Visual checkpoints for The International Trade Dictionary
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Research notes
A practical view of the sourcing work behind this page.
Supplier examples
Details buyers can review before they compare supplier options.
Checklist view
China-side coordination evidence organized for clearer decisions.
Practical review
Operational details that help reduce avoidable sourcing mistakes.
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Preparation notes for production, packing, or shipment follow-up.
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A
Air waybill (AWB)
The transport document for air freight — the carrier's receipt and contract of carriage. Unlike an ocean bill of lading, it is not a document of title.
Alibaba
The largest English-language B2B marketplace for Chinese suppliers. Listings are marketing, not verification — see Alibaba vs 1688 vs a Sourcing Agent.
Anti-dumping duty
An extra import duty a country charges on specific foreign goods judged to be sold below fair value. Can multiply the cost of affected product categories overnight.
AQL (Acceptable Quality Limit)
The statistical sampling standard used in inspections: it defines how many samples are checked from a lot and how many defects are tolerable before the lot fails. The standard is explained in depth in AQL Standards Explained.
Advising bank
In a letter of credit, the bank (usually in the seller's country) that authenticates the credit and notifies the seller it exists.
B
B2B marketplace
An online platform where businesses buy from businesses — Alibaba, 1688, Global Sources, Made-in-China. A supplier discovery channel, not a verification layer.
Bill of lading (B/L)
The key ocean-freight document: the carrier's receipt for the cargo, the contract of carriage, and — as a negotiable document — often the title to the goods themselves. Whoever holds the original B/L controls the cargo.
Bonded warehouse
A customs-controlled warehouse where imported goods can be stored with duties deferred until they are released into the market.
C
Canton Fair
China's largest trade fair, held in Guangzhou each spring and autumn. See the China Trade Fairs Guide.
Cargo insurance
Insurance covering loss or damage to goods in transit. No common Incoterm except CIF and CIP obliges anyone to buy it — decide, or the gap is yours.
CBM (cubic meter)
The volume unit of freight. Your shipment's CBM drives LCL pricing and determines what container it needs.
CE marking
The manufacturer's declaration that a product meets applicable EU health, safety, and environmental rules. Required for covered product groups before EU sale — see the CE Marking Guide.
Certificate of origin
A document certifying where goods were manufactured. It can change your duty rate under trade agreements — ask for it before shipment.
CFR (Cost and Freight)
Incoterm: the seller pays freight to the destination port, but risk passes to the buyer when goods are loaded on board. CIF is CFR plus insurance.
CIF (Cost, Insurance and Freight)
Incoterm: seller pays freight and minimum insurance to the destination port; risk still passes at loading. Compare in FOB vs CIF vs DDP.
CIP (Carriage and Insurance Paid To)
The multimodal cousin of CIF: seller pays carriage and insurance to the named place; risk passes at handover to the first carrier. Requires higher insurance cover than CIF under Incoterms 2020.
Commercial invoice
The seller's bill stating what was sold and its declared value — the basis for customs duty assessment. See how to read one.
Consolidation
Combining cargo from multiple suppliers or shippers into one shipment — Yiwu and multi-supplier orders live on it. See freight consolidation.
Customs broker
A licensed professional who files import declarations and clears goods through customs on the importer's behalf. The paperwork is theirs; the liability stays yours.
Customs clearance
The official process of declaring goods, paying duties and taxes, and obtaining release so a shipment can enter a country. See customs clearance & documentation.
Customs duty
The tax charged by the destination country on imported goods, normally a percentage of declared value set by the product's HS code.
D
DAP (Delivered at Place)
Incoterm: seller delivers ready for unloading at the named destination; buyer unloads and clears import. See the DAP guide.
DDP (Delivered Duty Paid)
The maximum-obligation Incoterm: seller delivers to the named place with import duties paid. Real DDP requires the seller to act as importer in your country — many "DDP" offers from China are not that. See the fake-DDP warning.
Demurrage
Charges that accrue when a container stays at the port or terminal beyond its free days — one of the classic surprise costs of slow customs clearance.
Deposit / balance payment
The standard China order structure: a deposit (commonly around 30%) before production and the balance before or after shipment. See payment methods explained.
DPU (Delivered at Place Unloaded)
Incoterm: like DAP, but the seller also unloads — the only term that obliges the seller to unload.
Dropshipping
A retail model where the seller never holds stock: each customer order ships directly from the supplier. Simple to start; quality control and shipping times are the hard parts.
E
Entrepot trade
Importing goods to re-export them to a third country, often after storage or repackaging — the trade model of hub ports like Dubai, Singapore, and Hong Kong.
Escrow
A payment held by a neutral third party and released to the seller when agreed conditions are met — a protection layer for smaller online transactions.
ETD / ETA
Estimated Time of Departure / Arrival — the schedule bookends of a shipment. Treat both as estimates and plan buffers.
Export declaration
The filing that notifies the origin country's customs that goods are leaving. In China trade it is handled by a party with Chinese export rights.
