Export Terms Every Company Should Know

Many people still don’t know the terms used in export and import. Business owners and companies need to know these terms so they won’t be confused when discussing them in the future.

To make it easier to understand the shipping process going forward, learn more about the terms commonly used in export and import activities below.

Export Terms You Should Know

1. Customs Clearance

Customs clearance is a term used in exports and imports to describe the process of checking documents and administrative requirements, calculating costs, and handling other related matters for export or import goods until approval is granted for the goods to pass customs verification.

2. FOB

FOB or Free on Board is a quotation for goods that covers delivery only up to the vessel, excluding the cost of sea freight.

3. CIF (Cost, Insurance, Freight)

CIF This is a term for goods whose price includes shipping costs and insurance, paid before the vessel departs.

4. OFR

OFR is a term in exports and imports that means the base rate for sea freight, calculated per cubic meter.

5. AFR

Meanwhile, AFR is used to calculate through the air pathway. Its unit is also different, usually kilograms or pounds (lbs).

6. FCL

Next, FCL  or Full Container Load is a term used in import and export to refer to an exclusive container-use service for transporting cargo from a single shipper.

7. LCL

Less than Container Load or Less Than Container Load is a cargo shipment with a smaller capacity that does not fill an entire container. You understand the difference from FCL now, right?

8. Notul

Notul is short for Nota Pembetulan (Correction Note). The term notul is used when goods cannot be released due to a customs amnesty, invalid documents, document forgery, invoice changes, or undervaluation that results in excessively high import duties.

9. POL

POL or Port of Loading is a term in exports and imports for the port where goods are loaded.

10. POD

POD or Port of Discharge is a term meaning the port where goods are unloaded.

11. CFS

Container Free Station a term used for LCL shipments.

12. CY

Container Yard is a term for the stacking of containers at a dock or port.

13. Seal

Seal refers to a container seal

14. Place of Delivery

Place of delivery refers more to the final destination of a shipment

15. Place of Receipt

Place of Receipt Refers to the final destination of receipt

16. Measurement/Cubication/CBM

Volume is used to refer to the cubic measurement of goods.

17. Demurrage

Demurrage is A term for the time limit on container use at the port (CY), from vessel unloading until the container exits the port (Get out), or vice versa, from entering the port (Get in) until loading onto the vessel.

18. Detention

Detention is The time limit for using a container outside the port, from when it leaves the shipping line’s depot (depot out) until it enters the port gate (depot in), or from when it exits the port (depot out) until it enters the shipping line’s container depot (depot in).

19. Consolidation

Consolidation is a process usually carried out by a freight forwarder to combine multiple shipments into one.

20. Exwork

Exwork is a trade term where the purchase price covers only the goods themselves, excluding stuffing, handling, forwarding, and other fees.

21. OB (Over Brengen)

The term OB is used for the forced relocation of imported goods when customs clearance is not completed on time.

22. Dwelling Time

Dwelling time is a term for the waiting time for loading and unloading a container

23. DDP Shipment (Delivered Dutytax Paid)

DPP Shipment refers to a trade term under which the exporter/seller must deliver the goods to the buyer with all shipping and customs matters in the buyer’s country,

24. DDU Shipment (Delivered Dutytax Unpaid)

DDU shipment or, under this trade term, taxes and other customs matters are not the responsibility of the seller.

Related to legal matters or correspondence

25. PIB (Goods Import Notification)

A document term for the notice submitted to customs by an importer to declare imported goods.

26. PEB (Goods Export Notification)

A document submitted to customs by the exporter as an export goods declaration.

27. HS Code (Harmonized System Code)

HS Code is used to identify goods in detail using numerical codes.

28. BL (Bill Of Lading)

BL or Bill of Lading is a ship's cargo document or a certificate accompanying goods transported by ship.

29. AWB (Air Way Bill)

An Air Waybill serves the same purpose as a Bill of Lading, but is used for air freight.

30. Commercial Invoice

A Commercial Invoice is a document containing a list of the values or prices of goods shown in the packing list. It is then used by customs as the basis for calculating taxes.

32. Proforma Invoice

Proforma Invoice is a term for a provisional document issued before the commercial invoice. It is also commonly known as an estimate or estimated costs.

33. Sales Contract

A sales contract is a document containing an agreement between an importer and an exporter. This contract is the main basis for the buyer to apply to open a Letter of Credit (L/C) with a bank.

34. Packing List

A packing list is a document containing a list of the packing arrangements for exported goods. It provides details about the shipper, consignee, notify party (if any), product names, number and types of packages, quantity of goods, net weight, gross weight, cubic volume, shipping marks & numbers or information printed on the packages, vessel name, port of loading, port of discharge, and other details.

35. Terms of Trade

Terms of trade is a term used to refer to trade terms or terms of delivery.

36. Undername

A term used to refer to the borrowing of a company's license to facilitate import and export activities.

37. API (Importer Identification Number)

The types of API are API-T (limited), API-U (general), and API-P (producer).

38. SRP (Customs Registration Letter)

SRP is a letter used by importers as identification to meet the requirements of DJBC (Directorate General of Customs and Excise).

39. COO

A certificate of origin for goods issued by DISPERINDAG to exporters.

40. COA

A COA is a certificate issued by Sucofindo, Geoservices, or a similar organization to exporters.

Related to participation

41. Shipper

Shipper is the term used to refer to the exporter or sender of goods.

42. Consignee

Consignee is another term for the importer or recipient of goods.

43. Forwarder Company

A forwarder company is a company responsible for arranging the shipment of goods as requested by the sender. A forwarder company rents containers from shipping lines, ships goods to the destination country's port, and can issue shipping documents such as BL/AWBL.

44. Applicant

Applicant is the term for the buyer or importer who opens an L/C contract with the issuing bank.

45. Beneficiary

Beneficiary is the term for the party that receives payment under an L/C contract opened by the applicant.

 

That’s the list of terms used in the export-import industry that you can learn as a foundation for your knowledge. Hope you find it useful.