Trade & Shipping Glossary

Short, plain-language definitions of the terms that show up on invoices, packing lists, bills of lading and letters of credit. Tap a linked term to open the matching free tool or guide.

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ACI / ACID Number (Egypt)

Egypt's Advance Cargo Information system: the Egyptian importer obtains a 19-digit ACID number in Nafeza before shipment, and it must be printed on the invoice, transport document and other shipping documents.

Advance Payment (Cash in Advance)

The buyer pays all or part of the price before the goods are shipped, often as a deposit with the balance due against a copy of the bill of lading; it is the safest term for the seller and the riskiest for the buyer.

AEO (Authorised Economic Operator)

A trader certified by customs as reliable and secure, which can get simpler procedures and fewer checks; many countries recognise each other's programmes.

AES / EEI (Electronic Export Information)

The US export declaration, filed in the Automated Export System (AES) when goods under one Schedule B or HTS number are worth over USD 2,500 or need an export licence. AES returns an ITN that goes on the bill of lading or air waybill.

Air Waybill (AWB)

The transport document for air cargo, issued by the airline or its agent. It is a receipt and the contract of carriage but not a document of title, so the goods are released to the consignee named on it. A forwarder issues a house AWB (HAWB) under the airline's master AWB (MAWB).

Apostille

A certificate from the issuing country that authenticates a public document for use in another member of the 1961 Hague Apostille Convention, replacing consular legalization.

Applicant and Beneficiary (L/C)

Under a letter of credit, the applicant is the buyer that asks its bank to open the credit; the beneficiary is the seller that is paid if it presents complying documents.

Arrival Notice

A notice from the carrier or forwarder to the consignee or notify party that the cargo is arriving, with the ETA, container details, charges and the steps to get it released.

Assessable Value

The customs value used as the base for calculating import duty — often the CIF value, but some countries use a separately determined transaction or customs value.

ATA Carnet

An international customs document that lets samples, professional equipment and exhibition goods enter a country temporarily without paying duties and taxes, for up to one year, in about 80 countries.

B/L (Bill of Lading)

Bill of Lading: the transport document issued by an ocean carrier as a receipt for the goods, evidence of the contract of carriage, and (for an original, negotiable B/L) a document of title.

BAF (Bunker Adjustment Factor)

A surcharge on ocean freight that passes changes in fuel (bunker) costs on to shippers. Shipping lines revise it regularly; since 2020 it also reflects the cost of low-sulphur fuel required by IMO 2020.

Beneficiary Certificate

A statement signed by the seller, the beneficiary of a letter of credit, confirming that it has done something the credit requires, such as sending a set of copy documents to the buyer.

Bill of Exchange (Draft)

A written order signed by the drawer telling the drawee to pay a fixed sum to a named person, on demand or on a set date; used in collections and letters of credit.

Binding Tariff Information (BTI) / Advance Ruling

A written decision by customs on the tariff classification of a product (or its origin or value) given before import and binding on customs. In the EU it is Binding Tariff Information, valid for 3 years; in the US, CBP issues rulings under 19 CFR Part 177.

Bonded Warehouse

A customs-approved warehouse where imported goods can be stored without paying import duty and VAT until they are released for free circulation or re-exported.

Booking Confirmation

The carrier's or forwarder's confirmation of space on a vessel or flight, with the booking number, the vessel and voyage, the cut-off times and where to pick up the empty container.

C/O (Certificate of Origin)

Certificate of Origin: a document stating which country goods were produced in, used either to claim a preferential tariff under a trade agreement or simply to declare origin.

CAD (Cash Against Documents)

The buyer pays when the shipping documents are presented to it, usually through banks as a documentary collection on D/P terms; it then receives the documents to collect the goods.

Cargo Manifest

The carrier's list of all consignments loaded on a vessel, aircraft or truck, which customs use for risk checks and to match the declarations.

Carrier Liability Limit

The maximum a carrier must pay for lost or damaged cargo under the applicable convention, capped per package or per kilogram in Special Drawing Rights (SDR), which is often far below the cargo's value; cargo insurance or a declared value covers the gap.

