International trade terms, explained simply

A movement certificate used exclusively for goods in free circulation moving between Turkey and the EU under the Turkey–EU Customs Union, allowing them to move without customs duties.

A payment term where the buyer pays some or all of the agreed price before the goods are shipped, giving the seller the highest level of payment security.

A document that represents the contract of carriage between the shipper and the airline for air freight, and serves as proof that the goods were received.

An additional customs duty imposed to prevent a foreign producer from selling goods below their home-market price in a way that harms the domestic industry.

An international customs document that allows the temporary duty-free and tax-free import of goods — such as trade show samples or professional equipment — across multiple countries without filing separate customs declarations.

A bank's written promise to pay a specified sum to the beneficiary if the applicant fails to meet a contractual obligation — commonly used to secure performance, advance payments, or bids in trade contracts.

A legal document issued by a carrier that confirms receipt of cargo, states the terms of carriage, and serves as a document of title to the goods.

A facility where imported goods can be stored under customs supervision without paying duty or VAT until they are released for domestic use.

An insurance policy that provides financial protection against loss, damage, or theft of goods while in transit.

A documentary collection method where the importer's bank releases shipping documents to the buyer only after the buyer pays in full — also called Documents against Payment (D/P).

A unit used to measure the volume of a shipment; used alongside weight to calculate freight charges.

A mandatory conformity marking for products sold within the European Economic Area, indicating that the manufacturer has verified the product meets EU health, safety, and environmental requirements.

A document issued by an accredited body confirming that a product meets the technical, safety, or regulatory standards required by the destination market.

A document confirming that a product — commonly cosmetics, food, or medical devices — is legally sold in the open market of the exporting country and meets its regulatory requirements.

An official document certifying the country in which goods were manufactured, often required to claim preferential duty rates under a trade agreement.

An Incoterm® rule where the seller pays freight and insurance to the named destination port, but risk transfers to the buyer once goods are loaded onto the vessel at the origin port.

The core customs and payment document issued by the exporter to the buyer, showing a description of the goods, unit price, total value and delivery terms.

The person or company named on the bill of lading or transport document as the final recipient of a shipment.

The country where a product was manufactured, grown, or substantially transformed; it affects the applicable duty rate and trade agreement eligibility.

A licensed professional who prepares customs declarations, calculates duties, and communicates with customs authorities on behalf of importers or exporters.

The process of declaring imported or exported goods to customs authorities, paying any required duties, and obtaining permission for the goods to cross the border.

The value used as the basis for calculating customs duty, typically the transaction value of the goods plus freight and insurance costs.

An Incoterm® rule where the seller delivers the goods, ready for unloading, at the named destination; the buyer handles import clearance and duties.

An Incoterm® rule where the seller bears all costs and risk, including import duties and taxes, until the goods are delivered to the named destination — the lowest-risk option for the buyer.

A fee charged by the carrier when a container is held at the port or terminal beyond the agreed free time.

A charge applied when a container is kept outside the port beyond the time allowed for its return to the carrier.

A payment method where the exporter's bank forwards shipping documents to the importer's bank, releasing them to the buyer only once payment or a signed acceptance is received — less secure than a letter of credit but cheaper.

A documentary collection method where the importer's bank releases shipping documents once the buyer signs (accepts) a bill of exchange promising to pay at a future date, rather than paying immediately.

The practice of an exporter selling a product in a target market below its home-market price, creating unfair competition.

The estimated date and time a shipment will depart (ETD) or arrive (ETA) at its destination.

A movement certificate that proves the originating status of goods, allowing exporters to benefit from preferential (reduced or zero) customs duty rates under a free trade agreement.

The rate at which one currency can be exchanged for another; it directly affects the cost of imports and exports.

An official permit issued by a government authority allowing specific goods to be exported, typically required for controlled, strategic, or regulated products.

An Incoterm® rule where the seller's only obligation is to make the goods available at their premises; the buyer bears all costs and risks, including export clearance, from that point onward.

