Tuesday, July 28, 2009

Trade Terms Tuesday


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 N’s.

Non-Vessel Operating Common Carrier (NVOCC)
The NVOCC is a company providing international transport of goods although it does not necessarily operate or own transportation vehicles or equipment. The NVOCC is a cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port. NVOCC’s contract with the shipper to move goods from the exporter’s premises to the importer’s premises. The NVOCC issues its own transport document although they will sub contract with other carriers.


Negligence
Negligence is violation that arises through a failure to exercise the degree of reasonable care expected from a person in the same circumstances. Generally, an import violation is negligent if it results from a failure to exercise reasonable care to ensure that information provided in connection with the importation of merchandise is complete and accurate, or failure to perform any material act required by regulation. A violation rises to gross negligence if done with actual knowledge or with wanton disregard of the relevant facts and with indifference to, or disregard for, the offenders' obligations. Negligence is more akin to making an honest mistake whereas gross negligence can be related to knowing the correct way to do something and ignoring it by doing something different.


Non-Disclosure Agreement
The NDA is an agreement between two or more parties not to disclose trade secrets, trade practices, business plans or any other proprietary or confidential information. Exporters often use NDA’s when working with confidential, export controlled information. The parties often require the inclusion of certain phrases about the restrictions to appear on the documentation subject to the NDA.

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