International Trade Vocabulary: 100 Key English Terms
International trade runs on English: quotations, contracts, letters of credit, bills of lading and customs papers are usually written in it, and the same short forms (FOB, L/C, B/L, HS code) are used from Mersin to Rotterdam. This glossary collects the words importers, exporters, forwarders and trade finance staff use every day, with Turkish equivalents, realistic examples and notes on the terms Turkish speakers often mix up.
100 terms
9 topics
46 core terms
201 example sentences
Read, understand, keep going
No account needed. Read the meaning, see where the term is used, then study the examples. Click any word in the lesson for help. You can also select a word and press Alt + Enter.
Import and Export
export
noun
Meaning
The sale of goods or services to buyers in another country; also a product that is sold abroad in this way.
Where you use it
Used all the time in trade, customs and statistics: export sales, export markets, export documents. As a verb (to export) it means to sell abroad. The plural 'exports' often means the total value of goods a country or company sells abroad.
Examples
Exports to Germany grew by 12 percent last year.
We export about 70 percent of our production to Europe and the Middle East.
Can you prepare the export documents for Friday's shipment?
Usage note
Stress changes with the part of speech: the noun is EX-port, the verb is ex-PORT. The same pattern applies to import.
The purchase of goods or services from sellers in another country and bringing them in; also a product that is bought from abroad.
Where you use it
Common in purchasing, customs and economic news: import duties, import permit, import ban. The verb 'to import' is used with 'from': we import steel from Korea. The plural 'imports' refers to the total goods brought into a country.
Examples
Most of our raw materials are imported from China and India.
Imports of machinery fell sharply in the second quarter.
Common phrases
import duties · import from · import ban · import permit · cheap imports
A person or company that sells goods to buyers in other countries and usually handles the export side of the shipment.
Where you use it
Appears in contracts, invoices and L/C texts, where the exporter is often called the seller or the beneficiary. In the news you see phrases like 'leading exporter' or 'textile exporters'.
Examples
As the exporter, we are responsible for export clearance under FCA.
Turkey is one of the largest exporters of hazelnuts in the world.
Common phrases
leading exporter · registered exporter · small exporters · exporter of record
A person or company that buys goods from another country and brings them in, usually paying the import duties and taxes.
Where you use it
Used in contracts, customs and logistics. The importer is usually the consignee on transport documents and the declarant or 'importer of record' at customs. Under DDP the seller takes over many of these duties.
Examples
The importer has to pay VAT and customs duty before the goods are released.
We are looking for an importer in Poland who can also handle distribution.
Common phrases
importer of record · exclusive importer · authorized importer · act as the importer
An official permission from a government that a company needs before it can export certain controlled goods, such as dual-use items, military goods or some chemicals.
Where you use it
Most ordinary goods do not need one, but controlled products, and exports to some destinations under sanctions, do. Companies apply for, obtain or are granted a license.
Examples
These sensors are dual-use goods, so we need an export license before shipping.
The export license was granted after six weeks.
Usage note
British English writes the noun 'licence' and the verb 'license'; American English uses 'license' for both.
Common phrases
apply for an export license · export license requirement · grant an export license · subject to an export license
To find and buy goods or materials from a particular supplier or country, often after comparing several options.
Where you use it
Common in purchasing and supply chain work: 'source from Asia', 'source locally', 'sourcing manager'. The noun 'sourcing' refers to the whole process of finding suppliers. Global brands often talk about their 'sourcing countries'.
Examples
We source most of our cotton from Turkey and Uzbekistan.
The buyer wants to source packaging from a supplier closer to Europe.
Common phrases
source from · source locally · sourcing manager · source raw materials
A company that buys products from a manufacturer or exporter and resells them in a particular market or region, usually holding its own stock.
Where you use it
One of the main routes into a foreign market. A distributor buys the goods and owns them, while a sales agent only finds customers and earns a commission. Contracts often make a company the 'exclusive distributor' for a country.
Examples
We appointed an exclusive distributor for the Gulf countries last year.
Our distributor in Spain keeps three months of stock.
Common phrases
exclusive distributor · appoint a distributor · distribution agreement · local distributor
A written statement from a seller giving the price, quantity, delivery and payment conditions for goods a buyer is interested in.
Where you use it
Sent in reply to an enquiry or an RFQ. You prepare, send, submit, revise or accept a quotation. A quotation normally shows its validity period, the Incoterms rule and the payment terms.
Examples
Please find attached our quotation for 5,000 units, valid until 30 June.
The customer asked us to revise the quotation and quote CIF instead of FOB.
Usage note
'Quote' is the short, informal form used in emails, both as a noun and a verb: 'Can you send me a quote?' In formal documents 'quotation' is more common.
Common phrases
send a quotation · revise a quotation · quotation valid until · firm quotation · price quotation
A preliminary invoice sent before shipment that shows what the final invoice will contain, so the buyer can arrange payment, an import permit or a letter of credit.
Where you use it
Sellers issue a proforma invoice (PI) after the price is agreed. It is not a request for payment in the accounting sense, but buyers often make advance payments against it and banks use it to open an L/C. Also spelled pro forma or pro-forma.
Examples
Could you send us a proforma invoice so we can open the letter of credit?
The proforma invoice shows a 30 percent advance and the balance before loading.
Common phrases
issue a proforma invoice · send a proforma invoice · proforma invoice number · against the proforma invoice
A document a buyer sends to a supplier to order goods officially, listing the items, quantities, prices and delivery terms.
Where you use it
Usually shortened to PO and used as a reference number in all later emails and documents. Buyers issue or place a PO; sellers receive, accept or confirm it. Once accepted, it often works as the sales contract.
Examples
We received the purchase order this morning and will confirm the delivery date today.
Please quote our purchase order number on the commercial invoice.
Common phrases
issue a purchase order · PO number · confirm a purchase order · blanket purchase order
The time between placing an order and receiving the goods, or between the order and the goods being ready for shipment.
Where you use it
Asked in nearly every RFQ: 'What is your lead time?' Sellers usually give it in days or weeks from the order or from receipt of the advance payment. Production lead time and transit time are often quoted separately.
Examples
Our current lead time is six weeks from receipt of the advance payment.
The customer wants us to shorten the lead time to four weeks.
Usage note
Here 'lead' is pronounced /liːd/, like 'need'. The pronunciation /led/ is the metal.
Common phrases
production lead time · shorten the lead time · lead time of six weeks · long lead time
A document or message in which a buyer asks suppliers to give prices and conditions for specific goods, quantities and delivery terms.
Where you use it
Usually shortened to RFQ. Buyers send or issue an RFQ to several suppliers to compare offers, and suppliers respond with a quotation. A similar document, the request for proposal (RFP), asks for solutions rather than just prices.
Examples
We received a request for quotation from a distributor in Romania for 20 tons of pasta.
The deadline for replies to the request for quotation is Friday at noon.
Common phrases
send a request for quotation · respond to a request for quotation · RFQ deadline · issue an RFQ
A document or message from the seller accepting a buyer's order and repeating the agreed products, prices, delivery date and terms.
Where you use it
Sent after a purchase order arrives. Buyers often ask for it in writing ('Please send your order confirmation'), and it is the stage where errors are usually spotted before production starts. Also called an acknowledgement of order.
