Learn The Basics

Terms A…B

Account Payable

When a company or an individual buys goods or services on credit, they create a short-term debt payment that needs to be paid within a limited period of time. This is considered a current liability because the creditor it’s not paid upfront.

Accounts Receivable

Accounts receivable is the payment due to a company for goods or services delivered or used by its customer but yet to be paid. In short, account receivable is any amount of money owed by customers for good bought on credit. At the end of each fiscal year, the company records accounts receivable as a current asset on the balance sheet.

Actual Time of Arrival

Actual Time of Arrival is the time that a vessel or any other mode of transportation is determined to arrive at its destination. The contrast to ATA is Actual Time of Departure (ATD). ATD indicates the exact time a vessel departs its point of origin.

Accord Dangereux Routier (ADR)

Accord Dangereux Routier   is set of European regulations concerning the international transport of dangerous goods by road. It is a UN treaty concluded in 1957 and updated ever since, according to new rules and regulations in the logistics industry. There are nine different types of classes based on which dangerous goods can be classified and thus, transported. Each class has a corresponding UN Number formed of four digits to help identify hazardous articles, substances or items.

Advance Filing Rule (AFR)

Advance Filing Rule is a requirement for all carriers to electronically file the detail description of the cargo onboard their vessel when sailing to/through the Chinese and Japanese ports.

The detail must be filed 24 hours before the vessel leaves the port of origin or the port of loading (POL). Otherwise, the vessel may not be allowed to unload without express authorisation from the customs authorities.

Air Cargo

Air cargo is another term for air freight.  It is the carriage or the transportation of goods through an air carrier. Transport services via air are the most valuable when it comes to moving express shipments around the globe and it consists of air mail, air freight and air express. Air cargo also flies in the same gateway as the commercial or passenger airlines.

Air Freight

Air freight means:

1. Air freight is another term for air cargo that is, the shipment of goods through an air carrier. Air transport services are the most valuable when it comes to moving express shipments around the globe. Just like the commercial or passenger airlines, air freight flies in the same gateways.

2. Air freight, on the other hand, means the amount to be paid for the transportation of goods by air. When goods are shipped from one place to the other, the amount paid for the movement of the goods is called freight. Therefore, air freight means the charges paid for air transport.

Air Waybill (AWB)

An Air Waybill is a transportation document issued by an international air carrier, stating the detailed information about the shipment of goods and how it can be tracked. Among other things, the document contains the terms and conditions of the shipment, carrier’s limit of liability, description of goods and the procedure to make claims. AWB can also be referred to as an air consignment note. There is an adopted standard for issuing AWB document and it is used across the world in both international and domestic traffic.

All-Cargo Aircraft

All-cargo aircraft is the type of aircraft with various sizes, specifically designed for shipping cargoes. It is also known as freight aircraft, freighter, airlifter, cargo jet or cargo aircraft.

The features of the all-cargo aircraft are completely different from passenger aircraft, and does not integrate passenger plane design model. And its transit time ranges from a short, to a long distance flights.

Allotted Stock

Allotted stock refers to the quantity of goods or raw materials in a storage but had already been allotted for other purpose. Usually, when stock are allotted for a specific use, it becomes unavailable even though it may still be seen or present in the warehouse.

Automated Manifest System (AMS) Filing

AMS filing, also known as Automated Manifest System filing, is a document submitted to the US customs describing all the goods bound for the country. The document must be filed 24 hours prior to the departure of a ship from the port of loading.

The AMS filing was adopted by the US in 2004 to ensure security and safety. In short, the system is used for freight tracking and to clamp down on potential security threats. Apart from the transportation via sea, the system is also applicable to other mode of transportation such as air, rail and land.

AMS filing is done in two ways:

• Cargo reporting: an Importer Security Filing (ISF), in addition to other documents, must be submitted at least 24 hours before the shipment is loaded onboard the transportation mode.
• Conveyance report: a customs entry lodgement is to be submitted before the ship arrives at the port.

Assemble to Order (ATO)

Assemble to order (ATO) refers to the process of assembling goods. The goods (fabricated, packed, in bulk, intermediate) are usually already manufactured and stocked before the customer places the order.

ATA Carnet

ATA stands for Admission Temporaire, in French and Temporary Admission in English. ATA carnet is an international temporary export and import document. The document is used to clear customs (import) without the need to pay duties and taxes on products that are to be re-exported within a year. ATA carnet is widely used for the admission of temporary products and it is applicable in over 70 countries. It can be referred to as ‘Merchandise Passport’ or ‘Passport for Goods.’

ATR Certificate

An ATR certificate is a customs document used for trade between the European Union (EU) countries and Turkey. The certificate allows for certain type of goods to be imported between the two parties without duties. The duty free products do not cover goods such as agricultural produce, coal and steel.

Without obtaining the ATR certificate, normal non-EU customs tariffs will apply for import into the EU. Traders who want to export non-duty free goods which are not cover under the ATR certificate, can do so by obtaining an EUR1 certificate.

AEO Certification

The attack on USA on the 11th of September, 2011 lead to the tightening of security for imported goods around the world. Therefore, the concept of AEO was introduced by World Customs Organisation (WCO) to be adopted by different countries in connection to their national custom security measures.

An Authorised Economic Operator (AEO) is a concept that foster customs to business partnership. Basically, the AEO is involved in the international movement of goods that have been approved by the national customs authorities, as complying with the standards set by the WCO on the supply chain security.

Companies that do business internationally need to apply for the AEO certificate if they want to benefit from the advantages the certificate has to offer. Generally, the holders of AEO certificate get easier admittance to customs simplifications; are recognised as a secure and safe business partner; get improved relations with Customs and other government authorities; reduce the chances of loss of goods; get a lower inspection cost.

Automatic Identification System (AIS)

Automatic Identification System is an integral part of the Global Maritime Distress and Safety System (GMDSS). AIS is a tool for transmitting data electronically between a vessel and the AIS receiving station. Data can be transmitted from vessel to vessel, vessel to ashore station or vessel to satellite. And all vessels navigating closely to each other, having AIS integration, can know the course and speed of each other vessel.

AIS had been a compulsory requirement since 2004 for all vessels weighing over 300 tons and travel internationally.