Freight and shipping glossary

0-9

• 20ft containerThe standard short dry container, nominally twenty feet long and eight feet wide. Its internal volume and permitted payload vary by build and by the road and axle limits on each leg, so plan a stuff against the actual box specification and the binding weight limit rather than a nominal figure.
• 3PLThird-party logistics. A provider that executes physical logistics on your behalf — warehousing, transport, fulfilment, returns — under its own operations and systems, while you retain the commercial relationship with the end customer.
• 40ft containerThe standard long dry container, nominally forty feet. It offers roughly double the floor area of a 20ft but not double the payload, so dense cargo often fills two 20ft boxes more economically than one 40ft. Confirm the exact internal dimensions and tare with the carrier.
• 4PLFourth-party logistics. A provider that designs and manages the supply chain and directs the 3PLs, carriers and brokers inside it, without necessarily owning trucks, warehouses or vessels itself.

A

• AD codeThe Authorised Dealer code of the bank branch that handles an exporter’s or importer’s foreign exchange. It must be registered at each port or airport before a shipping bill can be filed there. Registering it at a new station takes time and is a common cause of a first shipment stalling.
• Ad valoremA charge calculated as a percentage of the declared value of the goods rather than on weight or volume. Insurance, some customs duties and certain carrier surcharges are levied this way, which means the invoice value directly drives the cost.
• Advance authorisationA DGFT scheme allowing duty-free import of inputs that are physically incorporated into an export product, against a defined export obligation. Norms, input-output ratios and the obligation period are set in policy and revised — confirm the current position before planning around it.
• AgentA party acting on behalf of a principal rather than on its own account. In freight this may be the carrier’s port agent, the forwarder’s destination agent, or a customs broker. An agent’s acts bind the principal, so the scope of the appointment matters.
• Air waybill (AWB)The air carriage document. Unlike a bill of lading it is not a document of title and is not negotiable — the airline releases cargo to the named consignee, so control passes on issue. The number carries a three-digit airline prefix followed by eight digits.
• All-in rateA quotation stated as a single figure said to include freight and the listed surcharges. It is only meaningful alongside the list of what it includes and excludes; local terminal, documentation and destination charges are frequently outside it. Ask for the exclusions in writing.
• AMSAutomated Manifest System. The advance cargo data filing required by United States customs before loading at origin, on a fixed deadline ahead of vessel departure. Late or incorrect filing can result in a no-load. Carriers pass on a filing charge; confirm the current deadline and fee with the line.
• Anti-dumping dutyA duty imposed on specific goods from specific exporters or countries where an investigation finds they are sold below normal value and injure domestic producers. It attaches to a product and origin combination, is time-limited and is revised, so verify the position for your HS code and origin before quoting a landed cost.
• AssessmentThe customs step at which the declared classification, valuation, exemptions and licensing are checked and the duty payable is determined. It may be done on the declaration alone or after examination of the goods, and may be finalised or kept provisional pending further information.

