Import glossary: Incoterms®, logistics, customs and quality

FOB, EORI, AQL, B/L, DDP, 3PL, GPSR… More than 100 terms a buyer encounters when importing from Asia to Europe, the UK or North America, explained in a few sentences, with a link to the guide that goes further.

127 terms · Updated on October 21, 2026

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127 terms

A

amfori BSCI: Social compliance program of the amfori association: suppliers commit to a code of conduct and are audited, and a single audit report can serve several member buyers. It is based on International Labour Organization (ILO) conventions and on the principles of the OECD (Organisation for Economic Co-operation and Development) and the United Nations.Learn more
Anti-dumping duty: An additional duty imposed when a product is exported at a price below its "normal value" (the price in the home market, or the cost of production plus a margin) and this harms the local industry. It targets a product and a country of origin, sometimes a specific manufacturer; in the EU, these measures are built into TARIC.Learn more
AQLAcceptance Quality Limit: Acceptable Quality Limit, often called Acceptable Quality Level: the percentage of defective units considered acceptable on average for a production run, used to select the sampling plan. It is not a guarantee of the defect rate in a given batch. Example: a batch of 4,000 units inspected at general level II gives a sample of 200 units; at AQL 2.5, the batch is accepted with up to 10 defective units and rejected from 11 onward.Learn more
AWBAir Waybill: Air waybill (AWB): document issued by the airline or the freight forwarder that confirms acceptance of the shipment and formalizes the contract of carriage. Its number is also used to track the shipment.Learn more

B

B/LBill of Lading: Ocean bill of lading: a document issued by the carrier that acknowledges receipt or loading of the goods and evidences the contract of carriage. In its original negotiable form, it represents the goods themselves: whoever holds the originals can obtain delivery of them.Learn more
BAFBunker Adjustment Factor: A fuel surcharge added to ocean freight to pass on changes in the price of ship fuel. It changes from one period to the next: always compare freight quotes with surcharges included.Learn more
Bonded warehouse: A licensed warehouse where imported goods are stored under customs supervision without being placed on the market. Import duties and VAT are in principle only due when they leave for the market. Useful for smoothing cash flow or serving several countries from a single stock.Learn more
BTI / RTCBinding Tariff Information: A binding tariff ruling: a written decision from an EU customs authority on a product's customs code, valid for three years and binding throughout the Union. The UK issues Advance Tariff Rulings and US customs issues binding rulings.Learn more
Business license营业执照: Operating license of a Chinese company, which states among other things its registered name, legal representative, capital and authorized scope of business. Reading it shows whether you are dealing with a manufacturer or a trader.Learn more

