Shipping Glossary

AD Code: Authorised Dealer code of the exporter's bank; must be registered at the port before export.
Advance Authorisation: DGFT scheme allowing duty-free import of inputs used to manufacture export products.
AEO: Authorised Economic Operator – Indian Customs trusted-trader programme offering faster clearance.
ATA Carnet: International customs document for duty-free temporary import of goods (exhibitions, samples, equipment).
AWB (Air Waybill): Transport document and receipt for air cargo; not a document of title.
BAF: Bunker Adjustment Factor – fuel surcharge added to ocean freight.
Bill of Entry (BE): Import declaration filed with Customs for clearance of goods.
Bill of Lading (B/L): Receipt, contract of carriage and document of title for sea cargo.
Bonded Warehouse: Customs-licensed warehouse where imported goods are stored before duty payment.
CBM: Cubic metre (1 m × 1 m × 1 m) – the standard unit of cargo volume.
CFS: Container Freight Station – facility where LCL cargo is stuffed, de-stuffed and cleared.
Certificate of Origin: Document certifying the country where goods were produced; used for preferential duty.
Chargeable Weight: For air cargo, the higher of actual weight and volumetric weight.
Customs Broker (CHA): Licensed agent who files customs declarations on behalf of importers and exporters.
Cut-off: Last date/time to deliver cargo or documents to catch a vessel or flight.
Demurrage: Charge for containers or cargo kept at the port/terminal beyond the free days.
Detention: Charge for keeping the shipping line's container outside the port beyond the free days.
DG Cargo: Dangerous Goods – hazardous materials classified under IMDG (sea) or IATA DGR (air).
Delivery Order (DO): Document from the carrier authorising release of import cargo to the consignee.
Drawback: Refund of customs duty paid on inputs used in exported goods.
EGM / IGM: Export / Import General Manifest – the carrier's cargo declaration to Customs.
EPCG: Export Promotion Capital Goods scheme – duty-free import of capital goods against an export obligation.
ETA / ETD: Estimated Time of Arrival / Departure.
FCL: Full Container Load – a container used by a single shipper.
Free Days: Period allowed without demurrage or detention charges.
Freight Forwarder: Company that arranges transport and related services for shippers.
HBL / MBL: House B/L issued by the forwarder / NVOCC; Master B/L issued by the shipping line.
HS Code: Harmonized System code used worldwide to classify goods for customs and duty.
ICD: Inland Container Depot – dry port where customs clearance happens away from the seaport.
ICEGATE: Indian Customs Electronic Gateway – the e-filing portal for customs documents.
IEC: Importer-Exporter Code issued by DGFT; mandatory for import and export.
Incoterms®: ICC rules defining buyer/seller responsibilities for delivery, risk and cost.
LCL: Less than Container Load – cargo consolidated with other shippers in one container.
LEO: Let Export Order – Customs permission allowing goods to be loaded for export.
Letter of Credit (L/C): Bank guarantee of payment to the seller against compliant shipping documents.
MSDS: Material Safety Data Sheet – safety information required for chemicals and DG cargo.
MTO: Multimodal Transport Operator – registered to carry goods using more than one mode under one contract.
Notify Party: Party to be informed when cargo arrives, usually the buyer or its agent.
NVOCC: Non-Vessel Operating Common Carrier – issues its own B/L without owning ships.
ODC: Over-Dimensional Cargo – cargo exceeding standard container or road limits.
Out of Charge (OOC): Final customs clearance for imports, allowing cargo to leave the port.
Reefer: Refrigerated container for temperature-controlled cargo.
RoDTEP: Remission of Duties and Taxes on Exported Products – export incentive scheme.
Seaway Bill: Non-negotiable sea transport document; cargo released without an original B/L.
Shipping Bill: Export declaration filed with Customs.
Stuffing / De-stuffing: Loading cargo into / unloading cargo from a container.
Surrender / Telex Release: Release of cargo at destination without presenting original B/Ls.
SVB: Special Valuation Branch – customs wing examining related-party import valuation.
TEU / FEU: Twenty-foot / Forty-foot Equivalent Unit – standard container measures.
THC: Terminal Handling Charges at origin or destination port.
Transhipment: Transfer of cargo from one vessel to another at an intermediate port.
ULD: Unit Load Device – pallet or container used in aircraft.
VGM: Verified Gross Mass – mandatory certified weight of a packed export container (SOLAS).
W/M: Weight or Measure – LCL freight basis: 1 CBM or 1,000 kg, whichever is higher.

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