Examples
Please check our order confirmation and let us know if the delivery address is correct.
The order confirmation shows the wrong colour code for item 3.
Common phrases
send an order confirmation · signed order confirmation · order confirmation number · written order confirmation
The smallest quantity of a product a supplier is willing to sell in one order, often set by production or packaging limits.
Where you use it
Usually shortened to MOQ, especially in emails with manufacturers. Buyers ask about the MOQ, try to lower it or pay a surcharge for smaller runs. It is often stated per item, per colour or per container.
Examples
The minimum order quantity is 1,000 pieces per colour.
Can you accept a lower minimum order quantity for the trial order?
Common phrases
meet the minimum order quantity · lower the minimum order quantity · MOQ per item · minimum order quantity of
The price of one item or one unit of measure, such as a piece, kilo, metre or box, before it is multiplied by the quantity.
Where you use it
Appears as a column on quotations and on proforma and commercial invoices, next to quantity and total amount. It is always shown with a currency and usually an Incoterms rule: 'unit price USD 2.35 FOB'. Buyers often ask for a lower unit price for larger quantities.
Examples
If you order 10,000 pieces, the unit price drops to EUR 1.85.
The unit price on the invoice does not match the proforma.
Usage note
English uses a point for decimals and a comma for thousands (1,850.75); Turkish does the opposite (1.850,75). The difference matters in every price.
Common phrases
unit price per piece · reduce the unit price · unit price and total amount · net unit price
To ask a supplier officially to supply goods, usually by sending a purchase order or accepting a quotation.
Where you use it
The standard way to say 'order' in business English: 'place an order with a supplier for 500 units'. Once an order is placed, it can be confirmed, amended, cancelled or repeated.
Examples
We would like to place an order for 3,000 metres of denim fabric.
If they place the order this week, we can ship by mid-April.
Usage note
Turkish speakers often say 'give an order' or 'make an order'. 'Give an order' sounds like a command; 'place an order' is the natural business phrase.
Common phrases
place an order with · place an order for · place a repeat order · place a trial order
A small quantity or a single piece of a product sent to a buyer so they can check its quality, design or specifications before ordering.
Where you use it
Common in the early stages of business: 'request samples', 'send samples by courier', 'approve a sample'. A 'pre-production sample' or 'shipment sample' is checked later in the order. Samples often travel by express courier, and customs may still ask for their value.
Examples
We sent three samples by courier; please let us know when the buyer approves them.
The bulk production must match the approved sample.
Common phrases
send samples · approve a sample · free sample · sample of no commercial value · pre-production sample
A bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.
Where you use it
Short form L/C or LC; also called a documentary credit. The buyer asks its bank to open or issue the L/C; the seller checks it, may ask for an amendment and later presents the documents. Most L/Cs follow the ICC rules known as UCP 600.
Examples
Our customer has opened an irrevocable letter of credit at sight for USD 240,000.
Check the letter of credit carefully; the latest shipment date is only ten days away.
Usage note
Turkish 'akreditif' is one word, but in English you need the whole phrase or the short form L/C. 'Credit letter' is not used for this.
Common phrases
open a letter of credit · letter of credit at sight · amend a letter of credit · confirmed letter of credit · present documents under a letter of credit
The agreed conditions for paying for goods: how much is paid, when, by what method and through which bank or document.
Where you use it
Stated in quotations, proforma invoices and contracts, for example '30% advance, 70% against copy B/L' or 'L/C at sight'. People negotiate, agree on, offer or extend payment terms.
Examples
Our standard payment terms are 30 percent advance and the balance before shipment.
The new customer is asking for 90-day payment terms on open account.
Common phrases
agree on payment terms · standard payment terms · extend payment terms · 60-day payment terms
Money the buyer pays before the goods are produced or shipped, either the full amount or part of it as a deposit.
Where you use it
Also called cash in advance or prepayment. It is the safest method for the exporter and the riskiest for the importer. Often split: 'a 30% advance payment with the order'. Usually sent by bank transfer (T/T).
Examples
Production will start as soon as we receive the advance payment.
For first orders we ask for a 50 percent advance payment.
Common phrases
receive an advance payment · advance payment guarantee · 30% advance payment · pay in advance
A payment method in which the exporter's bank sends the shipping documents to the buyer's bank, which releases them only when the buyer pays or accepts a bill of exchange.
Where you use it
Cheaper and simpler than a letter of credit, but the banks do not guarantee payment. There are two main forms: D/P (documents against payment) and D/A (documents against acceptance). Most collections follow the ICC rules URC 522.
Examples
We usually work with this customer on documentary collection through their bank in Tunis.
Under documentary collection, the buyer could still refuse the documents.
Common phrases
documentary collection D/P · send documents for collection · collecting bank · documentary collection terms
A payment term in which the buyer pays the bank first and only then receives the original documents needed to collect the goods.
Where you use it
Shortened to CAD; it means the same as D/P (documents against payment) in a documentary collection. Widely used by Turkish exporters. The risk for the exporter is that the buyer does not pay and the goods wait at the destination port.
Examples
The payment term is cash against documents through our bank in Istanbul.
On cash against documents terms, the consignee cannot take the goods before paying.
Common phrases
cash against documents terms · sell on cash against documents · CAD payment · cash against documents at sight
A payment method in which the seller ships the goods and sends the documents directly to the buyer, who pays later on an agreed date.
Where you use it
The most favourable method for the buyer and the riskiest for the seller, so it is used with trusted customers or together with export credit insurance. Usually written as 'open account, 60 days from invoice date'.
Examples
After two years of good business, we moved this customer to open account terms.
Most of our EU sales are on open account, 90 days.
Common phrases
open account terms · sell on open account · open account payment · open account 60 days
An electronic transfer of money from one bank to another, usually through the SWIFT network; in trade it is the normal way to send advance or open-account payments.
Where you use it
Almost always shortened to T/T or TT in quotations and proformas: 'T/T 30% in advance'. The name is historical; no telegraph is used today. Also called a wire transfer (US) or bank transfer. Buyers often send a copy of the SWIFT message as proof of payment.
Examples
Payment: 100 percent by telegraphic transfer before loading.
The buyer sent the telegraphic transfer yesterday; please check the SWIFT copy.
Common phrases
pay by telegraphic transfer · T/T in advance · T/T payment · telegraphic transfer charges
The buyer's bank that opens a letter of credit and gives its own promise to pay if the seller presents complying documents.
Where you use it
One of the key parties in every L/C, also called the opening bank. Under an L/C the seller's main risk is the issuing bank and its country, which is why some sellers ask another bank to confirm the credit.
Examples
The issuing bank is a small local bank we do not know, so we asked for confirmation.
The issuing bank has up to five banking days to examine the documents.
Common phrases
issuing bank's undertaking · opening bank · reimbursement from the issuing bank · issuing bank's country
A bank in the seller's country that checks that a letter of credit appears genuine and passes it on to the seller, without promising to pay.
Where you use it
Usually the seller's own bank or a correspondent of the issuing bank. Sellers often ask the buyer to have the L/C advised 'through our bank', and the advising bank may later also act as the confirming or negotiating bank.
Examples
Please ask your bank to send the L/C through our advising bank in Istanbul.
