- What does N.E.S.O.I. mean?
N.E.S.O.I. is an acronym meaning not elsewhere specified or indicated.
- Who is an "intermediate consignee"?
An "intermediate consignee" is a party who effects delivery of merchandise to an ultimate consignee.
- Who is the "ultimate consignee"?
An ultimate consignee is the true party in interest, receiving goods for the designated end use.
- What is a "maquiladora"?
A "maquiladora" is a Mexican in-bond processing operation that allows foreign manufacturers to ship components into Mexico on a duty-free basis for assembly and subsequent re-export.
- What is a NOM?
A NOM is an acronym for "Norma Official Mexicana" - a mandatory Mexican standard that applies to a particular product or range of products. A product that is subject to a NOM cannot be imported into Mexico unless it is certified as being in compliance with the relevant NOM.
- What is a CE mark?
A CE mark is a marking placed on a product to indicate that the product underwent assessment procedures and was found to be in compliance with the European standards applying to such product. The designation "CE" is French for "Conformite Europeen".
- What are the INCOTERMS?
Developed by the International Chamber of Commerce (ICC), INCOTERMS are a codification of rules for the interpretation of sales terms used in export/import transactions. INCOTERMS 2000 is a collection of 13 internationally used terms of sale. They are as follows:
Ex works (ExW-...named place)
Free Carrier (FCA-...named place)
Free Alongside Ship (FAS-...named port of shipment)
Free on Board (FOB-...named port of shipment)
Cost and Freight (CFR-...named port of destination)
Cost, Insurance and Freight (CIF-...named port of destination)
Carriage Paid To (CPT-...named place of destination)
Carriage and Insurance Paid to (CIP-...named place of destination)
Delivered at Frontier (DAF-...named place)
Delivered Ex Ship (DES-...named port of destination)
Delivered Ex Quay (DEQ...named port of destination)
Delivered Duty Unpaid (DDU...named place of destination)
Delivered Duty Paid (DDP...named place of destination)
- What is a distributor?
A distributor is a party who purchases goods for inventory and resale.
- What is a sales representative?
A sale representative or sales agent is a party who sells another party's products in return for a commission.
- What is the Harmonized System?
The Harmonized System is a commodity classification system that was developed by the Customs Cooperation Council, an international Customs organization in Brussels, for use on a world-wide basis.
- What is a pro forma invoice?
A pro forma invoice is a sales quotation drafted in the form of an invoice.
- What is a commercial invoice?
A commercial invoice is a bill prepared by the seller for submission to the buyer that details items bought and amounts owed.
- What are title documents?
Title documents transfer title to, or at least possession of, goods from a seller to a buyer. In an export transaction, the title documents are comprised of the main carriage transportation documents or bills of lading, such as ocean bills of lading and air waybills.
- What is a bill of lading?
A bill of lading (B/L) is a contract for transportation and a receipt for cargo that a common carrier gives to a seller when a carrier transports goods on behalf of a seller.
- What types of bills of lading are used on international shipments?
Bills of lading used on international shipments include ocean bills of lading for cargo transported by ocean and air waybills for cargo transported by air.
- Can ocean bills of lading be negotiable?
Yes. Ocean bills of lading can be either negotiable (order of) or non-negotiable (straight).
- Can air waybills be negotiable?
No. Air waybills can only be non-negotiable (straight).
- How significant is the form of a bill of lading or an air waybill?
The form of a bill of lading or an air waybill instructs the carrier on how to handle or disburse the goods that the carrier is transporting when the carrier reaches its destination. If the bill of lading is in negotiable form, i.e. "order of the shipper", the carrier will hold the goods until it receives an original bill of lading that has been endorsed by the shipper (seller). If the bill of lading is in non-negotiable or straight form and consigned to the buyer, the carrier will release the goods to the buyer on the buyer's identification of itself as the buyer. If on the other hand, the bill of lading is in non-negotiable or straight form and consigned to a third party, such as the buyer's bank, the carrier will release the goods as instructed by the third party consignee in a "release" (steamship guarantee or airway release) issued by the third party consignee to the carrier.
- What are carrier releases and what function do they perform?
Carrier releases encompass steamship guarantees and airway releases. These documents act to give a buyer direct and immediate access to product that a seller has shipped, without regard to the structure of the title documents underlying a shipment.
- What is a clean bill of lading?
A clean bill of lading is a bill of lading that is issued by a carrier when a shipment is received in good order.
- What is a house bill/house waybill?
A house bill/house waybill is a bill of lading prepared and issued by a consolidator.
- What is a master bill/master waybill?
A bill of lading prepared by a consolidator, issued by a carrier, showing the consolidator as the shipper and the break-bulk agent, or "deconsolidator" as consignee.
- What is a consolidation?
The combining of at least two individual shipments into one. Each shipment in a consolidation is covered by the consolidator's house bill. The consolidated shipment is then sent to a break-bulk agent under a carrier's master bill.
- What is an NVOCC?
NVOCC is a Non Vessel-Operating Common Carrier or a carrier that issues bills of lading for carriage of goods on vessels neither owned or operated by him. Often, a NVOCC is a consolidator.
- What is a draft?
A Draft of Bill of Exchange is a negotiable instrument that is payable to the seller and drawn on the issuing bank and/or the buyer. Drafts can be either "sight drafts" where the bank pays the full amount of the draft upon the seller's presentation, or "time drafts" where the bank's obligation at the time of presentation is merely to accept the draft for payment at a later date.