C

Canton Fair: China Import and Export Fair, held in Guangzhou (Canton) every spring and fall since 1957. It lets you meet many suppliers in a short time, provided you then verify who actually manufactures.Learn more
CAPACorrective and Preventive Action: Corrective and preventive action plan requested from a supplier after a defect, a failed inspection or an audit: root cause, correction, owner, deadline and evidence of implementation. A tracked CAPA keeps the same defect from coming back on the next order.Learn more
CARMCBSA Assessment and Revenue Management: The Canada Border Services Agency's assessment and revenue management system, now the official system for importers in Canada. To import commercial goods, you need an account on its client portal, a 9-digit business number (BN9) and an import program account (RM), which together form a 15-character identifier (BN15). A non-resident importer first obtains its business number from the Canada Revenue Agency.Learn more
CBAMCarbon Border Adjustment Mechanism: The EU's carbon border adjustment mechanism, covering cement, iron and steel, aluminum, fertilizers, electricity and hydrogen (as of September 2026). Since January 1, 2026 (definitive regime), an importer bringing in more than 50 tonnes of these goods per year must be an authorized CBAM declarant. They report the emissions embedded in the products and buy the corresponding CBAM certificates. Below that annual threshold, these obligations do not apply.Learn more
CBMCubic Meter: Cubic meter, the unit of volume for sea freight. In LCL, pricing is most often by volume, except for very dense goods charged by weight: reducing carton size therefore lowers the bill.Learn more
CBPU.S. Customs and Border Protection: The United States customs and border protection agency, part of the Department of Homeland Security. For an importer, it is the administration that receives declarations, inspects goods, has the final say on tariff classification and collects duties and fees (MPF, HMF).Learn more
CBSA / ASFCCanada Border Services Agency: Canada's customs administration. It controls imported goods and collects duties and taxes, including GST; commercial importers declare and pay through its CARM portal, either themselves or through a licensed customs broker.Learn more
CE marking: Marking by which the manufacturer declares that its product complies with all applicable EU legislation (toys, electrical equipment, machinery…). It must first assess conformity, compile the technical file and sign the EU declaration of conformity; the importer must make sure all of this exists.Learn more
CFRCost and Freight: Incoterm reserved for sea and inland waterway transport: the seller pays the freight to the port of destination, but risk passes to the buyer as soon as the goods are on board at the port of shipment. The seller is not required to insure the goods.Learn more
CFSContainer Freight Station: A port warehouse where consolidated cargo is received and then stuffed into a shared container at origin, and destuffed at destination. CFS charges are part of the costs specific to LCL.Learn more
Chinese New Year: The main shutdown period for Chinese factories, whose date varies each year between late January and February; in 2027, it falls on Saturday, February 6. Activity slows for several weeks around the holiday (early departures, late returns, new hires): place orders and inspections well in advance.Learn more
CIFCost, Insurance and Freight: Incoterm reserved for sea and inland waterway transport: the seller pays freight and insurance to the port of destination, but risk passes to the buyer on board the vessel at origin. By default, the required insurance is minimal (Institute Cargo Clauses C): negotiate broader coverage if the goods are valuable.Learn more
CIPCarriage and Insurance Paid To: Incoterm for all modes: the seller pays for transport and insurance to the place of destination, with risk passing to the buyer as soon as the goods are handed to the first carrier. Since Incoterms® 2020, the required insurance is extended (Institute Cargo Clauses (A) or equivalent).Learn more
CLSContainer Loading Supervision: Supervision of container loading at the factory: carton count, packaging condition, match with the packing list, bracing, photos and seal number. It is the last moment when a quantity or SKU error can still be stopped.Learn more
CNCombined Nomenclature: The EU's 8-digit customs nomenclature, based on the Harmonized System and updated every year. It sets the base duty rate in particular; TARIC adds specific measures on top.Learn more
Commercial invoice: The supplier's final invoice, the basis for calculating customs value: seller, buyer, precise description, HS code, quantities, unit prices, Incoterm and origin. A single inconsistency with the packing list or the bill of lading is enough to delay customs clearance.Learn more
Consolidation: Grouping goods from several suppliers in the same warehouse to ship them together, ideally in a full container. Fewer handlings, a single customs clearance, a lower cost per unit: NOVASEA consolidates its clients' orders in China, as close as possible to their factories.Learn more
CPSCConsumer Product Safety Commission: US federal agency responsible for consumer product safety. Depending on the product, the manufacturer or importer issues a certificate of conformity: GCC (General Certificate of Conformity) for general-use products, CPC (Children's Product Certificate) for children's products, the latter based on testing by an accredited third-party lab.Learn more
CPTCarriage Paid To: Incoterm for all modes: the seller pays transport to the place of destination, but risk passes to the buyer as soon as the goods are handed to the first carrier. Insurance is optional and at the buyer's expense.Learn more
Critical defect: A defect that makes the product dangerous or non-compliant with regulations (sharp edge, small detachable part on a toy, insufficient electrical insulation). As a rule, it is tolerated on no piece in the sample: this is known as AQL 0.Learn more
Cross-docking: A warehouse technique where incoming goods are sorted and shipped out almost immediately, without being stored. It is used, for example, to break down a container to several stores or several Amazon warehouses.Learn more
Customs bond: Financial guarantee required by US Customs (CBP), issued by a surety company, covering the importer's duties, taxes and potential penalties. It can cover a single import (single transaction bond) or all imports (continuous bond), including ISF obligations.Learn more
Customs broker: A professional who prepares and files customs declarations on behalf of the importer. In the EU, they act under direct representation (in the client's name and on the client's behalf) or indirect representation (in their own name, on the client's behalf); in France, since January 1, 2018, they must hold the status of registered customs representative (RDE). In the United States, customs brokers are licensed by CBP; in Canada, a licensed customs broker can act for you with the CBSA.Learn more
Customs clearance: All the formalities that allow goods to enter a customs territory: declaration, possible inspections, payment of duties and taxes, then release authorization. Until it is done, the goods stay blocked and storage fees keep running.Learn more
Customs duties: A tax collected at import, usually a percentage of the customs value. Its rate depends on the product's HS code and origin, which is why accurate classification matters.Learn more
Customs value: The value on which duties are calculated, most often the price paid for the goods (transaction value), with certain adjustments. In both the EU and the UK, transport and insurance to the border are added; in the US and, in principle, Canada, international transport is excluded.Learn more

