Bill of Lading

A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the forwarder on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. Also see: Air Waybill, Inland Bill of Lading, Ocean Bill of Lading, Through Bill of Lading. Bills of Lading are contracts between the owner of the goods and the carrier. There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper’s order bill of lading can be bought, sold, or traded while goods are in transit and is used for letter-of-credit transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.

Biological Agents

Several classes of biological agents have been identified according to their degree of pathogenic hazard, and are unilaterally controlled by the United States. Applications to export certain biological agents are referred to the Department of State and the intelligence community on a case-by-case basis.

Bond System

The Bond System, a part of Customs’ Automated Commercial System, provides information on bond coverage. A Customs bond is a contract between a principal, usually an importer, and a surety that is obtained to insure performance of an obligation imposed by law or regulation. The bond covers potential loss of duties, taxes, and penalties for specific types of transactions. Customs is the contract beneficiary.

Bonded Warehouse

A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed. The U.S. Customs Service authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points.

Booking

An arrangement with a steamship company for the acceptance and carriage of freight.

Brussels Tariff Nomenclature

A once widely used international tariff classification system which preceded the Customs Cooperation Council Nomenclature (CCCN) and the Harmonized System Nomenclature. See: Nomenclature of The Customs Cooperation Council.

Business Executive Enforcement Team

The Business Executive Enforcement Team, BEET, provides a channel for private sector executives to discuss export control enforcement matters with the Bureau of Export Administration.

Buying Agent. See: Purchasing Agent.

C Terms (CFR, CIF, CPT, and CIP)

Seller fulfills the contract in the country of shipment or dispatch. Risk or loss, damage to the goods and additional cost after delivery to the carHer fall upon the Buyer.

Capital Account See: Balance of Payments

Cargo Selectivity System

The Cargo Selectivity System, a part of Customs’ Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments or risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper.

Caribbean Basin Economic Recovery Act

The CBERA affords non-reciprocal tariff preferences to developing countries in the Caribbean Basin area to aid their economic development and to diversify and expand their production and exports. The CBERA applies to merchandise entered, or withdrawn from warehouse for consumption, on or after January 1, 1984. This tariff preference program has no expiration date.

Caribbean Basin Initiative

The CBI is an inter-American program to increase economic aid and trade preferences for twenty- eight states of the Caribbean region. The Caribbean Basin Economic Recovery Act of 1983 provided for twelve years of duty-free treatment of most goods produced in the Caribbean region. The initiative was extended permanently (CBI II), by the Customs and Trade Act of August 1990. The 23 countries include Antigua and Barbuda, the Bahamas, Barbados, Belize, the British Virgin Islands, Costa Rica, Dominica, the Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Honduras, Jamaica, Montserrat, the Netherlands Antilles, Nicaragua, Panama, St. Christopher-Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago. The following countries may be eligible for CBI benefits but have not formally requested designation: Anguilla, Cayman Islands, Surname, and the Turks and Caicos Islands.

Caribbean Common Market

The Caribbean Common Market, CARICOM, is composed of 13 English speaking Caribbean nations. Members include Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent/Grenadines, and Trinidad and Tobago.

Carnet

A Customs document permitting the holder to carry or send sample merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds. SED is required when exporting merchandise under a carnet. The camet number should be written in the “Description” area of the SED as: “merchandise moving under carnet number___________.” Since the Foreign Principle Party in Interest enlists the services of the forwarding agent to expedite the movement of the cargo the forwarding agent will be the U.S. Principle Party in Interest on the SED.

Carriage & Insurance Paid To (Named place of destination)

The Seller has the same obligation as under CPT but with the addition that the Seller has to procure cargo insurance against the Buyer’s risk of loss or damage to the goods during the carriage. The Buyer has the same obligations as under CPT.

Carriage Paid To

Carriage paid to (CPT) and carriage and insurance paid to (CIP) a named place of destination. Appropriate where the Seller is relieved of obligation to provide a bill of lading or other transport document as ownership of the goods. The Seller and Buyer have agreed to replace paper transport document with an equivalent electronic data interchange (EDI) message. Used in place of CFR and CIF, respectively for shipment by modes other than water. The Seller pays the freight for the carriage of the goods to the named destination. Seller also must obtain the export license and pay export taxes and fees. The Buyer assumes the risk of loss and damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier. An organization of independent producers formed to regulate the production, pricing, or marketing practices of its members in order to limit competition and maximize their market power.

Cash Against Documents (C.A.D.)

Payment for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash.

Cash in Advance (C.I.A.)

Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.

Cash With Other (C.W.O.)

Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.

Category Groups

Groupings of controlled products. See: Export Control Classification Number.

Census Interface System

The Census Interface System, a part of Customs’ Automated Commercial System, includes edits and validations provided by the Bureau of the Census to allow for the accurate and timely collection and submission of entry summary data. Census Interface is accomplished through Automated Broker Interface entry summary transmissions.

Certificate of Inspection

A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment. Pre-shipment inspection is a requirement for importation of goods into many developing countries.

Certificate of Manufacture

A document (often notarized) in which a producer of goods certifies that the manufacturing has been completed and the goods are now at the disposal of the buyer.

Certificate of Origin

Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local chamber of commerce. A certificate may be required even though the commercial invoice contains the information.

Certified Trade Fair Program

The Department of Commerce Certified Trade Fair Program is designed to encourage private organizations to recruit new-to-market and new-to-export U.S. firms to exhibit in trade fairs overseas. To receive certification, the organization must demonstrate: (1) the fair is a leading international trade event for an industry and (2) the fair organizer is capable of recruiting U.S. exhibitors and assisting them with freight forwarding, customs clearance, exhibit design and setup, public relations, and overall show promotion. The show organizer must agree to assist new-to-export exhibitors as well as small businesses interested in exporting. In addition to the services the organizer provides, the Department of Commerce will: