Technical Glossary

VICASSO

Understanding logistics also means understanding its language.

TERM BY TERM

International trade, transport and customs management use specific terminology that is part of the day-to-day reality of any logistics operation.

This glossary provides a clear and straightforward guide to the key concepts related to transport, customs, international trade and global logistics.

The language of logistics, from A to Z.

Incoterms, customs documentation, modes of transport, organisations, procedures, acronyms and commonly used terms in international trade.

Explore our technical glossary and quickly find the meaning of the concepts you need.

A.TR
Certificate used for certain trade transactions between the European Union and Türkiye. It replaces the certificate of origin, except for agricultural and steel products.
AIEM
Canary Islands tax levied on the production and import of certain goods, regardless of their origin. It also provides for reductions and exemptions for certain products manufactured in the Canary Islands.
Air Waybill — AWB
Document used in air freight that serves as evidence of the contract of carriage. It is issued by the airline or freight agent and confirms that the goods have been accepted for shipment, including details such as origin, destination, shipper, consignee and transport conditions.
Anti-dumping
Trade defence measures applied when a foreign supplier sells products at prices below those charged in its domestic market, a practice known as dumping. These measures may be provisional or definitive.
ATA — Actual Time of Arrival
The actual date and time of arrival.
ATD — Actual Time of Departure
The actual date and time of departure.
Authorised Economic Operator — AEO
Economic operator recognised by the European Union as reliable and secure in customs matters.

BAF — Bunker Adjustment Factor
Surcharge applied by shipping lines to offset fluctuations in fuel prices.
Bill of Lading — B/L
Maritime transport document evidencing receipt of the goods on board. It is issued by the ocean carrier or the ship’s master.
Booking
Reservation of cargo space with a shipping line, airline or carrier for the transport of goods.
Border Inspection Post
Authorised facility within a customs area where health and veterinary controls are carried out on goods arriving from third countries.
Break bulk
Cargo that cannot be transported in standard containers because of its size, weight or characteristics.
Bulk cargo
Solid or liquid goods transported without individual packaging, using the means of transport itself as the container.
Bulk goods
Goods transported in large quantities without individual packaging.

CAF — Currency Adjustment Factor
Surcharge applied to offset fluctuations in foreign exchange rates.
Capital goods
Goods used in production processes to manufacture other products or provide services.
Cargo
Goods transported from one place to another.
Cargo insurance
Insurance covering possible damage to or loss of goods during transport.
Carrier
The actual transport provider carrying the goods, such as a shipping line, airline or road transport company.
CEIV Pharma
International quality certification for the handling and air transport of pharmaceutical products.
Certificate of origin
Document certifying the country or place where goods were produced or manufactured.
CETA — Comprehensive Economic and Trade Agreement
Trade agreement between the European Union and Canada.
CFR — Cost and Freight
Maritime Incoterm under which the seller pays the transport costs to the port of destination, while risk transfers at origin.
CIF — Cost, Insurance and Freight
Maritime Incoterm under which the seller pays for transport and insurance to the port of destination.
CIM rail consignment note
Document used for the international carriage of goods by rail.
CIP — Carriage and Insurance Paid To
Similar to CPT, but the seller also arranges transport insurance.
CITES control
Control applied to the international trade in protected or endangered species of fauna and flora.
CMR consignment note
Document used for the international carriage of goods by road.
COC — Carrier Owned Container
Container owned by the carrier or shipping line.
Cold chain
Logistics system that keeps goods at a controlled temperature throughout transport and storage, particularly for pharmaceutical, perishable or frozen products.
Commercial invoice
Document issued by the seller that records the international sale and serves as the basis for customs clearance.
Commercial risk
Risk of non-payment associated with the buyer’s solvency or liquidity in a commercial transaction.
Common Customs Territory — CCT
Territory of the European Union in which common customs rules apply, with certain exceptions such as Ceuta and Melilla.
Consignee
The recipient of the goods named in the transport documents.
Consolidation
Grouping goods from different customers into the same cargo unit, usually a container.
Container
Standardised cargo unit used to transport goods by sea, road, rail or air.
Country risk
Risk related to the economic, political or financial situation of the buyer’s country.
CPT — Carriage Paid To
Incoterm under which the seller pays the transport costs to the agreed destination, although risk transfers earlier.
Cross-docking
Logistics system in which incoming goods are quickly redistributed without being stored for long periods.
Customs
Public authority responsible for controlling the entry, exit, movement and stay of goods within a customs territory. Customs offices are usually located at strategic points such as borders, ports and airports.
Customs broker
Authorised individual who carries out customs clearance procedures for import and export operations.
Customs clearance
Set of procedures required to control, supervise and authorise the entry or exit of goods from a customs territory.
Customs declaration
Act by which a person requests that goods be placed under a specific customs procedure, in the form prescribed by the applicable regulations.
Customs procedures
Set of rules and procedures governing how imported, exported or transit goods must be treated.
Customs release
Customs authorisation allowing goods to be removed from a customs facility once the required formalities, controls and payments have been completed.
Customs representative
Authorised professional who carries out customs formalities in their own name or on behalf of third parties.
Customs transit
Procedure allowing goods to move under customs control between two points without payment of duties until they reach their final destination.
Customs value
Value used to calculate import duties and taxes. It generally corresponds to the price actually paid or payable for the goods.
Customs warehouse
Authorised facility under customs supervision where goods may be stored for an indefinite period until their final destination or customs treatment is decided.
Cut-off
Deadline for delivering goods, documentation or instructions before the departure of the transport service.