B

• BAFBunker Adjustment Factor. A surcharge that passes fuel price movement through to the freight rate, set by the carrier by trade lane and revised periodically. Because it moves separately from the base rate, a rate comparison that ignores it is not a comparison.
• Bank guaranteeAn undertaking from a bank to pay a stated sum if the principal fails to meet an obligation. Customs and DGFT schemes may require one alongside a bond, with the amount and any exemption based on the applicant’s category and track record. Confirm the current requirement before budgeting.
• BerthThe position at a quay where a vessel ties up to work cargo. Berth availability, not sea passage, is often what decides an arrival date, and a vessel that misses its berthing window may wait at anchorage.
• Bill of entryThe customs declaration filed for imported goods, setting out the classification, value, origin and duty claimed. Its type depends on whether the goods are cleared for home consumption, warehoused, or removed ex-bond. Assessment and duty payment follow from it.
• Bill of lading (B/L)The carrier’s document acknowledging receipt of cargo. It is a receipt, evidence of the contract of carriage, and — when issued as an original negotiable set — a document of title. Whoever holds the original controls the cargo.
• Blank sailingA scheduled sailing that the carrier cancels, usually to manage capacity or to recover a delayed rotation. Cargo booked on it rolls to a later vessel, which extends transit and can trigger storage at the port of loading.
• Bond (customs)A legal undertaking given to customs to secure a conditional obligation — to export within a period, to account for warehoused goods, or to produce a document later. It may need to be backed by a bank guarantee. Amounts and conditions are set case by case; confirm what applies to your scheme.
• Bonded warehouseA customs-licensed facility where imported goods can be stored before duty is paid. Duty falls due when the goods are cleared for home consumption, not when they arrive.
• BookingThe confirmed reservation of space on a named vessel and voyage. A rate quotation is not a booking, and space is not held by a rate.
• BreakbulkCargo carried loose in the ship’s hold rather than in containers — bagged, baled, crated, drummed or as individual pieces. It is handled piece by piece, priced on weight or measurement, and needs stowage planning and a survey that containerised cargo does not.

C

• CAFCurrency Adjustment Factor. A surcharge applied to compensate for exchange rate movement between the currency the rate is quoted in and the carrier’s cost currency. Usually expressed as a percentage of the base freight and revised periodically.
• CAROTARThe Indian rules governing how an importer claiming a preferential duty rate under a trade agreement must hold and produce origin information. The importer carries the burden of proving origin, not merely of presenting a certificate, and customs may seek supporting evidence. Confirm the current requirements before claiming preference.
• CarrierThe party that actually performs the carriage and issues the transport document in its own name — a shipping line, an airline, a railway or a road haulier. Liability for loss or damage during the leg sits with the carrier, subject to the applicable convention limits.
• CBMCubic metre. Length × width × height in metres. The unit that most sea LCL pricing is built on.
• Certificate of originA document certifying where goods were produced. A non-preferential certificate simply states origin; a preferential one, issued on the form a specific trade agreement prescribes, supports a claim for a reduced duty rate. Issuing authorities and formats differ by agreement — confirm which applies before shipping.
• CFRCost and Freight. The seller clears for export and pays freight to the named destination port, but risk passes to the buyer when the goods are loaded on board at origin. The buyer bears insurance and everything from arrival onwards. Sea and inland waterway only.
• CFSContainer Freight Station. Where LCL cargo is consolidated into and deconsolidated out of containers.
• CFS chargesThe handling, storage, documentation and, for LCL, destuffing charges raised by a container freight station. They are set by the CFS operator, vary between stations, and are often billed at destination to the consignee rather than included in the freight quotation. Confirm the current tariff at the specific CFS.
• CHACustoms House Agent, now formally a Customs Broker — licensed to file customs entries on an importer’s or exporter’s behalf.
• Chargeable weightWhichever is greater, actual gross weight or volumetric weight. For air, volume in cm³ divided by 6000. For sea LCL, one cubic metre or one tonne, whichever is more.
• ChassisThe wheeled trailer frame on which a container is hauled by road. Chassis availability is a real constraint at busy terminals and inland points, and a container cannot move out of a terminal without one, whoever owns it.
• CIFCost, Insurance and Freight. As CFR, with the seller additionally buying marine insurance for the buyer’s benefit — at a minimum cover level unless a higher one is agreed. Risk still passes on loading at origin, so the buyer claims on the policy for a loss in transit. Sea and inland waterway only.
• CIPCarriage and Insurance Paid To. The seller contracts and pays carriage to the named destination and buys insurance, but risk passes when the goods are handed to the first carrier. Usable for any mode. The insurance cover required under CIP is higher than under CIF.
• Commercial invoiceThe seller’s bill to the buyer, and the document customs assesses value from. It must state the parties, the goods, quantities, unit and total price, currency, Incoterm and place, and the country of origin. Discrepancies between it and the packing list or bill of lading are a common cause of hold-ups.
• Congestion surchargeA charge imposed by a carrier when a port or terminal is working slowly enough to cost the vessel time. It is applied to a named port for a period, announced in advance and withdrawn when conditions ease — confirm whether one is in force on your routing at the time of booking.
• ConsigneeThe party named on the transport document as the one entitled to take delivery. On a negotiable bill of lading consigned to order, entitlement follows the endorsed original rather than the name alone.
• ConsolidationCombining several shippers’ or several suppliers’ consignments into one container or one air shipment so each pays a share of a full-load cost. It buys a lower unit rate at the cost of waiting for the consolidation to close and one extra handling at each end.
• ConsolidatorAn operator that buys container or aircraft space in bulk and sells it in smaller lots, issuing its own house documents to each shipper and one master document to the carrier. Most LCL and much air groupage moves this way.
• CPTCarriage Paid To. The seller contracts and pays carriage to the named destination, but risk passes to the buyer when the goods are handed to the first carrier at origin — not on arrival. Usable for any mode, including containerised sea freight.
• Customs brokerA licensed intermediary authorised to file customs declarations and transact clearance business on an importer’s or exporter’s behalf. The licence carries obligations on client verification, record keeping and the accuracy of what is filed. In India the older term is Customs House Agent.
• Cut-offThe latest time a container or document will be accepted for a named sailing or flight — separate deadlines usually apply to gate-in, VGM, documentation and advance manifest filing. Missing the earliest of them rolls the cargo. Cut-offs move with schedule changes, so confirm them against the live booking.

