Supply Chain and Logistics Terminology Glossary

Navigating the supply chain and logistics world can feel like learning a new language. With terms like API, B/L, and ERP, it’s easy to get lost in translation. 

But understanding these logistics terms isn't just for industry insiders—it's essential for anyone involved in the movement of goods, from small businesses to large enterprises. 

So, let's break down these commonly used logistics terms to simplify your journey through global trade and supply chain management.

1. General Logistics Terms

Anti-Competitive Activity: 

Practices that restrict or limit competition in the logistics market, such as price-fixing agreements or exclusive contracts. Recognising these can help you avoid legal pitfalls and ensure fair play.

API - Application Program Interface: 

Think of this as a bridge between software systems, allowing them to communicate seamlessly. For logistics, APIs connect various platforms, making real-time tracking and updates possible.

B/L or BOL - Bill of Lading: 

A bill of lading is a crucial document in shipping. It acts as a receipt for cargo and details the terms of its transport. If you're shipping goods, a bill of Lading ensures you have proof of shipment and ownership.

CFR - Code of Federal Regulations: 

A set of rules govern different U.S. industries, including transportation and logistics. Knowing the relevant CFR parts can help you stay compliant with federal regulations.

Cradle to Grave: 

Product lifecycle refers to the entire lifecycle of a product, from production to disposal. In logistics, this term highlights end-to-end responsibility, ensuring products are tracked throughout their life.

DimWt - Dimensional Weight: 

A pricing method used by carriers based on the volume of a package rather than its actual weight. Understanding DimWt helps you optimise shipping costs, especially for bulky, lightweight items.

EDI - Electronic Data Interchange: 

A digital system that replaces paper documents, allowing businesses to exchange data like purchase orders and invoices electronically. It’s like email for supply chain data, speeding up transactions.

ERP - Enterprise Resource Planning: 

Software that integrates various business processes, including inventory, accounting, and shipping. For logistics, an ERP helps manage and streamline your supply chain operations.

FMCSA - Federal Motor Carrier Safety Administration: 

This U.S. agency regulates the trucking industry, setting safety standards for commercial vehicles. Understanding FMCSA rules is key for companies involved in road transport.

GRI - General Rate Increase: 

Carriers often make periodic adjustments in shipping rates due to changes in fuel costs or market demand. Being aware of GRI helps you plan your logistics budget effectively.

HAWB - House Air Waybill: 

A document issued by a freight forwarder for air shipments. It details the shipment and is a contract between the forwarder and the shipper.

HazMat—Hazardous Materials: 

Substances that pose risks during transport, such as chemicals or flammable liquids. Proper handling and documentation of HazMat are crucial for safety and compliance.

INCO - International Commercial Terms: 

A set of rules defining the responsibilities of sellers and buyers in international trade. Knowing the right Incoterms can prevent misunderstandings during import and export.

2. Transportation and Shipping Terms

FTL - Full Truckload: 

A shipment that takes up a truck's entire space or weight capacity. This method is ideal for large shipments requiring direct delivery without stopping.

LTL - Less Than Truckload: 

A shipping method in which a shipment does not fill an entire truck allows multiple shippers to share space. It’s a cost-effective solution for smaller shipments.

Intermodal Transportation: 

Multiple modes of transport (e.g., rail, truck, ship) efficiently move goods from origin to destination. This method is commonly used for long-distance shipping to minimise costs.

Drayage: 

Short-distance freight transport, often from a port to a nearby warehouse or between transportation modes. Moving containers between terminals and shipping yards is crucial in intermodal transport.

Backhaul: 

The return trip of a transport vehicle after delivering a shipment. Logistics providers often try to secure a load for the backhaul to reduce empty miles and save costs.

Deadhead: 

Refers to the journey of a truck or other vehicle travelling empty after delivering a load. Minimising deadhead trips is essential for reducing transportation costs.

Last-Mile Delivery: 

This is the final step in the delivery process, where goods are delivered to the end customer. This stage is crucial for e-commerce and customer satisfaction, as it involves direct contact with the customer.

