Common terms and abbreviations used in shipping and customs

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Liam Dixon
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Navigating the world of international shipping and customs can feel like decoding an entirely new language.

From ports to paperwork, freight forwarders to customs brokers, every step comes with its own set of terms and abbreviations that can leave even seasoned professionals scratching their heads.

Whether you’re an importer, exporter, or just curious about how goods move across borders, understanding these terms and abbreviations is essential to keeping your shipments smooth, compliant, and cost-effective. In this guide, we’ll break down the most common shipping and customs terms, demystifying the language that keeps global trade moving.

If you are an E-retailer or Dropshipper, these terms and abbreviations will be a part of your everyday operations and communications.

General Shipping Terms

B/L (Bill of Lading) – A legal document issued by a carrier to acknowledge receipt of cargo for shipment.

AWB (Air Waybill) – Similar to a B/L but for air freight.

ETA (Estimated Time of Arrival) – When a shipment is expected to arrive.

ETD (Estimated Time of Departure) – When a shipment is expected to leave.

FOB (Free On Board) – Seller covers costs until goods are on the ship; buyer pays from that point on.

EXW (Ex Works) – Buyer takes responsibility from seller’s premises.

CIF (Cost, Insurance and Freight) – Seller pays for everything up to delivery port.

DDP (Delivered Duty Paid) – Seller handles everything including duties and delivery.

LCL (Less than Container Load) – Shipment doesn’t fill a container and is grouped with others.

FCL (Full Container Load) – Shipment fills an entire container.

Customs & Documentation

HS Code (Harmonised System Code) – Used to classify goods for customs.

EORI (Economic Operators Registration and Identification) – Required for trading goods into or out of the UK.

CN22/CN23 – Customs declaration forms used for postal items.

T1 Document – For goods moving under customs control within the EU.

Commercial Invoice – Describes the goods, used for customs clearance.

Packing List – Lists items in the shipment for reference and inspection.

Certificate of Origin – Confirms the country where the goods were made.

Incoterms – International rules defining buyer/seller responsibilities (e.g. FOB, CIF, etc.)

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Carriers and Logistics

3PL (Third-Party Logistics) – Outsourced logistics service providers.

NVOCC (Non-Vessel Operating Common Carrier) – A freight forwarder who doesn’t own ships.

FMCG (Fast-Moving Consumer Goods) – Products sold quickly and at low cost.

DC (Distribution Centre) – Facility used to store and distribute goods.

SKU (Stock Keeping Unit) – A unique identifier for each product type.

WMS (Warehouse Management System) – Software used to manage inventory and logistics.

Other Useful Terms

Demurrage – Charges for keeping a container beyond the allowed time.

Detention – Charges for using the container outside the port.

Bonded Warehouse – A storage facility where goods can be held without paying customs duties straight away.

Customs Broker – A professional who helps navigate customs clearance.

Manifest – A detailed list of cargo on board a ship or plane

Key terms across UK Postbox

Dropshipping – Dropshipping is when you send your items to us to repack and prepare the order for your customer.

Fulfilment – Fulfilment is when UK Postbox stores your stock in our warehouse, ahead of sending to your customer.

Sends – Short for Send Letters Online, this is our online letter mailing service. Send letters in the UK from anywhere in the world. This is suitable for personal users sending individual letters and especially beneficial for companies with high capacity sending needs.

Scanning - When we receive your mail, a photo or scan will then be taken of your envelope or parcel before being uploaded digitally to your account. You can then log in and view what’s arrived and take additional actions such as asking for a letter to be opened and scanned. Learn more about our mail scanning service.

Forwarding batch – With UK Postbox you can forward your letters and parcels to any location worldwide using our platform. With a forwarding batch, you can consolidate multiple items into a single batch for forwarding to one address. Select a destination, choose a postage option, and we’ll handle the rest. Learn more about our letter and parcel forwarding service.

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What next?

A key aspect of smooth international shipping and customs is having a professional, compliant registered address for your business or eCommerce website. You can register your virtual office address with UK Postbox. We have addresses across the UK, including four in London. Once set up you can also choose from our range our mail management services.

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Liam Dixon
Liam Dixon
As Chief Operating Officer at UK Postbox, what Liam doesn’t know about UK Postbox isn’t worth knowing. Liam is a driving force on the team, helping guide UK Postbox into the future. His keen eye for detail means he’s always on the ball when it comes to UK Postbox news, updates and new products, and his blog posts will keep you updated on all of it!
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