{"id":14673,"date":"2022-09-08T13:35:03","date_gmt":"2022-09-08T20:35:03","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=14673"},"modified":"2024-03-05T06:31:08","modified_gmt":"2024-03-05T14:31:08","slug":"common-international-terms","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/common-international-terms\/","title":{"rendered":"Common International Shipping Terms, Defined"},"content":{"rendered":"

Air Freight\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

Any cargo transported by air is considered air freight. International shipping carriers have different prices for various services, air freight is one of those. Often air freight is the fastest way to transport cargo internationally, but that can come with a steeper price.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Broker<\/span><\/b>\u00a0<\/span><\/p>\n

Shipping brokers are intermediaries between shippers and carriers. They work toward creating favorable contracts and terms between these two parties. Benefits of working with a broker is that they will have the most updated information on policies and regulations to ensure your paperwork, customs documentation and tax preparation are always correct. They may have connections to government agencies, tax experts, and other legal bodies more than an international shipping agency might.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Some brands choose to work with an international shipping broker who knows specific countries where they ship from or ship to, because all countries have different import and export rules and regulations.<\/span>\u00a0<\/span><\/p>\n

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Cargo Insurance<\/span><\/b>\u00a0<\/span><\/p>\n

Also called freight insurance, this is insurance that covers damage due to loading\/unloading, weather conditions, piracy and other potential risks during international shipping. Cargo insurance can be specified for marine or air freight.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

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Certificate of Insurance<\/span><\/b>\u00a0<\/span><\/p>\n

A documentation of cargo insurance that covers the importer\/exporter for any possible damage to the goods while in transit. Reach out to a broker or freight forwarder to arrange the insurance.<\/span>\u00a0<\/span><\/p>\n

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Certificate of Origin (CO)<\/span><\/b>\u00a0<\/span><\/p>\n

A CO is a document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product, its destination, and the country of export.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

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Commercial Invoice (CI)<\/span><\/b>\u00a0<\/span><\/p>\n

A commercial invoice is one of the most common and important documents used in cross-border trade and shipping. Every shipment needs proper international documentation to clear customs and border checks (both export and import checks).\u00a0<\/span>\u00a0<\/span><\/p>\n

Most basically, the information on a CI includes what the products are (classification, also known as HTS code), where they are manufactured (origin), and where they are going (destination). There are basic required items, but some countries may have additional requirements.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Customs\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

Customs is the governmental agency of each country that is responsible for controlling the flow of goods across the country\u2019s borders. The Customs and Border Control entity typically enforces import and export rules and regulations, and collects fees associated with import and export\u2014tariffs, taxes, duties, etc.<\/span>\u00a0<\/span><\/p>\n

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Customs Fees<\/span><\/b>\u00a0<\/span><\/p>\n

The cost of importing or exporting any goods, animals, products, or materials differs from country to country. Whatever the country expects in monetary terms is considered part of the customs fee. These could include <\/span>taxes, duties, tariffs<\/span><\/a>, or other fees.\u00a0<\/span>\u00a0<\/span><\/p>\n

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De Minimis\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

If you are a CPG (consumer packaged goods) brand, or ship lower value goods you may avoid paying duties in certain countries because of a de minimis tax rule which states that if the value of your shipment does not exceed the countries de minimis value, you pay no import fees.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

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DDP (Delivered Duty Paid) \/ DDU (Delivered Duty Unpaid)<\/span><\/b>\u00a0<\/span><\/p>\n

These are both types of duty fees that are paid at customs. The <\/span>difference between DDP and DDU<\/span><\/a> are as follows:\u00a0<\/span>\u00a0<\/span><\/p>\n