TEU - Twenty-Foot Equivalent Unit: 

A unit of measure for cargo capacity, referring to a standard 20-foot shipping container. It is widely used to measure and compare the capacity of container ships and ports.

Cross-Docking: 

A practice where products are directly transferred from inbound to outbound transport without storage. It reduces storage costs and speeds up delivery times.

Cold Chain: 

A temperature-controlled supply chain for transporting perishable goods such as food, pharmaceuticals, and chemicals, ensuring they remain within a specific temperature range throughout transit.

Freight Forwarder: 

An intermediary that organises shipments for individuals or companies, managing transportation logistics and documentation to ensure smooth delivery.

Freight Corridor: 

Dedicated railway routes in India, like the Western and Eastern Dedicated Freight Corridors (DFC), aim to improve freight movement efficiency.

Air Waybill (AWB): 

A document issued by an air carrier that serves as a contract between the shipper and the airline, outlining the terms and conditions of the air transport.

Incoterms: 

Internationally recognised trade terms define the responsibilities of sellers and buyers in delivering goods. Common Incoterms include FOB (Free on Board), EXW (Ex Works), and CIF (Cost, Insurance, and Freight).

Freight Bill: 

In an invoice, the carrier provides details of the charges for transportation services, including the total weight, shipment description, and applicable fees.

Waybill: 

A document accompanying a shipment of goods contains details such as the sender, recipient, and route. It acts as a receipt and tracking mechanism during transportation.

Customs Brokerage: 

A service customs brokers provide to clear goods through customs for importers and exporters. It involves managing documentation, tariffs, and regulations to ensure smooth cross-border transit.

Containerisation: 

Standardised shipping containers are used to efficiently handle and transport cargo. It simplifies the process of moving goods across different modes of transport, such as ships, trains, and trucks.

Lead Time: 

The time it takes for a product to be delivered from the moment an order is placed. Managing lead times is critical in logistics to ensure timely delivery and customer satisfaction.

Demurrage: 

A fee is charged when cargo remains at a port or terminal beyond the allotted free time. It encourages timely pickup of shipments to avoid delays and additional costs.

Load Factor: 

The ratio of cargo carried to the total capacity of a transport vehicle. It measures the transportation process's efficiency, helping optimise shipping operations.

Hub and Spoke Model: 

A distribution model in which a central hub sorts and directs shipments to their final destinations. It’s commonly used in air cargo and logistics networks for efficient routing.

Drop Shipping: 

A retail fulfilment method where a store does not keep the products it sells in stock. Instead, the store purchases the item from a third-party supplier and has it shipped directly to the customer.

Roll-on/Roll-off (Ro-Ro): 

A type of ship designed to carry wheeled cargo like cars, trucks, and trailers. It allows vehicles to roll on and off the vessel, simplifying the loading and unloading.

VMI - Vendor Managed Inventory: 

A supply chain strategy in which the supplier manages the inventory levels of their products within the buyer's facilities helps to optimise inventory levels and reduce stockouts.

Consolidation: 

Combining multiple smaller shipments into a larger load reduces transportation costs. This method is commonly used for LTL shipments and helps optimise shipping efficiency.

3. 3PL & Warehousing Terms

3PL - Third-Party Logistics: 

A service provider that manages logistics functions like warehousing, transportation, and distribution on behalf of businesses, allowing them to focus on core activities.

ABC - Activity-Based Costing: 

A method that assigns costs to products or services based on their consumed resources. It helps businesses understand the actual cost of activities in their warehousing and logistics operations.

CFS - Container Freight Station: 

A facility where cargo is consolidated into or de-consolidated from shipping containers for export or import. It plays a key role in managing LCL (Less-than-Container Load) shipments.

DP - Demand Planning: 

Forecasting customer demand to optimise inventory levels, production, and supply chain operations. It ensures that businesses maintain the right stock to meet customer needs.

