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Shipping Guide
Glossary of International Shipping, Customs and Regulatory terms
Brush up on you international shipping vocabulary or find the definition for a specific shipping or
customs term.
On this page:
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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
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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.
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.
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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.
When dimensional weight exceeds actual weight, shipments will be charged according to the
IATA volumetric standard.
For example, for U.S. or Canadian origin export shipments measured in inches, the divisor is 166. For EMEA, LAC and APAC
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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 proposals to the Council of Ministers; execution of the
Council's decisions; reconciliation of disagreements among Council members; administration of EU policies, such as the
Common Agricultural Policy and coal and steel policies; taking necessary legal action against firms or member governments;
and representing the Union in trade negotiations with non-member countries.
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:
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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 the Area Control List.
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
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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.
Lom 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. Lom 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
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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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agreements, negotiated and signed by the bulk of the worlds trading nations and ratified in their parliaments. The goal is to
help producers of goods and services, exporters, and importers conduct their business.
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