Glossary

ADR (Accord Dangereuse Routiers)

International agreement for road transport of dangerous products (in full: Accord Europeen Relatifau Transport International des Marchandises Dangereuses par Route). For extension, we speak of «ADR product», «ADR transport», «ADR storage», etc. when products belong under the legislation of the ADR agreement .These operations always must be carried out in according to specific regulations. For air transport must be applied the DGR legislation, abbreviation of the English Dangerous Goods, applies.

Excise duty

Indirect Tribute imposed by the State on certain products (alcohol, fuel, etc.). It takes the form of a manufacturing or consumption tax and is paid to the State by the producer or commercialized, which is charged to the selling price of the product. Moreover, the excise duty – as a component of the retail price – is also subject to VAT (tax on the tax!).

Air container (Air Container)

Reusable loading unit, very common in air transport because it simplifies and speeds up the loading of goods in the aircraft. All aircraft of a certain size (above a B737) provide for the loading through containers of both goods and baggage. The containers have various types, depending on the type of aircraft and the layout required by the carrier (see the websites of the individual companies) and are owned by the carrier itself. They can also be transported by road, on vehicles specially equipped with a roller table for loading and unloading. For an example of types of containers (often slightly different from one company to another) see the individual company.

ATP

Vehicles for the transport of perishable goods under controlled temperature (Italy).

AWB (Air Way Bill) or LTA (Air Transport Letter)

Waybill for the carriage of goods by air. AWB is not negotiable.

B2B (Business-to-Business)

E-commerce between two companies (one that buys and one that sells). Opposed to the B2C (from a company to a private) and to the C2C (between two individuals).

CFR (Cost and Freight; also, improperly: CAF, CF, C / F, C & F)

Costs and freight up to … defined port (INCOTERMS 2010). Article by which the seller provides the goods on the ship, cleared for export, in a port agreed with the buyer, which assumes all costs and risks of unloading the ship, customs in import and subsequent transport. Attention: the ownership of the goods passes however to the buyer when the goods are loaded on the ship, even if the transport up to the delivery port is paid by the seller. Furthermore, unless otherwise agreed, the seller is not required to insure the goods. For containers, which are usually delivered to a terminal operator, it is better to use the term CPT. The old words such as CAF, CF, C & F and C / F are better to be avoided.

CIF (Cost, Insurance & Freight)

Cost, insurance and freight up to … defined port (INCOTERMS 2010). Article by which the seller provides the goods on the ship, with freight and insurance paid to the port agreed with the buyer, which assumes all the costs and subsequent risks of unloading the ship, customs and transport. Attention: the risk of loss or damage of the goods passes however to the buyer at the time it is loaded on board the ship – even if the transport to the delivery port is paid by the seller – but this, unless otherwise agreed, is only make minimum insurance coverage (class C of the Cargo Clauses Institute). For containers, which are usually delivered to a terminal operator, it is best to use the term CIP.

CMR (Convention related to the contract of international transport of Marchandises par Route)

By the Geneva agreement for the international transport by road (19/01/1956 implemented in Italy with Law 1621/1960, modified with Prot. Geneva 07/05/1958 enforced in Italy by Law 242/1982). By extension: transport documentation for road transport between countries that have adopted the CMR convention.

COD (Cash On Delivery)

Cash on delivery.

 

Consolidated Shipment

Single shipping (for the carrier) delivered by a shipper to a carrier but made up of several box that have the same destination or at least a shared route. It is described by a single document (B / L or AWB called Master AWB), which usually includes the documents of the single shipments (called House AWB). The use of the consolidated shipments advantageous for the carrier, which has to manage fewer documents, invoices, etc. and for the shipper, who gets better prices because the quantity shipped is higher. The main advantages consist to mix the  heavy goods with others of light goods, so as to reach exactly the weight / volume taxed by the carrier. Often a consolidated shipment consists of an entire maritime or air container.

DAF (Delivered At Frontier)

Delivered on the agreed border (old INCOTERM). Article by which the seller provides the goods, cleared for export, in a border post agreed with the buyer, which assumes all the costs and risks of import clearance, continuation of transport, etc. In the INCOTERMS 2010 the term was canceled: replace it with the appropriate one group D (usually DAP or DAT).

DAP (Delivered at place)

Made in the place of …. defined new place, (INCOTERMS 2010). Article by which the seller makes the goods available – on the tool of transportation but not unloaded – in an agreed place makes the parts (terminal, warehouse, etc.). If the agreed place is different from the seller’s country, the seller assumes the chargers of export customs clearance and practices for the crossing of any third countries. The seller doesnothave the obligation to stipulate an insurance contract for the transport under his responsibility. It is almost identical to the old DDU term.

DAT (Delivered at terminal)

Return to the terminal of …. defined place (new, INCOTERMS 2010). Article by which the seller makes the goods available–unloaded from the toll of transport used – in an agreed terminal (sea, airport, intermodal, etc.). If the agreed place is different from the seller’s country, the seller assumes the burden of export customs clearance and practices for the crossing of any third countries. The seller does not have the obligation to stipulate an insurance contract for the transport under his responsibility.

