Import & trade glossary

Anti-dumping duty is an extra import charge on goods sold below fair value, added on top of normal duty to protect domestic producers.

A bill of lading is a shipping document that acts as a receipt for goods, a contract of carriage, and a document of title to the cargo.

A bonded warehouse is a customs-approved facility where imported goods can be stored without paying duty and import VAT until they are released.

CIF means the seller pays cost, insurance and freight to the destination port; the buyer then covers import duty, VAT, clearance and onward delivery.

A commodity code is the full country-specific tariff number used to declare goods at import — in the UK it is 10 digits and determines the duty rate that applies.

A customs broker is an agent who prepares and submits import declarations to customs on your behalf and manages duty and VAT.

Customs value is the value of imported goods on which duty and import VAT are calculated — in the UK usually the CIF price at the border.

DAP means the seller delivers the goods to your named location ready to unload, but the buyer clears them for import and pays duty and VAT.

The DCTS is a UK preference scheme that lowers or removes import duty on goods from eligible developing countries, replacing the old GSP.

DDP means the seller delivers the goods to your door with all costs paid — including import duty and taxes; the buyer just receives them.

De minimis is the value threshold below which imported goods are exempt from duty (and sometimes import VAT) to avoid charging tiny amounts.

Demurrage is a charge for keeping a container at the port or terminal beyond the free time allowed, before it is collected.

A duty deferment account lets an importer delay paying duty and import charges, settling them monthly by direct debit instead of per shipment.

Duty drawback is a refund of import duty paid on goods that are subsequently exported or used in producing exported products.

An EORI number is a unique ID that businesses need to import or export goods; UK traders need a GB EORI to clear goods through customs.

EXW means the seller only makes the goods available at their premises; the buyer arranges and pays for everything from the factory gate onward.

FCL means you ship a full container of your own goods; LCL means your goods share a container with other shippers' cargo, billed by volume.

FOB means the seller delivers the goods loaded onto the ship at the origin port; from that point the buyer pays freight, insurance and import costs.

A freight forwarder is a company that arranges the transport of your goods across the supply chain, coordinating carriers, documents and customs.

An HS code is a standardised 6-digit number that classifies a traded product worldwide; countries extend it into a fuller national commodity code (10 digits in the UK) that determines the duty rate and rules that apply.

Import duty is a tax charged on goods entering a country, calculated as a percentage of their customs value and set by the commodity code.

Import VAT is value-added tax charged on goods entering the UK, calculated on the customs value plus any import duty and UK-side incidental costs — usually 20%.

Incoterms are standard three-letter trade rules (EXW, FOB, CIF, DAP, DDP…) that define who pays for and who is at risk for goods at each stage of shipping.

Landed cost is the total per-unit cost of a product once it reaches your door — goods, freight, insurance, duty, import VAT and fees combined.

MFN is the standard, non-preferential duty rate a country applies to imports from WTO members that have no special trade agreement.

PVA lets a UK VAT-registered importer account for import VAT on their VAT return instead of paying it in cash at the border.

Rules of origin are the criteria that decide which country goods 'originate' from, determining whether they qualify for a preferential duty rate.

A tariff is a tax a government charges on imported goods, expressed as a rate on the value or quantity and set by the product's classification.

Tariff classification is the process of assigning the correct commodity code to goods, which fixes the duty rate and rules that apply on import.

Volumetric weight is a pricing measure based on a shipment's size rather than its actual weight, used when goods are bulky but light.