Global Trade Compliance Glossary

Global trade involves complex regulations, documentation requirements, and supply chain terminology. This global trade compliance Glossary provides clear definitions for more than 150 key terms used in international trade, logistics, customs, export controls, and global tech supply chains. From Incoterms and tariffs to export compliance rules and customs documentation, this reference guide helps businesses, logistics professionals, and compliance teams understand the language of global trade.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

3PL (Third-Party Logistics)

A company that provides outsourced logistics services, including transportation, warehousing, stocking locations, and distribution.

ABN (Australian Business Number)

A unique identifier assigned to businesses operating in Australia for tax and regulatory purposes.

AD/CVD (Anti-Dumping / Countervailing Duties)

Additional import duties imposed to counter unfairly low pricing or foreign government subsidies.

AEO (Authorized Economic Operator)

A certification granted to trusted businesses that meet customs security and compliance standards.

AfCFTA (African Continental Free Trade Area)

A trade agreement aimed at creating a single market across African countries.

AGOA (African Growth and Opportunity Act)

A US program granting duty-free access for certain exports from eligible African countries.

AI Data Center

A specialized data center designed for artificial intelligence workloads using high-performance processors.

APEC (Asia-Pacific Economic Cooperation)

A regional forum promoting economic cooperation among Pacific Rim countries.

ATA Carnet

An international customs document allowing the temporary import of goods without paying duties or taxes.

AWB (Air Waybill)

An Air Waybill (AWB) is a document produced by the freight company that provides detailed shipment and tracking information.

Bill of Lading (BOL)

A legal shipping document acknowledging receipt of goods and defining transport terms.

Bill of Materials (BOM)

A list of components and raw materials needed to manufacture a product.

BIS Certification

Product certification issued by India’s Bureau of Indian Standards confirming compliance with national standards.

CargoX

A blockchain platform used to securely transfer digital trade documents in Egypt.

CARICOM (Caribbean Community)

A regional organization promoting economic integration among Caribbean countries.

CBAM (Carbon Border Adjustment Mechanism)

An EU policy applying carbon pricing to certain imported goods.

CBCA (Canada Business Corporations Act)

Federal legislation governing corporations in Canada.

CCC (China Compulsory Certification)

Mandatory product safety certification required for certain goods sold in China.

CCL (Commerce Control List)

A list of items subject to export controls under US regulations.

Central Processing Unit (CPU)

The primary processor that executes instructions in a computer.

Centralized Procurement

A purchasing model in which a central team manages supplier sourcing and purchasing.

Centralized Warehousing

A logistics strategy where inventory is stored in a limited number of distribution centers.

CHIPS Act

US legislation supporting domestic semiconductor manufacturing.

CI (Commercial Invoice)

A document issued by the exporter detailing goods, value, and transaction information for customs.

CIF (Cost, Insurance, and Freight)

An Incoterm where the seller pays transport and insurance to the destination port.

CNCA (Conselho Nacional de Carregadores de Angola)

The CNCA certificate is typically required before goods can be shipped to Angola and is used for cargo monitoring and regulatory compliance.

CoC (Certificate of Conformity)

A document confirming that a product meets regulatory standards.

COMESA(Common Market for Eastern and Southern Africa)

A regional trade organization promoting economic integration in Africa.

Consignee

The person or company receiving the shipment.

COO (Certificate of Origin)

A document identifying where goods were manufactured.

CPTPP

Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a major international trade agreement among Pacific Rim countries.

CRA (Cyber Resilience Act)

EU regulation requiring cybersecurity standards for digital products.

Customs Broker (CB)

A licensed professional who manages customs documentation and clearance on behalf of importers/exporters.

Customs Clearance

The process of obtaining approval to import or export goods.

Customs Clearance Documents (CCD)

A collection of documents required by customs authorities to process and approve the import or export of goods. These typically include an air waybill, a certificate of origin, and any required permits or licenses.

DAP (Delivered at Place)

Delivery Incoterm where the seller delivers goods to a specified location; the buyer handles import duties.

DAT (Delivered at Terminal)

Incoterm replaced by DPU in Incoterms 2020.

Data Center

A facility housing computing infrastructure, such as servers and storage systems.

Data Rights

Legal rights governing access, ownership, and use of data.

Data Sovereignty

The principle that data is subject to the laws of the country where it resides.

DC Cooling

Cooling systems used to regulate temperature in data centers.

DDP (Delivered Duty Paid)

Delivery Incoterm where the seller assumes all shipping costs, duties, and taxes to the buyer’s location.

