Logistics and trade terms, clearly explained.

ABC Inventory Control is a sophisticated inventory management approach that applies different control strategies to different categories of inventory items based on their value and importance to the…

Actual Time of Arrival (ATA) is the exact time when a vehicle, vessel, aircraft, train, or shipment physically arrives at a terminal, warehouse, hub, or final delivery point.

Actual Time of Departure (ATD) is the exact time when a vehicle, vessel, aircraft, train, or shipment physically leaves its origin point.

In logistics and supply chain management, attach rate refers to the ratio of secondary or complementary products sold together with a primary item.

The Automated Export System (AES) is the US system for filing Electronic Export Information (EEI) on goods leaving the United States, run by the Census Bureau and US…

The Automated Manifest System (AMS) is the US Customs and Border Protection system carriers use to transmit cargo manifest data electronically before goods arrive in the United States,…

Binding Origin Information (BOI) is a decision by an EU customs authority on the origin of specific goods. It is legally binding throughout the EU, generally for three…

Binding Tariff Information (BTI) is a written decision by an EU customs authority on the tariff classification of specific goods. It is legally binding across the EU for…

Bonded goods are imported goods on which customs duty and import VAT have not yet been paid. They must stay in a customs-supervised location, such as a bonded…

A bonded warehouse is a secure, customs-authorised facility where imported goods can be stored with import duty and VAT suspended until they are released for sale, re-exported or…

A Centralised Examination Station (CES) is a privately operated facility approved by US Customs and Border Protection where imported or exported cargo is unloaded and physically inspected.

A Common Health Entry Document (CHED) is the EU document used to pre-notify and clear imports of animals, animal products, certain food and feed, and plants at a…

In logistics, consolidation refers to the process of combining multiple smaller shipments—often from different suppliers, sellers, or locations—into a larger, single shipment for transport.

Consumer-to-Administration (C2A), sometimes written as C2G (Consumer-to-Government), describes all digital interactions where private individuals use online channels to communicate, transact, or exchange information with public authorities.

CITES is an international agreement between governments that controls trade in wild animals and plants, and products made from them, so that trade does not threaten their survival.…

A cost trade-off is the deliberate decision to increase one type of cost in order to reduce another, with the goal of improving overall performance in the supply…

A customs broker is a licensed specialist who prepares and files customs declarations, calculates duties and deals with customs authorities on behalf of importers and exporters.

Customs clearance is the process of getting imported or exported goods approved by customs: declaring them, paying any duties and taxes, passing any checks and obtaining release.

The Customs Declaration Service (CDS) is HMRC’s electronic system for UK import and export declarations. It fully replaced the older CHIEF system in 2024.

A customs entry is the formal declaration filed with customs to clear imported goods. It identifies the goods, their value, classification and origin so duties can be assessed…

CHIEF (Customs Handling of Import and Export Freight) was the UK’s electronic customs declaration system for imports and exports. It was replaced by the Customs Declaration Service (CDS)…

A customs power of attorney (POA) is a written authorisation that lets a customs broker or representative carry out customs business, such as filing entries, in the name…

CTPAT (Customs Trade Partnership Against Terrorism) is a voluntary CBP programme in which companies secure their supply chains in exchange for benefits such as fewer inspections and faster…

In logistics, depots are facilities used to store, stage, or transfer goods, vehicles, or equipment close to where they are needed.

A Foreign Trade Zone (FTZ) is a secure area in the United States that is treated as outside US customs territory, so goods can be stored, processed or…

Fourth-party logistics (4PL) is a strategic logistics model where a single expert partner takes responsibility for designing, coordinating, and optimising the entire supply chain on behalf of a…

Freight refers to goods transported in bulk by road, rail, sea, air, or intermodal combinations.

The Harbor Maintenance Fee (HMF) is a US fee of 0.125% of the value of commercial cargo loaded or unloaded at US seaports. It funds port and harbour…

An HS code is a product classification number from the Harmonized System, the World Customs Organization’s global nomenclature. Its first six digits are the same worldwide and determine…

HAWB stands for House Air Waybill, a transport document issued by a freight forwarder or consolidator to the shipper in air freight.

The Importer of Record (IOR) is the party legally responsible for imported goods: declaring them correctly, paying duties and taxes and making sure they meet all import rules.

Importer Security Filing (ISF), also called 10+2, is a US requirement for importers to send CBP 10 data elements about ocean cargo at least 24 hours before it…

Incoterms are the International Chamber of Commerce’s standard trade terms. They define who pays for transport, insurance and customs, and where risk passes from seller to buyer. The…

In logistics, a leg is a distinct segment of a shipment’s journey between two defined points—such as warehouse to hub, hub to depot, or airport to distribution centre.

A line item is an individual entry that appears on an order, invoice, purchase order, packing list, or inventory record.

The Merchandise Processing Fee (MPF) is a US customs user fee that CBP charges on imports to cover the cost of processing entries. For formal entries it is…

Merge in transit is a logistics strategy where products or components from different origins are brought together and combined whilst they are already moving through the network, rather…

Overage refers to the situation in which a shipment contains more goods than were ordered or documented.

A packing list is a shipping document that details the contents of each package, carton or pallet in a shipment, including quantities, weights, dimensions and markings.

A perfect order is an order delivered on time, in full, undamaged, with accurate documentation and to the right customer and location.

Picking in logistics is the process of selecting and retrieving the correct items from storage locations in a warehouse or fulfilment centre to satisfy customer or replenishment orders.

Place utility refers to the added value created by making a product available at the location where customers need it.

Proof of Delivery (POD) is the documented confirmation that a shipment has been delivered to the intended recipient, at a specific place and time, and in an agreed…

A receiving dock is the designated area in a warehouse, fulfilment centre, or distribution facility where inbound goods first arrive.

Rules of origin are the criteria customs use to decide which country a product comes from. Origin determines duty rates, trade agreement preferences, anti-dumping duties and labelling.

A tail gate exam is a US customs inspection in which CBP officers open a container’s doors and inspect the cargo visible at the back, without fully unloading…

A tariff is a tax charged on imported goods, calculated from the goods’ classification, customs value and origin. Governments use tariffs to raise revenue, protect industries and pursue…

The 7 Storage Technique is a fundamental warehouse organisation method designed to optimise space utilisation, improve picking efficiency, and enhance inventory management.

Throughput refers to the amount of product, inventory, or work that flows through a warehouse, fulfilment centre, or logistics process within a specific time period.

Trade remedies are extra duties or quotas that governments impose under WTO rules to counter dumping, foreign subsidies or sudden import surges that harm domestic industry.

U.S. Customs and Border Protection (CBP) is the US federal agency that clears imports, collects duties and fees, enforces trade rules and secures the border. It is part…

Wall-to-wall inventory is a comprehensive, full-coverage stock-taking method where every item within a defined storage area is physically counted in a single, coordinated effort.