Glossary Terms of Foreign Trade

AD VALOREM: Tariff based on a percentage of the value of the load.

CUSTOMS: Administrative unit in charge of the application of the legislation related to the import and export of merchandise, such as the control of the traffic of goods that are internalized or external to a customs territory, carrying out its valuation, classification and verification, and of the application and the control of a tariff regime and prohibitions.

ADR: European Agreement on International Transport of Dangerous Goods by Road.

CUSTOMS AGENT: Auxiliary professional of the customs public function, whose license enables it to the Customs to provide services to third parties as agent in the clearance of goods.

CUSTOMS TRANSPORTATION AGENT (A.T.A.): Person of visible or ideal existence who, in representation of the carriers, is in charge of the procedures related to the presentation of the transporting means and of its charges before the Customs.

TARIFF: Is the tax that is applied to the goods that are subject to import. The most widespread is the tax levied on imports, while tariffs on exports are less common; There may also be transit tariffs that are levied on products that enter one country for another.

BILL OF LADING: It is a receipt given to the shipper for the goods delivered. Demonstrates the existence of a maritime transport contract and grants rights to the merchandise.

CHAMBER OF COMMERCE: Association or institution that at the local, provincial, national or international level, groups the merchants (be they importers, exporters, industrialists, wholesalers, retailers, etc.) in order to protect their interests, improve their commercial activities on the basis of mutual cooperation and promote its prosperity, as well as that of the community in which it is based.

TARIFF CODE: Harmonized System Number identifies all existing assets. The tariff codes are classified into chapters (which are identified by the first 2 digits), items (the first four digits), subheadings (first six digits) or tariff item (the first eight digits of the tariff classification).

MERCANTILE CONTRACT: A commercial contract or commercial contract is a bilateral legal business that has a legal-mercantile nature. In general, in order for a contract to be classified as commercial, it must refer to acts of commerce, defined according to the applicable legislation.

DECLARATION OF CUSTOMS: It is the document presented by the importer (or his agent or freight forwarder) for the dispatch of the merchandise, in order that he / she happens to take charge of the same.

FREIGHT: Cost of maritime transport .

FOB EXPENSES: Expenses for receiving, hauling and loading a merchandise since it is received at the port until it is loaded on board.

IATA: International Air Transport Association.

INCOTERMS: These are international rules for the interpretation of commercial terms set by the International Chamber of Commerce. Its objective is to establish defined criteria on the distribution of expenses and transmission of risks, between exporter and importer. There are 11 terms: EXW, FAS, FCA, FOB, CFR, CIF, CPT, CIP, DAT, DAP, DDP. The Incoterms regulate: the delivery of goods, the transmission of risks, the distribution of costs, the paperwork of documents. But they do not regulate: the form of payment nor the applicable legislation.

EXPORT LICENSE: Document that grants permission to export specified goods within a specific term.

IMPORT LICENSE: It is the official authorization that allows the entry of the goods in the importer’s country. If the goods are not subject to customs restrictions, they are automatically issued.

PACKING LIST: A list that specifies the content of each package of an export operation.

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