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Terms you will meet in a supplier quote.

Orientation for the language around a quote, shipment, or import. Use the agreed contract and current provider guidance for the actual transaction.

  • MOQMinimum order quantity: the lowest quantity a supplier will produce or sell for a particular order.
  • OEM and ODMOEM generally means manufacturing to your design or specification; ODM generally means a supplier offers an existing design that can be adapted. Confirm the actual scope in writing.
  • HS codeA Harmonized System product classification used in customs work. The exact classification and duty treatment depend on the product and destination.
  • VATValue-added tax. Whether it applies, and who accounts for it, depends on the destination and transaction.
  • Import dutyA tax that may apply when goods enter a destination country. Rates depend on classification, origin, valuation, and current rules.
  • LCL and FCLLess-than-container load shares container space; full-container load uses a dedicated container. The practical trade-off is volume, handling, timing, and cost.
  • CBMCubic metre: a volume measurement commonly used in sea-freight quoting.
  • Chargeable weightThe weight a carrier uses to price a shipment, often whichever is greater: actual or volumetric weight.
  • Demurrage and detentionCharges that can arise when cargo or equipment remains beyond the agreed free time. Confirm each carrier and port's definitions in the quote.
  • Customs brokerA licensed professional who may prepare or handle customs work for an importer. The importer remains responsible for compliance.
  • Freight forwarderA company that arranges transport and related shipping documentation; its exact service scope should be agreed in writing.
  • EXW: Ex WorksThe seller makes goods available at the named place. The agreed Incoterms® version and named place matter.
  • FOB: Free On BoardA sea or inland-waterway term under Incoterms® 2020. Use the named loading port and the agreed version in the contract.
  • CIF: Cost, Insurance and FreightA sea or inland-waterway term under Incoterms® 2020. It does not settle every cost or obligation at the destination.
  • DDP: Delivered Duty PaidA term that places substantial delivery obligations on the seller. Confirm the named place, importer-of-record arrangement, and all exclusions.