Glossary - Post.Supply
The terms of international trade, in plain language. Official sources on every term.
Incoterms›
The standard trade terms published by the International Chamber of Commerce that define who is responsible for costs, risk and paperwork at each step of an international shipment.
FOB (Free On Board)›
The seller delivers the goods loaded on the vessel at the agreed origin port. From that point the buyer pays the freight, the insurance and everything after.
CIF (Cost, Insurance and Freight)›
The seller pays the freight and a minimum insurance to the destination port, but the risk passes to the buyer as soon as the goods are loaded on the vessel at origin.
DDP (Delivered Duty Paid)›
The seller takes care of everything: transport, insurance, export and import clearance, duties and taxes, until the goods reach the named place. The buyer only receives.
HTS code›
The Harmonized Tariff Schedule code: the numeric classification every product gets for customs. It decides the duty rate and the statistics a shipment reports.
IVU›
Puerto Rico's sales and use tax (Impuesto sobre Ventas y Uso). The general combined rate is 11.5%: 10.5% state plus 1% municipal. Imports pay it as a use tax on entry.
Demurrage›
The charge for keeping a container inside the port terminal longer than the free time the carrier allows.
Detention (per diem)›
The charge for keeping the carrier's container outside the terminal longer than the free time allowed, until the empty container is returned.
Bill of Lading (B/L)›
The document the carrier issues for a shipment. It is three things at once: a receipt for the goods, the contract of carriage and the document of title.
Landed cost›
The true total cost of a product delivered to its destination: the goods plus freight, insurance, duties, taxes, port charges and fees.
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