DDP (Delivery Duty Paid)

Delivered with duty paid at… defined place (INCOTERMS 2010). Article by which the seller provides the goods, already cleared in the country of destination, in an agreed place with the buyer (usually a warehouse of the buyer or his confidence). The seller assumes all costs and risks of transport to the agreed place, must obtain all the licenses and authorizations both in export and import and pay taxes, charges and customs duties in import. VAT (or similar taxes) are also charged to the seller, unless otherwise agreed and explicitly included in the sales contract. Only the unloading of the transport is the responsibility of the buyer

DGR (Dangerous Goods Regulations)

Regulations for the transport of dangerous goods. By extension: product or shipping subject to the DGR regulations.

DGSA (Dangerous Goods Safety Advisor)

Responsible for ADR transport according to directive 96/35 / EC.

Door-to-door

Literally: (service) door (the sender) to the door (of the receiver). Transport in which a single entity assumes the responsibility of carrying out (or having carried out) the entire transport cycle from the sender to the receiver, even with more means of transport

 

EXW (Ex-Works)

Free warehouse in … defined place INCOTERMS 2010). Article by which the seller provides the goods on the ground in his factory (or warehouse) predefined or agreed and the buyer assumes all costs and risks of transport. Along with this he is obliged to give only the commercial invoice and any export documents required by the contract and, where explicitly requested, to provide assistance – at the expense and risk of the buyer – in obtaining the export license or other documents. It is the contract that has got the less commitments for the seller: basically it must ensure that the goods are ready on the date of shipment to the place indicated. (Note: if the contrary is not explicitly specified, the buyer also assumes the cost and risk of the load on the means of transport at the seller’s factory / warehouse).

FCA (Free Carrier)

Free carrier defined … in a defined place (Incoterms 2010). Article by which the seller provides the goods returned to a certain place with a carrier (or a shipper’s warehouse) agreed with the buyer, who assumes all costs and risks of the load and the subsequent transport. (Note: if the delivery point is the seller’s premises, delivery is made at the time the goods were loaded on the means of transport procured by the buyer. In other cases, it is when the goods are made available to the designated carrier from the buyer, on the means of transport of the seller, ready for unloading for which, if the contrary is not explicitly specified, the buyer also assumes the cost and risk of the unloading transport at the agreed carrier.

FCL (Full Container Load)

Full load (of a container), opposed to LCL (partial load).

FCP (Freight Carriage Paid To)

Transport paid up to … Traditional term, which is not recommended for use. Better to use the Incoterms, choosing the one suitable for the case (eg CPT and CIP depending on the insurance conditions or DAF, DES, DEQ, DDU).

FDA (Food and Drug Administration)

US Agency for the control of hygiene and safety of food (as well as medicines, etc.).

FTL (Full Truck Load)

Full load (of vehicle). Opposed to LTL (partial load)

Groupage

This Technique consist in mixing two or more shipments that have the same or similar origin and destination(or at least for a large section of the transport route) in order to form a more manage able load unit (semi-trailer, container sea, air containers, etc.). together in a single transport – On arrival the shipments are separated with the opposite operation (degroupage). The activity is typically carried out by specialized shippers(land and maritime transport sectors); from everyone in air transport. The Groupage is typically used for long distance (ex: Italy- Spain or Italy Russia). In the courier daily life every branches of them have a groupage and degroupage center also for the national side. The Groupage in the sea transport is very infrequent, also for the strong increase of the reduction of the average size for a lot international traffic. The Groupage during the air transport is quite normal(see Consolidation) because the items that occupy exactly one aircraft are very rare.

 

IMO (International Maritime Organization)

Agency for international navigation.

IMDG

Classification of dangerous goods according to the IMDG code which are transported by sea

LCL (Less than Container Load)

Partial load (of a container); contrary to FCL.

Customs warehouse

Storage warehouse in which goods are stored abroad (before customs import operations). It can be on own account or on behalf of third parties. The advantage of this warehouse is the fact of deferring the payment of customs duties (plus any excise duties, plus VAT) at the time the goods are used or released for consumption. The disadvantage is that for each stock picking it is necessary to follow a customs practice for that batch of goods, with the relative costs and times. However, times can be shortened if – as often happens in customs warehouses on behalf of third parties – an internal customs section is associated with the warehouse.

REEFER (Refrigerating or Refrigerated)

Insulated and refrigerated (called mobile or container).

SED (Shipper’s Export Declaration)

Export declaration of the sender.

T & C (Term s& Conditions)

Terms and conditions (of an agreement).

FTZ (Foreign Trade Zone or Free Trade Zone) or Free Zone

A duty-free zone (usually a port and a surrounding area) defined by the government of the State where it is located in which the goods can be unloaded, stored, processed, etc. and re-export without customs duties and very simple procedures. The customs shell only be applied to goods that leave the FTZ to the rest of the country.