Glossary of Terms

GOODS IN TRANSIT - Goods moving between two points.

GUARANTEED FREIGHT - Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier’s control.

HARMONIZED SYSTEM - An international commodity classification system, developed under the auspices of Customs Cooperation Council, adopted by the United States in 1989 and increasingly the most widely accepted import/export classification methodology. Replaces SCHEDULE B export codes and TARIFF SCHEDULE OF THE U.S. import codes.

HAZARDOUS CARGO - Poses hazards to handlers or to other cargoes and, because of this, requires special handling. Often subject to regulatory control.

IMPORT QUOTAS - Absolute limits to the quantity of a product that can be imported into a country during a particular time period.

IN BOND - A term applied to the status of merchandise admitted provisionally to a country without payment of duties, either for storage in a bonded warehouse or for trans-shipment to another point, where duties will eventually be imposed.

INHERENT VICE - A loss caused by the inherent nature of the thing insured and not the result of a casualty or external cause.

INLAND BILL OF LADING - A bill of lading used in transporting goods overland to the exporter’s international carrier.

INTERMODAL TRANSPORTATION - A shipment utilizing more than one mode of transport, i.e., a shipment moving in container by water and then by rail.

IRREVOCABLE LETTER OF CREDIT - A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.

JUST-IN-TIME INVENTORY SYSTEM - An inventory system that keeps production inventory to an absolute minimum.

LCL(Less-than-carload; also, Less-than-containerload) - A shipment that occupies less space than is available in a railcar or cargo-carrying container.