First-time exporters often get confused by logistics jargon. Here are 20 essential terms.
Trade terms
- DDP: Seller covers all costs, customs, and duties. Buyer just receives goods.
- DDU: Seller covers freight. Buyer handles customs and duties.
- EXW: Buyer arranges everything after factory pickup.
- FOB: Seller covers pre-loading costs. Buyer takes over after loading.
Transport operations
- FCL: Your goods alone in a container. LCL: Shared container.
- ETD: Estimated departure time. ETA: Estimated arrival time.
- SO (Shipping Order): Booking confirmation from the carrier.
- B/L (Bill of Lading): Title document, comes as MBL or HBL.
Additional charges
- Demurrage: Container overuse fee, typically 7-14 free days.
- Detention: Port storage overuse fee, typically 3-7 free days.
- AMS and ENS: Manifest filing fees for US and EU shipments.
Customs and tax
- VAT: EU value-added tax, deferrable in some cases.
- EORI and IOR: EU importer registration number, mandatory for customs.
- EAC Certification: Product compliance for Russia and Eurasian Economic Union.
Put all verbal commitments in writing to avoid disputes over terms.