Dangerous goods
Substances or articles that may pose a risk to health, safety, the environment or property.
DAP — Delivered at Place
Incoterm under which the seller delivers the goods at the agreed destination without clearing them for import.
DDP — Delivered Duty Paid
Incoterm under which the seller assumes almost all costs and responsibilities, including import clearance and payment of duties.
Declarant
Person in whose name a customs declaration, summary declaration or notification relating to the entry, exit or re-export of goods is lodged.
Deconsolidation
Process of separating goods that were grouped together at origin so they can be delivered to their respective consignees at destination.
Deferred import VAT
System allowing eligible importers to account for import VAT in their monthly VAT return instead of paying it directly at customs.
Demurrage
Charge incurred when a container remains at the terminal beyond the permitted free time.
Demurrage charges
Amounts charged by the shipping line when its containers are used for longer than the allowed free period.
Detention
Charge incurred when a container remains outside the terminal beyond the free period granted by the shipping line.
Documentary credit
International payment method that provides a high level of security for the seller by guaranteeing payment provided the agreed documentary conditions are met.
Door-to-door service
Logistics service in which goods are collected at origin and delivered directly to the agreed destination.
DPU — Delivered at Place Unloaded
Incoterm under which the seller delivers the goods unloaded at the agreed place.
Dry port
Inland intermodal terminal connected to seaports by rail or road.
Dry Van
Standard container used for general dry cargo.
Dumping
Unfair trade practice consisting of selling a product abroad below its normal value or production cost in order to gain market share.
DV1
Document used to support the customs value of goods. It is submitted together with the import declaration when the value exceeds EUR 10,000.

E -F

EORI
Unique customs identification number assigned to economic operators in the European Union for dealings with customs authorities.
ETA — Estimated Time of Arrival
Estimated date and time of arrival of a vessel, aircraft or vehicle.
ETD — Estimated Time of Departure
Estimated date and time of departure of a vessel, aircraft or vehicle.
EUR.1
Certificate proving the preferential origin of goods and allowing preferential tariff treatment in countries that have trade agreements with the European Union.
Exchange rate risk
Risk arising from fluctuations in currency exchange rates in international transactions.
Excise duties
Indirect taxes levied on the consumption of certain products, such as alcohol, tobacco, hydrocarbons or electricity.
Export Accompanying Document — EAD
Document required for indirect exports where the customs office of export is different from the customs office of exit.
Export licence
Administrative authorisation required to export certain restricted or controlled products.
Exporter
Individual or legal entity that sells or ships goods from one country to another for consumption or use at destination.
Extra-EU triangular transactions
Triangular transactions in which one or more of the participating countries are outside the European Union.
EXW — Ex Works
Incoterm under which the seller makes the goods available to the buyer at the seller’s premises.

