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Terms used in freight forwarding such as certificate of origin , cost and freight,container freight station,channels of distribution etc.
This post explains about terms used in freight forwarding such as certificate of origin , cost and freight,container freight station,channels of distribution,chargeable weight,charges forward ,custom house broker,chassis,charterer etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in freight forwarding
CERTIFICATE OF ORIGIN - A specified document, required by certain foreign countries for tariff purposes, certifying the country of origin of the merchandise. Sometimes requires the signature if the consul of the country to which it is destined.
Certificate of Origin (C/O) - Formal document, required at destination, stating the origin of cargo and relevant cargo details.
Certificate:A general term for any document issued by the seller or another party, certifying to some action having taken place or some fact about the goods.
CES :Customs examination station. U.S. Customs agents are on duty full time. If required, freight is taken to a CES to be inspected.
CET: Contraband Enforcement Team, A Unit or Team within Customs
CF - Abbreviation “Cubic Feet”.
CF7512: See also Bond – IE 63/IT 61/T&E 62 – US Customs bond form for completing shipment information in order to move freight either within the domestic US prior to customs clearance.
CFR (Cost and Freight):This term formerly known as CNF (C&F) defines two distinct and separate responsibilities-one is dealing with the actual cost of merchandise "C" and the other "F" refers to the freight charges to a predetermined destination point. It is the shipper/seller's responsibility to get goods from their door to the port of destination. "Delivery" is accomplished at this time. It is the buyer's responsibility to cover insurance from the port of origin or port of shipment to buyer's door. Given that the shipper is responsible for transportation, the shipper also chooses the forwarder.
CFR- Cost and Freight (INCOTERM)
CFS – Container Freight Station.Abbreviation for "Container Freight Station." A shipping dock where cargo is loaded ("stuffed") into or unloaded ("stripped") from containers. Generally, this involves less than container load shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity.
CFS/CFS:Container Freight Station to Container Freight Station. A type of steamship line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments.
CFS/CY - Loose cargo received at origin point, loaded in a container by carrier, then delivered intact at destination.
CFS: Container Freight Station. A bonded warehouse status used to hold merchandise temporarily. Manray Express operates this type of facility
CFT:Cubic Feet.
Change Order: A document or digital record which authorizes and provides notification of a modification to a product or order.
Channels of Distribution: The downstream flow of products through various outlets or ‘channels’ which may consist of distributors, retail stores, on-line fulfillment, etc.
Charge Type:A separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.
Charge:An amount to be paid for carriage of goods based on the applicable rate of such carriage, or an amount to be paid for a special or incidental service in connection with the carriage of goods.
Chargeable Weight -(Airfreight) The greater of either the actual weight of the cargo or its ‘volume weight’.
CHARGEABLE WEIGHT: See also Dim Weight/Volume Weight. Term used to describe the actual amount of space freight occupies and is calculated by multiplying length x width x height of each piece of freight and dividing the total by 194 cu in/lb (for airfreight the factor used is 166 cu in/lb).
Chargeable Weight:The shipment weight used in determining air freight charges. The chargeable weight may be the dimensional weight or for container shipments, the gross weight of the shipment less the tare weight of the container.
Charges Forward -(IATA) Also called “freight collect”, or in other words - ‘freight payable at destination’. The movement of ‘charges forward’ shipments to some countries is either restricted or in some cases not at all possible. It is wise to always ascertain the regulations and facilities of destination countries before shipment. Additionally, IATA airlines charge TACT freight rates for shipments sent on a freight collect basis.
CHARGES: The charges to the customer are based on the greater of the 2 weights (actual vs. volume).
Charter - Use of an entire vessel.
Charter Party:A contract in which the ship owner agrees to place his vessel or a part of it at the disposal of a third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo, or to let his vessel for a definite period or trip for which a hire is paid synonym: Charter Contract
CHARTER PARTY:A written contract between the owner of a vessel and the one (the charterer) desiring to empty the vessel, setting forth the terms of the arrangement, i.e., freight rate and ports involved in the contemplated trip.
Charterer:The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or an aircraft or a part of the capacity thereof.
Chassis:A wheeled carriage onto which an ocean container is mounted for inland conveyance. The part of a motor vehicle that includes the engine, the frame, suspension system, wheels, steering mechanism etc., but not the body.
CHB (Custom House Broker) - A person or company who is licensed to transact customs business on behalf of the United States importer. Licensing is by U.S. Customs. Also referred to as Customs Broker.
CIF Cost, Insurance and Freight (named port of destination) – Incotrems
CIF & E -Cost, Insurance, Freight & Exchange (A variant of an INCOTERM): This term is similar to CFR but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods. This term very specifically requires the carriage of the goods in a "seagoing vessel".
CIF (CIF):Charges including marine insurance up to stated port payable by consignor. Ensuing charges payable by consignee.
CIF (Cost, Insurance and Freight) :A term of trading in which the buyer of the goods pay for the cost of the goods, the cost of transporting the goods from origin to the port of discharge or final destination and the insurance premium for a maritime insurance policy for the value of the order.
CIF -Cost, Insurance and Freight ( INCOTERM)
CIF: Cargo, Insurance and Freight
CIM -International Convention on the carriage of goods by Rail
CIP :Cost and Insurance Paid to (named place of destination) – Incotrems:This term is similar to CPT but with the addition that the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods covering that period until the goods have been delivered from the carrier to the buyer. Being based on FCA, this term may be used for any mode of transport.
CIP- Carriage and Insurance Paid To.. ( INCOTERM)
CL -Container Load.
CL:(Carload; also Containerload) A shipment that fully occupies the space available in a railcar or cargo-carrying container.
The above details describes about terms called in freight forwarding such as certificate of origin , cost and freight,container freight station,channels of distribution,chargeable weight,charges forward ,custom house broker,chassis,charterer etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post. Terms used in freight forwarding such as carnet,carrier’s lien,carriers certificate,cash against documents
The above information is a part of Online export import training guide
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