EAM - Enterprise Asset Management: 

A system that helps businesses manage the lifecycle of physical assets, including their maintenance, repair, and replacement. It is crucial for maintaining efficiency in warehouses and distribution centres.

FIRMS Code - Facilities Information and Resources Management System Code: 

A unique identifier assigned by U.S. Customs and Border Protection to facilities like warehouses and terminals that manage imported and exported goods.

FTZ - Free Trade Zone / Foreign Trade Zone: 

A designated area within a country where imported goods can be stored, handled, and processed without being subject to customs duties until they enter the domestic market. It helps businesses reduce costs in global trade.

OS&D - Over, Short, and Damaged: 

A term describes discrepancies in shipment quantities or conditions during the receiving process. Warehouses and logistics providers use OS&D reports to track and resolve issues with inbound shipments.

RFID - Radio Frequency Identification: 

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects. It is commonly used in warehousing to monitor inventory movement and ensure accurate stock levels.

RL - Reverse Logistics: 

Managing product returns from customers to the seller or manufacturer includes handling returns, recycling, and refurbishing. It is critical for e-commerce and sustainability efforts.

UPC - Uniform Product Code: 

A barcode is used to identify products in retail and distribution environments. UPCs enable efficient scanning, tracking, and inventory management in warehouses.

WMS - Warehouse Management System: 

A software application that helps manage and control warehouse operations, such as inventory tracking, order fulfilment, and space management. WMS ensures efficiency and accuracy in storage and picking processes.

4PL - Fourth-Party Logistics: 

A logistics provider that manages and coordinates all aspects of the supply chain for a client, including oversight of 3PLs and integration of IT services, to provide end-to-end solutions.

Cross-Docking: 

A process in which products are received at a warehouse or distribution centre and directly transferred to outbound transportation, reducing storage time and speeding up delivery.

Kitting: 

Assembling individual but related items as a single unit is commonly used in e-commerce and manufacturing to streamline packaging and shipping.

Last-Mile Delivery: 

The final stage of delivering a product to the end customer. It is often the most expensive and challenging part of the logistics process, especially in e-commerce.

Pick and Pack: 

A warehousing process where items are picked from shelves according to customer orders and packed for shipment. It is a crucial part of order fulfilment for e-commerce businesses.

FIFO - First In, First Out: 

A method of inventory management where the oldest stock is used or sold first. It is essential for managing perishable goods and ensuring inventory freshness.

LIFO - Last In, First Out: 

A method of inventory management where the most recently added stock is used or sold first. It is often used in industries where product obsolescence is not a concern.

SKU - Stock Keeping Unit: 

A unique identifier is assigned to each product in a warehouse or inventory system, allowing for precise tracking of stock levels, orders, and replenishment needs.

Cycle Counting: 

An inventory auditing procedure in which a small subset of inventory is counted on a specific day helps maintain inventory accuracy without shutting down operations for a full physical count.

Bonded Warehouse: 

A secure warehouse where imported goods are stored without the need to pay duties until they are ready for sale or distribution. It helps businesses defer taxes until goods enter the market.

Yard Management System (YMS): A system used to manage the movement of trucks and trailers in a distribution centre’s yard, optimising docking, loading, and unloading processes.

PLT (Pallet): 

A flat platform used for stacking, storing, and transporting goods in a warehouse.

Inventory Turnover: 

A ratio shows how often inventory is sold or used in a given period.

JIT (Just-In-Time): 

A strategy where inventory is replenished only when needed, reducing storage costs and improving efficiency.

Zoning: 

Designating specific areas in a warehouse for particular types of products or activities.

4. Trade Terms in Logistics

ATA Carnet: 

An international customs document allows the temporary importation of goods for up to one year without customs duties.

BIS (Bureau of Indian Standards): 

India's national standards body that ensures quality and compliance for goods and trade.

BOP (Balance of Payments): 

A statement summarising a country’s transactions with the rest of the world, including trade, investments, and transfers.

ChA (Customs House Agent): 

A professional responsible for customs clearance of imported or exported goods at Indian ports.

