Import-Export Glossary

General order supplier

A trading company that supplies many categories of goods to businesses and institutions through a single vendor relationship.

Importer

A business that brings goods into a country from a foreign supplier for sale or use.

Exporter

A business that sends goods or services to buyers in another country.

Landed cost

The total cost of getting goods to your door: supplier price, freight, insurance, duties and taxes, clearing and local transport.

HS code

Harmonized System code — an internationally standardised number that classifies traded goods and determines duty and documentation.

Commercial invoice

The seller's bill for the goods, used by customs to assess value and duties.

Packing list

A document listing the contents, quantities, weights and packaging of each package in a shipment.

Bill of lading (B/L)

A document issued by the carrier that acts as a receipt for the cargo, a contract of carriage and, in many cases, a document of title.

Airway bill (AWB)

The air-freight equivalent of a bill of lading; it is a receipt and contract of carriage but not a document of title.

Goods Declaration (GD)

The customs declaration filed to clear imported or exported goods in Pakistan.

Customs clearing agent

A licensed professional who prepares and files customs declarations and arranges clearance on behalf of an importer or exporter.

Incoterms

Standard trade terms (such as FOB, CIF and EXW) that define who pays for freight and insurance and when risk passes from seller to buyer.

FOB

Free On Board — the seller delivers the goods onto the vessel; the buyer pays freight and insurance from that point.

CIF

Cost, Insurance and Freight — the seller pays freight and minimum insurance to the destination port; risk passes when goods are loaded.

EXW

Ex Works — the buyer collects goods from the seller's premises and bears nearly all costs and risks from there.

LC (Letter of Credit)

A bank's undertaking to pay the seller once the specified documents are presented, reducing payment risk for both sides.

TT (Telegraphic Transfer)

A bank wire transfer commonly used to pay overseas suppliers in advance or on shipment.

FCL

Full Container Load — a shipment that fills an entire container.

LCL

Less than Container Load — a smaller shipment that shares container space with other cargo.

MOQ

Minimum Order Quantity — the smallest quantity a supplier will accept for an order.

OEM

Original Equipment Manufacturer — a factory that produces goods to another company's specification or brand.

Pre-shipment inspection

A check of goods for quantity, quality and packaging performed before they leave the supplier's premises.

Demurrage

A charge levied when containers stay at the port longer than the free period allowed.

Private label

Products manufactured by one company and sold under another company's brand.

Rate contract

An agreement fixing prices for a defined list of items over a period, so repeat purchases do not need re-negotiation.

Want to put these terms into practice? Read our import guide or request a quote.