Logistics - Supply Chain Glossary, Descartes

Glossary: Logistics and Supply Chain Management. Logistics and Supply Chain Management Glossary of Terms. # A B C D E F G H I J K L M. N O P Q R S T U V W XYZ. 10+2 Rule : “United States Customs and Border Protection (CBP) has announced a new rule, known as the Importer Security Filing (ISF) or more commonly called 10+2; which requires cargo information, for security purposes, to be transmitted to the agency at least 48 hours before goods are loaded onto an ocean vessel for shipment into the U.S. 10+2 is pursuant to section 203 of the SAFE Port Act, and requires importers to provide 10 data elements to CBP, as well as 2 more data elements from the carrier. On January 26, 2010, 10+2 was officially effective and importers are required to comply. If compliance is not met, they can face fines up to $5,000 for each violation. The proposed rule was known to the trade as both the ‘Importer Security Filing proposal’ and the ‘10 + 2 proposal’. The name “10 + 2” is shorthand for the number of advance data elements CBP will collect. The following 10 data elements are required from the importer: Manufacturer (or supplier) name and address Seller (or owner) name and address Buyer (or owner) name and address Ship-to name and address Container stuffing location Consolidator (stuffer) name and address Importer of record number/foreign trade zone applicant identification number Consignee number(s) Country of origin Commodity Harmonized Tariff Schedule number. From the carrier, 2 data elements are required: Vessel stow plan Container status messages”¹ 3rd Party Logistics (3PL) : A company that provides logistics services to customers who outsource part of, or all of, their supply chain management functions (i.e. transportation, warehousing, freight forwarding, distribution, cross docking, packaging, etc.).¹ Accelerated Commercial Release Operations Support System (ACROSS) : “uses advanced electronic technology to streamline the way goods are imported into Canada. With ACROSS, importers and brokers exchange information electronically with the CBSA thereby eliminating the requirement to present paper release packages, subject to certain limitations. By reducing the workload involved in the clearance of low-risk shipments, ACROSS enables goods to be released more efficiently and quickly. Importers spend less time dealing with the CBSA, which gives them more time to focus on their businesses. Further enhancements to ACROSS now give electronic data interchange (EDI) clients the option of transmitting release information that has other government department (OGD) requirements. ACROSS improves the enforcement capabilities of the CBSA by allowing more time to be dedicated to the prevention of illicit goods entering Canada. It also provides a sophisticated method for targeting high-risk shipments.” 4. Accessorial Services/Charges : “Services performed by a shipping line or airline in addition to the normal transportation service. Common accessorial services include advancement of charges, pickup, delivery, C.O.D. service, signature service and storage.”¹ Accounts Payable (AP or A/P) : “An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities.”¹ Accounts Receivable (AR or A/R) : “Money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. Receivables usually come in the form of operating lines of credit and are usually due within a relatively short time period, ranging from a few days to a year.”¹ Ad Valorem Duty : “The phrase ad valorem is Latin for ‘according to value’. Duty or other charges levied on an item on the basis of its value and not on the basis of its quantity, size, weight, or other factor.”¹ Advance Commercial Information (ACI) : [Canada] “The ACI program is about providing CBSA officers with electronic pre-arrival information so that they are equipped with the right information at the right time to identify health, safety and security threats related to commercial goods before the goods arrive in Canada.”⁴ Advance Shipment Notice (ASN) : A document transmitted (by courier, fax, or email) to a consignee in advance of delivery detailing the contents and particulars of a shipment. The particulars may include such items as shipment date, method of transport, carrier, expected date and time of arrival and a full listing of contents.”¹ Air Cargo : “Goods/cargo transported, or to be transported, by an air carrier.”¹ Air Cargo Advance Screening (ACAS) : ACAS was designed to provide U.S. Customs and Border Protection (CBP) with data concerning the parties and commodities involved in air cargo prior to loading on an aircraft at a foreign port . With information about inbound air shipments further back in the supply chain, CBP will be able to better identify high-risk shipments into the United States. In addition, the program will speed the movement of lower-risk shipments while resources can focus on higher-risk shipments for additional screening. Air Carrier : “An organization transporting passengers and/or cargo by aircraft.”¹ Air Freight Forwarder : “A freight forwarder for shipments by air. Air freight forwarders serve a dual role. The air freight forwarders are, to the shipper, an indirect carrier because they receive freight from various shippers under one tariff, usually consolidating the goods into a larger unit, which is then tendered to an airline. To the airlines, the air freight forwarder is a shipper. An air freight forwarder is ordinarily classed as an indirect air carrier; however, many air freight forwarders operate their own aircraft.”¹ Air Waybill (AWB) : “A shipping document used by the airlines for air freight. It is a contract for carriage that includes carrier conditions of carriage including such items as limits of liability and claims procedures. The air waybill also contains shipping instructions to airlines, a description of the commodity and applicable transportation charges. Air waybills are used by many truckers as through documents for coordinated air/truck service.”