D

• Dangerous goods declarationThe shipper’s signed declaration that hazardous cargo is classified, packed, marked, labelled and documented to the applicable rules — IMDG for sea, the IATA Dangerous Goods Regulations for air. It names the UN number, proper shipping name, class, packing group and quantity, and the shipper remains responsible for its accuracy.
• DAPDelivered At Place. The seller carries cost and risk to the named destination and places the goods at the buyer’s disposal on the arriving vehicle, ready for unloading. Import clearance and import duties are the buyer’s. Unloading is the buyer’s too.
• DDPDelivered Duty Paid. The seller bears cost and risk to the named destination and also clears the goods for import and pays import duties and taxes. It is the maximum obligation on the seller, and is difficult where the seller cannot practically act as importer of record in the destination country.
• Delivery orderThe instruction issued at destination — by the carrier or its agent against surrender of the bill of lading, or by the forwarder against its house bill — authorising the terminal or CFS to release the cargo to the named party. Nothing moves out without it.
• DemurrageCharged by the carrier for a container left inside the terminal beyond its free days.
• DestuffingUnloading cargo from a container, typically at a CFS for LCL consignments or where a container cannot be hauled full to the consignee’s premises. It adds handling, a charge and an opportunity for damage, and it is where shortage and damage are first recorded.
• DetentionCharged by the carrier for a container held outside the terminal beyond its free days. Demurrage and detention are two different clocks and are frequently confused.
• DGFTThe Directorate General of Foreign Trade, the Indian authority that issues the Foreign Trade Policy, grants the Importer Exporter Code, administers export promotion schemes and licenses restricted items. Policy conditions change by notification — confirm the current position rather than relying on a previous shipment.
• Direct port delivery (DPD)An import facility under which an approved importer takes its containers straight from the port terminal to its own premises instead of routing them through a CFS. It removes a handling and its charges, but the importer must clear and collect quickly or terminal storage builds. Eligibility conditions are set by customs and the port — confirm the current criteria.
• Direct port entry (DPE)The export counterpart of DPD: factory-stuffed and sealed export containers move straight into the port terminal without going through a CFS, subject to approval and to the container being self-sealed and declared correctly. It saves a handling and a day, provided the documentation is right first time.
• DO chargesDelivery order charges — the fee the carrier, its agent or the forwarder raises at destination for issuing the release against the transport document. Levied per bill of lading, set locally, and separate from terminal handling. Confirm the current amount at the destination office.
• DPUDelivered at Place Unloaded. The only Incoterm under which the seller must unload the goods at the named destination. Cost and risk pass to the buyer once unloading is complete; import clearance and import duties remain the buyer’s.
• Draft (vessel)The depth of water a vessel needs, measured from waterline to keel. A port’s available draft, and any tidal window, limits which vessels can call and how deeply they can be loaded — which is why some cargo must move via a deeper gateway port and a feeder.
• DrawbackRefund of customs duty paid on inputs that are subsequently exported.
• DrayageShort-haul road movement of a container between a terminal, a CFS, a rail ramp and a shipper’s or consignee’s premises. It is priced separately from line haul and is where free-time clocks are usually lost.
• Dry portAn inland terminal connected to a seaport by rail or road, handling containers and often offering customs clearance, so cargo can be cleared inland instead of at the coast. ICD is the Indian term for one.

