Accelerated Payment (AP) can refer to several financial mechanisms that allow a business or other party to receive payments faster than under traditional payment terms. Accelerated payments are typically facilitated by a third-party company that pays the business a discounted amount in exchange for the exclusive right to collect the full amount later on the…
An air waybill (AWB) is a required legal document that accompanies international air cargo. It serves as a receipt of goods, a carriage contract between carrier and shipper, and a tracking document. What Does an Air Waybill Include? Sometimes referred to as air consignment notes, AWBs: Other information included in AWBs: Unlike a typical ocean…
Antidumping Duties (ADs) and Countervailing Duties (CVDs) are additional taxes applied to imported goods in the USA to protect domestic manufacturing from unfair trade practices. CVDs are applied to imported goods and materials when their manufacturing processes are subsidized by a foreign government, resulting in an unfair market advantage through less-than-fair-value pricing. ADs, on the other hand, are applied…
The Automated Commercial Environment (ACE) is a processing system for commercial trade implemented by the US Customs and Border Protection (CBP). The system is designed to automate and speed up import/export border processing by providing CBP and its Partner Government Agencies (PGAs) with additional tools to approve or deny shipments, monitor trade, and enhance security. …
The Automated Export System (AES) is used by exporters nationwide to file their export declarations and is available at all ports. The AES also helps enforce export compliance, collect Electronic Export Information (EEI), and reduce duplicate filing errors. Covering all transportation types for export, such as air, sea, rail, and truck, the automated system organizes…
A bill of lading (either BOL or B/L) is a legal document issued by a carrier that acts as the contract between the carrier and the shipper, the shipper’s receipt, and the document of title. BOLs are also used to aid in the tracking of shipments to their final destination. How do Bills of Lading…
A blank sailing, also called a void sailing, is when a carrier cancels a scheduled call into port. This can refer to a single port cancellation or multiple cancellations across an entire string of calls to port. For shippers, a blank sailing means a vessel will not stop at its scheduled port to load/offload cargo….
In a blind shipment, the origin of shipped goods is hidden from the end customer. Shipping documents, like the bill of lading and commercial invoice, display the name and address of a third party or intermediary instead of the sender. Blind shipping is often used in drop-shipping, where products are sent directly from a supplier…
Break bulk ocean shipping is a method used to transport cargo that is too big or too heavy to be put into a standard-sized shipping container. Break bulk cargo is often stored in barrels, reels, bags, crates, or any other storage method relevant to the cargo type. Some examples of break bulk cargo include steel…
Bulk cargo refers to cargo that is shipped loose and unpacked, rather than as a package or in a container. Some typical examples of bulk cargo include oil, grain, iron ore, fertilizers, and other types of liquid/dry goods. Shipping bulk cargo requires specialized equipment depending on the type of cargo being shipped. Liquid bulk cargo,…
The Centers of Excellence and Expertise (CEE) is a US Customs and Border Protection (CBP) initiative to streamline post-trade activities and enhance regulatory compliance. The CEE comprises 10 industry-specific centers based at ports across the United States. Each center specializes in a specific market sector, such as automotive or pharmaceuticals. Experts from the Centers offer…
A chassis, also referred to as a container chassis or an intermodal chassis, is a specially designed trailer used to transport shipping containers via road. Chassis are designed for both 20’ and 40’ containers, with special locks that secure the container in place. Because of their design, container chassis can be quickly loaded and unloaded…
A commercial invoice is an important customs declaration document used in international shipping for import and export clearance. Customs officials use commercial invoices to determine the value of a shipment and the amount of import duties and taxes owed. Commercial invoices contain vital shipment information, such as: If you have to fill out a…
A common carrier is a public or private company that offers transportation services to the general public. These services may be for the transportation of cargo or people. Common carriers serve their customers at a specified rate, provided there is available capacity, and are responsible for any losses or damage to cargo during transportation. Common…
In international freight, the consignee is the person to whom ownership of a shipment transfers upon arrival at its destination. The consignee can be considered as the shipment receiver, and their name will be listed on a shipment’s bill of lading, as they are responsible for picking up shipments from ports. While consignees are generally…
The country of origin refers to the country where goods are manufactured or produced. The country of origin is essential in effectively applying tariffs, preferential trade status, trade sanctions, and import quotas. Country of origin information is also vital for informing end users about a product’s origin. US Customs and Border Protection (CBP) closely monitors…
The Customs Trade Partnership Against Terrorism program, or CTPAT, is part of the U.S. Customs and Border Protection’s (CBP) cargo enforcement strategy to strengthen international supply chains while maintaining U.S. border security. Through CTPAT, CBP works with freight and logistics organizations, including freight forwarders, customs brokers, and importers. The program is voluntary and facilitates stronger…
US Customs and Border Protection (CBP) is the government agency responsible for regulating all international trade and travel at all ports of entry into the USA. Its primary focus is to protect national borders from the illegal entry of people or goods while simultaneously facilitating lawful travel and trade. CBP reviews all import paperwork pertaining…
A Customs Broker is an individual licensed by U.S. Customs and Border Protection to transact customs business on behalf of importers and exporters. Licensed customs brokers are authorized to prepare and file entry documentation, calculate duties and taxes, and communicate with CBP regarding the release and clearance of goods. To obtain a license, an individual…
Customs Brokerage is a professional service that facilitates the clearance of imported and exported goods through U.S. Customs and Border Protection and other government agencies. A customs brokerage firm represents importers and exporters in meeting regulatory requirements, filing entry documentation, and ensuring that duties, taxes, and fees are properly assessed and paid. Because customs regulations…
Customs clearance is the authorization granted by a government’s customs department to a shipment to enter or exit the country’s borders. Customs clearance is a vital procedure for the international shipping of goods. Once customs have cleared a shipment, shippers must produce the necessary documentation showing what duties and other expenses they have paid before…
Customs Compliance refers to an importer’s or exporter’s adherence to all applicable laws, regulations, and administrative requirements governing the cross-border movement of goods. In the United States, this includes compliance with U.S. Customs and Border Protection regulations, the Harmonized Tariff Schedule, valuation rules, country of origin determinations, trade remedy measures, and requirements administered by Participating…
A customs entry is a declaration that describes the kind, quantity, and value of goods being imported or exported. It is an essential part of ensuring a smooth customs clearance. If you are working with a customs broker, then they will typically handle this form for you. The full list of information types listed on…
Demurrage is the fee the terminal charges for cargo that remains on-site past the last free day. Demurrage fees are charged daily per container left at a terminal until its pickup, whether at an ocean or rail terminal. Each port of entry can have its own rules for calculating demurrage and determining a container’s allotted…