¹ Alcohol Tobacco and Firearms (ATF) : “ATF is a law enforcement agency in the United States’ Department of Justice that protects our communities from violent criminals, criminal organizations, the illegal use and trafficking of firearms, the illegal use and storage of explosives, acts of arson and bombings, acts of terrorism, and the illegal diversion of alcohol and tobacco products. We partner with communities, industries, law enforcement, and public safety agencies to safeguard the public we serve through information sharing, training, research, and use of technology.” 32 Learn more. Animal & Plant Health Inspection Service: " a multi-faceted Agency with a broad mission area that includes protecting and promoting U.S. agricultural health, regulating genetically engineered organisms, administering the Animal Welfare Act and carrying out wildlife damage management activities. These efforts support the overall mission of USDA, which is to protect and promote food, agriculture, natural resources and related issues." 25. Anti-dumping (AD) : “Anti-dumping occurs when a foreign manufacturer sells goods in the United States less than fair value, causing injury to the U.S. industry. AD cases are company specific; the duty is calculated to bridge the gap back to a fair market value.” 3. Anti-dumping Duties (ADD) : “An Anti-dumping Duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market. To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their national market.” 1 Learn more. Automated Broker Interface (ABI) : “The Automated Broker Interface (ABI) is a component of the U.S. Customs Service's Automated Commercial System that permits qualified participants to electronically file required import data with Customs. ABI is a voluntary program available to brokers, importers, carriers, port authorities, and independent service centers.”³ Automated Clearing House (ACH) : "The primary electronic funds transfer (EFT) system used by agencies to make payments for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments."¹ Automated Commercial Environment (ACE) : “The Automated Commercial Environment (ACE) is the U.S. Customs and Border Protection (CBP) commercial trade processing system designed to automate border processing, to enhance border security and foster our Nation's economic security through lawful international trade and travel. ACE will eventually replace the current import processing system for CBP, the Automated Commercial System (ACS). ACE is part of a multi-year CBP modernization effort that is being deployed in phases. ACE provides a solid technology foundation for all border security initiatives within CBP and will: Allow trade participants access to and management of their trade information via reports Expedite legitimate trade by providing CBP with tools to efficiently process imports/exports and move goods quickly across the border Improve communication, collaboration and compliance efforts between CBP and the trade community Facilitate efficient collection, processing and analysis of commercial import and export data Provide an information-sharing platform for trade data throughout Partner Government Agencies (PGA)”³ Automated Commercial System (ACS) : “is the comprehensive system used by U.S. Customs and Border Protection to track, control, and process all commercial goods imported into the United States. Through the use of Electronic Data Interchange (EDI), ACS facilitates merchandise processing, significantly cuts costs, and reduces paperwork requirements for both Customs and the importing community. Within ACS are several methods for EDI, two of which are the Automated Broker Interface (ABI) and the Automated Manifest System (AMS). Under the “10+2” program, importers submit the Importer Security Filing using ABI or Vessel AMS, systems under ACS, to CBP. The data is immediately sent to the Automated Targeting System (ATS) for targeting purposes, and then returned to ACS for retention.”³ Automated Export System (AES) : “is the system used by U.S. exporters to electronically declare their international exports, known as Electronic Export Information (EEI), to the Census Bureau to help compile U.S. export and trade statistics. This information is also shared with the Bureau of Industry and Security, the Directorate of Defense Trade Controls, and other federal agencies involved in monitoring and validating U.S. exports. Formerly, this declaration was only made on paper on the Shipper's Export Declaration form.”³ Automated Invoice Interface (AII) : "allows invoice data to be transmitted to the U.S. Customs and Border Protection (CBP) Data Center. AII contains five types of records: invoice header input records, invoice line item input records, invoice summary records, an error record and an acknowledgment record."³ Automated Manifest System (AMS) : “The Automated Manifest System (AMS) handles manifest information provided by the carrier (rather than the importer) and notifies the carrier when the merchandise can be transported from the port of entry. AMS interfaces directly with the Cargo Selectivity and In-Bond systems of ACS, and indirectly with ABI. This linkage allows faster identification and release of low risk shipments. AMS speeds the flow of cargo and entry processing that provides participants with electronic authorization of cargo prior to arrival. AMS facilitates the inter-modal movement and delivery of cargo by rail and trucks through the In-bond system. Sea, air and rail carriers, port authorities, service bureaus, freight forwarders, rail carriers, and container freight stations can participate in AMS. AMS reduces reliance on paper documents and speeds the processing of manifest and waybill data. As a result, cargo remains on the dock for less time, participants realize faster tracking, and Customs provides better service to the importing community. Vessel AMS allows participants to transmit manifest data electronically prior to vessel arrival. Customs can then determine in advance whether the merchandise merits examination or immediate release. Upon receiving notification from Customs, the carrier can make decisions on staging cargo and the importer can arrange for examination, release, and distribution of the merchandise. All of this can be accomplished before the merchandise arrives. Vessel AMS allows communication between AMS participants and other government agencies, container freight stations, and non-vessel operating common carriers.”