1. Vocabulary
AD VALOREM:Tariff basedon a percentage of the value of the load.
ADMINISTRATIVEAUTHORIZATION SCHEME: In the countriesthatrequire it,the exportorimport
operationsthatare underthisregime,will needapreviousdocumentthatauthorizes them.
ARBITRATION:Buyingagoodin one marketto sell itinanother,takingadvantage of price
differences.Commonlyappliedtothe purchase of foreignexchangeandotherfinancial securities.
ATEIA:Associationof International CarriersandAssimilated.
ATP:International Agreementonthe InternationalCarriage of PerishableGoodsandSpecial
Vehicles
Arrumaje:Conditioningthe cargoof a shipwithwhichitis notdamagedor spoiled.
ALCA: Free Trade Area of the Americas.Agreementproposedin1994 during the Meetingof
Headsof State of the Continent,heldinMiami,aimstoeliminatecustomsbarriersbetweenthe
countriesof the Region.
AFORO:Evaluationof a goodby the customsauthoritiesforthe purpose of paymentof customs
duties.Itcan be physical (inspectionof goodsinsitu) ordocumentary(inspectionondocuments).
Advance:Advance paymentordisbursementproducedbefore anexpense isrecognizedasrealized
BOARDING:Loadingina vehicle of the ship.
BANK:Empresacomercial que realizaoperacionesfinancierasconel dineroprocedente de
accionistasyclientes.
BLACKLIST:Black ListNegative Certificate.Itcertifiesthatthe exportingbeneficiaryisnotincluded
inthe blacklistof the country to whichthe goodsare intended.
BENEFICIARY:Person inwhose favorthe creditisissuedandwhocan demandthe paymenttothe
issuingBankor the payeronce it has fulfilledthe conditionsstipulatedinthe credit.Itisthe
exporter.
BANKDRAFT: Checkextendedbyabank to anotherbankpayable toa third party.
BILL OF EXCHANGE:Documentor title value bywhicha natural or legal person(drawer) orders
another(drawee) topayan amountinfavor of a third party,at maturity.
BreakingBull:Itisthe total or partial decompositionof the containerinitselementstoproceedto
itsstorage or transportto the receiverof the load.
2. Commerce: Consistingof the exchangeof some materialsthatare free inthe marketforthe
purchase and sale of goodsand services,whetherforuse,sale ortransformation.
Customs:The customsof a countryare responsibleforthe administrationof the entrancesand
exitsof productsabroadin the country.
Cost,Insurance andFreight: It meansthatthe sellerdeliversthe merchandisewhenitexceedsthe
edge of the shipat the agreedportof shipment.
Container:Cargocontainerformaritime orinlandwatertransport,landtransportand multimodal
transport.
Carriage and Insurance Paidto: The sellerdeliversthe goodstothe carrierdesignatedbyhimbut,
inaddition,mustpaythe costs of transport necessarytobringthe goodsto the agreed
destination.
Carriage paidTo: The sellerdeliversthe goodstothe carrierdesignatedbyhimbut,inaddition,
mustpay the costs of transportnecessarytobringthe goodsto the agreeddestination.
CREDIT CARD: Card issuedbya bankthat allowscertaintransactionsfromanATMand the
purchase of goods andservicesoncredit.
CAPITAL:Anamountof moneythatis givenorimposed,whichdistinguishesthe interestcharged
on the loan.
CHEQUE: Documentoque extiende yentregaunapersonaaotra para que esta puedaretiraruna
cantidadde dinerode losfondosque aquéllatieneenel banco.
Consumer:esunapersonau organizaciónque demandabienesoserviciosacambiode dinero
Cabotaje:Machinery,vehicles,equipment,machinetoolsandtools,directlyorindirectly,a
productionof goodsor servicesora marketingthereof.
CurrencyAdjustmentFactor: CurrencyAdjustmentFactor.Itinfluencesthe freight.
Chamberof Commerce: Associationorinstitutionthatatlocal,provincial,national orinternational
level,groupstraders(whetherimporters,exporters,industrialists,wholesalers,retailers,etc.)
ConfirmingBank:Withinthe letterof credit,itisthe bank that givesitsconfirmationtoit.Itcan be
eitherathird bankor the "correspondent"bank.
CUSTOMS BROKER: Natural personincharge of customsdocumentation.
CONSIGNMENTNOTE: Documentthatstatesthe conditionsunderwhichthe goodsare
transported.