E

• e-BRCElectronic Bank Realisation Certificate. The bank’s electronic confirmation, uploaded to the DGFT system, that export proceeds have been received. It evidences realisation for export incentive claims and for closing an export obligation, so a missing e-BRC blocks a benefit even when the goods shipped correctly.
• ENSEntry Summary Declaration. The advance cargo data filing required for shipments entering the European Union, submitted before loading at the port of origin under a fixed deadline. Carriers charge for the filing. Incorrect or late data can result in a no-load — confirm the current deadline with the line.
• EPCGExport Promotion Capital Goods. A DGFT scheme permitting import of capital goods at concessional or nil duty against an obligation to export a multiple of the duty saved within a set period. The multiple, the period and the conditions are policy-set and revised — confirm the current terms before committing.
• ExaminationPhysical inspection of goods by customs to verify that they match the declaration — description, quantity, marks, and sometimes samples drawn for test. Whether a consignment is examined, and how deeply, is usually decided by risk management rather than at random.
• EXWEx Works. The seller makes the goods available at its own premises and does nothing else — it does not load and does not clear for export. The buyer bears every cost and risk from that point, including export formalities, which is why EXW is awkward where the buyer cannot file in the seller’s country.

F

• FASFree Alongside Ship. The seller delivers by placing the goods alongside the named vessel at the port of shipment, cleared for export; risk and cost pass to the buyer there. Used mainly for bulk and breakbulk, rarely sensible for containers.
• FCAFree Carrier. The seller delivers the goods, cleared for export, to the carrier the buyer has nominated at a named place — either loaded onto the collecting vehicle at the seller’s premises or at the buyer’s disposal on the arriving vehicle elsewhere. The correct Incoterm for most containerised trade.
• FCLFull Container Load. One shipper’s cargo filling a container booked end to end.
• Feeder vesselA smaller ship that moves containers between a main line port and the regional ports the deep-sea services do not call at. It adds a transhipment and days to the transit, and a missed connection at the hub is a common source of delay.
• First checkA clearance route in which customs examines the goods before assessment, used where the declaration cannot be assessed on documents alone — an uncertain description, a doubtful classification or a first-time import. It is slower than assessment on documents but avoids an amendment afterwards.
• Flat rackA container with a base and two end walls but no sides or roof, for cargo too wide or too heavy for a closed box. The cargo must be lashed and, where it exceeds the frame, is charged for the slots it blocks as well as its own.
• FlexitankA large single-use bladder fitted inside a standard dry container to carry non-hazardous bulk liquids. It saves the cost of a tank container on one-way trades but the carrier, the product and the fitting must all be approved beforehand — confirm acceptance before booking.
• FOBFree On Board. The seller clears for export and delivers by placing the goods on board the vessel at the named port of shipment; risk and cost pass to the buyer at that point. Defined for sea and inland waterway carriage; for containers handed over at a terminal, FCA describes what actually happens.
• Free daysThe days a container may sit before demurrage or detention begins. Negotiable at booking, expensive afterwards.
• Freight forwarderThe party that arranges carriage rather than performing it — booking space, consolidating, documenting, arranging customs clearance, insurance and inland movement. It may act as agent for the shipper or contract as principal and issue its own house document, and the two positions carry different liability.
• Freight prepaid and freight collectPrepaid means freight is payable by the shipper at origin; collect means it is payable by the consignee at destination, usually before release. Which applies follows from the Incoterm, and the transport document must be marked accordingly — a mismatch stalls the release.
• FTWZFree Trade Warehousing Zone. A category of Indian special zone for warehousing and trading of imported and export cargo, where goods can be held and handled before duty is paid on clearance into the domestic market. Operating conditions and tax treatment are policy-driven — confirm the current position.
• Fumigation certificateA certificate that a consignment or its wooden packing has been treated against pests with a named fumigant, at a stated dosage, duration and temperature. The accepted standard is set by the destination and changes — a treatment done to the wrong specification is usually redone at destination at the importer’s cost.

