Export glossary

Export & trade terms, explained simply

Short, practical definitions of the terms Indian exporters meet every day — from AD code and BRC to Incoterms, LEO and RoDTEP — with links to our detailed guides.

A

AD Code: The AD (Authorised Dealer) code is a 14-digit code issued by the exporter's bank and registered with customs at each port of export, linking shipping bills to the bank account where export proceeds are received.Export procedure step by step
Advance Authorisation: Advance Authorisation is a DGFT scheme that allows duty-free import of inputs physically incorporated into export products, against an export obligation to be fulfilled within a set period.Read the guide
AEO (Authorised Economic Operator): AEO is a customs programme that certifies businesses with secure, compliant supply chains, giving them faster clearance and other facilitation benefits.Read the guide
Air Waybill (AWB): An air waybill is the transport document for air cargo, issued by the airline or its agent. Unlike an original bill of lading, it is not a document of title; goods are released to the named consignee.

B

Bill of Lading (B/L): A bill of lading is the document issued by a carrier for sea shipments that acts as a receipt for the goods, evidence of the contract of carriage and, when negotiable, a document of title.Read the guide
BRC / eBRC: A Bank Realisation Certificate (BRC), now generated electronically as an eBRC, is the record that the payment for an export shipment has been received in India.Read the guide

C

CBM (Cubic Metre): CBM is the volume a shipment occupies — length × width × height in metres — used to price LCL sea freight and plan container loads.CBM calculator
CEPA: A Comprehensive Economic Partnership Agreement is a trade agreement that reduces tariffs and covers services and investment, such as the India–UAE CEPA in force since 1 May 2022.Read the guide
Certificate of Origin: A certificate of origin is a document certifying the country in which goods were produced; a preferential certificate lets the buyer claim reduced duty under a trade agreement.Read the guide
CFR (Cost and Freight): CFR is a sea-only Incoterm under which the seller pays freight to the destination port but risk passes to the buyer once goods are on board at origin.Incoterms 2020 chart
CFS (Container Freight Station): A container freight station is a facility where LCL cargo is received, consolidated into containers and, at destination, deconsolidated.Read the guide
CHA (Customs Broker): A CHA, now formally a customs broker, is a licensed agent who prepares and files the shipping bill on ICEGATE and handles customs procedures for the exporter.Read the guide
CHA Checklist: The CHA checklist is the draft shipping bill prepared by the customs broker and sent to the exporter for approval before filing.Read the guide
CIF (Cost, Insurance and Freight): CIF is a sea-only Incoterm under which the seller pays freight and minimum insurance to the destination port, while risk passes to the buyer when goods are on board at origin.Read the guide
CIP (Carriage and Insurance Paid To): CIP is an Incoterm for any mode under which the seller pays carriage and higher-level insurance to the destination, with risk passing on handover to the first carrier.Incoterms 2020 chart
Commercial Invoice: The commercial invoice is the final sales invoice for an export shipment, used by customs, banks and the buyer, stating goods, values, Incoterm and payment terms.Read the guide
Consignee: The consignee is the party to whom goods are shipped and who is entitled to receive them at destination; it may differ from the buyer.

D

D/A (Documents against Acceptance): D/A is a collection payment term under which shipping documents are released to the buyer when they accept a bill of exchange to pay on a future date.Read the guide
D/P (Documents against Payment): D/P is a collection payment term under which shipping documents are released to the buyer only after payment, giving the exporter control of the goods until paid.Read the guide
DDP (Delivered Duty Paid): DDP is an Incoterm under which the seller delivers goods cleared for import at the named destination and pays import duties and taxes.Incoterms 2020 chart
Demurrage and Detention: Demurrage is a charge for keeping a container at the port or terminal beyond the free time; detention is a charge for keeping the container outside the terminal beyond the free time.
DGFT: The Directorate General of Foreign Trade is the Government of India body that administers the Foreign Trade Policy, IEC, export promotion schemes and related authorisations.
Duty Drawback: Duty drawback is a refund of customs and certain other duties paid on inputs used in exported goods, usually at All Industry Rates set per tariff item.Read the guide

E

e-Sanchit: e-Sanchit is ICEGATE's facility for uploading supporting documents electronically; each upload receives an image reference number cited on the shipping bill.Read the guide
ECGC: ECGC (Export Credit Guarantee Corporation of India) is a government-owned insurer that covers exporters and banks against buyer and country risks of non-payment.Read the guide
EGM (Export General Manifest): The export general manifest is the list of cargo loaded on a vessel or aircraft, filed with customs by the carrier after departure.
EPC (Export Promotion Council): An export promotion council is an industry body, such as AEPC or EPCH, that registers exporters (RCMC) and promotes exports of its sector.Read the guide
EPCG: The Export Promotion Capital Goods scheme allows import of capital goods at zero customs duty against an export obligation over a set period.Read the guide
EXW (Ex Works): EXW is an Incoterm under which the seller only makes goods available at its premises; the buyer handles loading, export clearance and all transport.Incoterms 2020 chart

