Glossary of Terms

Import/Export Terminology Defined

Canadian and Foreign Port Charges

Charges for unloading or storing goods and for dock space before loading on a ship.

Certificate of Origin

A certification of the country where the product was made. In Canada, the Canadian Chamber of Commerce issues certificates of origin except for the purposes of the Free Trade Agreement where the manufacturer must complete a specially developed form.

Commercial Invoice

Prepared by the exporter or the forwarder; the buyer needs this invoice to show ownership and arrange for payment to the exporter.

Consular Invoice

May be required by certain foreign governments that want tighter control over imports. A consular invoice requires approval of that country's consulate in Canada and frequently involves a fee.

Countertrade

A generic term encompassing export transactions where a sale to the purchaser is conditional upon a reciprocal purchase or undertaking by the exporters. Forms of these may include counterpurchase, barter, compensation or off-sets.

Customs Documentation

Special documents required by some countries to identify the origin and/or value of the shipment.

Customs Invoice

Prepared by the exporter or forwarder; this is a copy of the seller's commercial invoice and describes the goods bought. Customs invoices are used for import clearances and, occasionally, vary from commercial invoices.

Dock and Warehouse Receipt

Domestic Bill of Lading needed for contracting with trucking firm or railroad to ship goods from the exporter's loading dock to the port.

Export Declaration

Prepared by exporter or freight forwarder for shipments valued in excess of a specified amount.

Export Licence

May be required for some export shipments, for example, strategic goods.

Export Management Company (EMC)

An independent firm which acts as the exclusive sales department for non-competing manufacturers. There is usually a formal agreement to manage the manufacturer's exports. Some act as an agent for the manufacturer and, in such cases, are paid a commission on the export sales. Others operate on a 'buy-sell' basis, that is, EMCs buy from their manufacturers at a set price and resell to foreign customers.

Financing Charges

Bank fees and interest charges for handling payments or for financing shipments.

Freight Forwarder Charges

Charges for the use of internal freight forwarders.

Import Tariffs

Foreign government taxes levied on goods imported into that country.

Insurance Certificate

Prepared by the exporter and his forwarder to indicate insurance of the goods against loss or damage.

Insurance Costs

Cargo insurance to cover the risk of shipping.

Letters of Credit (L/C)

An arrangement whereby an importer arranges with his bank to transfer the amount of the transaction to a Canadian bank for payment to the exporter. This amount is available to the exporter provided the requirements of the letter of credit are met. When the exporter presents his invoices and shipping documents to the bank he receives immediate payment.

Ocean (or Airway) Bill of Lading

Prepared by the carrier or freight forwarder as a contract between the owner of the goods and the carrier; needed by the buyer to take possession of the goods.

Packing Lists

Prepared by the exporter to show the quantity and type of merchandise shipped.

Trading Houses

Companies specializing in the exporting, importing and third-country trading in goods and services produced by others and provide related export services. They may act on a merchant or agent basis.