Importers and Exporters Industry Terminology

AEO (Authorized Economic Operator)

A trusted-trader status granted by customs to companies with strong compliance and security, providing benefits like fewer inspections and expedited clearance.

Our AEO status reduced exam rates; Buyer asked if the supplier is AEO-certified; Use the AEO fast-track lane at import.

Air Waybill (AWB)

A non-negotiable transport document issued by an airline or its agent serving as receipt of goods and evidence of the contract of carriage by air.

Share the AWB number so the consignee can track; AWB shows freight prepaid; Airline asked for a corrected AWB.

Anti-dumping Duty (ADD)

An additional tariff imposed on imports sold below fair market value to protect domestic industry.

ADD applies to certain aluminum extrusions; Check cash deposit rates under ADD; We avoided ADD by sourcing elsewhere.

ATA Carnet

An international customs document that allows temporary admission of goods without paying duties or taxes.

We used an ATA Carnet for trade show samples; Customs validated the Carnet on exit and entry; The Carnet saved us from posting a bond.

Bill of Lading (B/L)

The ocean carriage document acting as a receipt, evidence of contract, and document of title (if original/negotiable).

Release cargo against the original B/L; Request a switch B/L due to shipper change; Use a sea waybill when no title transfer is needed.

Bonded Warehouse

A secure facility where imported goods can be stored under customs control without duty or tax until released or re-exported.

Store under bond to defer VAT; Perform kitting in a bonded warehouse; Re-export from bond to avoid duties.

Booking Confirmation

Carrier or forwarder confirmation that space has been reserved on a vessel or flight, showing cut-offs, routing, and equipment.

The booking shows a CY cutoff of Friday; The shipment was rolled despite a confirmed booking; We requested a booking amendment for a 40HC.

C-TPAT

A voluntary U.S. supply chain security program that can reduce inspections and speed customs processing for certified partners.

We passed our C-TPAT validation; Ask suppliers for their C-TPAT procedures; C-TPAT status helped during the port surge.

Cargo Manifest

A detailed list of all cargo on a vessel, aircraft, or vehicle, typically filed electronically with customs pre-arrival.

File a manifest amendment to correct weights; The AMS manifest was rejected; Manifest shows hazardous UN numbers.

Certificate of Origin (CO)

A document certifying the country of origin of goods; used for non-preferential and preferential (FTA) tariff treatment.

Claim USMCA with a valid origin certification; Chamber issued a non-preferential CO; Customs requested origin support documents.

CFS (Container Freight Station)

A facility where LCL cargo is consolidated for export or deconsolidated for import.

Deliver LCL cargo to the CFS by the cutoff; CFS handling charges apply on import; Pickup from the CFS with warehouse receipt.

CIF (Cost, Insurance and Freight)

Incoterm under which the seller arranges and pays for cost, minimum insurance, and freight to the named port; risk transfers when goods are on board at origin.

Quote CIF Hamburg for the buyer; Policy covers CIF value plus 10 percent; They prefer FOB over CIF.

Commercial Invoice

The core customs document showing seller, buyer, description, HS code, quantity, value, currency, and Incoterms.

Customs valuation uses the commercial invoice; The invoice must include the Incoterms and place; We corrected the currency on the invoice.

Consignee

The party receiving the goods, shown on the bill of lading or air waybill; may or may not be the importer of record.

Change of consignee required a telex release; Broker needs the consignee tax ID; Notify party differs from consignee.

Customs Broker

A licensed intermediary who files entries, pays duties, and liaises with customs on behalf of importers and exporters.

Grant POA to the customs broker; The broker classified the product under HS 3926; Brokerage fee applies per entry.

DAP (Delivered at Place)

Incoterm where the seller delivers to a named place at destination, not cleared for import; buyer handles import and duties.

Quote DAP consignee warehouse; Buyer pays duty and VAT under DAP; Switched from DDP to DAP to reduce risk.

DDP (Delivered Duty Paid)

Incoterm where the seller delivers at destination and bears all costs including import clearance, duties, and taxes.

DDP price includes local VAT; DDP can be risky for restricted goods; We used a local agent to handle DDP.

Demurrage

A charge for using a container within the terminal beyond free time.

Demurrage accrued due to customs hold; Negotiate more free days to limit demurrage; We paid three days of demurrage.

Detention

A charge for keeping a carrier’s container outside the terminal beyond the allowed free time.

Return empties quickly to avoid detention; Detention started after pickup; Line billed detention separately from demurrage.

Duty Drawback

A refund of duties and taxes paid on imported goods that are subsequently exported or destroyed under customs control.

Filed drawback on re-exported parts; Broker handles unused merchandise drawback; Keep records to substantiate drawback claims.

EAR (Export Administration Regulations)

U.S. regulations administered by BIS covering dual-use items, technology, and some military items not under ITAR.

The item is EAR99 with no license required; Consider de minimis and direct product rules; Screen end use and end users under EAR.

ECCN (Export Control Classification Number)

An alphanumeric code on the Commerce Control List used to determine export license requirements.

Classify under ECCN 5A992; License exception ENC may apply; A technical note changes the ECCN.

EDI (Electronic Data Interchange)

Standardized electronic exchange of business documents such as POs, invoices, bookings, and shipment status.

Send 204 booking and 214 status via EDI; Retailer requires 856 ASN; EDI reduced manual keying errors.

EORI (Economic Operators Registration and Identification)

An EU registration number required for customs declarations and interactions.

Obtain an EORI before importing into the EU; GB EORI is needed post-Brexit; Put the EORI on the entry and invoice.

ETA/ETD (Estimated Time of Arrival/Departure)

Projected times for planning and scheduling shipments and drayage.

The ETA slipped by two days; ETD moved due to port congestion; Share weekly ETA updates with the buyer.