The advising bank charged USD 150 for advising the credit.
Common phrases
advising bank's charges · advise through · advising bank details · act as advising bank
A bank, usually in the seller's country, that adds its own promise to pay to a letter of credit, so the seller does not depend only on the issuing bank.
Where you use it
Used when the seller is unsure about the issuing bank or its country. The confirming bank charges a confirmation fee, often paid by the seller. An L/C with this extra promise is called a 'confirmed L/C'.
Examples
Our bank agreed to act as confirming bank for a fee of 0.8 percent.
With a confirming bank in Turkey, we get paid even if the issuing bank delays.
Common phrases
act as confirming bank · confirmation fee · add confirmation · confirmed letter of credit
The person or company that will receive the money under a letter of credit, guarantee or bank transfer; in trade it is usually the exporter.
Where you use it
Common in L/C texts ('beneficiary's certificate', 'documents to be presented by the beneficiary') and in payment instructions ('beneficiary name', 'beneficiary bank'). In Turkish banking the usual word is 'lehdar'.
Examples
The beneficiary's name in the L/C is misspelt; please ask for an amendment.
The beneficiary must present the documents within 21 days after shipment.
Common phrases
beneficiary's certificate · beneficiary bank · beneficiary name · second beneficiary
In a letter of credit, the buyer who asks its bank to open the credit in favour of the seller and who will pay the bank in the end.
Where you use it
The standard UCP 600 word for the buyer in an L/C; older texts say 'opener' or 'accountee'. The applicant fills in the L/C application, and amendments are also made at the applicant's request.
Examples
The applicant has asked the issuing bank to extend the expiry date.
Discrepant documents can still be paid if the applicant accepts them.
Usage note
Do not confuse it with a job applicant. In an L/C, the applicant is always the party that asks for the credit, usually the importer.
Common phrases
applicant's bank · at the request of the applicant · applicant's waiver · applicant and beneficiary
A difference between the documents presented and the terms of a letter of credit, or between the documents themselves, that gives the bank a reason to refuse payment.
Where you use it
Banks find, raise or cite discrepancies; the seller may correct them, or the buyer may waive them. Typical examples are a late shipment date, a different goods description or a missing signature. Documents with discrepancies are called 'discrepant documents'.
Examples
The bank found two discrepancies: the invoice amount and the port of loading.
The buyer accepted the discrepancy, so the bank released the payment.
Usage note
In Turkish trade finance a discrepancy is usually called 'rezerv'. Do not translate it as 'reserve', which means something quite different in English.
Common phrases
discrepancy fee · waive a discrepancy · notice of discrepancy · discrepant documents
Describes a promise, such as a letter of credit, that cannot be changed or cancelled without the agreement of all the parties concerned.
Where you use it
Most often heard in 'irrevocable letter of credit' and 'irrevocable payment instruction'. Under UCP 600 every credit is irrevocable even if the word is missing, but many L/C texts still state it.
Examples
We only accept an irrevocable letter of credit confirmed by a first-class bank.
The instruction is irrevocable once the bank has processed it.
Usage note
The stress is on the second syllable: ir-REV-o-ca-ble, not ir-re-VO-ca-ble.
Common phrases
irrevocable letter of credit · irrevocable undertaking · irrevocable payment order · irrevocable and confirmed
Uniform Customs and Practice for Documentary Credits: the ICC rules, in force since 2007, that most banks use for issuing and handling letters of credit.
Where you use it
Most L/C texts say they are 'subject to UCP 600'. It has 39 articles covering the examination of documents, presentation periods and bank obligations. It is used together with ISBP, which explains how banks check documents in practice.
Examples
This credit is subject to UCP 600.
Under UCP 600, documents must be presented no later than 21 days after shipment unless the credit says otherwise.
Common phrases
subject to UCP 600 · under UCP 600 · UCP 600 article · UCP 600 rules
The government authority that controls goods entering and leaving a country, collects duties and taxes and checks that the rules are followed; also the place where this happens.
Where you use it
Always ends in -s. You hear 'go through customs', 'clear customs', 'held at customs' and 'customs officers'. It works like an adjective in many compounds: customs duty, customs declaration, customs broker.
Examples
The container has been held at customs for three days because of a missing certificate.
Our broker says the goods will clear customs tomorrow morning.
Usage note
Do not drop the s: 'custom' means a tradition or something made to order (custom-made). The authority is always 'customs'.
Common phrases
clear customs · held at customs · customs officer · customs authorities · go through customs
A tax charged by a government on imported goods, usually as a percentage of their value; also the official list of these rates.
Where you use it
Common in trade news and policy: 'impose tariffs', 'raise tariffs', 'tariff rate', 'tariff barriers'. In daily customs work, 'duty' is the more usual word for the amount actually paid on a shipment.
Examples
The tariff on imported steel was raised from 10 to 25 percent.
Check the tariff for the correct HS code before you quote the landed cost.
Usage note
In Turkish, 'tarife' also means a price list or a timetable. In trade English, 'tariff' almost always refers to import taxes.
The process of completing all customs formalities and paying any duties so that goods are allowed to leave or enter a country.
Where you use it
Used for both export clearance and import clearance, usually handled by a customs broker or forwarder. Common phrases: 'arrange customs clearance', 'clearance is delayed', 'clearance charges'. The verb is 'clear': the goods cleared customs yesterday.
Examples
Import customs clearance took longer than usual because of a physical inspection.
Under DAP, the buyer is responsible for import customs clearance.
A licensed professional or company that prepares customs declarations and handles clearance on behalf of importers and exporters.
Where you use it
The usual American term; in the UK and Europe 'customs agent' or 'customs representative' is common. Clients send the broker the invoice, packing list and transport document, and the broker files the declaration and reports the duties to be paid.
Examples
Our customs broker needs the HS codes before he can file the declaration.
The customs broker called to say the shipment was selected for inspection.
Usage note
Turkish speakers often translate 'gümrük müşaviri' as 'customs consultant'. It is understood, but foreign partners expect 'customs broker' or 'customs agent'.
Common phrases
licensed customs broker · appoint a customs broker · customs broker fees · through a customs broker
A number that classifies a product in the Harmonized System used by customs worldwide; the first six digits are the same in every country.
Where you use it
Also called tariff code, HS number or commodity code. Countries add extra digits: the EU uses 8-digit CN codes and Turkey uses 12-digit GTİP codes. The HS code decides the duty rate, so buyers often ask for it together with the quotation.
Examples
Can you confirm the HS code for the stainless steel valves?
Customs changed the HS code, and the duty rate went up from 2 to 6.5 percent.
Usage note
The Harmonized System is maintained by the World Customs Organization (WCO). HS is read as letters: aitch-ess.
Common phrases
six-digit HS code · classify under HS code · correct HS code · HS code for
The tax paid to customs on imported goods, calculated from their customs value, their HS code and sometimes their origin.
Where you use it
Often just 'duty' or 'duties'. You pay, calculate or reduce duty, or are exempt from it. Import VAT and excise are separate taxes, though they are often collected at the same time. Phrases: 'duty-free', 'duty paid', 'duty rate'.
Examples
Customs duty on this product is 4 percent, plus 20 percent VAT.