³ Automated Targeting System (ATS) : “The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP) operate the Automated Targeting System (ATS). As a decision support tool, ATS compares traveler, cargo, and conveyance information against law enforcement, intelligence, and other enforcement data using risk-based targeting scenarios and assessments.”³ Automatic On-board Recording Device (AOBRD) : “[Currently Grandfathered] an AOBRD is a device that a motor carrier installed and required its drivers to use before the electronic logging device (ELD) rule compliance date of December 18, 2017. The device must meet the requirements of 49 CFR 395.15. A motor carrier may continue to use grandfathered AOBRDs no later than December 16, 2019. After that, the motor carrier and its drivers must use ELDs.” 24 Learn more. Back Haul : “The load carried by a transport vehicle all or part of the way from its original destination t its original point of departure.”¹ Balanced Scorecard (BSC) : “A performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes. The balanced scorecard attempts to measure and provide feedback to organizations in order to assist in implementing strategies and objectives. This management technique isolates four separate areas that need to be analyzed: (1) learning and growth, (2) business processes, (3) customers, and (4) finance. Data collection is crucial to providing quantitative results, which are interpreted by managers and executives and used to make better long-term decisions.”¹ Barcode : “A barcode is an optical machine-readable representation of data relating to the object to which it is attached. Originally barcodes systematically represented data by varying the widths and spacing of parallel lines, and may be referred to as linear or one-dimensional (1D). Later they evolved into rectangles, dots, hexagons and other geometric patterns in two dimensions (2D). Although 2D systems use a variety of symbols, they are generally referred to as barcodes as well.”¹ Barcode Scanner : “is an electronic device for reading printed barcodes. Like a flatbed scanner, it consists of a light source, a lens and a light sensor translating optical impulses into electrical ones. Additionally, nearly all barcode readers contain decoder circuitry analyzing the barcode's image data provided by the sensor and sending the barcode's content to the scanner's output port.”¹ Batch Optimization : With batch optimization, orders and their associated pick-up/delivery date and times are either known in advance through master routes and/or placed throughout the day in dynamic environments. Typically route planning for the next day is then done by sending all the work in batch to the route optimization system. Batch Processing : “Executing a series of non-interactive jobs all at one time. The term originated in the days when users entered programs on punch cards. They would give a batch of these programmed cards to the system operator, who would feed them into the computer. Batch jobs can be stored up during working hours and then executed during the evening or whenever the computer is idle. Batch processing is particularly useful for operations that require the computer or a peripheral device for an extended period of time. Once a batch job begins, it continues until it is done or until an error occurs. Note that batch processing implies that there is no interaction with the user while the program is being executed.” 1. Bilateral Trade Agreement : “The exchange of goods between two countries. Bilateral trade agreements give preference to certain countries in commercial relationships, facilitating trade and investment between the home country and the foreign country by reducing or eliminating tariffs, import quotas, export restraints and other trade barriers. Bilateral trade agreements can also help minimize trade deficits.”¹ Bill of Lading (BOL) : "A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver."¹ Bonded Carrier : “a) a carrier licensed to transport goods in bond. b) A carrier, licensed by the customs authority of a country to transport imported gods past the customs border of the country to another customs office in the same country where duties and taxes are then paid by the importer.”¹ Bonded Warehouse : “A Customs bonded warehouse is a building, or other secured area, in which imported dutiable merchandise may be stored, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation. Authority for establishing bonded warehouses is set forth in Title 19, United States Code (U.S.C.), section 1555. The regulations covered the operation of bonded warehouses is found at 19 CFR 19. Upon entry of goods into the warehouse, the warehouse proprietor incurs a liability for the merchandise under a warehouse bond. This liability is generally cancelled when the merchandise is: Exported; Withdrawn for supplies to a vessel or aircraft; Destroyed under CBP supervisions; or Withdrawn for consumption within the United States after payment of duty." 3. Booking : “The act of recording arrangements for the movement of goods by vessel.”¹ Booking Number : “The number assigned to a certain space reservation by the carrier or the carrier's agent.” 1. Boxcar : “A boxcar is a railroad car that is enclosed and generally used to carry general freight. Boxcars have side doors of varying size and operation, and some include end doors and adjustable bulkheads to load very large items.” 