An Incoterm® rule where the seller's risk and cost transfer to the buyer once the goods are placed alongside the vessel at the named port of shipment. Used only for sea and inland waterway transport.

A shipping arrangement where a single shipment fills an entire container on its own, without sharing space with another shipper's cargo.

An Incoterm® rule where the seller's risk and cost transfer to the buyer once the goods are loaded onto the vessel at the named port of shipment. Used only for sea and inland waterway transport.

A contract clause that addresses the inability to fulfill obligations due to events beyond the parties' control, such as natural disasters, war, or pandemics.

A formal agreement between two or more countries that reduces or eliminates customs duties and other trade barriers between them.

A designated geographic area where goods can be imported, processed, or stored without being subject to customs duties or certain trade regulations.

An intermediary company that arranges the movement of goods from producer to buyer, coordinating transport, customs clearance and warehousing.

A document issued by a competent authority confirming that food, animal, or animal-derived products meet the health and safety standards of the importing country.

A standardized numerical code developed by the World Customs Organization to classify traded products internationally. It determines the applicable duty rate and import requirements.

An official permit required from the relevant government authority before certain categories of goods can be imported into a country.

The party legally responsible to customs authorities for an imported shipment, including accurate declaration, duty payment and regulatory compliance.

A set of 11 standardized delivery rules published by the International Chamber of Commerce (ICC) that define how cost, risk and responsibility are split between buyer and seller.

The total cost of a product once it arrives at its final destination, including the purchase price plus freight, insurance, customs duty, VAT and inland transport.

A shipping method where cargo from multiple shippers is consolidated into the same container, with each shipper paying only for the space they use.

A payment instrument issued by the importer's bank, guaranteeing payment to the exporter upon presentation of specified documents.

The smallest quantity of a product that a supplier is willing to sell in a single order.

Trade restrictions that aren't customs duties, such as quotas, licensing requirements, or technical standards.

A carrier that provides ocean freight services and issues its own bills of lading without owning vessels, typically buying container space wholesale and reselling it in smaller lots.

A payment term where the seller ships the goods and sends documents directly to the buyer, who pays at an agreed later date — the most buyer-friendly but least secure term for the seller.

A shipping document that details the contents, weight and dimensions of each carton or package in a shipment, used for customs and logistics.

An official document certifying that a shipment of plants, fruits, vegetables, or seeds is free from pests and diseases, issued by the exporting country's plant protection authority.

A financial ratio showing the portion of the selling price that exceeds cost, relative to the selling price — a measure of profitability.

A preliminary, non-binding invoice sent before a sale is finalized, showing the price, quantity and terms of the goods.

An official trade restriction that limits the quantity of a specific good that can be imported into a country during a given period.

A financial metric that measures the efficiency of an investment by comparing the profit earned to the cost of the investment.

The criteria used to determine a product's country of origin, which affects eligibility for preferential treatment under trade agreements.

The party that hands goods over to a carrier for transport, typically the seller or exporter.

A letter of credit that is payable to the seller immediately upon presentation of the required, compliant shipping documents to the bank.

A bank guarantee that only becomes payable if the buyer fails to fulfil their payment obligation — used as a backup, unlike a commercial letter of credit which is the primary payment method.

The entire network of processes, parties and logistics flows involved in moving a product from raw material to final consumer.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) code, also called a BIC, is a unique identifier for a bank used to route international wire transfers securely between financial institutions.

An official tax rate applied to goods imported into a country, usually expressed as a percentage of the customs value.

The umbrella term for financial instruments — such as letters of credit, factoring and export credit — used to finance and reduce the risk of international trade transactions.

A letter of credit where payment to the seller is deferred to a specified future date after the documents are accepted, effectively giving the buyer short-term trade credit.

A consumption tax charged on the value added at each stage of production and distribution; on imports, it's calculated on the customs value plus duties.

In air freight especially, a weight calculated from a shipment's volume rather than its actual weight, used as the basis for freight charges when it exceeds actual weight.