G

• Gate-inThe moment a container physically enters the terminal or CFS and is recorded against a booking. It is one of the cut-offs a sailing depends on, and it is the point from which some storage and free-time clocks run.
• Gateway portThe major port through which cargo from an inland region enters or leaves the sea leg, and where deep-sea services call. Cargo from an ICD is railed to its gateway port, and the choice of gateway often affects total cost more than the freight rate itself.
• GRIGeneral Rate Increase. An across-the-board increase a carrier applies to base rates on a trade lane from an announced date, typically when demand is expected to tighten. It can be withdrawn or reduced before it takes effect, so confirm the rate applying to your actual sailing.
• GroupageConsolidation of small consignments from different shippers into one container or air shipment. In practice the word is used interchangeably with LCL for sea and with consolidation for air.

H

• Heavy liftCargo too heavy to be handled by ordinary terminal equipment, requiring a specific crane, a vessel with suitable gear, or a load-out plan. Lifting points, the centre of gravity and the certified weight must be established before booking, not on the quay.
• High cubeA container built taller than the standard height, giving extra internal volume for the same floor area. Useful for light bulky cargo, but the extra height can create road and rail clearance problems on some routes and at some destinations — confirm before booking.
• House air waybill (HAWB)The air waybill a consolidator or forwarder issues to its own customer for one consignment inside a consolidation. The consolidation as a whole travels on a single master air waybill; the house document governs the relationship between the forwarder and the shipper.
• House bill of ladingA bill issued by a freight forwarder to its customer, sitting beneath the carrier’s master bill.
• HS codeThe Harmonised System commodity classification. Six digits are international; countries add their own further digits. The code decides duty, restrictions and often which agency must certify the shipment.

I

• ICDInland Container Depot. A customs station away from the coast where containers are stuffed, destuffed, cleared and railed to and from a gateway port. Clearing inland moves the formalities closer to the factory but adds a rail leg and its own free-time clock.
• ICEGATEThe Indian customs electronic gateway — the portal through which bills of entry, shipping bills and related declarations are filed and duty is paid, and through which customs communicates status. Registration is a prerequisite for electronic filing.
• IECImporter Exporter Code. The identifier issued by DGFT that a business must hold to import into or export from India. It is tied to the entity’s PAN and its details must match those on the bank and customs records, or filings are rejected.
• IGST on importsImported goods attract integrated GST, charged on a value that includes assessable value and customs duties, and payable at clearance. The rate depends on the classification, and credit availability depends on the importer’s status and use of the goods. Rates and rules change — confirm the current position for your HS code.
• IMDGInternational Maritime Dangerous Goods code. Governs the classification, packing, marking and stowage of hazardous cargo at sea.
• IncotermsICC rules defining where the seller’s responsibility ends and the buyer’s begins. Incoterms 2020 is the current edition. They do not transfer title and they are not a payment term.
• ISO tankA cylindrical tank mounted in a container frame for bulk liquids, including many hazardous ones. Acceptance depends on the product, the tank’s certification and cleaning history, and the carrier’s approval for that UN number on that service.
• ISPM-15The international standard for treating solid wood packaging — pallets, crates, dunnage — by heat treatment or fumigation, evidenced by a stamped mark on the wood itself. Most countries require it; untreated or unmarked wood can have a whole consignment refused or re-packed at destination.
• ISPS chargeA security charge arising from the International Ship and Port Facility Security code, levied per container or per shipment by carriers and terminals to cover port and vessel security measures. Set locally and revised — confirm the current amount at the port concerned.

