B2B Logistics & Customs Glossary

An ocean freight method where an importer or exporter rents a whole 20-foot or 40-foot shipping container exclusively for their cargo.

FCL shipping ensures that your goods do not share space with other shippers, reducing contamination risk, transit handling, and customs delays at the port of discharge. It is the most cost-effective method for high-volume shipments.

An ocean freight shipment mode where multiple shippers share container space, paying only for the volumetric space their cargo occupies.

LCL allows businesses to transport smaller cargo volumes without paying for a full container. The forwarder consolidates multiple shipments at an Inland Container Depot (ICD) and de-consolidates them at the port of destination.

A licensed entity authorized by the Commissioner of Customs to act as an agent for handling business transactions and clearances at Customs stations.

CHAs are regulated by the Customs House Agents Licensing Regulations. They prepare and file import Bills of Entry, export Shipping Bills, handle cargo evaluation, calculate duties, and represent clients during physical customs inspections.

An authorized corporate agent who handles document submission, compliance checks, and logistical clearing operations with customs authorities on behalf of importers and exporters.

While similar to a CHA, a customs broker focuses extensively on tariff classification, SVB disputes, anti-dumping checks, and PGA regulatory coordination (like FSSAI, BIS, and CDSCO).

An online portal implemented by Indian Customs (CBIC) that enables paperless uploading of supporting documents for import and export clearances.

Through e-Sanchit, documents like invoice, packing list, and certificates of origin are digitally signed and uploaded to ICEGATE. The system generates a unique Image Reference Number (IRN) used to process customs bills.

The primary digital portal of the Central Board of Indirect Taxes and Customs (CBIC) that facilitates electronic data interchange (EDI) filings and customs duty e-payments.

ICEGATE provides electronic filing services for Bills of Entry and Shipping Bills, tracks cargo clearance statuses, updates IGST refund checks, and integrates with allied government departments via the SWIFT portal.

A CBIC scheme allowing businesses to import capital goods and raw materials duty-free for assembly or manufacturing operations inside a customs bonded warehouse.

Under the MOOWR scheme, customs duties and GST are deferred until the finished products are cleared for domestic sale (Ex-Bond). If the finished goods are exported, the deferred duties are waived entirely, boosting company cash flows.

A voluntary certification program that recognizes global trade businesses complying with international security standards and customs norms.

Designed under the World Customs Organization (WCO) SAFE Framework, AEO certification grants tier-based benefits (AEO T1, T2, T3) such as faster clearance queues, deferred duty payment facilities, and minimal cargo inspections.

A legal document filed by an importer or customs broker on ICEGATE declaring the description, quantity, value, and HSN classification of imported cargo.

Filing a Bill of Entry is a legal requirement for getting customs clearance. It determines the assessable value of the imported items and computes the customs duties and taxes payable to the government.

A mandatory customs document filed by exporters to declare the details of cargo being shipped outside India's borders.

Exporters file the Shipping Bill via ICEGATE to secure a Let Export Order (LEO) from customs officers, which authorizes the carrier to load the cargo. It is also required to claim export benefits like RoDTEP.

A storage penalty fee charged by port or airport terminal operators when a container or cargo remains inside the terminal past the designated free days.

Demurrage is designed to prevent congestion at port and airport terminals. Free days typically range from 2 to 5 days, after which daily penal charges compound, making rapid customs clearance essential.

A fee charged by shipping lines to cargo owners for holding containers outside the port terminal past the agreed free time.

Unlike demurrage which is paid to the port authority, container detention is paid to the shipping line for delaying the return of their empty container equipment to the depot.

An internationally standardized numerical method of classifying commercial products for tariff structures and import-export regulations.

Developed by the World Customs Organization, HSN codes categorize goods using an 8-digit system in India. Correct HSN classification is vital to ensure proper Basic Customs Duty and IGST assessments.

Outsourcing inventory warehousing, product packaging, picking, and regional distribution operations to an external logistics provider.

A 3PL provider manages the entire supply chain footprint, combining warehousing, labor, and domestic transportation networks to lower client operational overheads and improve transit speeds.

A software application built to manage, track, and optimize inventory storage, picking paths, and inbound/outbound logistics in real-time.

A modern WMS ensures real-time stock levels, prints barcode labels, routes orders to pickers, manages FIFO stock rotation, and integrates with company ERP platforms (like SAP or Oracle).

A non-negotiable transport document issued by an airline carrier acting as a receipt of cargo and a contract of carriage.

The Airway Bill contains shipment details (origin, destination, weight, dimensions) and is tracked via a unique 11-digit prefix. It is required to clear air freight at IGI Airport.

A legally binding transport document issued by a shipping line detailing ocean cargo description, weight, and destination.

The Bill of Lading serves as a document of title to the goods, a receipt of shipment, and a contract of ocean carriage. It must be surrendered to release sea cargo at the port of discharge.