Section 13
Import-export glossary
The words you will hear from your bank, your customs broker and your buyer — explained in one or two lines.
- terms
- 79
A
- AD bankAuthorised Dealer bank
- A bank licensed by RBI to deal in foreign exchange.
- AD codeAuthorised Dealer code
- A code your bank gives for its branch that handles foreign exchange. It must be registered at each port you export from.
- APEDAAgricultural and Processed Food Products Export Development Authority
- The body that registers and promotes exporters of scheduled agricultural and processed food products.
- AWBAir waybill
- The airline's receipt and contract of carriage for air cargo. Not a title document.
B
- BCDBasic Customs Duty
- The main duty on imports, set in the Customs Tariff for each HS code.
- Bill of entry
- The import declaration filed with Indian Customs.
- Bill of exchange
- A written order to pay a sum on sight or on a future date; used with DP, DA and LCs.
- BLBill of lading
- The sea carrier's receipt, contract of carriage and, if negotiable, title to the goods.
- Buyer-seller meet
- An event where Indian exporters meet overseas buyers, often organised by export promotion councils.
C
- CBICCentral Board of Indirect Taxes and Customs
- The board that runs Indian Customs and GST administration.
- CFRCost and Freight
- Incoterm: seller pays freight to the destination port; risk passes on loading.
- CFSContainer Freight Station
- A customs-bonded yard near a port or ICD where cargo is packed into or out of containers.
- CHACustom House Agent (customs broker)
- A CBIC-licensed agent who files customs documents and clears goods for you.
- CIFCost, Insurance and Freight
- Incoterm: seller pays freight and minimum insurance to the destination port; risk passes on loading.
- CIPCarriage and Insurance Paid To
- Incoterm for any transport: seller pays carriage and all-risks insurance to the destination.
- Consignee
- The person or company to whom goods are shipped.
- Container (TEU/FEU)
- Standard steel boxes; a 20 ft is one TEU, a 40 ft is one FEU (two TEU).
- CoOCertificate of origin
- Proof of the country where goods were made; preferential CoOs give FTA duty benefits.
- CPTCarriage Paid To
- Incoterm: seller pays carriage to the destination; risk passes at the first carrier.
D
- DADocuments against Acceptance
- The buyer gets documents by accepting a bill of exchange to pay later.
- DAPDelivered at Place
- Incoterm: seller delivers to a named place abroad, not unloaded, import duty unpaid.
- DDPDelivered Duty Paid
- Incoterm: seller delivers to the buyer's place and pays import duty and taxes.
- Demurrage
- Charge for cargo or a container staying too long at the port or terminal.
- Detention
- Charge for keeping a shipping line's container beyond the free days outside the terminal.
- DGFTDirectorate General of Foreign Trade
- The Commerce Ministry office that issues IEC and runs the Foreign Trade Policy.
- DNKDak Ghar Niryat Kendra
- Post-office export centres that help small exporters send goods by post.
- DPDocuments against Payment
- The buyer's bank releases documents only after the buyer pays.
- DrawbackDuty drawback
- Refund of duties paid on inputs used in exported goods.
- DSCDigital Signature Certificate
- An electronic signature used to sign applications on DGFT and other portals.
E
- e-BRCelectronic Bank Realisation Certificate
- DGFT's electronic record that export money was received.
- ECEHE-Commerce Export Hub
- A designated facility under FTP 2023 for cross-border e-commerce storage, packing and clearance.
- ECGCECGC Ltd (Export Credit Guarantee Corporation)
- Government of India company that insures exporters and banks against non-payment.
- EDPMSExport Data Processing and Monitoring System
- RBI's system where banks track each shipping bill until the export money arrives.
- EGMExport General Manifest
- The carrier's list of all export cargo loaded on a vessel or aircraft, filed with customs.
- EICExport Inspection Council
- India's official export certification body for notified foods and goods.
- EPCExport Promotion Council
- An industry body for a product group that issues RCMC and promotes exports.
- EPCGExport Promotion Capital Goods
- Scheme to import capital goods at zero duty against an export obligation.