Thanks to the EUR.1, the buyer paid no customs duty.
Common phrases
pay customs duty · customs duty rate · exempt from customs duty · customs duty and VAT
The official form, usually submitted electronically, in which a company tells customs what goods it is importing or exporting, with their value, origin and classification.
Where you use it
Filed or lodged by the declarant or a customs broker. Exporters speak of an 'export declaration' and importers of an 'import declaration'. In the EU the form is based on the Single Administrative Document (SAD).
Examples
The customs declaration was rejected because the invoice value was missing.
Please send us a copy of the export customs declaration for our VAT records.
Common phrases
file a customs declaration · export customs declaration · amend a customs declaration · customs declaration number
An extra import duty charged on goods sold abroad at a price below their normal value, when these imports harm producers in the importing country.
Where you use it
Set after an investigation by the importing country's authorities, under WTO rules. It applies to specific products from specific countries, often with different rates for named producers. Importers check whether their product and its origin fall under an anti-dumping measure.
Examples
An anti-dumping duty of 35 percent applies to these tyres from three countries.
The anti-dumping duty made the product too expensive for our market.
Common phrases
impose an anti-dumping duty · anti-dumping investigation · subject to anti-dumping duty · anti-dumping measures
A limit on the quantity or value of a product that may be imported or exported in a certain period.
Where you use it
Two common types: an absolute quota, which stops imports once the limit is reached, and a tariff quota (tariff-rate quota), which allows a set quantity at a low duty and charges a higher duty above it. Importers follow how much of a quota has already been used.
Examples
The tariff quota for this year was used up in March.
Imports above the quota pay the full duty rate.
Usage note
Not the same word as 'quote' (a price offer), although they look similar.
A warehouse under customs control where imported goods can be stored without paying duties until they are released for sale or sent abroad again.
Where you use it
Used when the importer is not yet ready to pay duties, or when the goods may be re-exported. Customs records every entry and exit. Also called a customs warehouse.
Examples
We will keep the goods in a bonded warehouse until the buyer pays.
The bonded warehouse charges a daily fee per pallet.
Common phrases
store in a bonded warehouse · bonded warehouse fees · release from a bonded warehouse · customs bonded warehouse
A customs procedure that lets a company import materials without paying duties, provided it processes them and exports the finished products.
Where you use it
A term from EU and Turkish customs law. In Turkey it is known as 'dahilde işleme rejimi' (DİR) and requires an authorisation such as an inward processing certificate. The company must export within a set period and show that it used the imported inputs.
Examples
We import the yarn under inward processing, so we pay no duty as long as we export the fabric.
The inward processing authorisation expires next month, so we need to finish the exports.
A refund of customs duties paid on imported goods or materials when they are later exported, either unchanged or as part of a finished product.
Where you use it
Common in US trade and in inward processing systems: the importer first pays the duty and then claims it back after export. It requires records that link each import to an export. Often shortened to 'drawback'.
Examples
We claimed duty drawback on the components used in the exported machines.
The duty drawback claim was approved after customs checked our export records.
An international customs document that lets goods such as trade fair exhibits, commercial samples and professional equipment enter a country temporarily without paying duties.
Where you use it
Issued by chambers of commerce (in Turkey through TOBB and authorised chambers) and usually valid for up to one year. The goods must leave the country again before the carnet expires. Used by exhibitors, film crews and sales teams travelling with samples.
Examples
We are taking the machine to the Hannover fair under an ATA Carnet.
Customs stamped the ATA Carnet when the samples left the country.
Usage note
Carnet comes from French and is pronounced car-NAY; the final t is silent.
Common phrases
apply for an ATA Carnet · ATA Carnet for exhibitions · ATA Carnet voucher · travel with an ATA Carnet
Authorised Economic Operator: a status that customs gives to reliable companies that meet security standards, which then benefit from simpler procedures and fewer inspections.
Where you use it
Based on the World Customs Organization's SAFE Framework and used in the EU, Turkey and many other countries, sometimes with mutual recognition between them. Companies apply, pass an audit and then hold an AEO certificate. US spelling: Authorized.
Examples
As an AEO, we have fewer physical inspections at the border.
Our European customer asked whether we hold AEO status.
Common phrases
AEO status · AEO certificate · apply for AEO · AEO mutual recognition
The value of imported goods that customs uses as the basis for calculating duties, normally the price paid with certain costs added or removed.
Where you use it
Most countries follow the WTO Valuation Agreement, where the main method is the transaction value. In the EU and Turkey, freight and insurance up to the border are included, so a FOB invoice value is adjusted. Royalties and some commissions can also affect it.
Examples
The customs value is the invoice price plus freight and insurance to the border.
Customs questioned the low invoice price and increased the customs value.
Common phrases
determine the customs value · customs value of the goods · transaction value · adjust the customs value
The seller's final bill to the buyer for the goods shipped, showing the description, quantity, price and terms of sale; customs uses it to calculate duties.
Where you use it
One of the core documents in every shipment, together with the packing list and the transport document. Under a letter of credit, the goods description on the invoice must match the L/C exactly. Customs officers check its value, origin and Incoterms rule.
Examples
The commercial invoice and packing list show different gross weights, so customs stopped the container.
Please send the commercial invoice in three originals, signed and stamped.
Common phrases
issue a commercial invoice · signed commercial invoice · invoice value · commercial invoice in triplicate
A document issued by the shipping line that confirms the goods were received or loaded, sets out the terms of carriage and gives the holder the right to collect the cargo.
Where you use it
Short form B/L or BL. It is usually issued in a set of three originals, and a 'to order' B/L can be endorsed and transferred, which makes it a document of title. Common phrases: 'clean on board B/L', 'release the B/L', 'surrender the originals'.
Examples
The bill of lading must show the goods as shipped on board before 15 May.
We cannot release the container until the consignee presents an original bill of lading.
Common phrases
issue a bill of lading · original bill of lading · clean bill of lading · to order bill of lading · endorse a bill of lading
A document that lists what is in each package of a shipment, with quantities, package numbers, dimensions and net and gross weights.
Where you use it
Sent with the commercial invoice. Forwarders use it to plan loading, customs use it during inspection and the buyer uses it to check the goods on arrival. The figures must match the invoice and the transport document.
Examples
According to the packing list, pallet 7 should contain 48 cartons.
Please add the dimensions of each pallet to the packing list.
Common phrases
detailed packing list · packing list and invoice · prepare a packing list · gross weight on the packing list
An official document stating in which country the goods were produced, used by customs to apply the right duty rate and trade rules.
Where you use it
Short form C/O or COO. Usually issued or certified by a chamber of commerce. A general certificate of origin proves non-preferential origin; preferential origin, which can reduce duties, is shown with documents such as the EUR.1 or an origin declaration.
Examples
The buyer needs a certificate of origin legalized by the chamber of commerce.
Without a certificate of origin, customs may apply the higher general rate.
Common phrases
issue a certificate of origin · certificate of origin from the chamber · non-preferential certificate of origin · certificate of origin form
The person or company named on a transport document as the one who will receive the goods at destination.
Where you use it
Appears as a box on bills of lading, air waybills and CMRs. The consignee is often the buyer, but under a letter of credit the B/L may be made out 'to order' or to the order of the issuing bank. The sender is the shipper or consignor.
