1. Glossary
ABSOLUTE FEES: Specific limitations on imports in a given period of quota.
ACCEPTING BANK: Similar to the paying bank, but in this case, it accepts an effect
at maturity instead of paying or committing to the payment.
ADEUDO: Amount to which the liquidation of taxes, interest and fines if any, whose
payment constitutes a demandable obligation.
ADVISING BANK: It is the Bank correspondent of the issuing Bank in the country of
the exporter. It only acquires the commitment to notify the beneficiary of the opening
of the credit.
AD VALOREM: Tariff based on a percentage of the value of the load.
A FLOTE: Means the quantity of a product on board ships and en route to a
designated destination. In transit it has the same meaning, but refers to shipments by
land.
ANTIDUMPING: The manufacturer sells abroad at prices lower than the nationals
doing the dumping.
ATP: International Agreement on the International Carriage of Perishable Goods and
Special Vehicles.
ARANCEL: Tax paid by the importer when introducing products in a market.
BAF: Fuel Adjustment Factor. It influences the freight calculation.
BANK ROLL: Check extended by a bank to another bank payable to a third party.
BENEFICIARY: Person in whose favor the credit is issued and who can demand the
payment to the issuing Bank or the payer once it has fulfilled the conditions stipulated
in the credit.
BACK TO BACK: When the recipient of the credit is not the final supplier of the
goods and the credit received is not transferable, the exporter can ask his Bank to
issue a new documentary credit backed by the first credit received.
2. CONFIRMING BANK: Guarantees payment by the issuing bank. It is used when the
guarantees offered by the issuing Bank are not considered sufficient. It is usually the
telltale bank.
CANCILLERÍA: Ministry of Foreign Affairs.
CARRIER: Carrier
CONSOLIDATED LOAD: Grouping of goods belonging to several consignees,
assembled to be transported in similar containers, provided they are covered by the
same transport document.
CONSIGNER: Natural or legal person in whose name the merchandise is manifested
or acquired by endorsement.
CONSOLIDATED LOAD: Grouping of goods belonging to several consignees
CFR: Incoterm. Cost and Freight.
CIF: Incoterm. Safe cost and freight.
CIP: Incoterm. Freight and insurance paid.
CPT: Incoterm. Freight paid up.
CUSTOMS: Body responsible for the application of customs legislation and control of
the collection of customs duties and other taxes.
COMMON EXTERNAL TARIFF: An early stage in the process of trade integration
between a certain group of countries, for which a uniform tariff protection is
envisaged in favor of the production of these countries, as opposed to the importation
of non-originating products.
CUSTOMS DECLARATION: It is the document presented by the importer for the
clearance of the goods, in order that he may take charge of them.
CUSTOMS CONTROL: A set of measures to ensure compliance with the laws and
regulations that customs are responsible for implementing.
CREDIT DOCUMENTARY IRREVOCABLE: The credit can not be modified or
canceled without the agreement of the issuing bank, confirming bank and the
beneficiary.
CERTIFICATE OF ANALYSIS: Document certifying that the nature, composition,
degree, of the merchandise corresponds to the contracted quality.
3. CERTIFICATE OF DEPOSIT: It is demanded in cases in which the existence of a
previous deposit obliges to have done it before dispatching the merchandise.
CERTIFICATE OF ORIGIN: Document that identifies the goods issued and
expressly states where the goods were manufactured.
CERTIFICATE OF ORIGIN: Document that identifies the goods issued and
expressly states where the goods were manufactured.
CHARTER AGENT: It is the designated by the charterer to obtain space for a freight
as low as possible, and under more favorable conditions for the owner of the cargo.
CUSTOMS VALUE: In order to calculate the Customs duties to be applied, Customs
defines the concept of Customs Value, which is that of the merchandise plus all
expenses that have occurred up to the moment of passing the customs.
CUSTOMS DEPARTMENT: Natural person in charge of customs documentation.
CUSTOMS OR ARANACELARIES RIGHTS: Taxes established in the Customs
Tariff to goods entering customs territory.
