Technical jargon, translated.
International trade has a language of its own: abbreviations, documents, clauses. Those who know it negotiate as equals and avoid costly misunderstandings.
This glossary explains the terms you'll most often come across in a Zerdawa enquiry — without legalese. For the delivery clauses (EXW to DDP) there is a separate, detailed page.
Group 01
Customs & documents
- HS Code
- International code for classifying goods (the 'Harmonized System', HS). It determines the duty rate and import regulations — a wrong number can hold up a shipment.
- Certificate of Origin
- Document that proves a product's country of origin. The basis for customs preferences and some import regulations.
- Commercial Invoice
- The invoice for customs clearance: it declares the value, quantity and type of goods and is the basis for the duty calculation.
- Packing List
- Detailed listing of a shipment's contents (pieces, weight, dimensions) — it helps customs and logistics with inspection and handling.
- Movement Certificate
- Document (EUR.1) that proves preferential origin under free trade agreements and thereby reduces or removes duties.
- Preferential Trade Agreement
- Trade agreement between countries that mutually grants reduced or waived duties — with a correct proof of origin.
Group 02
Logistics & transport
- Full Container Load
- An entire container for a single shipment (FCL). Economical once the quantity largely fills a container.
- Less than Container Load
- Part load (LCL): several shipments share one container. Ideal for smaller quantities that don't fill a full container.
- Bill of Lading
- The sea freight document (Bill of Lading, B/L): freight contract, receipt of goods and document of title all in one — it embodies the right to the goods.
- Demurrage & Detention
- Charges when a container stands longer than agreed at the port (demurrage) or at the consignee's (detention). Avoidable through clean planning.
- Pre- & On-Carriage
- The road transport before the main leg (from the works to the port) and after it (from the port to the destination). Part of every end-to-end supply chain.
- Transit Time
- The transit time of a shipment from departure to arrival including pre- and on-carriage — the figure that really counts for your planning.
Group 03
Trade & payment
- Minimum Order Quantity
- The smallest quantity (MOQ) a supplier accepts per order. It influences the unit price and storage requirements.
- Letter of Credit
- Payment security via the bank (Letter of Credit, L/C): the bank pays only once the agreed documents are presented — security for both sides.
- Pro Forma Invoice
- Advance invoice without a request for payment — it serves as a binding offer and for customs/permit purposes before delivery.
- Advance Payment & Deposit
- Payment in full or in part before delivery. Common with new supply relationships; the proportion is a matter of negotiation.
- Customs Tariff Number
- The national extension of the HS Code that determines the exact duty rate in the importing country. Decisive for customs clearance.
A term missing or unclear? Ask us — we're happy to explain what lies behind a clause or a document.