CBAM (Carbon Border Adjustment Mechanism)

The EU charge on the emissions embedded in imported iron and steel, aluminium, cement, fertilisers, hydrogen and electricity; from 2026, importers of 50 tonnes or more a year must be authorised declarants and buy CBAM certificates.

CBM (Cubic Meter)

Cubic Meter: the standard unit for measuring the volume a shipment takes up, used to work out container fit and often the shipping cost.

CE Marking

The mark a manufacturer places on products covered by EU safety rules, such as toys, machinery and electrical equipment, to declare that they meet those rules; it is not a quality mark or an approval by an authority.

Certificate of Analysis (CoA)

A document from the manufacturer or a laboratory giving the test results of one batch against its specification; buyers of chemicals, food ingredients and cosmetics often require it with each shipment.

Certificate of Conformity (CoC)

A certificate, usually issued after testing or inspection by an approved body, stating that goods meet the importing country's technical rules; some countries require one to clear listed products through customs.

Certificate of Free Sale

A certificate from an authority or chamber of commerce in the exporting country stating that the product is legally sold there; often asked for when registering food, cosmetics or medical devices abroad.

CFR (Cost and Freight)

Cost and Freight: an Incoterms rule where the seller pays the cost and freight to the named port, but risk transfers to the buyer once the goods are loaded on board.

Chargeable Weight

The higher of a shipment's actual (gross) weight and its volumetric weight, used by carriers to calculate freight cost, especially for air freight.

CIF (Cost, Insurance and Freight)

Cost, Insurance and Freight: an Incoterms rule and a valuation basis — the goods value plus international freight and insurance, commonly used as the base for calculating import duty.

CIP (Carriage and Insurance Paid To)

Carriage and Insurance Paid To: an Incoterms rule where the seller arranges and pays for carriage and insurance to the named destination, but risk transfers once the goods are handed to the first carrier.

CISG (UN Sales Convention)

The UN Convention on Contracts for the International Sale of Goods (Vienna, 1980), which applies automatically to sales of goods between businesses in two different member countries unless the contract excludes it.

Clean B/L / Claused B/L

A clean bill of lading carries no clause saying the goods or their packaging were defective when received. A claused (foul) B/L notes damage or shortage, and banks reject it under a letter of credit (UCP 600 Article 27).

CMR Consignment Note

The road transport document under the CMR Convention, used when goods travel by road between two countries and at least one of them is a party to the Convention; it is made out in three originals, for the sender, the consignee and the carrier.

Commercial Invoice

The seller's itemized bill for goods actually shipped, used by customs to assess duty and by the buyer to pay or claim the goods — different from a proforma invoice, which is a quotation.

Consignee

The buyer named on a shipment's documents, to whom the carrier is instructed to deliver the goods.

Consolidation (Groupage)

Combining several shippers' cargo in one container (LCL consolidation, also called groupage), or several orders from one shipper in one shipment, to share the transport cost.

Consular Legalization

Certification of a document's signature or seal in the issuing country and then by the destination country's embassy or consulate, still needed for countries outside the Apostille Convention.

Container (TEU / FEU)

A standardized steel box for ocean and intermodal freight, most commonly 20 or 40 feet long (TEU/FEU); see exact internal dimensions and weight limits for each type.

Container Number (ISO 6346)

The 11-character ID marked on every container: a three-letter owner code, an equipment category letter, a six-digit serial number and a check digit.

Container Seal

A numbered, tamper-evident lock fitted to the container doors after loading; its number is recorded on the B/L and checked on arrival.

Country of Origin Marking

The 'Made in' marking on goods or their packaging that some countries, such as the United States, require so the final buyer knows where the goods were made.

CPT (Carriage Paid To)

Incoterms rule: the seller pays the carriage to the named destination, but the risk passes to the buyer when the goods are handed to the first carrier.

Customs Broker

A licensed agent who prepares and files customs declarations and pays duty on an importer's behalf.

Customs Declaration

The formal statement to customs of the goods, their tariff code, value and origin, placing them under a procedure such as import or export.

