Freight and customs glossary: the terms of importing from China to Europe

Terms A to D

Ad valorem insurance

Freight insurance calculated on the declared value of the goods rather than their weight or volume, with a standard markup of 10 to 20% to cover incidental costs. It is recommended whenever an Incoterm does not put insurance on the seller, notably under EXW or FOB.Read next Cargo transport insurance: coverage, deductible, exclusions · Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose

Import VAT self-assessment (reverse charge)

A mechanism that lets you declare and deduct the VAT due on import directly on your periodic VAT return, with no immediate cash payment to customs. In France, it applies automatically to VAT-registered operators holding a valid EORI number.Read next Import VAT and Reverse Charge: How It Works in France

General average

A maritime rule that spreads among all cargo owners aboard a ship the cost of a sacrifice made to save the voyage in the event of a common peril (grounding, fire, jettison). An importer may have to guarantee their share of the cargo's value before delivery, even if their own batch suffered no damage.Read next Cargo transport insurance: coverage, deductible, exclusions

BAF (Bunker Adjustment Factor)

An ocean freight surcharge that passes on fluctuations in marine fuel prices to the cost of transport, on top of the base freight. It changes more often than the main rate and should be requested explicitly in every quote to compare two offers on a like-for-like basis.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point · Hidden import costs: the fees beginners forget to budget for

CBM

A unit of volume, the cubic meter, used to price LCL ocean freight and calculate a container's fill rate. Converting the packing list into CBM is the basis for negotiating a consolidation price.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Certificate of origin

A document issued by a chamber of commerce or an authorized body certifying a good's country of manufacture, separate from the commercial invoice. It determines whether certain preferential or anti-dumping duties apply, based on the product's actual origin.Read next Origin of goods and Made in marking: rules and pitfalls · Anti-dumping duties on China: how to know if you are affected

CFR (Cost and Freight)

A sea Incoterm under which the seller arranges and pays for the main carriage to the destination port, but risk passes to the buyer as soon as the goods are loaded on board at the port of departure. Freight insurance remains the buyer's responsibility, unlike under CIF.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose

CIF (Cost, Insurance and Freight)

A sea Incoterm close to CFR, where the seller also takes out minimum insurance for the buyer's benefit. Risk nonetheless passes to the buyer as soon as the goods are loaded on board, which limits the real value of this minimum coverage.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose · Cargo transport insurance: coverage, deductible, exclusions

HS code (Harmonized System)

An international six-digit nomenclature that classifies each good to determine the applicable customs duties, VAT and regulations. In Europe, this code is extended by the combined nomenclature and then the TARIC code to reach ten digits.Read next HS, CN, TARIC customs codes: finding the right one, and why it matters

Colisage

The French word for the packing list, which lists the contents of each carton or pallet in a shipment (weight, dimensions, quantity) without stating a value. A colisage that is clear and consistent with the commercial invoice avoids requests for further information during a documentary check.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Freight forwarder acting as carrier

An intermediary who arranges transport in its own name on the importer's behalf and remains liable for the entire chain, including the subcontractors it chooses. This broader liability sets it apart from a freight forwarder acting as agent, who is a simple mandatary.Read next Freight Forwarder for Import from China: Role, Limits, Choice

Bill of lading

A maritime document issued by the carrier that serves as proof of the contract of carriage, a receipt for the goods, and a title of ownership. The goods can only be collected at the port of arrival against presentation of the original, unless a telex release is used.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

20-foot and 40-foot containers

Standard dry ocean container sizes: the 20-foot (about 33 usable CBM) and the 40-foot (about 67 usable CBM), the latter offering a better volume-to-price ratio per CBM. The choice between the two depends on the order's actual volume and the target fill rate.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

High cube container

A variant of the 40-foot container about 30 centimeters taller, suited to bulky but lightweight goods such as furniture. It requires checking the compatibility of the truck and the unloading dock in France.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point · Importing Furniture from China: Regions, Materials, Packaging

