Welcome to Trade Terms Tuesday! Each Tuesday, we will share three trade-related terms. In order to reach out to our diverse readership, we will try to provide one for exports, one for imports and one for logistics/transportation. This week, we continue with the H’s.
Hazardous Materials
Hazardous materials are substances or materials that have been determined to pose a potential risk to health, safety, and property when transported. Goods normally falling into this category include those that are flammable, corrosive or poisonous. Cargo designated as HAZMAT must carry special warning labels, be properly identified and packaged, and meet other special requirements before being shipped.
Harbor Maintenance Fee (HMF)
The HMF is a fee paid on import shipments for use of ocean ports and is based on a percentage of value of the shipment. The current HMF is 0.125 percent of the value; however, there is a bill, H.R. 2355, that proposes and increase in the HMF from 0.125 percent to 0.4375. The HMF is paid at time of entry unless the goods enter into a foreign trade zone, where fees are paid quarterly. Fees collected are earmarked for use in improvement and maintenance of U.S. harbors. There is no maximum on the HMF collected per entry.
Horizontal Export Trading Company
A Horizontal Export Trading company is an export trading company which exports a range of similar or identical products supplied by multiple manufacturers who may be competitors on the domestic market. An export trading company formed by an association of agricultural cooperatives is the prime example of a horizontally organized export trading company.
Hazardous Materials
Hazardous materials are substances or materials that have been determined to pose a potential risk to health, safety, and property when transported. Goods normally falling into this category include those that are flammable, corrosive or poisonous. Cargo designated as HAZMAT must carry special warning labels, be properly identified and packaged, and meet other special requirements before being shipped.
Harbor Maintenance Fee (HMF)
The HMF is a fee paid on import shipments for use of ocean ports and is based on a percentage of value of the shipment. The current HMF is 0.125 percent of the value; however, there is a bill, H.R. 2355, that proposes and increase in the HMF from 0.125 percent to 0.4375. The HMF is paid at time of entry unless the goods enter into a foreign trade zone, where fees are paid quarterly. Fees collected are earmarked for use in improvement and maintenance of U.S. harbors. There is no maximum on the HMF collected per entry.
Horizontal Export Trading Company
A Horizontal Export Trading company is an export trading company which exports a range of similar or identical products supplied by multiple manufacturers who may be competitors on the domestic market. An export trading company formed by an association of agricultural cooperatives is the prime example of a horizontally organized export trading company.
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