Glossary
The vocabulary of sourcing, shipping, payment and compliance.
Bill of LadingB
A transport document issued by the carrier; it acts as a receipt and can be a document of title.
CIFC
Cost, Insurance and Freight: the seller pays freight and insurance to the named destination port; risk still passes when the goods are on board.
Certificate of OriginC
A document stating the country where goods were produced, often required for customs or preferential tariffs.
EXWE
Ex Works: the buyer collects the goods at the seller's premises and handles the main transport and formalities.
FOBF
Free On Board: the seller delivers the goods on board the vessel at the named port; risk passes at that point.
HS CodeH
Harmonized System code: an international product classification used by customs to apply duties and trade rules.
IncotermsI
International Commercial Terms published by the ICC; they define who pays transport, insurance and duties, and where risk passes.
Landed CostL
The full cost of goods including purchase price, freight, insurance, customs and delivery to the buyer.
Letter of CreditL
A bank commitment to pay the seller when the agreed documents are presented.
MOQM
Minimum Order Quantity: the smallest quantity a supplier will accept for an order.
Packing ListP
A document listing packages, quantities, weights and dimensions in a shipment.
Proforma InvoiceP
A preliminary invoice sent before shipment; used for approval, payment or customs.