Documentary check

A check by customs of the consistency between the customs declaration and the documents provided (invoice, packing list, certificate of origin), without physically opening the parcel. It can result in a request for further information before release.Read next Customs clearance for import into the EU: steps, step by step

Physical inspection

The actual opening and inspection of the goods by customs, rarer than a documentary check but longer and sometimes costly in handling fees. It delays release and can hold the container beyond the free time allowance.Read next Customs clearance for import into the EU: steps, step by step

Cut-off

The deadline date and time by which cartons or the container must be handed over to the shipping line to be loaded on the scheduled vessel. Missing the cut-off pushes the shipment to the next sailing, directly affecting the final lead time.Read next Delivery time China France: actual transit times · Sea freight from China: FCL or LCL, costs, transit times and break-even point

DAP (Delivered at Place)

An Incoterm under which the seller delivers the goods to the agreed address, transport and risk included, but before import customs clearance and payment of duties and taxes. The buyer remains responsible for customs clearance on arrival in Europe.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose · Customs clearance for import into the EU: steps, step by step

DDP (Delivered Duty Paid)

The most complete Incoterm for the buyer, under which the seller handles transport, customs clearance and payment of import duties and VAT all the way to the delivery address. It simplifies logistics, provided you check that the seller genuinely masters European formalities.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose

Customs clearance

The full set of declaration formalities that authorize goods to enter the customs territory of the European Union, including filing the customs declaration and paying the duties and taxes due. It can be carried out by the importer directly or delegated to a customs representative.Read next Customs clearance for import into the EU: steps, step by step

Terms D to L

Devanning

The operation of unloading goods out of the container, carried out at a warehouse or terminal after arrival at the port. It precedes final delivery when the order is not shipped door-to-door as a full container load.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Detention

Fees charged when the container is not returned empty to the shipping line within the free time allowance after it is picked up from the port. It is added to demurrage and runs separately, which makes it necessary to organize devanning quickly.Read next Hidden import costs: the fees beginners forget to budget for

DPU (Delivered at Place Unloaded)

An Incoterm close to DAP under which the seller also delivers the goods unloaded at destination, but still before import customs clearance. It is little used on China-Europe flows because it assumes the seller has unloading means on site.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose

Anti-dumping duties

An additional tax imposed by the European Union on certain Chinese products sold at a price deemed below their normal value, to protect European producers. It is added on top of standard customs duties and can multiply the real cost of a targeted product.Read next Anti-dumping duties on China: how to know if you are affected

Customs duties

A tax levied on import, calculated as a percentage of the customs value based on the product's HS code. Its rate varies widely from one category to another and must be checked via the TARIC code before costing an import project.Read next Customs Value and Duty Calculation: Base, Adjustments, Rates · HS, CN, TARIC customs codes: finding the right one, and why it matters

Stuffing

The operation of loading cartons or pallets inside the container, carried out at the factory or at a consolidation warehouse in China. Careful stuffing limits damage caused by insufficient bracing during sea transport.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

EORI number

A unique identifier assigned by a European customs administration to any operator that imports or exports, mandatory to file a customs declaration in the Union. It must be obtained before the first shipment, otherwise customs clearance is blocked.Read next EORI number: what it is for and how to get it

Express freight

A mode of transport combining pickup, air transport and door-to-door delivery through a single integrator (DHL, FedEx, UPS), with customs clearance generally included in the service. It costs more per kilo than standard air freight but remains the fastest option for small, urgent volumes.Read next Express China France: costs DHL, FedEx, UPS and customs on arrival

EXW (Ex Works)

An Incoterm under which the seller makes the goods available at its factory or warehouse, with all transport and export formalities remaining the buyer's responsibility. It is the Incoterm that places the most logistics responsibility on the importer, including export customs clearance in China.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose

Commercial invoice

A document certifying the sale between the supplier and the importer, with the description of the goods, their value and the agreed Incoterm, and which forms the basis for calculating the customs value. It differs from the proforma invoice, which only has the value of a commitment before payment.Read next How to read a Chinese proforma invoice: line by line · Customs Value and Duty Calculation: Base, Adjustments, Rates