DGFT (Directorate General of Foreign Trade): 

The Indian agency is responsible for formulating and implementing the foreign trade policy.

D/O (Delivery Order): 

A document issued by a carrier to release cargo to the named consignee.

HS Code (Harmonized System Code): 

A standardised code used internationally to classify traded products.

IEC (Import Export Code): 

A mandatory registration number for Indian businesses engaged in import and export.

INR (Indian Rupee): 

India's official currency is often used in trade agreements and settlements involving Indian businesses.

MEIS (Merchandise Exports from India Scheme): 

The RoDTEP scheme now replaces a scheme to incentivise exporters through duty credits.

NFE (Net Foreign Exchange): 

Determining a company’s foreign exchange earnings is important for specific export incentive programs in India.

RoDTEP (Remission of Duties and Taxes on Exported Products): 

An Indian government scheme that refunds embedded taxes and duties to exporters.

SOFTEX Form: 

A document certifying software service export value is crucial for Indian IT exports.

SWIFT (Society for Worldwide Interbank Financial Telecommunication): 

A secure messaging system used for international payments and trade transactions.

TDS (Tax Deducted at Source): 

A tax deducted by the payer on certain transactions, applicable in India for payments to suppliers and contractors.

WPI (Wholesale Price Index): 

An index that measures the price changes in the wholesale market, often impacting export pricing.

YTD (Year to Date): 

A financial term often used in trade reports to measure performance from the beginning of the year to the current date.

5. Insurance Terms in Logistics

Actual Total Loss: 

A situation where the cargo is destroyed or so damaged that it’s no longer the same product.

Average Adjuster: 

A professional who calculates the liabilities and distributions of losses when a general average claim is made.

Bill of Lading (BOL) Insurance: 

Coverage is provided against risks stated in a Bill of Lading, protecting the shipper’s interests during transit.

Carrier’s Liability Insurance: 

Insurance covers the legal liability of carriers for damage or loss of goods while in their custody.

Claim Adjuster: 

A professional who assesses the extent of loss or damage to insured goods and determines the compensation amount.

Constructive Total Loss: 

The owner can claim the full insurance amount when the cost of recovering or repairing the damaged goods exceeds their insured value.

Duty Insurance: 

It covers the import duty paid on goods if damaged or lost after arriving in the destination country.

Exclusions: 

Specific conditions or circumstances for which the insurance policy does not provide coverage (e.g., war, strikes, nuclear risks).

Freight Insurance: 

Insurance coverage for the loss of freight income due to the loss of or damage to cargo.

General Average: 

A maritime principle where all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole.

Hague-Visby Rules: 

An international convention that sets the rights and liabilities of carriers under a Bill of Lading, often referenced in marine insurance claims.

Institute Cargo Clauses (A, B, C): 

Standard sets of insurance clauses that define the extent of coverage:

• Clause A: Covers all risks, except specific exclusions.
• Clause B: Provides coverage for named perils like fire, sinking, collision, etc.
• Clause C: Covers basic risks like fire or explosion.

Inherent Vice: 

A characteristic of the goods that makes them prone to damage, like fruit rotting, is generally not covered by insurance.

Inland Transit Insurance: 

Covers goods while they are being transported over land within a country.

Jettison: 

Throwing goods overboard to lighten the ship in an emergency is covered under General Average claims.

Lloyd's of London: 

A marketplace where underwriters and brokers come together to insure complex and high-risk cargo and marine ventures.

Loss Payee: 

The party to whom an insurance payment is made in case of loss or damage.

Particular Average: 

A partial loss sustained by the cargo owner or shipper, not shared among the other parties in the maritime venture.

Perils of the Sea: 

Marine insurance often covers natural maritime dangers like storms, waves, and collisions.

Port Risk Insurance: 

This insurance protects vessels while they are docked at the port against potential damage.

Salvage Charges: 

Expenses incurred when a third party helps to recover cargo or a vessel in distress are often recoverable under marine insurance.

Shortfall Insurance: 

Coverage is for the difference between the insured and the actual value of lost or damaged goods.

