Terms and Abbreviation
Bill of lading
A document issued by an agent of a carrier operator (usually a vessel or an air plane) in favor of a consignor which attests acceptance of the cargo for carriage and which contains the carrier’s obligations to hand out the cargo to the bill of lading holder (i.e. consignee) in the place of destination.
Booking a place aboard a ship by the agent by means of a booking note (contract for carriage of goods by sea), which confirms delivery and acceptance of cargo for transportation.
Such cargo as sand, claydite, grains, granulated mineral fertilizers, granulated chippings etc.
In the process of customs clearance cargo can be arrested due to misreporting Customs Authorities (incorrect quantity of goods, information of marking, manufacturer etc.)
Endorsements, marks and other signs made on the production, tare, package or on the stitched, pasted or tied up labels (tags).
Cargo protection means protection of transported cargo from steal, damage or loss. In accordance with Nomenclature of Goods of Russian Railway a range of cargoes require necessary safety measures of transportation.
Certificate of origin
A document issued by a relevant authority in exporting country. Certificate of origin certifies that the product originates from a given country, group of countries, region or part of a country. Certificate of origin is required for import of the goods and granting privileged customs regime.
Certificate of origin
A document confirming that the goods originate from the Commonwealth of Independent States (CIS) which in 1994 signed an agreement of creating a free trade area. This document gives an opportunity to have cost benefit in customs transaction processing between Russia, Ukraine, Uzbekistan, Armenia, Moldova, Azerbaidzhan, Kyrgyz Republic, Georgia and Tadzhikistan.
Certificate of origin in A form
A document which is issued for the goods imported from developed European countries, including the USA, Canada, Turkey, Australia, New Zealand and Asia. Such certificate of origin gives the right for exemption from taxation or customs reduction depending on the kind of the goods.
The term «Cost and freight» belongs to Incoterms. CFR supply conditions mean that the Seller pays for the goods delivery to the port, loading of the goods and freight; the Seller also provides performing customs procedures upon export of goods (including payment of customs duties). The Buyer pays for the goods insurance. The risk of loss or damage, also additional charges incurred after the goods have passed the ship’s rail, are transferred to the Buyer. CFR supply conditions are used only in cases when the goods is transported by means of marine and inland water transport.
The term «Cost, Insurance and Freight» belongs to Incoterms. CIF supply conditions mean that the delivery is considered to be performed by the Seller when the goods has passed the ship’s rail at the port of shipment. Sale price includes the cost of the goods, freight and transportation charges, also the cost of marine insurance.
The term «Carriage and Insurance Paid to» belongs to Incoterms. CIP supply conditions mean that the Seller delivers the goods to the designated carrier. Moreover, the Seller is obliged to pay all expenses connected with the transportation of the goods to the place of destination. The Seller’s responsibility ends when the goods has been delivered to the carrier, appointed by the Buyer. In the case if some carriers are appointed, the Seller’s responsibility ends upon delivery of the goods to the first carrier. The Buyer bears all risks and additional expenses which were incurred after the goods delivery.
A document which certifies compliance of the imported goods with established in the Russian Federation quality standards. It is issued by certification authorities after analysis of test protocols, production estimation, production or quality system certification (if it is required by certification scheme) and documents. Certificate is registered by a certification authority. Certificate is considered to be invalid without registration number. Certificate contains all documents which are basic for its issuing. Supporting technical documentation, enclosed to certified goods (label, technical datasheet etc.), contains a note of carried out certification and Number and the date of issue of the Certificate.
A consignment the owner of which is represented both by legal entities and individual persons. Consolidated cargo delivery is performed by means of one container or one kind of transport.
The term «Carriage Paid To» belongs to Incoterms. This term is applied to all types of transportation, including multimodal transportation. The Seller bears all expenses connected with the freight and transportation to the place of destination. The Buyer pays for insurance of goods. All risks are transferred to the carrier upon delivery of goods to the first carrier.
Customs applicant is a legal body who is the owner of the cargo and who directly takes part in concluding
Customs clearance means formalities which allow goods and means of transport cross the border and which are performed in the case of change of the customs regime. Customs clearance includes providing shipping documents, permits, customs declaration and declared goods, payment of customs charges. This procedure is a necessary condition when the border is crossed or when the customs regime is changed. As a rule this term is applied regarding to import of goods.
Customs cost correction (CCC)
Alteration of the customs cost of the goods when customs authorities do not agree with the cost, declared by a customs applicant, and when they refuse to accept this cost. CCC is usually used in the cases when the declared value is less then control value is. Customs applicant has an opportunity either to agree with the customs cost correction (for example, if the sum of extra payment is not large) or to challenge the decision of the Customs by establishing the declared value to satisfaction of Court.
It is one of the basic documents issued when the goods pass the customs border. It is issued by the cargo disponent and is certified by a customs inspector; further on this document allows passing the border. Declaration contains information about cargo, its customs value, means of transport by which it is delivered, consignor and consignee.