D

DAPDelivered at Place: Incoterm for all modes: the seller delivers the goods at their own cost and risk to the agreed place, ready for unloading. The buyer unloads, clears customs on import and pays duties and taxes.Learn more
DDPDelivered Duty Paid: The Incoterm that places the most obligations on the seller and the fewest on the buyer: the seller delivers at destination, clears import customs and pays duties and taxes. It assumes the seller can act as importer in the destination country (EORI number or IOR status, VAT or local tax registration).Learn more
DDUDelivered Duty Unpaid: An old Incoterm removed by Incoterms® 2010, still quoted out of habit. Its current equivalent is DAP: delivery at destination, duties and taxes payable by the buyer.Learn more
De minimis: Value threshold below which a shipment is exempt from customs duties (situation as of September 2026). In the EU, the exemption for shipments of €150 (≈ $165) or less ended on July 1, 2026. For distance sales declared through IOSS and postal shipments, a provisional €3 (≈ $3.30) duty applies per tariff line of the parcel, regardless of quantity, until July 1, 2028; other small shipments, such as samples sent by express, pay the normal duty. In the UK, shipments of £135 or less remain duty-exempt (VAT is still due), but the government has announced the end of this exemption by March 2029 at the latest. In the United States, the de minimis exemption has been suspended for all origins since August 29, 2025, a suspension maintained by Presidential Proclamation 14388 of February 20, 2026. These rules change fast: check them before every e-commerce project.Learn more
Declaration of ConformityDoC: A document signed by the manufacturer declaring, under its own responsibility, that the product complies with the texts applicable to it, cited one by one together with the standards used. Essential for CE marking (EU declaration) as well as UKCA marking, it must match the product delivered exactly.Learn more
Demurrage: Fees usually charged by the shipping line or the terminal when a full container stays at the port beyond the free days. They add up every day: a delayed customs clearance can cost more than the freight itself.Learn more
Detention: Charges billed when the shipping line's container stays outside the terminal (at your premises or with the carrier) beyond the free time, until it is returned empty. Not to be confused with demurrage, which runs at the terminal; exact definitions vary by carrier.Learn more
DPUDelivered at Place Unloaded: Multimodal Incoterm: the seller delivers at the agreed place and unloads the goods itself, which sets it apart from DAP. It replaced the former DAT (Delivered at Terminal) in Incoterms® 2020.Learn more
DUPRODuring Production Inspection: Inspection during production, carried out when part of the pieces are finished. It lets you correct a recurring defect while there is still time, instead of discovering it on the finished batch.Learn more

