📖 International Shipping Glossary

A

ABN (Australian Business Number)

Unique identifier for businesses shipping to Australia, helps with customs clearance.

Actual Weight

The physical weight of a package as measured on a scale, as opposed to dimensional weight.

Ad Valorem

Latin for "according to value" - duties calculated as a percentage of the item's value.

Air Waybill (AWB)

Contract between shipper and carrier for air transport, serves as receipt and tracking document.

ANATEL

Brazilian telecommunications certification required for electronic devices entering Brazil.

ANVISA

Brazilian health regulatory agency that controls food, cosmetics, and medical products imports.

B

Bill of Lading (B/L)

Legal document between shipper and carrier detailing type, quantity, and destination of goods.

Biosecurity

Measures to protect against biological threats; Australia has strict biosecurity laws for imports.

Bonded Warehouse

Secure warehouse where imported goods can be stored without paying duties until removed.

Brokerage Fee

Fee charged by customs brokers for clearing goods through customs on your behalf.

C

Carrier

Company that transports packages (USPS, UPS, FedEx, DHL, etc.).

CCC Certification

China Compulsory Certificate required for many products entering China.

CE Marking

Certification mark indicating conformity with EU health, safety, and environmental standards.

CIF (Cost, Insurance, and Freight)

Incoterm where seller pays costs, insurance, and freight to destination port.

CN22

Customs declaration form for international packages under 4 lbs and $400 value.

CN23

Detailed customs form for packages over 4 lbs or $400 value.

COD (Cash on Delivery)

Payment collected by carrier upon delivery, including customs charges.

Commercial Invoice

Document showing transaction details between buyer and seller, required for business shipments.

Commodity Code

See Harmonized System (HS) Code.

Consignee

The person or company receiving the shipment (recipient).

Consignor

The person or company sending the shipment (shipper).

Consolidator

Company that combines multiple shipments into one for efficiency.

CPF

Brazilian tax identification number required for customs clearance.

CURP

Mexican personal identification number sometimes required for customs.

Customs Broker

Licensed professional who clears goods through customs for importers.

Customs Duty

Tax imposed on imports by the destination country's government.

D

DAP (Delivered at Place)

Incoterm where seller delivers goods to agreed location, buyer pays duties.

DDP (Delivered Duty Paid)

Seller responsible for all costs including duties and taxes to final destination.

DDU (Delivered Duty Unpaid)

Obsolete term replaced by DAP - buyer pays duties and taxes.

De Minimis

Value threshold below which no duties or taxes are collected.

Declared Value

The stated value of package contents for customs and insurance purposes.

Delivery Confirmation

Service providing proof that package was delivered.

Dimensional Weight (DIM)

Pricing based on package size rather than actual weight (L×W×H÷139 for international).

Documentation Fee

Charge for processing shipping documents.

DTA Fee

Mexican customs processing fee of 0.8% on imports.

Duties

Taxes on imported goods, separate from sales tax or VAT.

E

EEI (Electronic Export Information)

Required filing for US exports over $2,500 or requiring export license.

EMS (Express Mail Service)

International express postal service offered by postal operators.

End-to-End Tracking

Package tracking from origin to final delivery.

EORI Number

Economic Operators Registration and Identification number required for EU imports.

Export License

Government authorization to export controlled goods.

F

First-Class Mail International

USPS economical service for packages under 4 lbs.

Flat Rate

Fixed price regardless of weight (up to limit) for specific box sizes.

FOB (Free on Board)

Seller responsible until goods loaded on ship, buyer pays freight and insurance.

Force Majeure

Unforeseeable circumstances preventing contract fulfillment.

Freight Forwarder

Company that arranges shipments for individuals or corporations.

FSSAI

Food Safety and Standards Authority of India approval required for food imports.

Fuel Surcharge

Additional fee (10-20%) to cover fuel cost fluctuations.

G

Gateway

Major hub where international shipments enter a country.

General Average

Maritime law principle sharing losses from voluntary sacrifice of cargo.