- EXWEx Works
- Incoterm: seller only makes goods available at its premises.
F
- FASFree Alongside Ship
- Sea Incoterm: seller places goods alongside the vessel at the port.
- FCAFree Carrier
- Incoterm: seller clears export and hands goods to the buyer's carrier.
- FEMAForeign Exchange Management Act, 1999
- The law under which RBI regulates foreign exchange, including export receipts.
- FIEOFederation of Indian Export Organisations
- Apex body of export promotion organisations; runs the Indian Trade Portal.
- FOBFree On Board
- Sea Incoterm: seller loads goods on the vessel; the value Indian customs records for exports.
- ForwarderFreight forwarder
- A company that books freight and arranges transport and paperwork for shippers.
- FPOForeign Post Office
- A post office with customs where international postal parcels are cleared.
- FTAFree Trade Agreement
- An agreement that lowers duties between partner countries for goods meeting origin rules.
- FTPForeign Trade Policy
- The Government's export-import policy, currently FTP 2023, administered by DGFT.
- Fumigation
- Treating goods or packing with gas to kill pests before export.
G
- GSTINGST Identification Number
- Your 15-character GST registration number.
H
- HS codeHarmonized System code
- The international product code; India uses 8 digits (ITC-HS) for trade.
I
- ICDInland Container Depot
- A dry port inland where customs clearance is done before cargo moves to a sea port.
- ICEGATEIndian Customs Electronic Gateway
- CBIC's portal for filing shipping bills, bills of entry and tracking customs status.
- IECImporter-Exporter Code
- Your 10-character trade ID from DGFT, needed for most imports and exports.
- IGSTIntegrated Goods and Services Tax
- GST on inter-state supplies and imports; exports are zero-rated.
- Incoterms
- ICC rules (current edition 2020) that set who pays which cost and when risk passes.
- ITC(HS)
- India's 8-digit trade classification, with import and export policy schedules from DGFT.
L
- LCLetter of credit
- A bank's promise to pay against documents that match its terms.
- LCL / FCLLess than / Full Container Load
- LCL shares a container with other shippers; FCL uses a whole container.
- LCSLand Customs Station
- A customs post on a land border, such as Petrapole or Raxaul.
- LEOLet Export Order
- Customs' permission to load export goods, given on the shipping bill.
- LUTLetter of Undertaking
- A yearly GST filing that lets you export without paying IGST.
M
- MAIMarket Access Initiative
- Commerce Ministry scheme supporting fairs, buyer-seller meets and market studies.
- MEPMinimum Export Price
- A floor price below which a notified product cannot be exported.
N
- Notify party
- The person the carrier informs when the goods arrive, often the buyer.
O
- Open account
- Goods and documents go straight to the buyer, who pays later.
P
- Phytosanitary certificate
- Official certificate that plant products are free of listed pests.
- PQMSPlant Quarantine Management System
- Online portal for phytosanitary certificates and plant quarantine clearance.
- Proforma invoice
- A priced offer in invoice form, sent before the order is final.
R
- RCMCRegistration-cum-Membership Certificate
- Membership of the export promotion council or board for your product.
- RoDTEPRemission of Duties and Taxes on Export Products
- Refund of embedded taxes as a percentage of FOB value for notified products.
- RoSCTLRebate of State and Central Taxes and Levies
- Refund of embedded taxes for garments and made-ups.
S
- Shipping bill
- The export declaration filed with Indian Customs on ICEGATE.
- Sight / usance
- Sight means pay on presentation; usance means pay after an agreed number of days.
- Stuffing
- Loading goods into a container, at a factory, CFS or ICD.
- SWSSocial Welfare Surcharge
- A surcharge on import duty, calculated on the customs duty amount.
T
- Telex release
- The shipping line releases cargo at destination without the original BL, on the shipper's instruction.
- THCTerminal Handling Charges
- Charges for handling a container at the port terminal, at origin and destination.
U
- UCP 600
- ICC rules that most letters of credit follow.