Indirect taxes (charges, payments) for import, export or transit goods, for the goods intended to be the benefit of state budget. Customs duties are incurred by customs authorities of the given country upon import of the goods to its customs territory or upon export of goods from this territory at the rate of a customs tariff and they are an integral part of import or export.
customs procedure [customs regime]
It is a procedure which determines requirements and terms of export or import (including imposing taxes and duties, goods status depending on the aim of its passing the border and sphere of its usage in the territory of importing country). Importer/exporter can choose any customs regime and change it for another one at any time irrespectively of quantity and quality of the goods, country of origin and country of destination. In accordance with Federal law No.
- 1. Customs procedure for release for domestic consumption
- 2. Customs procedure for export
- 3. Customs procedure for customs transit
- 4. Customs procedure for customs store
- 5. Customs procedure for processing in the customs territory
- 6. Customs procedure for processing outside the customs territory
- 7. Customs procedure for processing for further domestic consumption
- 8. Customs procedure for temporary admission
- 9. Customs procedure for temporary export
- 10. Customs procedure for reimport
- 11. Customs procedure for reexport
- 12. Customs procedure for
- 13. Customs procedure for destruction of goods
- 14. Customs procedure for refusal from goods in profit of state
- 15. Special customs procedure.
Customs value is the cost of goods which is determined with the purpose of customs duties estimation (i.e. fees, charges, excise duties, VAT). Actually it is a taxation base. It is also used for another measures of state regulation of commercial and economic relationships regarding the cost of goods, including currency control of foreign trade transactions and banking settlement of them in accordance with the state legislative acts. It is determined by a customs applicant, but its correctness is checked by the customs authorities. If the customs value is — or seems to the customs authorities — understated then customs cost correction (CCC) is needed. According to the Russian Federation legislation, in the case if CCC is needed, the customs authorities should notify a person, responsible for the goods transportation, about it, after which the latter should pay deficient amount of customs charges. Methods for determination of customs value of goods used in Russia comply with the ones used in the worldwide practice.
It is a specially designated and equipped building or some other place where the customs regime is applied. It can be of an open type (accessible for use by any person) or of a closed type (for storage of goods belonging to certain persons).
The term «Delivered At Frontier» belongs to Incoterms. This term can be applied either to railway or to automobile transport. The Seller is responsible for the transportation of goods to the border and for payment of duties. The Buyer is responsible both for customs clearance and for transportation of goods from the border to his certain place. Risks are transferred upon the border achievement. This term is excluded from
The term «Delivered, Duty Paid» belongs to Incoterms. It is used with the statement of place of arrival. The Seller’s responsibility ends when the goods have been delivered to the place, stated in the Buyer’s country. The Seller bears all risks, expenses for delivery of cargo (taxes, duties etc.), liability for damage and loss of goods, including duties and other charges, which are incurred upon import, up to this moment. The Seller is also responsible for customs clearance.
The term «Delivered Duty Unpaid» belongs to Incoterms. It is used with the statement of place of arrival. The Seller’s responsibility ends when the goods has been delivered to the place, stated in the Buyer’s country. The Seller bears all risks, expenses for delivery of cargo (taxes, duties etc.), liability for damage and loss of goods, excluding duties and other charges, which are incurred upon import, up to this moment. If the Seller is responsible for his fault if he has failed to prepare goods for import in time. This term is excluded from
Declaration of conformity
A document which certifies compliance of the imported goods with the established in the territory of the Russian Federation quality standards. A declaration of conformity should be necessarily registered by an accredited certification authority.
Delivery of a container
Delivery of a container means delivery of an empty container to the customer’s warehouse for further loading of goods into it.
The term «Delivered Ex Quay» belongs to Incoterms. It means the same as the term DES means, excluding transfer of risks until the cargo is discharged at the port of destination. This term is excluded from
The term «Delivered Ex Ship» belongs to Incoterms. The contract terms are considered to be fulfilled by the Seller when he has placed bonded goods, intended for import, at the Buyer’s disposal on board a ship at a designated port. The Buyer bears all expenses and risks connected with delivery of goods to the designated port till the discharge of goods. This term is excluded from
Door-to-door cargo delivery
Transportation of cargo (an integrated service) when the carrier operator accepts the cargo from consigner and hands it out directly to consignee against his signed receipt in a relevant place of destination, in which case the carrier operator assumes responsibilities of deliver and customs clearance of the cargo.
Governmental actions which maintain compliance with currency legislation when exchange transactions are carried out. Exchange control in the Russian Federation is performed by the Russian Federation Government, Exchange Control Authorities and Exchange Control Agents (including Customs bodies subordinate to the Customs Control Committee of the Russian Federation). Customs bodies perform exchange control of movement of currency, securities and currency valuables across the Customs Border, as well as of currency transactions connected with movement of goods and means of transport across the Customs Border.
The documents which are required for customs clearance. (For example, China requires export declaration, invoice and packing list in two languages, certificates, specifications, original bills of lading).
It is a document containing permit for export of the stated in the license goods within a certain period of time. This document is necessary for entities and persons who prepare documents for export of goods.
The term «Delivered Ex Ship» belongs to Incoterms. The Seller’s responsibility ends when the goods have been transferred to the Buyer or employed by the Buyer carrier inside the Seller’s building (warehouse, shop, etc.). The Seller is not responsible for loading of goods to the means of transport. The seller bears all expenses connected with transportation of goods out of a warehouse, customs clearance etc.