EXW (Ex Works)
The minimum-obligation Incoterm: the seller makes goods available at their own premises; the buyer handles everything else — including, awkwardly, export clearance. See the EXW guide.
F
Factory audit
An on-site assessment of a factory's existence, capacity, quality systems, and working conditions before you commit orders. See supplier verification & factory audits.
FAS (Free Alongside Ship)
Incoterm for bulk/non-containerized sea cargo: seller delivers goods alongside the vessel; buyer handles loading and everything after.
FBA (Fulfillment by Amazon)
Amazon's fulfillment program with strict carton, labeling, and routing rules for inbound shipments. See FBA shipping requirements.
FCA (Free Carrier)
Incoterm: seller delivers export-cleared goods to the carrier or place the buyer names; works for every transport mode. The ICC's recommendation for containers — see the FCA guide.
FCL (Full Container Load)
A container booked exclusively for one shipper's cargo. Compare with LCL in LCL vs FCL.
FOB (Free On Board)
The workhorse Incoterm of China trade: seller clears export and loads the vessel; risk passes to the buyer on board at the named port. See FOB vs CIF vs DDP.
Force majeure
A contract clause excusing performance when extraordinary events — disasters, wars, port closures — make it impossible. Read what your supplier's version actually covers.
Freight forwarder
The logistics company that books and manages transport, consolidation, and freight documents on your behalf. Compare their offers properly: how to compare freight quotes.
G
Golden sample
The approved reference sample both sides sign off before production — the physical standard the goods must match and inspections judge against.
Gross weight
The weight of goods including all packaging — the number freight and some duty calculations use. Net weight excludes packaging.
H
HS code (Harmonized System)
The international classification number for your product. It determines the duty rate, and misclassification is a customs risk carried by the importer. Full method: the HS Codes Guide.
I
Importer of record
The legal party responsible for an import: the declaration, the duties, the compliance. Usually you — even when agents do the paperwork. See Import vs Export.
Incoterms
The ICC's standardized trade terms (EXW, FOB, CIF, DDP…) defining who pays for and risks each leg of a shipment. Start with the Incoterms guide.
ISO 9001
The international quality management system standard. A certified factory has audited processes — which is meaningful, and still not the same as your product being good.
L
Landed cost
The true total cost of goods in your warehouse: product + freight + insurance + duties + taxes + fees. The only price that matters — compute yours with the Landed Cost Calculator.
LCL (Less than Container Load)
Sharing container space with other shippers — flexible for small volumes, with consolidation time and handling risk as the price. See LCL vs FCL.
Lead time
The time from order confirmation to goods ready (production lead time) or delivered (total lead time). Quotes usually state the first; your planning needs the second.
Letter of credit (L/C)
A bank-issued payment commitment that pays the seller against documents matching the credit's exact terms. See the Letter of Credit guide.
M
Manufacturer / factory
The party that actually produces goods, owning lines and processes — as opposed to a trading company reselling them. Learn to tell them apart: Factory vs Trading Company.
Mold / tooling
The custom production equipment made for your product's shape. Tooling costs are paid up front, and who owns the mold decides who controls your product's future. Full guide: Tooling & Molds Explained.
MOQ (Minimum Order Quantity)
The smallest quantity a supplier will produce or sell per order — set by production efficiency, not stubbornness, and sometimes negotiable. See Understanding MOQ.
N
Net weight
The weight of the goods alone, excluding packaging. Appears with gross weight on every packing list.
Notified body
An EU-designated organization that assesses conformity of higher-risk products for CE marking. Its four-digit number appears beside the CE mark — verify it in the NANDO database.
O
ODM (Original Design Manufacturer)
A factory that designs and makes products which buyers rebrand as their own — you get speed, they keep the design. See OEM vs ODM vs Private Label.
OEM (Original Equipment Manufacturer)
A factory manufacturing to your design and specification — maximum control, higher MOQs, and your IP on the line.
Open account
Payment terms where goods ship before payment is due (e.g., net 30/60) — great for buyers, rare from Chinese suppliers without long history or credit insurance.
P
Packing list
The document describing how a shipment is physically packed: cartons, quantities, weights, dimensions. Customs and your warehouse both read it — it must match reality.
Pre-shipment inspection (PSI)
A quality check of finished goods before they ship — the last moment problems are cheap to fix. See the Pre-Shipment Inspection Guide.
Private label
Selling a manufacturer's product under your own brand. Convenient — and in markets like the EU it can make you the legal manufacturer. See the Private Label Sourcing Guide.
Proforma invoice (PI)
The supplier's formal pre-order quotation-invoice stating goods, prices, quantities, and terms. Paying its deposit is the point of commercial commitment.
Purchase order (PO)
The buyer's formal order document: specifications, quantity, price, terms, and dates. The written record disputes are settled against.
Q
Quality control (QC)
The system of checks — samples, in-production checks, inspections — keeping production aligned with your specification. The full method lives in Quality Control & Compliance.
