Glossary of Import and Export Terminology

Let’s simplify international trade. Our glossary of terms explains every trade-related acronym from AWB to WTO.

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Air Waybill (AWB)

An Air Waybill (AWB) is a document produced by the freight company which provides detailed shipment and tracking information.

Bill of Lading (BOL)

A bill of lading is a legal document issued by a carrier or its agent that serves as a receipt of goods, as well as a contract of carriage outlining the terms and conditions of the transportation.

Bill of Materials (BOM)

A Bill of Materials is a detailed inventory of the raw materials, sub-assemblies, intermediate assemblies, sub-components, and parts required to manufacture a product.

Certificate of Conformity (CoC)

A Certificate of Conformity (CoC) is a mandatory importing document stipulating that a product meets minimum regulatory, technical, and safety requirements. This should not be confused with a Certificate of Origin (COO) which is a document details pertaining to the part or products origin country.

Certificate Of Origin (COO)

A Certificate of Origin is a document that declares a product meets the Rules of Origin for a specific trade agreement. A COO specifies the part/product’s country of origin and is generally attested by a Chamber of Commerce. This is not to be confused with a Certificate of Conformity (CoC) which verifies that a product meets specific safety, quality, or performance standards set by the importing country.

Commercial Invoice (CI)

When used in international trade, a Commercial Invoice is a customs document used as a customs declaration provided by the exporter of goods.

Customs Broker (CB)

A customs broker is a licensed professional or firm specialized in facilitating and expediting the clearance of goods through customs on behalf of importers and exporters, ensuring compliance with customs regulations and requirements. Custom brokers are also responsible for issuing customs clearance documents (CCD).

Customs Clearance Documents (CCD)

Customs Clearance Documents (CCDs) are the documents issued by the Customs Brokers and authorities detailing how the goods were cleared. Examples of these, while widely variable, include a Packing List (PL), Commercial Invoice (CI), Certificate of Origin (COO), and Bill of Landing (BOL).

Commerce Control List (CCL)

This list within the EAR identifies specific dual-use items that require a license for export due to their potential strategic value. Each item on the CCL has a designated Export Control Commodity Number (ECCN).

Delivered Duty Paid (DDP)

DDP (Delivered Duty Paid) is an incoterm delivery agreement between the shipper and receiver. This incoterm stipulates that maximum responsibility is placed on the shipper, whose obligations include delivering to an agreed-upon destination, clearing the goods, and paying customs duties and taxes.

Export Administration Regulations (EAR)

s (EAR) are controlled by the U.S. Department of State as a mechanism to moderate and regulate dual-use goods.

These are regulations set by the US Department of Commerce’s Bureau of Industry and Security (BIS) to manage the export of goods, technology, and information.

EAR99

A type of Export Administration Regulations (EAR) not specifically controlled for export. EAR99 indicates that an item is subject to the Export Administration Regulations (EAR).

EAR99 is a classification encompassing mostly low-tech consumer goods like clothing and basic tools, generally don’t require a license for export.

Export Control Classification Number (ECCN)

An Export Control Classification Number (ECCN) is an alphanumeric identifier used in the Commerce Control List to recognize products for export control purposes. An ECCN categorizes items based on the specifications of the product.

Export Transaction (ET)

Export transaction refers to the sale and transfer of goods or services from a seller located in one country to a buyer located in a foreign country, typically involving international trade and crossing national borders.

Exporter of Record (EOR)

In export terms, EOR (Exporter of Record) refers to the person or entity responsible for ensuring the correct documentation is acquired and legal compliance and regulations are followed for the exporting goods out of a country.

Federal Security Bureau Notification (FSB)

An FSB Notification is an official document that allows the movement of products with encryption capabilities into Russia and the EAEU.

Foreign Trade Zone (FTZ)

A foreign trade zone is a designated area within a country’s borders where goods can be stored, processed, and traded with certain benefits, such as duty exemption or deferral, to promote international trade and economic activity.

Freight Forwarder (FF)

A freight forwarder (FF) is an intermediary responsible for arranging transport and preparing documentation for the movement of goods.

Free Trade Agreement (FTA)

A free trade agreement is a treaty between two or more countries that facilitates the exchange of goods and services by reducing or eliminating tariffs, quotas, and other trade barriers. Examples of FTAs around the world include the North American Free Trade Agreement (NAFTA) which includes Canada, Mexico, and the United States and Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) which is composed of the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua

Harmonized System (HS)

The Harmonized System is an international multipurpose nomenclature used to classify traded products. Also referred to as HS codes.

Harmonized Tariff Schedule Code (HTS Code)

The HS (Harmonized System) or HTS (Harmonized Tariff Schedule), developed by the World Customs Organization (WCO), is used to assign duties to a traded product and provide international trade data.

Importer of Record (IOR)

An IOR (Importer of Record) is the entity or person in the destination country responsible for ensuring compliance requirements are met for customs clearance, product classification, and the payment of customs duties and taxes.

International Traffic in Arms Regulations (ITAR)

The International Traffic in Arms Regulations (ITAR) is a set of United States Government regulations controlling defense products’ export and import. ITAR regulates the export of defense articles and services, including technological products, services and technical data.

Letter of Credit (LC)

A letter of credit is a financial document issued by a bank on behalf of a buyer, guaranteeing payment to the seller upon the satisfactory completion of the specified terms and conditions of the trade transaction.

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement is a pact between Canada, Mexico, and the USA to promote economic integration and reduce trade barriers among member countries.

Non-Resident Importer (NRI)

Non-resident Importer (NRI) is like the Importer of Record (IOR) but is used in Canada. As with an IOR, it refers to the entity which takes responsibility for the import of goods. The NRI is responsible for clearing the goods and ensuring all compliance documents are correctly completed and filed. However, this refers specifically to entities located outside of Canada.

Open Individual Export License (OIEL)

An Open Individual Export License (OIEL) is tailored to the exporter’s needs. An OIEL allows the exporter to export multiple shipments of controlled goods to specified consignee/s in multiple countries.

Pallet List or Packing List (PL)

A packing list is a breakdown of the actual configuration of goods in their boxes (including weight and dimensions, number of packages, etc.).

Proof of Delivery (POD)

The Proof of Delivery provides evidence that the goods were delivered to the final destination.

Rules of Origin (ROO)

Rules of Origin refer to the criteria and regulations used to determine the national source or origin of a product, which is essential for applying tariffs, trade preferences, and other trade-related measures.

Standard Individual Export Licence (SIEL)

A Standard Individual Export Licence (SIEL) permits UK exports of a defined number and value of items to a specific destination for a specified amount of time. Licenses for temporary and permanent exports are normally valid for one and two years, respectively.

World Trade Organization (WTO)

The World Trade Organization is an international organization that regulates and facilitates global trade by establishing rules and agreements among member countries to promote fair and predictable international commerce.