Customs Power of Attorney

A written authorisation that allows a customs broker or forwarder to make customs declarations on behalf of the importer or exporter.

Customs Value (Transaction Value)

The value on which ad valorem duty is charged. Under the WTO Customs Valuation Agreement it is normally the transaction value, the price actually paid or payable with certain additions; each country decides whether freight and insurance to the border are included (CIF basis, as in the EU) or not (FOB basis, as in the US).

Cut-off (CY, SI and VGM cut-off)

The latest time to hand something to the carrier for a sailing: the CY cut-off for the loaded container at the terminal, the SI cut-off for the shipping instruction (B/L data) and the VGM cut-off for the container's verified gross mass. Missing one can push the container to the next vessel.

CY and CFS (Container Yard, Container Freight Station)

The container yard is where full containers are received and stored at the terminal; the container freight station is where LCL cargo is packed into or unpacked from containers.

D/P and D/A (Documentary Collection)

Payment through banks under URC 522: the seller's bank sends the shipping documents to the buyer's bank, which releases them against payment (D/P, documents against payment) or against the buyer's acceptance of a bill of exchange payable later (D/A, documents against acceptance). The banks do not guarantee payment.

Dangerous Goods (DG)

Goods that can endanger people, transport or the environment, such as flammable liquids (many perfumes), aerosols, lithium batteries and corrosives. They are identified by UN number and class and must be packed, marked, labelled and declared under the IMDG Code (sea), the IATA Dangerous Goods Regulations (air) or ADR (road in Europe).

Dangerous Goods Declaration (DGD)

The shipper's signed declaration of dangerous goods for transport, giving the UN number, proper shipping name, class, packing group and quantity; the IMDG Code requires it for sea and the IATA rules for air.

DAP (Delivered at Place)

Delivered at Place: an Incoterms rule where the seller delivers when the goods are made available, ready for unloading, at the named destination — the seller bears risk and cost up to that point.

DAT (Delivered at Terminal)

An Incoterms 2010 rule. Incoterms 2020 replaced it with DPU (Delivered at Place Unloaded), which can be any place where the seller unloads the goods, not only a terminal.

DDP (Delivered Duty Paid)

Delivered Duty Paid: an Incoterms rule where the seller delivers the goods cleared for import at the named destination, bearing all cost and risk including import duty and tax.

DDU (Delivered Duty Unpaid)

An Incoterms 2000 rule that no longer exists. Since Incoterms 2010 its place is taken by DAP (Delivered at Place): the seller delivers to the named place and the buyer pays import duty and taxes.

De Minimis Value

The value below which a country lets imports in without duty, and sometimes without tax or a full declaration. Thresholds differ by country and change often; the US suspended its USD 800 de minimis exemption for all countries on 29 August 2025.

Debit Note and Credit Note

Documents that adjust an invoice after it is issued: a debit note increases the amount owed and a credit note reduces it, for example after a price correction, a shortage or returned goods.

Delivery Order (D/O)

The release a carrier or its agent issues at destination so the consignee can collect the cargo, usually after the bill of lading is presented or released and charges are paid.

Demurrage

A charge by the shipping line for keeping a full container at the port or terminal beyond the free time allowed, before it is picked up (compare detention).

Denied Party Screening

Checking the buyer, consignee, banks and other parties to a sale against government sanctions and restricted-party lists before shipping, for example the US Consolidated Screening List; a possible match calls for more checks, not an automatic refusal.

Detention

A charge by the shipping line for keeping its container (empty or full) outside the port beyond the free time allowed, before it is returned (compare demurrage).

Discrepancy (L/C)

A mismatch between the presented documents and the terms of the credit, or between the documents themselves, that allows the bank to refuse payment.

DPU (Delivered at Place Unloaded)

Incoterms rule: the seller delivers the goods unloaded at the named place of destination; the buyer handles import clearance and pays import duties and taxes.

Dual-Use Goods

Goods, software and technology that can serve both civil and military purposes, such as certain chemicals, electronics and machine tools; exporting them can need a licence under national export control lists.

