Export Glossary-GH

GATT

General Agreement on Tariffs and Trade. A multilateral treaty intended to help reduce trade barriers between signatory countries and to promote trade through tariff concessions.

G.A. in Full Clause

A clause in a cargo policy whereby the underwriter agrees to pay general average contributions in full even though the contributory value may be greater than the insured value.

Gateway

A principal airport, domestic or international, with many flights, offering maximum service and connections. Sometimes used to refer to a truck or rail border crossing to Canada or Mexico.

GCC-5

The five countries of the GULF COOPERATION COUNCIL: Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates (UAE) which lie in the Arabian Gulf region.

General Average

An internationally accepted rule of the sea. When a ship is in danger of total loss the master has the right to sacrifice property and/or incur reasonable expenditure to prevent the total loss. Measures taken for the sole benefit of any particular interest are not general average. On successful completion of the adventure or if it is abandoned in a place of safety on successful attainment of such place the ship is declared as entering "under average". Security in the shape of deposits or guarantees is taken from each cargo interest and an average adjuster is appointed The adjuster calculates the value of the saved interest and each interest is required to contribute a rateable proportion to make good the general average loss. Underwriters are liable only if the peril leading to the general average act was an insured peril and their liability is limited to the insured value of sacrificed insured property and to their proportion of the general average contribution payable by the assured.

General Average Bond

An agreement signed by all parties involved in a general average act.

General Average Contribution

The proportion payable by one of the parties involved in a general average act to make good the loss suffered in that act.

General Average Deposit

A deposit paid by a cargo in return for delivery of the goods where such goods are subject to a general average contribution.

General Average Disbursements

Expenses paid by the shipowner as part of a general average act. Such expenses are recovered by the shipowner from the general average fund.

General Average Fund

The total arrived at by adding together general average expenditure and the value of property sacrificed in a general average act plus costs of its adjustment.

General Average Guarantee

An undertaking by a financial house or an underwriter to pay the contribution due towards a general average fund.

General Average Security

Documents the cargo owner presents to the General Average Adjuster to replace the vessel owner's maritime lien on cargo for its share of General Average and to obtain release of the goods by the Steamship Company. G.A. Security consists of a G.A. Bond and either a cash deposit or an Underwriter's Guarantee.

General Export License

Any of various export licenses covering export commodities for which Individually validated export licenses are not required. No formal application or written authorization is needed to ship exports under a general export license.

General System of Preferences (GSP)

A system of tariff preferences designed to encourage the expansion of manufactured and semi-manufactured exports from developing countries. It is part of the tariff structures of numerous developed countries. Under the GSP program, the United States offers preferential duty-free entry on approximately 4,290 products from 134 countries. The program covers a broad spectrum of agricultural, manufactured, and semi-manufactured products, but stipulates that certain products may not be designated duty-free eligible due to the import sensitivity of U.S. domestic industries.

Gold Clause Agreement

An agreement between parties concerned with the carriage of goods by sea whereby they agree to increase the limits imposed by law for shipowner's liability in respect of cargo.

Goods

Anything purchased other than services or real property

Grain Certificate

A certificate to show that the regulations have been complied with when carrying a grain cargo.

Gross Domestic Product (GDP)

The value of all goods and services produced in a country during a specified time period. (See Value Added.)

Gross Tonnage

This is the volume of the interior of the vessel including all spaces that are permanently closed in (but excluding the double bottom) expressed in tons of 100 cubic feet.

Gross Weight

The full weight of a shipment, including goods and packaging. Compare Tare Weight.

Group of Seven (G-7)

Seven industrial countries - the United States, Japan, Germany, France, the United Kingdom, Italy, and Canada - whose leaders have met at annual economic summits since 1975 to coordinate economic policies.

Guaranteed Credits

Credits that are insured under export insurance programs of government and government-supported agencies.

Guaranteed Freight

Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier's control.

Hard Currency

Currency that has sound value, is generally acceptable at face value internationally, and is convertible in the open market. Also known as Convertible Currency.

Harmonized System

An international commodity classification system, developed under auspices of Customs Cooperation Council, adopted by the United States in 1989 and increasingly the most widely accepted import/export classification methodology. Replaces SCHEDULE B export codes and TARIFF SCHEDULE OF THE U.S. import codes.

Heavy Lift

A unit of cargo that cannot be lifted by the normal ship's gear.

Held Covered

An agreement by underwriters to extend the terms of the insurance in specified circumstances subject to an additional premium.

High Seas

Maritime areas that are outside the jurisdiction of any state.

House Air Waybill (HAWB)

Freight forwarder's air waybill that refers to consolidated shipments. See Air Cargo Receipt.