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.
Packing List (Detailed Packing List)
Detailed packing list prepared by an exporter, an important document necessary during customs clearance. The information regarding the exporter and importer, ship name, port of departure, port of loading, port of destination, cargo details, quantity, packing unit, net weight, gross weight, capacity, shipping mark, etc. are mentioned.
A board for loading cargo used for transporting, storing, loading and unloading goods. While carrying goods, they are put on this board and lifted using a forklift. The slatted wood pallets are the most common, however resin pallets are also often used for exports. In order to export using pallet packing, palletizing should be properly done to avoid cargo shift during transportation.
The size of the ship that can tightly traverse the Panama Canal that links the Caribbean Sea to the Pacific Ocean. The ships authorized to pass through the Panama Canal are ships less than 294 meter in total length and 32 meter in total width.
A provision regarding damages and expenses caused when a ship suffers an accident, under which the owner is the sole bearer. On the other hand, proportionally sharing and supporting the damages and expenses between the parties involved is called general average.
Port of Destination
The port where the cargo is finally unloaded.
Port of Discharge
The port where the international transportation cargo is unloaded.
Port of loading
The port where the cargo is loaded on the ship. Mentioned in the bill of lading (B/L).
Port of Origin (Port of Exit)
The port where the cargo was initially loaded on the ship.
A tax rate established by the Act on Temporary Measures Concerning Customs. It is one of the statutory tariffs together with the general rate of duty and the temporary rate, a solution to the North-South problem by which rates lower than the usual customs tariffs are applied to goods imported by developed countries from developing countries.
Incoterms such as the CIF or FOB terms, and terms regarding which currency is used.
Prior Instruction System by Japan Customs
The system by which the person planning to import the cargo can inquire and receive a response from the customs before actually importing, regarding the customs duty classification and tariff rates at the time the cargo will actually be imported. When the inquiries are submitted in a written form, in most cases a written response from the customs is received within a few days to a few weeks. As for the content of this response, it is highly appreciated during the examination of the import declaration, within three years after the response is issued by customs.
Processing Deal Trade
A form of trade by which a consignor offers materials, a contractor processes them and then processed products are imported. When the contractor is in Japan (the products are exported from Japan) it is called a processing deal, and when the consignor is in Japan (the products are imported into Japan) it is called a reverse processing deal.
A form of trade by which raw materials and semi-processed products are imported, processed and exported, the resulting margin becoming the profit.