E

Entry summaryCBP Form 7501: Summary declaration that accompanies a formal import into the United States: the importer of record or its customs broker declares the classification, value and origin of the goods, as well as the duties owed. It is usually filed electronically in ACE (Automated Commercial Environment), the CBP system; MPF is due upon filing.Learn more
EORIEconomic Operators Registration and Identification: Mandatory identification number for any customs operation in the EU (import, export, transit); it starts with the code of the country that issues it. The UK issues its own EORI, required to bring goods into or out of Great Britain.Learn more
ETAEstimated Time of Arrival: Estimated date the vessel or aircraft arrives at destination. It often shifts along the way: plan customs clearance and delivery on the updated ETA, not the one from the booking.Learn more
ETDEstimated Time of Departure: Estimated departure date of the vessel or aircraft. The goods must be ready, inspected and handed over before the cut-off date, set before the ETD.Learn more
EU responsible person: An operator established in the EU who answers for a product's compliance before the authorities: a manufacturer established in the Union, an importer, an authorized representative appointed in writing or, failing that, a fulfillment service provider. Their name and contact details must appear on the product, its packaging, the parcel or an accompanying document.Learn more
EXWEx Works: Incoterm where the seller simply makes the goods available at its premises. The buyer organizes and pays for everything else, including loading and export customs clearance, which is often complicated to handle from abroad.Learn more

F

Factory audit: A structured visit to a supplier to verify that it exists, that it actually manufactures the goods itself, and that it has the capabilities, quality organization and working conditions it claims. It is done before the first order, then at regular intervals.Learn more
Factory visit: Travel to your suppliers to see production, meet the teams and validate samples and processes. NOVASEA organizes it from the airport to the return flight: reception, hotels, transfers, visit schedule, interpreter and debrief.Learn more
FASFree Alongside Ship: Incoterm reserved for sea and inland waterway transport: the seller delivers the goods alongside the vessel, on the quay at the port of departure, where risk passes to the buyer. It is mainly used for bulk and heavy parcels, rarely for containers.Learn more
FBAFulfillment by Amazon: An Amazon service that stores your products in its fulfillment centers, then picks, packs and ships orders and handles customer service and returns. Shipments to its warehouses must comply with strict prep, packaging and labeling rules.Learn more
FCAFree Carrier: Incoterm for all modes: the seller delivers the goods, cleared for export, to the carrier designated by the buyer at the agreed place. Since 2020, the parties may agree that an "on board" bill of lading be issued to the seller, which facilitates payment by documentary credit.Learn more
FCCFederal Communications Commission: US communications regulator. Electronic devices that emit radio frequencies, intentionally or not, fall under its rules (47 CFR Part 15) and must be authorized, by certification or by supplier's declaration of conformity, before being sold in the United States.Learn more
FCLFull Container Load: A full container reserved for a single shipper. From about 13 to 15 m³, i.e. less than half of a 20-foot container, it often becomes more economical than LCL, with less handling and faster transit. This threshold is recalculated on every quote.Learn more
FNSKUFulfillment Network Stock Keeping Unit: Barcode generated by Amazon (it starts with X) that links each unit to your seller account and to your product in the FBA network. Since March 31, 2026, it is mandatory for resellers; eligible brand owners may use the manufacturer barcode (GTIN). Amazon no longer labels products (since January 1, 2026 in the United States, July 1, 2026 in Europe and the United Kingdom), so have the label applied at the factory.Learn more
FOBFree On Board: Incoterm reserved for sea and inland waterway transport, widely used for purchases in Asia: the seller clears the goods for export and loads them on board at the port of departure; freight, insurance, risk and import are then the buyer's responsibility. For containers, many practitioners prefer FCA, since the goods are handed over at the terminal well before being on board.Learn more
Free time: The number of days a container can remain at the terminal or at the consignee's premises free of charge. Beyond that, demurrage and detention apply: this period is negotiated at booking, especially if customs clearance is likely to take a long time.Learn more
Freight forwarder: Organizes transport end to end: books freight, coordinates pickup, documents, customs clearance and delivery by buying services from carriers. It generally owns neither ships nor aircraft.Learn more

