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Terminologies
Export Terminology:
- Exporter: Entity selling goods or services to another country.
- Export License: Government authorization for exporting specific goods.
- Export Declaration: Documentation detailing exported goods, value, and destination.
- Export Control: Regulations governing sensitive goods' export for security and compliance.
Import Terminology:
- Importer: Entity buying goods or services from another country.
- Import License: Permit allowing importation of specific goods.
- Import Duty: Tax imposed on imported goods by customs authorities.
- Customs Clearance: Process of verifying and releasing imported goods through customs.
Documentation:
- Commercial Invoice: Seller's document detailing goods sold, value, and terms.
- Bill of Lading (B/L): Carrier's contract of carriage and receipt for goods.
- Certificate of Origin: Document certifying goods' origin country for customs and trade agreements.
- Freight Forwarder: Company specializing in organizing and managing shipments for individuals or corporations.
- Customs Broker: Licensed agent specializing in customs clearance and compliance with import/export regulations.
- Carrier: Company or individual transporting goods via air, sea, road, or rail.
Transportation Types
Air Transportation:
Fastest mode for long distances. Suitable for perishable goods and urgent shipments. Global connectivity.
Sea Transportation:
Cost-effective for large volumes and heavy cargo. Ideal for non-urgent shipments over long distances. Dependent on weather conditions and port congestion.
Road Transportation:
Flexible door-to-door service. Suitable for short to medium distances. Accessible to remote areas.
Rail Transportation:
Cost-effective for long distances over land. Lower emissions compared to road transport. Reliable schedules.
Container Types
Standard 20-foot Dry Containers:
The most used type for general cargo transportation Widely utilized in global trade for its balance of capacity and maneuverability Approximately 20 feet in length, 8 feet in width, and 8.5 feet in height Approximately 33 cubic meters (1,170 cubic feet) of cargo capacity
Standard 40-foot Dry Containers:
Widely used in international shipping for their larger capacity compared to 20-foot containers Suitable for a wide range of cargo types Approximately 40 feet in length, 8 feet in width, and 8.5 feet in height. Approximately 67 cubic meters (2,390 cubic feet) of cargo capacity
Incoterms
Incoterms, short for International Commercial Terms, are a set of standardized terms published by the International Chamber of Commerce (ICC). These terms are widely used in international commercial transactions to define the rights and obligations of buyers and sellers regarding the delivery of goods, transfer of risks, and allocation of costs between parties.
- EXW (Ex Works): The seller makes the goods available at their premises. The buyer is responsible for all costs and risks from that point onwards.
- FCA (Free Carrier): The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at a named place. The buyer is responsible for all subsequent costs and risks.
- CPT (Carriage Paid To): The seller pays for carriage to the named destination. The risk transfers to the buyer upon delivery to the carrier.
- CIP (Carriage and Insurance Paid To): The seller pays for carriage and insurance to the named destination. Risk transfers to the buyer upon delivery to the carrier.
- DAP (Delivered at Place): The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.
- DPU (Delivered at Place Unloaded): The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named place of destination. The seller bears all risks involved in bringing the goods to the named place.
- DDP (Delivered Duty Paid): The seller delivers the goods when they are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.
- FAS (Free Alongside Ship): The seller delivers the goods when they are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.
- FOB (Free on Board): The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.
- CFR (Cost and Freight): The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.
- CIF (Cost, Insurance, and Freight): The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel.
Hazardous Material Codes
Hazmat Placards and UN Numbers: What You Need to Know
Have you ever seen a truck, railcar, container or large tanks at a tank farm and wondered what types of chemicals it was transporting or storing? The answer can be found in its UN numbers and hazmat placards.
What Are UN Numbers
Located on the back or sides of trailers or other containers, UN numbers (or UN IDs) are four-digit numbers ranging from 0004-3534 that identify dangerous goods or hazardous substances — such as explosives, flammable liquids, or toxic substances — in the framework of international transport.
These numbers are assigned by the United Nations (UN) Committee of Experts on the Transport of Dangerous Goods, and must be listed on the Material Safety Data Sheet (MSDS) of each shipment. (Goods that aren’t classified or regulated by the UN are given four-digit North American (NA) numbers ranging from 8000-9279. These numbers are designated by the United States Department of Transportation (DOT).)
What Are Hazmat Placards?
In addition to a UN number, the DOT requires cargo to carry Hazmat placards that help shippers determine its class, division, and compatibility group.
Similar to road or construction signs, these diamond-shaped hazmat placards alert the public that potentially hazardous materials are being hauled, as well as inform emergency responders which chemicals are present in case of an accident. Even if members of the public or first responders are unaware of exactly which materials are on board, the presence of hazmat placards lets them know that they should proceed with caution.
