A - C D - G H - M N - R S - Z

ABI: Automated Broker Interface. ABI is part of the US Customs automated services for filing US Customs documents such as Entry/Immediate Delivery Form 3461, the Entry Summary Form 7501, and others. Using the ABI can expedite cargo release prior to arrival of merchandise. Filing can be done from within Magaya software using the Magaya SmartBorder ABI plug-in.

AES: Automated Export System. AES is the online system to file the Electronic Export Information (EEI), formerly called the Shipper's Export Declaration (SED), and the ocean manifest information directly to US Customs. For more details on the EEI, see the glossary entry for EEI. The EEI can be sent from within Magaya software with the Magaya AES plugin. The AES User Guide explains the fields of the AESDirect website and other terms.

ATA: Air Transport Association of America, is a trade association that fosters a business and regulatory environment that ensures safe and secure air transportation and enables U.S. airlines to flourish, stimulating economic growth locally, nationally and internationally.

CBP: US Customs Border Protection. The US CBP is a law enforcement agency of the US Department of Homeland Security that enforces trade and travel regulations, immigration and drug laws.

CIF: Cost, Insurance, Freight. See the section on Incoterms below.

CFS: Container Freight Station. Location/facility (such as at a freight forwarder's or the terminal grounds at the port) where stuffing and stripping of containers is conducted.

Carnet: A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.

Demurrage: A penalty for exceeding free time allowed for loading or unloading or holding of cargo.

Duty Drawback: This is a provision that allows a U.S. manufacturer to recover 99% of the duties paid on imported goods that are used to manufacture American products for export. This provision also applies to goods that are imported and then exported without further processing, providing the merchandise was not used in the U.S., no value was added to the product, and the goods were exported within three years of original importation.

ECCN: Export Control Classification Number. An ECCN is an alpha-numeric classification used in the Commerce Control List to identify items for export control purposes. It is issued by the Bureau of Industry and Security (BIS). Magaya software provides a field in the Commodity dialog box for entering the ECCN of the commodity. This data is transferred to the shipment and Customs automatically when you file the export transaction from your Magaya system to AES.

EEI: Electronic Export Information. Formerly SED, Shipper Export Declaration, the EEI is required by the Census Bureau to compile export statistics for goods leaving the United States and is filed through the Automated Export System (AES). The EEI is required for export shipments where the value per Schedule B is over $2,500 (or for any dollar value if the shipment requires an export license). As of October 1, 2008 AES is mandatory and must be filed electronically. It is the responsibility of your company to retain a copy of the AES for your records. The EEI data can be included in shipments by entering and saving the data in the fields of the Commodity dialog box in your Magaya system. This data is transferred to the shipment and Customs automatically when you file the export transaction from your Magaya system.

FEU: Forty-foot equivalent unit. This equals two TEUs. See the glossary definition of TEU for details.

FIFO: First-In, First-Out is an inventory method for tax and accounting purposes. With this method of rotating stock, the first in (or oldest stock) is the first used. It is used to determine the cost of goods sold. For example, if inventory purchased in the first quarter of the year was more expensive than the items purchased in the third quarter, you can calculate the cost per item to see when your income was higher and when your costs were higher. Using FIFO, the company assumes that the first goods sold are the oldest, and the most recently acquired items remain in inventory on the balance sheet.

FIRMS: Facilities Information and Resources Management System. The FIRMS location must be bonded. The FIRMS code is the code for the location that stores goods.

FPPI: Foreign Principal Party in Interest. The party shown on transportation documents to whom final delivery or end-use of the goods will be made. This party may be the ultimate consignee. Generally the FPPI is the foreign buyer of the goods that are purchased or obtained for export.

GRI: General Rate Increase. The GRI describes an across-the-board tariff rate increase from carriers. GRIs can be entered into your Magaya system and used in shipments.