G

Golden sample: A sample approved and signed by the buyer, ideally sealed, that serves as the benchmark for production and for inspection. If there is any doubt about a shade, a finish or a feel, it is the deciding reference.Learn more
GPSRGeneral Product Safety Regulation: Regulation (EU) 2023/988 on general product safety, applicable since December 13, 2024. It requires manufacturers to carry out a risk analysis and maintain technical documentation, and prohibits placing a product on the EU market without a responsible operator established in the Union.Learn more

H

HBLHouse Bill of Lading: Bill of lading issued by the freight forwarder or NVOCC to its client, the actual shipper. This is the document that lets you collect the goods from the freight forwarder, who in turn holds the carrier's MBL.Learn more
HMFHarbor Maintenance Fee: US port fee of 0.125% of the value of commercial cargo loaded on or discharged from a vessel at a US port, unless exempt. It applies to ocean freight only and is added to duties in the landed cost.Learn more
HS codeHarmonized System: Global nomenclature of the World Customs Organization: more than 5,000 groups of goods identified by a 6-digit code, used by more than 200 countries and economies. Each territory then extends it: 8-digit CN and TARIC in the EU, UK Trade Tariff in the United Kingdom, HTS in the United States, Customs Tariff in Canada.Learn more
HTSHarmonized Tariff Schedule: The US tariff schedule, based on the Harmonized System, which gives the duty rate for each product. CBP has the final say on classification; the importer can request a binding ruling.Learn more

I

ICS2Import Control System 2: The EU security system that requires an Entry Summary Declaration (ENS) before goods arrive, and before loading for air freight. Since June 1, 2026, every shipment entering the EU, whatever the mode of transport, must be covered by a valid ENS.Learn more
Import VAT: VAT due on import in the EU or the UK, on top of customs duties. A VAT-registered business recovers it later; check with your declarant whether a mechanism lets you avoid paying it upfront (such as PVA in the UK). The United States has no VAT: sales tax is set at state level and applies to the sale. In Canada, the 5% federal GST is collected on import on the customs value plus duties.Learn more
Incoterms®: Rules of the International Chamber of Commerce (ICC), first published in 1936, which allocate costs, risks and delivery formalities between seller and buyer. The current version, Incoterms® 2020, in force since January 1, 2020, comprises 11 rules: 7 for all modes of transport and 4 for sea and inland waterway transport. Incoterms® is a registered trademark of the ICC.Learn more
Institute Cargo Clauses: Standard clauses for insuring goods in transit. Clauses A offer the broadest cover, clauses C minimal cover limited to major events; CIF and CIP Incoterms® rules refer to them.Learn more
IORImporter of Record: Importer of record: the person in whose name the goods are declared and who is answerable to customs for the accuracy of the documents and the payment of duties, taxes and fees. In the United States, they remain liable even when they use a customs broker.Learn more
IOSSImport One-Stop Shop: The EU one-stop shop for VAT on distance sales to consumers: the seller or marketplace declares and pays VAT on shipments of €150 (≈ $165) or less through this system, and the parcel is exempt from import VAT. Since July 1, 2026, these shipments also bear the provisional €3 (≈ $3.30) customs duty per tariff line (see De minimis).Learn more
ISFImporter Security Filing, "10+2": A security declaration required by US Customs for goods arriving by vessel, in force since January 26, 2009. It must be filed no later than 24 hours before loading at the foreign port; in case of failure, the bond provides for liquidated damages of $5,000 per violation.Learn more
ISO 2859-1: International standard for sampling for inspection by attributes, indexed by AQL. Its tables give, based on batch size and inspection level (general level II is the usual reference), the number of pieces to examine and the number of defects at which the batch is rejected.Learn more
ISO 9001: International standard setting the requirements for a quality management system. A certified factory has documented, audited procedures, which is a good sign but does not guarantee the quality of a batch: verify the certificate with the issuing body and keep your inspections.Learn more