Dumping / Anti-Dumping Duty

An extra duty imposed when an imported product is sold below its normal value in a way that harms the domestic industry of the importing country.

Dunnage

Material such as wood, airbags or cardboard used to fill gaps and stop cargo moving inside a container. Wooden dunnage in international shipments must meet ISPM 15.

Duty (Import Duty)

A tax charged by the importing country's customs on goods brought in, usually a percentage of the customs value; the rate depends on the product's HS code and country of origin.

Duty Drawback

A refund of import duty paid on goods or materials that are later exported, either unchanged or after processing into another product. Conditions, time limits and proof differ by country.

ECCN and EAR99

In US export controls, an Export Control Classification Number (ECCN) places an item on the Commerce Control List; an item subject to the EAR but not on the list is EAR99 and in most cases needs no licence, except for an embargoed destination, a restricted party or a prohibited end use.

EORI Number

Economic Operators Registration and Identification number: the ID businesses need for customs declarations in the EU and in the UK, where numbers start with GB or XI. It starts with a country code.

EPR (Extended Producer Responsibility)

A system that makes producers pay for collecting and recycling their packaging or products after use; in the EU, sellers register in each country's producer register, through an authorised representative if they are not established there.

ETA / ETD

Estimated time of arrival and estimated time of departure of a vessel, flight or truck. They are the carrier's estimates and can change; the on-board date on the bill of lading, not the ETD, shows when the goods were shipped.

EUDR (EU Deforestation Regulation)

EU rules requiring cattle, cocoa, coffee, oil palm, rubber, soya and wood products to be deforestation-free, legally produced and covered by a due diligence statement, applying from 30 December 2026.

Exchange Rate

The rate at which one currency converts into another; check it before quoting or invoicing in a currency different from your own.

Export Credit Insurance

Insurance that pays the exporter if a foreign buyer does not pay for commercial reasons, such as insolvency, or political reasons, such as transfer restrictions.

Export Licence

Government permission needed to export certain goods, such as dual-use items, military goods, some chemicals, or goods to sanctioned destinations. Whether you need one depends on the product's control classification, the destination, the end user and the end use.

EXW (Ex Works)

Ex Works: an Incoterms rule where the seller's only obligation is to make the goods available at their own premises — the buyer arranges and pays for everything from there, including export clearance.

FAS (Free Alongside Ship)

Incoterms rule: the seller delivers when the goods are placed alongside the vessel named by the buyer at the named port of shipment; for sea and inland waterway transport only.

FCA (Free Carrier)

Free Carrier: an Incoterms rule where the seller delivers the goods, cleared for export, to a carrier or place named by the buyer.

FDA Prior Notice

Advance notice to the US FDA of every shipment of food for humans or animals coming into the United States, including samples, filed electronically before arrival; food without adequate prior notice is held at the port of entry.

FOB (Free on Board)

Free on Board: an Incoterms rule, used for sea freight only, where the seller's risk and cost transfer once the goods are loaded on board the vessel at the named port.

Forfaiting and Factoring

Ways to get paid early by selling export receivables: forfaiting buys a single larger receivable on medium- or long-term credit without recourse, usually backed by a bank-avalised bill of exchange or a letter of credit; factoring is a recurring service for short open-account invoices.

Free Time

The number of days a container may stay at the terminal (before demurrage) or with the importer (before detention) without charge, set in the carrier's tariff or the freight contract.

Free Trade Zone (FTZ)

An area treated as outside the customs territory for duty purposes, where goods can be stored, processed or assembled without paying import duty until they enter the domestic market. Names and rules vary by country (free zone, foreign-trade zone, special economic zone).

Freight Forwarder

An agent who arranges transport, documentation and customs formalities on behalf of a shipper or consignee, without necessarily owning the ships, trucks or aircraft used.

Freight Prepaid / Freight Collect

Prepaid means the shipper pays the main freight at origin, as is normal under CFR, CIF, CPT, CIP and the D rules; collect means the consignee pays at destination, as is normal under EXW, FCA, FAS and FOB. The notation on the bill of lading should match the Incoterms rule.