COMMODITY: It maybe subjectto customsregimes,operationsanddestinations.
3. COMMERCIAL FREEDOM AGENCY TOTAL: Withinthisregime the majorityof the operationswith
the outside are realized.Nopre-exportorimportrequirementsare required.
DeliveredAtFrontier: Itmeansthatthe sellerhasfulfilledhisobligationtodeliverwhenhe has
placedthe merchandise shippedinCustomsforexportatthe agreedplace andplace of the border
but before the bordercustomsoffice of the buyercountry
DeliveredDutyPaid: Itmeansthat the sellerdeliversthe goodstothe buyer,dispatchedfor
importation,andnotunloadedfromthe meansof transportusedat the agreedplace of
destination.
DeliveredDutyUnpaid: Itmeansthat the sellerhasfulfilledhisobligationtodeliverwhenhe has
made the goodsavailable tothe buyerat the agreedplace of the importingcountryandthe Seller
has to bearall the costsand risksrelatedtocarryingthe goodsto that place
deliveredEx-Quay:Itmeansthatthe sellerdeliverswhenthe goodsare made available tothe
buyer,withoutbeingclearedforimportation,atthe wharf (landingstage) atthe agreedportof
destination
Deflation:Situaciónde excesode ofertaque puede provocarunadisminucióngeneralizadade los
precioso unarecesióneconómica.
DEMAND: Requestorrequestforsomething,especiallyif itconsistsof arequirementoris
consideredaright.
Discount:The discountisa reductionor decrease inthe price of an objector service
Debtor:Is that natural personor legal entitythathasthe obligationtosatisfyanaccountpayable
contractedto a creditorparty.
Duty: Taxesinmostof the legislationsonthe exclusiveuse of "state tax authority",mainlywiththe
purpose of financingtheirexpenses.
DOCUMENTARY CREDIT LETTER: A documentbywhicha requestfromthe buyerhisbank
authorizesthe exportertocollectona specificdate fora specificissue againstthe submissionof
precise anddetaileddocumentsinaccordance withthe termsof the credit.
DOD: Rightof ForeignExchange.Theyare the expensesandbankcommissionsforthe paymentof
the maritime freight.Approximately1% of freight.
DRAW BACK:Restitutionof customsdutiesthattax the importationof goods.Thisbenefitis
subjecttolegal regulationsspecifictoeachcountry.
DEAD WEIGHT TONNAGE:It includesthe weightof aship'scargo and consumables.
Economy:The extraction,production,exchange,distributionandconsumptionof goodsand
services.
4. Ex-Works:It meansthatthe sellerdeliverswhenthe goodsare made available tothe buyer atthe
seller'spremisesoratanotheragreedplace (ie factory,warehouse,etc.).
Exportation:EXPORTISCONSIDEREDTHE EXIT OF GOODS FROMTHE NATIONALCUSTOMS
TERRITORY WITH DESTINATION TOANOTHERCOUNTRY.
EURO: Single Europeancurrency.
EXPORT LICENSE:In the countriesthatare needed,documentthatgrantspermissiontoexport
specifiedgoodswithinaspecificperiod.
Free AlongShip: Itmeansthat the liabilityof the selleristerminatedonce the merchandiseis
placedalongside the vesselatthe agreed portof shipment.Thismeansthatthe buyerhasto
assume all costsand risksof lossor damage of the merchandise fromthatmoment.
Free Carrier:It meansthat the sellerdeliversthe merchandise forexporttothe carrierproposed
by the buyer,at the agreedplace
Free On Board:The seller'sliabilityendswhenthe goodsexceedthe ship'smarkatthe agreedport
of shipment.
FORFAITING:Purchase of acceptedbillsof exchange,documentarycreditsorotherpromisesof
payment.
FORWARDER:Consignor,shipper, freightforwarder.
Franchise:Total or partial exemptionof the paymentof taxes,providedbylaw.
FRANCODEPOSIT:Closedlocal,markedinthe national territoryandauthorizedbythe State,in
whichthe goodsare considerednottobe in customsterritory.
FAD: DevelopmentAssistance Funds(creditstodevelopingcountries)
FCL: Cargo containerfull.
FORFAITING:Purchase of acceptedbillsof exchange,documentarycreditsorotherpromisesof
payment,waivingthe acquirerof these effectstoanyrightor claimagainstthe exporterandthe
previousowners.
FRANCHISE:Incustomstermsis the total or partial exemptionof the paymentof taxes,provided
by law.
