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Terms used in freight forwarding such as commercial set,commodity,common carrier,compliance checking etc.
This post explains about terms used in freight forwarding such as combined transport,commercial set,commodity,common carrier,compliance checking,conditions of contract,conference,confiscation insurance,connecting carrier,consignment inventory 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
Combined Transport:Intermodal transport where the major part of the journey is by one mode such as rail, inland waterway or sea and any initial and/or final leg carried out by another mode such as road.
Commercial Invoice - Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment. Some countries require original commercial invoices in order to clear customs at destination.
COMMERCIAL SET:Set of four "negotiable" documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction.
Commercial Value:Assessment of monetary value of manufactured goods including production costs, packaging, shipping, overhead and profit margin; used to determine duty.
Commodity - Article shipped, description. Different commodities can sometimes have different rates. For dangerous and hazardous cargo, the correct commodity identification is critical.
COMMODITY - Any article of commerce; the goods or merchandise.
Commodity Code: A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Commodity Control List:List of commodities subject to U.S. Department of Commerce export controls.
Commodity: Any physical item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability.
COMMODITY: Description of goods being shipped.
Commodity:Any article or goods of commerce.
Commodity:In terms of transportation, this is the word used to describe the goods to be shipped.
Commodity:Indication of the type of goods. Commodities are coded according to the harmonised system.
COMMON CARRIER - Transporter who holds himself out to the general public for the transportation of goods over a define route and according to a regular schedule.
Common Carrier Duties: Common carriers are required to serve, deliver, charge reasonable rates, and not discriminate.
Common Carrier: Any carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, whose services are for hire to the general public.
Complete & On-Time Delivery (COTD): A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time
Compliance Checking: The function of EDI processing software that ensures that all transmissions contain the mandatory information demanded by the EDI standard. Compares information sent by an EDI user against EDI standards and reports exceptions. Does not ensure that documents are complete and fully accurate, but does reject transmissions with missing data elements or syntax errors.
Compliance: Meaning that products, services, processes and/or documents comply with requirements.
COMPOUND DUTY - Customs duty that is figured out based on multiple criteria. An example would be a rate of 27.6 cents per kg + 15%.
CONDITIONS OF CARRIAGE: The terms and conditions established by a carrier in respect to its carriage.
CONDITIONS OF CONTRACT: The terms and conditions shown on the air waybill or with any consent by the shipper that shipment record may be used.
Conditions:Anything called for as requirements before the performance or completion of something else Contractual stipulations which are printed on a document or provided separately.
Conference - Group of carriers allowed by FMC to determine a level of rates, services and rules of a given trade route bound together by a common tariff.
Conference Rates:Published rates which are applied equally by all the lines belonging to that particular conference for a specific commodity.
Conference Vessel -A vessel operating in a conference shipping service.
Conference:A group of shipping companies who have associated to offer regular services on specific routes at published rates. Sometimes referred to as liner shipping. Non conference shipping lines are sometimes referred to as independent or outsiders.
Configuration: The selection and grouping of components and assemblies into a finished product.
Configure/Package-to-Order: A process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.
Confirmation: With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the
Confirming Order: A document similar to, or same as a purchase order, which is provided to a supplier as confirmation of a previous verbal purchase request.
Confiscation Insurance- The risk of confiscation of cargo in foreign countries or waters may be insured against. War risks insurance covers confiscation resulting from war. Any other confiscation risks may also be insured against.
Conformance: A term used in quality management to confirm the adherence to specification of a product or service.
Congen B/L:A standard form of bill of lading used in shipments by chartered ship.
CONGESTION SURCHARGE; Extra charge applied by shipping lines and liner conferences to reflect the cost of delay to their ships at a particular port caused by congestion.
Connecting Carrier - An intermediary carrier utilized to connect cargo to/from the mother vessel. Also known as "feeder service."
CONNECTING CARRIER: A carrier whose service the cargo is to be transferred for onward connecting transportation.
Consignee:The name of the entity that takes final receipt of the goods at the final destination. If the entity is a business, then the consignee is the name of the company. If the consignee is an individual, then the consignee should be the name of the individual.
Consignment Instructions:Instructions from either the seller/consignor or the buyer/consignee to a freight forwarder, carrier or his agent, or other provider of a service, enabling the movement of goods and associated activities. The following functions can be covered: Movement and handling of goods (shipping, forwarding and stowage) Customs formalities Distribution of documents Allocation of documents (freight and charges for the connected operations) Special instructions (insurance, dangerous goods, goods release, additional documents required)
Consignment Inventory: 1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer.
The above details describes about terms called in freight forwarding such as combined transport,commercial set,commodity,common carrier,compliance checking,conditions of contract,conference,confiscation insurance,connecting carrier,consignment inventory 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 claused bill of lading ,classification yard,clip-on-unit,certificate of origin
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