Plain-English Definitions

Logistics &
Trade Glossary

Every freight, customs, and sourcing term importers actually need. No filler, no marketing language. Each entry is what a trade desk operator would tell you on the phone.

ABCDEFHILMNOPSTU

A

AQLAcceptable Quality Limit

A statistical quality-control standard (ISO 2859-1) that defines the maximum number of defective units acceptable in a production batch. AQL 2.5 is the most common standard for general merchandise. AQL 1.0 is stricter (lower defect tolerance), AQL 4.0 is looser. Used by inspectors during pre-shipment quality control to determine pass/fail. More in our sourcing guide →

AMSAutomated Manifest System

CBP's electronic cargo manifest filing system. Carriers must file the manifest 24 hours before cargo is loaded for sea freight, 4 hours before arrival for air. The AMS filing is the carrier's responsibility, separate from the ISF the importer files.

B

BAABuy American Act

Federal procurement law requiring the US government to give preference to domestically produced goods. Applies to most federal contracts above $10,000. Triggers a complex country-of-origin compliance review for any imported component. Not the same as Berry Amendment (textiles/clothing for DoD).

B/L or BOLBill of Lading

The legal document issued by a carrier (or NVOCC) acknowledging receipt of cargo and serving as the contract of carriage. Three functions: receipt of goods, contract of carriage, document of title. Master B/L is issued by the vessel operator, House B/L is issued by the NVOCC.

C

CAGE CodeCommercial and Government Entity Code

A 5-character alphanumeric identifier assigned by the Defense Logistics Agency to any business that wants to work with the US government. Required for SAM.gov registration. Syqora Group's CAGE code is 16BS4.

CBMCubic Meter

Volume measurement used in ocean freight pricing, especially for LCL. 1 CBM = 35.31 cubic feet. A standard 20ft container holds about 28 CBM usable space; a 40ft holds about 58 CBM.

CBPUS Customs and Border Protection

The federal agency that enforces customs, immigration, and agriculture laws at US ports of entry. Issues importer numbers, processes entries, conducts inspections, and assesses duties. The 5106 form, ISF filings, and import duties all go through CBP.

D

DAPDelivered at Place

Incoterm 2020 where the seller is responsible for delivering goods to a named destination, including all international transport, but the buyer handles import customs clearance and duties. Risk and cost pass to the buyer at the destination. DAP vs FCA breakdown →

DDPDelivered Duty Paid

Incoterm where the seller covers everything: shipping, import duties, taxes, and delivery to the buyer's door. Maximum responsibility for the seller, maximum convenience for the buyer. FOB vs DDP comparison →

E

EXWEx Works

Incoterm where the seller's responsibility ends when goods are made available at their premises. Buyer handles everything from loading onward, including export clearance. Maximum responsibility for the buyer. EXW vs FCA →

F

FCAFree Carrier

Incoterm where the seller delivers goods to a buyer-nominated carrier at a named place. Seller handles export clearance. Recommended over EXW because EXW puts export clearance on the foreign buyer, which is legally problematic in most countries.

FCLFull Container Load

Ocean freight booking where one shipper has exclusive use of an entire container (20ft, 40ft, 40HC, 45ft). Faster transit than LCL because no consolidation/deconsolidation step. Generally cheaper per unit above ~15 CBM of cargo. FCL vs LCL math →

FMCFederal Maritime Commission

The independent federal agency that regulates US ocean transportation. Licenses NVOCCs and Ocean Freight Forwarders, enforces tariff publishing, polices unfair practices. Syqora Group is FMC-licensed NVOCC #118446.

FOBFree on Board

Incoterm where the seller delivers goods loaded onto the vessel at the named port of shipment. Cost and risk pass to the buyer once goods are on board. The most common Incoterm for ocean freight from Asia.

H

HMFHarbor Maintenance Fee

A 0.125% fee on the value of imported cargo arriving by vessel, charged by CBP to fund US harbor maintenance. Applies to all sea imports.

HTS CodeHarmonized Tariff Schedule

The 10-digit code that classifies every imported product for customs purposes. Determines the base duty rate and triggers any additional tariffs (Section 301, antidumping, etc). Misclassification is the most common source of customs penalties.

I

IncotermsInternational Commercial Terms

11 standardized trade terms published by the International Chamber of Commerce that define seller and buyer responsibilities for cost, risk, and customs in international shipments. The current edition is Incoterms 2020. All 11 explained →

IORImporter of Record

The legal entity responsible for ensuring imported goods comply with US laws and for paying any duties, taxes, and fees. Must have an importer number on file with CBP via Form 5106.

ISF 10+2Importer Security Filing

12 data elements (10 from the importer, 2 from the carrier) filed with CBP at least 24 hours before cargo is loaded onto a vessel bound for the US. Penalty for non-filing or late filing is $5,000 per violation. Filing walkthrough →

L

LCLLess than Container Load

Ocean freight where cargo from multiple shippers is consolidated into one container. Priced per CBM (cubic meter) or revenue ton. Used for shipments too small to justify a full container, typically below 15 CBM.

M

MPFMerchandise Processing Fee

A CBP fee charged on imported merchandise. For formal entries (value above $2,500), it is 0.3464% of the merchandise value, with a minimum of $32.71 and maximum of $634.62 per entry (2026 rates).

N

NAICSNorth American Industry Classification System

The 6-digit code system the US government uses to classify businesses by industry. Critical for federal procurement: solicitations specify which NAICS codes can bid. Syqora Group is registered under 488510 (Freight Transportation Arrangement), 423990, 424990, and 541614.

NVOCCNon-Vessel Operating Common Carrier

A licensed freight intermediary that issues bills of lading and assumes carrier liability without owning ships. Regulated by the FMC under 46 USC Chapter 401. Different from a freight forwarder, which arranges transport without taking on carriage risk. NVOCC vs Forwarder →

O

OEMOriginal Equipment Manufacturer

A factory that manufactures a product designed by another company, branded for that company. Standard sourcing arrangement for importers commissioning custom products from China.

P

PanamaxPanama Canal-sized vessel

The maximum-size container ship that can transit the original Panama Canal locks. Approximately 4,500-5,000 TEU capacity. Largely superseded by Neo-Panamax after the 2016 expansion which allows ~14,000 TEU vessels.

S

SAM.govSystem for Award Management

The official US government registration database for entities doing business with the federal government. Required for any federal contract. Free to register but takes 7-15 business days. Syqora Group is SAM-registered with UEI DHWLMJM4K1A7.

Section 301Section 301 Tariffs on China

Additional tariffs imposed by the US on most imports from China, originating in 2018 under Trade Act Section 301. Four original lists (7.5% to 25%) plus 2024 strategic expansion adding tariffs up to 100% on EVs, semiconductors, batteries. 2026 breakdown →

T

TEUTwenty-foot Equivalent Unit

Standard unit of container capacity. One 20-foot container equals 1 TEU. One 40-foot container equals 2 TEUs. Ship capacities are quoted in TEUs because that is the lowest common denominator across the global fleet.

U

UEIUnique Entity Identifier

A 12-character alphanumeric ID assigned by SAM.gov that replaced the DUNS number in April 2022. Required for any entity doing business with the US federal government. Syqora Group's UEI is DHWLMJM4K1A7.

ULCVUltra Large Container Vessel

Container ships above 14,500 TEU capacity. The largest currently in service carry over 24,000 TEUs. Generally restricted to major trans-Pacific and Asia-Europe lanes due to port and canal limitations.

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