Sue and Labor Clause: 

Requires the insured party to take reasonable actions to minimise or prevent further loss or damage to the cargo.

Third-Party Liability Insurance: 

Covers the insured for claims made by third parties for damages or losses caused by their vessel or cargo.

Total Loss Only (TLO) Insurance: 

Provides coverage only if the insured cargo is completely lost or destroyed.

Underinsurance: 

When the insurance coverage's value is less than the actual value of the cargo, partial claims are possible in the event of loss.

Valuation Clause: 

Specifies the agreed value of the goods insured, which determines the payout in the event of a claim.

War Risk Insurance: 

It covers losses or damage caused by war-related events, often excluded in standard marine insurance policies.

Warehouse-to-Warehouse Coverage: 

This coverage protects cargo from leaving the origin warehouse until it reaches the destination warehouse, covering the entire transit period.

6. Quality Control and Inspection Terms in Logistics

Quality control (QC) involves checking the quality of goods at various stages of production, packaging, and transportation to ensure they meet specific standards before being delivered to the customer. It’s vital for maintaining brand reputation and customer satisfaction.

AQL - Acceptable Quality Limit:

The maximum number of defective items considered acceptable during random sampling inspections. Often used in pre-shipment inspections.

COC - Certificate of Conformity:

A document certifying that the product meets the specified standards and regulations of the importing country.

COA - Certificate of Analysis:

Provides detailed results of testing a product’s batch, often used for chemicals, pharmaceuticals, and food products.

Third-Party Inspection (TPI):

An external agency performs an independent inspection to verify the quality and compliance of products before shipment.

Pre-Shipment Inspection (PSI):

Inspection conducted before shipping to verify that goods meet buyer specifications and regulatory requirements.

QC Checklist:

Inspectors use a detailed list of specifications and requirements that products must meet to ensure compliance.

Factory Audit:

A comprehensive assessment of a manufacturing facility to ensure it meets industry standards for quality, social compliance, and environmental regulations.

ISO Standards:

Businesses follow international quality standards (such as ISO 9001) to ensure consistency and quality in products and services.

Random Sampling Inspection:

Selecting a random sample of products from a batch to inspect makes it quicker and more cost-effective than inspecting every item.

In-Line Inspection:

Quality checks are conducted during various stages of production to catch defects early.

Loading Supervision:

Inspectors monitor the loading process of goods into containers, ensuring proper handling and minimising the risk of damage during transit.

On-Site Inspection:

Quality assessment is conducted directly at the manufacturing or warehousing site, ensuring compliance with quality standards before shipping.

Non-Destructive Testing (NDT):

Testing methods that do not damage the product, such as ultrasonic testing or X-ray inspection, are often used for high-value items.

Root Cause Analysis (RCA):

Identifying the primary cause of defects or quality issues to implement corrective actions and prevent recurrence.

Corrective and Preventive Actions (CAPA):

Improving existing quality issues and preventing future occurrences is critical to quality management.

Quality Management System (QMS):

A formalised system that documents processes, procedures, and responsibilities for achieving quality policies and objectives.

Defect Classification:

Categorising defects as critical, major, or minor helps determine the severity of quality issues and the actions required.

GMP - Good Manufacturing Practice:

Regulations and guidelines that ensure products are produced consistently and meet quality standards, especially in the pharmaceuticals and food industries.

RoHS - Restriction of Hazardous Substances:

A standard ensuring that electronic products are free from certain hazardous materials.

Traceability:

Tracking a product's entire lifecycle, from raw materials to the end consumer, is crucial for compliance and recalls.

Batch Number/ Lot Number:

A unique identifier is assigned to a particular batch of products, making it easier to track quality issues back to their source.

Inspection Report:

Buyers or regulatory authorities often require a detailed document summarising the findings of an inspection before shipment.

7. Payment Terms in Logistics

COD - Cash on Delivery:

Payment is made at the time of delivery, typically to the shipping company or logistics provider upon handing over the goods to the recipient.