1. Break Bulk : “A term used to describe goods that must be loaded individually, and not in intermodal containers nor in bulk. Ships that carry this sort of cargo are often called general cargo ships. The term break bulk derives from the phrase breaking bulk—the extraction of a portion of the cargo of a ship or the beginning of the unloading process from the ship's holds. These goods may not be in shipping containers. Break bulk cargo is transported in bags, boxes, crates, drums, or barrels. Unit loads of items secured to a pallet or skid are also used.” 1. Broker : “A company that arranges for the truck transportation of cargo belonging to others, utilizing for-hire carriers to provide the actual truck transportation. However, the Broker does not assume responsibility for the cargo and usually does not take possession of the cargo.” 8. Brokerage : “A business whose main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.” 1. Bundling : “A marketing strategy that involves offering several products for sale as one combined product.” 1. Bureau of Industry & Security (BIS) : “Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.” 6. Business intelligence (BI) : “is a set of theories, methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information for business purposes. BI can handle large amounts of information to help identify and develop new opportunities. Making use of new opportunities and implementing an effective strategy can provide a competitive market advantage and long-term stability. BI technologies provide historical, current and predictive views of business operations. Common functions of business intelligence technologies are reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, textmining, predictive analytics and prescriptive analytics.”¹ Canadian Automated Export Declaration (CAED) : "The CAED application enables exporters or their agents (including service providers) to electronically report their goods directly to the Government of Canada thus eliminating the manual reporting process form (B13A)." ⁴ Canada Border Services Agency (CBSA) : “The Canada Border Services Agency (CBSA) ensures the security and prosperity of Canada by managing the access of people and goods to and from Canada.”⁴ Canadian Food Inspection Agency (CFIA) : "Mitigating risks to food safety is the CFIA's highest priority, and the health and safety of Canadians is the driving force behind the design and development of CFIA programs. The CFIA, in collaboration and partnership with industry, consumers, and federal, provincial and municipal organizations, continues to work towards protecting Canadians from preventable health risks related to food and zoonotic diseases." 23. Cargo : “Goods or produce transported by ship, aircraft, or other intermodal vehicles such as trains, vans or trucks.” 1. Cargo Agents : “An agent appointed by an airline or shipping line to solicit and process international air and ocean freight for shipments. Cargo agents are paid commissions by the airline or shipping line.”¹ Cargo Control Number (CCN) : "identifies both the carrier and shipment to the CBSA at the time of reporting and when release documents are presented. The carrier code is combined with a unique shipment number (chosen by the carrier) to create a cargo control number." 4. Carrier : “A person, business, or organization, that deals in the transport of passengers or goods.” 1. Carrier Liability : “Air and ocean carriers are normally liable for all damage, delay, and loss of cargo except those arising from act of God, act of the shipper, and inherent nature of the goods from acceptance of cargo through its delivery or release. Air carriers are usually liable under Warsaw convention, and ocean carriers under Hague convention.” 1. Certificate of Origin (COO or C/O) : “A document attesting to the country of origin of goods. A certificate of origin is often required by the customs authorities of a country as part of the entry process. A certificate of origin may be required even though the commercial invoice contains the information.”¹ Claim : “A legal demand by a shipper or consignee to a carrier for financial reimbursement for a loss or damage of a shipment.” 1. Coast Guard List of Vessels Prohibited (CGCVP) : “List of Vessels Prohibited from Entering or Operating Within the Navigable Waters of the United States, Pursuant to the Ports and Waterways Safety Act, as Amended by the Countering America's Adversaries Through Sanctions Act.” 33 Learn more. Code of Federal Regulations (CFR) : “is the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. It is divided into 50 titles that represent broad areas subject to Federal regulation.”⁵ Cold Chain : “A temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities which maintain a given temperature range. It is used to help extend and ensure the shelf life of products such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals and pharmaceutical drugs.” 1. Commercial Invoice (C/I or CI) : “A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized Tariff System codes for those goods. A commercial invoice must also include a statement certifying that the invoice is true, and a signature.”¹ Commercial Motor Vehicle (CMV) : "Any self-propelled or towed vehicle used on public highways in interstate commerce to transport passengers or property when: 1) The vehicle has a gross vehicle weight rating or gross combination weight rating of 10,001 or more pounds; or 2) The vehicle is designed to transport more than 15 passengers, including the driver; or 3) The vehicle is used in the transportation of hazardous materials in a quantity requiring placarding under regulations issued by the Secretary of Transportation under the Hazardous Materials Transportation Act." 8. Commodity : “A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers.” 1. Commodity Code : “A system for identifying a given commodity by a number in order to establish its commodity rate in freight transport.”¹ [ See also Harmonized Tariff Schedule ] Common Carrier : “Before January 1, 1996, this was a company that provided for-hire truck transportation to the general public. The services offered and the prices charged were published in a public tariff and these were the only prices the common carrier could charge.” 