Quotation
A supplier's offer: price, MOQ, lead time, and terms. Quotes with different Incoterms are not comparable until aligned — see how to compare supplier quotations.
R
RCEP
The Regional Comprehensive Economic Partnership — the trade agreement spanning China, ASEAN, Japan, Korea, Australia, and New Zealand, with preferential tariffs for qualifying origin goods. Full guide: RCEP Explained.
Re-export / re-import
A re-export is an imported good shipped onward to a third country (the engine of entrepot hubs like Dubai and Singapore); a re-import is a country’s own good coming back home. Both distort bilateral trade statistics — and explain why two countries’ trade figures never quite match.
RMB / CNY
China's currency (renminbi; yuan is the unit). Domestic suppliers and markets often price in RMB; exports are typically invoiced in USD.
RoHS
The EU restriction on hazardous substances (lead, mercury, certain phthalates and more) in electrical and electronic equipment.
S
Sample
The pre-production or production specimen you approve before committing. How to request and judge them: samples guide.
Sea freight
Ocean transport — the cheapest way to move volume and the slowest. The decision framework is in Sea vs Air Freight.
Shipping mark
The identification printed on export cartons — consignee, order, carton number, destination — so your cargo survives a crowded warehouse.
SKU (Stock Keeping Unit)
A unique identifier for each distinct product variant you sell. Every color and size is its own SKU — and its own MOQ conversation.
Sourcing agent
A China-side partner who finds, verifies, and coordinates suppliers on the buyer's behalf. What they do and don't: What Is a Sourcing Agent.
Supply chain
The full network turning raw materials into delivered products — and you are its orchestrator. See Global Supply Chains.
T
T/T (Telegraphic Transfer)
An international bank wire — the payment method behind most China orders, usually structured as deposit and balance. See payment methods.
Tariff
A duty imposed on imported goods, set by the destination country per HS code — and shifted by trade agreements and trade disputes. See tariffs & trade agreements.
Technical file
The design data, risk assessments, and test evidence behind a CE-marked product's Declaration of Conformity. Own-brand importers must be able to produce it.
Third-party inspection
An independent company checking your goods against your specification — independence is the point. See third-party QC labs.
Trade Assurance
Alibaba's built-in order protection: pay through the platform and dispute within its terms. Useful for smaller orders; read what it actually covers.
Trading company
A supplier that owns no production — it buys from factories and resells, adding convenience and a margin. See Factory vs Trading Company.
Transshipment
Cargo changing vessels at an intermediate port en route. Normal in ocean freight; each transfer adds time and a little handling risk.
U
UKCA
The UK's post-Brexit conformity mark for Great Britain — the CE mark's British counterpart, with CE still accepted in defined cases. Verify current UK rules before shipping.
Usance L/C
A letter of credit paying at a set period after document presentation (30–90+ days), giving the buyer financing room. Contrast with an at-sight L/C, which pays within days.
V
VAT (Value Added Tax)
The consumption tax most destination countries charge on imports, on top of duty — typically calculated on goods value plus freight plus duty.
VAT rebate (export)
China's refund of domestic VAT to exporters on many goods — part of why export pricing works the way it does, and one reason "who exports" matters under EXW.
Volumetric weight
A billing weight calculated from package volume. Air and express carriers charge the higher of actual and volumetric weight — light, bulky goods pay for their size.
W
White label
A generic product produced for many brands to sell under their own names — private label's faster, less exclusive sibling.
Y
Yiwu Market
The world's largest small-commodity wholesale market, in Zhejiang Province. Five districts, tens of thousands of booths — decoded in the Yiwu Market Guide.
Go deeper than a definition.
When a term turns into a real decision, these are the guides behind the words.
What Is International Trade?
The foundation guide behind half this dictionary.
Read the guide 📚Incoterms Guide
Every three-letter term from EXW to DDP, in one overview.
Read the guide 🧮Sourcing Tools
Calculators for landed cost, tariffs, AQL sampling, and more.
Use the tools 📚Knowledge Center Hub
All fourteen categories of the trade library in one map.
Browse the libraryOpen to Transparent Buyer Feedback
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About this dictionary.
How to use it, and what it is — and isn't.
It gives importers plain-language definitions of the terms used across international trade — sourcing, Incoterms, freight, customs, payments, quality control, and manufacturing — in one searchable page, with links to deeper LIFA guides where they exist.
Use the search box at the top of the dictionary: it filters the full list live as you type, matching both term names and definition text. You can also browse alphabetically.
No — they are practical, plain-language explanations written for buying decisions. For contracts and compliance, always confirm the precise legal meaning in the relevant rules, such as the ICC Incoterms 2020 text or your destination market's customs law.
Yes. The dictionary grows with the Knowledge Center. If a term you need is missing, message Simon at simon@lifasourcing.com and it will be considered for the next update.
Met a term in a real quotation? Get it checked.
Send the quotation or contract clause with your product details. LIFA reviews the terms from China and tells you plainly what you'd be agreeing to — before you agree to it.