FTA (Free Trade Agreement)

Free Trade Agreement: a treaty between countries that reduces or removes import duty on qualifying goods traded between them, subject to meeting the agreement's rules of origin.

General Average

A maritime rule under which, when sacrifices are made or costs incurred to save a ship and its cargo, for example after a fire or grounding, every cargo owner pays a share, even if its own goods are undamaged; cargo is released only against security, which cargo insurance usually provides.

GPSR (General Product Safety Regulation)

EU Regulation 2023/988, applying since 13 December 2024, which requires an EU-based responsible economic operator and product and contact details for consumer products sold in the EU.

Gross Weight / Net Weight

Gross weight is the total weight including packaging; net weight is the weight of the goods alone. Both are shown per carton and in total on most packing lists.

GSP (Generalized System of Preferences)

Generalized System of Preferences: a program under which developed countries give reduced or zero tariffs to goods from eligible developing countries, without a full free trade agreement.

Halal Certificate

A certificate that a product meets Islamic halal requirements; in Indonesia, food, beverages and cosmetics must be halal certified, imported ones included, with the deadlines for imported food and beverages and for cosmetics moved from October 2026 to October 2028.

HBL / MBL (House and Master B/L)

The master bill of lading (MBL) is issued by the shipping line to the forwarder or NVOCC; the house bill of lading (HBL) is issued by the forwarder to the actual shipper. The consignee needs the right one released to collect the cargo.

HS Code

Harmonized System code: the standardized product classification code used worldwide to determine import duty, trade statistics and licensing requirements.

HTS, Schedule B, CN and TARIC

National extensions of the HS code: the US import (HTS) and export (Schedule B) numbers, and the EU Combined Nomenclature (CN) and TARIC codes.

ICS2 and ENS (Entry Summary Declaration)

The EU's pre-arrival safety and security system, in which carriers and other parties file an entry summary declaration (ENS) before goods arrive.

Importer of Record (IOR)

The party responsible for the import declaration: making sure the goods comply and paying the duties and taxes. Under DDP the seller acts as importer of record or arranges one; under the other Incoterms rules it is normally the buyer.

In triplicate (in duplicate, in two copies)

How many copies of a document are required, most often under a letter of credit: "commercial invoice in triplicate" means three. Under UCP 600 article 17(e), terms such as "in duplicate", "in two fold" or "in two copies" are met by at least one original and the rest as copies, unless the document itself indicates otherwise.

Incoterms

A set of standard trade terms (EXW, FOB, CIF, DAP and others) published by the ICC that define who — buyer or seller — handles transport, insurance, risk and customs clearance, and at what point.

Institute Cargo Clauses (ICC A, B, C)

Standard marine cargo insurance terms: ICC (A) covers all risks except exclusions, ICC (B) and (C) only named perils; CIF requires at least ICC (C) and CIP ICC (A), for 110% of the price.

Insurance Certificate

Evidence that a shipment is insured, usually under an open cargo policy, showing the insured value, the cover (for example Institute Cargo Clauses A) and where claims are payable; the seller provides it under CIF and CIP.

Inward Processing

A customs procedure that lets goods be imported without paying duty and import VAT for processing or repair, on condition that the processed products are re-exported.

IOSS (Import One-Stop Shop)

The EU VAT scheme for goods sold to consumers in parcels worth up to EUR 150: the seller or marketplace charges EU VAT at checkout and declares it in one monthly return, so the parcel is cleared without collecting import VAT on delivery.

ISBP (International Standard Banking Practice)

The ICC's guidance on how banks examine documents under UCP 600; widely followed in letter of credit practice.

ISF (Importer Security Filing, 10+2)

The US Customs and Border Protection rule that requires the importer to file data on ocean shipments at least 24 hours before the cargo is loaded on the vessel bound for the US. Late or missing filings can lead to penalties.

ISO Size and Type Code (22G1, 45G1)

The 4-character code under ISO 6346 marked on each container: the first character gives the length, the second the height and the last two the type, so 22G1 is a standard 20 ft general purpose container and 45G1 a 40 ft high cube.

