Jan 2, 2021 5:55:00 AM 13 min read

International Shipping Glossary

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What is an API - Application Program Interface?

API (Application Program Interface) is a set of routines, protocols and tools for building software applications. The API specifies how software components should interact and is used when programming graphical user interface components. Source.

What is a CIF - Cost, Insurance and Freight?

CIF (Cost, Insurance and Freight ) is a trade term in which the seller arranges for the carriage of goods by sea to a port of destination and provides the buyer with the documents necessary to obtain the goods from the carrier. Source.

What is DDU - Delivery Duty Unpaid?

Delivery Duty Unpaid (DDU) is an international trade in which the seller is responsible for making a safe delivery of goods to a named destination. The seller pays all transportation expenses and assumes all risks during transportation except for the duty once it arrives to port. Source.

What is an EEI - Electronic Export Information?

EEI (Electronic Export Information) is the information provided by U.S. exporters to electronically declare their international exports. EEI is filed in the AES (Automated Export System) for the Census Bureau to compile U.S. export and trade statistics. Source.

What is the Expert Hub Delivery Solution?

The Expert Hub Delivery Solution is Glopal's cross-border, duty-prepaid delivery solution whereby a merchant delivers customer packages to a “virtual” address in the Export Hub. Packages are inspected, checked for export/import compliance, labeled, dispatched, transported by air, cleared through customs and delivered to the customer.

What is the European Directive?

The European Directive - 95/46/EC of the European Parliament and of the Council of 24 October 1995 is the reference text regarding personal data protection at the European level. This is a regulatory framework that seeks to strike a balance between a high level of protection for the privacy of individuals and the free movement of personal data within the European Union (EU). Source.

What is the Export Hub?

Glopal's logistics warehouse where packages containing products purchased by customers are processed for export shipment. Processing at the Export Hub involves inspection of the contents; verification of product category and determination of value; recording the weight and dimensions of the package and calculation of Volumetric Weight; screening for Prohibited Items and Restricted and Denied Parties; completion of the customs declaration and commercial invoice that accompanies the package; printing of a label addressed to the customer; and dispatched for delivery to the customer.

What is an EOR - Exporter of Record?

The individual or company officially recognized by customs as being involved in the export of a specific shipment of products. Source.

Extranet

A secure web interface enabling Glopal clients to access the details of customer orders (e.g., order ID; product details; customer details; shipping charges; tax and duty; and order status). The Extranet also enables Glopal clients to make and manage return requests and check on any orders that are in an “exception” or “error” status.

What is the FOB - Free on Board?

FOB (Free on Board) is the term used when the seller assumes delivery of goods without charge to the buyer's named destination. Source.

What are HS Codes - Commodity Description and Coding System?

The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature, is an internationally standardized system of names and numbers to classify traded products. Source.

What is Total landed cost?

Total landed cost is the sum of all costs accrued from product creation to the point when it reaches its final destination. This includes product price, transportation, taxes, duties, insurance, customs and more. Source.

What are Prohibited Items?

Prohibited items are products that have been determined to be subject to any export or import restrictions or that cannot be safely or lawfully transported internationally.

Restricted and Denied Parties

Named individuals and entities that have been determined by a governmental entity to be security risks, and therefore, exports are prohibited. The names are detailed in the following lists, which are frequently updated:

  • U.S. Bureau of Industry and Security - Denied Persons List and Entity List
  • U.S. Office of Foreign Assets Control - Special Designated Nations and Blocked Persons List, and so-called “WMD Proliferators List”
  • U.S. Office of Defense Trade Controls - Debarred Parties List
  • U.S. Government Printing Office - Federal Register
  • U.S. Federal Bureau of Investigation - Most Wanted List
  • Public Safety Canada - Listed Terrorist Entities
  • European Union - Consolidated list of persons, groups and entities subject to EU financial sanctions

Source.

What is SaaS - Software as a Service?

SaaS (Software as a Service) is a cloud service that is rented rather than purchased. Instead of buying software and paying for periodic upgrades, SaaS is subscription based, and all upgrades are provided during the term of the subscription. When the subscription period expires, the software is no longer valid. Source.

SafetyLynx

SafetyLinx is a shipment value protection insurance offered by Glopal. When implemented, it will offer certain protection to the customer against loss or damage to products at the Export Hub or in international transit.

What are Surcharges?

The aggregate of (1) any surcharges imposed by logistics and shipping partners including, but not limited to, fuel surcharge, remote area delivery charges, the surcharges for EEI Filing, and for return shipping, and (2) any customs clearance fees or similar charges imposed by any government agency in the destination country.

The International Shipping Calculator

Glopal's proprietary software service used to calculate the total landed cost.

USPPI - US Principal Party in Interest

This is the terminology used in the U.S. to refer to the Exporter of Record or the person who receives the primary benefit or monetary. This person can be:

  • U.S. Seller (wholesaler/distributor) of the merchandise for export.
  • U.S. Manufacturer if selling the merchandise for export.
  • U.S. Order Party - Party who directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the merchandise.
  • Foreign Entity if in the U.S. when items are purchased or obtained for export.

Source.

What is a WMS - Warehouse Management System?

A warehouse management system (WMS) is a software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as tracking inventory levels and stock locations. Source.

Volumetric Weight

The volumetric weight of a shipment is a calculation that reflects the density of a package. It is calculated by multiplying the length, height and width of a package and dividing the result by a volumetric factor. Either the actual weight (also known as dead weight) or the volumetric weight—whichever is higher—is used to calculate the shipping cost.

 

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Daniel Porter

Daniel is an international ecommerce expert at Glopal.

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