Import Glossary

Government agency that controls the entry and exit of goods in a country, collects import duties and taxes, and checks compliance with health, safety and trade regulations.

Professional licensed by customs who represents the importer, files the import declaration, handles payment of duties and obtains release of the goods. Essential in most countries for commercial imports.

Mandatory marking for products sold in the European Economic Area (EU plus Norway, Iceland and Liechtenstein). It certifies that the product meets the safety, health and environmental requirements of the applicable European directives (low voltage, machinery, toys, radio equipment, etc.). Depending on the directive, it may require self-certification by the manufacturer or assessment by a notified body. Essential for importing and selling in Spain.

Document that certifies the country where the goods were manufactured. It can grant preferential duty rates under Free Trade Agreements (FTAs). In China, it is issued by the China Council for the Promotion of International Trade (CCPIT) or by export customs.

For sea or inland waterway transport only. The seller pays ocean freight to the destination port, but risk passes to the buyer when the goods are loaded at origin. Unlike CIF, the buyer is responsible for arranging and paying for cargo insurance. In practice, most importers prefer FOB (they control the freight) or CIF (they receive the cargo with insurance included).

The seller pays freight and insurance to the destination port. Risk passes to the buyer when the cargo is handed to the shipping line at the port of origin. Common trap: the supplier chooses the freight forwarder and the minimum insurance. Experienced importers prefer FOB to control the freight and take out their own insurance.

Applies to any mode of transport. The seller pays the freight and takes out broad insurance coverage (Institute Cargo Clauses A, all risks) to the place of destination. Risk transfers to the buyer on delivery to the first carrier at origin. Equivalent to CIF, but multimodal and with a higher minimum insurance coverage.

Mexican regulator that controls the import and sale of food, beverages, cosmetics, medicines, medical devices and chemicals. Many of these products require a Sanitary Registration or prior permit from COFEPRIS before they can be imported. The process can take from 3 months to 2 years depending on the type of product.

The seller pays transport to the agreed place of destination, but risk passes to the buyer when the goods are handed to the first carrier at origin. Similar to CIF but without mandatory insurance, and applicable to any mode of transport, not just ocean.

Intermediary that organizes the international transport of goods. Coordinates ocean or air freight, export documentation, cargo insurance and communication with the customs broker at destination. Essential for importers without previous experience in international logistics.

Statistical standard that defines how many defective units are tolerable in a batch inspected by sampling. Levels: AQL 0.65-1.0 for critical defects, AQL 2.5 for major defects, AQL 4.0 for minor defects. The larger the batch, the larger the required sample.

The air freight equivalent of the Bill of Lading. It evidences the contract of carriage between the shipper and the airline. Unlike the ocean B/L, it is not a transferable document of title; the goods are delivered to the consignee named on the document.

Tax levied on imported goods. It is usually calculated as a percentage of the CIF value of the goods and varies by product (HS code) and country of origin. Checking the correct HS code before importing is essential to estimate total costs.

Document issued by the insurer proving that the cargo in transit is covered. It specifies the type of coverage, insured value, beneficiary and risks covered. Banks require it in Letter of Credit transactions. Under CIF and CIP terms the seller issues it; under FOB the buyer arranges it with its own insurer.

Variable surcharge that shipping lines apply to offset fluctuations in the price of marine fuel (bunker). It is one of the surcharges added on top of the base freight rate. When requesting a freight quote, always ask for an "all-in quote" that includes BAF and other surcharges so you can compare correctly.

Voluntary supply chain security certification recognized by customs agencies in Latin America and the US. BASC-certified companies get faster customs clearance, fewer physical inspections and access to authorized economic operator programs. Highly valued by importers who handle large volumes or corporate clients that require traceability.

Fraud in which attackers intercept email communications and send altered bank details while posing as the supplier. Prevention: always verify by WeChat or phone any bank details received by email, especially if you are notified of a "change of account".

The most important document in ocean trade. It serves three purposes at once: (1) receipt confirming the shipping line received the cargo, (2) contract of carriage and (3) document of title to the goods. Without the original B/L or a telex release, the importer cannot collect the cargo at the destination port.

Banking instrument in which the buyer's bank guarantees payment to the supplier once the supplier presents the correct shipping documents under the agreed terms. It offers the greatest protection for both parties, but involves bank fees (0.5-1.5% of the value) and requires very precise documentation.

The land transport equivalent of the Bill of Lading. Document that evidences the contract of carriage by road or rail. In imports that include a final land leg (for example, from an inland port to the customer's warehouse), the waybill covers that segment of the journey and is required by customs in many Latin American countries to complete clearance.

