WtraLab – Global Trade Lab

Data

Glossary guide

C

CIF (Cost, Insurance and Freight) — A trade term where the seller pays for the cost of goods, insurance, and freight to the destination port. Risk transfers to the buyer once goods are loaded on the ship.

Customs Clearance — The process of passing goods through customs so they can enter or leave a country. Includes submitting documentation, paying duties, and complying with regulations.

C/O (Certificate of Origin) — A document certifying the country where goods were manufactured. Required by many countries to determine applicable tariff rates.

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D

Demurrage — A fee charged when cargo remains at a port or terminal beyond the agreed free time period.

Duties — Taxes imposed by a government on imported or exported goods, also known as tariffs or customs duties.

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E

EXW (Ex Works) — An Incoterm where the seller makes goods available at their premises. The buyer bears all costs and risks from that point.

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F

FOB (Free on Board) — A trade term where the seller delivers goods on board the vessel. Risk transfers to the buyer once goods are on the ship.

Freight Forwarder — A company that organizes shipments on behalf of exporters or importers, handling logistics, documentation, and customs.

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H

HS Code (Harmonized System Code) — A standardized numerical code used worldwide to classify traded goods for customs and tariff purposes.

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I

Incoterms — International Commercial Terms published by the ICC, defining responsibilities of buyers and sellers in international trade transactions.

Import Duty — A tax levied on goods brought into a country from abroad.

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L

LC (Letter of Credit) — A financial document issued by a bank guaranteeing payment to a seller, provided specified conditions are met.

LCL (Less than Container Load) — A shipping method where goods from multiple shippers share one container.

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P

Port of Entry — The designated location where goods officially enter a country and go through customs inspection.

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T

Tariff — A tax or duty imposed on imported goods by a government.

T/T (Telegraphic Transfer) — A method of electronic funds transfer used in international trade payments.

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W

Waybill — A document issued by a carrier describing the goods being transported and the terms of carriage.