De Minimis Rule

A value threshold below which imported goods may be exempt from duties.

Decentralized Procurement

A purchasing model where departments or regions handle their own procurement.

Decentralized Warehousing

A logistics model with multiple regional warehouses.

Demurrage

Fees are charged when cargo remains in a port or terminal beyond the allowed free time.

Domestic Moves

Transportation of goods within a single country.

DPU (Delivered at Place Unloaded)

Delivery Incoterm where the seller delivers and unloads goods at the destination.

Drayage

Short-distance transport of containers between ports, warehouses, or rail terminals.

Dual-Use Goods

Products with both civilian and potential military applications.

Duty

A tax imposed by a government on imported goods.

EAR (Export Administration Regulations)

US regulations controlling export of dual-use goods and technology.

EAR99

Classification for items subject to EAR but generally not requiring an export license.

ECCN (Export Control Classification Number)

Code identifying controlled items under export regulations.

EEA (European Economic Area)

An agreement extending the EU single market to certain non-EU countries.

EFTA (European Free Trade Association)

A trade organization for several European countries outside the EU.

Embargo

Government restrictions on trade with a specific country.

Employer of Record

Company that legally employs workers on behalf of another organization.

End User

The final user of exported goods or technology.

EORI (Economic Operators Registration and Identification)

Registration number required for companies trading with the EU.

EPA (Economic Partnership Agreement)

Trade agreements between the EU and developing regions.

EPR (Extended Producer Responsibility)

Policy requiring manufacturers to manage product lifecycle environmental impacts.

Export Control

Regulations restricting export of sensitive goods and technologies.

Export Transaction

The sale and shipment of goods across international borders.

Exporter of Record

Entity responsible for export compliance and documentation.

EXW (Ex Works)

Incoterm where the buyer assumes most responsibility once goods are available at the seller’s premises.

FCC (Federal Communications Commission)

US regulator for telecommunications and electronic device compliance.

Federal Security Bureau Notification (FSB)

Russian authorization required for certain encryption-enabled imports.

Forex (Foreign Exchange)

The global market for trading currencies.

Forward Stocking Location (FSL)

A warehouse located near customers to speed delivery.

Freight Forwarder

A logistics provider arranging transportation and documentation for shipments.

Friendshoring

Moving supply chains to politically allied countries.

FTA (Free Trade Agreement)

A treaty reducing tariffs and trade barriers between countries.

FTZ (Foreign Trade Zone)

A designated area where imported goods can be stored or processed without immediate duties.

GATT (General Agreement on Tariffs and Trade)

International treaty aimed at reducing trade barriers and later integrated into the framework of the World Trade Organization.

GCC (Gulf Cooperation Council)

Regional political and economic alliance of Gulf states.

GPU (Graphics Processing Unit)

A specialized processor used for parallel computing and AI workloads.

GSP (Generalized System of Preferences)

A program granting preferential tariffs to developing countries.

GST (Goods and Services Tax)

A value-added consumption tax applied in several countries.

Harmonized System (HS)

An international system for classifying traded goods.

HKTID (Hong Kong Trade and Industry Department)

Government department responsible for trade regulation in Hong Kong.

HTS Code

A country-specific tariff classification derived from the Harmonized System.

ICC (International Chamber of Commerce)

Global business organization that publishes the Incoterms.

Import Compliance

Processes ensuring imported goods meet regulatory requirements.

Import Tax

Taxes imposed on imported goods in addition to duties.

Incoterms

International trade rules defining shipping responsibilities between buyers and sellers.

Integrated Circuit (IC)

A semiconductor chip containing multiple electronic components.

IOR (Importer of Record)

The party responsible for import compliance and duty payment.

ISF (Importer Security Filing)

US advance cargo information requirement for ocean shipments.

ISPM-15

International standard regulating treatment of wood packaging materials, including pallets.

ITAC

South Africa’s authority managing tariffs and trade remedies.

ITAR (International Traffic in Arms Regulations)

US export control regulations covering defense technologies.

JCT (Japan Consumption Tax)

Japan’s national value-added tax on goods and services.

KC Certification

Mandatory product safety certification required for electronics sold in South Korea.

KEBS (Kenya Bureau of Standards)

Kenya’s national product standards authority.

Letter of Credit

A bank guarantee ensuring exporters receive payment once shipment conditions are met.

Liability Cover

Insurance protecting against legal or financial liability.

Local Entity

A legally registered company operating within a specific country.