Fast fashion
Fashion production model based on manufacturing large quantities of clothing and accessories quickly and at low cost.
FCA — Free Carrier
Incoterm under which the seller delivers the goods to the carrier nominated by the buyer.
Feeder vessel
Smaller vessel connecting secondary ports with major hub ports.
Flat Rack
Container without side walls or a roof, used for heavy or oversized cargo.
Flexitank
Flexible tank fitted inside a container for the transport of bulk liquids.
FOB — Free On Board
Maritime Incoterm under which the seller delivers the goods loaded on board the vessel.
FORM A
Certificate allowing products originating in beneficiary countries under the Generalised Scheme of Preferences to be imported under preferential conditions, provided the applicable requirements are met.
Free time
Period during which no demurrage, occupancy, detention or storage charges are applied.
Free trade area
Area formed by one or more countries in which trade barriers such as tariffs are eliminated or reduced.
Free zones
Designated areas within the customs territory where goods may be introduced under a special tax and customs regime.
Freight
Price paid for the transport of goods, particularly by sea. The term may also refer to the cargo being carried.
Freight forwarder
Company or professional that organises the international transport of goods on behalf of exporters, importers, shippers and consignees.
Freight terminals
Controlled facilities used for the storage, loading and unloading of goods transported by air, sea, road or rail.
Full Container Load — FCL
Shipping mode in which a full container is used exclusively by a single shipper, without sharing space with cargo belonging to other customers.

G-H

Generalised Scheme of Preferences — GSP
System under which the European Union grants tariff preferences to certain developing countries.
Green channel
Customs inspection channel in which goods are cleared without documentary or physical inspection.
GRI — General Rate Increase
General increase in freight rates applied by shipping lines.
Groupage
Transport mode in which goods from different shippers share the same container or vehicle.

Harmonized System of Commodity Description and Coding
International six-digit nomenclature used to classify goods for customs, statistical and international trade purposes.
Health certificate
Document certifying that certain products meet the health requirements applicable to their import or export.
High Cube
Container with greater height than a standard container, used for bulky cargo.
House Air Waybill — HAWB
Air waybill issued by a freight forwarder to its customer.
House Bill of Lading — HBL
Bill of lading issued by a freight forwarder to its customer.
Hub
Logistics centre where goods are consolidated, distributed or redistributed to different destinations.
Hub port
Main port where large cargo volumes are concentrated for onward distribution.
Humanitarian logistics
Planning and distribution of goods, materials and information intended to respond to emergencies or humanitarian disasters.

I-J

IGIC
Canary Islands General Indirect Tax. An indirect tax on consumption in the Canary Islands that replaces VAT and generally applies lower tax rates.
IMO 2020
International Maritime Organization regulation limiting sulphur emissions from ships.
Import clearance / release for free circulation
Customs procedure allowing goods to enter the market after payment of import duties and application of the relevant trade measures.
Import licence
Administrative authorisation required to import certain goods subject to control.
Importer
Individual or legal entity that brings goods from a third country into a given market.
Importers Register
Official Mexican register in which individuals or legal entities wishing to import goods must be enrolled.
Incoterms
International rules established by the International Chamber of Commerce defining the responsibilities of buyer and seller in an international sale.
Industrial goods
Goods produced through industrial processes, intended either for the manufacture of other products or for final sale.
Industry 4.0
Digitalisation and technological integration of industry, including automation, robotics, data analysis and interconnected systems.
Intermodal transport
Transport combining several modes, such as road, rail, sea or air, using intermodal loading units.
Intra-Community transactions
Commercial transactions carried out between EU Member States.
Intra-EU triangular transactions
Triangular transactions carried out between companies located in EU Member States.
INTRASTAT
Statistical system that collects information on movements of goods between EU Member States.
ISO tank
Specialised container for the safe transport of liquids, gases or bulk products.
ISPS
Surcharge related to port and maritime security measures.

