Glossary of Trade Terms

Area Control List

A list of countries to which any export (except humanitarian items) requires an export permit.

ATA Carnet

An international, unified customs document, issued by the Canadian Chamber of Commerce, that simplifies customs procedures for the temporary duty free admission of three main categories of goods traded internationally: commercial samples; goods for presentation or use at trade fairs, shows, exhibitions, or similar events; and professional equipment.

Bill of lading

A contract prepared by the carrier or the freight forwarder with the owner of the goods. The foreign buyer needs this document to take possession of the goods.

Certificate of origin

A document that certifies the country where the product was created (i.e., its origin).  A certificates of origin may be an “ordinary CO” (no preferential tariff treatment) or a “preferential CO” (tariff reduction or exemption).

Commercial invoice

A document, prepared by the exporter or freight forwarder, that is required by the buyer to prove ownership of the goods and arrange for payment to the exporter.

Consular invoice

A statement issued by a foreign consul in the exporting nation describing the goods purchased. Some foreign governments require Canadian exporters to first obtain consular invoices from their consulate in Canada. A fee is usually charged.

Customs broker

A professional who provides customs services including the processing of customs, import and export documentation, and release of commercial goods through the local customs authority.

Customs declaration

A document that traditionally accompanies exported goods bearing such information as the nature of the goods, their value, the consignee and their ultimate destination. Required for statistical purposes, it accompanies all controlled goods being exported under the appropriate permit.

Customs invoice

A document used to clear goods through customs in the importing country by providing documentary evidence of the value of goods. In some cases, the commercial invoice may be used for this purpose.

Dock receipt

A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse facilities. (See also Warehouse Receipt.)

Ex Factory

Used in price quotations, an expression referring to the price of goods at the exporter's loading dock.

Export Control List

A list of goods and technologies that require export permits to be exported from Canada, pursuant to the Export and Import Permits Act.

Export declaration

Documentation required by the Canada Border Services Agency before goods can be exported from Canada.

Export license

A legal document issued to an exporter by a government authority that allows the licensee to engage in the export of designated goods.

Export permit

A legal document that is necessary for the export of goods controlled by the Government of Canada, specifically goods included on the Export Control List or goods destined for countries on the Area Control List.

Freight forwarder

A service company that handles all aspects of export shipping for a fee.

Import license

A document required and issued by some national governments authorizing the importation of goods into their country.

Import tariffs

Foreign government taxes levied on goods imported into that country.

Insurance certificate

A document prepared by the exporter or freight forwarder to provide evidence that insurance against loss or damage has been obtained for the goods.

Landed cost

The cost of the exported product at the port or point of entry into the foreign market, but before the addition of foreign tariffs, taxes, local packaging/assembly costs and local distributors’ margins. Product modifications prior to shipment are included in the landed cost.

Packing list

A document prepared by the exporter showing the quantity and type of goods being shipped to the foreign customer.

Pro forma invoice

An invoice prepared by the exporter prior to shipping the goods, informing the buyer of the goods to be sent, their value, and other key specifications.

Quotation

An offer by an exporter to sell the goods at a stated price and under certain conditions.

Warehouse receipt

A receipt identifying the commodities deposited in a recognized warehouse. A non-negotiable warehouse receipt specifies to whom the deposited goods will be delivered or released. A negotiable receipt states that the commodities will be released to the bearer of the receipt.