Practical knowledge for international logistics and trade terms.

Customs duty is a tax that may apply during import or export. It is usually related to HS Code, customs value, duty rate, origin and trade policy. Under an ad valorem basis, a common formula is: Duty = Customs value × Duty rate.

• Customs value may include product value, freight, insurance and other relevant costs.
• Import VAT is usually calculated based on a composite taxable value.
• If consumption tax applies, it may also affect the final taxable value.
• Final tax depends on official rules, customs brokers and actual review results.

HS Code is a product-classification code used in international trade. It affects duty rate, regulatory conditions, declaration elements, inspection requirements and customs documentation.

• HS Code cannot be decided by product name alone.
• Usage, material, ingredients, model, images, export country and import country may all matter.
• The same product may have different requirements in different countries or use cases.
• The HS Code Lookup tool can be used for preliminary direction checking.

Customs documents are the documents and product information required for import or export declaration. Common documents include commercial invoice, packing list, contract, bill of lading, declaration elements, product description and origin documents.

• Required documents vary by product and destination country.
• Regulated products may require additional certificates or test documents.
• Incomplete documents can lead to inspection, correction, delay or supplementary declaration.

EXW means Ex Works. The seller usually makes the goods available at its factory or warehouse. Pickup, export, transport, insurance, import clearance and final delivery are usually handled by the buyer.

• The buyer carries more responsibility.
• Suitable for buyers familiar with export and logistics operations.
• Loading support, export documents and customs cooperation should be confirmed in advance.

FOB is commonly used for sea freight. The seller delivers the goods on board the vessel nominated by the buyer. After loading, the main risk usually transfers to the buyer, and international freight is usually paid by the buyer.

• Common in China export sea-freight quotations.
• The buyer usually books and pays for ocean freight.
• Port, vessel schedule, cut-off time and loading responsibility should be confirmed.

CIF is commonly used for sea freight. The seller pays the freight and basic insurance to the destination port, while the risk usually transfers once the goods are loaded on board.

• Price usually includes cargo value, ocean freight and insurance.
• Import clearance, taxes and destination delivery are usually handled by the buyer.
• Destination charges and customs documents should still be reviewed.

DAP means Delivered at Place. The seller delivers the goods to an agreed place, while import clearance and import taxes are usually handled by the buyer.

• Suitable when the buyer wants the seller to handle more transport steps.
• The exact delivery place must be clearly defined.
• Import clearance responsibility and taxes should be confirmed in advance.

DDP means Delivered Duty Paid. The seller usually takes heavier responsibility, including transport, import clearance, taxes and delivery to the agreed place.

• The seller carries high responsibility and risk.
• Not all countries, products or channels are suitable for DDP.
• Product, duty rate, regulatory conditions and final delivery requirements must be checked before quoting.

FCL means Full Container Load. One customer uses one or more full containers. It is suitable for larger cargo volume, clear loading conditions or shipments that should avoid consolidation.

• Common container types include 20GP, 40GP and 40HQ.
• Costs may include trucking, customs, terminal charges, ocean freight and destination charges.
• Cargo volume, weight, loading method and cut-off time should be confirmed.

LCL means Less than Container Load. Cargo that does not fill a full container is consolidated with cargo from other customers.

• Suitable for smaller shipments.
• Costs are usually calculated by volume or chargeable weight.
• Destination deconsolidation, warehousing, documentation and delivery should be considered.

Air freight usually compares actual weight and volumetric weight, then uses the larger value as chargeable weight. A common volumetric formula is: length × width × height in cm ÷ 6000, subject to airline or forwarder confirmation.

• Light and bulky cargo often uses volumetric weight.
• Dense cargo often uses actual weight.
• Dimensions, pieces, gross weight and packaging should be provided before quotation.

A bill of lading is an important sea-freight transport document. It usually confirms that the carrier has received the cargo and may be related to title, cargo release and settlement.

• Common forms include original B/L, telex release and sea waybill.
• Consignee, notify party, cargo description, packages and weight must be accurate.
• Incorrect B/L information may affect cargo release at destination.

A commercial invoice is a core trade and customs document. It usually includes buyer, seller, product description, quantity, unit price, total value, currency and trade terms.

• Invoice value may affect declaration and customs value review.
• Product descriptions should be specific rather than overly general.
• Invoice, contract, packing list and customs documents should be consistent.

A packing list explains how the cargo is packed, including packages, gross weight, net weight, volume, packing method and marks.

• It supports booking, customs declaration, inspection and destination receiving.
• Weight and volume should be as accurate as possible.
• Multiple SKUs or package types should be listed clearly.

A certificate of origin proves the origin of goods. Under some countries or trade agreements, it may affect duty preference, customs requirements or customer receiving documents.

• Whether it is needed depends on destination country, product and buyer requirements.
• Different types of origin certificates apply to different situations.
• It should be confirmed before shipment.