Examples
The consignee on the bill of lading must be exactly as stated in the letter of credit.
The airline contacted the consignee when the cargo arrived in Dubai.
Usage note
Watch the endings: the consignor sends and the consignee receives, just like employer and employee.
The transport document for goods sent by air, issued by the airline or its agent as a receipt for the cargo and evidence of the contract of carriage.
Where you use it
Shortened to AWB; each one has a unique number used to track the shipment. Unlike a bill of lading, an air waybill is not a document of title, so the consignee named on it can collect the goods without an original. Forwarders issue house air waybills (HAWB) under a master air waybill (MAWB).
Examples
Please send me the air waybill number so I can track the cargo.
The air waybill shows the buyer's bank as consignee, as the L/C requires.
Common phrases
air waybill number · master air waybill · house air waybill · issue an air waybill
A movement certificate that proves the preferential origin of goods so they can enter a partner country at a reduced or zero duty under a trade agreement.
Where you use it
Filled in by the exporter and endorsed by the customs authorities of the exporting country. In trade between Turkey and the EU it is used mainly for agricultural and steel products, while industrial goods move with the A.TR. For small shipments an origin declaration on the invoice can replace it.
Examples
The buyer in Morocco needs an EUR.1 to benefit from zero duty.
Customs refused the EUR.1 because box 8 did not match the invoice.
Common phrases
EUR.1 movement certificate · issue an EUR.1 · endorse an EUR.1 · EUR.1 issued retrospectively
A movement certificate used in trade between Turkey and the EU to show that industrial goods are in free circulation in the customs union, so no customs duty is charged.
Where you use it
Very common in Turkish exports to Europe. An A.TR does not prove origin: goods made in a third country can also travel with an A.TR once they are in free circulation in Turkey or the EU. It does not cover most agricultural products, which need an EUR.1.
Examples
Please send the A.TR with the original invoice so the German importer pays no duty.
Our forwarder asked whether the goods need an A.TR or an EUR.1.
Usage note
Partners outside Europe rarely know this document, because it exists only for the Turkey-EU customs union.
Common phrases
A.TR movement certificate · issue an A.TR · goods in free circulation · A.TR for industrial goods
An official certificate stating that plants or plant products have been inspected and are free from pests and diseases, as required by the importing country.
Where you use it
Needed for fresh fruit and vegetables, seeds, flowers and often for some wooden products. Issued by the plant protection authority of the exporting country, in Turkey the Ministry of Agriculture and Forestry. Animal products need a different document, a health or veterinary certificate.
Examples
The cherries cannot be shipped until the phytosanitary certificate is issued.
The importer wants a copy of the phytosanitary certificate before the cargo arrives.
Usage note
A long word that is easier to say in parts: phy-to-SAN-i-tar-y. 'Phyto' means plant.
Common phrases
issue a phytosanitary certificate · phytosanitary inspection · phytosanitary requirements · original phytosanitary certificate
The person or company named on a bill of lading whom the carrier will inform when the goods arrive, often the buyer or the buyer's customs broker.
Where you use it
Especially important when the consignee is 'to order' or a bank, because the carrier needs a real contact at destination. Under an L/C, the credit usually states exactly what to write in the notify party box.
Examples
Consignee: to order; notify party: the buyer, with full address and phone number.
The notify party did not receive the arrival notice, so the container waited for a week.
Common phrases
notify party details · notify party box · second notify party · as notify party
An instruction from the shipping line to its office at destination to deliver the cargo without original bills of lading, because the originals were surrendered at the port of loading.
Where you use it
Used to save time and courier costs when no bank is involved in the payment. The shipper usually requests it after receiving payment. The name is historical; today the message is sent electronically. A similar option is the sea waybill or express release.
Examples
We received the balance, so please arrange a telex release for the Hamburg container.
The telex release was done, and the consignee picked up the cargo the same day.
Common phrases
arrange a telex release · telex release fee · request a telex release · telex released bill of lading
The international consignment note for goods carried by road, based on the CMR Convention, which also sets out the carrier's liability rules.
Where you use it
The everyday document for truck shipments between Turkey and Europe. It is issued in several copies for the sender, the carrier and the consignee, and the consignee signs it on delivery. Unlike a bill of lading, it is not a document of title.
Examples
Please send us a scan of the CMR signed by the consignee as proof of delivery.
The driver noted on the CMR that two pallets were damaged.
Usage note
CMR comes from the French name of the convention (Convention relative au contrat de transport international de marchandises par route).
A set of standard three-letter trade terms published by the International Chamber of Commerce that show which costs, risks and tasks belong to the seller and which to the buyer.
Where you use it
Written in quotations, contracts and invoices as rule + named place + edition, for example 'FCA Gebze Incoterms 2020'. The 2020 edition has 11 rules. Incoterms do not decide the price, the payment method or when ownership passes.
Examples
Which Incoterms rule are you quoting, FOB or CIF?
The contract refers to DAP Munich, Incoterms 2020.
Usage note
Incoterms is a trademark of the ICC and is written with a capital I. Careful writers say 'an Incoterms rule'; 'an Incoterm' is common in speech.
Common phrases
Incoterms rule · Incoterms 2020 · agree on Incoterms · under Incoterms
Free On Board: an Incoterms rule in which the seller clears the goods for export and delivers them on board the ship at the named port of shipment, where the risk passes to the buyer.
Where you use it
Written with the port of loading: 'FOB Izmir'. The buyer books and pays the main sea freight and insurance. Only for sea and inland waterway transport; for containers handed over at a terminal, the ICC recommends FCA instead, although FOB is still widely used.
Examples
Our price is USD 14.20 per unit FOB Mersin.
Under FOB, the buyer's forwarder books the vessel and we deliver to the port.
Usage note
In the US, 'FOB' is also used in domestic sales with a different meaning (FOB shipping point, FOB destination) that comes from American commercial law, not from Incoterms.
Common phrases
FOB price · FOB port of loading · quote FOB · FOB value
Cost, Insurance and Freight: an Incoterms rule in which the seller pays sea freight and minimum insurance to the destination port, but the risk passes to the buyer once the goods are on board at the port of loading.
Where you use it
Written with the destination port: 'CIF Hamburg'. A common trap is that the seller pays to the destination but the risk passes at origin. Unless agreed otherwise, the insurance under CIF is minimum cover (Institute Cargo Clauses C) for 110 percent of the contract value.
Examples
We can offer EUR 3.40 per kilo CIF Rotterdam.
The goods were damaged at sea, but under CIF the buyer has to claim from the insurer.
Common phrases
CIF price · CIF value · quote CIF · CIF destination port
Ex Works: an Incoterms rule in which the seller only makes the goods available at its own premises; the buyer handles loading, transport, and export and import formalities.
Where you use it
The rule with the least obligation for the seller, written with the place: 'EXW Bursa factory'. Because the seller is not obliged to load the truck or clear the goods for export, many traders use FCA when the buyer cannot handle export clearance in the seller's country.
Examples
The price is EXW our warehouse in Gebze, packed on pallets.
If you buy EXW, your truck must collect the goods from our factory.
Delivered at Place: an Incoterms rule in which the seller delivers the goods to the named destination, ready for unloading, and bears the risk until then; the buyer handles import clearance and duties.
