International Chemical Business Terms
Below is a list of export and import related terms to help you navigate the international chemical business. All terms are listed alphabetically.
M
Manifest (M/F)
In marine transportation, a detailed statement of the goods loaded on the ship prepared by the shipping company. Submitted to customs by the shipping company at the port of discharge.
Marine Insurance
A casualty insurance to compensate for the damages caused by accidents to the goods loaded on a ship during marine transportation. Unlike fire insurance or car insurance, which are based on time policy (for example, two years), basically marine insurance is based on voyage policy (transportation section: a period of insurance from point A to point B). Usually it is roughly classified as hull insurance and cargo insurance.
The hull insurance provides coverage for the ship, and in addition to the damages caused to the ship itself, it also covers losses such as food or fuel occurred during accidents and compensations due to collisions.
The cargo insurance covers the damages to the goods transported by ship on international routes. The cargo insurance is classified in three types: the “partial loss free from average” type called FPA (Free From Particular Average), the “with particular average” type called WA (With Average) and the “against all risks” type called AR (All Risks). Among these, the “against all risks” type (All Risks) is the insurance term generally used.
The insurance price (the amount insured) is usually 110% of the CIF price, and this is because an extra 10% is usually added as expected profits.
Regarding the CIF contract, the seller concludes a contract with the insurance company, and regarding the FOB or CFR contract, the buyer concludes a contract with the insurance company.
The hull insurance provides coverage for the ship, and in addition to the damages caused to the ship itself, it also covers losses such as food or fuel occurred during accidents and compensations due to collisions.
The cargo insurance covers the damages to the goods transported by ship on international routes. The cargo insurance is classified in three types: the “partial loss free from average” type called FPA (Free From Particular Average), the “with particular average” type called WA (With Average) and the “against all risks” type called AR (All Risks). Among these, the “against all risks” type (All Risks) is the insurance term generally used.
The insurance price (the amount insured) is usually 110% of the CIF price, and this is because an extra 10% is usually added as expected profits.
Regarding the CIF contract, the seller concludes a contract with the insurance company, and regarding the FOB or CFR contract, the buyer concludes a contract with the insurance company.
Marine Insurance Policy
The certificate the insurance company writes and issues to the insurer as evidence of completion of a cargo marine insurance contract and its content.
Master B/L
The bill of lading issued by the shipping company.
MFN (Most Favored Nation Treatment)
With commercial treaties, permanently granting the most advantageous terms of trade to a country through preferential measures, such as customs duty. It is stipulated that all the WTO member countries should accord the Most Favored Nation Treatment equally to all the WTO member countries. A temporary Safe Guard, the Economic Partnership Agreement (EPA) and the Free Trade Agreement (FTA) are accepted as exceptions.
Minimum Charge (M/M)
In trade, the minimum charge set by the shipping company or the airline company. For example, for a freight of 50 dollars per ton, if the minimum charge is 100 dollars, at least a freight equivalent to 2 tons (100 dollars) will be paid regardless of how small the quantity is.