With rare exceptions, companies that transport hazardous materials without the use of DOT hazmat placards are at risk for stiff fines and other penalties.
UN Hazmat Sign Components and Classifications
It’s vital that anyone who works with or around hazardous materials can properly identify the various aspects of each hazmat placard, as well as the various classifications that each one represents.
CLASSIFICATIONS
Hazmat warning placards are broken down into nine different classifications, along with their divisions. Each class number is found at the bottom of the sign, while the division number can be found in the middle.
Class 1 — Explosive Materials
1.1: Products with the potential to create a mass explosion
1.2: Products with the potential to create a projectile hazard
1.3: Products with the potential to create a fire or minor blast
1.4: Products with no significant risk of creating a blast
1.5: Products considered very insensitive that are used as blasting agents
1.6: Products considered extremely insensitive with no risk to create a mass explosion
Class 2 — Gases
2.1: Flammable gases
2.2: Nonflammable gases
2.3: Toxic gases
Class 3 — Flammable and Combustible Liquids
Class 4 — Flammable Materials
4.1: Flammable solids
4.2: Spontaneously combustible
4.3: Dangerous when wet
Class 5 — Oxidizer and Organic Peroxide
5.1: Oxidizing substances
5.2: Organic peroxides
Class 6 — Poisons
6.1: Toxic substances
6.2: Infectious substances
Class 7 — Radioactive Materials
Class 8 — Corrosive Materials
Class 9 — Miscellaneous Materials
COMPONENTS
Each hazmat sign has up to six main parts:
- Hazard classification number — See below.
- UN/NA number — See above.
- Compatibility letters — Some placards include the letters A-S, which let shippers and carriers know which explosive materials can be loaded together onto a trailer.
- Color — Other than classification numbers, hazmat placards are most easily identified by their different colors.
- Orange represents explosive materials, including products like dynamite, ammunition, or fireworks.
- Red represents flammable goods like gasoline, rubbing alcohol, paint, or acetone.
- Green signs signify non-flammable substances like compressed or liquefied gases.
- Yellow indicates the transport of oxidizers — like ammonium nitrate, potassium nitrate, or nitric acid — that are likely to combust when mixed with oxygen.
- White represents poisonous and bio-hazardous substances like dyes, aerosols, acids, and medical waste.
- Blue signifies materials that can become flammable when combined with water, like sodium, calcium, and potassium.
- A half red and white sign indicates the presence of substances that can ignite when exposed to air, like aluminum and lithium alkyls or white phosphorous.
- Red and white stripes indicate flammable solids such as matches and magnesium.
- Red and yellow indicate organic peroxides that can ignite or explode, including methyl ethyl ketone peroxide and benzoyl peroxide.
- Yellow and white represent radioactive substances often found in medical equipment.
- Half white and half black indicates corrosive materials that can irritate and harm the skin, including batteries, hydrochloric acid, sulfuric acid, and sodium hydroxide.
- White with black vertical stripes denote various dangerous goods, including nonclassified, environmentally hazardous substances like asbestos and dry ice.
- Words — Depending on the contents of each container, its hazmat placard is labeled with various terms like “Spontaneously Combustible,” “Explosive,” “Nonflammable Gas,” “Oxygen,” “Poison,” “Flammable,” and others.
- Graphics — Different hazmat placards feature illustrations to reinforce the danger of their contents. For example, placards for toxic materials include an image of a skull and crossbones, while signs for radioactive materials include a radiation symbol consisting of three blades surrounding a small circle.
Rules for Placement
According to federal regulations, each freight container, railcar, transport vehicle, or other vessel carrying hazardous materials must display placards on each side and each end. Regulations also state that placards on railcars and transport vehicles must be clearly visible from the direction they face unless they are obscured when coupled with another railcar or transport vehicle.
In all, carriers must display at least four placards in areas where the view isn’t obstructed. Some carriers add extra signs on each side of the truck cab for additional visibility.
Export Product Codes
Export product codes can vary depending on the country and the specific classification system used.
Here are some common types of export product codes and their descriptions:
Harmonized System (HS) Code:
A globally recognized classification system for goods, organized into chapters and sections.
Please click the link for further information www.wcoomd.org
Schedule B Number (USA):
A globally recognized classification system for goods, organized into chapters and sections.
Please click the link for further information www.wcoomd.org
Customs Tariff Code (EU):
Used for exports from European Union countries, aligned with the Harmonized System.
Please click the link for further information taxation-customs.ec.europa.eu
Commodity Code (UK):
Used for exports from the United Kingdom, based on the UK Trade Tariff.
Please click the link for further information https://www.gov.uk/trade-tariff