HMF: Harbor Maintenance Fee. HMF was created by the Water Resources Development Act of 1986 to require those who benefit from the maintenance of U.S. ports and harbors to share in the associated costs of such maintenance. The fee is assessed based on the value of the cargo loaded or unloaded at certain identified ports.

HTS: The Harmonized Tariff System (or "Schedule"). HTS is a system of numbers that are used to classify products for US Customs purposes to determine import duties and provides the applicable tariff rates and statistical categories for all merchandise imported into the United States. The numbers help Customs control quotas of imported goods. The HTS code is six digits, but in the U.S. it is a ten-digit number assigned to goods based on its name, use, materials, etc. Schedule B codes are built on the HTS digits. The USITC (Office of Tariff Affairs and Trade Agreements) is responsible for publishing the HTS for the US. There is a field in the Commodity dialog box of Magaya software to enter the HTS for goods that are being imported.

IAC: Indirect Air Carrier. Indirect air carriers are those businesses authorized to receive freight from shippers under their own tariff, but who utilize certified air carriers (direct air carriers) to perform the air transportation services.

IATA: International Air Transport Association. IATA is a trade organization that represents airline carriers and sets codes for airlines. The IATA code is seven digits. The IATA number can be entered in your Magaya system in the carrier's profile and transferred to Air Waybills and Customs documents.

Incoterms: Incoterms are International Commercial Terms that are recognized internationally and used worldwide in international and domestic contracts for the sale of goods. They help traders avoid costly misunderstandings by clarifying the tasks, costs, and risks involved in the delivery of goods from sellers to buyers. See the section on Incoterms for a list of terms.

INTTRA: INTTRA is an e-commerce solution for the ocean freight industry. Through INTTRA, logistics providers and others can communicate with ocean carriers. The web site portal includes sailing schedules that shippers and forwarders can use to find routes and carriers, tools to manage bookings, shipping instructions, and shipping documents. The INTTRA web portal is owned by a group of ocean carriers. The Magaya Ocean Carriers Interface INTTRA plug-in enables Magaya customers to communicate with worldwide ocean carriers electronically from within their software. Ocean Carriers Interface INTTRA plug-in

ISF: Importer Security Filing. ISF is information about imported cargo that must be filed with US Customs before the cargo is brought into the United States by vessel. ISF is also known as the 10+2 initiative. The ISF requirement is also called "10+2" because US bound cargo requires the ISF filer to provide 10 elements in the ISF and 2 that the carrier needs to supply regarding the vessel stow plan and container status messages. Transit cargo (FROB, IE, and TE) requires five elements. (FROB is Freight Remaining On Board, IE is Immediate Exportation, and TE is Transportation & Exportation.) The ISF initiative went into effect January 26, 2010. The Magaya ISF plug-in enables Magaya customers to transfer shipment data to CBP from within your Magaya logistics software.

ITN: Internal Transaction Number. This number is generated by the AES and assigned to a shipment, confirming that the EEI was accepted in the AES. When you file your shipment from your Magaya system to the AES, the ITN will be sent back to your Magaya system. Also see the definition of XTN on this page.

LIFO: Last-In, First-Out, is an inventory method for tax and accounting purposes. The most recently produced items are recorded as sold first. Using LIFO, the costs of the oldest inventory are maintained on the balance sheet under the assumption that the most recently acquired inventory is sold first.

MPF: Merchandise Processing Fee. MPF is a fee to pay for the costs of CBP processing an import shipment. It is paid by the importer of record. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges.

NESOI (can also be written "n.e.s.o.i."): This abbreviation is a Schedule B code that means the item is "Not Elsewhere Specified or Included". This commodity number should not be used until a check has been made to determine whether there is a classification elsewhere into which the item will fit more specifically.

NVOCC: Non Vessel Operating Common Carrier. A transportation company that does not own carriers but arranges space on carriers to transport goods.

PTT: Permit to Transfer. A PTT is requested when a bonded shipment needs to be moved to another location.