- What is a consular document?
A consular document shows that the goods satisfy the relevant regulatory requirements of the importing country.
- What is an insurance certificate?
An insurance certificate shows that the beneficiary obtained insurance for transportation of the goods.
- What is an inspection certificate?
An inspection certificate shows that the goods have passed a quality inspection prior to shipping. Either an independent third party or an agent of the buyer can perform the inspection. However, if it is an agent of the buyer, the seller should recognize that the buyer may block payment under the credit until any dispute regarding the conformity of the goods is resolved.
- What is a certificate of origin?
A document that certifies the country of origin of goods.
- What is an A.T.A. carnet?
A carnet, also referred to as an "ATA Carnet" is a standardized international customs document used to obtain duty-free temporary admission of certain goods into the territories of those nations that have signed an international agreement for this purpose. The A.T.A. documentation accompanying the goods bypasses the time-consuming task of filing numerous customs documents otherwise required by each of the individual A.T.A. member countries into which the goods are temporarily imported. The carnet provides a financial guarantee to foreign customs officials that, in the event the goods that have been temporarily admitted are not reexported, import duties will be paid. (The term A.T.A. is an acronym for the descriptive title written in French as "Admission Temporaire" and English "Temporary Admission," respectively.)
- What types of goods can be covered by a carnet?
U.S. Commercial travelers may use the A.T.A. Carnet for transporting commercial samples, tools of the trade, advertising materials, cinematographic, audio-visual, medical, scientific, or other professional equipment.
- Who issues carnets?
In each member country, an organization affiliated with the Paris-based International Chamber of Commerce is designated to issue and guarantee carnets to applicants who are residents of that country. In the United States, that function is performed by the U.S. Council for International Business (USCIB). There are nine locations in the United States that issue carnets. A complete listing can be found on the USCIB web site at www.uscib.org.
- How long is a carnet valid?
The carnet is valid for one year, during which the businessperson may make as many trips as desired. Also, if the goods listed on the carnet are returned to the United States within the one-year period, the carnet serves as the customs control document and no entry or duty payments will be applied.
- What is duty drawback?
Drawback is a refund or remission (up to 99%, in some cases) of a customs duty paid on imported goods that are then exported overseas.
- What is an "apostille"?
An apostille is an authentication of an official U.S. document for use in foreign jurisidictions.
- What does authentication mean?
An "authentication" is a governmental act by which a designated public official certifies to the genuineness of the signature and seal and the position of the official who has executed, issued, or certified a copy of a document.
- Which documents can be authenticated by an apostille?
Documents that may be authenticated by an apostille include: documents issued by judicial authorities, including those emanating from public prosecutors, court clerks, and process servers; administrative documents; and official certificates affixed to documents signed by persons in their private capacity, such as official certificates recording the registration of a document, notarial authentications of signatures, etc. Documents executed by diplomatic or consular agents, or administrative documents relating to commercial or customs operations, may not be authenticated by an apostille.
- Which authorities in the U.S. are competent to issue apostilles?
Authorities in the United States that are competent to issue apostilles include: the Authentication Office of the U.S. Department of State; clerks of U.S. federal courts; and secretaries of state for most U.S. states (for Alaska, Hawaii, and Utah: the Office of the Lieutenant Governor). Diplomatic and consular officials at U.S. embassies, consulates, or missions may issue apostilles in certain circumstances when requested by a foreign governmental authority.
- What is a transshipment?
Transshipment is Customs procedure under which goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of on Customs office that is the office of both importation and exportation.
- What does "demurrage" mean?
Charges assessed at pier for failure of consignee to claim cargo/container within a specified time limit.
- What is an open cargo policy?
An insurance policy with no expiration date that provides automatic coverage of cargo to or from an assured at agreed rates, terms, and conditions.
- What is a SR & CC clause?
A standard clause in a marine insurance policy that excludes liability for losses due to civil unrest or labor disturbances.
- What is "all risk" insurance?
A broad form of insurance coverage that protects against all risks of physical loss or damage from external causes. However, it does not cover all risks, such as inadequate packing, preshipment condition, inherent vice, or loss due to delay.
- What is the meaning of "general average"?
The time-worn principle that calls for all parties to a sea voyage to share in the losses resulting in a voluntary and successful sacrifice of part of the ship or its cargo in order to save the whole venture from impending peril.
- What is a convertible currency?
Currency that can be easily exchanged, bought and sold for other currencies.
- What is a foreign exchange contract?
A contract for the sale or purchase of foreign exchange specifying an exchange rate and delivery date.
- What is a foreign exchange rate?
The price of one currency in terms of another.
- What is a forward contract for foreign exchange?
Purchase or sale of a specific quantity of a currency at a predetermined rate with delivery and settlement at a specified future date.
- What is an option for foreign exchange?
A contractually agreed upon right to buy (call option) or sell (put option) a specific amount of an underlying instrument at a predetermined price on a specific date (European option) or up to a future date (American option).
- What are the Explanatory Notes?
The explanatory notes to the Harmonized Tariff Schedule serve as an official reference guide to interpret language used in tariff classifications. The explanatory notes must be referred to in order to determine how a part or sub-component is defined for tariff purposes.