Document issued by the agricultural authority of the exporting country certifying that plant products (fruit, vegetables, seeds, cut flowers, wood, wooden packaging) are free of regulated pests and diseases. Required by the plant health agencies of the importing country. In Mexico it is handled by SENASICA; in Colombia, by ICA; in Peru, by SENASA.

Document certifying that animal-origin or food products meet the health requirements of the importing country. Issued by the veterinary or health authority of the exporting country (in China, the GACC). Required for meat, dairy, seafood, honey and certain processed foods of animal origin.

6-digit numeric classification (extendable to 8-10 digits depending on the country) that identifies each type of goods in international trade. It determines the applicable duty rate, import restrictions and documentation requirements. An incorrect HS code can lead to cargo holds, fines or reclassification at a higher duty rate.

The seller sends the shipping documents through the bank; the importer's bank releases them only when the buyer makes payment. It offers more protection than a simple T/T: the supplier does not lose control of the goods until it receives payment.

The seller delivers the goods at the agreed place of destination, ready for unloading, without clearing them for import or paying duties. The buyer handles customs and duties at destination. More convenient than FOB for the importer, but the seller controls the freight.

The seller bears all costs and risks until delivery at the buyer's door, including import duties and taxes. The most convenient Incoterm for the importer, but the most expensive. Suitable for first trial orders or when you do not yet have a customs broker in place.

Charge for keeping the container beyond the free time allowed at the destination port. Free time is typically 7 to 14 days; after that, the shipping line charges for each day of delay. Having the documents ready before the ship reaches port avoids demurrage costs.

Mandatory document for transporting goods classified as dangerous under IMO (ocean) or IATA (air) regulations. It identifies the hazard class, UN number, quantity and packaging type. Products such as lithium batteries, aerosols, industrial chemicals or flammable items require a DGD. Non-compliance can result in the shipment being rejected, fines or criminal penalties.

Incoterms 2020 term that replaces the former DAT (Delivered at Terminal). The seller delivers the goods already unloaded at the agreed place of destination, which can be any location: terminal, warehouse or the buyer's factory. It is the only Incoterm in which the seller bears the risks and costs of unloading at destination. The buyer handles import clearance and duties.

Inspection carried out when 30-50% of production is complete. It detects systematic problems before they affect the entire batch. More costly logistically than a PSI, but invaluable for complex products or large orders.

Estimated date the goods will arrive at the port or final destination. It can change due to weather, port congestion or delays at transshipment. Monitoring the ETA with your freight forwarder lets you prepare the customs documents in advance and avoid demurrage.

Estimated date the ship or aircraft leaves the port of origin. Together with the ETA, it defines the transit window. Especially important during peak periods (Golden Week, Lunar New Year), when vessel space fills up weeks in advance.

The seller only makes the goods available at its factory. The buyer bears all costs and risks from that point: local transport to the port, Chinese export clearance and international freight. Not recommended without a local agent in China to handle export clearance.

The main document in international trade, issued by the exporter. It describes the goods sold, quantity, unit price, total value, payment terms and agreed Incoterm. Customs uses it to determine the customs value and calculate duties. It must match the Packing List and the B/L exactly. Invoice errors are the most common cause of customs clearance delays.

Document submitted to customs listing all goods on board a ship or aircraft. It includes the shipper's name, consignee, cargo description, weight, volume and number of packages. In many countries (US, Canada) it must be filed electronically days before the vessel arrives.

The taxable base on which import duties are calculated. Under the GATT/WTO method (the most widely used internationally), it equals the transaction value of the goods, usually the CIF value at the point of entry into the destination country. Declaring a value below the real one (undervaluation) is customs fraud and can result in fines, confiscation and a ban on importing.

For sea or inland waterway transport only. The seller delivers the goods alongside the vessel at the named port of origin, ready to be loaded. From that moment the buyer bears all costs and risks, including loading on board and export clearance. Uncommon for imports from China; mainly used for bulk commodities such as grain or minerals.

The seller delivers the goods to the carrier nominated by the buyer at the agreed place (which can be the factory itself). Unlike EXW, the seller handles export clearance. Recommended as an alternative to EXW when you want the supplier to handle Chinese export customs.

Mandatory certification from the US telecommunications agency for any electronic device that emits radio-frequency signals and is sold in the United States: smartphones, Wi-Fi routers, Bluetooth speakers, drones, radio equipment, etc. It requires testing at an accredited lab and has two routes: full certification (higher-power devices) and SDoC (Supplier's Declaration of Conformity, for lower-risk devices). A device without FCC authorization can be held at customs or pulled from the market with fines.

