Bill of Lading
Shall mean a document issued by a carrier; it is a carriage contract between an exporter and a carrier specifying the port of loading, port of arrival, means of carriage, freight and how to pay the same. The bill of lading shall be deemed a confirmation by a carrier that cargo is delivered to the holds. It is also an ownership contract for the exporting entity as the bill of lading describes the cargo and the consignee.
Shall mean a document forming a carrier’s confirmation of takeover and its readiness to carry the cargo.
Shall mean a written list of names and descriptions of cargo carried on a vehicle, train, or a car. It is the official document accepted by a carrier in the event the cargo owner or the insurer claims the carrier to pay the price of any part lost or damaged in the cargo during shipment.
Free On Board (FOB)
Shall mean a pricing condition referring that the price shall include the cost of cargo carried aboard a ship at a designated place. The exporter shall not be responsible for cargo, once the same is placed aboard a ship at the port of departure. Hence, the purchaser shall bear all costs and risks that may affect cargo after being placed aboard a ship.
Cost Insurance and Freight (CIF)
Shall mean a pricing condition indicating that the price shall include the cargo cost, insurance, and freight until cargo arrives at the destination of the importer’s country.
Ex-Works or Ex-Factory (EXW)
Shall mean a pricing condition under which the seller’s liability is limited to making cargo available to the purchaser at any of the seller’s places such as the factory or warehouse. The purchaser shall bear all costs of carrying cargo and any risks resulting from receiving cargo from the seller’s land until delivering the same to a named destination. This condition places the minimum obligation on the seller.
Delivered Duty Paid (DDP)
Shall mean a pricing condition stipulating that the seller shall fulfill his obligations when he delivers cargo to the purchaser cleared for import unloaded from the means of transport at a named destination. This condition places the maximum obligation on the seller.
Shall mean the permissible quantity of cargo imported at a low tariff which was negotiated in a trade agreement.
Most Favored Nation (MFN)
Shall mean a provision added to economic, financial, air, and sea conventions and agreements, by which one country pledges to grant another country the same privileges, facilities, or exemptions it had previously granted, or may grant in future to a third country. MFN is one of the World Trade Organization’s principles.
Shall mean the fees paid by the importer for his delay in returning shipping vessels at the destination port after the lapse of one- or two-week period granted thereto or as per the agreement between the carrier and importer. The delay period shall be calculated as of the date of the cargo arrival at the port of destination until returning empty vessels to the port.
Shall mean taxes usually levied on commodities imported to or exported by the country. Such taxes shall be ad volarem duty that shall be estimated as a percentage of the goods value, or may take the form of a fixed amount levied on the commodity whatever its value is and in such case, custom duties shall be called scheduled taxes. Beside tariffs, custom duties shall be basically used as a tool to raise state revenues and as a tool to protect domestic producers from competitors from abroad.
Certificate of Origin
Shall mean a certificate issued by the chamber of commerce in the exporter’s country specifying the place of manufacturing or producing the cargo to be exported. It is deemed an important document to know the nationality of cargo in order to estimate the duty rates that shall be levied thereon or the preferential treatment that shall be granted thereto. The certificate of origin shall be beneficial to manage preventing economically boycott or banned commodities from leaking.
Shall mean restrictions imposed on the quantities of commodities a country is allowed to export. The government resorts to such a measure either to help control prices so as to avoid price hike or with view of controlling goods for defensive purposes.
Shall mean an invoice specifying the quantity, value, and specifications of the consigned cargo as well as the condition for delivery associated with the price. It shall be issued by the exporter and endorsed by the chambers of commerce.
Shall include all custom tariffs and other importing requirements (detailed for each product) that a country shall apply to its Imports.
Customs Declaration Form (CDF)
Shall mean an official document prepared by accredited customs clearance agents who shall estimate and calculate customs duties and taxes that shall be levied by customs authorities. The CDF shall be accurately prepared and in consistence with the manifest which shall be submitted by the carrier to customs authorities to avoid customs fines.
Shall mean a permit necessary for all chemicals and raw materials and shall be usually issued in the country of destination.