CERTIFICATE OF WEIGHT: It is a document in which the weight of the
merchandise is recorded per package.
CUSTOMS CONTROL: A set of measures to ensure compliance with the laws and
regulations that customs are responsible for implementing.
DOCUMENTARY CREDIT: It is an agreement by which a Bank, acting at the
request of a client and in accordance with its instructions, undertakes to make a
payment to a third party.
DOCUMENTARY CREDIT AGAINST ACCEPTANCE: The credit is available
against acceptance of documents and a delayed effect against a Bank designated by
the credit that may be the issuer itself.
DOCUMENT CREDIT AGAINST NEGOTIATION: The credit is available against
presentation of the documents and of an effect, on demand or on time, issuedagainst
the issuing Bank or against the originator of the credit.
DOCUMENTARY CREDIT AGAINST PAYMENT: The beneficiary is paid on
presentation of the documents indicated in the credit. Credit is available without any
effects.
DDP: Incoterm. Delivered with duties paid.
DDU: Incoterm. Delivered without paying duties.
4. DOCUMENTARY CREDIT AGAINST PAYMENT: The beneficiary is paid on
presentation of the documents indicated in the credit.
DECLARATION OF GOODS: Act done in the prescribed manner which indicates
the customs regime to be applied.
DECOMMISSION: Sanction that consists in the definitive deprivation of the property
of the goods.
DAF: Incoterm. Franco Frontera
DOCUMENTARY CREDIT LETTER: A document for which at the request of the
buyer your bank authorizes the exporter to collect on a date specified by a particular
expedition against the submission of precise and detailed documents in accordance
with the terms of the credit.
EQUIVALENT MERCHANDISE: That identical or similar to the one that was
imported and will be subject to replacement.
EXPORT LICENSE: In the countries that are needed, document that grants
permission to export specified goods within a specific time frame.
EXCHANGE RATE: The price of one currency in relation to another.
EXPORT: Customs regime that allows the legal exit of goods and services of national
origin.
FRANCO DEPOSIT: Closed premises, indicated in the national territory already
authorized by the State, in which the goods are considered not to be in customs
territory.
FREE ZONE: A national enclave created by the competent authorities of each State
in order to consider the goods there as if they were not in national territory for the
application of customs duties, restrictions and any other taxes.
FLOATING POLICY: The floating policy discloses the insurance in general terms
and leaves the name of the vessel and other particulars to be specified in subsequent
declarations.
FCL: Full load container.
FOB: Incoterm. Franco on Board.
FORM A GSP CERTIFICATE OF ORIGIN (Generalized Systemof Preferences):
This is an import document. It shows the preferential treatment accorded to
developing countries.
5. FREE CIRCULATION MERCHANDISE: All merchandise that can be freely
disposed of.
FOREIGN MERCHANDISE: That which comes from abroad, whose importation has
not been legally consummated, that placed under suspensive, temporary or
improvement regimes, as well as that produced or manufactured in the country and
which has been nationalized abroad.
FREIGHT: Cost of transportation of merchandise.
GUARANTEE: Obligation that is contracted, to the satisfaction of customs, in order
to ensure the payment of customs duties and other taxes or compliance with other
obligations acquired with it.
GROSS FAILURE: When a damage or sacrifice of the merchandise has been
intentionally and reasonably done with the aim of preserving a ship or other
merchandise.
GATT: General Agreement on Tariffs and Trade.
HEALTH CERTIFICATE: Document certifying that the merchandise has been
examined and is in perfect condition for human consumption.
INSURANCE CERTIFICATE: Document proving that insurance has been
contracted for a specific expedition.
ISSUER BANK: Bank chosen by the importer. Make and make the opening of the
credit.
INSURANCE POLICY: It is the document that collects the conditions in which the
goods are insured. They can be registered or ordered.
INTERNATIONAL CARGO AGENT: Also "Carrier". The one that realizes and
receives shipments, consolidates and desconsolida load and acts like operator of
multimodal transport.