Where you use it
Very common for truck shipments from Turkey to Europe: 'DAP Stuttgart'. The seller arranges and pays the transport but not the unloading or the import formalities. It replaced the older DDU term, which some buyers still use.
Examples
We deliver DAP the customer's warehouse in Lyon, unloading by the buyer.
Under DAP, the buyer pays the import VAT and duties when the truck arrives.
Delivered Duty Paid: an Incoterms rule in which the seller delivers the goods to the named place in the buyer's country, cleared for import and with all duties and taxes paid.
Where you use it
The rule with the most obligation for the seller, the opposite of EXW. It is used when the buyer wants a door-to-door price. The seller must be able to act as importer in the buyer's country and deal with import VAT there, which is not always possible.
Examples
The customer wants a DDP price delivered to their store in Amsterdam.
Under DDP, any delay at import customs is our problem, not the buyer's.
Free Carrier: an Incoterms rule in which the seller clears the goods for export and hands them to the buyer's carrier at a named place, where the risk passes to the buyer.
Where you use it
Works for all transport modes and is recommended by the ICC for containers instead of FOB. If delivery is at the seller's premises, the seller also loads the truck. Incoterms 2020 lets the parties agree that the buyer's carrier will issue an on-board bill of lading to the seller.
Examples
We sell FCA our factory, loaded on the buyer's truck.
Since we use letters of credit, we asked for FCA with an on-board bill of lading.
Cost and Freight: an Incoterms rule in which the seller pays the sea freight to the destination port, but the risk passes to the buyer when the goods are on board at the port of loading.
Where you use it
Like CIF but without insurance, so the buyer usually insures the cargo. Written with the destination port: 'CFR Alexandria'. The old forms C&F and CNF still appear in emails but are not official Incoterms abbreviations.
Examples
We quote CFR Jebel Ali; the buyer will arrange insurance locally.
Under CFR, the risk passed to the buyer when the containers were loaded in Mersin.
Carriage Paid To: an Incoterms rule in which the seller pays transport to the named destination, but the risk passes to the buyer when the goods are handed to the first carrier.
Where you use it
The all-modes version of CFR, used for air, road, rail and container shipments: 'CPT Frankfurt Airport'. As with all C rules, the place where the seller's costs end is different from the place where the risk passes.
Examples
We ship CPT Milan by truck, with insurance arranged by the buyer.
Under CPT, the risk was already with the buyer when the truck crashed in Bulgaria.
Carriage and Insurance Paid To: an Incoterms rule like CPT, except that the seller also buys cargo insurance for the buyer up to the named destination.
Where you use it
Used for all transport modes, especially air freight and container shipments. Since Incoterms 2020, CIP requires a high level of insurance cover (Institute Cargo Clauses A, all risks), while CIF still requires only minimum cover.
Examples
The L/C asks for CIP Nairobi Airport and insurance for 110 percent of the invoice value.
Our insurer confirmed that the CIP policy covers all risks.
Delivered at Place Unloaded: an Incoterms rule in which the seller delivers the goods to the named destination and also unloads them there, bearing the risk until unloading is complete.
Where you use it
Introduced in Incoterms 2020 to replace DAT (Delivered at Terminal). It is the only rule in which the seller must unload at destination. Import clearance and duties stay with the buyer.
Examples
We agreed on DPU the customer's site, so our crane team will unload the machine.
Is unloading included, or is it DAP instead of DPU?
A company that organizes the transport of goods for exporters and importers, booking space with carriers and often handling documents, insurance and customs.
Where you use it
Often just called a 'forwarder'. A forwarder usually does not own ships or planes; it buys space from carriers and may issue its own house bill of lading. You ask a forwarder for a freight quote, book a shipment through them and track the cargo with them.
Examples
Our freight forwarder found space on a vessel leaving Mersin on Thursday.
Ask the freight forwarder for an all-in rate including local charges.
Common phrases
appoint a freight forwarder · freight forwarder's quote · nominated freight forwarder · work with a freight forwarder
A quantity of goods sent together from one place to another, or the act of sending them.
Where you use it
One of the most frequent words in trade emails: 'the shipment left', 'the shipment is delayed', 'date of shipment'. In letters of credit, 'shipment' usually means loading on board or dispatch, and the 'latest shipment date' is a key deadline.
Examples
The next shipment will leave the factory on Monday.
We need the shipment in Antwerp before the end of the month.
Usage note
'Consignment' is a close synonym in British English. It does not mean the Turkish 'konsinye' (goods on sale-or-return) unless the context makes that clear.
Common phrases
latest shipment date · track a shipment · delayed shipment · ready for shipment
The party that sends goods and hands them to the carrier; on a bill of lading it is usually the exporter or seller.
Where you use it
Used on transport documents and by carriers: 'shipper's details', 'shipper's load and count'. In American English, 'shipper' can also mean any company that sends goods, or even a transport company, so the context decides the meaning.
Examples
The shipper must declare the correct gross weight of the container.
Who should appear as the shipper on the bill of lading, us or the forwarder?
Common phrases
shipper's details · shipper's load and count · known shipper · shipper's declaration
A large metal box of standard size used to carry goods by ship, rail and truck without unloading the cargo when the transport mode changes.
Where you use it
The common sizes are 20-foot and 40-foot, plus the 40-foot high cube (40HC). Capacity is measured in TEU (twenty-foot equivalent units). People book, stuff or load, seal and release containers.
Examples
We need two 40-foot containers for the order, loading on 12 March.
The container was sealed in front of the customs officer.
Common phrases
20-foot container · 40HC container · container seal · load a container · reefer container
Goods carried by ship, plane, truck or train; also the charge paid for carrying them.
Where you use it
In trade it most often means the transport cost: 'freight rate', 'freight prepaid', 'freight collect'. 'Ocean freight' and 'air freight' refer to the mode. It is usually uncountable: say 'the freight is high', not 'the freights are high'.
Examples
Freight rates from Asia to Europe have dropped since last month.
The bill of lading is marked 'freight prepaid' because we sold on CFR terms.
Usage note
Pronounced like 'eight' with fr- in front: /freɪt/. The gh is silent.
The port where the goods are loaded onto the vessel at the start of the sea journey; shortened to POL.
Where you use it
A standard box on bills of lading and a key detail in L/Cs and Incoterms: FOB and FAS are written with the port of loading, while CFR and CIF are written with the destination port. Shortened to POL in booking and freight emails.
Examples
The port of loading in the L/C is Mersin, so we cannot ship from Iskenderun.
Freight quote, please: port of loading Ambarli, port of discharge Valencia, one 40HC.
Common phrases
port of loading and discharge · named port of loading · change the port of loading · POL
The port where the goods are unloaded from the vessel at the end of the sea journey; shortened to POD.
Where you use it
Appears on bills of lading next to the port of loading. It may differ from the final destination if the goods continue by truck or rail. In freight emails 'POD' can also mean proof of delivery, so the context matters.
Examples
The port of discharge is Koper, and the goods will go on to Vienna by train.
Demurrage at the port of discharge is for the consignee's account.
Common phrases
final port of discharge · arrival at the port of discharge · change the port of discharge · POD
Full Container Load: a shipment in which one shipper uses a whole container, so the container is not shared with other cargo.
