Tools

Glossary of Shipping & Logistics Terms

Whether you are an expert in these fields or simply want to improve your understanding of specific terms, our glossary is here to help. We have compiled a comprehensive list of key terms used in international trade, logistics and shipping to help you better understand these ever-changing areas. Whether you're looking for definitions of technical terms like FOB, CIF, LCL or more general terms like freight, warehouse or customs, our glossary is an indispensable resource for any professional in these sectors. Explore our glossary now to expand your knowledge and enhance your expertise in international trade, logistics and shipping.

    A
  • Approved supplier

    A company authorized by government authorities to export sensitive goods or technologies because of its reliability and compliance with regulations.

  • Arms Embargo

    An arms embargo is a prohibition that is applied to trade or activities related to military items. An arms embargo can be imposed by the United Nations, the Organization for Security and Co-operation in Europe (OSCE) or the United Kingdom.

  • B
  • Bill of Lading

    A document which serves as proof of ownership for the goods to be exported and which allows to follow their shipment. The Bill of Lading is generally issued by the Maritime Company or the Transport Company which ships the goods and must be presented to recover the goods at destination.

  • C
  • CFR (Cost and Freight)

    The seller is responsible for the costs and freight necessary to deliver the goods aboard the ship designated by the buyer in the agreed destination port. The buyer is responsible for unloading the goods and all the costs and risks linked to the delivery of the goods to his final destination.

  • CIF (Cost, Insurance and Freight)

    The seller is responsible for the costs, insurance and freight necessary to deliver the goods on board the ship designated by the buyer in the agreed destination port. The buyer is responsible for unloading the goods and all the costs and risks linked to the delivery of the goods to his final destination.

  • CIP (Carriage and Insurance Paid To)

    The seller is responsible for the transport and insurance costs necessary to deliver the goods to the agreed place. The transfer of responsibility for the goods takes place once the carrier has taken care of the goods.

  • CMR

    Convention relating to the international transportation contract of goods by road. This convention regulates the transportation contracts by road between European and non -European countries.

  • CPT (Carriage Paid To)

    The seller is responsible for the transportation costs necessary to deliver the goods to the agreed location. The transfer of responsibility for the goods takes place once the carrier has taken over the goods.

  • Certificate of Origin

    A document that attests that the exported goods were produced in the country of departure. The Certificate of Origin is generally required to benefit from preferential rates or to meet the requirements of international trade agreements.

  • Civil aviation safety

    Safety measures in place to ensure the protection of passengers, crews and planes against illicit acts such as terrorism and air piracy.

  • Combined transport

    Use of two or more different modes of transport, such as rail and truck, to transport goods from point A to point B.

  • Commercial invoice

    A commercial invoice is a crucial financial document in international transactions. It details the goods or services sold by a supplier to a buyer, including their quantity, description, unit price and total cost. The commercial invoice serves as proof of the agreement between seller and buyer, and is essential for accounting purposes, customs control and compliance with international tax and trade regulations.

  • Compliance program

    A set of procedures and policies to ensure that the company complies with export control regulations.

  • Control List

    List established by government authorities, listing goods and technologies whose export is regulated.

  • Customs

    Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods

  • Customs documents

    Documents required by customs authorities to allow the entry of goods into a foreign country, such as the commercial invoice, bill of lading, certificate of origin and customs declaration.

  • Customs invoice

    A customs invoice is a document that allows importers and exporters to send goods internationally. Goods carried across borders must go through customs in the country where the goods are being delivered to see if any tax or duties apply to them.

  • D
  • DAF (Delivered at Frontier)

    The seller is responsible for the provision of goods on the border designated by the buyer. The buyer is responsible for all the costs and risks linked to the shipment of the goods beyond this border.

  • DAP (Delivered At Place)

    goods (not unloaded) made available to the buyer in the country of import at the place specified in the contract (unloading, import clearance paid by the buyer)

  • DDP (Delivered Duty Paid)

    Seller is responsible for making the goods available at the agreed upon location in the country of destination. Seller shall also be responsible for all costs and risks associated with the shipment of the goods, including applicable customs duties and taxes.

  • DES (Delivered Ex Ship)

    The seller is responsible for the provision of goods aboard the ship designated by the buyer in the agreed destination port. The buyer is responsible for all costs and risks linked to the shipment of the goods once it has been discharged from the ship.