IMPORT: Customs regime that allows the legal entry to consumption of a good or
service of foreign origin.
IMPORT FOR CONSUMPTION: Free disposal of goods nationalized with
compliance with relevant legal provisions.
LIFT: Act by which the customs authorize the interested parties to conditionally or
unconditionally dispose of the goods despachadas. It is unconditional when the debt
has been paid or is guaranteed. In suspensive or temporary regimes, it is always
conditional.
6. IMPORT LICENSE: In the countries that is needed, it is the official authorization
that allows the entry of the goods in the country of the importer.
LOADED ON BOARD: Indicates that the merchandise has been loaded on board.
LEASING: Lease of physical assets, especially capital goods, made by some financial
institutions and which give the option of purchase by capitalizing paid rental fees.
LEGAL ABANDONMENT: Customs legal institution by which, at the expiration of
the terms to request the destination or clearance for consumption or make the
removal of the goods, the customs acquires them in property to proceed with their
adjudication or auction.
MONETARY AREAS: Blocks of countries that use the same currency and that make
the bulk of their international operations in that currency.
MANIFESTO: The loading list of a boat.
MERCHANDISE: Well that can be object of customs regimes, operations and
destinies.
MERCOSUR: Common Market of South America. Since 1991. Brazil, Argentina,
Paraguay and Uruguay.
NATIONAL MERCHANDISE: The one produced or manufactured in the country
with national or nationalized raw materials.
NANDINA: Tariff codification of the countries of the Andean Community.
NON-VALUED POLICY: This is the policy in which the parties have not fixed by
mutual agreement the value at which the goods are insured.
NOTICE OF EXPEDITION: It is the document with which the sender communicates
to the designate indicated in the order of expedition that has been carried out the
shipment of goods.
NEGOTIATING BANK: Purchase an effect to the exporter. Although the payment is
only deferred, the exporter charges in cash.
OTM: Multimodal Transport Operator.
7. PAYING BANK: Generally it is a Bank in the country of the exporter, that receives
the mandate of the issuing Bank to pay or to commit to the payment against
presentation of the required documentation.
PRE-SHIPMENT INSPECTION CERTIFICATE: A certificate indicating that the
goods have been examined and found to be in accordance with a contract or a
proforma.
PROEXPORT: Colombian organization for the promotion of exports.
PROFORMA INVOICE: It is a prefactura delivered by the exporter to the importer,
in order to make known to the importer with exactness the price that will pay for the
goods and the form of payment.
PUERTO FRANCO: It is a territory that enjoys exemptions and subsidies of customs
duties. You can load and unload goods.
QUANTITATIVE QUOTA: When it is prohibited to export or import: a certain
quantity of merchandise, or during a certain time a type of merchandise, or both
prohibitions together.
REVOCABLE DOCUMENTARY CREDIT: Can be canceled or modified by the
issuing Bank at any time and without having to notify the beneficiary.
SOBRESTADIA: The money paid by the exporter for delays in loading, unloading or
occupying space in a port or warehouse beyond a specified period.
SPOT: Counted. It is the change in the purchase of one currency from another.
STYLE: Loading operation that includes the handling of the merchandise to the
means of transport.
TAKEN IN CHARGE: Indicates that the goods have been taken for loading.
TARIFF CONTINGENT: For a period, exports or imports are not taxed by customs
duties.
TEMPORARY IMPORT: Entry into the country for a specified period of goods with
partial or total tax exemption under conditions of being re-exported.
TRADE MARTS: Building dedicated to the permanent exhibition of products
manufactured by companies.
TRANSFERABLE DOCUMENTARY CREDIT: A Transferable Documentary
Credit is issued in favor of a beneficiary who is not the one who produces the
8. merchandise but an intermediary, who has established a contract of sale with a buyer,
but a third party depends on the exporter.
TRANSHIPMENT: The process of transferring cargo from one means of transport to
another.
TRAVEL POLICY: Also called Individual policy, is the one that is issued to cover a
single specific trip.
UN: United Nations.
WTO: World Trade Organization. It replaces the GATT.