ISPM 15 Mark

The mark on wood packaging such as pallets and crates showing it was treated by an approved method, such as heat treatment, under the international standard ISPM 15.

Issuing, Advising and Confirming Bank

The issuing bank opens the letter of credit, the advising bank passes it to the seller, and a confirming bank adds its own undertaking to pay.

L/C (Letter of Credit)

Letter of Credit: a bank's conditional payment guarantee to the seller, released only when the seller presents documents that strictly match what the letter of credit requires.

Landed Cost

The total cost of getting goods from the seller to the buyer's door, cleared through customs: goods value, freight and insurance (CIF), plus import duty, tax and handling fees.

LCL / FCL

LCL (Less than Container Load) means a shipment shares container space with other shippers' cargo; FCL (Full Container Load) means the shipper uses an entire container alone.

Letter of Indemnity (LOI)

A letter in which a party promises to compensate a carrier or another party for any loss if it acts without the usual document, for example releasing cargo without the original bill of lading. Carriers often ask for a bank guarantee with it.

Limited Quantity (LQ)

Dangerous goods in small inner packagings, such as perfume bottles, that may be shipped under simpler packing, marking and document rules within the limits set by the IMDG Code, the IATA Dangerous Goods Regulations or ADR. The package carries the limited quantity mark.

Lithium Battery UN Numbers (UN3480, UN3481, UN3090, UN3091)

The UN numbers for lithium-ion (UN3480, UN3481) and lithium metal (UN3090, UN3091) batteries, shipped on their own or packed with or contained in equipment; each brings strict air and sea rules.

MAWB / HAWB (Master / House Air Waybill)

The master air waybill is issued by the airline to the forwarder for a consolidated shipment; the house air waybill is issued by the forwarder to each shipper in it.

MFN and Preferential Tariff Rates

The MFN rate is the standard duty a WTO member applies to imports from other members; a preferential rate is lower, set by a trade agreement or preference scheme, and needs proof of origin.

MT103 and pacs.008 (Payment Proof)

The SWIFT message for a customer's cross-border transfer: the MT103 until November 2025, now the ISO 20022 pacs.008. Buyers often send a copy as proof of payment, and its UETR reference lets banks trace the transfer, but only the credit to your account shows the money has arrived.

Named Place (Incoterms)

The place written after an Incoterms rule, such as FOB Busan or DAP Lyon warehouse. It fixes where delivery happens or where costs pass to the buyer, so it should be as precise as possible and followed by "Incoterms 2020".

No Commercial Value (Samples)

Wording for goods sent free of charge, such as product samples. It means no payment, not zero value: customs still needs a realistic value on the invoice to assess duties and taxes.

Notify Party

A party (in addition to the consignee) that the carrier notifies when a shipment arrives, often a customs broker or the buyer's agent.

NVOCC

Non-Vessel Operating Common Carrier: a company that issues its own bills of lading and sells ocean transport without operating ships, buying space from shipping lines. In the US, NVOCCs are licensed or registered with the Federal Maritime Commission (FMC).

Ocean Freight Surcharges (GRI, PSS, LSS)

Charges added to the base ocean freight rate, such as the general rate increase (GRI), the peak season surcharge (PSS), the low sulphur surcharge (LSS) and the bunker (BAF) and currency (CAF) adjustment factors.

On Board Notation

A dated note on a 'received for shipment' bill of lading confirming that the goods were loaded on a named vessel. Under a letter of credit, the on-board date is treated as the date of shipment.

Open Account

Payment terms where the seller ships and sends the documents directly to the buyer, who pays at an agreed date after shipment or delivery, for example 30 or 60 days. It is the easiest for the buyer and the riskiest for the seller, so it is often combined with credit insurance.

OUR, SHA and BEN (Bank Charges)

Codes on an international transfer that say who pays the bank fees: OUR, the sender pays them all; SHA, each side pays its own bank; BEN, the beneficiary pays them all, so it receives less than was sent.

Packing List

A detailed list of a shipment's cartons, contents, quantities, weights and dimensions, used by the carrier, customs and the buyer to check what actually arrived.