8. Comprehensive Economic and Trade Agreement (CETA) : "is a trade agreement between the EU and Canada. CETA will benefit European companies by getting rid of 99% of the duties (taxes) they have to pay at Canadian customs. The same will apply to Canadian businesses exporting to the EU. Most customs duties will end as soon as CETA comes into effect. After seven years, all customs duties on industrial products will disappear." 22. Consignee : “The person or firm named in a freight contract to whom goods have been shipped or turned over for care.”¹ Consignment : “The act of consigning, which is placing any material in the hands of another, but retaining ownership until the goods are sold or person is transferred. This may be done for shipping, transfer of goods to auction, or for sale in a store. Consignment goods are sent to the agent for the purpose of sale and the ownership of these goods remains with the sender. The agent sells the goods on behalf of the sender, according to his/her instructions. The sender of goods is known as consignor and the agent is known as the consignee.” 1. Consignor : The individual, company or entity that ships goods, or gives goods to another for care. The consignor is usually the exporter or his agent.”¹ Consolidation : “Cargo shipping method in which a freight forwarder at the port of origin combines several individual consignments to make up a full container load. This arrangement allows the goods to be shipped as containerized-cargo that offers greater security at lower shipping rates. At the port of destination, the consolidated shipment is separated (deconsolidated or ungrouped) back into the original individual consignments for delivery to their respective consignees.” 1. Consumer Protection & Safety Commission (CPSC) : “CPSC is an independent federal regulatory agency formed in 1972 with a mission to protect the public against unreasonable risks of injury or death from consumer products through education, safety standards activities, regulation, and enforcement. We are a small agency with a large mission, and we work to ensure the safety of consumers every day.” 34 Learn more. Container Freight Station (CFS) : “A carrier-designated facility at which (export) less than container load (LCL) cargo is received from consignors for consolidation and loading into containers or at which (import) LCL cargo is unloaded from containers and delivered to consignees.”¹ Continuous Bonds (CB) : "cover multiple transactions. Continuous Bonds are usually 10% of the duties, taxes and fees paid by the importer during the previous 12 months, and are valid until it is canceled either by the importer or the surety." 3. Contract Carrier : “Before January 1, 1996, this was a company that provided for-hire truck transportation to specific, individual shippers based upon private contracts between the carrier and each shipper, stipulating the services offered and the prices charged to each.” 8. Countering America’s Adversaries Through Sanctions Act (CAATSA) : “On August 2, 2017, the President signed into law the “Countering America’s Adversaries Through Sanctions Act” (Public Law 115-44) (CAATSA), which among other things, imposes new sanctions on Iran, Russia, and North Korea.” 28 Learn more. Countervailing duties (CVD) : “Countervailing duties (CVD) cases are established when a foreign government provides assistance and subsidies, such as tax breaks to manufacturers that export goods to the U.S., enabling the manufacturers to sale the goods cheaper than domestic manufacturers. CVD cases are country specific, and the duties are calculated to duplicate the value of the subsidy.” 3 Learn more. Cross docking : “The immediate transfer of cargo from one transport vehicle to another, eliminating the intervening steps of receiving and shipping, thus facilitating the flow of product and reducing costs.”¹ Cube Utilization : “Loading a truck or other transportation vehicle with merchandise in order to fill as much of the horizontal and vertical space as possible.” 1. [U.S.] Customs and Border Protection (CBP) : “is one of the Department of Homeland Security’s largest and most complex components, with a priority mission of keeping terrorists and their weapons out of the U.S. It also has a responsibility for securing the border and facilitating lawful international trade and travel while enforcing hundreds of U.S. laws and regulations, including immigration and drug laws.”³ Customs Bonded Warehouse : “A Customs bonded warehouse is a building or other secured area in which imported dutiable merchandise may be stored, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation.” 3. Customs Broker or Customs House Broker (CHB) : “An individual or firm licensed to represent an importer or exporter in front of customs authorities. A customs broker must ordinarily be authorized to act as such by the local government. The broker files the appropriate paperwork and helps ensure that the goods being imported comply with all applicable regulations. A customs broker is also called a Customs House Broker, especially in the United States.” 1. Customs Brokerage : “A profession that involves the "clearing" of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities and importers and exporters.” 1. Customs Clearance : “The documented permission to pass that a national customs authority grants to imported goods so that they can enter the country or to exported goods so that they can leave the country. The custom clearance is typically given to a shipping agent to prove that all applicable customs duties have been paid and the shipment has been approved.” 1. Customs Declaration : “An oral or written statement attesting to the correctness of description, quantity, value, etc., of merchandise offered for importation into the United States.”¹ Customs Duty : “Is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.” 