Export and Import Terminology M - Z

M

Marking: letters, numbers and other symbols placed on cargo to enable it to be identified more easily.

Marine insurance: warehouse-to-warehouse insurance that covers exporters transporting goods overseas for losses they can't legally recover from the carrier. Despite its name, it covers all transport modes. (See also Credit-risk insurance.)

Movement certificate: required where goods are being exported from the EU to a country covered by EU trade agreements. These certificates ensure preferential rates of duty on an exporter's goods.

MTS (Multilateral Trading System): the processes through which large numbers of countries agree to trade with each other. The World Trade Organisation is part of this system.

N

NCTS: HM Revenue & Customs' (HMRC) computerised transit system, introduced in 2003.

NES: HMRC's export system, introduced in 2002.

O

Open account: a trade arrangement under which goods are shipped by an exporter without guarantee of payment. This is similar to an UK exporter offering credit to a UK customer, with the exporter bearing all the risks of offering credit. Open account payment should only be used if you have an established relationship with the buyer and is typically for exports within the EU.

Open General Import Licence (OGIL): available from the Department of Trade and Industry in UK, this allows the import of most goods from outside the EU without licensing formalities. But some goods require a special licence and are listed in a schedule to OGIL.

Open insurance policy: marine insurance policy that applies to all shipments made by an exporter over a period of time rather than a single shipment. (See Marine insurance.)

P

Payment in advance: an exporter may be able to negotiate these terms for all or part of its shipment. The exporter bears no risks or financing costs. Payment or part-payment in advance is typically used for low-value sales to individuals or new customers.

Pre-shipment inspection (PSI): a few countries require goods and documents to be examined before export by an independent agency. In some countries it's optional but can be requested by the customer. Usually, countries where PSI applies have appointed one dedicated agency to perform the pre-shipment inspection. Normally, your freight forwarder or customer will be able to advise on the necessary arrangements.

Pro forma invoice: invoice provided by an exporter to an import customer before shipping. Typically used when the importer has to organise foreign exchange or get an import licence.

Q
Quota: quantity of a particular type of goods that a country allows to be imported before levying duty or restrictions.

Quotation: offer to sell goods at a stated price and under specified conditions.

R

Reduced rates of duty: some goods can be imported into your country at a nil or reduced rate of customs duty because they originated in a preference country or are from a non-EU country and qualify for a temporary suspension of customs duty.

Re-exports: goods temporarily imported into a country and then exported again. Because they are only imported temporarily, the importer or agent is usually permitted to reclaim some or all of the import duty and VAT paid on the goods.

Usually the importer must comply with special customs control procedures, such as specific warehousing regulations. (See also Inward processing relief).

S

Single Administrative Document (SAD): also known as the C88, this document must be completed for all exports, imports and goods transiting the EU.

SITPRO (formerly The Simpler Trade Procedures Board): public body which aims to help businesses trade more effectively across national borders and cut the red tape associated with international trade.

Standard industrial classification (SIC): standard numerical code used by the UK government to classify products and services.

Standard international trade classification (SITC): standard numerical code system developed by the United Nations to classify commodities used in international trade.

Standard shipping note: document completed by the exporter which tells destination ports and container depots how the goods should be handled. A dangerous goods note must also be sent with hazardous goods.

T

Tariff: customs duties on imports of goods. They give price advantages or parity to similar locally produced goods and raise revenues for the government that levies them.

Tariff quotas: European Union (EU) system to allow the importation of limited amounts of certain goods (sometimes from specified countries) at a rate of duty lower than would otherwise apply.

Terms of delivery: cover the division of responsibility for the costs of an export or import sale and for the risk of loss or damage in transit.

TIR: transports internationaux routiers. International system that allows goods to be packed in a container under customs inspection at point of origin. The container can then pass across all national frontiers without being opened by customs officers.

U

UNCTAD: United Nations Conference on Trade and Development. Main arm of the United Nations General Assembly dealing with trade, investment and development issues.

V

VAT: value added tax - in general terms VAT is payable on all imports at the same rate that would apply to the product or service if supplied in the UK. Many exports are zero-rated for VAT.

There are complex rules surrounding VAT on imports and exports, and UK businesses should seek advice from the HM Revenue & Customs National Advice Service Enquiry Line on Tel 0845 010 9000.

W

World Trade Organisation (WTO): intergovernmental organisation set up in 1995 to negotiate and administer trade agreements, handle trade disputes and monitor national trade policies.

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