  • Dangerous goods

    A dangerous good (also known as hazardous material or hazmat) is any substance or material which have a risk to health, safety or the environment when they are transported, such as chemicals, radioactive materials and explosives.

  • Deq (Delivered Ex Quay)

    The seller is responsible for making the goods available at the quay designated by the buyer at the agreed port of destination. Buyer is responsible for all costs and risks associated with the shipment of the goods once they have been discharged from the vessel.

  • Direct export

    Export of sensitive goods or technologies directly to the end buyer.

  • Dual-use goods

    Dual-use items are goods, software and technology that can be used for both civilian and military applications.

  • E
  • ECCN

    The classification numbers for export control are alphanumeric codes used to identify dual-use goods, Dual-use means that the goods in question can be used for both civilian and military purposes. Knowing the right ECCN for your product makes it possible to determine if you need an export license.

  • EXW (Ex Works)

    EXW, short for "Ex Works" places most responsibility to the buyer. The seller is expected to have the goods ready for collection at the agreed place of delivery (commonly the seller's factory, plant or warehouse)

  • Embargo

    An embargo is a trade restriction, typically adopted by a government, a group of countries or an international organization as an economic sanction.

  • Export control

    Regulation and monitoring of sensitive goods and technologies to ensure national and international security.

  • Export declaration

    Document required for the export of goods, which contains information on goods, the recipient, the country of destination and the mode of transport.

  • Export documentation software

    Software, such as Secom, that a company uses to guarantee the accuracy, efficiency and verification of its export documentation and its compliance process.

  • Export license

    Official authorization issued by government authorities allowing the export of sensitive goods or technologies.

  • Export of defense products

    Export of products used for national defense, such as firearms, missiles, armored vehicles and ammunition.

  • Export of electronic products

    Export of electronic products that can be used for military applications, including electronic components, computers and software.

  • Export of high -tech equipment

    Export of high -tech equipment, which can have military or nuclear applications.

  • Export of nuclear equipment

    Export of equipment used for nuclear applications, which can be used for military purposes.

  • Export of organic products

    Export of organic products that can be used for the manufacture of organic or chemical weapons.

  • Export of perishable products

    Export of products that can deteriorate quickly, such as foodstuffs and pharmaceutical products.

  • Export of petroleum products

    Export of petroleum products that can be used for the manufacture of weapons or military equipment.

  • Export of surveillance products

    Export of products used for electronic surveillance, such as jamming devices or headphones.

  • Export of technologies

    Export of technologies, including software and source codes, which can be used for illegal activities or threatening national security.

  • Exporter

    Natural or legal person exporting goods or technologies.

  • Exporting chemicals

    Export of chemicals that can be used to make chemical weapons or explosives.

  • F
  • FCA (Free Carrier)

    The seller is responsible for the provision of goods to a carrier appointed by the buyer at the agreed place. The carrier can be a third party or an employee of the seller. The transfer of responsibility for the goods takes place once the carrier has taken care of the goods.

  • FOB (Free On Board)

    The seller is responsible for the provision of goods aboard the ship designated by the buyer in the agreed shipping port. The buyer is responsible for handling, loading and costs related to the shipment of the goods.

  • Fas (Free AlongSide Ship)

    The seller is responsible for the provision of goods along the ship designated by the buyer in the agreed shipping port. The buyer is responsible for handling, loading and costs related to the shipment of the goods.

  • Forwarding agent

    a company that arranges the shipment of products on behalf of a shipper. A freight forwarder may contract with outside carriers or use its own internal carriers. Consolidating LTL freight from different shippers is a common area of expertise for freight forwarders.

  • Freight

    Cost of transport of goods from point A to point B.

  • G
  • General license

    License which allows the export of specific goods or technologies without requiring prior authorization request.

  • Gross Weight

    The total weight of the goods, packaging and container ready for shipment.

  • H
  • HS

    The Harmonized System (HS) code is a categorization system created, developed, and maintained by the World Customs Organisation (WCO). Each country adds additional figures to a HS code to better describe the products, although the first six figures are common to all countries. Customs duties and import and export restrictions are influenced by HS codes and is commonly used in customs to clear shipments.

  • I
  • Import controls

    Regulation and monitoring of imports of goods and technologies to ensure national and international security.