Pallet

A flat platform, usually of wood or plastic, on which cartons are stacked for forklift handling; common sizes differ by region, such as 1200 x 800 mm in Europe and 48 x 40 in in the United States.

Per Diem (Container)

A daily charge for keeping a carrier's container beyond the free time, usually outside the terminal; US rules treat per diem charges as demurrage or detention.

Phytosanitary Certificate

An official certificate from the exporting country's plant protection organization stating that plants or plant products were inspected and meet the importing country's plant health requirements.

POL / POD (Port of Loading / Discharge)

The port where the goods are loaded on the vessel and the port where they are unloaded. Both appear on the bill of lading and are often written with their UN/LOCODE, such as KRPUS for Busan.

Postponed VAT Accounting

A scheme that lets a VAT-registered importer declare import VAT on its VAT return instead of paying it to customs at clearance; the United Kingdom, Ireland and several other European countries offer it under different names.

PPWR (EU Packaging Regulation)

The EU Packaging and Packaging Waste Regulation (EU) 2025/40, applicable from 12 August 2026, which sets substance limits and conformity, marking, labelling and recycling rules for all packaging placed on the EU market.

Pre-shipment Inspection (PSI)

A check of quality, quantity or compliance before the goods leave, usually by an inspection company. Some importing countries require it to issue a certificate of conformity, for example under Kenya's PVoC or Nigeria's SONCAP.

Preferential Origin

Origin that meets the rules of a trade agreement or preference scheme, so the goods can pay a lower or zero duty when the importer claims it with the right proof (a certificate or a statement on origin). Non-preferential origin only states the country where the goods were made.

Proforma Invoice

A preliminary invoice sent before shipment, used by the buyer to arrange payment or an import licence — not a demand for payment and not used to clear the goods through customs.

Purchase Order (PO)

The buyer's written order stating the goods, quantity, price, delivery terms and payment terms; once the seller accepts it, it is the basis of the sale.

Quotation (Price Offer)

A seller's price offer listing the goods, prices, Incoterms rule and named place, payment terms, lead time and validity. Once accepted, it often becomes the basis of the proforma invoice.

Responsible Person (Cosmetics)

Under EU and UK cosmetics law, the person or company established in the EU (or in the UK for Great Britain) who makes sure each cosmetic product complies, keeps its product information file and notifies it (CPNP in the EU, SCPN in Great Britain). A brand based elsewhere must appoint one.

Returned Goods Relief

Relief from import duty for goods that were exported and come back, for example when the buyer rejects them, provided they were not improved abroad and the export can be proved; the UK and EU expect them back within 3 years.

REX (Registered Exporter System)

The EU system in which registered exporters certify the origin of their goods themselves with a statement on origin on the invoice; consignments of originating products up to EUR 6,000 need no registration.

RFQ (Request for Quotation)

A buyer's request to suppliers for a price offer on stated goods, quantities and terms, so that the quotes can be compared on the same basis.

Rules of Origin

The criteria that decide which country a product comes from: wholly obtained, a change in tariff classification (CTC) or a regional value content (RVC) threshold, set by each trade agreement or for non-preferential purposes.

Schedule B Number

The 10-digit US export classification number, based on the first 6 digits of the HS code, used to report exports in the Electronic Export Information (EEI).

SDS (Safety Data Sheet, formerly MSDS)

The 16-section document that describes a product's hazards, safe handling and transport classification. Forwarders read Section 14 to see whether the product ships as dangerous goods.

Sea Waybill

A non-negotiable transport document for sea cargo: the carrier releases the goods to the named consignee without an original being presented. It is fast and suits trusted buyers or prepaid sales, but it is not a document of title, so it cannot be used to hold the goods until payment.

Section 301 / Section 232 Tariffs

Extra US import duties imposed under two laws: Section 301 against a country's unfair trade practices and Section 232 on imports that threaten national security, such as steel and aluminium. They are added to the normal HTSUS rate through Chapter 99 codes.

Shipper

The party that hands the goods to the carrier and is named as shipper on the transport document; it may be the seller, the buyer's agent or a forwarder.