Prepaid:

The shipper pays for the transportation charges before the goods are shipped. This term is commonly used when the seller wants to cover the shipping costs.

Collect:

The receiver or consignee is responsible for paying the transportation charges upon shipment delivery.

Advance Payment:

The buyer often makes partial or full payments before the shipment, reducing non-payment risk.

Letter of Credit (LC):

A bank guarantees the buyer’s payment to the seller upon fulfilling certain delivery conditions. It is commonly used in international trade to secure transactions.

D/P - Documents Against Payment:

The exporter’s bank releases the shipping documents to the importer only when the importer makes the payment. It ensures the seller gets paid before the buyer takes possession of the goods.

D/A - Documents Against Acceptance:

The exporter allows the buyer to take possession of the shipping documents and goods upon acceptance of a bill of exchange or draft. As specified in the draft, payment is made at a later date.

Net Payment Terms (Net 30, Net 60):

Specifies the number of days the buyer has to pay after the invoice date, such as Net 30 (30 days) or Net 60 (60 days). This allows for flexibility in payments while maintaining cash flow.

Payment in Advance (PIA):

The buyer makes the payment before the shipment leaves the seller’s premises. It is a low-risk option for exporters but can be less favourable for buyers.

SWIFT Payment:

Payments are made through the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network, commonly used for international wire transfers between banks.

TT - Telegraphic Transfer:

Also known as a wire transfer, this electronic payment method is commonly used for international transactions.

Open Account:

The seller ships the goods and sends the invoice to the buyer, with an agreement that payment will be made after a specified time. This arrangement is typically used between trusted trading partners.

Bank Guarantee:

A bank guarantees a buyer will meet their payment obligations to a seller. It is a common form of security in large transactions or for new trading relationships.

FOB - Free on Board:

The seller’s responsibility ends when the goods are loaded onto the vessel, and the buyer is responsible for all costs, including shipping, insurance, and duties.

CIF - Cost, Insurance, and Freight:

The seller covers the goods' costs to the destination port, including insurance. The buyer is responsible for unloading and any costs beyond the destination port.

Ex-Works (EXW):

The seller makes the goods available at their premises, and the buyer bears all transportation, insurance, and customs costs.

Cash Against Documents (CAD):

The buyer can collect the documents (and thus the goods) only after payment is made. This method is secure for the seller but less flexible for buyers.

Escrow:

A third party holds the payment until the delivery conditions are met, providing security to both the buyer and the seller in the transaction.

E-Wallets and Digital Payments:

Digital payments are becoming increasingly popular in logistics. They allow faster and more secure transactions between exporters, importers, and logistics providers.

Blockchain Payments:

Blockchain technology can be used for secure, transparent, and quick payments, especially in cross-border transactions. It reduces the time and risk associated with traditional banking systems.

Detention Fees:

Charges for keeping a container beyond the allotted time outside the port, often due to delays in the supply chain.

All-In Rate:

A shipping rate that includes all surcharges, making it easier for buyers to understand their total costs.

8. Customs Clearance Terms in Logistics

Bill of Entry (BOE):

A legal document filed by importers or customs agents to clear goods through customs details the nature of the goods being imported and is essential for duty assessment.

Customs Duty:

A tax imposed by a country on the import or export of goods. It is usually a percentage of the total value of the goods, as determined by the customs authority.

Bonded Warehouse:

A storage facility where imported goods are kept without the payment of duties until they are moved for domestic consumption or export.

Customs Broker:

A licensed professional who assists importers and exporters in clearing goods through customs, handling documentation, and ensuring compliance with regulations.

Import General Manifest (IGM):

A document containing details of the imported goods filed by the shipping line or airline with customs is a critical part of the import process.

Export General Manifest (EGM):

A document that provides details of goods being exported. It is submitted to customs by the shipping line or airline before the shipment leaves the port.

Duty Drawback:

A refund of customs duties paid on imported goods when they are later exported. It is used to encourage exports by reducing the overall duty burden.