Full container load. The importer rents an entire container (20' TEU or 40' HQ) for its goods only. Cheaper per unit than LCL above a certain volume (approx. 14-16 m3), with lower risk of handling damage and faster transit, since no consolidation is needed.

US federal agency that regulates food, drugs, medical devices, cosmetics and supplements imported into or sold in the US. Importing products under its jurisdiction requires: facility registration with the FDA, Prior Notice of import and, depending on the product, a device clearance (510k) or new drug approval (NDA). Goods that do not meet FDA requirements are automatically detained at the border.

The cost of transporting goods, either by sea (ocean freight) or by air (air freight). It is usually quoted per CBM (cubic meter) for LCL or per container for FCL. Freight rates can vary significantly by season, route and market demand.

The most widely used Incoterm for importing from China. The seller covers transport from the factory to the port of origin, export clearance and loading on board the vessel. From that moment the buyer takes on freight, insurance and customs at destination. It lets the importer control and compare freight costs freely.

The final sample approved by the importer, which serves as the official standard for the entire production run. It is referenced in the purchase contract and given to the pre-shipment inspector as the point of comparison. Without a golden sample, any quality dispute is almost impossible to resolve in the importer's favor.

Chinese concept describing the personal relationships and trust built up over time. An importer with good guanxi with its supplier gets better prices, production priority in peak seasons and more flexibility when problems arise. It is built by paying on time, keeping communication ongoing and increasing volume gradually.

11 standardized terms published by the International Chamber of Commerce (ICC), currently in their Incoterms 2020 version. They define who pays for each leg of transport, where risk passes from seller to buyer and who handles insurance, customs and documentation. They are always stated with a specific place: "FOB Shanghai" or "CIF Buenaventura".

International standard certifying that an organization has a documented, audited system in place to ensure consistency and continuous improvement in its production processes. An ISO 9001 certified factory is a good indicator of operational maturity: it has standardized procedures, production and non-conformity records, and undergoes regular third-party audits. On its own it does not guarantee that the product meets your specific requirements, but it reduces risk compared with uncertified factories.

Prior permit that some countries require to import certain categories of products considered sensitive: weapons, hazardous chemicals, medicines, agricultural products, textiles, steel, home appliances, etc. In many cases the license is automatic (it is requested and granted without restriction); in others it is discretionary and may be subject to quotas or country-of-origin restrictions. Checking with your customs broker whether the product needs a license before placing the order avoids costly delays.

Check of the finished product at the supplier's factory before authorizing payment of the balance and shipment. It covers unit count, visual inspection by AQL sampling, functional tests, packaging checks and comparison with the golden sample. Result: a detailed report with photos so you can approve or reject the batch before it leaves China.

Document detailing the exact contents of each carton or pallet: product description, quantity per carton, gross and net weight, dimensions and total number of packages. Essential for customs at destination and for the freight forwarder when calculating freight. It must match the Commercial Invoice exactly.

The practice of selling a product made by a third party under the importer's own brand. It includes customizing the logo (screen printing, engraving, embroidery), packaging, labels and manuals. The most common way to start an import business with brand differentiation without investing in developing your own product.

Formal document that sets out the commercial agreement between importer and supplier. It should include: exact product description, technical specifications, quantity, unit price, Incoterm, payment method, reference to the golden sample, production timeline and penalties for non-compliance. Signed by both parties, it is the reference contract in case of a dispute.

The importer pays only for the space it uses inside a container shared with other shippers (groupage). Convenient for volumes below 12-14 m3. It involves longer transit than FCL (because of consolidation and deconsolidation) and a higher risk of damage from extra handling.

Total time from confirmation of the purchase order until the goods are ready to ship at the port of origin. It includes production, quality control and packaging, but not ocean or air transit. In China, typical lead time is 20 to 45 days depending on the type of product and level of customization.

Chinese concept equivalent to a person's "face", or public reputation. In business, making a supplier "lose face" through public criticism, aggressive confrontation or breaking agreements in front of others can damage the business relationship beyond repair. Disputes in China are always resolved privately and gradually.

Minimum number of units a manufacturer agrees to produce per order. It varies enormously: from 50 units for simple items to 5,000 or more for clothing or products that need a mold. The MOQ listed on Alibaba is rarely the real minimum: negotiating it down in exchange for a commitment to scale volume is common practice.

Contract that protects the design, technical specifications or proprietary information shared with the supplier or manufacturer. In China it has limited value in practice; real protection comes from splitting the process across multiple suppliers, registering your trademark in China and choosing manufacturers with an established reputation.

