Logistics & Customs Glossary

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Logistics & Customs Glossary

Clear, plain-language definitions of the freight, shipping and customs terms you’ll come across when moving goods around the world.

Not sure how to classify your product? Our customs team can help →

A

B

C

D

E

F

G

H

I

L

M

N

O

P

R

S

T

U

W

A

Ad Valorem Duty

A duty calculated as a percentage of the declared value of imported goods, rather than by weight or quantity. Most U.S. import duties are assessed this way.

Air Waybill (AWB)

The transport document issued by an airline or forwarder for air cargo. It serves as a receipt for the goods and the contract of carriage, but unlike an ocean bill of lading it is not a document of title.

All-in Rate

A freight quote that bundles the base rate with surcharges such as fuel, security and terminal fees, so the shipper sees one total price.

B

Bill of Lading (B/L)

The key document in ocean shipping. It acts as a receipt for the cargo, evidence of the contract of carriage, and, when negotiable, a document of title to the goods.

Bonded Warehouse

A secured facility approved by customs where imported goods can be stored without paying duty until they are released into the domestic market or re-exported.

Break Bulk

Cargo that is loaded piece by piece rather than in containers, such as machinery, steel or oversized project cargo.

C

Cargo Insurance

Coverage that protects the value of goods against loss or damage in transit. Carrier liability is usually limited, so cargo insurance fills the gap.

Certificate of Origin

A document that certifies the country where goods were manufactured. It is often required to claim reduced duty rates under a free trade agreement.

Chassis

The wheeled trailer frame used to move an ocean container over the road. Chassis availability can affect how quickly containers leave the port.

Consignee

The party named on the shipping documents to receive the goods at destination, usually the buyer or their agent.

Container Freight Station (CFS)

A warehouse near a port where LCL shipments are consolidated into containers for export or unloaded and separated after import.

Customs Bond

A financial guarantee required by U.S. Customs and Border Protection that ensures duties, taxes and penalties will be paid. Importers use either a single-entry or a continuous bond.

Customs Broker

A licensed professional who prepares and files import entries with customs, classifies goods, calculates duties and helps importers stay compliant.

Cut-off Time

The latest time cargo or documents can be delivered to the terminal or carrier to make a scheduled sailing or flight.

D

Demurrage

A charge from the carrier or terminal when a container stays inside the port beyond the allowed free time.

Detention

A charge for keeping the carrier’s container outside the terminal longer than the agreed free time, for example while it is being unloaded at a warehouse.

Drayage

The short-distance trucking of containers between a port or rail yard and a nearby warehouse or distribution center.

Duty Drawback

A refund of up to 99% of duties, taxes and fees paid on imported goods that are later exported or destroyed.

E

Electronic Export Information (EEI)

Export data filed through the Automated Export System (AES), required for most U.S. exports valued over $2,500 per Schedule B number or that need a license.

Entry Summary (CBP Form 7501)

The form filed with U.S. Customs that declares the classification, value and duties owed on an import shipment.

Estimated Time of Arrival (ETA)

The date and time a vessel, flight or truck is expected to reach its destination. ETAs often change as a shipment moves.

F

Foreign Trade Zone (FTZ)

A designated area treated as outside U.S. customs territory. Goods can be stored, assembled or processed there with duties deferred, reduced or eliminated.

Free Trade Agreement (FTA)

A treaty between countries that lowers or removes tariffs on qualifying goods. USMCA is one example for trade between the U.S., Mexico and Canada.

Freight Forwarder

A company that arranges the movement of goods on behalf of shippers, booking space with carriers and coordinating documents, customs and delivery.

Full Container Load (FCL)

A shipment that fills an entire container for one shipper, usually a 20-foot or 40-foot box.

G

General Order (G.O.)

Status given to imported cargo that is not entered with customs within 15 days of arrival. The goods move to a G.O. warehouse and may eventually be sold at auction.

Gross Weight

The total weight of a shipment including its packaging and pallets.

H

Harmonized Tariff Schedule (HTS)

The U.S. list of product classifications and duty rates for imported goods, published by the U.S. International Trade Commission. Every import is classified under a 10-digit HTS number.

HS Code

The six-digit Harmonized System code used worldwide to classify traded goods. Countries add extra digits for their own tariff schedules.

I

Importer of Record (IOR)

The party legally responsible for making sure imported goods comply with all laws and that duties and fees are paid.

Importer Security Filing (ISF)

Also called 10+2. Shipment data that importers must submit to U.S. Customs at least 24 hours before ocean cargo is loaded at the foreign port.

Incoterms

Standard trade terms published by the International Chamber of Commerce, such as FOB, EXW and DDP, that define who pays for and bears the risk of each leg of a shipment.

L

Less than Container Load (LCL)

A shipment too small to fill a container, so it shares space with other shippers’ cargo and is billed by volume or weight.

Less than Truckload (LTL)

Freight that does not need a full trailer and is combined with other shipments on the same truck.

Letter of Credit

A bank guarantee that the seller will be paid once they present documents proving the goods were shipped as agreed.

M

Manifest

The list of all cargo on a vessel, aircraft or truck, submitted to customs before arrival.

Merchandise Processing Fee (MPF)

A fee U.S. Customs charges on most formal imports, calculated as a percentage of the shipment value with a minimum and maximum per entry.

N

NVOCC

Non-Vessel Operating Common Carrier. A company that issues its own bills of lading and sells ocean shipping space without operating ships.

O

Ocean Freight

The transport of goods by sea in containers or as bulk cargo. It is usually the most cost-effective option for large international shipments.

P

Packing List

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

Port of Entry

The place where goods arrive and are cleared by customs into the country.

Pre-Alert

A notice and set of documents sent to the destination team or broker before cargo arrives, so customs clearance can start early.

R

Reefer Container

A refrigerated container that keeps temperature-sensitive goods like food, wine or pharmaceuticals at a set temperature.

S

Section 301 Tariffs

Additional U.S. duties imposed under Section 301 of the Trade Act of 1974, most notably on many goods imported from China.

Shipper

The party that sends the goods, often the seller or manufacturer, named on the bill of lading.

T

Tariff

A tax placed on imported goods. Tariff rates in the U.S. are set out in the Harmonized Tariff Schedule.

TEU

Twenty-foot Equivalent Unit. A standard measure of container capacity, where a 40-foot container equals two TEUs.

Transit Time

The time it takes for a shipment to travel from origin to destination.

Transloading

Moving cargo from one mode or container to another, such as unloading an ocean container into a domestic 53-foot trailer.

U

Ultimate Consignee

The party in the U.S. who will receive the goods at the end of the import transaction, which may differ from the importer of record.

W

Warehouse Receipt

A document issued by a warehouse confirming it has received specific goods for storage.

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