Glossary

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3PL (Third-Party Logistics)

A company that handles order fulfillment and shipping on behalf of an e-commerce business.

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A

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AWB (Air Waybill)

A document used for air freight shipments, containing tracking and shipping details.

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Address Validation

A process to ensure delivery addresses are correct and complete before shipping.

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B

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Barcode

A machine-readable code used to scan and track parcels throughout the shipping process.

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Bill of Lading (BOL)

A legal document between the shipper and carrier that details the goods being transported and serves as a receipt.

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BOPIS (Buy Online, Pick Up In Store)

An order fulfillment method where customers purchase online and pick up their orders in a physical location.

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Broker (Customs Broker)

A licensed professional who handles customs clearance and compliance for international shipments.

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C

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Carrier

The company responsible for transporting packages (e.g., PostNord, GLS, Bring).

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CN22 / CN23

Customs declaration forms required for shipping goods outside the EU, based on value and content.

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Consolidation

Combining multiple smaller shipments into a single larger one to reduce costs and simplify customs.

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CPT (Carriage Paid To) (Incoterm)

Seller pays for transport to destination; risk transfers once goods are handed to the carrier.

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CFR (Cost and Freight) (Incoterm)

Seller pays transport to port of destination; risk transfers when goods are loaded onto the vessel.

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CIF (Cost, Insurance and Freight) (Incoterm)

Same as CFR, but seller also provides insurance for the buyer.

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CIP (Carriage and Insurance Paid To) (Incoterm)

Seller pays transport and insurance to destination; risk transfers to buyer once handed to carrier.

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Customs Clearance

The process of declaring goods to border authorities for import/export, including submitting forms and paying duties.

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Customs Duty

A tax imposed by a country on imported goods, based on product type, value, and country of origin. Customs duties are used to protect domestic industries and generate government revenue. The rate varies depending on the product’s HS code and where it was manufactured. Also commonly referred to as “duty” or “import duty.”

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D

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DAP (Delivered At Place) (Incoterm)

Seller delivers goods to the buyer’s country; buyer pays duties and taxes.

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DDP (Delivered Duty Paid) (Incoterm)

Seller is responsible for all costs, including customs duties and taxes, until delivery.

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Declared Value

The stated value of goods in a shipment, used for customs and insurance.

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Delivery Confirmation

A service where proof of delivery (such as a signature or scan) is provided by the carrier.

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Dimensional Weight

A pricing method based on a package’s volume rather than its actual weight.

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DPU (Delivered at Place Unloaded) (Incoterm)

Seller delivers and unloads goods at the destination; buyer pays import duties and taxes.

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Duty

An alternative term for customs duty.

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E

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EORI Number

A unique identification number required for businesses exporting/importing goods outside the EU.

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ETA (Estimated Time of Arrival)

The expected delivery time for a shipment.

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Excise Duties

Indirect taxes on the sale or use of specific products such as alcohol, tobacco, energy products, and electricity. These duties are used to discourage consumption of certain goods, generate government revenue, and address public health or environmental concerns.

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EXW (Ex Works) (Incoterm)

Buyer handles all shipping, from pickup at the seller’s premises to delivery.

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F

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FAS (Free Alongside Ship) (Incoterm)

Seller delivers goods to the port and places them next to the ship; buyer is responsible from there.

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FCA (Free Carrier) (Incoterm)

Seller delivers goods to a location or carrier chosen by the buyer; buyer handles transport from there.

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FOB (Free On Board) (Incoterm)

Seller loads goods onto the vessel; risk passes to buyer once goods are aboard.

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Fulfillment

The process of receiving, packing, and shipping customer orders.

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H

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Handling Fee

An extra charge for processing, packaging, or handling a shipment.

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HS Code (Harmonized System Code)

An international product classification code used for customs declarations.

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I

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Import Duty

An alternative term for customs duty.

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Incoterms®

A set of international rules that define the responsibilities of buyers and sellers in global trade.

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Insurance

Optional coverage that protects a shipment against loss or damage during transit.

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Invoice (Commercial Invoice)

A document used in international shipping that lists the goods, their value, and HS codes.

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L

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Label (Shipping Label)

A document that includes sender and recipient info, tracking number, and barcode, attached to every parcel.

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Last Mile Delivery

The final step of the shipping process — from the carrier’s depot to the customer’s door.

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M

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Manifest

A summary of all parcels in a shipment, typically generated for batch pickups.

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O

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Origin Country

The country where the goods are manufactured or shipped from.

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P

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Parcel Shop / Pickup Point

A designated location where customers can collect their parcel instead of home delivery.

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Postage Paid

Indicates that the shipping cost has been paid by the sender.

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Proof of Delivery (POD)

Documentation or digital confirmation that a parcel has been successfully delivered.

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R

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Recipient

The person or company receiving the shipment.

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Return Label

A pre-paid label that customers use to send goods back to the sender.

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S

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Sender

The webshop or business shipping the goods.

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Service Level

The type of delivery selected (e.g. standard, express, same-day).

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Shipping Method

The carrier and service used for transporting a parcel.

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Surcharges

Extra fees added by carriers for specific services (e.g. remote area, oversized parcels).

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T

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Tariff Code

Another term for HS code, used to determine customs duties.

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Tax

A mandatory financial charge imposed by governments on goods, services, or transactions. In international shipping, common types of taxes include Value-Added Tax (VAT), customs duty, and excise duties on specific products like alcohol or tobacco.

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Tracking Number (Track & Trace)

A unique ID that lets the sender and recipient monitor the shipment’s journey.

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Transit Time

The duration between shipment and delivery.

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V

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VAT (Value-Added Tax)

A consumption tax applied in many countries, especially within the EU, often relevant when shipping internationally.

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W

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Waybill

A transport document issued by a carrier containing shipment details, used for tracking and accountability.