Gift Shipment

Personal gift often qualifying for reduced or no duties under threshold.

GST (Goods and Services Tax)

Value-added tax in countries like Australia (10%), India (18%), Canada (5-15%).

Green Channel

Customs clearance for low-risk shipments with minimal inspection.

H

Handling Fee

Charge by postal services for processing customs clearance.

Harmonized System (HS) Code

International classification system for traded products, determines duty rates.

Hazmat (Hazardous Materials)

Dangerous goods requiring special handling and documentation.

I

ICMS

Brazilian state tax (17-19%) on top of federal import tax.

IGST

Integrated Goods and Services Tax (18%) for imports to India.

Import License

Government permission required to import certain restricted goods.

Incoterms

International commercial terms defining responsibilities of buyers and sellers.

Insurance

Coverage for lost or damaged shipments, usually optional.

IOSS (Import One-Stop Shop)

EU system allowing sellers to collect VAT at point of sale.

IVA

Spanish/Portuguese for VAT - Mexico 16%, varies by country.

J

Just-in-Time (JIT)

Inventory strategy coordinating arrivals with production needs.

K

KYC (Know Your Customer)

Identity verification required by some countries like India for imports.

L

Landed Cost

Total cost including product, shipping, duties, taxes, and fees.

Last Mile Delivery

Final leg of delivery from local facility to recipient.

Letter of Credit

Bank guarantee of payment for international trade.

Lithium Battery

Dangerous good requiring special labeling and handling.

M

Manifest

Document listing all packages in a shipment.

Mode of Transport

Method of shipping: air, sea, ground, or multimodal.

N

NAFTA/USMCA

Trade agreement between US, Mexico, and Canada reducing duties.

NOM Certification

Mexican product standards certification.

Non-Document

Shipment containing goods rather than just paperwork.

O

Origin Certificate

Document certifying where goods were manufactured.

Oversized Package

Package exceeding standard size limits, incurring surcharges.

P

Packing List

Detailed list of package contents for customs.

PAN Card

Indian tax identification sometimes required for customs.

Parcel

Package or shipment.

POD (Proof of Delivery)

Documentation confirming successful delivery.

Priority Mail International

USPS mid-tier international service.

Prohibited Items

Goods banned from import by destination country.

PSE Mark

Japanese product safety mark for electrical appliances.

Q

Quarantine

Isolation of goods for biosecurity inspection.

R

Receita Federal

Brazilian federal revenue service (customs authority).

Red Channel

Customs path for high-risk shipments requiring inspection.

Remessa Conforme

Brazilian program for reduced taxes on purchases under $50.

Remote Area Surcharge

Additional fee for delivery to less accessible locations.

Residential Surcharge

Extra fee for home delivery vs. business address.

Restricted Items

Goods requiring special permits or documentation.

Return Merchandise Authorization (RMA)

Permission to return goods to sender.

RFC

Mexican tax identification number for businesses.

S

Sender

Person or company shipping the package (consignor).

Signature Confirmation

Service requiring recipient signature for delivery.

SWS (Social Welfare Surcharge)

10% surcharge on customs duties in India.

T

Tariff

Tax or duty on imports/exports.

TIN (Tax Identification Number)

Unique identifier for tax purposes.

Tracking Number

Unique code to monitor package location and status.

Transit Time

Duration from pickup to delivery.

TVA

French term for VAT (Taxe sur la Valeur Ajoutée).

U

Under-Declaration

Falsely stating lower value to avoid duties (illegal).

USMCA

United States-Mexico-Canada Agreement (replaced NAFTA).

V

Value Added Tax (VAT)

Consumption tax on goods and services.

Volumetric Weight

See Dimensional Weight.

W

Waybill

Document with shipment details and tracking information.

World Customs Organization (WCO)

International organization developing customs standards.

X

X-Ray Inspection

Security screening of packages at customs.

Y

Yellow Channel

Customs path for document verification without physical inspection.

Z

Zone Skip

Shipping strategy to reduce costs by bypassing zones.