Shipping Instruction (SI)

The instruction the shipper sends to the forwarder or carrier after booking, with the shipper, consignee, notify party, goods description, packages, weights, marks and freight terms. The bill of lading is drawn from it, so errors in the SI become errors on the B/L.

Shipping Mark

The text and symbols printed or stencilled on the outside of an export carton — main mark, destination, order number and carton number — used to identify a shipment without opening it.

Sight L/C and Usance L/C

Under a sight letter of credit the bank pays when it receives complying documents; under a usance credit, by deferred payment or acceptance, it pays at a set time later, such as 90 days after the bill of lading date.

SLI (Shipper's Letter of Instruction)

The exporter's written instructions to its freight forwarder for a shipment: routing, documents, charges and, for US exports, the authority to file the EEI in AES.

Special Containers (Reefer, Open Top, Flat Rack)

Containers for cargo that does not suit a standard box: refrigerated (reefer), without a fixed roof (open top) or without side walls (flat rack).

Standby Letter of Credit (SBLC)

A letter of credit used as a guarantee: the bank pays only if the applicant fails to pay or perform as agreed.

Stuffing and Stripping (Container)

Loading cargo into a container (stuffing) and unloading it (stripping or devanning); the IMO/ILO/UNECE CTU Code gives guidance on safe packing and securing.

Surrender B/L / Telex Release

The shipper returns (surrenders) the original bills of lading to the carrier at origin, or none are issued, and the carrier tells its destination office to release the cargo to the consignee without originals. It is quick but removes the seller's control, so it is normally done after payment.

T/T (Telegraphic Transfer)

Telegraphic Transfer: a same-day or next-day electronic bank transfer, one of the most common ways international trade payments are settled.

Tare Weight and Payload

Tare weight is the weight of the empty container, marked on its door; payload is the most cargo it may carry, its maximum gross mass minus the tare. The VGM includes the tare.

THC (Terminal Handling Charge)

What the terminal or shipping line charges for handling containers at the port, at origin (OTHC) and at destination (DTHC). Who pays which part follows the Incoterms rule and the freight contract.

Transferable and Back-to-Back L/C

Ways for a trader to pay its own supplier from a buyer's credit: a transferable credit lets the first beneficiary transfer it in whole or in part to a second beneficiary, while a back-to-back credit is a separate new credit opened on the strength of the first.

Transshipment

Unloading goods from one vessel or vehicle and reloading them onto another during the journey, for example at a hub port. Letters of credit may allow or prohibit it, and UCP 600 has specific rules on it.

UCP 600

Uniform Customs and Practice for Documentary Credits 600: the ICC's rule set that most letters of credit follow, governing how banks examine documents and handle discrepancies.

UN Number

A four-digit number, such as UN1266, that identifies a dangerous substance or article in transport and appears on the dangerous goods documents and labels.

UN/LOCODE

The United Nations code for trade and transport locations: two letters for the country and three for the place, for example CNSHA for Shanghai or NLRTM for Rotterdam.

US Customs Bond

A contract in which a surety guarantees to US Customs and Border Protection that the importer of record will pay duties, taxes and fees and meet its entry obligations; formal entries need one, for a single entry or as a continuous bond.

VAT / GST

Value Added Tax / Goods and Services Tax: a consumption tax many countries charge on imports, usually calculated on the CIF value plus duty.

VGM (Verified Gross Mass)

The total weight of a packed container (cargo, packing, dunnage and the container's tare weight). Under SOLAS, since 1 July 2016 the shipper must declare it before the container is loaded on a ship.

Volumetric (Dimensional) Weight

A weight worked out from a package's size: length × width × height divided by a carrier factor, for example 5,000 cm³ per kg for express couriers or 6,000 cm³ per kg for IATA air cargo. Carriers charge on whichever is higher, the actual or the volumetric weight.

Weight Certificate

A document stating the gross and net weight of a shipment, issued by the seller or an independent weigher, and often called for in letters of credit.

General definitions for quick reference, not legal or customs advice — exact meanings can vary by country and contract. Where a related free tool or guide exists, the term links to it.

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