Shall mean public or private warehouses under supervision of customs authorities, where cargo is stored under the supervision of the Customs Administration prior being cleared. In case such cargo is discharged from warehouses, customs duties resultant therefrom shall be collected instead of collecting the same at the time of importing. If the commodity is re-exported, there is no need for paying any duties.
Export Declaration Form (EDF)
Shall mean a document describing products, their value, weight, name of exporter, carrier, port of departure, country of destination, and arrival place, and shall be submitted to customs authorities upon exportation.
Shall mean cargo stored in public warehouses by their owners in preparation of paying due duties or taxes in case of being wholly or partially cleared or re-exported.
Rules of Origin
Shall mean a number of rules included in commercial agreements with an aim of facilitating determination of the country of origin, which shall be benefited from by having preferential customs exemptions set forth in free trade agreements.
Shall mean an invoice prepared by an exporter on the basis of a sale order or an inquiry and the importer’s takeover of such invoice shall not be an obligation to purchase products. This document shall include a full description of products, prices, importation specifications, expected delivery dates, conditions and dates of payment, followed route, packaging, shipping, insurance, and unloading cargo. Such document shall be necessary for the importer to obtain a governmental license for importation or opening a documentary credit.
Shall mean a document issued by an exporter outlining the contents and number of each package, weight of consignment, name of importer, number of commercial invoice, an accurate description and specifications of products.
Shall mean a license or permission given by a competent governmental authority to an importer to be allowed to bring in specified quantities of certain goods and commodities, which can only be imported by such license. It is a governmental tool to control and supervise the trade
movement across national borders. It is a mechanism for ascertaining and implementing trade policies as regards granting a preferential treatment and ensuring completion of pre-approval requirements as well as mandatory health and safety requirements.
Shall mean a governmental document allowing an exporter to export certain cargo to a particular country.
Shall mean paying back fees paid on imported goods upon re-exportation thereof.
This certificate shall indicate information on analyzing the required merchandise, the nature of substances included in their manufacturing and shall certify that the product is fit for human or animal consumption.
Shall mean a generally accepted global categorization system for goods internationally traded by virtue of a sole commodity code; substances are categorized into groups as per the nature of the materials they are made of.
Shall mean a certificate providing that grains, seeds, or vegetable seedlings are free of any diseases.
Certificate of Weight
Shall mean a certificate laying down the real weight of cargo and shall be required for homogenous cargo that depends on weight such as rice, sugar, and iron.
Shall mean a document outlining specifications, sizes, and measures of cargo in terms of length, width, thickness, and any other specifications. It shall also lay down the quantity of cargo in cubic meters and shall usually be used for merchandise that depends on size and measurement, not on the basis of
weight or packaging, such as woods and certain types of iron.
Certificate of Surveillance or Inspection
Shall mean a certificate issued by specialized companies such as LLOYDS or SGS; whereas cargo shall be inspected and surveilled immediately prior to shipping to make certain of their said specifications. In addition, cargo can be inspected at the port of arrival, if it is perishable during the shipping period.
Shall be required for materials that need an analysis to know the percentage of the ingredients thereof and shall be issued by specialized entities such as laboratories.
Shall mean papers given by customs authorities to the captain at the port to prove that the ship met its obligation and is entitled to leave the port.
Shall mean that imported or exported goods, upon passing by check or customs clearance points, should be provided with permits to facilitate their pass. Customs permits are in several forms; each respective to a certain customs operation.
Shall mean a bond required to be submitted by importers, warehouse owners, carriers, persons importing and handling cargo subject to customs duties. The purpose of this bond is to protect the government’s interest while such cargo exists in warehouses or during handling the same and clearing the transactions thereof prior to clearing customs duties thereon.
Shall mean a natural or artificial person who undertakes clearing official transactions related to imported goods and customs clearance for the same, preparing cargo papers made for exportation and submitting the same to customs authorities and submitting other documents required by governmental authorities in foreign countries.
Shall mean the transactions and formalities including paying fees, producing necessary customs documents for clearing imported cargo after being unloaded at air, sea, or land customs check point.
Shall mean the duties levied on imports from a particular state at a tax rate higher than the rate levied on similar imports from other countries.
