Trade Glossary
The language
of China trade.
51 of 51 terms
FOB
Free On Board
Seller delivers goods on board a vessel at the named port of shipment; risk passes when goods are on board.
CIF
Cost, Insurance and Freight
Seller pays cost + insurance + freight to destination port; risk passes when goods are on board at origin.
EXW
Ex Works
Seller makes goods available at their premises; buyer bears all costs and risks from that point.
DDP
Delivered Duty Paid
Seller delivers goods cleared for import at destination; highest obligation on seller.
DAP
Delivered At Place
Seller delivers goods, cleared for export, to a named destination; buyer clears for import.
FCA
Free Carrier
Seller delivers goods, cleared for export, to a carrier named by the buyer.
LCL
Less than Container Load
Consolidated shipment where multiple shippers share container space.
FCL
Full Container Load
Single shipper's goods fill the container.
HS Code
Harmonised System Code
International product classification code used to determine duty, GST and compliance requirements.
BIS
Bureau of Indian Standards
Mandatory Indian certification for specific products (electronics, toys, cement, etc.).
CE
Conformité Européenne
Mandatory marking for specific products entering the EEA, indicating conformity with EU directives.
SASO
Saudi Standards, Metrology and Quality Organisation
Saudi Arabia conformity scheme (SABER portal) for regulated products.
FCC
Federal Communications Commission
US regulator for electronic equipment emitting radio frequency.
RoHS
Restriction of Hazardous Substances
EU directive restricting use of hazardous materials in electronics.
REACH
Registration, Evaluation, Authorisation and Restriction of Chemicals
EU regulation on chemical substances.
AQL
Acceptable Quality Limit
Statistical sampling standard (ANSI Z1.4 / ISO 2859) to accept or reject production lots.
DUPRO
During Production Inspection
Mid-production inspection catching defects before the run completes.
PSI
Pre-Shipment Inspection
Final inspection before sealing the container.
Form E
Certificate of Origin, China-ASEAN
Preferential Certificate of Origin for ASEAN-China FTA benefits.
Form A
GSP Form A
Preferential Certificate of Origin for GSP beneficiary countries.
CO
Certificate of Origin
Document proving origin of goods, required for preferential duty rates.
BL
Bill of Lading
Legal document between shipper and carrier; title document.
HBL
House Bill of Lading
Issued by freight forwarder to actual shipper/consignee.
MBL
Master Bill of Lading
Issued by the shipping carrier to the freight forwarder.
Telex Release
Electronic BL release
Authorisation to release cargo at destination without presenting original BL.
Switch BL
Switch Bill of Lading
Second set of BLs issued to change shipper/consignee/port details.
CBM
Cubic Metre
Volume measurement for LCL freight pricing. 1 CBM = 1m × 1m × 1m.
Container · 20ft
Twenty-foot Equivalent Unit
~28 CBM usable. Standard container.
Container · 40ft
Forty-foot Container
~58 CBM usable. Standard.
Container · 40HQ
Forty-foot High Cube
~68 CBM usable. Taller than standard 40ft.
Demurrage
Demurrage charges
Fee charged by carrier for container detention at port beyond free time.
Detention
Container Detention
Fee for holding the container outside the port beyond free time.
ISF
Importer Security Filing (10+2)
US CBP requirement filed 24h before vessel loading.
MSDS
Material Safety Data Sheet
Document detailing chemical product hazards, required for dangerous goods shipping.
COA
Certificate of Analysis
Document verifying product specification, common for chemicals, food, pharma.
Moulding
Mould / Tooling
Custom die or mould used for product manufacturing; ownership should be negotiated.
MOQ
Minimum Order Quantity
Smallest quantity a factory will produce in a single order.
MPQ
Minimum Packaging Quantity
Smallest carton packing quantity.
NDA
Non-Disclosure Agreement
Contract to protect confidential information, critical for OEM/ODM.
PI
Proforma Invoice
Draft invoice issued before confirming an order.
TT
Telegraphic Transfer
Bank wire transfer, standard payment method for China trade.
LC
Letter of Credit
Bank-issued payment guarantee; reduces non-performance risk.
Incoterms
International Commercial Terms
ICC-published rules defining delivery, risk and cost responsibilities (v.2020 current).
FEMA
Foreign Exchange Management Act (India)
India's regulatory framework for foreign exchange transactions.
IEC
Importer Exporter Code (India)
Mandatory 10-digit code for any Indian entity importing/exporting.
AD Code
Authorised Dealer Code
Bank code required for customs clearance in India.
CHA
Customs House Agent
Licensed agent for customs clearance at destination port.
ICD
Inland Container Depot
Dry port for customs clearance, away from seaport.
CFS
Container Freight Station
Facility for stuffing/destuffing LCL cargo near the seaport.
Haz / DG
Hazardous / Dangerous Goods
Products requiring IMDG-compliant shipping (batteries, chemicals).
Re-export
Re-exportation
Importing with intent to export, common in UAE free zones for 0% duty.
