Glossary

Glossary of terms in logistics:

1. Pro-forma invoice - An invoice for customs purposes attached to shipments outside the EU that are non-commercial in nature. For example, gifts, samples, etc.
2. Commercial invoice - An invoice for customs purposes attached to shipments outside the EU that are of a commercial nature (goods for sale)
3. AWB (Airway Bill) - Air waybill, transport documents used in air transport
4. Transport documents - Also sometimes called "package labels." They are accompanying documents for each shipment, and based on them, the shipment is automatically directed to the destination
5. Volumetric weight - The weight calculated from the volume of the shipment. If it is higher than the actual weight, the shipping cost is calculated based on it
6. Tracking number - The tracking number of a shipment, under which you can check the current information about your package on the carrier's website, such as the current location or estimated delivery date
7. EORI number - An identifier for a subject in customs clearance of a shipment. Companies are assigned this number by selected customs offices. Private individuals are assigned an EORI number online ad hoc for each individual case of customs clearance of a shipment. If a company does not have an EORI number, it cannot accept or send shipments from areas outside the EU
8. VDD (Export Accompanying Document) - Document from export customs clearance. Together with the proof of leaving the EU, it serves as a tax document for accounting purposes when selling goods
9. JSD (Uniform Administrative Document) - A document by which goods are released for free circulation upon import into the Czech Republic
10. Customs clearance - The process carried out for each shipment (excluding documents) going outside the EU. In the destination country, import customs clearance takes place, where customs officers assess any customs duties and VAT
11. Customs declarant - A person who performs customs clearance on your behalf if you do not handle it yourself. You must grant the declarant a power of attorney for this act
12. Shipment insurance - Insurance against damage or loss. Generally, the value of the goods should be insured. In international transportation, the carrier is always liable for the shipment up to a certain amount
13. Express - A fast and more expensive shipping option. Delivery time within Europe is usually one business day, USA 1-2 days, Asia 2-3 days, Australia and Oceania typically three business days
14. Economy - A cheaper and slower shipping option. Compared to the express option, it is usually about one to three days slower, depending on the specific destination
15. Incoterms - A set of international rules that determine the point at which the shipment's responsibility and liability transfer from the sender to the recipient. They are represented by three-letter abbreviations, such as DAP, EXW, FCA, etc. More information here
16. HS code - A unique numerical code that indicates the customs classification of each individual product. There are 21 sections and 99 chapters used for product classification. The final HS code has ten digits, but more general classifications with eight or six digits are also used
17. Dangerous goods (DG) - Goods defined as hazardous for transportation. Each type of dangerous goods has specific conditions for transportation and must be properly labeled and packaged. Dangerous goods include perfumes, batteries, magnets, sprays, paints, varnishes, and cleaning agents, among others. They can only be transported under special conditions
18. IATA (International Air Transport Association) - An international organization that represents air carriers. It establishes conditions for air transport
19. ADR - European Agreement on the International Carriage of Dangerous Goods by Road. It precisely defines which goods are considered dangerous in road transport and sets conditions for their transportation
20. IMDG (International Maritime Dangerous Goods) - International regulations for the maritime transportation of dangerous goods. It sets conditions for the transportation of hazardous goods
21. Stackability - A term that indicates whether a shipment is stackable, i.e., whether it is possible to place additional packages/pallets on it. Non-stackability of a shipment is often a reason for an additional fee
22. Freight - General term for cargo transportation
23. FCL (Full Container Load) - Term for a full container shipment in maritime transport, where one client uses the entire container for their goods
24. LCL (Less than Container Load) - Term for a shipment in maritime transport where the entire container is not filled with one client's goods, and their pallets are added to the container with other smaller shipments
25. CMR - Transport document in road transport that is attached to the shipment and contains all the relevant information about it
26. B/L (Bill of Lading) - Transport document in maritime transport
27. FEU - Designation for a container with a length of 40 feet
28. TEU - Designation for a container with a length of 20 feet
29. Parcel carriers - Carriers specializing in delivering parcels from online shops. They usually have size restrictions for transported parcels, offer lower prices, but the quality may not be on par with premium carriers
30. Premium express carriers - The highest quality carriers focusing on speed and delivery certainty. They are capable of transporting large and heavy shipments
31. De minimis value - The limit set to determine up to what value of goods no customs duties and taxes will be charged. Each country has a different limit and various conditions. Sometimes it is relatively high, but unfortunately, it can also be zero
32. Temporary export, import - A special customs clearance regime when the shipment will return to the country of origin. This regime allows exemption from any customs duties and VAT both in the country of destination and upon return
33. Fuel surcharge - An additional amount added to the transportation cost. It often fluctuates and reflects the current prices of gasoline and oil. Each carrier has its fuel surcharge. In our case, it is already included in the stated price
34. Carriers - Maritime carriers who physically own ships and perform sea transport. Some of the largest carriers in the world include Maersk, Hanjin Shipping, and MSC
35. Import transportation - Importing goods from any country in the world to the Czech Republic
36. Export transportation - Exporting goods from the Czech Republic to another country
37. Out of Area delivery (OOA) - If the place of delivery or pickup is in a remote area according to the carrier, a special fee is charged
38. Transit time - The duration of transportation, the time it takes for the shipment to be delivered
39. FDA (Food and Drug Administration) - The agency responsible for food and drug control in the USA. It allows the delivery of certain types of shipments, such as medications, and can also make decisions regarding dietary supplements and food
40. Proof of Delivery (POD) - Confirmation of delivery signed by the recipient. It can be traditional, signed on paper, or electronic, where the recipient signs on a PDA (Personal Digital Assistant)
41. Track and trace - Term for the system of tracking shipments. It allows the client to know the current location of their package and the expected delivery time
42. EPAL - Euro pallet. A standardized and most commonly used type of pallet. It has dimensions of 120 x 80 cm and weighs around 20 kg
43. IPPC treatment - Treatment (fumigation) of pallets and other wooden packaging materials to protect against pests. Every wooden packaging material must undergo this treatment if it is being shipped outside of the EU