CFR (Cost and Freight)
The seller pays for the carriage of goods to the named destination and clears the goods for export. CFR is only used for sea and inland waterway transportation. The buyer undertakes the risk of loss or damage once the goods are delivered to a carrier.
Source: ICC publication number (No 560)
CIF (Cost, Insurance and Freight)
Apart from the same obligations in CFR, the seller must procure cargo marine insurance against the buyer's risks of goods during the carriage. The seller contracts for insurance and pays the insurance premium.
Source: ICC publication number (No 560)
CIP (Carriage and Insurance Paid To)
Apart from the same obligations in CPT, the seller must procure cargo insurance against the buyer's risks of goods during the carriage. The seller contracts for insurance and pays the insurance premium. CIP is used for any mode of transportation.
Source: ICC publication number (No 560)
CPT (Carriage Paid To)
The seller pays for the carriage of goods to the named destination and clears the goods for export. CPT is used for any mode of transportation. The buyer undertakes the risk of loss or damage once the goods are delivered to the first (or only) carrier.
Source: ICC publication number (No 560)
D/A (Documents Against Acceptance)
It is one of common payment methods for international trade. Exporters, via the remitting bank, instruct the banks (collecting bank via remitting bank) to release the title right and other shipping documents to the importers subject to acceptance of the drafts by the importers. Exporters will face the higher risk. Non-payment risk at maturity of the draft.
D/C (Documentary Credit)
It is one of common payment methods for international trade. D/C is an instrument issued by buyer's bank who undertakes to settle payment to the seller when the seller acts and fulfills all terms and conditions of the credit.
D/P (Documents Against Payment)
Exporters instruct the banks (collecting bank via remitting bank) to release the title right and other shipping documents to the importers subject to payment.
DAF (Delivered at Frontier)
The seller fulfills his obligation to deliver when the goods are made available and cleared for export at the named place at the frontier before the customs border of the adjoining country.
Source: ICC publication number (No 560)
DDP (Delivered Duty Paid)
The seller fulfills his obligation to deliver when the goods are made available at the named place in the country of importation. The seller bears all risks and costs including import duties, taxes, delivery charges and clears for importation. DDP is used for any mode of transportation.
Source: ICC publication number (No 560)
DDU (Delivered Duty Unpaid)
The seller fulfills his obligation to deliver when the goods are made available at the named place in the country of importation. The seller bears the risks and costs in bringing the goods thereto except import duties, taxes and other official charges. It is the buyer who has to bear the costs and risks of carrying out all these custom formalities in connection with import.
Source: ICC publication number (No 560)
DEQ (Delivered Ex Quay)
The seller fulfills his obligation to deliver when the goods are made available to the buyer on the quay at the named port of destination and cleared for importation. The seller bears those risks and costs including duties, taxes and delivery charges and clears the importation.
Source: ICC publication number (No 560)
DES (Delivered Ex Ship)
The seller fulfills his obligation to deliver when the goods are made available to the buyer on board the ship uncleared for import at the named port of destination.
Source: ICC publication number (No 560)
ETA (Estimated Time of Arrival)
The projected date and time a shipment scheduled to arrive at its destination.
ETD (Estimated Time of Departure)
The projected date and time a shipment scheduled to depart.
EU (European Union)
An economic trade region in Europe comprising 27 members, namely Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom
EXW (Ex Works)
The seller makes the goods available to the buyer at the seller's own premises. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination.
Source: ICC publication number (No 560)
FAS (Free Alongside Ship)
The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. Buyer bears all costs and risks of goods from that moment.
Source: ICC publication number (No 560)
FCA (Free Carrier)
The seller fulfills his obligation to deliver when he has handed over the goods and cleared for export to the carrier named by the buyer at the named place. FCA is used for any mode of transportation.
Source: ICC publication number (No 560)
FCL (Full Container Load)
A full container load means a container with goods from one consignor to one consignee.
FOB (Free On Board)
The seller fulfills his obligation to deliver when the goods have passed over the ship's rail and cleared for exports, at the named port of shipment. Buyer bears all costs and risks of goods from that moment.
Source: ICC publication number (No 560)
GSP (Generalised System of Preference)
GSP is a framework under which developed countries give preferential tariff (a reduced or zero rate) treatment to manufactured goods from certain developing countries.
HS (Harmonized System of Classification)
The HS code numbers are designed by the World Customs Organisation (WCO) to serve as a multi-purpose classification suitable for use by customs and statistical authorities, traders, carriers and other concerned with international trade. Since 1 January 1992, Hong Kong has adopted the HS in full for trade declaration purpose.
IATA (International Air Transport Association)
An international organization of airline aims to promote the commercial air traffic.
ICC (International Chamber of Commerce)
ICC is a non-government organisation of thousands of business associations and companies in more than 130 countries. It represents the world business community at international levels, promotes world trade and investment and provides a range of practical services to trade.
INCOTERMS
INCOTERMS stand for international commercial terms, which are a set of uniform rules codifying the interpretation of delivery trade terms defining the rights and obligations of the exporter and importer in an international transaction. Examples include CIF, FOB, FAS, CFR, etc.
Source: ICC publication number (No 560)
IMDG Code (International Maritime Dangerous Goods Code)
Recommendations on the requirements on dangerous goods regulations by the International Maritime Organisation including emergency procedures, guideline for packing dangerous goods, construction and testing of packagings, etc.
L/C (Letter of Credit)
A common name of a documentary credit (D/C).
LCL (Less than Container Load)
A less container load is a container with goods from more than one consignor to more than one consignee.
MT (Mail Transfer)
A bank transfer made by mail, especially airmail, as opposed to a telegraphic or cable transfer.
SITC (Standard International Trade Classification)
The SITC recommended by the United Nations for classifying trade statistics for economic analysis, is also used in trade statistics reports published by the Hong Kong Government.
TEU (Twenty-foot Equivalent Unit)
A unit for calculating the carrying capacity of container vessels. The unit is based on the twenty foot container.
TT (Telegraphic Transfer)
A remittance via the cable or telegraph sent from an instructing bank to the overseas bank. It is usually initiated by the debtor who instructs his banker by debiting his account to make payment to an identified person or firm in international trade.
UCP (Uniform Customs and Practice of Documentary Credits)
Rules of the International Chamber of Commerce (ICC) governing a letter of credit issued in respect of goods shipped.
UNCITRAL (United Nations Commission on International Trade and Law)
UNCITRAL set up by UN Commission to aid in harmonising and unifying international trade law. The Commission focuses on four principal international areas : sale of goods, payments, commercial arbitration and legislation pertaining to shipping.
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