FOREIGN MERCHANDISE: The one that comesfrom outside,whoseimportationhasnotbeen
legallyconsummated,the one placedundersuspense,temporaryorperfectionregimes,aswell as
the one producedor manufacturedinthe countryand that hasbeennationalizedabroad
5. FREE PORT: It isa territorythatenjoysexemptionsandsubsidiesof customsduties.Youcan load
and unloadgoods.
FREE ZONE: Free trade zone,legallyregulatedbythe fiscal institutionsof acountry,withinwhich
the customsdutiesinforce for the restof the national territory
Guarantee letter:Document,issuedbyanair carrier,whichconstitutesproof of acontract of
carriage of cargo, being,atthe same time.
I RAISED:Act by whichthe customsauthorize the interestedpartiestoconditionallyor
unconditionallydisposeof the goodsdespachadas.
INCOTERMS: Rulesthatdefine andinterpretthe commercial termsusedinaninternational
contract of sale,relatingtothe deliveryof the merchandise,the transmissionof the risksof the
cargo, the distributionof the expensesandthe necessaryproceduresforthe crossingof borders.
INTERNATIONALLOADAGENT:Also"Carrier".The one that realizesandreceivesshipments,
consolidatesanddeconsolidate loadandactslike operatorof multimodaltransport.
Importation:ITIS A CUSTOMS REGIME THAT ALLOWS THE LEGAL INCOME OF GOODS PROVIDED
FOR THE EXTERIOR,TO BE INTENDEDFOR CONSUMPTION.
IMPORT LICENSE:In the countriesthatare needed,itisthe official authorizationthatallowsthe
entryof goodsintothe countryof the importer.If the goodsare notsubjectto customs
restrictionstheyare issuedautomatically
IssuingBankor Stakeholder: He receivesinstructionsfromhisclient(the importer) forthe opening
of a documentarycreditinfavorof the exporter
IRREVOCABLEDOCUMENTARY CREDIT: The creditcan notbe modifiedorcanceledwithoutthe
agreementof the issuingbank,confirmatorybank(if any) andthe beneficiary.Itisa firm
commitmentonthe part of the issuingBankinfavorof the exporter.
INSURANCEPOLICY: It isthe documentthatincludesthe conditionsunderwhichthe goodsare
secured.Theycanbe registeredorordered.
Load: It isdenominatedthustothose goodsthatare objectof transportby meansof the payment
of a price
LIFO: Freightcontractingclause.All portoperationsare onaccount of the merchandise,exceptthe
stowage at destination.
LINER TERMS: Line Terms.Whenthe shipisof regularservice.
LOADED ON BOARD: Indicatesthatthe goodshave beenloadedonboard.
6. LIGHT TRAILER: If the AuthorizedMaximumWeightislessthan750 kg.
LEGAL PURPOSE:Guarantee that affectsthe merchandisebyimpositionof the Law.
MANIFEST:The loadinglistof aboat.
MAQUILA: Processbywhichgoodsenterthe country inorderto onlyincorporate addedvalue
correspondingtolabor.
MERCHANDISE IN FREE CIRCULATION: All merchandisethatcan be freelydisposedof.
MERCHANDISE EQUIVALENT: That identical orsimilartothe one thatwas importedandwill be
subjecttoreplacement.
MIC/DTA: International Carriage CardforRoadTransport.
MULTIMODAL TRANSPORTDOCUMENT: These are multimodal transportdocuments,normally
issuedbycontainershippinglinestocoverthe dispatchof goodsfrom a place of takeovertoa
place of delivery.
MUELLAJE: Feespaidforusinga dock or dock service
Manufacturer:Personao sociedadque transformaproductossinelaborar enbienesparalaventa.
Manufacturer.
NATIONALMERCHANDISE: La producidao manufacturadaenel país con materiasprimas
nacionalesonacionalizadas.
NANDINA:Tariff reductionof the countriesof the AndeanCommunity.
Note the tarja: Documentmade jointly bythe carrierwiththe storer,duringthe verificationof
whatis statedinthe bill of ladinginrelationtophysical stocks,recordingthe pertinent
observations.
NRA:CustomsRegistrationNumber.
ORDERING: Personorentitythatrequeststhe openingof the credittoitsBank committingitself to
make the payment.Itis the importer.
ONU: UnitedNations.
OTM: Multimodal TransportOperator.
OUTRIGHT FORWARD:Futuresforward.All transactionsof purchase /sale of currency,with
valuationmore than2 businessdays.
