Tonnage is a measure of the cargo-carrying capacity of a ship, and is commonly used to assess fees on commercial shipping. The term derives from the taxation paid on tuns or casks of wine. In modern maritime usage, "tonnage" specifically refers to a calculation of the volume or cargo volume of a ship. Although tonnage (volume) should not be confused with displacement (the actual weight of the vessel), the long ton (or imperial ton) of 2,240 lb is derived from the fact that a "tun" of wine typically weighed that much. Tonnage measurements are governed by an IMO Convention (International Convention on Tonnage Measurement of Ships, 1969 (London-Rules)), which initially applied to all ships built after July 1982, and to older ships from July 1994. A commonly defined measurement system is important, since a ship's registration fee, harbour dues, safety and manning rules, and the like may be based on its gross tonnage (GT) or net tonnage (NT). Gross tonnage Gross tonnage (GT) is a function of the volume of all of a ship's enclosed spaces (from keel to funnel) measured to the outside of the hull framing. The numerical value for a ship's GT is always smaller than the numerical values of gross register tonnage (GRT). Gross tonnage is therefore a kind of capacity-derived index that is used to rank a ship for purposes of determining manning, safety, and other statutory requirements and is expressed simply as GT, which is a unitless entity, even though it derives from the volumetric capacity in cubic metres. Net tonnage Net tonnage (NT) is based on a calculation of the volume of all cargo spaces of the ship. It indicates a vessel's earning space and is a function of the moulded volume of all cargo spaces of the ship. The Panama Canal/Universal Measurement System (PC/UMS) is based on net tonnage modified for Panama Canal purposes. PC/UMS is based on a mathematical formula to calculate a vessel's total volume; one PC/UMS net ton is equivalent to of capacity.