Glossary · 40 terms
Trade terms, explained simply
40 terms
A
- Air Waybill (AWB)
- The air freight equivalent of a bill of lading.
B
- Balance payment
- The remaining amount paid to a supplier after the deposit, usually once goods are ready and, ideally, after an inspection.
- Bill of Lading (B/L)
- Document issued by a carrier confirming goods have been received for sea shipment.
C
- CBM
- Cubic metre; the volume measure used to price sea freight.
- Certificate of Origin
- A document stating the country where goods were made. It can affect the duty rate and is often requested at clearance.
- Chargeable weight
- The weight an air or courier carrier bills you for: the greater of the actual weight and the volumetric weight.
- Commercial Invoice
- The seller's invoice showing goods, values and terms.
- Consignee
- The person or business named to receive the goods at the destination.
- Consolidation
- Combining several small shipments into one container.
- Container (20ft / 40ft)
- Standard steel shipping boxes. A 20-foot container holds roughly 33 CBM; a 40-foot container roughly 67 CBM.
- Customs Broker / Clearing Agent
- A licensed professional who handles customs clearance on your behalf.
- Customs Declaration
- The formal statement of what is being imported, its value and its classification, submitted to customs for assessment.
D
- DAP / DDP
- Incoterms where the seller delivers to your named place. Under DAP you pay import duties and taxes; under DDP the seller pays them.
- Demurrage
- Charges for leaving a container at the port beyond the free days allowed, often caused by missing documents or delayed clearance.
- Deposit
- A part-payment made to confirm an order. Paying a deposit rather than the full amount up front reduces risk on a first order.
- Detention
- Charges for keeping a shipping line's container outside the port beyond the agreed time.
- Duty
- A tax charged on imported goods.
F
- FCL / LCL
- Full Container Load (you fill and pay for a whole container) and Less than Container Load (your goods share a container with others).
- FOB / CIF / EXW
- Common Incoterms defining who pays for shipping and insurance and when risk transfers.
- Freight Forwarder
- A company that arranges the transport of goods, booking space with carriers and coordinating the journey.
G
- Grey-market goods
- Genuine products sold outside the manufacturer's authorised channels, sometimes without valid warranty or local approvals.
H
- HS Code
- The Harmonised System code that classifies goods for customs.
I
- ICUMS
- Ghana's Integrated Customs Management System, the platform through which import declarations are processed.
- Incoterms
- Standard international trade terms that set out which party pays for each stage of delivery and when risk passes from seller to buyer.
L
- Landed Cost
- The total cost of a product once it reaches your premises.
- Lead time
- The time between placing an order and the goods being ready to ship, or to arrive. Used to plan reorders.
- Letter of Credit (L/C)
- A bank's promise to pay the seller once agreed documents are presented, protecting both sides on larger orders.
M
- Marine cargo insurance
- Insurance covering goods against loss or damage while in transit.
- MOQ
- Minimum order quantity.
O
- OEM / Private label
- Products made by a manufacturer but sold under your own brand name and packaging.
P
- Packing List
- Document listing the contents of each package.
- Port of loading / discharge
- The port where goods are loaded onto the vessel, and the port where they are unloaded (for Ghana, usually Tema or Takoradi).
- Pre-shipment inspection
- A check of goods before they leave the supplier, confirming quantity, quality and specifications before you pay the balance.
- Proforma Invoice
- A preliminary invoice before the sale is finalised.
S
- Sourcing agent
- A person or company paid to find suppliers, negotiate and follow up on orders on the buyer's behalf.
T
- T/T (Telegraphic Transfer)
- A bank-to-bank wire transfer, a common way to pay overseas suppliers. It offers little protection once sent.
- TEU
- Twenty-foot equivalent unit; the standard measure of container capacity. A 40-foot container is 2 TEU.
- Trade Assurance
- A platform payment-protection programme.
- Transit time
- How long goods spend travelling from the port of loading to the port of discharge.
V
- Volumetric weight
- A weight calculated from a parcel's dimensions, used by air and courier carriers when light items take up a lot of space.