Sourcing & import glossary
Plain-English definitions of the trade, shipping, customs, and sourcing terms every handicraft importer runs into — from MOQ and Incoterms to CITES and REACH.
- Bill of Lading · B/L
- A document issued by a carrier that serves as a receipt for goods, a contract of carriage, and (for an order B/L) a document of title. Required to release cargo at destination. Read more →
- BSCI
- Business Social Compliance Initiative — an audit scheme assessing a supplier's labour and social standards. Common in ethical handicraft sourcing.
- Certificate of Origin · CoO
- A document certifying the country in which goods were produced, used for customs, duty preferences (e.g. GSP), and marking rules.
- CIF
- Cost, Insurance and Freight — an Incoterm where the seller pays ocean freight and minimum insurance to the destination port; the buyer covers duties and onward transport. Read more →
- CITES
- Convention on International Trade in Endangered Species — governs trade in items made from protected species (certain woods, shells, corals, ivory). Some materials require permits or are banned. Read more →
- Country of Origin Marking
- Customs rules requiring imported goods to be marked with their country of manufacture (e.g. 'Made in India'). Read more →
- CPSIA
- Consumer Product Safety Improvement Act (US) — sets safety limits (lead, phthalates) and testing/certification rules for children's products, including handmade toys. Read more →
- Customs Broker
- A licensed agent who files import declarations and clears goods through customs on the importer's behalf. Read more →
- DDP
- Delivered Duty Paid — an Incoterm where the seller bears all costs and risks, including import duty, up to the named destination. Read more →
- De Minimis
- A value threshold below which imports may enter free of duty and formal entry. Thresholds vary by country and change over time.
- Demurrage
- Charges levied when containers or cargo stay at the port/terminal beyond the allowed free time.
- EXW
- Ex Works — an Incoterm where the buyer collects goods at the seller's premises and bears all transport, export, and import responsibility. Read more →
- FCL / LCL
- Full Container Load / Less than Container Load — whether your cargo fills a container or is consolidated with other shippers' goods. Read more →
- FOB
- Free On Board — an Incoterm where the seller delivers goods onto the vessel at the origin port; the buyer pays freight, insurance, and duties from there. Read more →
- Freight Forwarder
- A company that arranges the movement of cargo — booking carriers, consolidation, and documentation — on behalf of shippers. Read more →
- GI Tag
- Geographical Indication — a mark protecting products with a specific geographic origin and reputation (e.g. Pashmina, Talavera). A signal of authenticity.
- GSP
- Generalized System of Preferences — programs allowing eligible goods from developing countries to enter duty-free or at reduced rates. Read more →
- HS / HTS Code
- Harmonized System code — the international product classification that determines duty rates and import requirements. Countries extend it (e.g. US HTS). Read more →
- Incoterms
- International Commercial Terms published by the ICC (current edition: Incoterms 2020) that define who is responsible for cost, risk, and tasks at each stage of shipment. Read more →
- ISPM-15
- International standard requiring wood packaging (pallets, crates) to be heat-treated or fumigated and stamped, to prevent pest spread. Read more →
- Lacey Act
- US law prohibiting trade in illegally sourced plants and wildlife; imported wood products may require a plant declaration. Read more →
- Landed Cost
- The total cost of a product delivered to your door — unit price plus freight, insurance, duties, taxes, and handling.
- Lead Time
- The time from confirmed order to goods ready to ship (ex-works), separate from transit time.
- Letter of Credit · L/C
- A bank guarantee that the seller will be paid once they present compliant shipping documents. Reduces risk for both parties on larger orders. Read more →
- MOQ
- Minimum Order Quantity — the smallest quantity (or order value) a supplier will produce in a single run. Reflects production economics, sometimes negotiable. Read more →
- OEM / ODM
- Original Equipment Manufacturer (made to your design) vs Original Design Manufacturer (adapting the supplier's existing design). Both differ from private label. Read more →
- Pre-Production Sample · PPS
- A sample made under production conditions and approved before the full run begins — your quality reference. Read more →
- Proforma Invoice
- A preliminary quote-invoice from the seller detailing goods, price, terms, and Incoterms — used to arrange payment or an L/C before shipment.
- Prop 65
- California law requiring warnings on products that expose consumers to listed chemicals (e.g. lead, cadmium in glazes). Read more →
- REACH
- EU regulation restricting hazardous substances in products; relevant to textile dyes (azo), leather (chromium VI), and coatings. Read more →
- SEDEX / SMETA
- A supplier ethical data exchange and its audit (SMETA) covering labour, health & safety, environment, and business ethics.
- Tariff / Duty
- A tax levied on imported goods, set by their HS classification and country of origin. Read more →
- TT
- Telegraphic Transfer — a bank wire, the most common handicraft payment method (often a deposit plus balance against shipping documents). Read more →
Go deeper
Our sourcing knowledge base has step-by-step import guides, regulation deep-dives, and country playbooks.
Browse all guides →