Trade & Shipping Glossary

Short, plain-language definitions of the terms that show up on invoices, packing lists, bills of lading and letters of credit. Tap a linked term to open the matching free tool.

Assessable Value: The customs value used as the base for calculating import duty — often the CIF value, but some countries use a separately determined transaction or customs value.
B/L (Bill of Lading): Bill of Lading: the transport document issued by an ocean carrier as a receipt for the goods, evidence of the contract of carriage, and (for an original, negotiable B/L) a document of title.
C/O (Certificate of Origin): Certificate of Origin: a document stating which country goods were produced in, used either to claim a preferential tariff under a trade agreement or simply to declare origin.
CBM (Cubic Meter): Cubic Meter: the standard unit for measuring the volume a shipment takes up, used to work out container fit and often the shipping cost.
CFR (Cost and Freight): Cost and Freight: an Incoterms rule where the seller pays the cost and freight to the named port, but risk transfers to the buyer once the goods are loaded on board.
CIF (Cost, Insurance and Freight): Cost, Insurance and Freight: an Incoterms rule and a valuation basis — the goods value plus international freight and insurance, commonly used as the base for calculating import duty.
CIP (Carriage and Insurance Paid To): Carriage and Insurance Paid To: an Incoterms rule where the seller arranges and pays for carriage and insurance to the named destination, but risk transfers once the goods are handed to the first carrier.
Chargeable Weight: The higher of a shipment's actual (gross) weight and its volumetric weight, used by carriers to calculate freight cost, especially for air freight.
Commercial Invoice: The seller's itemized bill for goods actually shipped, used by customs to assess duty and by the buyer to pay or claim the goods — different from a proforma invoice, which is a quotation.
Consignee: The buyer named on a shipment's documents, to whom the carrier is instructed to deliver the goods.
Container (TEU / FEU): A standardized steel box for ocean and intermodal freight, most commonly 20 or 40 feet long (TEU/FEU); see exact internal dimensions and weight limits for each type.
Customs Broker: A licensed agent who prepares and files customs declarations and pays duty on an importer's behalf.
DAP (Delivered at Place): Delivered at Place: an Incoterms rule where the seller delivers when the goods are made available, ready for unloading, at the named destination — the seller bears risk and cost up to that point.
DDP (Delivered Duty Paid): Delivered Duty Paid: an Incoterms rule where the seller delivers the goods cleared for import at the named destination, bearing all cost and risk including import duty and tax.
Demurrage: A charge by the shipping line for keeping a full container at the port or terminal beyond the free time allowed, before it is picked up (compare detention).
Detention: A charge by the shipping line for keeping its container (empty or full) outside the port beyond the free time allowed, before it is returned (compare demurrage).
Dumping / Anti-Dumping Duty: An extra duty imposed when an imported product is sold below its normal value in a way that harms the domestic industry of the importing country.
Duty (Import Duty): A tax charged by the importing country's customs on goods brought in, usually a percentage of the customs value; the rate depends on the product's HS code and country of origin.
EXW (Ex Works): Ex Works: an Incoterms rule where the seller's only obligation is to make the goods available at their own premises — the buyer arranges and pays for everything from there, including export clearance.
FCA (Free Carrier): Free Carrier: an Incoterms rule where the seller delivers the goods, cleared for export, to a carrier or place named by the buyer.
FOB (Free on Board): Free on Board: an Incoterms rule, used for sea freight only, where the seller's risk and cost transfer once the goods are loaded on board the vessel at the named port.
Freight Forwarder: An agent who arranges transport, documentation and customs formalities on behalf of a shipper or consignee, without necessarily owning the ships, trucks or aircraft used.
FTA (Free Trade Agreement): Free Trade Agreement: a treaty between countries that reduces or removes import duty on qualifying goods traded between them, subject to meeting the agreement's rules of origin.
GSP (Generalized System of Preferences): Generalized System of Preferences: a program under which developed countries give reduced or zero tariffs to goods from eligible developing countries, without a full free trade agreement.
Gross Weight / Net Weight: Gross weight is the total weight including packaging; net weight is the weight of the goods alone. Both are shown per carton and in total on most packing lists.
HS Code: Harmonized System code: the standardized product classification code used worldwide to determine import duty, trade statistics and licensing requirements.
Incoterms: A set of standard trade terms (EXW, FOB, CIF, DAP and others) published by the ICC that define who — buyer or seller — handles transport, insurance, risk and customs clearance, and at what point.
Landed Cost: The total cost of getting goods from the seller to the buyer's door, cleared through customs: goods value, freight and insurance (CIF), plus import duty, tax and handling fees.
L/C (Letter of Credit): Letter of Credit: a bank's conditional payment guarantee to the seller, released only when the seller presents documents that strictly match what the letter of credit requires.
LCL / FCL: LCL (Less than Container Load) means a shipment shares container space with other shippers' cargo; FCL (Full Container Load) means the shipper uses an entire container alone.
Packing List: A detailed list of a shipment's cartons, contents, quantities, weights and dimensions, used by the carrier, customs and the buyer to check what actually arrived.
Proforma Invoice: A preliminary invoice sent before shipment, used by the buyer to arrange payment or an import licence — not a demand for payment and not used to clear the goods through customs.
Shipping Mark: The text and symbols printed or stencilled on the outside of an export carton — main mark, destination, order number and carton number — used to identify a shipment without opening it.
T/T (Telegraphic Transfer): Telegraphic Transfer: a same-day or next-day electronic bank transfer, one of the most common ways international trade payments are settled.
UCP 600: Uniform Customs and Practice for Documentary Credits 600: the ICC's rule set that most letters of credit follow, governing how banks examine documents and handle discrepancies.
VAT / GST: Value Added Tax / Goods and Services Tax: a consumption tax many countries charge on imports, usually calculated on the CIF value plus duty.
Exchange Rate: The rate at which one currency converts into another; check it before quoting or invoicing in a currency different from your own.
Notify Party: A party (in addition to the consignee) that the carrier notifies when a shipment arrives, often a customs broker or the buyer's agent.

General definitions for quick reference, not legal or customs advice — exact meanings can vary by country and contract. Where a related free tool exists, the term links to it.

How to use this glossary

Search this page (Ctrl/Cmd+F) for the term you saw on a document, or scan the list if you're not sure of the exact wording. Where a term has its own calculator or generator on Triplicate, the term links straight to it.

Terms can vary by country and contract

These are general, widely used definitions. The exact legal meaning of a term — especially duty, tax and documentation requirements — can differ between countries, and a specific contract or letter of credit can define a term more narrowly than the general trade usage. Always follow the exact wording of your own contract or L/C.

Where to go for more detail

For the 11 Incoterms rules in depth, see the Incoterms 2020 chart. For duty, VAT/GST and total cost, use the landed cost calculator. For a letter of credit, use the L/C checklist. For a shipping mark, HS code or certificate of origin, each has its own free tool below.

Common questions

Are these official legal definitions?

No — they're plain-language explanations for quick reference. For a legal or contractual definition, refer to the applicable law, your contract, or the official ICC Incoterms 2020 rules and UCP 600 text.

Why isn't my term in the glossary?

This glossary covers the terms most commonly seen on trade documents; it isn't exhaustive. If a term is specific to one country's customs or tax system, check that country's customs authority.

Do Incoterms rules mean the same thing in every country?

Yes — Incoterms rules are an international standard maintained by the ICC and are meant to mean the same thing everywhere they're used, which is exactly why they're useful in international contracts. What can vary by country is how customs values goods, calculates duty, or handles VAT/GST — the Incoterms rule itself doesn't change.

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