Where you use it
Used when booking sea freight: 'FCL rate', 'FCL shipment', '2 x 40HC FCL'. For larger volumes FCL is usually cheaper per unit and safer than LCL. The container is often loaded and sealed at the shipper's site.
Examples
The order is big enough for an FCL shipment.
Please quote FCL and LCL rates to Durban so we can compare.
Less than Container Load: a small shipment that shares a container with other shippers' cargo, usually charged by volume or weight.
Where you use it
Common for samples, trial orders and small buyers. A forwarder consolidates LCL cargo at a warehouse (CFS) and charges per cubic metre (CBM). Transit is usually longer than FCL because of consolidation and deconsolidation.
Examples
Three pallets are too small for a full container, so we will send them LCL.
The LCL rate is USD 45 per cubic metre plus local charges.
A charge the shipping line makes when a container, or a ship, stays in the port longer than the free time allowed.
Where you use it
A daily charge that grows the longer the container waits, often because of missing documents or slow customs clearance. It is often confused with detention, which is charged when the container is kept outside the port. Importers negotiate 'free time' to keep it low.
Examples
We paid four days of demurrage because the original bill of lading arrived late.
The line gives us 14 free days before demurrage starts.
Usage note
Pronounced di-MUR-ij. In container shipping, demurrage is usually for time inside the port and detention for time outside it, but each shipping line defines the terms in its own tariff.
Common phrases
demurrage charges · free time before demurrage · pay demurrage · demurrage and detention
Insurance that covers goods against loss or damage while they are being transported by sea, air, road or rail.
Where you use it
Who buys it depends on the Incoterms rule: the seller under CIF and CIP, usually the buyer under FOB, CFR and FCA. Policies are based on clauses such as Institute Cargo Clauses A, B or C, and the cover is often 110 percent of the invoice value.
Examples
We arrange cargo insurance for every shipment, even when the buyer does not ask for it.
According to the L/C, the cargo insurance must cover 110 percent of the CIF value.
Common phrases
take out cargo insurance · cargo insurance policy · cargo insurance certificate · all-risks cargo insurance
The unloading of goods from one ship or vehicle and reloading them onto another during the journey to the final destination.
Where you use it
Common in container shipping through hub ports such as Piraeus, Valencia or Singapore. L/Cs often state 'transshipment allowed' or 'transshipment prohibited'. It usually adds time and some risk of delay or damage. Also spelled transhipment.
Examples
The vessel goes via Piraeus, so there will be a transshipment there.
The L/C says transshipment is prohibited, but there is no direct service to that port.
Common phrases
transshipment allowed · transshipment prohibited · transshipment port · direct service without transshipment
The sending of an order in two or more lots, on different dates or vehicles, instead of all at once.
Where you use it
A standard L/C field: 'partial shipments allowed' or 'not allowed'. Under UCP 600 partial shipments are allowed unless the credit says otherwise. Sellers use them when part of an order is ready earlier than the rest.
Examples
Partial shipments are allowed, so we will send the first 60 percent next week.
The customer refused a partial shipment and wants the full order in one container.
Common phrases
partial shipments allowed · partial shipments prohibited · make a partial shipment · first partial shipment
Estimated Time of Arrival: the date and time when a ship, plane, truck or shipment is expected to arrive.
Where you use it
Used constantly in logistics emails and tracking systems, together with ETD (estimated time of departure). People ask 'What is the ETA?' and report that the ETA has changed or slipped. It is read as letters: E-T-A.
Examples
The ETA at Hamburg is 18 May, but the vessel may be two days late.
Can you send me the ETD and ETA for the next sailing?
Common phrases
ETA at port · revised ETA · ETA and ETD · confirm the ETA
An agreement between two or more countries to remove or reduce customs duties and other barriers on most of the goods traded between them.
Where you use it
Shortened to FTA. Each member keeps its own tariffs towards non-members, which is the main difference from a customs union. To benefit, goods must meet the agreement's rules of origin and travel with proof of origin such as an EUR.1 or an origin declaration.
Examples
Thanks to the free trade agreement, our products enter South Korea duty-free.
Check whether the free trade agreement also covers agricultural products.
Common phrases
sign a free trade agreement · under the free trade agreement · free trade agreement partner · benefit from a free trade agreement
An agreement in which member countries remove customs duties between themselves and apply the same common tariff to imports from outside.
Where you use it
The key difference from a free trade agreement is the common external tariff. Turkey and the EU have a customs union that covers industrial goods and processed agricultural products, which is why A.TR certificates are used between them.
Examples
Within the customs union, a machine made in Bursa can enter France without customs duty.
Most agricultural products are outside the customs union between Turkey and the EU.
Common phrases
customs union with the EU · common external tariff · member of the customs union · customs union rules
The criteria used to decide which country a product comes from, especially when it contains materials or work from several countries.
Where you use it
Each free trade agreement has its own rules of origin, often based on a change of HS heading, a maximum share of foreign materials or a specific processing step. Exporters check them before issuing an EUR.1 or an origin declaration.
Examples
Under the rules of origin, the fabric must be woven in the region for the shirts to qualify.
Our export manager is checking whether the product meets the rules of origin.
Common phrases
meet the rules of origin · preferential rules of origin · rules of origin under the FTA · comply with rules of origin
A lower customs duty rate, sometimes zero, given to goods from certain countries under a trade agreement or a development programme.
Where you use it
Used by customs officers and trade advisers: 'qualify for a preferential tariff', 'preferential treatment', 'claim preference'. Goods must meet the rules of origin and travel with valid proof of origin; otherwise the normal MFN rate applies.
Examples
With an EUR.1, the goods qualify for a preferential tariff of zero percent.
The importer lost the preferential tariff because the proof of origin was invalid.
Common phrases
preferential tariff rate · qualify for a preferential tariff · preferential treatment · claim a preferential tariff
An official order that stops or restricts trade with a particular country, or trade in particular goods.
Where you use it
Imposed by a government or an international body, and later lifted. An arms embargo covers only weapons, while a full trade embargo covers most trade. Companies check embargo and sanctions lists before accepting orders for some destinations.
Examples
Because of the embargo, the bank refused to process the payment.
The embargo on these products was lifted after three years.
Common phrases
impose an embargo · lift an embargo · arms embargo · trade embargo · under embargo
World Trade Organization: the international organization based in Geneva that sets the rules for trade between its member countries and helps settle trade disputes.
Where you use it
Founded in 1995 as the successor to the GATT system. Its rules cover tariffs, customs valuation, anti-dumping, technical barriers and more. In the news you read about WTO rules, WTO members and WTO disputes.
Examples
Under WTO rules, a member should not charge more than its bound tariff rate.
The case was taken to the WTO dispute settlement body.
A WTO principle that a country must give all other members the same tariff and trade treatment it gives to its most favoured trading partner.
Where you use it
Shortened to MFN. The 'MFN rate' is the normal duty rate a country charges WTO members when no preference applies. Free trade agreements and customs unions are allowed exceptions. US spelling: most-favored nation.
Examples
Without an EUR.1, the goods pay the most-favoured nation rate of 8 percent.
Most-favoured nation treatment means equal treatment, not special treatment.
