Exim Glossary

1. Air Waybill (AWB)

• A document issued by an airline that serves as a receipt for the shipper and a contract for the transportation of goods by air.

2. Bill of Lading (B/L)

• A legal document between the shipper and carrier that details the type, quantity, and destination of the goods being transported.

3. Certificate of Origin (COO)

• A document that certifies the country in which the goods were manufactured, often required by customs authorities.

4. Cost, Insurance, and Freight (CIF)

• An Incoterm where the seller is responsible for the cost of goods, insurance, and freight to transport goods to the buyer’s destination.

5. Customs Declaration

• A document that provides details about goods being imported or exported, required by customs authorities for assessment of duties and compliance.

6. Export License

• An official authorization required to export certain goods, often necessary for items subject to government regulations.

7. Freight Forwarder

• A third-party logistics provider that arranges the transportation of goods on behalf of shippers, handling logistics and documentation.

8. Free on Board (FOB)

• An Incoterm indicating that the seller delivers goods on board a vessel, with risk transferring to the buyer once the goods are on board.

9. Harmonized System (HS) Code

• An internationally standardized system of names and numbers used to classify traded products for customs purposes.

10. Import Duty

• A tax imposed by a government on imported goods, calculated as a percentage of the value of the goods.

11. Incoterms

• A set of international rules that define the responsibilities of sellers and buyers in international transactions regarding shipping and delivery.

12. Letter of Credit (L/C)

• A financial document issued by a bank guaranteeing that a seller will receive payment as long as certain conditions are met.

13. Proforma Invoice

• A preliminary invoice sent to buyers in advance of a shipment, detailing the goods, their value, and other important specifications.

14. Quota

• A government-imposed limit on the quantity or value of goods that can be imported or exported during a specific time period.

15. Shipping Manifest

• A document that lists all the items being shipped, including details about the shipment’s contents, destination, and handling instructions.

16. Supply Chain

• The entire system of production, processing, and distribution of goods, from raw materials to the final consumer.

17. Tariff

• A tax imposed on imported goods, used to regulate trade and protect domestic industries.

18. Trade Balance

• The difference between a country’s exports and imports, indicating whether a country has a trade surplus or deficit.

19. Trade Agreement

• A contractual arrangement between countries that outlines the terms of trade, often reducing tariffs and other barriers.

20. Value Added Tax (VAT)

• A consumption tax placed on a product at each stage of production and distribution, commonly used in many countries.

21. Cross-Border Trade

• The exchange of goods and services between businesses or individuals in different countries, often involving complex regulations.

22. Full Container Load (FCL)

• A shipping term indicating that a shipment occupies an entire container, typically used for larger shipments.

23. Less than Container Load (LCL)

• A shipping term for shipments that do not fill an entire container and are consolidated with other shipments.

24. Customs Broker

• A professional who assists importers and exporters in meeting federal requirements for international shipments, ensuring compliance with regulations.

25. Export Credit Insurance

• Insurance that protects exporters against the risk of non-payment by foreign buyers, covering losses due to political or commercial risks.

26. Incoterms 2020

• The latest version of the International Commercial Terms, updated to reflect changes in global trade practices and logistics.

27. Shipping Container

• A standardized container used for transporting goods, designed for easy loading, unloading, and transfer between different modes of transport.

28. Trade Facilitation

• Efforts to simplify and streamline international trade processes, reducing barriers and improving efficiency in customs procedures.

29. Origin Certification

• A process that verifies the country of origin of goods, often required for preferential tariff treatment under trade agreements.

30. E-commerce Exporting

• The process of selling goods and services online to international customers, which involves navigating various regulations and logistics.