Export Trade Term Glossary
Essential terminology explained for new exporters. Understand the language of international trade.
International trade has its own language. This glossary covers the essential terms you'll encounter when exporting from New Zealand.
Bill of Lading (BOL)
A legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. It serves as a receipt for the cargo and a contract of carriage.
Example: Your freight forwarder will issue a BOL when your goods are loaded onto the vessel.
Biosecurity
Measures taken to protect a country from the introduction and spread of harmful organisms (pests and diseases). Critical for agricultural exports from New Zealand.
Example: All plant products require biosecurity clearance before export to Australia.
Certificate of Origin (COO)
A document declaring in which country a commodity or good was manufactured. Often required to claim preferential tariff rates under free trade agreements.
Example: A COO is necessary to claim duty-free entry under the NZ-China FTA.
CIF (Cost, Insurance, Freight)
An Incoterm where the seller pays for the cost of goods, insurance, and freight to the destination port. Risk transfers to the buyer once goods are loaded on the vessel.
Example: Under CIF terms, we arrange and pay for shipping and insurance to Shanghai port.
Commercial Invoice
A detailed document listing the goods being shipped, their value, HS codes, and terms of sale. Required for customs clearance in all countries.
Example: Your commercial invoice must include accurate HS codes and product descriptions.
Consignee
The party to whom goods are strictly intended to be delivered. Usually the buyer or their designated agent.
Example: The consignee listed on the BOL must match the import permit holder.
Customs Broker
A licensed professional who assists importers and exporters in meeting customs requirements. They handle documentation, tariff classification, and duty payments.
Example: Our customs broker ensures all paperwork meets MPI and destination country requirements.
Demurrage
Charges incurred for container storage beyond the allowed free time at a port or terminal. Can accumulate quickly and become expensive.
Example: Documentation delays resulted in 5 days of demurrage charges at $150/day.
DDP (Delivered Duty Paid)
An Incoterm where the seller assumes maximum responsibility, delivering goods to the buyer's premises with all duties and taxes paid.
Example: Under DDP terms, we handle all import clearance and deliver to your warehouse door.
Duty Drawback
A refund of duties paid on imported goods that are subsequently exported. Can improve competitiveness for re-export businesses.
Example: You may claim duty drawback on imported components used in exported finished goods.
EORI Number
Economic Operators Registration and Identification number. Required for trading with the UK and EU. Exporters and importers must have separate numbers for each region.
Example: You need both a UK EORI and EU EORI number post-Brexit for shipments to both regions.
Export Declaration
A form submitted to customs authorities declaring goods being exported. Required by Customs NZ for most commercial exports.
Example: Your freight forwarder typically files the export declaration on your behalf.
EXW (Ex Works)
An Incoterm where the buyer takes full responsibility from the seller's warehouse. The seller only needs to make goods available for collection.
Example: Under EXW terms, the buyer arranges all transport, export clearance, and insurance.
FDA (Food and Drug Administration)
The U.S. regulatory agency overseeing food, drugs, and medical devices. Food exporters to the USA must register with the FDA and file Prior Notice.
Example: All food shipments to the USA require FDA Prior Notice at least 2 hours before arrival.
FOB (Free On Board)
An Incoterm where the seller clears goods for export and loads them on the vessel. The buyer pays freight and insurance from that point.
Example: FOB Auckland means we deliver goods to the port and load them; you pay for sea freight.
Freight Forwarder
A company that arranges the shipment of goods on behalf of exporters/importers. They coordinate transport, documentation, and customs clearance.
Example: Your freight forwarder books cargo space and handles shipping documentation.
FTA (Free Trade Agreement)
A treaty between countries to reduce or eliminate tariffs and trade barriers. New Zealand has FTAs with many countries including China, Australia, and the UK.
Example: The NZ-China FTA provides preferential tariff rates for dairy exports to China.
GACC (General Administration of Customs China)
China's customs authority. Food exporters must register their facilities with GACC before shipping to China.
Example: GACC registration is mandatory for all meat and dairy facilities exporting to China.
Harmonized System (HS) Code
A standardised numerical method of classifying traded products. Used worldwide for customs declarations, tariff determination, and trade statistics. The first 6 digits are internationally standardised.
Example: Fresh kiwifruit is classified under HS code 0810.50.
Health Certificate
An official document issued by a government authority (like MPI) certifying that products meet health and safety standards. Required for food and animal product exports.
Example: Meat shipments to China require an MPI-issued health certificate with specific declarations.
Incoterms
International Commercial Terms. Standard trade terms (e.g., FOB, CIF, DDP) published by the International Chamber of Commerce that define the obligations of buyers and sellers in international transactions.
Example: Incoterms 2020 define when risk and costs transfer from seller to buyer.
Import Permit
Authorization required by some countries before goods can be imported. Common for food, agricultural products, and regulated goods.
Example: Your Chinese buyer must obtain an import permit before we can ship dairy products.
Letter of Credit (LC)
A payment instrument issued by a bank guaranteeing payment to the seller if specified documents are presented. Provides security for both buyer and seller in international trade.
Example: We require an LC for first-time buyers to ensure payment is secured before shipment.
Logistics
The coordination of complex operations involving the movement of goods from origin to destination, including transport, warehousing, and documentation.
Example: End-to-end logistics management ensures your goods arrive on time and compliant.
MPI (Ministry for Primary Industries)
New Zealand's government ministry responsible for the regulation of food safety, biosecurity, and primary sector industries. Issues export certificates and oversees compliance.
Example: MPI certification is required for all food and primary product exports from New Zealand.
Packing List
A detailed document listing the contents of each package in a shipment, including weights, dimensions, and package markings. Required for customs clearance.
Example: Your packing list must match the commercial invoice quantities exactly.
Phytosanitary Certificate
An official document certifying that plants or plant products meet the importing country's phytosanitary (plant health) requirements and are free from pests and diseases.
Example: All fresh fruit exports require a phytosanitary certificate issued by MPI.
Proforma Invoice
A preliminary invoice sent before shipment detailing the goods and estimated costs. Used for customs purposes for samples or to obtain import permits.
Example: Send a proforma invoice to your buyer so they can apply for an import license.
Quarantine
The period during which goods are held by authorities to verify they meet biosecurity and health requirements. Can delay shipments if issues are found.
Example: Plant products may be held in quarantine for inspection upon arrival in Australia.
Shipper
The party (usually the seller/exporter) who arranges for goods to be transported. Listed on the Bill of Lading as the consignor.
Example: You are listed as the shipper on all export documents from New Zealand.
SPS (Sanitary and Phytosanitary)
Measures to protect human, animal, or plant life from risks arising from pests, diseases, or contaminants. Critical for food and agricultural exports.
Example: SPS certificates verify your products meet the destination country's health standards.
Tariff
A tax imposed on imported goods. Rates vary by product (HS code) and country. FTAs often provide reduced or zero tariff rates.
Example: Under the CER agreement, most goods from NZ to Australia have zero tariff.
TEU (Twenty-foot Equivalent Unit)
A standard unit for measuring container capacity. One 40-foot container equals 2 TEU.
Example: We can fill a 20-foot container (1 TEU) with approximately 10 pallets.
USDA (U.S. Department of Agriculture)
The U.S. government agency overseeing agricultural products and food safety for meat, poultry, and egg products. Separate from FDA requirements.
Example: Meat exports to the USA require both USDA and FDA clearance.
Can't Find a Term?
This glossary covers the most common export trade terms. If you have questions about specific terminology or need clarification, our team is here to help.