  • Importer

    Natural or legal person importing goods or technologies.

  • Incoterm

    International term which describes the responsibilities and obligations of buyers and sellers within the framework of an international commercial transaction, in particular with regard to the transport and insurance of goods.

  • Indirect export

    Export of sensitive goods or technologies through a third country, where export controls are less strict.

  • International Chamber of Commerce

    Organization that offers business services to facilitate their international activities, such as certification of documents, commercial arbitration and the development of international trade standards.

  • L
  • Letter of credit

    Document issued by a bank to guarantee the payment of the seller, provided that certain conditions are met, such as the presentation of compliant documents and the shipment of goods within the time limits.

  • License control

    Authorization or license issued by government authorities for the export of sensitive goods or technologies.

  • License refusal

    Refusal of authorization or license for the export of sensitive goods or technologies, due to concerns related to national security or illegal activities.

  • Lists of Dual-Use goods

    List established by government authorities, listing goods that can be used for civil or military purposes.

  • Loading unit

    Container, palette or other unit used to group goods for transport.

  • M
  • Military technology export

    Export of technologies used for military applications.

  • N
  • National export control

    Regulation and monitoring of exports of sensitive goods and technologies at the national level.

  • Net Weight

    The basic weight of a product alone, without packaging.

  • Nuclear sector

    All activities related to the production, processing and use of nuclear energy.

  • P
  • Packing List

    A document that provides a detailed list of the items contained in each package or container to be exported. The Packing List is often used to allow customs authorities to verify that the goods declared on the Customs Invoice correspond well to the truly exported goods.

  • Prior export authorization

    Procedure in which government authorities must give their agreement before the export of sensitive goods or technologies.

  • Proforma invoice

    A document which provides a detailed estimate of the goods to be exported, including prices, quantities and specifications. Proforma Invoice has no real commercial value, but it is often used to obtain credit letters or to obtain export authorizations.

  • Prohibited entities

    Entities to whom it is forbidden to export goods or technologies because of their commitment to illegal activities or threaten national security.

  • R
  • Regulatory organization

    Government organization responsible for the application of laws and regulations relating to the expeditions of goods, such as customs, civil aviation and maritime security.

  • Risk Assessment

    Risk analysis process associated with the export of sensitive goods or technologies.

  • S
  • SECOM

    Software for import and export compliance developed in Switzerland, which allows you to quickly and easily create accurate export documents.

  • Sanctions

    Measures taken by governments to restrict or prohibit financial transactions with certain countries or certain entities.

  • Sensitive products and technologies

    Products and technologies that can have military or nuclear applications, or can be used for illegal activities or threaten national security.

  • Shipping documents

    Shipping documents are those forms, records, or certificates needed to take delivery of a shipment, or for a delivery to clear customs. Examples of shipping documents are the air waybill, bill of lading, certificate of origin, insurance certificate, packing list, box content list...

  • Shipping notice

    Prior notification of the seller to the carrier to organize the shipment of goods.

  • Surveillance

    Goods and technologies intended for electronic surveillance or information collection.

  • T
  • Technology transfer

    The transfer of information, technologies or technical knowledge between companies or between countries.

  • Technology transfer network

    Set of people and organizations involved in technology transfer.

  • Temporary export authorization

    Authorization issued by government authorities for temporary export of sensitive goods or technologies for exhibitions, demonstrations or tests, subject to subsequent re -export.

  • Temporary transit

    Temporary admission of goods in a country or customs area, with the obligation to re -export them within a given time without undergoing any modification, processing or processing on site.

  • Transit

    Passing goods through a country or customs area without being subject to customs duties or taxes, on the way to a final destination in another country or other customs area.

  • Transport company

    Company specializing in the transport of goods from a point A to a point B, using various modes of transport such as the road, the rail, the plane or the ship.

  • Transport insurance

    Subscribed insurance to protect goods during their transport against the risks of loss, theft or damage.

  • Transporter

    Company that carries goods on behalf of another company or an individual.

  • V
  • Value added tax (VAT)

    Tax imposed on added value at each stage of the production and distribution of a product or service. This tax is generally included in the final price paid by the consumer.

  • W
  • Warehouse

    A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

  • Wassenaar group

    Intergovernmental organization of 42 countries, created to promote transparency and responsibility in transfers of Dual-Use goods and technologies.

SECOM