RORO: Roll On Roll Off. A vessel designed for cargo such as vehicles and automobiles to be roll onto the vessel.

SCAC: The Standard Carrier Abbreviation Code (SCAC) identifies transportation companies. The carrier code has three letters followed by a suffix that identifies the carrier's equipment. For example, a suffix of "U" is a container, "X" is for privately owned railroad cars, and "C" is a chassis. The code is required by US Customs to use their Automated Manifest System (AMS). The code is assigned by the National Motor Freight Traffic Association, Inc. (NMFTA). To apply for an SCAC, contact the NMFTA. The SCAC can be entered in the carrier's profile in Magaya software so it is automatically available to be used in transactions such as AMS filings.

SED: Shipper's Export Declaration. This document is now called the EEI, Electronic Export Information. Schedule B codes are required on EEI's. See the glossary entry EEI for more.

Schedule B: Numbers (or codes) that are export codes used by the U.S. Bureau of Census to collect trade statistics. Magaya software provides a field in the Commodity dialog box for entering the Schedule B code of the commodity. This data is transferred to the shipment and Customs automatically when you file the export transaction EEI (formerly called the SED) from your Magaya system.

Schedule C: Four-digit country trade codes assigned by the U.S. Census Bureau.

Schedule D: Four-digit codes assigned by the U.S. Government for ocean ports, airports, and land crossings (USA). The Routing tab of the Magaya shipment screen has fields for Schedule D and Schedule K codes. This data is included with the other shipment data when you file with Customs.

Schedule K: Five-digit codes for foreign ports (international). The Routing tab of the Magaya shipment screen has fields for Schedule D and Schedule K codes. This data is included with the other shipment data when you file with Customs.

Tare weight: The weight of an empty container.

TEU: Twenty-foot equivalent unit. This is a measure used to describe the capacity in container transportation for standard 20-foot containers. One TEU equals the cargo capacity of one 20-foot standard container. These containers are 8 feet wide, but the height can be between 4 and 9 feet, therefore the TEU is not an exact unit of measure. A common 20-foot container is 20 x 8 x 8.5 with a volume of 1,360 cubic feet.

ULD: Unit Load Device. Air cargo containers and pallets. IATA uses three letter codes (in upper case letters) to describe key characteristics of ULDs. Each of the three letter code positions describes particular characteristics of the ULD. Examples of codes are AKE (an LD3 without forklift holes), DPN (an LD2 with forklift holes), and RKN (an LD3 with a refrigeration unit). Common types of ULDs are: LD 1, 2 and 3; these are half-width containers that can sit side-by-side in an aircraft; LD6, LD8, and LD11 are full-width containers will take the space of two half-width containers. The higher the number on the LD, the greater the amount of cubic feet it can contain. Smaller planes with narrow cargo space use smaller ULDs. Each aircraft type and manufacturer has its own capacity specifications.

USPPI: U.S. Principal Party in Interest. The USPPI is the person or entity in the United States that receives the primary benefit, monetary or otherwise, from the export transaction. Generally the USPPI is the U.S. seller, manufacturer, or order party. The USPPI has an ID number that can be an Employer Identification Number (EIN), Social Security Number (SSN), or Foreign Entity Code (for example: Passport number). The Freight Forwarder is the forwarding agent who is authorized by the USPPI to facilitate the movement of the cargo from the United States to the foreign destination and/or to prepare and file the required documentation.

XTN: The External Transaction Number (XTN) is the combination of your IRS number (EIN or SSN) and your shipment number. "EIN" is Employer Identification Number. "SSN" is Social Security Number. Note: CBP.gov states the SSN is no longer acceptable for AES filing as of March 24, 2010. AES filers must have an EIN, DUNS or other number assigned by CBP. An EIN can be requested by contacting the IRS.

