Last Free Day (LFD) is the last day of free storage offered by a terminal before demurrage or per diem fees are applied to a shipment. If a shipper wants to avoid these fees, it is crucial to ensure that shipments are picked up before the last free day. The allotted free storage time for…
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…
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…
A Notice of Intent to Export, Destroy, or Return Merchandise for Purposes of Drawback (CBP Form 7553) is a key step in the process of claiming the Rejected Merchandise Drawback. This form must be submitted to Customs and Border Protection (CBP) to allow CBP to examine a rejected duty-paid import and determine if it warrants…
Direct Identification Drawback is a type of duty drawback that allows importers and manufacturers to apply for a rebate of up to 99% of import duties, taxes, and fees on imported merchandise and components that are then exported for sale without being used domestically. What sets Direct Identification Drawback aside from other types of duty…
Rejected Merchandise Drawback is a type of duty drawback for imported materials that are either shipped without the consignee’s consent or that do not meet the agreed specifications at the time of import. What Is the Purpose of Rejected Merchandise Drawback? The Rejected Merchandise Drawback allows the importer to recoup up to 99% of the…
Manufacturing Drawback is a type of duty drawback, a rebate that manufacturers can apply for to recoup up to 99% of the duties and fees paid on imported raw materials and components that have been used in the manufacture of export products. What Is the Purpose of Manufacturing Drawback? The purpose of the Manufacturing Drawback…
Substitution Drawback, also called Manufacturing Substitution, is the rebate of up to 99% of the duties, taxes, and tariffs paid on imported materials used for manufacturing an export product, even when the imported materials are substituted for domestically made materials of the same kind and quality. What Is the Purpose of Substitution Drawback? Substitution Drawback…
An Original Bill of Lading (OBL) is a shipping document that acts as the contract of carriage, the title of the cargo, and the shipment receipt from the carrier. When an OBL is issued, three identical original bill of lading forms are issued simultaneously, one each for the carrier, consignee, and shipper. For the consignee…
A notify party is the party who receives the shipment information from a carrier when cargo arrives at its destination. This person is designated on a bill of lading, sea waybill, or air waybill, so they can receive the shipment information. The notify party can be the shipper, consignee, a customs broker, or any other party involved in the…
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…
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 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…
Tariff engineering refers to the practice that some manufacturers use to classify merchandise under a more favorable customs classification and pay the lowest possible duty rate. For manufacturers and shippers, customs duties and tariffs can add up to a significant amount depending on where shipments are imported from. Because the distinction between merchandise classifications can…
A Shipping Order (SO) is a document issued by carriers to shippers confirming that both equipment and space for a shipment on a chosen ship is available and has been booked. An SO acts as a receipt of booking cargo space with a carrier and it can be used in insurance claims as evidence of…
A Shippers Letter of Instruction (SLI) is a required document for exporting from the USA, granting a freight forwarder or carrier permission to act as a forwarding agent and providing instructions on how and where to handle the export shipment. An SLI also grants the forwarding agent permission to send the shipment’s Electronic Export…
Rules of origin are a collection of legal standards that define how to determine the country of origin relating to a specific shipment or piece of cargo. The country of origin can affect the duties applied to imports, eligibility for special programs, shipment admissibility, quota counts, and more. In some cases, correctly determining country of…
The Pier Pass fee is a type of traffic mitigation fee (TMF) administered at the Port of Los Angeles/Long Beach to containers that are unloaded during the port’s peak hours. It is part of the port’s OffPeak program, launched in 2005, which schedules regular night or weekend shifts for the pickup of laden containers The…
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…
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 Forty-foot Equivalent Unit (FEU) is a shipping container with internal dimensions of about 40 feet long, 8 feet wide, and 8 feet tall. One FEU can hold between 20 and 24 pallets, depending on whether the pallets are standard or EUR pallets. While the FEU is a standard in the United States, the Twenty-foot…
Detention is a fee for situations when a shipping container has been removed from a vessel, taken from the port to a destination such as a warehouse, unloaded, but not returned (either to the port or an empty container depot) within a certain amount of time. The term “detention” is also used when an empty…
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…
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…