Tuesday, June 9, 2009

Trade Terms Tuesday

General Average
General average is a maritime principle that allows a vessel owner to recover from shippers that have cargo on board the vessel for expenditures incurred to repair the vessel due to extraordinary events such as fires and collisions. Under the general average provision, the owners of any cargo on board a vessel that is damaged must share pro rata in general average to repair any damage done to the vessel. General average originated in the late 1600’s when the risk of sailing long distances was higher so the risks of the voyage were shared by all who had an interest in the safe and profitable journey of the ship.

General Order
Merchandise which has not been released by CBP after a certain period is considered to be “general order” when it is taken into the custody of the port director and deposited in the public stores, or a general order warehouse. Imported merchandise subject to entry requirements must be released within 15 calendar days after the arrival of the vessel, aircraft or other conveyance (19 CFR 141.5, 19 CFR 127). In the case of merchandise moved in bond, merchandise must be released within 15 calendar days after arrival at the in bond destination. Merchandise not cleared within the allotted time may be at risk for being placed in General Order Storage by CBP. The owner of the merchandise has 6 months from date of importation to claim the merchandise, make an entry and pay any charges due. After the expiration of the 6-month period, CBP may sell the merchandise at public auction.

GBS is an exception to an export license requirement found in 15 CFR 740 of the EAR. Each License Exception is designated by a three-letter symbol used for export clearance purposes. GBS is the three-letter symbol for the exception for Shipments to Country Group B Countries. (15 CFR 740.4) License Exception GBS authorizes exports and reexports to Country Group B (see Supplement No. 1 to part 740) of those commodities where the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) indicates a license requirement to the ultimate destination for national security reasons only.


Anonymous said...

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Anonymous said...

I find the Trade Terms so very helpful. Thank you!!! Is there a place where I can see all the trade terms in once place?