L

• LashingSecuring cargo inside a container or on a flat rack or vessel with straps, chains, blocking and dunnage so it cannot shift in transit. An inadequately lashed load is the most common preventable cause of damage, and a claim usually turns on whether the securing was specified and evidenced.
• LaytimeThe time allowed under a charter party for loading or discharging a vessel. If it is exceeded the charterer owes demurrage to the shipowner; if the work finishes early, despatch may be payable the other way. A charter-party concept, distinct from container demurrage.
• LCLLess than Container Load. Cargo consolidated with other shippers’ goods into a shared container.
• Lead timeThe total elapsed time from placing an order to having the goods available at destination — production, documentation, inland movement, clearance at both ends and the main carriage. Transit time is only one part of it, and the parts outside transit are usually the ones that vary.
• Let export orderThe customs authorisation, issued after assessment and any examination, that permits goods to be loaded for export.
• Letter of creditA bank’s undertaking to pay the seller against presentation of documents that comply exactly with the credit’s terms. Banks deal in documents, not in goods: a shipment that arrives perfectly still goes unpaid if the documents differ from what the credit demands, so check the terms before shipping, not after.
• Letter of indemnityA written undertaking, sometimes backed by a bank, given to a carrier to hold it harmless for acting outside the strict terms of the transport document — most often releasing cargo without an original bill of lading. It shifts risk by contract and does not make the underlying act regular.

M

• Main line vesselThe deep-sea ship operating the long-haul leg of a service between major ports, as distinct from a feeder serving smaller ports. The main line vessel’s rotation fixes the sailing schedule that feeder connections must meet.
• Master air waybill (MAWB)The air waybill issued by the airline to the consolidator for a whole consolidation. Individual consignments inside it travel on house air waybills. The airline’s contract is with the holder of the master, not with the underlying shippers.
• Master bill of ladingThe bill issued by the ocean carrier to the freight forwarder.
• Mate’s receiptA receipt signed on behalf of the vessel acknowledging that cargo has been taken on board, and recording its apparent condition. It is exchanged for the bill of lading. Any remark on it about condition or shortage will normally carry through and make the bill claused.
• MOOWRManufacture and Other Operations in Warehouse — an Indian scheme allowing manufacturing in a bonded warehouse, with duty on imported inputs deferred and waived to the extent the output is exported. Conditions, record-keeping and approvals are prescribed and revised; confirm the current requirements before setting up.
• MSDS / SDSMaterial or Safety Data Sheet. Required for hazardous cargo and often requested by carriers for chemical shipments that are not formally classified as dangerous.

N

• Notify partyThe party the carrier notifies of arrival. It is often the consignee, a customs broker or the buyer’s bank, and naming it does not give it any right to the cargo — delivery still follows the consignee field and, on a negotiable bill, the original document.
• NVOCCNon-Vessel Operating Common Carrier. An operator that contracts as a carrier and issues its own bills of lading while buying space from the vessel operators. To the shipper it is the carrier; to the shipping line it is the shipper.