Maverick Spending

Purchases made outside approved procurement processes.

Microchips

Small semiconductor devices used in electronics.

Most Favored Nation (MFN)

Trade principle requiring equal tariff treatment among trading partners.

NAFTA (North American Free Trade Agreement)

Former North American trade agreement replaced by United States–Mexico–Canada Agreement.

NOM (Normas Oficiales Mexicanas)

Official Mexican product safety and regulatory standards.

NRI (Non-Resident Importer)

A company importing goods into a country, like Canada, without a local legal entity.

OECD (Organisation for Economic Co-operation and Development)

International organization promoting economic cooperation among developed countries.

OEM (Original Equipment Manufacturer)

A manufacturer producing components used in another firm’s products.

OIEL (Open Individual Export Licence)

UK license allowing export of controlled goods to multiple destinations.

Origin Washing

Disguising a product’s origin to avoid tariffs or trade restrictions.

Package Labeling

Regulatory labeling requirements for goods sold or transported.

Packing List / Pallet List

A shipping document listing the contents and packaging of a shipment.

PCoC (Product Certificate of Conformity)

Certification confirming compliance with a country’s product standards.

POA (Power of Attorney)

Authorization allowing a customs broker to act on behalf of a company.

POD (Proof of Delivery)

Document confirming successful delivery of goods.

PoP (Point of Presence)

A network access location connecting users to telecommunications infrastructure.

RADAR License

Brazil’s system for registering importers and exporters.

Reciprocal Tariffs

Tariffs imposed in response to another country’s trade barriers.

Return Logistics / Reverse Logistics

Processes managing returned goods within supply chains.

RMA (Return Merchandise Authorization)

Approval required before a product can be returned to a supplier.

Rules of Origin

Criteria used to determine where a product was manufactured.

SABER

Saudi Arabia’s online platform for product conformity registration.

SAD (Single Administrative Document)

Customs declaration used for imports and exports.

Sales Tax

A consumption tax applied at the point of retail sale. Most U.S. states implement sales tax, as well as, Curaçao, Djibouti, Guam, Liberia, Malaysia, Myanmar, Pakistan, Puerto Rico, Solomon Islands.

Schedule B Codes

US export classification numbers used for statistical reporting.

SCoC (Supplier Certificate of Conformity)

Certification issued by a manufacturer confirming product compliance.

SCRM (Supply Chain Risk Management)

Processes for identifying and mitigating supply chain risks.

Section 301

US trade law allowing tariffs against unfair trade practices.

Semiconductor

A material used to manufacture electronic chips.

SEZ (Special Economic Zone)

Designated area offering tax and regulatory advantages to attract investment.

SIEL (Standard Individual Export Licence)

A UK license permitting export of controlled goods to a specific end user.

SLA (Service Level Agreement)

Contract defining service performance standards.

Stuck Shipment

Cargo delayed due to regulatory or documentation issues.

Tariff

A government tax imposed on imported goods.

Temporary Import

Importing goods for a limited time without full duties.

Trade Agreement

A treaty governing trade rules between countries.

Trade Bloc

A group of countries cooperating to reduce trade barriers.

Trade Compliance

Processes ensuring international trade activities meet regulatory requirements.

TSMC

Taiwan Semiconductor Manufacturing Company, the world’s largest contract chip manufacturer.

USMCA (United States-Mexico-Canada Agreement)

Trade agreement replacing NAFTA and governing North American trade.

VAD (Value-Added Distributor)

A distributor that adds services or customization to products before resale.

VAR (Value-Added Reseller)

A reseller that enhances products before selling them to customers.

VAT (Value Added Tax)

A consumption tax applied throughout the supply chain.

VAT Deferment

Allows businesses to delay payment of import VAT.

VAT Recovery

Process of reclaiming VAT paid on business purchases.

Valuation

Methods used by customs authorities to determine the value of goods for duty calculation.

Warehousing

The storage of goods before distribution.

WCO (World Customs Organization)

An international organization responsible for customs standards and trade facilitation.

WEEE Directive

EU regulation requiring recycling and responsible disposal of electronic waste.

WTO (World Trade Organization)

International body regulating global trade rules and dispute resolution.

Need help navigating global trade compliance?

International trade regulations, export controls, and customs requirements can be complex and constantly evolving. If your business ships products globally, ensuring compliance across jurisdictions is critical.

Contact our trade compliance specialists to discuss how we can help simplify your import/export operations and reduce regulatory risk.

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