Air waybill
The air transport document. Unlike a bill of lading it is not negotiable, and the goods are released only to the consignee named on it.
Documents
Glossary of trade and transport terms
Clear definitions of the terms that recur in documents, correspondence and customs files. Use the search box to find one quickly.
Clear definitions of the terms that recur in documents, correspondence and customs files. Use the search box to find one quickly.
30 terms
Assessment
The stage at which the physical goods are checked against the declaration and documents. The assessment channel is assigned according to the risk profile of the file.
CustomsBill of lading
The transport document issued by the shipping line, serving at once as receipt, contract of carriage and document of title. The original is negotiable, and without it — or a telex release — the cargo is not released at destination.
DocumentsCBM
Cubic metre, the volume of the consignment measured from the final packed dimensions. It is the principal basis for LCL rates.
TransportCertificate of origin
Confirms the country where the goods were produced or processed, normally issued by the chamber of commerce at origin. It matters for preferential tariffs and origin-based restrictions.
DocumentsClearance permit
Issued once formalities are complete and duties settled; it authorises the goods to leave the customs area.
CustomsConsolidation
Combining several small consignments into a single shipping unit to reduce the cost of each. Used in air freight and LCL sea freight.
TransportCustoms declaration
The document in which the owner of the goods, or a legal representative, declares the full particulars, value, classification and supporting documents to customs. It is the basis for duty assessment and the start of formalities.
CustomsDemurrage
The charge for a container remaining inside the terminal after free time expires. It is distinct from detention and the two can run at the same time.
CostsDetention
The charge for holding a container outside the terminal, from gate-out until it is returned to the line.
CostsFCL
Full container load: one container serves a single shipper and the rate is charged per container.
TransportFTL and LTL
Full truck load versus less than truck load. The choice rests on weight, volume, urgency and the handling risk of the goods.
TransportFree time
The period the line allows for use of the container without charge. Its length should be checked before booking.
CostsFreight forwarder
A company that organises international transport — routing, space booking, carrier coordination and issuing transport documents — without necessarily owning the means of transport.
TradeHS code
The commodity's classification number under the Harmonized System, which determines duty rates, required permits and standards obligations. It is based on the structure and function of the goods, not their trade name.
CustomsIncoterms
The ICC's standard delivery terms, fixing who pays for each leg, where risk transfers, and which party handles export and import clearance.
TradeLCL
Less than container load: cargo from several shippers is consolidated into one container and charged on weight or measurement, whichever is greater.
TransportLanded cost
The sum of goods value, freight, insurance, duty, levies, port charges and inland haulage to the destination warehouse. This, not the quoted freight, is the correct basis for comparing options.
CostsLetter of credit
A bank's undertaking to pay the seller against documents that comply with the credit terms. Documentary discrepancies are the most common cause of delay or non-payment.
TradeLicensed customs broker
A person licensed by customs to carry out formalities on behalf of the owner of the goods. The licence is personal and issued in the individual's name.
CustomsOrder registration
Obtaining import authorisation before shipment, recording the description, tariff code, value, country of origin and supplier. Any mismatch with the commercial documents will hold up the file.
TradeOut-of-gauge cargo
Goods exceeding the dimensions or weight limits of standard containers or vehicles, requiring special equipment, a route study and transit permits.
TransportPacking list
Sets out package numbering, the precise contents of each package, net and gross weights, dimensions and shipping marks. It is the basis for matching physical cargo against the declaration.
DocumentsPre-shipment inspection
Verification of quantity, quality and conformity with the contract before loading at origin. It markedly reduces risk on high-value cargo or with a new supplier.
TradeProforma invoice
A preliminary invoice issued by the seller before the contract, setting out the goods, quantity, value, delivery term, payment method and validity of the offer. It forms the basis for order registration and the initial review of the file.
DocumentsTelex release
The shipper surrenders the original bills of lading at origin and the line authorises release at destination without a physical document. Useful when cargo arrives before the paperwork.
DocumentsTerminal handling charge
What the terminal charges for moving the container between vessel and yard. Depending on the delivery term it falls on one party at origin or destination.
CostsTranshipment
Transferring cargo from one vessel to another at an intermediate port. Each transhipment adds transit time and raises the risk of delay or damage.
TransportTransit
Moving goods between customs offices, or across the customs territory to a third country, without completing definitive import formalities. It requires transit documents, a guarantee and discharge at destination.
CustomsVolumetric weight
Volume divided by the divisor for the mode. In air freight 6,000 cubic centimetres count as one kilogram, and freight is charged on whichever weight is greater.
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