Air Freight Glossary

Ad Valorem A fixed percentage of the value of goods that is used to calculate customs duties and taxes. Air Waybill (AWB) A bill of lading that covers both international and domestic flights transporting cargo to a specified destination. This Document serves as a receipt for the shipper, indicating that the carrier has accepted the cargo and will carry to the airport of destination. AITA International Air Transport Association ANF Arrival notification form Bill of Exchange This is an unconditional order in writing for international shipments, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a sum of money to the bearer. It is the most general method of obtaining payment for goods. CAAC Customs and Allied Affairs Committee CAD Cash Against Documents. Shipping documents sent to a bank at the destination and will only be handed to the consignee only in exchange for the sum due. CAN Customs Assigned Number CCA Connecting Carrier Agreement. A contract between carriers such that line or both operators will transport a said amount of cargo on behalf of the other on the other's Bill of Lading. This is a bridge for cross-traded cargo needing a first or second leg carrier. CO Certificate of Origin CD Customs declaration C & D Collected and delivered CFR Cost and Freight. Same as CIF except that the cost of insurance is covered by the buyer. One of the 13 'C' terms. Chargeable Weight The weight of the shipment used in determining air freight charges. The chargeable weight may be dimensional (Length x width x height divided by 194 for domestic shipments or 166 for international shipments) if greater that the gross weight of the shipment. Charges forward Charges to be paid by the buyer on arrival of the cargo. CIP Carriage and Insurance Paid. Costs of carriage and insurance of the goods, duty unpaid to the named destination. Applies to all modes of transportation. CO Certificate of Origin. A document to prove the place of growth, production or manufacture of goods specified. COD Cash on delivery, customers own delivery. Commercial Invoice A statement of characteristics and value of the goods being shipped. It specifies the transaction between buyer and seller and is used to clear customs in the destination country. Consignee Person to whom goods or cargo is to be delivered by the carrier to the place of destination. This is the receiver. Consignor The sender of the goods or cargo. CRN Customs registered number. C/V Certificate of value C/VO Certificate of value and origin DDP Delivered Duty Paid DDU Delivered Duty Unpaid Declared Value The value of goods declared to the carrier by the shipper for the purposes of determining charges or of establishing the limit of the carrier's liability for loss, damage or delay. Delivery Order Written instructions issued by owner of freight (or authorized agent) directing that the freight be released or shipped to a specified party. DGN Dangerous Goods Note ETA Estimated Time of Arrival ETD Estimated Time of Departure EXW ExWorks. This represents the seller's minimum obligation. This on one of the thirteen incoterms. Freight Forwarder Individual or firm retained by the shipper to handle all arrangements for transportation and documentation of goods. Harmonized System Detailed numeric system used worldwide to classify freight. Hazardous Materials Articles or substances which are capable of posting a significant risk to health, safety, or property when transported by air and which are classified according to the most current editions of the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air and the IATA Dangerous Goods Regulations. Dangerous goods may be transported domestically and internationally by air. IATA International Air Transport Association Incoterms There are 13 Incoterms. They are the standard set of definitions for delivery terms (terms of sale) established by the International Chamber of Commerce. IFF Institute of Freight Forwarders Pallet A wooden frame on which pieces of general cargo is placed so they can be lifted using a forklift truck. Power of Attorney Legal ability or authority given by one individual or firm in specific matters. Shipper The manufacturer of the cargo or the party who contracts to ship the goods as per the bill of lading. Transportation and Exportation Entry (T & E) Document that authorizes in-bond transportation of import freight across the U.S for export to another foreign country. TTC Tariff Trade Code VAT Value Added Tax