BCD — Basic Customs Duty

A principal customs duty applicable to many imports into India.

CBM — Cubic Metre

A measure of shipment volume. 1 CBM means a space of 1 m × 1 m × 1 m.

CFR — Cost and Freight

The supplier pays the main sea freight to the destination port, but insurance is not necessarily included.

Chargeable Weight

The weight used to calculate air/courier freight. Usually the higher of actual gross weight and volumetric weight.

CIF — Cost, Insurance and Freight

The supplier quotation normally includes the goods, main sea freight and insurance to the destination port. Import duty, clearance and local delivery usually remain separate.

CIF Value

The customs value made up broadly of goods value, insurance and freight.

Customs Broker

A specialist or company that helps prepare and process customs declarations and clearance.

Customs Clearance

The process of submitting documents, paying applicable duties/taxes and obtaining customs release for imported goods.

Customs Duty

Tax imposed by customs when goods are imported.

DAP — Delivered At Place

The seller arranges delivery to the agreed destination, but import duties and taxes are normally the buyer's responsibility.

DDP — Delivered Duty Paid

The seller normally handles delivery and import clearance including duties/taxes. Check carefully before adding those costs again.

Delivered-to-Project Cost

The estimated cost after also adding final transport and selected site/project delivery charges.

Demurrage

Charges that may apply when cargo or a container remains at a port or terminal beyond the permitted free period.

EXW — Ex Works

The supplier makes the goods available at their premises. The buyer normally arranges most transport and import costs from there.

FCL — Full Container Load

A shipment using a complete container, commonly 20 ft, 40 ft or 40 ft High Cube.

FOB — Free On Board

For sea freight, the supplier normally handles the goods up to loading on the vessel. The buyer then manages the main freight and destination side.

Freight Forwarder

A logistics company that arranges transportation and related shipment services on behalf of the buyer or seller.

Gross Weight

Actual shipment weight including the goods and their packaging.

HS Code — Harmonized System Code

International customs classification used to identify goods and determine applicable duties or restrictions.

IGST — Integrated Goods and Services Tax

Indian GST applied to imports using the applicable product tax rate.

Landed Cost

The cost of imported goods after adding freight, insurance, customs, taxes and other relevant import charges.

LCL — Less than Container Load

A sea shipment that shares a container with other cargo. Charges are commonly influenced by shipment volume in CBM.

SWS — Social Welfare Surcharge

An Indian import surcharge generally calculated on the applicable Basic Customs Duty.

VAT — Value Added Tax

Consumption tax that may be charged when goods are imported or sold.

Volumetric Weight

A calculated weight based on shipment dimensions. Used mainly for air and courier pricing.

Still unsure? Your freight forwarder or customs broker can confirm the exact terms used in your quotation.