L

L/CLetter of Credit: Documentary credit: the buyer's bank undertakes to pay the supplier if the latter presents documents that comply with the agreed terms (bill of lading, invoice, inspection certificate…). Very secure for both parties, but more costly and more formalistic than a wire transfer: the slightest documentary discrepancy blocks payment.Learn more
Laboratory testing: Tests carried out by a laboratory, preferably independent and accredited, to verify what an inspector cannot check by eye: chemical substances, electrical safety, mechanical strength, food contact. The reports feed the technical file and, in the United States, the CPC certificates.Learn more
Landed cost: Full cost of a product delivered to your warehouse: factory price, transport, insurance, port charges, customs duties, customs clearance, final delivery, quality inspections and non-recoverable taxes. It is this figure, not the FOB price, that determines your margin.Learn more
LCLLess than Container Load: Sea groupage: your cargo shares a container with other shippers' goods. Suited to small volumes, but slower (CFS handling at origin and destination) and more expensive per cubic meter than a full container.Learn more
Lead timeproduction lead time: The time between the order (or sample approval and down payment) and the moment the goods are ready to ship. Add transport, customs clearance and factory shutdowns to get the real time to availability.Learn more

M

Major defect: A defect that prevents normal use of the product or makes it unsellable (faulty function, out-of-tolerance dimension, breakage). For common consumer goods, it is most often inspected at AQL 2.5.Learn more
MBLMaster Bill of Lading: Bill of lading issued by the shipping line to the freight forwarder or NVOCC that booked the space on board. The end buyer generally does not see it: they receive an HBL from their freight forwarder.Learn more
Minor defect: A cosmetic or finish deviation that does not affect use (small scratch, loose thread, slight mark). It is tolerated in larger numbers, often at AQL 4.0.Learn more
Mold / tooling: Tooling specific to your product (injection mold, die, jig), made for you and usually invoiced separately. State in the contract that it belongs to you, where it is stored and that it will not be used for other clients.Learn more
MOQMinimum Order Quantity: The minimum quantity a factory agrees to produce per order, per product or per color. It reflects its setup costs (materials, changeovers, tooling) and is often negotiable in exchange for a slightly higher unit price.Learn more
MPFMerchandise Processing Fee: Processing fee collected by CBP on every formal import into the United States: 0.3464% of the customs value, with a minimum and a maximum revised each fiscal year ($34.58 and $670.86 as of October 1, 2026). It is owed by the importer of record when the entry summary is filed.Learn more

N

NNNNon-disclosure, Non-use, Non-circumvention: A confidentiality agreement suited to China: the manufacturer undertakes not to disclose your information, not to use it for its own account and not to circumvent you with your customers. To be enforceable in China, it is generally advisable to draft it in Chinese and provide for the jurisdiction of a Chinese court.Learn more
NOVASEA Bridge: Collaborative platform by NOVASEA: every order has its project there (milestones, inspection reports and photos, documents, container tracking, messages), shared between you and our teams (project managers, inspectors, logistics specialists). You track progress online without chasing anyone by email.Learn more
NVOCCNon-Vessel Operating Common Carrier: A sea carrier without a vessel: it sells transport under its own bill of lading (HBL) and buys space from shipping lines. In the United States, this activity is regulated by the Federal Maritime Commission (FMC).Learn more

O

ODMOriginal Design Manufacturer: A manufacturer that designs its own models and sells them to several brands, with limited customization (logo, color, packaging). Fast and inexpensive to launch, but the design is not yours and your competitors can sell the same product.Learn more
OEMOriginal Equipment Manufacturer: Manufacturing to your drawings and specifications, under your brand. You control the product and its intellectual property, but development, tooling and MOQs are on you.Learn more
Origin of goods: The "economic nationality" of a product, which is not necessarily the country it ships from. It determines the applicable duties, any measures in force (antidumping, surcharges, prohibitions) and origin marking; a distinction is made between preferential and non-preferential origin.Learn more

