Glossary

The Bunker Adjustment Factor (BAF) is a surcharge raised by shipping lines to take account of fluctuations in the price of marine fuel. A similar surcharge, commonly referred to as "fuel surcharge" is applied where goods are transported by air to compensate for fluctuations in the price of aviation fuel.

A payee or recipient, usually of money or a party in whose favour a documentary credit is established, usually the exporter.

BIFA is the UK trade association for international freight forwarding, logistics, cargo, trade, imports and exports.

Also known as a draft. A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving the order. The addressee is required to pay a certain sum of money to the order of a specified person or to bearer either on demand or at a fixed or determinable future time.

A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination.

 Among other items of information, a Bill of Lading contains consignor's and consignee's name, names of the ports of departure and destination, name of the vessel, dates of departure, goods being transported with number of packages and kind of packaging, marks and numbers on the packages, weight and/or volume of the cargo, freight rate and amount.

It serves as a proof of ownership (title) of the cargo, and may be issued either in a negotiable or non-negotiable form. In negotiable form, it is commonly used in letter of credit transactions, and may be bought, sold, or traded; or used as security for borrowing money.

It is required in all claims for compensation for any damage, delay, or loss; and for the resolution of disputes regarding ownership of the cargo. The rights, responsibilities, and liabilities of the carrier and the shipper under a Bill of Lading (often printed on its back) are governed generally either by the older Hague rules, or by the more recent Hague-Visby rules.

When a bill of lading is signed by the shipper and made out "to order" or "shipper's order" it should be signed on the reverse of the document. This is said to be blank endorsed. The bill of lading then becomes a bearer instrument. Any holder of a blank endorsed bill of lading can take delivery of goods from the shipping company. Any document made out to order can be blank endorsed in the same way.

Returned Goods Relief (RGR) provides relief from import duty, including Common Agricultural Policy (CAP) duties, excise duty and VAT on goods re-imported into the EU.

You can claim for goods from outside the EU, countries which have a customs union with the EU. The conditions for relief are different for each type of duty or tax, and if you claim relief from more than one, you must meet the conditions for each.

The re-imported goods should be in the same state they were in when they were originally exported from the EU. The goods must not have been processed, apart from routine maintenance or unforeseen repairs. Claiming RGR does not override any re-importing restrictions.