3. Customs Self Assessment (CSA) Program : [Canada] “is designed for low-risk, pre-approved importers, carriers and registered drivers. To take advantage of the program, CSA-approved importers and carriers must use a registered driver to carry CSA-eligible goods into Canada in the highway mode. The CSA program simplifies many of the import border requirements so that low-risk shipments can be processed more quickly and efficiently at the border, saving businesses time and money.”⁴ Customs-Trade Partnership Against Terrorism (C-TPAT) : “Begun in November 2001, C‐TPAT seeks to safeguard the world's vibrant trade industry from terrorists, maintaining the economic health of the U.S. and its neighbors. The partnership develops and adopts measures that add security but do not have a chilling effect on trade, a difficult balancing act.”³ Learn more. Dangerous Goods : “are solids, liquids, or gases that can harm people, other living organisms, property, or the environment. They are often subject to chemical regulations. Dangerous goods include materials that are radioactive, flammable, explosive, corrosive, oxidizing, asphyxiating, biohazardous, toxic, pathogenic, or allergenic. Also included are physical conditions such as compressed gases and liquids or hot materials, including all goods containing such materials or chemicals, or may have other characteristics that render them hazardous in specific circumstances. (Also referred to as Hazardous Materials)”¹ Dead Heading : “Operating a motor vehicle or vessel without a load of cargo. The term most commonly applies to the trucking industry and refers to either the return trip from delivering a cargo, or driving empty to a location in order to pick up cargo. Dead heading is considered a waste of resources and avoided whenever possible.”¹ Declared Value : “The value of goods declared to the carrier by the shipper for the purposes of determining charges, or of establishing the limit of the carrier’s liability for loss, damage, or delay.”¹ Delivery Appointment : An agreement between two companies whereby goods are scheduled to arrive at a specified time and location. Demurrage : “a) The detention of a freight car or ship by the shipper beyond time permitted (grace period) for loading or unloading; b) The extra charges a shipper pays for detaining a freight car or ship beyond time permitted for loading or unloading.”¹ Denied Parties List (DPL) : “A list of individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited.” 6. [U.S.] Department of Defense (DOD) : ”The Department of Defense provides the military forces needed to deter war, and to protect the security of the United States.”⁷ [U.S.] Department of Homeland Security (DHS) : “Formed in 2002 from the combination of 22 departments and agencies, the Department of Homeland Security works to improve the security of the United States. The Department's work includes customs, border, and immigration enforcement; emergency response to natural and manmade disasters; antiterrorism work; and cybersecurity.”⁷ [U.S.] Department of Transportation (DOT) : “The Department of Transportation is responsible for planning and coordinating federal transportation projects. It also sets safety regulations for all major modes of transportation.”⁷ Dimensional Weight (DimWt) : “A term used in shipping and freight - a billing technique which takes into account the length, width, and height of a package.” 1. Direct-to-Store Delivery (DSD) : “Process of shipping directly from a manufacturer's facility to the customer's store, which enables the distribution center to be bypassed, hopefully reducing cost.” 1. Directorate of Defense Trade Controls (DDTC) : “The U.S. Government views the sale, export, and re-transfer of defense articles and defense services as an integral part of safeguarding U.S. national security and furthering U.S. foreign policy objectives. The Directorate of Defense Trade Controls (DDTC), in accordance with 22 U.S.C. 2778-2780 of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130), is charged with controlling the export and temporary import of defense articles and defense services covered by the United States Munitions List (USML).” 11. Dispatch : “A procedure for assigning workers or vehicles to customers. With vehicle dispatching, clients are matched to vehicles according to the order in which clients called and the proximity of vehicles to each client's pick-up location. With home or commercial service dispatching, customers usually schedule services in advance and the dispatching occurs the morning of the scheduled service. Depending on the type of service, workers are dispatched individually or in teams of two or more. Dispatchers have to coordinate worker availability, skill, travel time and availability of parts. The skills required of a dispatcher are greatly enhanced with the use of computer dispatching software.” 1. Distribution Center (DC) : “Is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process.” 1. Distributor : “A person or company that supplies stores or businesses with goods.” 1. Document Image Functionality (DIF) : "related to the electronic submission of documents as part of the Single Window Initiative." 4. Document Image System (DIS) : "Effective no earlier than April 6, 2012, U.S. Customs and Border Protection will deliver capabilities within the Document Image System (DIS) to CBP, Participating Government Agency (PGA) and Trade users. The DIS will serve as a single automated gateway for the submission of documents and specific data by participating trade partners to CBP and PGAs." 3. Drayage : “The transportation of goods over short distances, often as part of a longer overall move and is typically completed in a single work shift. Some research defines it specifically as "a truck pickup from or delivery to a seaport, border point, inland port, or intermodal terminal with both the trip origin and destination in the same urban area.” 1. Drop Shipment : “A shipment of goods from a manufacturer directly to a dealer or consumer, avoiding shipment to the wholesaler (drop shipper). The wholesaler, however, is compensated for taking the order.”