Glossary

img-1

For your convenience – a short glossary of terms and abbreviations prevalent in the shipping sector:

 

Portage Fee – Payment made to the port authority for portage works such us vessel unloading or loading of trucks, fork lifting, crane operation etc.

 

The Customs and VAT Department – A department of the Ministry of Finance which is in charge of collecting indirect taxes, duties, VAT, Sales Tax, imports and exports levy as well as in charge of enforcing the imports and exports laws of Israel.

 

Goods Owner – according to Para. 1 of the Customs Ordinance “Goods owner” is: “The owner, the importer, the exporter, the consignee or the agent of the said goods and anyone who benefits or is entitled to benefit from them, or else has control over them or the authority to do with them as he wishes, and anyone pretending to be one of the above, except for a customs clerk executing his duties.”

 

F.T.R.I. – Foreign trade risks insurance

 

Customs Duty Collector – The manager and anybody collecting duties as well as the main administrator fulfilling that role at the time and place and any customs official fulfilling that role in the particular matter.

 

Freightage – Freight fees calculated as a function of the shipping method:

Sea freight – a partial shipment will be calculated by the volume weight ratio of 1:1

Air freight –volume weight ratio 1:6

Inland freight – volume weight ration 1:3

 

Restitution – refund of Import taxes (custom duties and sales tax) on import products used in manufacturing products for export.

The Mercosur Agreement – a free trade and customs union agreement between the South American countries: Brazil, Uruguay, Paraguay, Argentina and Chile.

 

The Imports legality – compliance with the imports law that regulate the terms for goods import, such as: an import license, the Standards Institute certificate, a food imports license and a compulsory marking of the goods in any language.

 

Sales Account – Either the sale or purchase of the goods. The account is used to calculate the import duties.

 

Confiscation – seizure of goods by the director of Customs for non-compliance with Customs regulations and terms.

 

Goods – imports or exports items.

 

Temporary imports – goods which enter the country for a certain period after which they re-exported abroad. In most cases, the temporary imports are cleared through customs in return for a guarantee deposit in the amount of the unpaid taxes until such time that the exports are proven.

 

The Brussels Terminology – a classification of goods based on international terminology (after the European Union capital).

 

Bonded Warehouse – a warehouse under the Customs supervision where goods awaiting import duties payments are stored. Most are privately owned.

 

Sales Tax – an indirect tax imposed mainly on consumer goods. It is imposed at identical rates on the locally produced and imported goods and calculated as a percentage of the wholesale price.

V.A.T. – a tax imposed on the added value of the goods. The V.A.T. taxes the value added at each stage of the goods production and marketing chains. It is imposed on both the imported and the locally produced goods. Some products like fruit and vegetables are exempt.

 

Forwarder – anyone dealing with international shipping. A forwarder is whoever consolidates shipments and dispatches them to their destinations, by sea or air.

 

Customs Agent/Customs BrokerCustoms broker is a person representing importers or exporters vis-à-vis the Customs. Custom agent is a person who is licensed to handle it following passing the appropriate exams and specializing for a certain amount of time.

 

Customs Deposit – an amount equivalent to the taxes and duties amount deposited in the Customs’ account until some action by the importer.

 

(Import) Entry – an official document logical and physical used to release the goods from Customs in return for the payment of taxes and duties. It is, in fact, a Government invoice – a proof of your payment of the import duties paid by the importer.

 

License Clerk – a representative of a customs broker, authorized to work vis-à-vis the customs officials.

 

F.I.O. – Free Import Order.

 

Assessment – in cases of damage to or loss of the goods, it is customary to engage an assessor in order to obtain an independent opinion regarding the reason for the damage and its extent.

Good faith – it is the duty of the insured to reveal to the insurer all the relevant details pertaining to the goods and their shipping route.

Standard Does Not Apply – this is a certificate of the Standards Institute confirming that particular goods do not require certification.

 

Warehousing Certificate – a certificate confirming the storage of the goods in the port warehouses.

 

Tracking Certificate – a certificate confirming the goods location in a port warehouse. This certificate is a confirmation of the warehousing body (The Ports Authority, Mamman or peripheral terminals) on receipt of the goods and their location.

 

Contact