Shall mean carrying commodities from dispatch centers to reception centers and ports with an intent to be temporarily deposited or to be subject to some processing operations, wrapping, or packaging, then re-exporting the same without paying customs duties thereon.
Shall mean the barriers that prevent freedom of trade other than customs duties such as other restrictions on foreign commodities for example the state subsidy of some national commodities.
Shall mean a piece of paper, printed statement, metal or leather patch or the like that is attached to the commodity or the container, in which cargo is packed to describe the contents of the container, state the entity to which cargo shall be shipped, the origin and price thereof.
Shall mean a code used to distinguish a commercial product from similar products made by rivals. Brand names shall enjoy a legal protection from others’ transgression as per internal laws and the international law.
Shall mean a statement made by the captain on the cargo that shall be unloaded from the ship to a specific port; a copy thereof shall be sent to the customs authority and shipping agents. This manifest shall include a full description of cargo, name of importer, weight, number of parcels, volume of cargo, name of ship, number of trip, port of loading, and port of unloading.
Shall mean a tariff enacted for the purpose of protecting or encouraging a domestic industry, by fixing a high customs percentage on imported commodities that rival similar commodities made locally. Such tariff shall work on promoting and diversifying the national industry, but, at the same time, it increases the production cost; hence, the buying power of citizens shall be affected.
Shall mean exportation of commodities or goods that were previously imported from a foreign country without manufacturing the same or introducing a major change therein. This process takes place in case of rejecting cargo by the importer because of violations in the shipping conditions. Further, the cargo shall be re-exported to the country of origin or any other country in case the customs and health authorities refuse to clear the cargo because it is unfit for human consumption.
Shall mean the rate of indirect tax levied by the government on the commodities exported abroad and paid by the exporter, whether it shall be borne by the exporter directly or transferred to the producer and collected by the importer. Export duties also include the fees levied by the government against the right of exportation.
Shall mean the Financial aid granted by the government to local companies with view of encouraging exports and helping the balance of payment of the state. Export incentives shall include direct subsidies for lowering exports prices – export aid, tax privileges- exemption of profits yielded from exports, credit facilities- financing exportation with minimal costs, financial guarantees – bad debts reserve. Other countries consider export incentives as unfair trade practices; accordingly, they take retaliatory measures.
Export Restraint Agreement
Shall mean an arrangement between an exporting country and an importing country that limits the volume of a certain product(s) trade, particularly the exports and imports between two countries shall not exceed specific limits or percentage of the local sales in the importing country. Hence, an export restraint agreement shall be such a measure that protects local producers in the importing country from competitors abroad and enhances the balance of payment in that country.
Shall mean the subsidies paid by the country to encourage exports.
Harbor or Port Dues
Shall mean port fees paid by importers and exporters in return for using port facilities, anchorage places. Exportation procedures/ company registration: All economic establishments, sole proprietorship
or companies, should be registered at the Ministry of Economy and Trade by virtue of Law, as companies are categorized into public stock company/ limited private company/ company/ limited company- limited partnership / foreign trade dealing card. Having registered the company at the Ministry of Economy, the merchant shall file an application to obtain a foreign trade dealing card to be annexed.
Usually, exportation does not necessitate obtaining licenses, but some commodities need to meet some conditions and measurements. In case of these commodities such as food stuff, chemicals, agricultural products, the export license is necessary. / Certificate of origin.
Free on Board
Shall mean that the importer bears the risk of cargo after loading the same aboard the ship. Accordingly, the importer shall pay an insurance cost once cargo is shipped from the port of departure as the cargo price does not include the transport and insurance cost.
Shall mean the price of cargo along with insurance and freight. It indicates that the exporter shall pay the costs of insurance and freight until cargo reaches the port of arrival. The exporter shall bear the responsibility for cargo until it reaches the port of the importer as the price includes cost, insurance, and freight. The bill of lading is the carriage contract between the carrier and cargo owner, which shall be issued by the carrier, and shall be either negotiable or not. The term “negotiation” means the possibility of selling goods while they are still in the carriage phase. The airway bill, which is a document (for air shipment only) shall form a confirmation by the carrier of receiving cargo to be carried. The carrier shall issue such policy, which is unnegotiable, so that cargo cannot be sold while they are in the carriage phase.