The logistics industry has a language of its own.
It is a soup of acronyms, legal terms, and historical jargon that can leave the uninitiated feeling lost.
To navigate international trade successfully, you need to be fluent—or at least have a good dictionary.
This A-Z glossary covers the most essential terms related to import/export documentation that every US trader should know.
A - C
AES (Automated Export System): The system used by US exporters to electronically declare their international exports to the Census Bureau to help compile trade statistics and enforce export controls.
Air Waybill (AWB): A non-negotiable transport document covering the transport of cargo from airport to airport.
It indicates the carrier's acceptance of the goods.
Bonded Warehouse: A secured facility supervised by customs authorities, where dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
Carnet (ATA Carnet): Often called the "Passport for Goods.
" It allows the temporary importation of goods (like trade show displays or professional equipment) into countries without paying duty, provided they are re-exported within a year.
Certificate of Origin (CO): A document certifying the country in which the goods were manufactured. Vital for determining tariff rates.
Commercial Invoice: The primary document describing the transaction between seller and buyer, used for customs valuation.
Consignee: The person or company to whom the goods are being shipped (usually the buyer).
Customs Broker: A private individual, partnership, or corporation licensed by US Customs and Border Protection to assist importers in meeting federal requirements governing imports.
D - H
Demurrage: A penalty charge by the shipping line if the container is not picked up from the port within the allowed free time.
Detention: A penalty charge if the container is taken out of the port but not returned to the shipping line within the allowed time.
Drawback: A refund of all or part of customs duties, or taxes paid on imported merchandise which was subsequently exported or used to manufacture goods that were exported.
Dumping: Selling goods in a foreign market at a price lower than their fair value.
This often leads to "Anti-Dumping Duties.
".
EEI (Electronic Export Information): The electronic data filed in the AES.
Required for shipments valued over $2,500 per Schedule B number.
Freight Forwarder: An agent who acts on behalf of importers, exporters, or other companies to organize the safe, efficient, and cost-effective transportation of goods.
Harmonized System (HS) Code: An internationally standardized system of names and numbers to classify traded products.
The US uses a 10-digit variation called the Schedule B (for exports) or HTSUS (for imports).
I - L
Importer of Record (IOR): The entity responsible for ensuring the imported goods comply with local laws and for paying duties and taxes.
Incoterms: International Commercial Terms. Standard trade definitions most commonly used in international sales contracts.
Letter of Credit (LC): A financial document issued by a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount, provided the compliant shipping documents are presented.
Liquidated Damages: A penalty a broker or importer may have to pay if they fail to meet the conditions of their customs bond.
M - P
Manifest: A document listing the cargo, passengers, and crew of a ship, aircraft, or vehicle, for the use of customs and other officials.
NVOCC (Non-Vessel Operating Common Carrier): A shipment consolidator or freight forwarder who does not own any vessel but functions as a carrier by issuing its own Bills of Lading.
Packing List: A document listing the merchandise in a particular shipment, indicating the kind and quantity in each package.
Port of Entry: A harbor or airport where customs officers are stationed to oversee the entry of foreign goods.
Power of Attorney (POA): A legal document allowing a customs broker to act on behalf of the importer/exporter.
Q - T
Quota: A limit on the quantity of a specific good that can be imported during a specified period.
Sanctions: Trade penalties imposed by one or more countries against a targeted country, group, or individual (e.
g.
, US sanctions against specific nations managed by OFAC).
Schedule B: The statistical classification of domestic and foreign commodities exported from the United States.
Shipper's Letter of Instruction (SLI): A document provided by the exporter to the freight forwarder instructing them on how to handle the shipment and who should receive the documents.
Tariff: A tax or duty to be paid on a particular class of imports or exports.
Transshipment: The shipment of goods or containers to an intermediate destination, then to yet another destination.
One possible reason for transshipment is to change the means of transport (e.
g.
, from ship to truck).
U - Z
Ultimate Consignee: The final recipient of the goods. This may be different from the "Sold To" party.
USMCA: The United States-Mexico-Canada Agreement (successor to NAFTA).
A free trade agreement that dictates specific documentation rules for duty-free trade in North America.
VAT (Value Added Tax): A consumption tax placed on a product whenever value is added at each stage of the supply chain.
While the US doesn't have a national VAT, most other countries do, and it is collected at import.
Waybill: A document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods.
Conclusion
This list is by no means exhaustive, but it covers the vocabulary used in 90% of daily logistics operations.
Keeping a glossary handy can prevent miscommunication.
In international trade, a misunderstanding of a single word—like confusing "Demurrage" with "Detention"—can cost a business thousands of dollars.
Use these terms precisely, and demand precision from your partners.