FCA (Free Carrier)

An Incoterm under which the seller delivers the goods, cleared for export, to the carrier designated by the buyer, at the factory or at an agreed place. Risk passes to the buyer at that handover, even before loading onto the ship or aircraft.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose

FCL (Full Container Load)

A sea freight mode in which the importer books an entire container reserved solely for its goods, from loading at the factory to final devanning. It becomes cost-effective above a certain volume, below which LCL remains preferable.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

FOB (Free on Board)

The most common sea Incoterm in China sourcing, under which the seller handles transport and formalities up to loading on board the vessel at the port of departure. The importer then arranges and pays for the main freight, insurance and import customs clearance.Read next Incoterms for import from China: EXW, FOB, DDP, which Incoterm to choose · Freight Forwarder for Import from China: Role, Limits, Choice

Free time (demurrage and detention)

The number of free days granted by the shipping line before demurrage or detention starts to accrue. Its length varies by port, shipping line and the contract negotiated by the forwarder.Read next Hidden import costs: the fees beginners forget to budget for

Air freight

Transport by air, billed on actual weight or volumetric weight if higher, faster than sea freight but markedly more expensive per kilo. It is justified for small volumes, tight deadlines or high-value products.Read next Air freight China: when to choose it and how it is priced

Ocean freight

Transport by sea, in FCL or LCL, which remains the most economical mode for most volumes imported from China. Its longer lead time requires planning the order ahead, particularly around periods of high demand.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point · Delivery time China France: actual transit times

Consolidation

The consolidation of several shipments from different clients into the same container, billed by CBM or weight, whichever is more favorable to the carrier. It allows small volumes to be imported without paying for a full container, at the cost of a longer transit time.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

ICS2 (Import Control System 2)

A European advance security declaration system that requires detailed data on a shipment's contents to be submitted before it arrives in the Union, including for express and postal freight. An incomplete or late declaration can block the goods even before they enter the customs territory.Read next Customs clearance for import into the EU: steps, step by step

ISPM 15

An international standard requiring the treatment (heat or fumigation) and marking of any solid wood packaging, pallets included, used in an international shipment. Its absence risks the packaging being held or destroyed during the phytosanitary check on arrival.Read next Hidden import costs: the fees beginners forget to budget for

LCL (Less than Container Load)

A consolidated sea freight mode in which the goods share a container with other shippers, billed by CBM. It suits small volumes but adds consolidation and devanning time compared with FCL.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Terms L to V

Air waybill (AWB)

A document issued by the air carrier that serves as the contract of carriage and receipt of goods for air freight, the functional equivalent of the ocean bill of lading. Unlike the bill of lading, it is never a negotiable title of ownership.Read next Air freight China: when to choose it and how it is priced

Customs release

Customs authorization that allows goods to be removed from the depot or port once clearance is complete and duties and taxes are paid. Without it, the goods remain held even though they have physically arrived in Europe.Read next Customs clearance for import into the EU: steps, step by step

NVOCC

A non-vessel-operating common carrier that issues its own bill of lading while buying transport space from an actual shipping line. It often acts as an intermediary between the forwarder and the shipowner, particularly on consolidated cargo.Read next Freight Forwarder for Import from China: Role, Limits, Choice · Sea freight from China: FCL or LCL, costs, transit times and break-even point

Packing list

The reference document for the forwarder, the shipping line and customs to verify a shipment's actual contents. It also determines the freight calculation, since the declared CBM and weight depend on it.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Palletizing

Grouping cartons onto standardized pallets, which eases handling, reduces the risk of damage, and can be required by certain road carriers in Europe. A pallet that is not shrink-wrapped or poorly braced is a frequent cause of transport disputes on delivery.Read next Hidden import costs: the fees beginners forget to budget for

Peak season surcharge

A temporary surcharge applied by shipping lines on certain routes during seasonal demand peaks, generally ahead of the year-end holidays in the Western hemisphere. It is added on top of the base freight and should be anticipated in the order schedule.Read next Delivery time China France: actual transit times · Sea freight from China: FCL or LCL, costs, transit times and break-even point