¹ Duty : “(Customs) Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.” 3. Duty Free Zone : “Bounded and bonded area where foreign merchandise is brought in without import duties, for further processing or re-exporting. Import-duty must be paid on these goods if they are released in the local market.” 1. Ecommerce : “Is a type of industry where the selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.” 1. Electronic Consignment Security Declaration (eCSD): "The e-CSD allows operators to exchange and archive security information electronically to warrant that only secure cargo is shipped. This electronic document can also be audited by regulators at any point in the supply-chain and printed from electronic records." 15. Electronic Data Interchange (EDI) : “a) The transfer of structured data, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention; b) The electronic exchange of documents between businesses and organizations, or between businesses and government agencies.”¹ Electronic Data Interchange for Administration, commerce, and Transport (EDIFACT) : “The United Nations' EDI standard.” 1. Electronic Export Information (EEI) : “is the electronic export data filed in the Automated Export System (AES) or AESDirect. This is the electronic data information from an entity exporting from the United States.” 3. Electronic Funds Transfer (EFT) : “Is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.” 1. Electronic Logging Device (ELD) : “An electronic logging device, or ELD is technology that automatically records a driver's driving time and other aspects of the hours-of-service (HOS) records. This allows for easier, more accurate HOS recordkeeping. An ELD monitors a vehicle's engine to capture data on whether the engine is running, whether the vehicle is moving, miles driven, and duration of the engine operation (engine hours). ELD manufacturers must certify that ELDs meet technical standards in the ELD rule.” 24. Electronic On-Board Recorder (EOBR) : “An electronic device attached to a commercial motor vehicle, which is used to record the amount of time a vehicle is being driven. This is similar to the tachograph, and is the American equivalent of the digital tachograph used in Europe.”¹ Environmental Protection Agency (EPA) : “The mission of EPA is to protect human health and the environment. EPA works to ensure that: Americans have clean air, land and water; National efforts to reduce environmental risks are based on the best available scientific information; Federal laws protecting human health and the environment are administered and enforced fairly, effectively and as Congress intended; Environmental stewardship is integral to U.S. policies concerning natural resources, human health, economic growth, energy, transportation, agriculture, industry, and international trade, and these factors are similarly considered in establishing environmental policy; All parts of society--communities, individuals, businesses, and state, local and tribal governments--have access to accurate information sufficient to effectively participate in managing human health and environmental risks; Contaminated lands and toxic sites are cleaned up by potentially responsible parties and revitalized; and Chemicals in the marketplace are reviewed for safety.” 27 Learn more. European Free Trade Association (EFTA) : “An intergovernmental organization set up for the promotion of free trade and economic integration to the benefit of its four Member States: Iceland, Liechtenstein, Norway and Switzerland. The Association manages the EFTA Convention; EFTA’s worldwide network of free trade and partnership agreements, and the European Economic Area (EEA) Agreement.” 9. European Union Sanctions (EUS) : “It is the policy of the European Union to intervene when necessary to prevent conflict or respond to emerging or actual crises. In certain cases, EU intervention can take the form of restrictive measures or 'sanctions'.” 22 Learn more. Export : “A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for trade, exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.” 1. Export Administration Regulations (EAR) : “is an alphanumeric code assigned to articles, technology and software (collectively, "items") by the US Department of Commerce, Bureau of Industry and Security. The classification list is a slightly modified version of the list maintained by the Wassenaar Arrangement, an international regime in which member countries agree to implement export controls for "dual use" items.” 1. Export Control Classification Number (ECCN) : “A key in determining whether an export license is needed from the Department of Commerce is finding out if the item you intend to export has a specific Export Control Classification Number (ECCN). ECCNs are five character alpha-numeric designations used on the Commerce Control List (CCL) to identify dual-use items for export control purposes. An ECCN categorizes items based on the nature of the product, i.e. type of commodity, software, or technology and its respective technical parameters.” 6. Export Control System (ECS) : UK - “is the EU Export Control System for control of indirect exports, such as export consignments that are declared for export at a location in one Member State and subsequently exit the EU via another Member State.” 10 U.S. – “The U.S. Government controls exports of sensitive equipment, software and technology as a means to promote national security interests and foreign policy objectives.” 11 Learn more. Exporter Identification Number : “An identification number given to good exporters in the United States. The identification number is required to be displayed on all shipments and is shown on the Shipper's Export Declaration.” 1. eXtensible Markup Language (XML) : “A flexible markup language for structured electronic documents. XML is based on SGML (standard generalized markup language), an international standard for electronic documents. XML is commonly used by data-exchange services (like blog feeds) to send information between otherwise incompatible systems.”