Ad Valorem Duty:

A type of customs duty is calculated as a percentage of the value of the imported goods. The HS Code usually determines the value.

Tariff:

A list or schedule of duties or taxes levied on imports or exports. Tariffs are often based on the HS Code of the products.

Clearance Certificate:

A document issued by the customs authority certifying that all duties have been paid and the goods are cleared for import or export.

Customs Valuation:

The process of determining the value of imported goods for assessing duties. It is typically based on the transaction value but may include other factors like insurance and freight.

Free Trade Agreement (FTA):

Agreements between countries that reduce or eliminate tariffs make it easier and cheaper to trade between member nations. These agreements are common in India’s trade relations.

Import License:

A document issued by a government authority allowing the importation of certain goods. Some products may be restricted or prohibited without this license.

Tariff Rate Quota (TRQ):

A system that allows a set quantity of specific goods to be imported at a reduced tariff rate. After the quota is reached, higher tariffs apply.

Importer Security Filing (ISF or 10+2):

U.S. Customs requires importers to provide advance shipment information before loading shipments on vessels, which helps manage security risks.

Certificate of Origin (C/O):

Customs authorities often require a document certifying the country where the goods were manufactured to determine duties or verify compliance with FTAs.

De Minimis:

A threshold below which goods are exempt from customs duties. It allows low-value goods to pass through customs with minimal formalities.

Incoterms (International Commercial Terms):

Rules published by the International Chamber of Commerce (ICC) define the responsibilities of buyers and sellers in international trade, including who is responsible for customs duties.

SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies):

A category of dual-use items that require special clearance from Indian customs for export, often related to sensitive or strategic goods.

Authorised Economic Operator (AEO):

A program that allows certified companies to benefit from faster customs clearance and reduced inspections provided they meet certain compliance standards.

HSN Code (Harmonized System of Nomenclature):

A code used to classify goods for customs purposes in India is similar to the HS Code but specifically tailored for the Indian context.

CBIC - Central Board of Indirect Taxes and Customs:

The governing body in India is responsible for implementing and overseeing customs, GST, and other indirect tax policies.

Commercial Invoice (C/I):

A document issued by the seller detailing the quantity, price, and nature of the goods is essential for customs clearance as it helps assess the customs value.

Packing List:

The exporter provides A detailed list outlining the contents, dimensions, and weight of each package in the shipment. It assists customs officers in verifying the goods.

Shipping Bill:

A key document for exporting goods is filed with Indian customs. It contains information about the goods, exporter, and destination.

Unique Logistics Term: Pazago – All-in-One Solution for Global Trade

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Key Features of Pazago

Digital Trade Management:

• Manage your entire export-import journey from procurement to fulfilment digitally.
• Real-time shipment tracking across 110+ countries helps businesses cut TAT by 50%.
• Centralised communication and streamlined workflows through Pazago’s easy-to-use Inbox.

Faster Purchase Orders:

• Eliminate paperwork and manage purchase orders efficiently, saving valuable time.
• Centralise all trade-related information, ensuring smooth coordination with suppliers.

Payment Solutions:

• Get priority payment clearance with competitive forex rates through JPMC.
• Receive international payments within 3 hours, removing limits like the $10,000 cap.
• Collect payments directly into your current account, maintaining a smooth cash flow.

Seamless Document Management:

• Create, manage, and collaborate on key trade documents, including certificates of origin and proforma invoices.
• Keep documents secure with structured folders for quick access and easy retrieval.

Real-Time Cargo Tracking:

• Track shipments from 180+ shipping companies without needing multiple platforms.
• Monitor the movement of goods and receive real-time alerts for delays, ensuring timely deliveries.

Optimised Logistics:

• Manage Ocean Shipping (FCL, door-to-door) and in-land transportation through trusted carriers.
• Save up to 20% on logistics costs with optimised cross-border solutions, perfect for scaling businesses.
• Get comprehensive digital insurance solutions, reducing paperwork and simplifying claims.
• Simplify the customs process with digital management tools for Advance Authorization and EPCG schemes.

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