From Incoterms 2020 to country-specific customs acronyms (CBP, ABF, DAFF, EORI), this is the working vocabulary our team uses daily on shipments from China to USA, Australia, Europe and Canada. Bookmark this — your next quote will make a lot more sense.
Incoterms (International Commercial Terms) define cost and risk responsibility between buyer and seller. The right Incoterm is one of the most cost-impactful decisions in a B2B shipment. Updated in 2020 by the ICC.
Buyer takes responsibility from the seller's factory gate. Cheapest for the seller, but buyer handles export customs, all freight, import customs and delivery — usually impractical for cross-border buyers without a local agent.
Seller delivers goods loaded on the vessel at the named China port. Buyer takes ocean freight, insurance, destination customs and delivery. Most common Incoterm for China ocean exports.
Seller pays freight to destination port. Buyer takes risk and insurance from origin. Ocean-only Incoterm.
Same as CFR but seller also buys insurance to destination port (minimum coverage — usually 110% of CIF value under ICC-A or ICC-C). Common for first-time importers.
Seller delivers to buyer's address at destination, but buyer handles import customs clearance and duty/tax. Risk transfers at delivery.
Seller handles everything — freight, insurance, import customs, duty, tax and last-mile to buyer's door. Simplest for buyer, highest commitment for seller. Dominant model for Amazon FBA and DTC.
No document, no movement. These are the standard documents required on every international shipment, with regulatory variations by destination.
Legal document issued by ocean carrier acknowledging receipt of cargo. Acts as receipt, contract of carriage, and (when negotiable) document of title.
B/L issued by the shipping line (Maersk, MSC, etc.) to the forwarder. Names the forwarder as consignee.
B/L issued by forwarder to the actual shipper/consignee. Allows forwarder to consolidate multiple shippers under one MBL.
Non-negotiable air cargo equivalent of B/L. 11-digit number tracks shipment across all airlines.
Seller's invoice to buyer used for customs valuation, duty calculation, and payment. Must show declared value, HS code, country of origin.
Itemized list of cargo: cartons, weights, dimensions, contents per carton. Used for customs inspection and warehouse receiving.
Document proving country of origin. Critical for preferential duty under FTAs (e.g., ChAFTA for Australia, RCEP, ChiCanFTA).
Document from shipper authorizing forwarder to act on their behalf and detailing shipment instructions.
Mode selection drives cost, transit time and reliability. Multimodal blends modes to hit cost-time sweet spots.
Cargo fills one entire 20' or 40' container. Lowest per-CBM cost above ~15 CBM. Faster than LCL — no deconsolidation delay.
Cargo shares a container with other shippers. Pay only for the volume/weight you use. Best for 1–15 CBM shipments.
Oversized cargo loaded individually, not in containers. Used for machinery, steel, project cargo, oversized fixtures.
Vehicles and rolling cargo driven on and off the vessel under their own power. Used for cars, trucks, mobile machinery.
Cargo moves through multiple modes (sea, rail, road) in the same intermodal container without unpacking. Reduces handling damage.
Sea freight to a transit hub (Dubai, Singapore, LAX), then air to final destination. Cuts transit ~50% vs pure ocean, ~35% the cost of pure air. See our multimodal services.
Every cross-border shipment touches customs. These terms apply globally regardless of destination.
Process of declaring imported goods to destination customs authority for assessment and release. Requires invoice, packing list, B/L or AWB.
6 to 10-digit code classifying every traded product. Determines duty rate, restrictions, FTA eligibility. Wrong HS = wrong duty = audit risk.
Guarantee that importer will pay duties owed. Required in USA for any commercial import. Can be Single Entry or Continuous (annual).
Duty = tariff on imported goods (based on HS code, country of origin, value). Tax = VAT/GST applied on duty-paid value.
Legal party responsible for declaring goods to customs and paying duties. Must have local tax/EORI/ABN registration.
Legal party responsible for ensuring exports comply with origin country regulations and licensing.
U.S. customs has the most specific terminology. Master these before your first US shipment — late filings carry steep penalties.