Mandatory technical standards for products sold in Mexico. They define requirements for safety, labeling, consumer information and technical specifications by product type. Examples: NOM-050 (general labeling for all products), NOM-051 (prepackaged food and beverages), NOM-003 (household electrical products). Mexican customs holds goods that do not comply with the applicable NOM. Checking the NOMs in force before importing is essential for the Mexican market.

The manufacturer owns the product design; the importer sells it under its own brand with a customized logo, color and packaging. It requires less upfront investment than OEM (no mold development or engineering). A common strategy to validate a market before investing in an exclusive design.

The importer designs the product and the manufacturer produces it to those exclusive specifications. It offers maximum differentiation and intellectual property protection, but requires investment in engineering, molds and a longer lead time. Recommended when the volume justifies the investment and the design is a key competitive asset.

Set of processes to ensure the product meets the agreed specifications. When importing from China, it includes a factory audit before the order, a DUPRO during production and a pre-shipment inspection (PSI) of the finished batch. Skipping quality control is the most costly and most common mistake among first-time importers.

European regulation (EC No. 1907/2006) that controls the manufacture and import of chemical substances in the EU. Importers are legally responsible for compliance: they must verify that products do not contain substances on the SVHC list (Substances of Very High Concern) in concentrations above 0.1% by weight. It applies to a wide range of products: textiles, plastics, household goods, toys, electronics and cosmetics. Non-compliance can lead to sales bans and significant fines.

Document sent to multiple suppliers with the product's technical specifications in order to obtain comparable quotes. A good RFQ includes product description, material, dimensions, finish, estimated quantity, preferred Incoterm, shipping destination and the date you need the goods. The quality of the RFQ directly determines the quality of the quotes you receive.

European directive (2011/65/EU) that restricts the use of six hazardous substances (lead, mercury, cadmium, hexavalent chromium, PBB and PBDE) in electrical and electronic equipment (EEE) sold in the EU. It complements CE marking for electronic products. Manufacturers must issue a RoHS declaration of conformity and keep supporting technical documentation. Relevant for any importer of electronics, digital accessories or home appliances bound for European markets.

Health authorization issued by the competent authority of the importing country to sell products that can affect public health: processed food, cosmetics, medicines, dietary supplements and medical devices. The authority varies by country: COFEPRIS in Mexico, INVIMA in Colombia, DIGEMID/DIGESA in Peru, ANMAT in Argentina. The process can take from 3 months to 2 years. Importing without a sanitary registration when one is required leads to confiscation and destruction of the product.

Document that the exporter (or the importer under FOB/EXW terms) sends to the freight forwarder with precise instructions for handling the shipment: Incoterm, consignee name and address, ports of origin and destination, required container type, B/L issuing instructions (to order, to the bank, telex release) and any special instructions. It is the main working document the freight forwarder uses to prepare the export documentation.

The process of identifying, evaluating and selecting suppliers for a given product. It includes searching platforms (Alibaba, 1688, Made-in-China), contacting multiple candidates via RFQ, verifying legitimacy, negotiating terms and requesting samples. Well-executed sourcing is the foundation of a profitable, reliable supply chain.

International financial messaging network connecting more than 11,000 banking institutions in 200 countries. T/T transfers to pay Chinese suppliers go through the SWIFT network. The SWIFT/BIC code of the supplier's receiving bank is required to make the transfer.

The most common payment method in trade with China. Standard structure: 30% deposit when the purchase order is confirmed, the remaining 70% before shipment (ideally after a passed pre-shipment inspection). With new suppliers, making the 70% conditional on a passed PSI is the best possible protection.

Charge for handling the container at the port terminal: moving it in the container yard and loading or unloading it from the vessel. It applies at both the port of origin and the port of destination. It is one of the surcharges that must be included in any freight quote to compare correctly.

Alibaba.com's payment protection service. The platform holds the payment until the seller presents the shipping documents or the buyer confirms receipt. It offers dispute resolution and refunds for documented breaches. Recommended for first transactions with unknown suppliers on Alibaba.

Intermediary company that buys from multiple factories and resells to the importer. Advantages: lower MOQ, wider product variety, better English. Disadvantages: higher prices than buying direct from the factory, less control over production. Useful for small orders or when you need a variety of products from different factories in a single shipment.

China's dominant messaging, payments and social platform, with more than 1.3 billion active users. The standard channel for day-to-day order follow-up with Chinese suppliers, who reply faster there than by email. Important: always confirm key agreements (specifications, prices, dates) in the Purchase Order or by email with the document attached, not just by chat.