Volumetric weight

A theoretical weight calculated from a shipment's volume using a formula set by the carrier, used in air and express freight whenever it exceeds the actual weight. The carrier always bills the higher of the two, which penalizes light but bulky products.Read next Air freight China: when to choose it and how it is priced · Express China France: costs DHL, FedEx, UPS and customs on arrival

Port of Fos-sur-Mer

The main French Mediterranean port for containerized freight, complementing Le Havre for flows coming from Asia, depending on the shipping line chosen by the forwarder. The choice between the two mainly depends on the goods' final destination in France.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Port of Nansha

A deep-water port in the Pearl River Delta, within the Guangzhou municipality, through which a large share of southern China's exports pass. Its proximity to the factories of Guangdong often makes it the most direct starting point for a sea shipment to Europe.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

Port of Le Havre

France's leading port for containerized traffic with Asia, generally chosen for deliveries bound for the north and west of France. The arrival port chosen with the forwarder directly affects the cost and lead time of the final road transport leg.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point · Delivery time China France: actual transit times

China-Europe rail freight

Rail transport between China and Europe, faster than sea freight and markedly cheaper than air freight, suited to medium volumes and intermediate lead times. It remains sensitive to geopolitical and customs disruptions along the corridors it crosses.Read next China Europe Train: transit times, costs and suitable products

Registered customs representative

A professional authorized by French customs to carry out customs formalities in the name and on behalf of an importer, either as direct or indirect representation depending on the liability arrangement chosen. Using a registered customs representative simplifies clearance but does not exempt the importer from checking the declarations filed in its name.Read next Customs clearance for import into the EU: steps, step by step

Demurrage

Fees charged by the shipping line when the container stays at the port terminal beyond the free time allowance, before being picked up for devanning. They increase with every day of delay and can quickly exceed the initial cost of the freight.Read next Hidden import costs: the fees beginners forget to budget for

TARIC

The European Union's tariff database, which supplements the HS code and the combined nomenclature with specific measures (anti-dumping duties, quotas, bans) applicable to a precise product. It should be checked before every new import to verify the exact rate and the restrictions in force.Read next HS, CN, TARIC customs codes: finding the right one, and why it matters · Anti-dumping duties on China: how to know if you are affected

Telex release

A procedure that allows the consignee to collect the goods at the port of arrival without presenting the original bill of lading, once it has been surrendered and made void by the line at the port of departure. It speeds up delivery when the paper original has not had time to travel to Europe.Read next Sea freight from China: FCL or LCL, costs, transit times and break-even point

THC (Terminal Handling Charges)

Port handling fees charged for loading and unloading the container at the terminal, separate from the ocean freight itself. They apply at both ends of the transport and must appear explicitly in any quote being compared.Read next Hidden import costs: the fees beginners forget to budget for · Sea freight from China: FCL or LCL, costs, transit times and break-even point

Transit time

The total transport time between the point of departure in China and the point of arrival in France, excluding customs clearance and final delivery lead times. It varies by mode chosen, port and time of year, and should always be checked for the actual route and season.Read next Delivery time China France: actual transit times

Freight forwarder acting as agent

An intermediary appointed by the importer to arrange transport (booking, documents, tracking) without taking on liability in its own name, unlike the contracting forwarder. The choice of forwarder directly affects lead times, incidental costs and the quality of shipment tracking.Read next Freight Forwarder for Import from China: Role, Limits, Choice

Import VAT

A tax due on the customs value increased by duties and freight up to the point of entry into the Union, applied in France at a rate of 20% for most goods. It can be paid in cash to customs or handled through self-assessment (reverse charge) depending on the importer's status.Read next Import VAT and Reverse Charge: How It Works in France

Customs value

The basis for calculating duties and import VAT, generally built from the price paid to the supplier adjusted for freight and insurance up to the Union's border. An understated customs value risks a reassessment and penalties during a documentary or physical check.Read next Customs Value and Duty Calculation: Base, Adjustments, Rates

What Sorva does for you