Incoterms:

Incoterms are International Commercial Terms that are recognized internationally and used worldwide in international and domestic contracts for the sale of goods. They help traders avoid costly misunderstandings by clarifying the tasks, costs, and risks involved in the delivery of goods from sellers to buyers and who is responsible for the goods during each portion of the transport. Incoterms rules do not deal with the transfer of title to ownership of the goods. Incoterms are set by the International Chamber of Commerce (ICC).

List of Incoterms:

CFR (Cost and Freight): This term states that the seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel. Maritime transport only and Insurance for the goods is not included. This term is formerly known as CNF (C&F). This term is new in 2010.

CIF (Cost, Insurance, Freight): This is used to calculate the total cost of insuring goods; it includes the value of the goods, the cost of the insurance, and the cost of the freight charges. This term is used for maritime transport only. CIF is calculated as C+I+F+10%. The 10% is for processing costs.

CPT (Carriage Paid To): The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier.

CIP (Carriage and Insurance Paid to): The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.

DAF* (Delivered at Frontier): This term can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier. This term has been removed from the 2010 version of the rules.

DES* (Delivered Ex Ship): Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc… are for the Buyer. This is a commonly used term in shipping bulk commodities and where the seller either owns or has chartered their own vessel. This term has been removed from the 2010 version of the rules.

DEQ* (Delivered Ex Quay): This is similar to DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination. This term has been removed from the 2010 version of the rules.

DDP: Delivered Duty Paid. The seller is responsible for delivering the goods and bears the costs and risks, including import duties, taxes and other charges of delivering the goods to the place named as the destination. This term places the maximum obligations on the seller and minimum obligations on the buyer.

DDU* (Delivered Duty Unpaid): The seller delivers the goods to the buyer to the named place of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bear cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale. This term has been removed from the 2010 version of the rules.

EXW (Ex Works): This term means that the seller has the goods ready for collection at his premises (works, factory, warehouse, plant) on the date agreed upon. The seller delivers when he places the goods at the disposal of the buyer at the seller's premises or another named place (i.e. works, factory, warehouse, etc.), not cleared for export and not loaded on any collecting vehicle. This is the minimum obligation for the seller. The buyer is not obliged to provide any information regarding the export of the goods (if applicable) to the seller. This term places the maximum obligation on the buyer and minimum obligations on the seller. If the buyer cannot carry out the export formalities directly or indirectly, the ICC recommends using the FCA term instead.

FCA (Free Carrier): This term is used when the parties do not intend to deliver the goods across the ship's rail. The seller hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place. The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier. The FCA term should always be accompanied by a reference to an exact place to which delivery is to be made.

FAS (Free Alongside): The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. (This is suitable only for maritime transport but not for multimodal sea transport in containers; see Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or bulk cargo. A price that is quoted FAS includes the cost of delivering the goods alongside a designated vessel.

FOB (Free on Board): The seller's obligations end when the goods pass the ship's rail at the named port of shipment. The buyer bears all the costs and risks of loss of or damage to the goods after the goods pass the ship's rail. The seller must clear the goods for export. A price that is quoted FOB includes the cost of loading goods into transport vessels at the specified place. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.

The term is applicable for maritime and inland waterway transport only; it is not for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715).

Notes on Incoterms:

In the version of Incoterms published in 2000, the terms were grouped into four term categories. The 2010 version groups terms by mode of transport: maritime vs. any other mode:

• The following incoterms apply to sea and inland waterway transport: FAS, FOB, CFR, and CIF.
• The following incoterms apply to any mode of transport: EXW, FCA, CPT, CIP, DAT, DAP, and DDP.

*DAT and DAP were introduced with the 2010 version of the rules. These two terms replace DAF, DES, DEQ, and DDU.

FPA (Free of Particular Average): This term is used in marine insurance policies to indicate that the underwriter is unwilling to assume full liability.

This list of incoterms was gathered from ICC and Wikipedia.

Incoterms are included in Magaya software (in the Maintenance > Configuration menu) for use in transactions.

For links to import and export agencies, Customs, and for other industry resources, please see our "Industry and Links Resources" page.