The last of our "Commonly Used Shipping Terms" articles, following are explanations of some of the trickier terms beginning with letters R-Z.
Rate of Exchange The rate of currency exchange established daily as the buying rate of foreign currency by the Federal Reserve Bank. The daily rate is used only when it varies by more than 5% from the quarterly rate. When applicable, the daily rate is the rate that is certified on the day of exportation.
Shippers Export Declaration A form that is required by the Treasury Department and completed by the shipper showing the value, weight, consignee, destination, etc. of export shipments as well as the Schedule B identification number.
Temporary Import Exhibition material whose temporary import status exempts payment of duties and taxes on arrival.
Temporary Import Bond/Deposit (TIB) Articles that are not imported for sale, admitted into the US on a temporary basis without the payment of duty, under bond for their exportation.
TIR Carnet Similar to an ATA Carnet, but used for trucks from Non-EC Countries. Can be used for different unloading locations. The truck(s) must be sealed by Customs.
VAT Value Added Tax. VAT applies to all EC countries, Switzerland and other countries around the world. The percentage applies to CIF value and duties and the percentage differs from one country to another. Local VAT on forwarding/handling services is not charged between ECE companies with a registered VAT number or to non-EC exhibitors on condition the local forwarder executes Customs clearance and transport.
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