U.S. federal agency that enforces customs regulations at all ports of entry. Reports to the Department of Homeland Security.
10 data elements from importer + 2 from carrier, filed 24 hours before vessel loads at origin. Required on every ocean import. Late filing = $5,000 penalty per shipment.
Electronic manifest filing required for all cargo entering the USA by ocean (24-hour rule) or air (4-hour rule).
CBP's modern single-window clearance system. Replaced legacy ACS. All customs entries processed via ACE.
U.S. rule exempting shipments under $800 (per consignee per day) from duties. Heavily used by DTC e-commerce and Amazon FBA reverse-flow.
U.S. fee on commercial imports: 0.3464% of value, min $32.71, max $634.62 per entry. Often overlooked in landed-cost calculations.
U.S. fee of 0.125% of value on ocean imports at U.S. ports. Air shipments are exempt.
Partner Government Agencies (PGAs) that regulate specific product categories: food/cosmetics (FDA), electronics (FCC), vehicles (DOT), chemicals (EPA).
U.S. zones where cargo can be stored, processed and re-exported without paying duties. Defer duty until goods enter U.S. commerce.
SEB covers one shipment. Continuous bond (annual) cheaper if importing more than ~4 shipments/year. Required for every formal entry.
Australia combines border control (ABF) with strict biosecurity (DAFF). Compliance failures cause delays and treatment costs.
Australia's customs and border protection agency. Handles import clearance, valuation, duty assessment.
Australia's biosecurity agency. Inspects wood packaging, plant products, food. Formerly known as AQIS.
Old name for what is now under DAFF biosecurity. Still commonly used in trade documentation.
11-digit ID required for any Australian importer. Without it, no clearance, no GST input credits.
DAFF's online lookup for biosecurity import conditions per product category. First thing to check for any new commodity.
Simplified clearance for goods under AUD $1,000. No duty (except GST). Used for sample shipments and small parcels.
Required for any goods over AUD $1,000. Submitted via licensed broker to ABF.
10% tax on imported goods at value plus duty plus freight. Refundable for GST-registered importers (input tax credit).
Newer database replacing ICON for some commodity classes. Required reference for biosecurity-sensitive imports.
Required treatment for wood packaging (ISPM 15) and some agricultural goods. Methyl bromide or heat treatment options.
The "what actually happens" terms between container off-load and final delivery.
Short-distance trucking between port/rail terminal and warehouse. Often where shipments lose hours to chassis shortages.
Wheeled frame that carries the container. Must be pre-allocated at peak season U.S. ports.
One shipper's cargo fills an entire truck. Faster, more secure, lower $/CBM above ~12 CBM.
Consolidated cargo. Pay only for space used. Best for 1–8 CBM destination distribution.
Bonded facility where LCL containers are deconsolidated and cargo released to individual consignees.
Mandatory online booking to pick up containers at LA/Long Beach during certain hours. Missed appointments cost re-booking fees + demurrage.
Signed (or electronic) confirmation that cargo was delivered to consignee. Required for damage claims and accounting closeout.
Carrier's projected arrival date. Subject to weather, port congestion, schedule slippage.
A "freight quote" is rarely one number. Here's what you're actually paying for.
Carrier announcements (usually monthly) raising base rates. Most common Aug–Oct peak season.
Surcharge during high-demand months (typically Q3-Q4). Locked into spot rates, sometimes contract.
Fuel-cost surcharge on ocean freight. Changes monthly with bunker fuel prices.
Charge for keeping a container at port past free time (typically 4-7 days). $200-500/day in major ports.
Charge for keeping the container outside the port past free time (during inland delivery). Separate from demurrage.
Per-container fee at origin and destination ports for loading/unloading. Always quoted separately.
USA AMS or EU ENS pre-load filing fee, $25-40 per shipment.
USA-specific: per-shipment fee for ISF filing and associated bond (~$50-100).
Our team handles these every day across China-to-USA, Australia, Europe and Canada lanes. Ask us anything.