O

• ODCOver-Dimensional Cargo. A consignment exceeding the normal road or rail limits for width, height or length, requiring route surveys and state permits. Permits, not equipment, are usually the critical path, so the permit clock should start at quotation rather than at booking.
• Open top containerA container with a removable tarpaulin roof instead of a fixed one, so cargo can be craned in from above or can project above the top rails. Cargo projecting above the frame is charged extra and needs the carrier’s approval and a securing plan.
• Out of chargeThe final customs order on an import consignment, given after assessment, duty payment and any examination, permitting the goods to leave customs control. The delivery order and gate-out follow from it. It is the import counterpart of the let export order.

P

• Packing listThe document itemising what is in each package — contents, quantities, net and gross weights, and dimensions or volume, package by package. Customs examines against it and the carrier prices against its dimensions, so guessed carton sizes cost money twice.
• PayloadThe maximum weight of cargo a container or vehicle may carry, being its permitted gross weight less its tare. The binding limit is often not the container’s rating but the road or axle limit on the weakest leg, and the Indian and destination limits are rarely the same.
• Phytosanitary certificateAn official certificate from the exporting country’s plant protection authority that a consignment of plants or plant products has been inspected and meets the importing country’s requirements. Requirements and the wording of any additional declaration change with the destination’s pest risk assessment — confirm the current requirement before the certificate is issued.
• Project cargoA consignment of plant, machinery or structures moved as an engineered exercise rather than as a booking — typically over-dimensional or heavy, multimodal, and phased to a construction programme. Route surveys, permits, lifting plans and marine warranty approvals sit on the critical path.
• Provisional assessmentAssessment of duty on a provisional basis where the final value, classification or entitlement cannot yet be determined — pending a test report, a valuation enquiry or a licence. The goods can be cleared against a bond and security, with the duty finalised later and the difference settled either way.
• PSSPeak Season Surcharge. A temporary uplift carriers apply on a trade lane during periods of high demand, announced for a stated period and withdrawn afterwards. Whether it applies depends on the sailing date rather than the booking date — confirm what is in force for your vessel.
• Pure agentIn Indian GST, a supplier who incurs an expense on a recipient’s behalf on the recipient’s authority and recovers it at actual cost, separately on the invoice. Where the prescribed conditions are met, that recovery is excluded from the value of the agent’s own supply. Conditions are precise — confirm the current position.

R

• Reefer containerA refrigerated container with its own powered unit, carrying cargo at a set temperature and, for some products, controlled ventilation or atmosphere. It needs power at every stage, including at the terminal and on the road, and the temperature record — not the setpoint — is what settles a claim.
• RMSRisk Management System. The customs system that decides, from the profile of the importer or exporter, the goods and the declaration, whether a consignment is cleared on the declaration alone or selected for assessment, examination or both. A good compliance record improves the facilitation a filer receives.
• RoDTEPRemission of Duties and Taxes on Exported Products — an Indian scheme rebating embedded central, state and local taxes that are not otherwise refunded, credited on export against the declared item. Rates are notified per tariff line, capped, and periodically revised; confirm the current rate and eligibility for your HS code.
• RolloverWhen a container that was booked on a sailing is not loaded and is carried forward to a later vessel — because of overbooking, a blank sailing, a missed cut-off or a documentation problem. It costs transit days and can trigger storage at the port of loading.
• RoRoRoll-on roll-off. Carriage on a vessel with ramps and vehicle decks, where wheeled or tracked cargo is driven aboard rather than lifted. Used for vehicles, plant and machinery that can be rolled, and for cargo on mafi trailers.
• Rules of originThe criteria deciding which country goods originate in for customs purposes — wholly obtained, a change of tariff heading, a value-addition threshold, or a specific process. Preferential agreements each set their own, so the same goods may qualify under one agreement and not another. Verify against the agreement being claimed.

