The terms used in import business such as Free On Board , Harmonized System, Harmonized Tariff Schedule etc.
This post explains about terms used in import trade such as Free On Board,Flotsam, Foul Bill,General Average ,General Average Deposit,Gross Tonnage ,Harmonized System,Harmonized Tariff Schedule 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.
The terms used in import business
Flash Point :The temperature at which a liquid produces enough vapour to form an inflammable mixture with air.
Floating Policy :A form of cargo policy to cover many individual voyages. Seldom used today, having been replaced in practice by the open cover and open policy.
Flotsam :Cargo cast or lost overboard and recoverable by reason of it remaining afloat, also wreckage from a shipwreck.
FOB :Shipping term meaning goods are loaded Free On Board (a named port of shipment)
Force Majeure :An occurrence or a circumstance outside the control of all parties.
Forecastle :Raised part at the bow of the ship.
Foul Bill :A Bill of Lading (see Unclean Bill of Lading) that has been classed to show that the goods were not received in a sound condition.
Franchise :A percentage shown in a cargo policy, which has to be attained before a partial loss claim, is to be paid. However, once the franchise is attained the claim is paid in full. Freeboard This is the height between the deck line and the Plimsoll (or load) line.
Free in and out :Cargo to be loaded and discharged free to the vessel by the Charterer
Free of Average :A policy term excluding partial loss claims.
Free of Capture and Seizure :The war risks exclusion clause that forms part of all marine insurance policies.
Free on board. (FOB) :Term of sale where responsibility for the goods changes from seller to buyer when goods pass onto the carrying vessel
Freight Abandonment :A term in a hull policy whereby the underwriter waives his right to freight earned or to be earned by a ship that is the subject of a total loss claim.
Freight Container :Article of transport equipment of a permanent character designed to facilitate the carriage of goods by one or more means of transport without intermediate rehandling of the goods themselves. This article shall be fitted with devices permitting its ready handling, be designed in order for easy filling and emptying and have an overall volume of' 8 cu.m. (282 cu.ft.) or more. The term excludes vehicles and conventional packing.
Freight Contingency :The insurable interest of a consignee who has paid freight on goods when delivered over the ship's side but where the goods are still subject to peril until they arrive at the final destination.
Freight Forwarder :One who arranges the shipping of goods overseas.
Freight Rate :The charge for transporting goods by water
Frustration of Adventure :A circumstances whereby a ship or goods cannot reach the contemplated destination but remain undamaged and are not lost to the owner. This peril is normally excluded from policies covering war risks.
G.A. in Full Clause :A clause in a cargo policy whereby the underwriter agrees to pay general average contributions in full even though the contributory value may be greater than the insured value.
General Average :An internationally accepted rule of the sea. When a ship is in danger of total loss the master has the right to sacrifice property and/or incur reasonable expenditure to prevent the total loss. Measures taken for the sole benefit of any particular interest are not general average. On successful completion of the adventure or if it is abandoned in a place of safety on successful attainment of such place the ship is declared as entering "under average". Security in the shape of deposits or guarantees is taken from each cargo interest and an average adjuster is appointed. The adjuster calculates the value of the saved interest and each interest is required to contribute a rateable proportion to make good the general average loss.Underwriters are liable only if the peril leading to the general average act was an insured peril and their liability is limited to the insured value of sacrificed insured property and to their proportion of the general average contribution payable by the assured.
General Average Bond :An agreement signed by all parties involved in a general average act.
General Average Contribution :The proportion payable by one of the parties involved in a general average act to make good the loss suffered in that act.
General Average Deposit :A deposit paid by a cargo in return for delivery of the goods where such goods are subject to a general average contribution.
General Average Disbursements :Expenses paid by the shipowner as part of a general average act. Such expenses are recovered by the shipowner from the general average fund.
General Average Fund :The total arrived at by adding together general average expenditure and the value of property sacrificed in a general average act plus costs of its adjustment.