P

Packing list: Document detailing, carton by carton, the contents, quantities, weights and dimensions of a shipment. Along with the commercial invoice, it is used for customs clearance, warehouse receiving and loading checks.Learn more
PIProforma Invoice: Provisional invoice issued by the supplier before production: product, price, quantities, Incoterm, lead time and payment terms. Once signed, it often serves as the purchase order and triggers the deposit: read it line by line.Learn more
Pick & pack: Order fulfillment: picking items from stock (pick) then packing and labeling them for shipment (pack). It is the core of a 3PL e-commerce billing model, usually per order and per item.Learn more
PPIPre-Production Inspection: Inspection before production starts: raw materials, components, pre-series sample and the factory's understanding of the specification. It prevents an entire order from being manufactured on the wrong basis.Learn more
PPSPre-Production Sample: Pre-production sample made with the materials, tooling and process of mass production, to be approved before launch. Once approved, it often becomes the golden sample.Learn more
Private label: A product made by a factory but sold under your brand, with your logo, your packaging and sometimes modifications. Faster than a full development, it requires protecting your brand and your files in the country of manufacture.Learn more
Prop 65Proposition 65: California law of 1986 (Safe Drinking Water and Toxic Enforcement Act) requiring a warning to consumers before any exposure to substances recognized by the State as carcinogenic or toxic to reproduction. It applies to products sold in California: specify the substances to avoid in your specification, or plan for the warning.Learn more
PSI / FRIPre-Shipment Inspection / Final Random Inspection: Final inspection, carried out when production is complete and largely packed: AQL sampling, visual, dimensional and functional checks, packaging and markings. It is the last check before you pay the balance to the supplier.Learn more
PVAPostponed VAT Accounting: In the UK, a mechanism that allows a VAT-registered business to declare and reclaim import VAT on the same VAT return, instead of paying it at the time of import. No prior authorization is required, but the declarant must be notified in writing.Learn more

R

REACH: Regulation (EC) No. 1907/2006 on chemical substances, in force since 2007: manufacturers and importers must register with the European Chemicals Agency (ECHA) the substances they place on the market from one tonne per year, and comply with restrictions. For an imported article (textile, plastic, electronics), the practical issue is to verify the absence of restricted substances and the possible presence of substances of very high concern (SVHC).Learn more
RFQRequest for Quotation: A request for pricing sent to several suppliers on the basis of the same specification, to obtain comparable offers (price, MOQ, lead time, Incoterm, payment, tooling). The more precise the request, the more the price gaps can be explained.Learn more
RoHSRestriction of Hazardous Substances: EU Directive 2011/65/EU, which restricts ten hazardous substances (including lead, mercury, cadmium, hexavalent chromium and four phthalates) in electrical and electronic equipment sold in the EU. Compliance is proven through technical documentation, often backed by laboratory testing.Learn more

S

Sea waybill: Non-negotiable sea transport document: the goods are released to the named consignee without presentation of an original. Simpler than an original bill of lading when payment has already been settled or guaranteed.Learn more
Section 301: Legal basis for the additional US duties that target many Chinese products, following an investigation into technology transfers and intellectual property. They are added on top of the standard HTS duty: check their status for your code before calculating your landed cost.Learn more
Shipping marks: Markings printed on every carton (product, quantity, weight, carton number, destination, handling pictograms). They make it possible to identify and sort the goods at every stage and are checked during inspection.Learn more
SMETASedex Members Ethical Trade Audit: A social audit method created by Sedex and launched in 2004. It always assesses labor law and health and safety and, in its "4-pillar" version, the environment and business ethics; the factory then receives a corrective action plan.Learn more
Sourcing agent: Intermediary based in the country of production who finds factories, negotiates, monitors manufacturing and controls quality on the buyer's behalf. This is the key difference from a trading company, which sells on its own account.Learn more
Specification: A document that precisely describes the expected product: materials, dimensions and tolerances, finishes, markings, packaging, standards and acceptance criteria. It is the reference enforceable against the supplier and the basis of every inspection.Learn more

