.
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Tariff Anomaly
A tariff anomaly exists when the tariff on raw materials or semi-manufactured goods is higher than the tariff on the finished product.
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Tariff Schedules of the United States Annotated
Effective 1979 to January 1989, the U.S. import statistics were initially collected and compiled in terms of the commodity classifications in the Tariff Schedules of the United States Annotated (TSUSA), an official publication of the U.S. International Trade Commission embracing the legal text of the Tariff Schedules of the United States (TSUS) together with statistical annotations. This publication was superseded by the Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes (HTSUSA) in January 1989.

Effective 1979 to January 1989, the U.S. export statistics were initially collected and compiled in terms of the commodity classifications in Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. Schedule B is a U.S. Bureau of the Census publication and, during this period, was based on the framework of the TSUS. In January 1989, this publication was replaced by Schedule B based on the Harmonized System.
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Through Bill of Lading
A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation.
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Transit Zones
Transit zones, a form of free trade zone, are ports of entry in coastal countries that are established as storage and distribution centers for the convenience of a neighboring country lacking adequate port facilities or access to the sea. A transit zone is administered so that goods in transit to and from the neighboring country are not subject to the customs duties, import controls or many of the entry and exit formalities of the host country. Transit zones are more limited facilities then a foreign trade zone or a free port.
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Transmittal Letter
A list of the particulars of the shipment and a record of the documents being transmitted together with instructions for disposition of documents. Any special instructions are also included.
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Value for Customs Purposes Only
The U.S. Customs Service defines "value for Customs purposes only" as the value submitted on the entry documentation by the importer which may or may not reflect information from the manufacturer but in no way reflects Customs appraisement of the merchandise.
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War/Strike Clause
An insurance provision that covers loss due to war and/or strike.
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With Average
A marine insurance term meaning that a shipment is protected from partial damage whenever the damage exceeds 3 percent (or some other percentage). If the ship is involved in a major catastrophe, such as a collision, fire or stranding, the minimum percentage requirement is waived and the insurance company pays for all of the damage.
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