General Average Guarantee :An undertaking by a financial house or an underwriter to pay the contribution due towards a general average fund.
Gold Clause Agreement :An agreement between parties concerned with the carriage of goods by sea whereby they agree to increase the limits imposed by law for shipowners liability in respect of cargo.
GOVERNING LAW:These Terms and Conditions shall be governed by and construed in accordance with the law of and you hereby submit to the exclusive jurisdiction of the courts.
Gross Tonnage :This is the volume of the interior of the vessel including all spaces which are permanently closed in (but excluding the double bottom) expressed in tons of 1 00 cubic feet. Hamburg Rules A set of rules incorporated into a contract for carriage of goods by sea that govern the rights and responsibilities of the carrier and other cargo interests.
Harmonized System (HS): The Harmonized System (HS) of tariff nomenclature is a product classification
system used as a basis for the collection of Customs duties and international trade statistics by almost all countries. Use of the HS ensures that a Customs administration produces statistics in exact accord with international classification standards. Currently 179 countries and Customs or Economic Unions (including 104 Contracting Parties to the HS Convention), representing about 98% of world trade, use the Harmonized System. It is therefore one of the most important instruments in world trade. Developed as a multipurpose nomenclature by the World Customs Organization (WCO), the HS is now used as the basis for:Customs tariffs ,Collection of international trade statistics,Rules of origin ,Collection of internal taxes ,Trade negotiations (e.g., the WTO schedules of tariff concessions) ,Transport tariffs and statistics ,Monitoring of controlled goods (e.g., wastes, narcotics, chemical weapons, etc.).
Harmonized Tariff Schedule (HTS): Also known as the harmonized Tariff Schedule of the United States (HTSUS). The US International Trade Commission (Office of Tariff Affairs and Trade Agreements) is responsible for publishing the Harmonized Tariff Schedule of the United States Annotated (HTSA). The HTSA provides the applicable tariff rates and statistical categories for all merchandise imported into the United States; it is based on the international Harmonized System, the global system of nomenclature that is used to describe most traded goods. An organized listing of goods and their duty rates which is used as the basis for classifying imported products and identifying the rates of duty to be charged on them. It is based on the international Harmonized System Convention.The HTS comprises a hierarchical structure for describing all goods in trade for duty, quota, and statistical purposes. This structure is based upon the international Harmonized Commodity Description and Coding System (HS), administered by the World Customs Organization in Brussels; the 4- and 6-digit HS product categories are subdivided into 8-digit unique US rate lines and 10-digit non-legal statistical reporting categories. Classification of goods in this system must be done in accordance with the General and Additional US Rules of Interpretation, starting at the 4-digit heading level to find the most specific provision and then moving to the subordinate categories.
Heavy Lift :A unit of cargo which cannot be lifted by the normal ship's gear.
Hedging Tools: Hedging tools provide a way to protect against the potential currency exchange risks of the market. The frequently used hedging tools for international trade are netting, forward contract, futures contracts and currency options. Regarding exports from the US, it is an agreement with a bank whereby the exporter is guaranteed a definite rate of exchange upon presentation of a specified foreign currency on a predetermined rate.
Held Covered :An agreement by underwriters to extend the terms of the insurance in specified circumstances subject to an additional premium.
High Seas :Maritime areas that are outside the jurisdiction of any state.
In Personam :Legal action against a person.
In Rem :Legal action against an object or the owners thereof (e.g. action naming the ship).
Incoterms 2000 :A standard set of rules allowing the interpretation of commonly used shipping/trade terms published by the ICC.
The above details describes about terms called in import trade such as Free On Board,Flotsam, Foul Bill,General Average ,General Average Deposit,Gross Tonnage ,Harmonized System,Harmonized Tariff Schedule 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. The terms used in import business such as Freight all Kinds,Free Alongside Ship,Feeder Ship
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