T

T/T 30/70Telegraphic Transfer: Common payment term in Asia: bank transfer of 30% deposit on order and 70% balance before shipment or against copy of the bill of lading. Only pay the balance after a compliant pre-shipment inspection.Learn more
TARIC: Integrated Tariff of the European Union: a database that brings together, for each product code, duties, preferences, quotas, suspensions, anti-dumping duties and import restrictions. It is the reference tool for knowing how a product is treated on entry into the EU; VAT, which is national, is not included.Learn more
Technical file: The set of documents that prove a product's compliance: description, drawings, risk analysis, applicable standards, test reports and declaration of conformity. It must be available to market surveillance authorities on request.Learn more
Telex release: Release of the goods without a paper bill of lading at destination: the originals are returned to the carrier at origin, which then authorizes delivery to the consignee electronically. The supplier usually triggers it upon receipt of the balance.Learn more
TEUTwenty-foot Equivalent Unit: Unit of measurement for containers, based on a 20-foot ISO container. A 40-foot container counts as 2 TEU.Learn more
THCTerminal Handling Charges: Handling fees at the port terminal (unloading, yard storage, loading), billed at origin and at destination. Depending on the Incoterm, origin charges fall to the seller or the buyer: check this in every quote.Learn more
Trading company: A trading company that resells products made by other factories. It can simplify small multi-product orders, but it adds a margin and a screen between you and the actual manufacturer; its business license often gives it away.Learn more
Transshipment: Transferring a container from one vessel to another at an intermediate port. It lengthens transit and adds the risk of delay if the connection is missed; a direct service is more predictable.Learn more

U

UFLPAUyghur Forced Labor Prevention Act: US law against forced labor: since June 21, 2022, US Customs presumes that any product made, even in part, in Xinjiang or by an entity on the UFLPA list is prohibited from import, unless proven otherwise. You therefore need to be able to trace materials and components.Learn more
UKCAUK Conformity Assessed: UK conformity marking for products placed on the market in Great Britain. For many categories, the UK continues to accept CE marking instead of or in addition to it; Northern Ireland has its own regime (CE marking, sometimes accompanied by UKNI marking, for UK Northern Ireland).Learn more
USCCUnified Social Credit Code: 18-character identifier assigned to every Chinese company and printed on its business license. It lets you find the company in official registries and verify its status and scope of business.Learn more

V

VGMVerified Gross Mass: Verified gross mass of a loaded container, required since July 1, 2016 by the SOLAS convention (International Convention for the Safety of Life at Sea). The shipper must provide it before loading: without VGM, the container does not sail.Learn more

W

WEEEWaste Electrical and Electronic Equipment: Directive 2012/19/EU on waste electrical and electronic equipment, which governs its collection, reuse and recycling. Anyone placing these products on the market must generally register in each country of sale and fund their end-of-life (extended producer responsibility).Learn more

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3PLThird-Party Logistics: An external logistics provider that stores your products, prepares orders, ships them and handles returns on your behalf. You pay per use (storage, preparation, shipping) instead of investing in a warehouse and a team.Learn more
4PLFourth-Party Logistics: The logistics orchestrator that manages several providers (freight forwarders, carriers, 3PLs) on behalf of a client, often without owning any warehouse or truck itself. It is accountable for end-to-end supply chain performance.Learn more
20', 40' and 40' HC containers: Standard ocean container sizes: 20-foot (1 TEU, about 33 m³), 40-foot (2 TEU, about 67 m³) and 40-foot High Cube, taller (about 76 m³). These nominal volumes, published by Maersk, are maximums: the volume you can actually load depends on the packing. A 20-foot container of dense products often hits its weight limit before it is full.Learn more