EXW (Ex Works)

Incoterm where the buyer takes delivery at the seller’s premises and handles all export and import formalities.

EXW prices exclude loading; Switch to FCA so the seller clears export; EXW is risky if the buyer lacks export capability.

FAS (Free Alongside Ship)

Incoterm where the seller delivers alongside the vessel at the named port of shipment.

FAS is common in bulk commodities; Buyer pays for loading and ocean freight; Use FAS New Orleans for grain.

FCA (Free Carrier)

Incoterm where the seller delivers the goods, cleared for export, to the carrier at a named place.

FCA seller loads at their premises; FCA forwarder’s CFS as delivery point; Prefer FCA over EXW for export control.

FCL (Full Container Load)

A shipment that uses an entire container for one shipper and one consignee.

Book 1x40HC FCL to reduce damage risk; FCL rate beats LCL on volume; Devanning FCL at consignee’s DC.

FOB (Free on Board)

Incoterm where the seller delivers when goods are on board the vessel at the port of shipment; risk passes at loading.

FOB Shanghai with buyer arranging ocean freight; Record on-board date for risk transfer; Use FCA for containers instead of FOB.

Foreign Trade Zone (FTZ)

A designated area in or near a U.S. port where goods are treated as outside U.S. customs territory for duty purposes.

Assemble in an FTZ to defer duties; Weekly entry saves MPF; File a zone admission before receipt.

Freight Forwarder

A logistics intermediary that arranges international transport, documentation, and consolidation but generally doesn’t operate vessels.

The forwarder booked space with two carriers; Provide the SLI to your forwarder; The forwarder managed our LCL consolidation.

General Average

A maritime principle where all cargo interests proportionally share losses from a voluntary sacrifice to save the voyage.

GA declared after the vessel fire; We posted GA security to release containers; Insurance handled our GA contribution.

GSP (Generalized System of Preferences)

A tariff preference program granting reduced duties for eligible goods from designated developing countries.

Claimed GSP for duty savings; Product not eligible under GSP rules; GSP lapse increased landed cost.

Harmonized System (HS) Code

A standardized numerical classification of goods used worldwide for tariffs, trade statistics, and controls.

Classify the product under HS 8507.60; Request an advance ruling on HS; Misclassification can trigger penalties.

House Air Waybill (HAWB)

A forwarder-issued air waybill covering a shipper’s portion of a consolidated air shipment, linked to a MAWB.

Track the shipment by HAWB number; HAWB must match the MAWB details; HAWB shows freight collect.

Importer of Record (IOR)

The party legally responsible for import compliance, product conformity, and payment of duties and taxes.

The buyer acts as IOR in the EU; IOR must hold a local tax ID; A 3PL can provide IOR services in some markets.

Incoterms

ICC rules that define delivery obligations, cost allocation, and risk transfer between seller and buyer; they do not govern title or payment terms.

Use Incoterms 2020 with a named place; Training on choosing the right Incoterm; Contracts must state Incoterms clearly.

ISPM 15

An international standard requiring heat treatment or fumigation and marking of solid wood packaging to prevent pest spread.

Pallets must bear the ISPM 15 stamp; Shipment rejected for non-compliant crates; Use engineered wood to avoid ISPM 15.

ITAR (International Traffic in Arms Regulations)

U.S. export controls covering defense articles, technical data, and defense services administered by DDTC.

Part is ITAR-controlled; Company registered with DDTC; Export requires an ITAR license to the end user.

LCL (Less than Container Load)

A shipment that does not fill a full container and is consolidated with other cargo at a CFS.

LCL has longer transit due to consolidation; Higher handling risk compared to FCL; Deliver to CFS before cutoff.

Letter of Credit (LC)

A bank undertaking to pay the seller upon presentation of compliant documents, typically governed by UCP 600.

Request a confirmed LC for higher-risk buyers; The bank found discrepancies in LC documents; Sight LC versus usance LC terms.

NVOCC (Non-Vessel-Operating Common Carrier)

A company that issues house bills of lading and contracts space with vessel-operating carriers.

The NVOCC issued the HBL; NVOCC provided flexible space during peak; Check the NVOCC tariff filing.

OBL (Original Bill of Lading)

A negotiable paper bill of lading required for cargo release unless a telex release or sea waybill is used.

Surrender the OBL at destination; Bank holds the OBL under an LC; Three originals were issued.

OFAC (Office of Foreign Assets Control)

U.S. authority administering economic and trade sanctions, including the SDN list screening.

Screen all parties against OFAC lists; Payment was blocked due to an OFAC match; Apply for an OFAC license if applicable.

Packing List

A document itemizing contents, packaging, weights, and dimensions to aid customs, handling, and receiving.

Provide a detailed packing list with HS codes; Warehouse checked cartons against the packing list; Mismatch delayed customs clearance.

Phytosanitary Certificate

An official certificate attesting that plants, plant products, or wood meet importing country health standards.

Seeds require a phyto certificate; Quarantine demanded the original phyto; Forestry products shipped with phyto and treatment record.

Proforma Invoice

A preliminary invoice used for quotes, import permits, and opening LCs; not a demand for payment.

The importer applied for a license using the proforma; Bank opened an LC based on the proforma; Supplier revised the proforma after changes.

SOLAS VGM (Verified Gross Mass)

A safety rule requiring the shipper to provide the verified gross mass of a container before loading.

Submit VGM via the carrier portal; Missed VGM cutoff caused roll-over; Used certified weighbridge for VGM.

SPS/TBT (Sanitary and Phytosanitary and Technical Barriers to Trade)

WTO frameworks for health and safety measures and technical regulations that can affect market access.

Food imports face SPS inspections; TBT compliance required CE marking; Provide conformity assessment under TBT rules.