Usage note
The name is misleading: MFN does not give one country special benefits; it means every member gets the same treatment as the best-treated one.
Any obstacle to imports other than customs duties, such as quotas, licensing rules, technical standards or complicated paperwork.
Where you use it
Used in trade policy, market studies and export planning: 'face non-tariff barriers', 'remove non-tariff barriers'. Shortened to NTB. Some, such as safety and health rules, have legitimate aims, but they still add cost and time for exporters.
Examples
Duties are low in that market, but non-tariff barriers such as certification make entry difficult.
The report lists labelling rules as the main non-tariff barrier for food exporters.
Common phrases
face non-tariff barriers · remove non-tariff barriers · technical barriers to trade · non-tariff measures
The amount by which the value of a country's imports is greater than the value of its exports over a certain period.
Where you use it
A standard term in economic news and statistics, usually announced every month. The opposite is a trade surplus, and both are described by the balance of trade. People say the deficit widened or narrowed.
Examples
The trade deficit narrowed in June as energy imports fell.
Exports grew faster than imports, so the trade deficit fell for the third month in a row.
Common phrases
widening trade deficit · the trade deficit narrowed · trade deficit with · trade surplus
The price of one currency expressed in another, for example how many Turkish lira you need to buy one euro.
Where you use it
Central to pricing, invoicing and accounting in trade. People talk about rates rising, falling or being volatile, and about the buying and selling rate. Contracts sometimes state which exchange rate will be used and on which date.
Examples
The exchange rate moved by almost 4 percent between the order and the payment.
Which exchange rate should we use to convert the invoice into lira?
Money in the currency of another country, such as US dollars or euros for a company based in Turkey.
Where you use it
Used in banking, accounting and contracts: 'foreign currency account', 'invoice in foreign currency', 'foreign currency earnings'. In speech people often say 'FX' or simply name the currency.
Examples
All our export sales are invoiced in foreign currency, mainly euros.
The export proceeds were credited to our foreign currency account.
Usage note
Turkish 'döviz' has no single-word English match. 'Foreign exchange' (FX) is the market or the activity; 'foreign currency' is the money itself.
To reduce the risk of losing money from future price or exchange-rate changes, for example by fixing today the rate for a payment that will arrive later.
Where you use it
Used by finance teams and banks: 'hedge currency risk', 'hedge our euro receivables', 'hedge with a forward contract'. The noun is also 'hedge', and the activity is called 'hedging'.
Examples
We hedge about half of our expected dollar income for the next six months.
The company had not hedged, so the fall in the euro hit its margins.
Common phrases
hedge currency risk · hedge against · hedge with forwards · hedging strategy
An agreement with a bank to buy or sell a set amount of foreign currency on a future date at an exchange rate fixed today.
Where you use it
The most common hedging tool for exporters and importers, often just called 'a forward'. The forward rate is not a forecast; it is calculated from the spot rate and the interest-rate difference between the two currencies.
Examples
We signed a forward contract to sell EUR 500,000 in March at a fixed rate.
The bank offered a three-month forward contract for our dollar payment.
Common phrases
enter into a forward contract · forward rate · three-month forward contract · close out a forward contract
The risk that a change in exchange rates will reduce the value of money you will receive, or raise the cost of money you will pay, in another currency.
Where you use it
Also called exchange rate risk or FX risk. It arises whenever sales or purchases are priced in one currency and costs are in another, and it lasts from the order until payment. Companies manage it through the choice of invoicing currency, natural hedging or forward contracts.
Examples
Because our costs are in lira and our sales in euros, currency risk is a major issue for us.
If we invoice in the customer's currency, we carry the currency risk; if we invoice in ours, they do.
The exchange rate for buying or selling a currency for immediate delivery, which for most currencies means settlement within two business days.
Where you use it
The rate you see on screens and in the news. Banks quote a buying (bid) and a selling (ask) spot rate, and forward rates are calculated from it. In trade emails people may say 'today's rate' or 'the market rate' for the same thing.
Examples
We converted the payment at the spot rate on the day it arrived.
The forward rate was slightly higher than the spot rate.
Common phrases
current spot rate · at the spot rate · spot rate and forward rate · EUR/USD spot rate
A fall in the value of a currency against other currencies, so that more of it is needed to buy the same amount of foreign money.
Where you use it
Used in market news and company reports: 'the depreciation of the lira against the euro'. Depreciation makes a country's exports cheaper abroad and its imports more expensive. The opposite is appreciation; an official cut in a fixed exchange rate is called devaluation.
Examples
The depreciation of the local currency made our products more competitive abroad.
Importers raised their prices after a 10 percent depreciation in three months.
Usage note
In accounting, depreciation means the gradual reduction in the book value of an asset (amortisman). The context shows which meaning is used.
Common phrases
currency depreciation · depreciation against the dollar · sharp depreciation · depreciation of the lira
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn international trade vocabulary
Learn the short forms together with their full names: L/C (letter of credit), B/L (bill of lading), AWB (air waybill), PO (purchase order), POL and POD (port of loading and port of discharge). Emails and documents use the short forms almost all the time.
Read real trade documents every week, such as proforma invoices, bills of lading, L/C texts and customs declarations, and notice which words appear in which box.
Study the Incoterms rules as a set: for each one, ask who pays the main freight, who buys the insurance and where the risk passes to the buyer.
Learn verbs with the words they go with: place an order, open a letter of credit, clear customs, issue a bill of lading, hedge currency risk. These ready-made phrases make your emails sound natural.
Keep a list of words that work differently in Turkish, such as tariff and 'tarife', customs and custom, consignment and 'konsinye', discrepancy and 'rezerv', and check it before you write to a foreign partner.
Frequently asked questions
Which international trade terms should I learn first?
Start with the steps and papers of a single shipment: quotation, proforma invoice, purchase order, commercial invoice, packing list, bill of lading, certificate of origin and customs clearance. Then learn the most used Incoterms rules (EXW, FCA, FOB, CIF, DAP, DDP) and the main payment methods (advance payment, letter of credit, cash against documents, open account). The first tier of this list covers exactly these.
What is the difference between a proforma invoice and a commercial invoice?
A proforma invoice is issued before shipment. It shows what the final invoice will look like, and the buyer uses it to make an advance payment, apply for an import permit or open a letter of credit. A commercial invoice is issued when the goods are shipped; it is the real bill, and customs uses it to work out the value of the goods and the duties.
What are Incoterms in simple words?
Incoterms are eleven three-letter rules published by the International Chamber of Commerce. Each rule says where the seller delivers the goods, where the risk passes to the buyer, who pays which transport costs and who handles export and import clearance. They do not set the price, the payment method or when ownership passes. They are written as rule, place and edition, for example 'FCA Gebze Incoterms 2020'.
Do Turkish trade professionals use the English terms or Turkish ones?
Both. Many English words are used as they are, such as forwarder, notify, telex release, FCL and ETA, while banking and customs have long-established Turkish terms: akreditif (letter of credit), konşimento (bill of lading), vesaik mukabili (cash against documents), mal mukabili (open account), gümrük müşaviri (customs broker), GTİP (HS code) and rezerv (discrepancy). Knowing both sides helps you follow meetings in Turkey and write correctly to foreign partners.