Just in time
Management system based on producing or receiving goods only when they are needed, keeping inventories to a minimum.

L-M-N

LCL — Less than Container Load
Cargo that does not fill an entire container and is shipped together with goods from other shippers.
Loading dock
Area or platform intended for loading and unloading goods.
Local charges
Costs incurred at origin or destination, such as handling, documentation, THC, customs clearance, delivery or collection.
Logistics 4.0
Application of digital technologies, automation, connectivity and data analysis to the supply chain.
Logistics Activities Zone — ZAL
Logistics platform where services, operators and facilities linked to transport and customs activities are concentrated.
Logistics operator
Company providing services related to transport, warehousing, order preparation, customs formalities, distribution and other logistics processes.

Master Air Waybill — MAWB
Air waybill issued by the airline or cargo agent to the freight forwarder.
Master Bill of Lading — MBL
Bill of lading issued by the shipping line to the freight forwarder or NVOCC.
Mega-ships
Large container vessels capable of carrying very high cargo volumes, such as 18,000 TEU or more.
Mega-trucks
High-capacity road freight vehicles that can reach 25.25 metres in length and carry up to 60 tonnes.
Mercosur
South American economic bloc comprising countries such as Argentina, Brazil, Paraguay and Uruguay, among others.
Mixed triangular transactions
Triangular transactions in which some participants are located within the European Union and others are not.
MRN — Movement Reference Number
Reference number assigned to a customs declaration or transit document.
Multimodal transport
International transport of goods using several modes of transport under a coordinated logistics arrangement.

NAFTA
North American Free Trade Agreement between Canada, the United States and Mexico.
Nearshoring
Production model that relocates manufacturing to countries closer to the consumer market in order to reduce costs, lead times and dependence on distant regions.
Notify party
Person or company that must be notified when the goods arrive.
NVOCC
Operator that acts as an ocean carrier towards the customer without owning vessels.

Omnichannel
Integration of all sales and communication channels to provide a consistent customer experience.
Open Top
Container without a rigid roof, used for cargo that needs to be loaded from above.
Orange channel
Customs inspection channel requiring a documentary check.
Origin of goods
Country or territory with which goods have their economic link, usually because they were produced, manufactured or substantially transformed there.

Packing list
Document detailing the contents of a shipment, including information useful to the buyer and customs authorities.
Pallet
Platform used to group, handle and transport goods.
Palletisation
Process of placing goods on pallets to facilitate handling and transport.
Pedimento
Electronic document used in Mexico to declare the entry or exit of goods from the national territory and comply with customs obligations.
Perishable goods
Products that deteriorate quickly unless kept under suitable conditions of temperature, humidity or pressure.
Pharmaceutical logistics
Specialised management of the storage, transport and delivery of pharmaceutical products such as medicines, vaccines and medical supplies.
Phytosanitary certificate
Document certifying that plant products comply with the phytosanitary requirements of the destination country.
Phytosanitary control
Inspection aimed at preventing the entry or spread of organisms harmful to plants and plant products.
Picking
Order preparation process involving the selection of products within a warehouse.
Port area
Land and maritime areas required for the operation and development of port activities.
Port call
A vessel’s scheduled or unscheduled stop at a port during its voyage.
Proforma invoice
Preliminary invoice used before the final transaction, usually for quotations, licences or preliminary formalities.
Project cargo
Transport of special cargo that requires specific logistics solutions because of its size, weight or complexity.
PSS — Peak Season Surcharge
Surcharge applied during periods of high transport demand.
Pure triangular transactions
Triangular transactions in which the manufacturer and buyer are outside the European Union, while the intermediary is within the EU customs territory.