¹ Facilities Information and Resources Management System (FIRMS): “The Facilities Information and Resources Management System (FIRMS) Code represents the location of certain goods. The FIRMS location must be bonded and on file in Automated Manifest System (AMS). The FIRMS Code is assigned to a location when the bond for that location has been filed with Customs and Border Protection (CBP). CBP does provide a list of FIRMS Codes. This information is required on all entries. If you are unable to locate your code, please contact the facility where your goods will be located pending Customs clearance to get that facility's FIRMS Code before you file your entry.” 3 Learn more. Fast and Secure Trade (FAST) : “U.S. Customs program that allows importers on the U.S./Canada border to obtain expedited release for qualifying commercial shipments.” 1. FDA Establishment Identifier (FEI) : "a unique identifier issued by FDA to track inspections of the regulated establishment or facility. FEI numbers are also used to track GDUFA facility fee payments." 30. Fish and Wildlife Service (FWS): “The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. We are both a leader and trusted partner in fish and wildlife conservation, known for our scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service.” 7 Learn more. Food and Drug Administration Warning Letter (FDAWL): “When it is consistent with the public protection responsibilities of the agency and depending on the nature of the violation, it is the Food and Drug Administration's (FDA's) practice to give individuals and firms an opportunity to take voluntary and prompt corrective action before it initiates an enforcement action. Warning Letters are issued to achieve voluntary compliance and to establish prior notice. (Prior notice is discussed in Chapter 10.) The use of Warning Letters and the prior notice policy are based on the expectation that most individuals and firms will voluntarily comply with the law.” 30 Learn more. Food Safety & Inspection Service (FSIS): “USDA's Food Safety and Inspection Service (FSIS) is responsible for ensuring the safety, wholesomeness, and accurate labeling of meat, poultry, and processed egg products. FSIS enforces the Federal Meat Inspection Act (FMIA), the Poultry Products Inspection Act, and the Egg Products Inspection Act, which require Federal inspection and regulation of meat, poultry, and processed egg products prepared for distribution in commerce for use as human food.” 25 Learn more. Foreign Corrupt Practices Act (FCPA): “The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.” 32 Learn more. Foreign Supplier Verification Programs (FSVP): “On November 27, 2015 FDA published the Final Rule on FSVP, a significant provision of the Food Safety Modernization Act (FSMA) signed by President Obama in 2011. FSVP shifts the burden of ensuring the safety of imported food from FDA to the Importers themselves. A FSVP is a program that importers (or their Agents) must have in place to ensure that foreign food suppliers are meeting the food safety standards FDA requires of domestic food manufacturers.” 25 Learn more. Federal Trade Commission (FTC) : “To prevent business practices that are anti-competitive or deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity.”¹³ Food Safety Inspection Service (FSIS) : “is the public health agency in the U.S. Department of Agriculture responsible for ensuring that the nation's commercial supply of meat, poultry, and egg products is safe, wholesome, and correctly labeled and packaged.” 25. Foreign Trade Zone : “Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.” 3. For-Hire Carrier : “A company that provides truck transportation of cargo belonging to others and is paid for doing so. To operate as an interstate for-hire carrier, a company must also register with FMCSA by filing a Form OP-1. There are two types of for-hire carriers, common carriers and contract carriers. A for-hire carrier may be both a common and a contract carrier, but must file separate registrations to obtain both licenses.” 8. Free on Board (FOB) : “Meaning that the buyer pays for transportation of the goods. Specific terms of the agreement can vary widely, in particular which party (buyer or seller) pays for which shipment and loading costs, and/or where responsibility for the goods is transferred. The last distinction is important for determining liability or risk of loss for goods lost or damaged in transit from the seller to the buyer. International shipments typically use "FOB" as defined by the Incoterm standards, where it always stands for ‘Free On Board’.”¹ Free Trade Agreement (FTA): “Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Trade Agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets. In 2015, 47 percent of U.S. goods exports went to FTA partner countries. U.S. merchandise exports to the 20 FTA partners with agreements in force totaled $710 billion. The United States also enjoyed a trade surplus in manufactured goods with our FTA partners totaling $12 billion in 2015.” 6 Learn more. Free Trade Zone (FTZ) : “A free trade zone (FTZ) or export processing zone (EPZ), also called foreign-trade zone, formerly free port, is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade.”¹ Freight Collect : “A term used in the freight moving business that means that the freight will be paid by the person receiving the freight. If you tell the shipper that you will pay the cost when it arrives, then they will ship it ‘freight collect’, meaning the trucking company will need a check payable to them when they deliver your item. If you have an account with a certain trucking company, then you can request that the shipper use that company so that you may be billed. It will still be ‘Freight Collect’, but will be automatically billed to you by the company that you use.” 1. Fulfillment : “It is the term used to describe the complete process used by a company from the point of sale onward to the delivery of a product to a customer.” 1.