Trade Glossary

Always afloat, after arrival

Annual aggregate deductible

American hull form (insurance policy)

Absolute maximum loss

Any one voyage

As per list

Account of

All risks, Against all risks

Average, ad valorem (according to value)

Abandonment

About

Account

Literally: according to value. Any charge, tax, or duty that is applied as a percentage of value.

AVE is the rate of duty which would have been incurred on dutiable imports under that item, if the United States customs value of such imports were based on the United States port of entry value.

A tariff assessed as a percentage of the value of the goods cleared through customs. For example, 10 percent ad valorem means the tariff is 10 percent of the value of the goods.

An affiliate is a business enterprise located in one country which is directly or indirectly owned or controlled by a person of another country to the extent of 10 percent or more of its voting securities for an incorporated business enterprise or equity.

African Export Import Bank

The Agent/Distributor Service (ADS) is an International Trade Administration (ITA) fee service.

Agreement by one government to accept the accreditation of an ambassador from another government.

A type of freight forwarder who specializes in air cargo and acts for airlines that pay him a fee (usually 5%). The Air Cargo Agent is registered with the International Air Transport Association (IATA).

A type of freight forwarder who specializes in air cargo. The Air Freight Forwarder usually consolidates the air shipments of various exporters, charging them for actual weight and deriving his profit by paying the airline the lower consolidated rate.

An AWB is a bill of lading which covers both domestic and international flights transporting goods to a specified destination. Technically, it is a non-negotiable instrument.

Risk Clause

A type of marine insurance providing the broadest kind of standard coverage, excluding damage caused by war, strikes, and riots.

A set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

A legal document issued by a carrier to a shipper that details the type, quantity, and destination of goods being carried. It serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.

An important document certifying the country in which a commodity or good was manufactured. Used in international trade to determine whether goods are eligible for import or subject to specific tariffs.

An Incoterm where the seller pays transportation costs to the port of destination, but the buyer assumes risk once goods are loaded onto the vessel.

An Incoterm where the seller pays for shipping and insurance to deliver goods to the port of destination. Risk transfers to the buyer once goods are loaded.

An official document issued by a seller to a buyer listing the goods sold, quantities, prices, and total amount due. Required for customs clearance.

The process of declaring goods to customs authorities when entering or leaving a country. This involves submitting documentation and paying applicable duties and taxes.

An Incoterm where the seller assumes all responsibilities and costs for delivering goods to the buyer's location, including customs duties and taxes.

A mandatory certificate required in Bangladesh to legally export goods. Issued by the Chief Controller of Imports and Exports (CCI&E).

An Incoterm where the seller makes goods available at their premises, and the buyer assumes all costs and risks from that point.

An Incoterm indicating that the seller delivers goods to a named port and loads them onto a vessel. The buyer assumes all costs and risks from that point forward.

Harmonized System Code - A standardized numerical method of classifying traded products used by customs authorities worldwide to identify products for tax and regulation purposes.

International Commercial Terms - A set of rules published by the International Chamber of Commerce that define the responsibilities of sellers and buyers in international trade.

A certificate required in Bangladesh to legally import goods into the country. Issued by the Chief Controller of Imports and Exports (CCI&E).

A process of verifying the identity of clients and assessing their suitability and potential risks of illegal intentions.

A payment mechanism used in international trade where a bank guarantees payment to a seller on behalf of the buyer, provided the seller meets all the terms and conditions specified in the LC.

A document that provides detailed information about the contents of a shipment, including the quantity, type, dimensions, and weight of each package.

A preliminary invoice sent before goods are delivered, outlining the products, prices, and terms of sale. Used for customs purposes and to secure financing.

A unique number assigned by tax authorities to identify taxpayers for tax administration purposes.

A legal permit issued by local authorities that authorizes a business to operate within a specific jurisdiction.