R-S

Red channel
Customs inspection channel requiring both documentary and physical inspection of the goods.
Reefer
Refrigerated container used for goods that require temperature-controlled transport.
Register of Intra-Community Operators — ROI
Register in which companies and professionals carrying out commercial transactions within the European Union must enrol.
Reverse logistics
Management of the return flow of products, containers, packaging or waste for reuse, repair, recycling or proper disposal.
REX system
System allowing registered exporters to self-certify the preferential origin of their goods through a statement on an invoice or other commercial document.
Ro-Ro
Type of vessel designed to carry wheeled cargo, such as cars, trucks or trailers, which can be driven on and off the ship.
Rolling motorway
Combined road-and-rail transport service in which truck trailers are loaded onto trains for part of the journey and collected by another truck at destination, reducing costs and environmental impact.

SAAI — Integrated Automated Customs System
Mexican IT system that centralises and manages customs operations nationwide in real time.
SAT
Mexico’s Tax Administration Service. The authority responsible for applying tax and customs legislation, auditing taxpayers and facilitating tax compliance.
Semi-submersible vessels
Specialised vessels capable of partially submerging to facilitate the loading of very heavy or oversized cargo.
Ship agent
Agent acting on behalf of the shipowner or vessel owner and responsible for managing land-side operations related to the cargo.
Shipowner
Individual or legal entity responsible for preparing, managing and maintaining a vessel in seaworthy condition.
Shipper
Exporter or cargo owner that hands the goods over for transport.
Shipping instructions
Instructions sent to the freight forwarder or shipping line containing the information required to issue the bill of lading.
Shipping line
Company or operator that uses owned or chartered vessels to transport goods or passengers.
Silk Road
Network of trade corridors and infrastructure developed to connect Asia, particularly China, with Europe by land and sea.
Single Administrative Document — SAD
Document used to declare goods to customs and comply with customs formalities for import, export or transit operations.
Single Window
Electronic system that allows the information required to comply with foreign trade requirements to be submitted once.
SOC — Shipper Owned Container
Container owned by the shipper.
Stevedore
Worker responsible for loading, unloading and correctly stowing cargo on a vessel or other means of transport.
Stock
Goods held in storage and available for sale, use or distribution.
Storage
Storage charge levied by a terminal or warehouse for keeping goods or containers on site.
Stowage
Proper distribution and placement of cargo inside a vessel or other means of transport.

T1
External transit document used to move non-Union goods within the customs territory of the European Union.
T2
Transit document used for Union goods moving through certain territories.
Tank Container
Tank container used for liquids, gases or chemical products.
Tariff
Tax or duty applied to the import or export of goods.
Tariff heading
Four-digit code used to identify goods within the customs tariff.
Tariff preference
Reduction or elimination of customs duties applicable to goods originating in countries covered by a trade agreement.
Technical Barriers to Trade — TBT
Regulations, technical standards and conformity assessment procedures that may affect international trade, excluding sanitary and phytosanitary measures.
Temporary Storage Facility — TSF
Public or private facility authorised to temporarily store goods pending assignment to a customs procedure or other customs-approved treatment.
Terminal Handling Charge — THC
Port handling charge levied by the terminal for loading, unloading and moving a container.
Terminal occupancy charges
Amount charged by a terminal for the space occupied by one or more containers.
TEU
Unit of measure equivalent to one standard 20-foot container.
TPP
Free trade agreement between several countries in the Pacific Rim, signed in Auckland in 2016.
Transshipment
Transfer of goods from one means of transport to another during the journey.
Transport operator
Professional or company responsible for moving goods from an origin to a destination and safeguarding them during transit.
Triangular transactions
Commercial transactions involving three companies located in three different countries, with a single direct movement of goods from origin to destination.

U-V-W

Unimodal transport
Transport carried out using a single mode of transport.
Union Customs Code — UCC
Legislation governing the customs procedures, regimes and rules applicable to trade between the European Union and third countries.

Verified Gross Mass — VGM
Total weight of a packed container, including the goods, packaging and container tare weight.
Vessel
Ship used to transport goods.
Veterinary certificate
Document required for live animals or products of animal origin.
Voyage
A specific journey by a vessel, usually identified by a call or voyage number.

Warehouse
Building or facility used for the storage and safekeeping of goods.

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