S

• SCOMETSpecial Chemicals, Organisms, Materials, Equipment and Technologies — the Indian control list for dual-use and strategic items, whose export requires authorisation. The list and its conditions are notified and revised, and technology and software can fall within it. Confirm whether an item is listed before quoting a shipment date.
• Seaway billA non-negotiable sea transport document. It evidences the contract and receipt of the goods but is not a document of title, so no original need travel — the carrier releases to the named consignee on identification. Suitable where payment is secured or the parties are related, unsuitable where the goods are to be sold in transit.
• Second checkThe ordinary clearance route in which customs assesses the declaration first and any examination follows before release. Contrast first check, where the goods are examined before assessment.
• SEZSpecial Economic Zone. A demarcated area treated as outside the customs territory for duty purposes, where units import inputs and capital goods without upfront duty against export commitments. Supplies from the domestic area into an SEZ are treated as exports. The rules and tax treatment are statutory and change — confirm the current position.
• ShipperThe party that contracts with the carrier for the carriage and is named as such on the transport document. It is not always the seller or the owner of the goods, and being named shipper carries obligations — accurate declaration, VGM, dangerous goods classification — whoever actually packed the cargo.
• Shipping billThe customs declaration filed for goods being exported from India, stating the classification, value, the scheme or benefit claimed and the port of loading. It is the document against which the let export order is issued, and the reference by which export benefits are later tracked.
• Shipping lineA carrier that owns or operates vessels and sells space on them, publishing schedules and issuing its own bills of lading. Distinguished from an NVOCC, which contracts as a carrier without operating the ship.
• SLIShipper’s Letter of Instruction. The shipper’s written instruction to the forwarder setting out the parties, the goods, the Incoterm, the routing, the document type required and any special handling. It is the basis on which documents are drawn, so an error in it becomes an error on the bill of lading.
• Straight and negotiable bills of ladingA straight bill names a consignee and the goods are released to that party only — it is not transferable. A negotiable bill, consigned to order and endorsed, transfers with the document, so whoever lawfully holds an endorsed original controls the cargo. The choice decides whether goods can be sold in transit.
• StuffingLoading cargo into a container — at the factory, at a CFS or at an ICD. Where it is done decides which customs procedure applies, who seals the container, and who is answerable if the contents do not match the packing list.
• Switch bill of ladingA second set of bills issued to replace the first, typically to change the shipper, the port details or the description in a back-to-back sale so the end buyer does not see the original supplier. Carriers issue them only against surrender of the first set and an indemnity, and the practice carries real legal and fraud risk.

T

• Tare weightThe empty weight of a container or vehicle, marked on the container door. Gross weight less tare gives the cargo weight, and tare varies between boxes of the same size — so the VGM must be worked from the actual box, not a nominal figure.
• Telex releaseAn instruction from the origin office to the destination office, given after the full set of original bills has been surrendered at origin or none was issued, authorising release without an original at destination. It saves couriering documents but removes the control an original set gives the seller.
• TerminalThe part of a port or airport where cargo is handled between the vehicle and the vessel or aircraft — with its own operator, tariff, gate hours and cut-offs, separate from the carrier’s. Terminal charges are billed locally and are not normally inside an ocean or air freight rate.
• THCTerminal Handling Charge. The charge for moving a container between the quay and the terminal stack, raised at origin, at destination, or at both. It is set locally, is quoted separately from freight in most tariffs, and is a frequent source of dispute when a rate was assumed to be all-inclusive.
• Transit timeThe elapsed time for the main carriage between the port or airport of loading and that of discharge, as published by the carrier. It excludes inland movement, clearance and dwell at either end, and a routing with a transhipment carries the risk of a missed connection. Confirm the schedule for the actual vessel.
• TransshipmentMoving cargo from one vessel to another en route. It usually adds transit days and one more handling at which something can go wrong.

V

• VGMVerified Gross Mass. The certified total weight of a packed container, which the shipper is legally required to declare under SOLAS before loading.

W

• War risk surchargeA charge carriers and insurers apply on routings through areas designated as higher risk, reflecting additional insurance and crew costs. It is specific to the area and the period, and can be introduced or withdrawn at short notice — confirm what applies to the routing at the time of booking.