Foreign Economic Activities mean a complex of business, industrial and commercial functions of
The term «Free Alongside Ship» belongs to Incoterms. It means that the Seller bears all expenses connected with delivery of cargo to the port of shipment. The Seller fulfills his obligations to deliver the cargo at that very moment when the cargo is placed alongside a ship which is at berth or at lighter (at agreed port of shipment). The Buyer pays all expenses connected with loading of the cargo, insurance, discharging and delivery to the place of destination. Risks are transferred at the moment when cargo is been delivered to the berth at the port of shipment.
The term «Free Carrier» belongs to Incoterms. It means that the Seller fulfills his obligation to deliver when he delivers cleared goods for export to the carrier, appointed by the Buyer, at an agreed place. This place of delivery influences the obligations to load and to discharge goods at this very place. If the delivery is held inside the Seller’s buildings, then the Seller bears responsibility for loading. If the delivery is held at any other place, then the Seller bears no responsibility for loading.
FEACC code [UFEACC, FEACC]
Foreign Economic Activity Commodity Classification code is a
Fire safety certificate
A document which certifies compliance of the imported goods with established fire safety regulations. There can be issued either a fire safety certificate or a fire safety declaration for the goods — the choice of the document depends upon the kind of the goods and its potential hazard which is determined by relevant experts.
Fire safety declaration
A document which certifies compliance of the imported goods with the adopted fire safety regulations. There can be issued a fire safety certificate or fire safety declaration for the goods. The choice of the document depends upon the kind of goods and its potential fire hazard and is determined by the relevant experts.
The term «Free On Board» belongs to Incoterms. FOB conditions imply that the Seller is obliged to deliver goods to the port and load it at an appointed by the Buyer ship. Expenses for transportation of goods to the ship’s board are paid by the Seller.
It is a contractual and lawful payment for cargo carriage made in favor of a carrier operator by a consignor, or freighter.
It is heavy semitrailer truck of maximum capacity often used for transportation of
Substances and things having potentially dangerous physicochemical characteristics which require special safety measures during transportation and storage.
An international interpretation of the commercial terms most often used in a foreign economic practice. Every term is presented by an abbreviation of three letters. For the first time Incoterms was published in 1936. Amendments and additions were issued in years 1953, 1967, 1976, 1980, 1990, 2000. New
Index of customs value (ICV)
The price per 1 kg in US dollars equal to proportion of total customs commodity cost to the total net weight. It is a control value used by the customs authorities.
A supporting document for cargo which is used in international transportation (like a
Methods for determination of customs value of goods
A unified system of determination of value of the goods imported into the customs territory of the country. In the Russian Federation such system includes six methods which comply with the principles of customs valuation system of General Agreement on Tariffs and Trade (GATT):
- 1. Method for determination of customs value based upon recoupment of cost
- 2. Method for determination of customs value based upon computed value
- 3. Method for determination of customs value based upon transaction value of imported goods
- 4. Method for determination of customs value based upon transaction value of identic goods
- 5. Method for determination of customs value based upon transaction value of similar goods
MSDS is a document containing information of the product’s characteristics, the degree of its potential hazards, its storage precautions, its handling rules, precaution of negative effects, ecological information, disposal recommendations, transportation information. MSDS is necessary for transportation of hazardous cargo.
Multimodal transportation means transportation and delivery of the goods within the terms of one agreement via successive means of transport (land, marine or air transport). There are transshipment terminals where cargo is transshipped from one means of transport to another one.
Non-tariff regulation measures
A complex of regulation measures used in foreign trade, which is performed by means of imposing quantiity bans and other economic bans. The regulation measures are as following: establishment of quotas, licenses, safeguard actions, certification,
Over dimensional cargo
The cargo of irregular size, weight, volume, which requires special means of transportation (as a vivid example of over dimensional and over tonnage cargo can be a house, drilling machine, heavy generators etc.)
It is a commercial document which contains a list of things which make one cargo item (a box, a case or a container). Packing list is used when the amount of loss and the amount of indemnity are estimated.
A document which is issued by a relevant body and which certifies that the plants, fruits or vegetables are not infected and that they are suitable for human consumption. The document contains information about disinfection and other possible treatment.
Release of goods (cargo) into free circulation
Customs regulations when all imported to the territory of the Russian Federation goods stay in this territory (without export obligations).
Release of goods
Permission to use and/or manage goods in accordance with the stated Customs regulations. It is issued by Customs authorities in favor of all concerned parties (importers, customs brokers) after customs clearance has been performed.
Safety and Health Certificate (SHC) [Health Certificate, state registration]
A document which certifies compliance (
State Registration Certificate of the Customs Union (SRC CU)
In accordance with the Customs Union Agreement which came into force on
Through bill of lading
It is a bill of lading according to which the cargo is accepted for transportation to the port of destination with its transshipment at an intermediate port.
A document which is necessary for currency control during foreign trade transactions. It contains information about transaction, stated in a standard form. One transaction passport is issued for each concluded contract.