The ultimate guide for every importation terms when dealing with the importation and exportation of goods

The ultimate guide for every importation terms when dealing with the importation and exportation of goods

With this Importation terms guide, you’ll gain a deeper understanding of the terminology and processes involved in international trade, empowering you to make informed decisions, negotiate effectively, and streamline your operations. Whether you’re shipping goods across continents or managing procurement processes, this glossary equips you with the knowledge needed to navigate the global marketplace with confidence.

MOQ – Minimum Order Quantity
The minimum quantity that the factory requires to be requested for a certain product.

PI – Proforma Invoice
A document of the order sent to the client during negotiation. It is an official quotation containing all negotiations with the client, including products, quantities, prices, payment terms, and, when applicable, discounts or additional costs. Production begins only after the client confirms/signs this Proforma Invoice.

MIXING
Mixing different products from the same factory in a single order.

DOWN PAYMENT
Payment of the order’s advance, both from the client and to the factory.

BALANCE
Final payment of the order, both from the client and to the factory. It is the payment of the remaining amount, already deducting the down payment, credit note (if any), and including additional costs (if any).

CONSOLIDATION
Various products from different factories in a single order.

LCL – Less Container Load
When an entire order is smaller than the size of a container, it is shipped in LCL mode, allowing the forwarder to place other clients’ shipments (unrelated to our order) in the same container. In this type of shipment, the freight cost is proportional to the space occupied within the container.

CMV – Cost of Goods Sold
It is the amount we pay to the supplier for the order.

FOB – Free On Board
It is the Incoterm we use in almost all our operations.

PAYMENT TERM – Payment Term
This is one of the more used Importation terms. Negotiation of how the payment for the order will be made. Each client and each supplier has a different type of negotiation, so it is necessary to always check what the negotiation is. Negotiations with clients are unrelated to negotiations with suppliers, except in exceptional cases.

BL – Bill of Lading
A document that proves the shipment of goods on the ship. It contains information about the exporter, buyer, importer, ship, shipping company, ports of embarkation and destination, as well as information about the cargo, such as gross weight, volume, quantity of boxes, brief description of what is being shipped, shipment date, etc. When the shipment is by air, the equivalent document is the AWB – Air Way Bill.

NCM – Mercosur Common Nomenclature
It is an organized system that allows, through the application of its own rules and procedures, to determine a single numerical code for a given product. Once known, this code represents the product itself. It is a regional nomenclature for categorizing goods adopted by Brazil, Argentina, Paraguay, and Uruguay, and is used in all foreign trade operations of Mercosur countries. The NCM is based on the Harmonized System (HS). The official languages of the NCM are Portuguese and Spanish.

HS – Harmonized System / Harmonized System
It is a condensed expression of the “Harmonized System for the Designation and Coding of Goods” maintained by the World Customs Organization (WCO), which was created to improve and facilitate international trade and its statistical control.

INCOTERMS – International Commercial Terms
These are standardized rules that regulate various aspects of international trade. Incoterms are important because they clarify the allocation of risks, costs, and obligations between the buyer and the seller in a contract for the sale of goods.

ORDER ARRANGEMENT
Status of the sales pipeline where negotiation occurs between the trader and the client regarding quantities and prices of orders.

CONFIRMED ORDER
Status of the order (ticket and sales pipeline) where the client confirmed the proforma invoice sent by the trader during the order arrangement status.

LOADING OPTIMIZATION
The loading of the container with optimization and maximum use of space.

SI – SHIPMENT INSTRUCTION
It is the shipping instruction sent to the factory that will be responsible for loading and shipping the order. This document contains information about the shipper, consignee, notify, forwarder, destination port, and documentation required for each client.

CONSIGNEE – Consignee
A natural or legal person indicated in the transportation document who has the right to claim the goods from the carrier at the destination. For legal purposes, it is presumed to be the owner of the cargo.

NOTIFY PARTY
It is the party notified about the shipment. In this field, the data of the company that should be notified about the movement of the cargo are informed. It is important to provide phone numbers and emails, as the carrier will use this data to send notifications.

SHIPPER
It is the exporter or sender. In other words, the one who sells the goods.

FORWARDER
A person located in the country of origin, China, who will be responsible for coordinating the shipment with the supplier. The data is sent by the client or by the freight forwarder, who is usually located in the destination country (client’s country). The forwarder’s data will always be from a person located in China, so if the client sends the data of a person located in their country, this person will be the freight forwarder, and it is necessary to request the contact information of the person located at the origin who will coordinate the shipment.

COURIER
An international company usually known as a fast delivery service, e.g., DHL, FedEx, UPS, TNT, etc.

CI – Commercial Invoice / Commercial Invoice
Final document sent to the customer after shipment, informing what was shipped, the price, payment term, date, among other information, and is used to collect the balance.

PL – Packing List
The last Importation terms, Sent along with the commercial invoice, it is the logistical document of the cargo. This document must contain all information about the quantity of products, boxes, net weight, gross weight, and volume. This information must be in accordance with what is stated in the BL.

Of course, you can’t learn all these terms overnight, but don’t worry! We have a specialized team to help you throughout the process, from choosing the best equipment to the cargo transportation procedures. Contact us on our website www.athleticvisionfitness.com and follow us on Instagram @athleticvisionfitness so you don’t miss anything