Trade Glossary: Shipping and Import Terms

Short, plain English explanations of the terms you meet on trade documents and freight quotes, each with a real example.

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Bill of Lading (B/L) MeaningB/L (or BOL) stands for bill of lading: the document a carrier issues for goods it has received for shipment. It is a receipt, the contract of carriage, and often the title to the goods.Consignee MeaningThe consignee is the person or company a shipment is sent to and who is entitled to take delivery at the destination. It is often the buyer, but not always.Air Waybill (AWB) MeaningAWB stands for air waybill: the non negotiable transport document for air cargo. It is the carrier's receipt and the contract of carriage, and its 11 digit number is used to track the shipment.HS Code MeaningAn HS code is the internationally agreed number that classifies a product for customs. The first 6 digits are the same in almost every country; countries add more digits for their own duty rates.PO Number MeaningA PO number is the unique reference a buyer assigns to a purchase order. Suppliers quote it on their invoice and shipping documents so the buyer can match and pay them.Landed Cost MeaningLanded cost is everything it costs to get imported goods to your warehouse: the product price plus freight, insurance, customs duty, taxes you cannot reclaim, fees and local delivery.Proforma vs Commercial InvoiceA proforma invoice is a preliminary quote sent before goods are shipped. A commercial invoice is the final bill for goods actually sold and shipped, and the main document customs use to assess duty.Purchase Order vs InvoiceA purchase order is sent by the buyer to order goods at agreed prices. An invoice is sent by the seller after delivery to ask for payment. The PO number links the two.

How to use this glossary

Each entry answers the question in its first sentence, then shows where the term appears on real documents and how it is used in practice. For the rules on who pays for freight, insurance and customs, see the Incoterms 2020 guide; for volume and weight, the shipping calculators.

Terms by document

Document	Terms you will meet
Bill of lading	B/L, consignee, shipper, notify party
Air waybill	AWB, consignee, chargeable weight
Commercial invoice	HS code, Incoterm, PO number
Costing and pricing	Landed cost, markup, margin
Comparisons	Proforma vs commercial invoice, purchase order vs invoice

Tools in Trade Glossary

How to use this glossary

Terms by document

Tools in Trade Glossary

How to use this glossary

Terms by document