OUTSIDERS: ShipsnotbelongingtoaMaritime Conference
7. Owner:Personunderwhose name anddirectresponsibilitythe expeditionorthe managementof
the operationof the ship
Proformainvoice: Itisa prefactordeliveredbythe exportertothe importer,inorderto make
knownto the importerwithexactnessthe price thatwill payforthe goodsandthe form of
payment
Purchase:Setof groceriesboughtfordailyconsumption
PROFORMA INVOICE: Esuna prefacturaentregadaporel exportadoral importador,conel objetivo
de dar a conoceral importadorconexactitudel precioque pagarápor lasmercancías y la formade
pago.
PalletAllowance:Reductioninfreightcontractingforpalletizedmerchandise.
PACKINGLIST:It is a listspecifyingthe contentsof eachpackage of an exportoperation.
PIB: GrossDomesticProductor Gross DomesticProduct
POSTPANAMAX:Shipsthatcannot passthe Panama Canal.
pre input:The processof presentingdocumentsatthe customsoffice priortothe issue or arrival
of the merchandise
PROEXPORT:Colombianagencyforthe promotionof exports.
PREVIOUSSTATISTICALSURVEILLANCESCHEME: In some countriescertaingoodsare coveredby
thisregime.Itisthe responsibilityof the Ministryof Commerce todecide whetheragoodis
subjecttothisregime
RED CLAUSE: Itallowsthe exportertodispose of the total amountof the creditbefore submitting
the documentsinthe requirementsandevenbeforeissuingthe merchandise.Itisa financingfrom
the importerto the exporter.
RECINTOESPECIAL:Area that belongstothe CustomsWarehouse
RESERVES OFA DOCUMENTARY CREDIT: If the documentsdonot strictlycomplywiththe terms
and conditionsestablishedinthe creditconditions,thenwe willtalkaboutRESERVATIONS.
RETURN: Returnto the place of originof the same vehicle of the cargocarriedto the place of its
destinationandnottodisembarkit.
REVOLVING:A revolvingDocumentaryCreditisone thatcan be usedfor a limitedamount.
ROLL ON ROLL OFF: Vesselsfortransportof rolledcargo.
Seasonality:Periodof time associatedwithcertainproductive activities,whichisrepeated
cyclicallyeveryyear.
8. Saving:esla acciónde separaruna parte del ingresomensual que obtieneunapersonaoempresa
con el finde guardarlopara un futuro.
STAND-BYCREDIT: A Stand-bycreditisusedasa substitute foraguarantee.Itisan endorsement
of documentaryexecution.Theycanbe usedinany type of transactionand are basedonthe
conceptof breachof contract bythe originatorof the credit.
SEA PROTEST:It can be due to breakdowns,shipwreck,collisionorfailure tosubmitcargo.
SEA WAYBILL: NonNegotiableShippingDocument.
SOBRESTADÍA:The moneypaidbythe exporterfordelaysinloading,unloadingorforoccupying
space in a port or warehouse beyondaspecifiedperiod.
SPOT:It is the change in the purchase of one currency fromanother
SHORT FORMBL (BlankBack): Thisis a documentthatdoesnot include all the termsof the
shippingcontractonthe back of the document.
SMI: International MonetarySystem.
Tariff:Tax paidby the importerwhenintroducingproductsinamarket. See CustomsRights.
TemporaryAdmission: Régimenaduaneroporel cual se permite el ingresodentrodel territorio
aduanerode un país, con suspensiónde losderechosytasasa la importación
THREAD SHIFT: It isthe weightof the shipbuiltbutwithoutfuel,luggage,crew orcargo
TRAVEL POLICY:AlsocalledIndividual policy,isthe one thatisissuedtocovera single specifictrip.
TRANSFER:The processof transferringthe cargofrom one meansof transportto another.
TRANSITARY:The party responsible fororganizingthe exportorimportof the cargo. See
International FreightBroker.
TAKEN IN CHARGE: Indicatesthatthe merchandise hasbeentakenforloading.
Tag code: Formal statementof the ethical prioritiesof acompanyor organization
Understanding: Decisiononsomethingtakenincommonbyseveral people.
Unitarizedload: Itisunderstoodbyunitizationof acargo to the assemblyorgroupingof a number
of articlesorpackagesina single setforthe purpose of facilitatingtheirmanipulation
VALUABLE POLICY:It isthe policyinwhichthe partieshave notmutuallyagreed the valueatwhich
the goodsare insured.