F

FCA (Free Carrier): FCA is an Incoterm for any mode under which the seller delivers goods, cleared for export, to the buyer's carrier at a named place, where risk passes.Incoterms 2020 chart
FCL (Full Container Load): FCL is a shipment that uses a whole container for one shipper, priced per container.Read the guide
FIRC: A Foreign Inward Remittance Certificate is a bank document confirming receipt of foreign currency into India, often used as proof of realisation for services exports.
FOB (Free On Board): FOB is a sea-only Incoterm under which the seller delivers goods on board the vessel at the port of shipment; the buyer pays freight and insurance from there.Read the guide

H

HS Code / ITC-HS: The HS code is the internationally harmonised product classification; India's 8-digit ITC-HS code determines export policy, duty and incentive rates for a product.Read the guide

I

ICD (Inland Container Depot): An inland container depot is a dry port away from the sea where containers are stuffed, cleared by customs and moved by rail or road to the seaport.
ICEGATE: ICEGATE is the Indian customs electronic gateway through which shipping bills and other customs documents are filed.Read the guide
IEC (Importer Exporter Code): The IEC is a 10-character code issued by DGFT that any business must hold to import or export from India.Read the guide
IGST Refund: IGST refund is the refund of integrated GST paid on exported goods, processed through the shipping bill and GST returns.Read the guide
Incoterms: Incoterms are International Chamber of Commerce rules that define where delivery happens, where risk passes and which costs the seller and buyer pay in a sale of goods.Read the guide
ISPM-15: ISPM-15 is the international standard requiring wood packaging such as pallets and crates to be heat-treated or fumigated and marked before export.

L

LC (Letter of Credit): A letter of credit is a bank's undertaking to pay the exporter when documents complying with the credit's terms are presented.Read the guide
LCL (Less than Container Load): LCL is a shipment that shares a container with other shippers' cargo, priced per revenue ton plus CFS charges.Read the guide
LEO (Let Export Order): The Let Export Order is customs' permission to load goods for export, given after assessment and any examination of the shipping bill.Read the guide
LUT (Letter of Undertaking): An LUT is filed in GST Form RFD-11 to export goods or services without paying IGST for a financial year.Read the guide

M

MAI (Market Access Initiative): MAI is a Department of Commerce scheme that funds export promotion such as trade fairs, buyer-seller meets and market studies, mainly through export promotion councils.Read the guide

N

Notify Party: The notify party is the person or company the carrier informs when the shipment arrives, often the buyer or their customs broker.

P

Packing Credit / PCFC: Packing credit is pre-shipment bank finance to produce export goods; PCFC is the same facility drawn in foreign currency.Read the guide
Packing List: A packing list itemises the contents, quantities, weights, dimensions and marks of every package in a shipment, without prices.Read the guide
Phytosanitary Certificate: A phytosanitary certificate is issued by the plant quarantine authority to certify that plant products meet the importing country's plant-health requirements.
Proforma Invoice: A proforma invoice is a preliminary invoice sent before shipment so the buyer can pay an advance, open a letter of credit or obtain an import licence.Read the guide

R

RCMC: The Registration-cum-Membership Certificate is issued by an export promotion council or commodity board and is required to claim many export benefits.Read the guide
Revenue Ton (W/M): A revenue ton is the unit for LCL freight: the greater of the cargo's volume in cubic metres and its weight in metric tonnes.Read the guide
RoDTEP: RoDTEP (Remission of Duties and Taxes on Exported Products) refunds embedded taxes not otherwise refunded, as a percentage of FOB with per-unit caps; it is extended to 31 December 2026.Read the guide
RoSCTL: RoSCTL (Rebate of State and Central Taxes and Levies) refunds embedded taxes on exports of apparel and made-ups, which are covered by it instead of RoDTEP.Read the guide
Rules of Origin: Rules of origin decide whether a product qualifies as originating in a country for a trade agreement's preferential duty.Read the guide

S

Seaway Bill: A seaway bill is a non-negotiable sea transport document under which goods are released to the named consignee without presenting an original.Read the guide
Shipping Bill: The shipping bill is the export declaration filed with Indian customs on ICEGATE, on which export clearance, incentives and refunds are based.Read the guide
Status Holder (Star Export House): A status holder is an exporter recognised by DGFT for export performance — from One Star (USD 3 million) to Five Star (USD 800 million) under FTP 2023.Read the guide

T

Telex Release: A telex release surrenders the original bills of lading at origin so the carrier releases the goods to the consignee without originals at destination.Read the guide

V

VGM (Verified Gross Mass): VGM is the declared total weight of a packed container, which must be provided to the carrier before the container is loaded.Read the guide